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$99 Android 4.0.3 7” IPS tablet with an Allwinner SoC capable of 2160p Quad HD and built-in HDMI–another inflection point, from China again
December 3, 2012 9:52 pm / 8 Comments on $99 Android 4.0.3 7” IPS tablet with an Allwinner SoC capable of 2160p Quad HD and built-in HDMI–another inflection point, from China again
[This is a huge, compiled collection basically finished in September, 2012. Contains updates till November, 2012. It was published in early December, 2012. A new USD 99 Allwinner blog was launched on Nov 30, 2012 based on this compilation. Please read the two entry posts of that as well: The upcoming Chinese tablet and device invasion lead by the Allwinner SoCs and $40 entry-level Allwinner tablets–now for the 220 million students Aakash project in India in order to understand very quickly that It’s a Strategic Inflection Point of enourmous consequences, and not only for the ICT industry.]
Or it is first time that we can see globally that China is on a different, significantly more effective price/performance/functionality trajectory of its own than anybody else. Even the latest challengers to the already fading Wintel empire will be affected by this. We should therefore understand: 1. The new challenge—2. The learnings from similar fundamental shifts in the history of ICT—3. The current market for this new industry trajectory—4. The initial advantage that made possible this trajectory—5. The most significant new customer value which will assure its global victory in the end—6. The current way of thinking of the established client device players.—7. Possible further hardware advances sustaining this new trajectory.
Inside PRC the situation is even more dramatic. Below you could see 3 market leading products on the mainland China market as was indicated on Sept 25 by vast and quite sophisticated marketplace information of PConline, the largest portal in the PRC specialising in IT product-related content, in terms of advertising revenue. The type of SoC used in those products is shown in blue ink. A13 and A10 are from Allwinner Technology, while RK3066 is from Fuzhou Rockchip Electronics. Both are quite successful SoC companies founded in China. Information about these tablets will be given in section 3. The Teclast & Window tablets shown below are also available globally for $120 and $215 respectively.
Update: All three tablets essentially have kept their position up to now (Dec 3). The price of Teclast P75D even went down to ¥499 i.e. $80 at one of the dealers, three of the dealers have price between ¥594 and ¥599, i.e. between $95 and $96, while 5 others still selling it for ¥699 i.e. $112 by today’s exchange rate. This is showing clearly that the $99 pricing for the HAIPAD i7 is realistic even in terms of the hottest tablet of such kind on the mainland China market which has ¥646 i.e. $104 across all of its dealers on PConline.
At the same time the unchanged ¥259 i.e. $41.5 price of Andorra A713 clearly shows the fact that for a non-IPS 7” tablet with the Allwinner A13 SoC, essentially a constrained to 512M RAM version of A10 with no HDMI output, there is a well established entry-level price in China. Note that the A713 tablet has a capacitive multi-touch (5-point touch) screen, so it is not a kind of cheap resistive screen variety of tablets.
This whole story will end in section 7. with the even more dramatic development of a PCMCIA card (or as was renamed PC Card) format package called EOMA-68 (see: Embedded Open Modular Architecture), which contains a whole computer with an Allwinner A10 SoC, 1GB of RAM, 1 to 16 GB of NAND Flash etc. All this for a target price of $15. Almost all interfaces available of the Allwinner A10 SoC have been made available on the 55x85mm credit-card-sized card, including both Transport Streams, SIM Card, PATA, the 24-pin Camera Interface, both 24-pin LCD Interfaces, VGA, Composite Video (CVBS), SPDIF, AC97, I2S, GPS, CAN-Bus, Infrared, and many more. This is in addition to the standard EOMA-68 Interfaces of Ethernet, I2C, SATA, LCD 24-pin RGB/TTL, USB2 and 16 GPIO pins.
While this is a FLOSS-related initiative rooted in UK, the hardware part is fully based on mainland China companies, including Allwinner Technology. What is the benefit for the FLOSS-people could be much more for the Chinese industry network already moving along a much faster and more effective trajectory than the outside world. To me it can go as far as a SoC vendor like Allwinner Technology will be able to produce these type of cards as well which will significantly enhance the possibilities and worldwide competitiveness of the hundreds of independent manufacturers is Shenzhen, Zhuhai and elsewhere in PRC. As a consequence the consumer equipment prices could go down even more and/or functionaly, as well as quality, could be risen even more.
Meanwhile the SoC and subsequent Android tablet competition is intensifying very-very fast inside PRC as evidenced by this latest Overview of the latest/best 7″ Tablets out of Shenzhen China [Charbax YouTube channel, Oct 28, 2012]:
Finally there is an even stronger newcomer, Nufront already on the Chinese SoC market, also posing the greatest challenge to Allwinner for the next year as it stands on Nov 1. We are talking about the Taishan platform with:
The NS115 mobile computing chip, a dual-core ARM Cortex™-A9 MPCore™ processor up to 1.5GHz and Mali™-400 MP GPU implementation, features 1080P HD encode/decode and support of Android 4.0
which justifies a whole section of its own to describe the whole strength of:
8. The Nufront challenge coming from inside
All those finding are compiled into this very large composite post on my trend-tracking blog here, which has the following sections with final names reflecting better the individual section contents as:
- The new challenge
- A proper recollection of what happened to Intel’s memory business
- The market and industry situation reflecting this new inflection point
- The Allwinner advantage 全志
- The wireless display and 2160p (“Quad HD”/4K) outlook
- Are the established client device players recognizing this strategic inflection point or not?
- Possible further hardware advances sustaining this new trajectory
- The Nufront challenge coming from inside
Please go through those compiled sections at least by reading the emphasized texts which I’ve put everywhere to make fast reading possible.
Note as well that section 2. is also on a new blog of mine, USD 99 Allwinner, as an expanded version standing on its own and made accessible from every post there via It’s a Strategic Inflection Point page.
Finally, on this new blog you will find the USD 99 Allwinner page as well which, besides providing the rationale for the naming and the existence of that blog, will summarize my current (Dec. 1) opinion about the mobile device market for 2013, especially the threat which may force Microsoft and Intel to adjust their current strategies radically.
1. The new challenge
HAIPAD I7 IPS 1024*600 Multitouch Screen with Android 4.0 Dual Camera 1080P HDMI [Merimobiles.com, Sept 10, 2012]
List Price:
$269.99Your Price: $99.99 [with free shipping worldwide]
[when it became available in April’12 it was briefly $137.99 already]
[more tablets of this kind coming to the market too, e.g. the $99 Dragon]Haipad i7 Android ICS 7” capacitive IPS Thin Tablet Review – Allwinner A10 Merimobiles ColonelZap [SchlumpfiHB YouTube channel, April 15, 2012]
TECH SPECS:
Warranty:
– 1 Year, click here for detailsCPU:
– Allwinner A10 1.2 GHzOS:
– Android 4.0.3Memory:
– 1GB DDR3 Ram, 8GB Nandflash built in
– Extend Memory up to 32GB via micro sd cardScreen:
– 7 inch IPS 5 points Capacitive Multitouch
– 1024*600Audio:
– Stereo Speaker
– 3.5MM headphone jack
– Supports: AAC, AAC+, eAAC+, AMR-NB, AMR-WB, QCP, MP3, WMA, WAV, MIDI, M4AVideo:
– 1080P,WMV/ASF/MP4/
3GP/3G2M4V/AVI/MJPEG/RV10/DivX/
VC-1/MPEG-2/
MPEG-4/H.263/H.264
– 1280*720P HD 30 fps, 1080P,720*480 D1 30fps
– Real-time Video decodeCamera:
Front 0.3MP camera,
back 2.0MPBattery:
– 3600mAhFeatures and highlights: – Allwinner A10
– 8GB Nandflash
– 3D G- Sensor
– 802.11b/g,support WAPI
– Capacitive touching panel multi-point( 5 point touch)
– OTG and host expand
– USB2.0 data transfer
– Micro 5pin USB
– Supports mouse, external keyboard
– HDMI output
– Multilanguage support
– Excellent Ebook reader
– Weather on line
– Web Browser
– Slim body
– Sound Card:AC97
– 196.3*122.3*8.5mm
– standby time:36 hours
– working time:4~5hours (play video online)Package Content:
HAIPAD I7
Earphone
USB Cable
Charger
Color:
Gray
Language:
English
Regarding the multimedia capabilities I will suggest to go through a review of a similar tablet: MPMan MID74c (NATPC Primatab 7″) tablet review part 3: multimedia and HD video playing capabilities (Boxchip Allwinner A10) [ARCHTABLET NEWS, May 25, 2012]. Two videos are included there as well!
As you can see this process was well visible much earlier, in the beginning of Q2 2012 at the latest. Besides the September milestone of reaching the $99 cost with such a high-quality IPS tablet, another impetus for me to write this post was a last Sunday’s article titled Hardware is dead [VentureBeat, September 15, 2012]:
I go to China every four or five months for work. I have to visit all the corporate headquarters in Beijing and Shanghai, but the highlight of every trip is the day I spend at Hua Qiang Road North in Shenzhen. Pretty much every piece of electronics we use today is sourced and manufactured within 100 miles of Shenzhen, and Hua Qiang is the city’s electronics shopping district.
On my last trip, in July, I met a ‘procurement’ consultant, and he told me which of the 50 mega malls in the area to visit to buy tablets.
In the US, when we talk about tablets we usually mean the iPad and increasingly the Kindle devices, but beyond that there is not much else in the market. I had heard that tablets in China had already reached low price points. You can buy a reasonable Android phone for $100 retail, and I wanted to see if I could find a $150 tablet. This consultant pointed me to a mall filled with hundreds of stalls selling nothing but tablets. I walked into the middle of the scrum to a random stall. I pointed to one of the devices on display and asked, “How much for this one?” 300 kuai. My Mandarin is a bit rusty, so I had to ask again. Slowly, the stall owner repeated renminbi 300 yuan.
If this were a movie, the lights would have dimmed and all the activity in the room frozen. 300 renminbi is US $ 45. And that was the initial offer price given to a bewildered foreigner in China, no haggling. I felt a literal shock.
I bought the device and did some more research. This was a 7-inch tablet, Wi-Fi only with all the attributes of a good tablet. Capacitive touchscreen. Snappy processor. Front facing camera. 4GB of internal memory and an expandable memory slot.
I later found out that these devices are now all over the supply chain in Shenzhen. At volume, say 20,000 units, you can get them for $35 apiece. My device ran full Android 4.0 Ice Cream Sandwich and had access to the full Google API, including Gmail, Maps, YouTube and Google Play (not quite sure how that works either).
Once my heart started beating again, the first thing I thought was, “I thought the screen alone would cost more than $45.” My next thought was, “This is really bad news for anyone who makes computing hardware.”
…
My contacts in the supply chain tell me they expect these devices to ship 20 million to 40 million units this year. Most of these designs are powered by a processor from a company that is not known outside China —
All Winner[Allwinner]. As a result, we have heard the tablets referred to as “A-Pads.”When I show this tablet to people in the industry, they have universally shared my shock. And then they always ask “Who made it?.” My stock answer is “Who cares?” But the truth of it is that I do not know. There was no brand on the box or on the device. I have combed some of the internal documentation and cannot find an answer. This is how far the Shenzhen electronics complex has evolved. The hardware maker literally does not matter. Contract manufacturers can download a reference design from the chip maker and build to suit customer orders. If I had 20,000 friends and an easy way to import these into the US, I would put my own name on it and hand them out as a business cards or Chanukah gifts.
I think this leads to an important conclusion: No one can make money selling hardware anymore. The only way to make money with hardware is to sell something else and get consumers to pay for the whole device and experience.
…
Postscript
I thought discovering the A-Pad was pretty exciting. So I was dismayed to find that the week after I got back from China, a device that looks a lot like my A-Pad was on sale at Fry’s Electronics for $79. No brand listed. The process has already begun.
Jay Goldberg is a financial analyst with an investment bank. He has been working with tech companies for ten years. Prior to that he lived and worked in China for almost 10 years.
A morale of this story is not the one written in the title of the article, i.e. it is not true at all that “hardware is dead”, rather we are witnessing again an old phenomenon first discovered by Intel’s Andy Grove back in the 80’s and coined with a term “[strategic inflection point]”. With no proper representations in places like Wikipedia (don’t confuse with mathemetical concept only included there) you better search the web with the phrase:
“Andy Grove” “inflection point” Japanese “memory chips”
For me the best quote for my initial purposes here is from the permitted excerpt of Andy Grove’s famous Only the Paranoid Survive [Sept 1, 1996] book, reformatted for more immediate recognition of the intended meanings as follows:
I’ll describe what a strategic inflection point is a bit later in this book. For now, let me just say that a strategic inflection point is a time in the life of a business when its fundamentals are about to change. That change can mean an opportunity to rise to new heights. But it may just as likely signal the beginning of the end.
…
You can be the subject of a strategic inflection point but you can also be the cause of one. Intel, where I work, has been both.
In the mid-eighties, the Japanese memory producers brought upon us an inflection point so overwhelming that it forced us out of memory chips and into the relatively new field of microprocessors.
The microprocessor business that we have dedicated ourselves to has since gone on to cause the mother of all inflection points for other companies, bringing very difficult times to the classical mainframe computer industry.
Having both been affected by strategic inflection points and having caused them, I can safely say that the former is tougher.
Next I should give a brief explanation for “changing fundamentals of a business”. As is obvious from the recollection given below (section 2.) there were certain assumptions on which Intel’s original DRAM business was based upon. These assumptions were questioned by its Japanese competitors entering the lucrative DRAM market, first time winning against Intel in 1979 with better manufacturing yields and then by 1982 in terms of overall manufacturing competence as well. Equally important was that Intel was not able to remedy the situation although the symptoms were well recognized and seemingly effective actions were taken as well.
Please study that recollection first and then the sections which follow after that and which describe the observable facts about this very latest strategic inflection point. You will be able to both understand the current situation properly (unlike the investment analyst quoted above) as well as to predict the possible outcome of this inflection point for the ICT industry as whole (with the highest probability possible at all). I wish you good reading!
From the brief understanding of the new challenge as given above I should also paraphrase my remaining points of study as:
2. A proper recollection of what happenned to Intel’s memory business
3. The market and industry situation reflecting this new inflection point
4. The Allwinner advantage
5. The wireless display and 2160p (“Quad HD”/4K) outlook
6. Are the established client device players recognizing this strategic inflection point or not?
7. Possible further hardware advances sustaining this new trajectory
2. A proper recollection
of what happened to Intel’s memory business
Exerpts about the factual evidence are taken from the following scientific article:
A PROCESS MODEL OF STRATEGIC BUSINESS EXIT: IMPLICATIONS FOR AN EVOLUTIONARY PERSPECTIVE ON STRATEGY [Robert A. Burgelman, Strategic Management Journal, Vol. 17, 193-214 (1996)] (available here for download)
…
Table 1. Key events in the evolution of DRAMs at Intel: 1970-85
1970
E1. Intel introduced the first 1K (kilobit) dynamic random access memory (DRAM) in volume. The product used the new metal-oxide semiconductor (MOS) process technology. This process technology was relatively slow but less power consuming than the standard bipolar process technology. Intel was the first successful mover in DRAMs.
1972-74
E2. Intel introduced 4K DRAMs. Intel captured more than 80% of the 4K DRAM market in 1974.
E3. The first competitive challenge came from Mostek, a new startup. Mostek focused on user-friendliness of DRAMs in the 4K DRAM generation.
1976-77
E4. Intel introduced a standard 16K DRAM. Intel captured more than 35% of the 16K DRAM market in 1976.
E5. The competitive challenge from Mostek and others continued. By 1979, Intel’s market share in standard 16K DRAM was less than 5%.
E6. High demand for EPROMs created a shortage in Intel’s manufacturing capacity. For the first time, DRAM manufacturing capacity was shifted toward the higher-margin EPROM products.
1979
E7. Intel introduced the first 5-volt ‘single-power-supply’ 16K DRAM. Single-power supply greatly simplified the user’s design and production tasks. In 1979, Intel was the only supplier of single-power-supply 16K DRAMs and captured a price premium of double the industry average for three-power-supply 16K DRAMs.
E8. Intel expected the 64K DRAM generation to be introduced later and to be based on single power supply. Fujitsu introduced a standard 64K DRAM in 1979 and captured a large market share.
E9. The single-power-supply 16K DRAM remained a small-niche product.
E10. Intel fell behind in manufacturing yields relative to top Japanese producers of DRAMs (Prestowitz, 1988: 46).
1982 E11. Intel’s 64K DRAM with ‘redundancy’ entered production. Redundancy involves adding an extra column of memory elements so that, in the event of a process-induced defect, the auxiliary column could be activated. This allows a defective memory chip (at testing) to be reprogrammed before shipment and to increase yields. Intel expected that ‘redundancy’ would help overcome its disadvantage in manufacturing yields relative to the Japanese, and that the 256K DRAM generation would be based on the redundancy process technology.
E12. However; Fujitsu and Hitachi entered with a standard 256K DRAM in 1982 and captured a large market share.
E13. Intel was now far behind in manufacturing competence relative to the Japanese.
…
…
March 1985
…
E30. COO Andy Grove felt strongly that the burgeoning logic (microprocessor) business needed to get more resources
Summer 1985
…
E34. The General Manager of the Components Group stepped down and was reassigned to another business area. Andy Grove assumed direct operational control over the DRAM exit process. He assigned two senior managers to immediately and fully implement the DRAM exit decision.
October 1985
E35. The decision was reached to close Fab 5 for DRAM production. Fab 5 was to be transformed into a process technology site for microprocessors. Animosity and mistrust between manufacturing and process technology personnel flared at Fab 5.
E36. Andy Grove went to Portland to speak to the group: ‘Welcome to the Mainstream Intel’. That is, Intel the ‘microcomputer company’.
…
Intel’s initial success in the 1K (kilobit) DRAM (1971-73) was due to the ability of its technologists to come up with a process technology that allowed production yields sufficiently high to beat magnetic core memory, which was the industry standard of the day, in the market (E1). Process technology was therefore viewed by Intel management as the firms’ ‘distinctive competence’ (Selznick, 1957) on which its ability to differentiate its products and get a premium price depended (E7, E11, E18, E22). Having maintained leadership in the 4K DRAM generation (1972-76) (E2, E3), Intel’s process technologists came up with the first 5-volt single-power-supply 16K DRAM in 1979. Intel process technologists decided to focus on the single-power-supply 16K DRAM because they projected a relatively long life cycle for the 16K generation due to the technological challenges posed by the 64K generation (E18). They also believed that the single-power-supply process would eventually dominate the memory industry. They considered it too risky to tackle both the 64K DRAM generation and the single power supply in the same product.
While it is usually difficult to observe distinctive competence independent of the successful product with which it is associated, and the risk of tautology is high, Intel’s pattern of strategic actions offers the opportunity to make independent observations. When changes in the DRAM industry structure shifted the basis of competition from process technology to largescale precision manufacturing, Intel continued to rely on process technology to compete in four successive product generations. The first independent observation concerned the 16K DRAM generation. But, as documented below, inertial deployment of process technology competence was also observed in the 64K, 256K, and 1 Meg (megabit) product generations. Paradoxically, the distinctive competence that provided Intel with its initial competitive advantage became a source of failure later on.
…
Falling behind reinforces the impetus process
Falling behind in the market made it difficult for the DRAM business managers to compete with Intel’s other businesses for resources. Business managers had tried to reposition Intel’s single power-supply 16K DRAM as a niche product that would fetch a higher unit price (‘2x’). They had expected that eventually the whole 16K market would have to go for single-power-supply. This did not happen for the 16K generation, however, and further impetus for exit was gained when the strategy to reposition Intel’s DRAMs as niche products failed (E9; Cogan and Burgelman, 1990).
Repositioning
Intel was already late in the 64K generation and Japanese companies had entered the DRAM market in 1979. In addition, Intel’s 64K product design was flawed and expected to result in uncompetitive low manufacturing yields (E10). The DRAM process technology group responded by introducing a new process technology called ‘redundancy’, as a way to overcome the low yield problem (E11). This new process, however, had a major defect which showed up late in its development. Intel introduced its 64K DRAM with redundancy only in 1982. These delays were fatal for Intel’s strategic position in the 64K generation. A former General Manager of the Memory Components Division (during the early 1980s) said that he took a 1-week trip to see the Intel sales engineers and explain that Intel would be late. He said (Cogan and Burgelman, 1990: 15):
“The sales force was very disappointed in the company’s performance. Any sales force wants a commodity line. It’s an easy sell and sometimes it’s a big sell. That trip was perhaps the most difficult time in my whole career. When I announced we would be late with the product, the implication was that Intel would not be a factor in the 64K generation.”
Having assessed that they were behind in the 64K generation, the DRAM process technology group took another gamble. They had come up with yet another innovative process technology—complementary metal-oxide semiconductor (CMOS)—which was to eventually supersede the standard n-channel MOS (NMOS) technology. They decided to apply the CMOS technology to a new 64K DRAM product as well as in the 256K generation (E16). This raised the difficult question for the memory components division about how to effect the transition from NMOS to CMOS. The NMOS products had been made at the Chandler (Arizona) facility, but that capacity had been shifted to microcontrollers based on the maxmize margin-per-wafer start rule. In early 1984, the decision was made to phase out the NMOS line (E17).
The former General Manager of the Memory Components Division (during the early 1980s) said that the new business strategy was to reposition Intel in DRAMs. The idea was to create a niche market with premium pricing for 64K and 256K CMOS products, so that Intel could maintain a memory presence while accelerating back into an overall leadership position at the 1 Meg (Megabit) generation. But for both the 64K and 256K DRAM products, the innovative solution did not produce competitive advantage. The large majority of customers for the 64K generation were looking for standard products of high quality (few defect devices) at low prices. Japanese companies provided what customers wanted at very low prices. The Japanese had introduced standard 256K DRAMs in 1982 (E12), and Intel had fallen far behind the Japanese in manufacturing yields (E13). Intel entered with its CMOS 256K product only in 1984, and it remained a small niche product. The former General Manager of the Memory Components Division (during the early 1980s) said that standard DRAMs were being sold at less than half of the price Intel was asking, and the improved performance of the CMOS chips just wasn’t worth it to most customers. Intel’s repositioning effort resulted in completely losing strategic position in the DRAM market. Intel’ s market share shrunk from more than 80 percent in the 4K DRAM generation in 1974 to less than 1 percent in the 256K DRAM generation in 1984 (Cogan and Burgelman, 1990). Repositioning thus failed to reestablish Intel as a key player in the industry. Also, prices for the niche products were lower than expected, making it harder for DRAMs to compete with other products for Intel’s scarce manufacturing resources.
The Director of Technology Development observed that Intel’s DRAM business had entered a ‘death spiral’. In the face of strong competition from Japanese manufacturers, business managers’ focus on the more profitable products and technology development’ s preoccupation with leading-edge processes contributed to missing the
DRAM mainstream market. This led to cutbacks in manufacturing capacity and budgets which made it even more difficult to compete. This manager, in an interview in October 1988, anticipated a similar vicious circle (‘death spiral’) for EPROMs, which had also become a commodity product, and correctly foresaw the decision to exit from EPROM manufacturing, which happened in 1991.
Strategic context
For Intel’s top management, the strategic context of DRAMs had always been very clear. DRAMs had very strong legitimacy. DRAMs was the business that ‘made Intel’, as one senior manager put it, and some top managers, including the CEO, viewed DRAMs as a core business and one that served as technology driver on which the learning curve of the company depended. It was not easy for top management to admit that the legitimacy of DRAMs was vanishing. And it was difficult to decide to exit from DRAMs even though objective analysis seemed to suggest that this was the appropriate course of action in light of Intel’s strategic alternatives.
…
3. The market and industry situation
reflecting this new inflection point
Let’s see first the latest market data by one global analyst companies, IDC:
Source: IDC Expects Smart Connected Device Shipments to Grow by 14% Annually Through 2016, Led by Tablets and Smartphones [IDC press release, Sept 26, 2012]
According to the latest information from China the tablet market is quite underestimated by IDC:
How many tablets does China make, how big is the Chinese market?
80 percent of media tablets made in China are exported
Unit: Million of units
Source: Chinese industry estimates
as China alone will be delivering 50 million tablets this year and the overall Chinese estimate is 155 million units vs. 120 million per IDC:
By volume, the Android tablet sector has grown to an estimated 80 million units, outpacing the 75 million iPads sold by Apple thus far, according to estimates by Rockchip [marketing] vice president Feng Chen.
as reported by Junko Yoshida, ex-editor in chief of EE Times who now has a strong emphasis on China as “a roving reporter”:
in China Fabless: Rockchip rattled by Android tablet wars [Sept 25, 2012]
Just nine months ago, Fuzhou Rockchip Electronics, a developer of apps processor for tablets, looked almost invincible. …
… since then, the Android-based media tablet market has gotten far more competitive. By volume, the Android tablet sector has grown to an estimated 80 million units, outpacing the 75 million iPads sold by Apple thus far, according to estimates by Rockchip [marketing] vice president Feng Chen.
…
At the beginning of 2012, the target price of a 7-inch capacitive screen media tablet featuring Cortex-A8 was $99. That price has since dropped to around $65, due largely to Allwinner, a red-hot Chinese fabless company that has flooded the tablet market with its own turnkey system. … Rockchip’s situation vividly illustrates the challenges most Chinese fabless chip companies now face.
During a recent interview with EE Times here, Rockchip’s Chen said, “This is a new world war we’re fighting.” … Indeed, nearly every apps processor [sic, SoC] vendor here is in a rough spot because “the time-to-market requirement has gotten much shorter,” he noted. “Worse, catching the market rhythm or cycle — at the right time – has become much harder.”
…
“… now, as end-product cycles get shorter, we do everything from designing a chip to developing a board and software that goes around the hardware — literally within a couple of months,” he explained.
In March, for example, Rockchipstarted to design its RK3066, a dual-core Cortex A9 chip with a quad-core Mali-400 GPU. By April [15], it hustled to showcase sample tablets based on the chip at the Hong Kong Electronics Fair. By May, the company began shipping the new apps processor to its customers.…
Note regarding the timing of RK3066 SoC development:
– The initial version of RK3066 datasheet brief is dated Oct 30, 2011. the 1.0 version of it February 15, 2012.
– The RK30xx platform was announced on Feb 27, 2012 with information that “Dual-core ARM Cortex-A9 processor with up to 1.4GHz speed, implemented with Artisan Processor Optimization Pack (POP)” and that “Samples of the Rockchip RK30xx platform will be available in March 2012.”
…
Unlike other startups here, Rockchip has been profitable from the start. But as the tablet battle heats up, it also needs to find a way to move to the next level. “We are fighting a world war. We need the world’s top talent.”
The company also needs access to capital. Without it, Rockchip can’t even think about mergers or acquisitions. Organic growth alone won’t get it to the next level, Chen acknowledge, saying he expects consolidation in the Chinese fabless sector but “no Chinese companies want to give up.”
Lastly, Chen said, “We need to be clear on the market” so that Rockchip can choose its battles.
Another of her observation:
– Yoshida in China: How Nokia failed, MediaTek won [Sept 26, 2012]
Earlier this month when I sat down for breakfast here with Feng Chen, vice president of China fabless company Rockchip, he abruptly asked if I knew the “80-3-2 rule.” I had never heard of it.
The subject came up as we were discussing the global media tablet market. Chen, who noted that this is his personal theory, not Rockchip’s, explained: If you design a system (or chip) with performance of at 80 percent compared to the best-in-class product on the market, and if you offer it at one-third the price, you can double the sales volume of your system (chip).
Chen used the media tablet market as an example. Many Android-based tablets with relatively less performance than Apple’s iPad, will eventually exceed sales of iPad in volume, he argued.
In other words, don’t over-engineer it.
Android, along with outsourcing and faster product turnarounds are the key elements that make the 80-3-2 rule possible. The rule also offers a mechanism for getting products in the hands of consumers.
Source: IHS iSuppli
Does the 80-3-2 rule make sense? Sort of.
The chart above illustrates the theory’s flaw: While Apple gets all the profits generated by the iPad, sales revenue for the Android camp is divvied up by many me-too Android tablet and chip suppliers. Presumably those companies, all subscribing to the 80-3-2 rule, are fiercely undercutting one another, further reducing their margins.
So, the 80-3-2 rule is simplicity itself, but it doesn’t look sustainable to me.
Chen’s theory reminded me of something else. The Economist carried a story about “frugal innovation.” The article cited companies like General Electric and India’s Tata Consultancy Services (TCS) that developed new products like a hand-held electrocardiogram (by GE) and a water filter (TCS).
“Instead of adding ever more bells and whistles, they strip the products down to their bare essentials,” embarking on “frugal innovation,” or as it is sometimes called, “reverse innovation,” the Economist explained.
According to the Economist, “Frugal innovation is not just about redesigning products; it involves rethinking entire production processes and business models. Companies need to squeeze costs so they can reach more customers, and accept thin profit margins to gain volume….”
Therein are the dots we can use to connect to Chen’s theory. His 80-3-2 rule also addresses the issue of how a company finds a way to develop a product and a business process to squeeze costs, gain volume and reach millions of new customers.
(Full disclosure here. The Economist article was first pointed out to me by a U.K.-based engineering executive who works for Taiwan’s chip giant MediaTek. He was explaining how MediaTek’s recent success has a lot to do with “frugal innovation.” MediaTek, virtually unknown 10 years ago, is now a power house with huge market share in the Chinese smartphone and media tablet markets.)
MediaTek has fundamentally changed the playbook for the chip industry here, especially for smartphones and tablets. More chip suppliers for smartphones and tablets who are competing with MediaTek are now expected to provide similar “turnkey systems” that MediaTek delivers, rather than just reference designs.
Technology development, especially in the electronics industry, has historically been one-dimensional. It all pretty much comes down to how your engineering team makes a system operate faster, run more apps and features, while consuming less power.
Frugal, or reverse, innovation and the 80-3-2 rule both suggest that it’s time to rethink innovation in more in multi-dimensional terms.
I can think of two good examples for how ignoring reverse innovation costs companies. … Nokia … Japanese LCD TV manufacturers like Sharp …
Her latest report continues with Yoshida in China: ‘Shanzhai’ clouds tablet data [EE Times, Nov 8, 2012]
NEW YORK – The global tablet market may be a lot bigger — perhaps as much as 50 percent bigger — than previously thought depending on how you measure the increasing numbers of “Shanzhai” tablets produced in China.
Loosely translated, “Shanzhai” means white box, as in, no label. These tablets manufactured in China are distinguished from “knockoff” products, which the original Chinese term “Shanzhai” suggests.
Earlier, I wrote about the global market for tablets during the third quarter of this year. According to estimates, shipments reached 27.8 million units.
Several industry sources based in Beijing and Shenzhen responded with notes saying that the math behind the industry estimates didn’t add up. The Chinese observers argue that most estimates ignore the size of the white box tablet market.
Factoring in the number of apps processors shipped by Chinese fabless companies and tablet displays from its panel vendors, the number of white box tablets made in Shenzhen during the third quarter could total as high as 18 million units, Chinese sources claimed.
Add those to the branded tablets sold by Apple, Samsung, Amazon, Asus and Lenovo and the global tablet market in the third quarter jumps to 42.5 million units. That’s 52 percent more than the global total estimated by IDC in 3Q.
This huge gap makes me wonder what other Chinese consumer electronics products are uncounted or under-counted.
One thing to take into account is Chinese fabless chip company Allwinner Technology — how it operates and and how it has taken advantage of the growing white box market.
The applications processor vendor has substantially expanded its market share over the last 18 months, primarily based on the strength of its turnkey system that has been described as “super easy to use” by Chinese industry sources. The solution allegedly makes it a snap for practically any white-box vendor to make media tablets and ramp up production in a Shenzhen minute.
According to sources in Shenzhen, Allwinner holds as much as 60 percent of the white box market and shipped 3.5 million apps processors in August alone. Allwinner is said to have shipped 5 million apps processors in October, generating $30 million revenue (at a $6 average selling price). If true, wow!
The momentum behind white box tablet production in Shenzhen is building. Chinese sources now believe shipments have climbed from 6 million units in August to 9 million in October.
Who’s buying all these tablets?
A source in Beijing describes them as “tablets shipped by no-name brands at about $50.” The end market is not necessarily China, but “mostly emerging economies including Southeast Asia, the Middle East, Eastern Europe, South America and Africa, etc.” He added that Chinese consumers “have similar tastes and demands as those living in the developed world. They don’t really buy these low-end tablets. They buy iPad or Samsung.”
If true, we may need to rethink not just the size of the booming tablet market, but the consumer revolution triggered by the tablet market well beyond China’s border.
The lack of recognizable brand names makes it that much harder to track unit shipments. Plus, chip shipment figures can be inflated or double-counted. Then there is China’s vast gray market.
Even taking all of those factors in account, the explosion of tablets in emerging markets is no mirage – and it might be spreading much faster than any one imagined.
For example, one source in Shenzhen estimates that annual shipment of white box tablets this year could hit 50 million units.
With all that she (Junko Yoshida) came closest from the West to understand the new ICT phenomenon rooted in China. Now let’s look at what others have come to so far:
The overall tablet market trend is illustrated by IHS iSuppli via the tablet display shipments as follows:
then it is described in Global Tablet Display Shipments to Soar by 56 Percent in 2012 [IHS iSuppli press release, Sept 17, 2012] as:
… [the first part of the press release is essentially giving information which is represented by the diagram above] …
LG and Samsung Dominate Tablet Display Shipments
LG Display and Samsung Display were the main suppliers of tablet displays in the first quarter with 42 percent and 38 percent shipment market share, respectively. Both are market leaders because they make the liquid crystal display (LCD) panels that are used in the iPad, which continued to dominate the media tablet space with a commanding 58 percent of all tablets shipped in the first quarter.
[LG Display holds 70% of iPad panel shipments [DIGITIMES, Sept 20, 2012]: while Samsung Electronics, Sharp and Chimei Innolux (CMI) have all been seeing decreasing shipments … CMI will make up less than 5% of overall iPad panel shipments by the end of the third quarter in 2012.]
Aside from supplying Apple, LGD also furnishes display panels to Amazon and Barnes & Noble, while Samsung provides panels to its internal tablet division. Investments are being made by the two major tablet panel suppliers in capacity allocation and technological improvements to supply high-performance tablet panels and to develop wide-viewing-angle technologies like in-plane switching (IPS) and fringe-field switching (FFS). Both LGD and Samsung Display are also looking to convert amorphous-silicon fabs into making oxide silicon panels to help improve tablet panel resolution, power consumption and overall performance.
Panel Manufacturers Enter the Tablet Panel Fray
Other LCD panel suppliers also are jumping into the fast-growing tablet market. In particular, Japanese suppliers such as Sharp, Japan Display and Panasonic are actively targeting the tablet panel market by dedicating capacity at their Generation 6 and Generation 8 fabs in order to make tablet panels.
Together the capacity allocation this year for small and medium displays by the Japanese is expected to increase 164 percent from last year’s levels, reaching 5.5 million square meters in 2012. Of particular interest is the oxide silicon capacity at Sharp, which has been supplying panels from its G8 fab for the latest iteration of the iPad—also called the new iPad. Another company, Panasonic, is likely to produce 7.x-inch and 8.x-inch tablet panels during the second half of this year.
For their part, LCD suppliers based in Taiwan, such as AU Optronics and ChiMei Innolux, reportedly are adjusting their business models—some to focus on tablets for the education sector, and others to supply tablets for the white-box market in China.
It is believed that AUO may be one of the suppliers qualified to supply the smaller iPad’s 7.85-in panels.
But unlike Tier 1 tablet display makers LGD and Samsung Display, Taiwanese panel suppliers primarily target the Chinese market that is geared more toward lower-priced tablets. To meet lower price points, display specifications are usually dialed down compared to Tier 1 products. Displays targeted at the white-box tablet market in China mainly employ the more basic twisted nematic (TN) LCD, not the wide-viewing-angle LCD technologies of IPS and FFS.
Regardless of the display technology and market segment, display suppliers are making sure they align their strategies to serve this fast-growing market.
Chimei Innolux to Win 40%-50% Share of White-brand Tablet PC Touch-panel Market [CENS, Aug 15, 2012]
Chimei Innolux Corp., the largest thin film transistor-liquid crystal display (TFT-LCD) panel manufacturer in Taiwan, is expected to win a 40% to 50% share of the global market for white-brand tablet PC applications, according to the company.
Some 40 million to 60 million white-brand tablet PCs are expected to be shipped this year, similar to the total shipments of Apple`s iPad.
Major market research firm DisplaySearch recently forecast that some 121 million tablet PCs would be shipped worldwide this year, and the annual volume would increase to 416 million units in 2016, in conjunction with a compound annual growth rate (CAGR) of 28% over next five years. Apple would continue to be the market leader in next five years with a market share of 60%, while white-brand counterparts are expected to enjoy high growth due to their advantageous pricing.
Jeff Hsu, Chimei Innolux`s vice president, pointed out that demand for white-brand tablet PCs from emerging markets has been quite strong this year. In addition to sales in China, many Chinese white-brand tablet PC makers also export products to other nations. So, the annual demand for touch panels for white-brand tablet PCs this year is expected to reach some 60 million units, with 7-inch models as the mainstream and followed by 10-inch ones. Chimei Innolux aims to ship more than 25 million touch panels for white-brand tablet PCs, accounting for 40% to 50% of the application market, Hsu said.
Hsu also added that this year, the mainstream touch-panel type in tablet PC application has shifted from resistor to capacitive, which is expected to benefit many Taiwanese suppliers with more advanced technology. Jtouch Corp. of Taiwan, for example, is stepping up boosting production capacity of its new touch-panel factory in Hunan Province of China. The firm`s large-sized touch panels are expected to account for more than 20% of its revenue this year. Mutto Optronics Co., Ltd. recently also won big-ticket orders for tablet PC touch panels, and expected to see a 30% sequential revenue growth in the third quarter.
Google recently pushed its Nexus 7 tablet PC priced for only US$199, and the company immediately sold out one million units. A white-brand tablet PC with 7-inch screen is often priced for about US$100 only, and such more affordable device has won very hot market responses in Latin America, Southeast Asia etc. Currently, monthly tablet PC shipments in China are between three million and four million units.
However in Tablet PCs will have good sales in the third quarter [Micdigi from China, July 19, 2012], from a knowledgeable source in Shezhen:
In the first quarter of 2012, the manufactures have good business, but in the second quarter they have so worse business.
As they have produced so many products in the first quarter, they have large stock of goods that they have to mark down price to sell them.
In the second quarter of 2011, the tablet PCs has good sales. But in this year, it is so cold.
In the third quarter, tablet market will rebound.
VIA chips was the winner in all the chip manufactures last year.
But in this year, Allwinner with high cost/performance chips gets the winner.
Most of Shenzhen tablet manufactures export to other countries. Because Chinese do not like knock off tablet PCs or SurperPad tablet PCs, they like brand ones.
In the third quarter, the tablet market will rebound and the fourth quarter will be the boom season.
I think the manufactures must get ready for the fourth quarter.
They had better prepare products with high cost performance.
This is one of the reasons why Nexus 7 not yet allowed to enter China market [Sept 11, 2012]:
While the Nexus 7, the tablet co-developed by Google and Taiwan-based vendor Asustek Computer, has been witnessing booming sales in major markets around the world, it is difficult for the model to be available for sale in the China market because the China government has not yet approved its import, according to industry sources in Taiwan.
The China government’s negative attitude is interpreted as a response to Google’s announcement of withdrawing from the China market in March 2010, the sources pointed out. It is difficult for the Nexus 7 to enter the China market, even through sale of Asustek’s marketing network there, the sources indicated.
Without the Nexus 7 in the market, China-based white-box vendors of tablets are under much less competitive pressure, the sources indicated. This is because the Nexus 7 has the advantage of Google’s and Asustek’s brand image with commensurate product quality and is expected to be strongly competitive with 8GB Android 4.0 tablet models in the 7- to 9-inch range launched by China-based white-box vendors, including Ainol, Onda, Teclast and Cube, at US$149, the sources pointed out. In addition, the Nexus 7 will bring competitive pressure on tablet PC models of equal specifications offered by Samsung Electronics and China-based vendors Lenovo and Hasee Computer in the China market, the sources indicated.
Without the China market, the cumulative global sales volume of Nexus 7 will reach an estimated 3.5 million units at the end of 2012, the sources noted.
Tablet Shipments to Surpass Notebook Shipments in 2016 [NPD DisplaySearch press release, July 3, 2012]
Total Mobile PC Shipments Exceed 800M Units by 2017
Tablet PCs, such as Apple’s iPad, are expected to be the growth driver for the mobile PC market over the next few years. Tablet shipments will surpass notebook shipments in 2016, according to the latest NPD DisplaySearch Quarterly Mobile PC Shipment and Forecast Report. Overall mobile PC shipments will grow from 347M units in 2012 to over 809M units by 2017.
While notebook PC shipments are expected to increase from 208M units in 2012 to 393M units by 2017, tablet PC shipments are expected to grow from 121M units to 416M units in this period, for a compound annual growth rate of 28%. A key driver for tablet PC growth is adoption in mature markets (including North America, Japan and Western Europe), which will account for 66% of shipments in 2012 and remain in the 60% range throughout the forecast period. Tablet PC shipments into mature markets will grow from 80M units in 2012 to 254M units by 2017.
Figure 1: Worldwide Mobile PC Shipment Forecast (000s)
![]()
Source: NPD DisplaySearch Quarterly Mobile PC Shipment and Forecast Report
“Consumer preference for mobile computing devices is shifting from notebook to tablet PCs, particularly in mature markets,” said Richard Shim, senior analyst at NPD DisplaySearch. “While the lines between tablet and notebook PCs are blurring, we expect mature markets to be the primary regions for tablet PC adoption. New entrants are tending to launch their initial products in mature markets. Services and infrastructure needed to create compelling new usage models are often better established in mature markets.”
Figure 2: Emerging and Mature Market Tablet Shipments (000s)
![]()
Source: NPD DisplaySearch Quarterly Mobile PC Shipment and Forecast Report
Building upon convenience-oriented features including instant-on capability, long battery life and extreme portability, tablet PCs are expected to evolve in form factor and performance, making them a compelling alternative to notebook PCs. Tablet PCs are expected to incorporate multi-core processors, increasingly stable operating systems, growing app libraries and higher resolution displays.
In addition, notebook PCs are also evolving to meet the challenge from tablet PCs. Thinner form factors, higher resolution displays and touch functionality features are expected to increase. The notebook PC market will remain the largest part of the mobile PC market during the forecast period, accounting for 60% of mobile PC shipments in 2012, declining to 49% by 2017.
Digitimes Research: China tablet SoC developers enjoy robust shipment growth in 2012 [DIGITIMES Research, Nov 20, 2012]
There has been a surge in demand for tablet-use SoC solutions in the China market thus far in 2012, benefiting local IC design companies such as Allwinner Technology, Rockchip Technology and Amlogic, according to Digitimes Research. The tablet-IC market in China is dominated by local SoC developers, which mainly adopt the ARM architecture enabling a low-cost and easy-to-design platform.
Shipments of China makers’ branded and white-box tablets destined for the local market are forecast to reach about 15 million units in 2012, while those destined for overseas will climb to as high as 44.15 million, Digitimes Research said. In total, shipments of China makers’ branded and white-box tablets are estimated at nearly 60 million units in 2012, Digitimes Research indicated.
China’s white-box tablet companies will account for 81% of the overall units shipped in 2012, Digitimes Research said. Shipments of China’s brand-name tablet companies are set to reach only about five million units in 2012, Digitimes Research added.
Europe, the Middle East, Southeast Asia and South America are the key markets which China-based tablet exporters will target in 2012, Digitimes Research noted. The exporters, mainly white-box makers, have their products sold through local distributors and telecom carriers in the target markets. [8%]
Allwinner will unseat Rockchip as the top developer of tablet SoCs in 2012. Allwinner is forecast to ship a total of 22 million chips in 2012 [37%], while Rockchip‘s shipments will total 12.5 million units [21%], Digitimes Research said. Amlogic will rank third with shipments of 5.5 million units [9%], followed by Taiwan-based VIA Technologies with 4.5 million units [8%], according to Digitimes Research.
Source: Digitimes Research, November 2012
Non-Apple tablets to drop to US$150-200 upon release of upcoming 7.85-inch iPad [DIGITIMES, Sept 18, 2012]
Tablets priced US$199-400 are expected to drop in price to US$150-200 in order to help non-Apple tablet makers stay competitive when Apple releases its reported 7.85-inch iPad, according to industry sources.
The sources are predicting that Apple will have a big influence on the 7-inch tablet market just like it currently has with its 9.7-inch iPad series and competitors will need to drop their tablet prices as well as provide more value-added features for the devices, said the sources.
If major tablet makers were to drop product prices they would most likely not incur losses as many makers make a substantial amount of profits from 3G plans with telecommunication providers, added the sources.
The sources still haven’t confirmed an exact release date for Apple’s 7.85-inch iPad but are expecting it will be early in the fourth quarter.
MediaTek’s Q3 sales expected to beat company’s guidance [Focus Taiwan, Sept 16, 2012]
… Bill Lu, a Morgan Stanley analyst in Hong Kong, expected MediaTek to ship over 200 million smartphone chips in 2013 by offering a more complete solution to Chinese handset. …
Another upside factor for MediaTek is growing interest in “white-box” tablets in emerging markets, which could approach 100 million to 150 million units in 2013 and drive up MediaTek’s revenue if the company can tap into the supply chain, Lu said.
A white-box tablet is a model without a registered brand name, which is usually sold more cheaply than branded tablets to gain traction among price-sensitive consumers.
Global shipments of white-box tablet PCs to reach 40 million units in 2012, say chip designers [DIGITIMES, July 25, 2012]
Forecast global shipments of white-box tablet PCs in 2012 have been upward adjusted from 30 million units originally to 40 million units due to growing demand in emerging markets including China, India, Thailand and Latin America, according to Taiwan-based design houses of ICs used in tablet PCs.
An estimated 10 million white-box tablet PCs were shipped globally in 2011, and shipments increased to 18 million units in the first half of 2012, the sources indicated.
Vendors/makers of white-box tablet PCs currently cluster in Shenzhen and Dongguan, southern China, the sources noted. A large portion originally made netbooks and have stepped into tablet PCs as chips and the Android operating systems have matured, the sources said.
White-box tablet PCs are primarily competitive in price with models launched by own-brand vendors, with retail prices standing at US$59 for 7-inch models and US$149 for 10.1-inch models, the sources indicated.
China white-box vendors showcase tablets at HK fair [DIGITIMES, April 16, 2012]
Many China-based white-box vendors are showcasing 7.0-inch tablet PC models at shipment prices of US$65-80 and 10.1-inch models at US$100-110 at the 2012 Hong Kong Electronics Fair (Spring Edition) taking place during April 13-16.
These white-box vendors include Dream Technology, Aocos, PCTX, HKC, Onn and Onda.
These tablet PC models are equipped with chipset solutions mostly developed by China-based Allwinner Technology, Android 4.0, Wi-Fi modules, 4GB built-in memory, 800×480 or 1,024×600 16:9 touch screens, plastic casings. In addition, 9.7-inch tablet PCs equipped with IPS touch screens and metal casings are priced at US$130-140.
If these tablet PC models are also equipped with 3.5G modules, shipment prices will increase by US$45 on average, according to white-box vendors.
White-box vendors indicated that they have reached combined shipments of three million tablet PCs a month.
China-based white-box tablet PC makers ramping up shipments, say sources [DIGITIMES, April 13, 2012]
China-based white-box tablet PC makers have ramped up their combined shipments to three million units a month recently, and total shipments of tablet PCs by all makers are expected to top 50 million units in 2012, market research firm eMedia Asia has estimated.
In Guangdong province alone, hundreds of small- and medium-size businesses have entered the development and production of tablet PCs on an OEM, ODM or OBM basis, according to industry sources.
With the availability of Android 4.0 platform, white-box makers have rolled out tablets in 7-, 8-, 9.7- and 10.1-inch sizes with specifications catered to customer’s demand, said the sources, adding that the models target markets in the Middle East, Southeast Asia and Latin America.
The white-box makers are able to deliver a 10.1-inch model, which runs on Android 4.0 and has a display resolution of 1024 by 600 and 4GB built-in storage, at FOB prices of about US$100-110, indicated the sources.
Shipments of tablet PCs by China-based makers totaled 14 million units in 2011, eMedia Asia said.
Suggested further reading: Here is a recent set of briefing documents produced by Seasize Technology Co., Ltd, formed in 2007 in Shenzhen China with roots in trading of electronic goods for export as early as 2005, see: Support [Seasize, Aug 20, 2012]
Download Free
CHINA TABLET PC SOURCING GUIDE (English) [Aug 8, 2012]
This is a guide to purchasing (“sourcing”) from China, and working with Chinese factories. It will probably be most helpful to people like me – entrepreneurs developing a new product or starting a new business that need to obtain parts and raw materials from China. It is written humorously, but hopefully there is some useful advice.
CHINA TABLET PC WHOLDSALES MARKET 2012(English) [Aug 7, 2012]
This article is provided by Seasize Technology- professional tablet PC manufacturer in Shenzhen,China, exclusively to customers. You may share this information to your friends and colleagues. Seasize should not be held responsible for any information that may be misleading or incorrect.
CHINA TABLET SOLUTIONS INTRODUCTION(English) [Aug 8, 2012]
This article is provided by Seasize Technology- China popular tablet pc solutions:chips company&chips introduction. The performance of a tablet model is determined by the tablet solution. To select and source the right tablet products, you have to know the difference among tablet solutions and identify the right tablet designers and manufacturers.
which are giving a kind of industry insider’s view into the complex world of the Chinese ICT goods market.
How relevant is it? A year earlier Company Introduction [Sept 5, 2011] described Seasize Technology’s business as:
After years of development, Seasize technology already has a strong domestic procurement and export capacities. We are committed to provide affordable and quality digital video and GPS navigation products. Our company persist the principle of: Customer first, quality first not only meets the needs of customers and has been recognized by customers.
Since its inception, the company mainly engaged in two major product lines: digital audio playback systems and GPS navigation devices,
Digital audio and video aspects of the products covered MP3/MP4/MP5 players, digital TV set-top box, digital television etc.
GPS navigation devices contain : GPS navigator, GPS tracker, networking version of GPS, GPS navigation and digital TV combo products, and the recently launched GPS navigation function with Internet personal terminal device (MID).
Based on trade in the same time, has been developing its own brand and own technology products, after years of effort, the company has filed multiple patents in the country, and has registered the brand. Dependent on many years of trading experience and technology accumulation Seasize Technology already has more advanced ability to enter this industry. It can be expected in the near future that we will get a place in the relevant fields, and access to long-term development.
Its new profile [May 27, 2012] stated a subsequently changed description as:
After years of development, we have grown up into a strong company which enjoys many advantages from procurement, production and export. We have passed ISO9001:2008 certificate in year 2011 and established a standard quality system that will ensure our delivery of quality product to our customers. Our product lines include two areas: digital audio&video products and GPS-related products. We are committed to provide our customers with cost-effective solutions, whose value has been seriously balanced against its prices.
and then there is a SOURCING GUIDE-Android Tablet pc,tablet pc,wifi tablet pc,google tablet pc,tablet pc review,wholesale tablet pc [Aug 8, 2012] page which was quite probably the marketing campaign page for the above documents with leads generated via registrations for each, with more direct indication of the China Tablet Solutions Introduction [Aug 8, 2012] as well as another one of Risks of Doing Business in China.
Seasize therefore is definitely trying to expand its purchasing business as well, so its documents could be valuable, even sufficiently authentic for those people who are potential partners of Seasize. As such these documents might describe the purchasing situation over there for everybody else as well. For Seasize’s track record of activities see: Seasize Technology Co., Ltd.: Newsletter Archive [May 31, 2011 – Aug 7, 2012 and beyond].
4. The Allwinner advantage 全志
珠海 Zhuhai 全志科技 Allwinner Technology (150 ~ 499 employees) — 148 campus hirees only for 2013 (click here for a full content) recruited with a roadshow held in:
– 西安 Xi’an: at 西安交通大学 Xi’an Jiaotong University (XJTU) on Sep 18; at 西安电子科技大学 Xidian University on Sept 21
– 哈尔滨 Harbin: at 哈尔滨工业大学 Harbin Institute of Technology on Sept 25
– 武汉 Wuhan: at 华中科技大学 Huazhong University of Science & Technology (HUST) on Sept 22.
– 广州 Guangzhou: at 华南理工大学 South China University of Technology (SCUT) on Sept 17, at 中山大学 Sun Yat-sen University TBD
– 成都 Chengdu: at 电子科技大学 University of Electronic Science and Technology of China (UESTC) on Oct 11.
From jobyun.com:
= US$ 1,113
Company Overview of AllWinner Technology Co., Ltd.
[Bloomberg Businessweek]
AllWinner Technology Co., Ltd. engages in mixed-mode SOC technology research and VLSI design. The company’s products are used in high-definition television and digital photo frame markets. It also provides support services. The company was founded in 2007 and is based in Zhuhai [Guangdong province], China.
From: AllWinner Technology Selects ARM Cortex CPU and Mali GPU Technologies To Bring Integrated SoC To Android OS-Based, Connected Consumer Devices [ARM press release, April 12, 2011]
AllWinner Technology Co., Ltd was founded in 2007, and is engaged in mixed-mode SOC technology research and VLSI design. AllWinner Technology is dedicated to be the major leader in the HD media field, to excel in low-power VLSI design, advanced technology and innovative architecture; to be the pulse of the consumer market, with a unique understanding of self-developed core technologies. Through functionality, performance and cost advantages of integrated products and the industrialization of the operational capabilities of the market to provide customers with leading designs and services from SOC products to comprehensive solutions.
From: Zhuhai sez daily: Gan Lin investigated in high-tech zones “two little two two high” enterprise [Allwinner press release, June 10, 2010]
… Gan Lin, Party Secretary of Zhuhai city … accompanied by director of the CMC Qiu Shi, successively investigated the Kingsoft Park (Jinshan Software Park) project site, Xuan Garment Co., Ltd. Design Center, BOXlight (Po Wright) Medical Technology Inc., Tin Shui Power Technology Limited, Allwinner Technology Co., Ltd. and Bioenergy Limited. …
Zhuhai Allwinner Technology Limited is committed to becoming a leader of application requirements in the area of key technologies for HD multimedia and communication networks, radio and television networks, and the Internet “triple play”; specializes in low power VLSI design capacity of independent research and development of core technologies, has completely independent intellectual property rights. According to the General Manager [Chairman and CEO] of the company, Zhang Jianhui (张建辉), the Allwinner company was established in 2007. In the first two years to April 2009, the company had been working hard on technology R & D and did not earn a penny, then launched two categories for the introduction of a series of nine full HD network integrated smardescriptiont chips in order to become one of the leading manufacturer of ultra-large-scale system-on-chip and embedded software technology.
…
The roots of the Allwinner Technology:
May I ask [about] Zhuhai [珠海] Victory Technology [全胜 科技] – How can I like it? [http://laoyaoba.com in Chinese, Oct 23, 2010]
Looking for a job, this company has come to our school, a little want to go, but I don’t know how on Earth is this company, [since there is] almost no information on the Internet, looking for an insider look, appreciate it!
… The entrepreneurial team of Zhao Guangmin[赵广民先]’s [Zhuhai] Actions Semiconductor Co., Ltd. was brought over after Zhao’s unfortunate, untimely death. The Zhang Jianhui[张建辉]-led team, however, is still very strong in the Chinese semiconductor industry. It began to grab the PMP [Personal Media Player >>> MP3 etc.] market share last year, and it is estimated that [its] revenue this year should be around $ 30 million ….
The life and spiritual heritage of the legendary Chinese IC design industry leader Zhao Guangmin [Baidu in Chinese, Aug 27, 2007]
… In early 2006, Zhao Guangmin left Actions, where had been working for a number of years, and with a number of like-minded partners co-founded Victory (Zhuhai) Microelectronics Co. as chairman with aspirations to win a new peak. …
Actions pass the sudden departure of founder, investors have been excluded [VentureData.org, April 4, 2006], the picture of Zhao Guangmin below is from this source which is the Chinese origin of this material below:
Led the company successfully landed on the Nasdaq after 4 months, founder of Zhuhai Actions Semiconductor Co., Ltd. (hereinafter referred to as “Actions”), Zhao Guangmin [then vice chairman of the company] suddenly announced his resignation.
…
Zhao Guangmin the early 1980s graduated from Xi’an Jiaotong University, has a number of Semiconductor companies in the office. Zhao Guangmin founded in December 2001 and served as general manager [not CEO] of Actions. Actions a total investment of $ 10 million, primarily engaged in the development of VLSI design and test production. Taiwan-funded by the holding of shares in which Zhao Guangmin unknown.
Under Zhao Guangmin leadership, relying on keen to capture the opportunity to MP3 chips, Actions to achieve rapid development. In 2002, Actions Semiconductor sales only 1.08 million yuan [US$ 130K]; in 2003 sales increased to
4,000 million[US$ 4.3 million – see the chart later]; in 2004 sales soared to more 460 million [US$ 55.5 million], net profit up 200 million yuan [US$ 24.1 million].At the same time, Actions also introduced more than a dozen proprietary chip. In 2004, the company was selected as the China Semiconductor Industry Association, the annual top ten IC design companies. To the fourth quarter of 2004, Actions in the global chip market share in the first MP3.
November 30, 2005, to Actions as the main Action Semiconductor Co.Ltd (Nasdaq: ACTS) in the U.S. Nasdaq market, the first phase of financing $ 72 million. Since listing, the market responded well to the Actions, and there have been investment banking analyst cut its rating to “buy.”
Actions with the same period of rapid development and to the patent dispute. Zhao Guangmin issue in the mail two days before departure, the U.S. International Trade Commission a preliminary ruling, Actions part of the audio processor infringes two U.S. SigmaTel’s patents. SigmaTel is the world’s leading mobile phones and digital audio players, chip vendors, the company early last year to the U.S. District Court in Austin, sued Actions Semiconductor infringed its patents.
“Now I can not say anything, but to leave and certainly nothing to do with the lawsuit.” Zhao Guangmin side of the phone hesitantly.
Zhao reasons for leaving, Actions official answer is “retired.” One of the company staff responsible for media relations, said, “Although less than the retirement age, but Zhao fame in this industry has made the decision to retreat is also very natural.”
However, close to Zhao Guangmin the industry does not think so. He said that Zhao’s departure and the investors.
The source said, as early as Actions Prior to listing, to facilitate investment in the idea of a replacement company executives. Public information, Zhao Guangmin general manager of the term of Actions of August 2005, is the company going public push. Zhao’s successor as general manager, is working with many years experience in the semiconductor industry, China Taiwan nationals Yenan Hong.
On this course, after listing a media interview, Zhao Guangmin stunned: “In order listed, and sometimes take their cut first!”
According to Zhao said, in order to make more in line with investors Actions taste, Actions update prior to listing a number of board members and executives. Most of these people in the chip industry has a deep background and is familiar to foreign investors, including former vice president of operations SMIC Chiu Tsz Wan.
Interestingly, in the Actions of the prospectus, as the founder of Zhao Guangmin not appear in the list of shareholders, executives, Zhao’s team did not name.
Further explanation is given here, only two sentences are important to quote (the picture of Zhao Guangmin below is from this source which is the Chinese origin of this material below):
… [Till] June 2005 Zhao Guangmin has been Actions’ general manager, [then] since June
to becomevice president, and in November the company officially listed [that] Zhao Guangmin had [been] transformed into a vice chairman. … In fact, although ZhaoGuangmin since 1993 aswas general manager of Zhuhai Actions, but hehashad no control of the company, the companyhashad been in a firm grip on the hands of equity investment in Taiwan.
Note that Actions is a still existing company keeping its description as under Zhao Guangmin’s leadersip: About Actions [Sept 6, 2005]
… Actions has successfully put into market some products, such as digital audio/video SOC chip and its total solution, a series of IC for digital potential meter, SOC chip for TV entertainment products and its total solution, … etc, since the first day it was found. All Actions’ products are under the protection of intellectual property law, and have been gradually showing their competitive power after directly joining the international market.
With management and techniques accumulated, high-tech and product positioning, precise market position, strong innovative power, Actions sustains fast improvement and development. In 2003, Actions was identified as one of the top 10 fastest growing IC design companies within the China area by the China semiconductor association; the same situation will happen again in 2004 as well.
Actions’ latest product developed under his leadership: Actions Introduces New Video Technology — Advanced Media Video (AMV) [Actions press release, April 10, 2006]
… provides comprehensive mixed-signal system-on-a-chip solutions for portable consumer electronics, today introduced a new generation of video technology, Advanced Media Video-AMV3.0. This new technology supports a higher degree of picture resolution (QCIF i.e. 176 x 144), a better display of motion picture than the AMV1.0 and 2.0 technologies, and is capable of converting SWF files and other regular movie formats. This technology was developed specifically to be the video engine for Actions’ new 9 series SoCs.
The history of Actions’ audio and video technology can be traced back to 2004, when Actions introduced two video technologies, MTV1.0 and MTV2.2, ahead of a majority of its competitors. This breakthrough innovation of Actions had risen the technology playing field of the entire digital music industry to a higher level.
…
“Although our current 9 series SoCs require conversion software to enable playback, our next generation of SoC products, embedded with a MIPS core, will support direct streaming video playback. With the benefits of a MIPS core, the data processing speed will be much faster,” continued Mr. [John] Lee [Senior Product Manager of the company].
“The advancement of our MIPS core technology will remain consistent with our development in AMV4.0. Furthermore, based on the MIPS platform, both the design house and the manufacturer will be able to freely take full advantage of their expert technology, thus providing them with a favorable position in a fiercely competitive market,” concluded Mr. Lee.
Here is the “Proven Management Experience and Expertise” slide (#11) from the May 2006 Corporate Overview of Actions presentation. Note that this was immediately after the departure of Zhao Guangmin and there were three managers from the original founding team, neither of them with executive power (as evidenced by EDGAR submissions), and only Shao Chuan (Shawn) Li is still with Actions as a director of the board (since September 2005) but more importantly as Chief Technology Officer (since the establishment of Actions in December 2001), while Zhang Jianhui was the head of Multimedia Division and as such he was the topmost manager with core innovation competency, and it was no surprise that he left Actions when Zhao Guangmin established his next venture, Victory (Zhuhai) Microelectronics Co. which after his death became the current Allwinner managed by Zhang Jianhui. (There is no information about Gong Hui.) Note as well that at the time of that presentation Actions had 280 employees; 210 engineers with IC, system, and software capabilities.
It is quite remarkable that after Zhao Guangmin’s departure Actions went into decline as visible from the chart showing the revenues generated by the company. With $150M in 2005 Actions was the second-largest China-based fabless company. Employing not less than 280 people in 2006 the new Taiwanese executive duo of Nan-Horng Yeh as CEO and David Lee as CFO (both educated in the United States) have completely failed. This is all despite of their strategy to move into midrange products by developing mobile TV SoCs via licensing core technology from U.S.-based Mavrix Technology. See: SoC firm finds fertile ground in China [EDN, Aug 22, 2006]. This licensing decision led only into an industry sideline with stronger external reliance on MIPS processor cores (originally selected by Zhao Guangmin in July 2005 as the vice president, but for fast internal development) and a subsequent, necessary acquisition of Mavrix as licensee in 2010. Paradoxically Mavrix’s CEO, Dr. Zhenyu Zhou became even the CEO of Actions in December 2011. Only David Lee has still a high-level position with the company as chairman of the board. The future outlook for Actions is also rather uncertain as only a single analyst had any interest in the company’s Q2 2012 Results Call [Aug 7, 2012].
What a contrast with Zhao Guangmin’s new company which became after his death today’s Allwinner. Here is the Commemorate [what] Zhao insisted: a win-win situation, team together and do things realistic [Aug 24, 2007] by his deputy (??) and effective successor in charge of his Victory Microelectronics Co., Ltd., Zhang Jianhui:
Zhao went away from us, the circle of friends chatted about Zhao, and so far we are still unable to accept that this is a fact. Remembered Zhao, in addition to in the legendary entrepreneurial experience at Actions, we talk about the most, is the insistence of Zhao and low-key.
Speaking of the insistence of old Zhao, when Zhao won the Zhuhai Special Economic Person of the Year in 2004, in an interview he said: “As long as you choose the right direction, be sure to persist in walking, did not insist on was not successful.” It is this insistence on belief and perseverance of action which created Zhao’s unusual success story.
First, Zhao insisted on the concept of win-win, through the development of core IC products to add value for the customer, and industry chain downstream supporting enterprise vertical and horizontal, building win-win business model among enterprises, resulting in overall lead between the company and the customer.
Zhao served as general manager of Actions by virtue of more than 10 years accumulated of IC design and enterprise operating management experience. He led there a well-trained professional operating team to share common goals, to carry out efforts with hard work, to get global semiconductor industry attention via achievements. This made Actions from an unknown small company, in just a few years, China IC design industry’s first to become a globally known enterprise. The MP3 multimedia master chip R & D accounted for more than 50% of the world market share. This led to billions of dollars via the quick formation of the MP3 industry chain in China, prompting mainland China to become world’s major export base of MP3 which has brought tremendous development and benefits to the consumer electronics industry [here].
This was for the first time as a mainland China IC design company established itself in the field of global consumer electronics products, mastered and mass provided the core technology products with international advanced level. Actions’ operating income grew significantly from a few million yuan in 2002 to 1.2 billion yuan in 2005, [thus] creating rapid growth of more than 100 times for the Actions Semiconductor in three years only, and [then] eventually prompting the success of Actions to be listed on NASDAQ.
Second, Zhao insisted on the need to uphold the integrity of the fundamental values [which] can be established between the team and the customer, [on the] long term sustainable growth of business culture, [that] the strength of the team is always greater than the power of any individual.
In the early venture days of Actions Zhao personally wrote a column for the internal publications, talked about the issues of development ideas and the reform of corporate culture, and also to encourage other executives to write articles for publication. Fixed each Wednesday [?his?] commuting leadership talked about the exchange of business issues, to develop common thinking habits and language of communication – because every time before this would open, the kitchen will cook a pot of noodles as participants of dinner, affectionately called “noodles will”.
This will sometimes be open until two o’clock at night, and the truth is argued more and more out; companies and departments use the monthly regular meeting with employees face-to-face communication. After a year passed, not only everyone has made great progress, but he also formed a fully functional teamwork of high degree of homogeneity and quality, great combat effectiveness of entrepreneurial backbone of the team, and subsequently laid a very good foundation to the success of the company.
Third, Zhao insisted on doing anything seriously, down-to-earth. He used to say that a 99.99% working IC is still not working. Design paradoxes are in place, it is where the BUG. In 1995 I and old Zhao did cooperative research and development projects for the first time. I was responsible for the system design, Zhao for the circuit design. There was no RTL coding method as now, the circuit was built by human hand structures. Zhao’s design adhered to repeated scrutiny and carefully optimized design logic based on clear, simple drawing. Sometimes he explained to me where is the circuit of the collar, which is the heart of the circuit and the limbs, old Zhao could meander, and the favorite circuit design is input ready.
It is quite unfortunate that China’s IC design industry has lost an outstanding leader, and friends lost an honest, down-to-earth best friend. However, true to Zhao’s spirit, I believe in increasing prosperity and burgeoning growth of Chinese IC design, offering useful lessons and inspirations, and I believe this will also correspond to Zhao’s heartfelt wishes and expectations.
Mr. Zhao Guangmin may rest [in peace] .
Author: Zhang Jianhui, Victory Microelectronics [全胜] Co., Ltd. (Zhuhai), general manager, for the friends and colleagues of Zhao Guangmin years
For more information see Mr. Zhao Guangmin Memorial page [Aug 29, 2007] of eMedia Asia Global resources. Note from there that he entered the university in 1977 which is the first year of entry after the Cultural Revolution when only exceptional people were able to enter the universities. More explanation about that phenomenon see in Yoshida in China: Cultural rev survivors leap forward [EE Times, Oct 1, 2012]
Allwinner’s close cooperation with ARM Holdings started with Victory Technology selects ARM processor for ultra-low-power high-definition network video applications [joint press release available only in Chineese on eetrend.com and elsewhere, Feb 9, 2010]
ARM926EJ-S processor to achieve high-definition video processing while reducing power consumption by up to 50%.
Zhuhai Victory Technology Co., Ltd. (referred Victory Technology) and ARM [(LSE: ARM); (Nasdaq: ARMH)] today jointly announced: Victory Technology licensed the ARM926EJ-S ™ processor for its IC design for ultra-low-power high-definition network video applications. These applications include: home Internet video streaming via the Internet, cable television and wireless network high-definition video player and other network video equipment.applications include: home video streaming via the Internet, cable television and wireless network high-definition video player and other video devices on the network.
Victory CEO Zhang Jianhui said: “In addition to the well known high-performance and low-power characteristics, another important feature of the ARM ® processors is versatility, they can bring better scalability, reducing the workload and difficulty of development, and shorten time to market. These features help us design IC products for the fast-changing Internet video applications, and are very important. ARM has always spared no effort to promote innovation through its strong product planning, which provides an opportunity for us to further cooperation in the future. The resources required to design the system is very rich around the ARM ecosystem, and we are very confident in each other’s cooperation capability that it will be successful.”
With more and more Chinese consumers having broadband access at home or on the move, China’s Internet video applications market is developing very rapidly. With rich experience in the field of video processing technology, as well as a deep understanding of the market, combined with ARM’s top high-performance, low-power processor technology Victory Technology has the capability to meet the standards and local consumer demand to develop IC products for the high-definition Internet video equipment. Through the use of excellent performance at low power consumption of ARM926EJ-S processor as well as Victory Technology’s ultra-low-power design techniques, the company hopes that its new chip can achieve 50% of energy consumption savings versus the similar products on the market, without sacrificing performance needed for HD video streaming on the Internet.
…
Brief English content appearing about the same on Sept 26, 2012:
Gan Lin, Party Secretary of Zhuhai, Visited Allwinner Technology
Gan Lin, Party Secretary of Zhuhai, accompanied by several other leaders, visited Allwinner Technology on June 10, 2011.
During the visit, Gan gave Allwinner Technology credit for its independent R&D and spirit of leadership in technology. He pointed out that Allwinner Technology should continue embracing innovation to boost its competitive edge and accelerate the development of strategic emerging industry.
A10 won “The Most Promising Award” on the Sixth “China Chip” Ceremony [Allwinner press release, in Chinese: Dec 31, 2011, reproduced in English: Sept 26, 2011]
Allwinner Technology A10, xPad SoC of High Integration and High Definition, has won “The Most Promising Award” in China IC Industry Promotion Conference 2011, also the sixth “China chip” ceremony held in Jinan on December 16th.
The China Chip hosted by the Software and Integrate Circuit Promotion center (CSIP) of Information Industry Ministry, is a rather influential ceremony among domestic IC enterprises, experts, as well as other manufacturers involved in the industry chain. More than three hundreds enterprise representatives attended this ceremony.
On the basis of striking video codec technology, DVFS, multi-core multiplexing technology, and advanced 55nm process, A10 outruns other competing solutions in its high integration, and outstanding multimedia and network processing capability. It supports 3D video playback, 2160P ultra-HD video decoding and 1080P HD H.264 video encoding, multi-screen, and integrates full-format audio codec engine, rich A/V outputs such as HDMI, LVDS, VGA, TVOUT, etc, and memory interfaces such as DDR3, DDR2, LPDDR1, NAND flash, etc, plus its edge in BOM and power consumption, it becomes one of the most favored solutions after marketing for several months, and is honored “the most promising” solutions in this ceremony.
Zhang Jianhui, General Manager of Allwinner Technology, said that this award bears testimony to the efforts Allwinner has made in the past few years, and will definitely encourage Allwinner to come up with better solutions to meet customer demand, and carry forward the IC industry.
Allwinner Technology and ARM working together to get to market quicker [ARM’s Multimedia blog, June 19, 2012 – in Chinese on Oct 4, 2012]
The dynamics of the mobile device industry can be seen in the rise of tablets and in particular the growth in Android based tablets. This new form factor has grown to an expected 100M shipping volume in 2012 with this being projected to exceed 200M by 2016 – when Android tablet shipments is expected to be over 50% (Source: IDC). This new form factor and pace of change have opened up opportunities for new companies to offer specific System on Chip (SoC) businesses a chance to address this market. Allwinner Technology Co., Ltd.is one of these. Over the last 12 months Allwinner Technology has become one of the major China Android tablet SoC chip vendors, with many of the Android tablet OEM system makers adopting our chip and system solution. A key
industry analyst in China expects 40M Android tablets to ship in the China grey market in 2012, and it is expected that 60% of the share will be from Allwinner Technology.
This rapid time to market has been achievable through the close working relationship and usage of ARM Intellectual Property (IP). Allwinner Technology uses a combination of the ARM CortexTM-A8 and ARM MaliTM-400 MP. This combination enables Allwinner Technology to balance the required performance needs for tablet applications with the power consumption boundaries of a mobile device. By working with ARM for both CPU and GPU elements Allwinner Technology have been able to maximize the benefits of both high performance with low power consumption that ARMs years of knowledge in the mobile device market brings to new entrants to the market.
Allwinner Technology has gone from the licensing [in April 2011] of the Mali-400 to production silicon in 7 months . This speed of execution has been enabled by the close linkage between the CPU and GPU from a design perspective, the RVDS [toolchain, the legacy solution for software development on older ARM processors replaced by the new ARM Development Studio 5, DS-5] and ARM DS-5TM toolchain [comprises tools such as the best-in-class ARM C/C++ Compiler, a powerful Linux/Android™/RTOS-aware debugger, the ARM Streamline™ system-wide performance analyzer and real-time system model simulators, all conveniently packaged in a user friendly integrated development environment (IDE) based on the Eclipse] and the out-the-box quality software drivers which are all supported by localised support teams. All these elements combined have enabled Allwinner Technology to move swifter and in an agile way to address the needs of this market and we look forward to working with ARM going forward.
Guest Partner Blogger:
Jack Lee, CMO, Allwinner Technology Co., Ltd.
ARM gaining traction in GPU IP market [DIGITIMES, June 22, 2012]
… ARM has expanded its GPU licensee base at a fast pace, according to Kevin Smith, VP of strategic marketing at the firm’s media processing division. Taking the China market as an example, ARM’s Mali GPUs are currently shipping in over 70% of graphics-enabled digital TVs, 50% of Android tablet PCs and 20% of Android phones, said Smith.
ARM’s partners are forecast to ship more than 100 million Mali GPUs in 2012, up over 100% from 2011 levels, Smith indicated. The anticipated shipment rise – driven by brisk demand for Android smartphones and tablets, and China’s growing smart-TV market – will boost ARM’s presence significantly in the global GPU-IP market this year, Smith added.
ARM’s Mali GPUs are targeted at smart TVs, handsets and tablets, which require high-definition graphics and higher picture fluency, Smith stated. The product line has been enhanced to meet various customer needs such as high-resolution images, multi-game offerings and energy saving, Smith said.
Combining with ARM’s CPU platform, the Mali GPU technology comes with additional features such as power efficiency, Smith noted. The combination is able to generate a complete multi-IP solution, Smith said.
In addition, Smith indicated that ARM’s solutions are able to help system customers speed up time-to-market. For example, it took less than half a year for both China-based AllWinner Technology and Rockchip Electronics to launch their integrated CPU-GPU SoC solutions targeting the local tablet PC market, Smith said.
…
New ARM DS-5 v5.9 Toolchain Provides Developers With an Integrated Processor and GPU Software Optimization Platform For Mobile Gaming [ARM press release, March 5, 2012]
ARM today released the latest edition of the ARM Development Studio 5 (DS-5™ v5.9) toolchain with additional support for graphics analysis on ARM Mali Graphics Processing Units (GPUs). The toolchain can be downloaded by developers today, enabling them to achieve integrated optimization across the whole system, including both the applications processor and GPU. The ARM DS-5 v5.9 toolchain provides significant benefits to semiconductor suppliers and OEMs, as well as mobile application and game developers, by enabling improved system visibility and decreased time-to-market. In particular, the ARM Streamline™ Performance Analyzer, within the DS-5 toolchain, allows developers to design more interactive interfaces and immersive game play for end users whilst extending battery life. This will enable next generation user experiences for use on smartphones, tablets, smart-TVs and set-top boxes.
The launch of the updated toolchain addresses the increasing demand for high-performance graphics development. Such advanced visual computing capabilities will deliver next generation smartphone and tablet applications where console-like gaming graphics, 3D User Interfaces (UI) and Augmented Reality (AR) will be the norm. Multicore systems, such as these, benefit from optimization of intensive tasks where integrated applications processor, GPU and memory subsystem designs can be configured to achieve the highest levels of performance and energy-efficiency.
By using the ARM DS-5 v5.9 toolchain, developers can quickly and easily locate system performance bottlenecks across the Cortex processors, Mali GPUs and System IP, enabling the creation of faster applications and accelerating the software development cycle.
… [additional information: Developing Top Performing Graphics Applications for Android Made Easy [ARM’s Software Enablement blog, March 7, 2012] and
ARM Launches Free Toolkit For Android Application Developer Community [ARM press release of the DS-5 Community Edition, Nov 28, 2011]
]
The first Allwinner A10 tablets came to the market from a number of vendors in November 2011. See just these reports by Micdigi from China:
- SurperPad With Allwinner A10 Trend—LingyunF1 [from Lingyun Technology] [Nov 22, 2011]
- MOMO8 [from Ployer] Business Version Based on Allwinner A10 [Nov 24, 2011]
- L-Y F1 [from Shenzhen Lingyun, with IPS screen] Based On Allwinner A10 [Nov 28, 2011]
In December more tablets of that kind came to the Chinese market as Micdigi reported:
The tablet based on Allwinner A10 processor and 5-point touch capacitive screen [Dec 7, 2011]
Recently, Allwinner tablet PCs are so popular. 7-inch capacitive screen tablet based on Allwinner [Cortex-]A8 solution sells for only $80.
Now I will introduce a tablet based on Allwinner A10 from Shenzhen HongYuXing.
Based on Allwinner A10 processor, Q780 is launched [Dec 8, 2011]
Allwinner A10 has so good cost performance that it is the most suitable chip for entry level tablet PCs.
Q780 from Shenzhen Xlong is launched.
Allwinner A10 tablet—PC741 [from Shenzhen Inote] [Dec 12, 2011]
Now the tablet chips are like a hundred flowers in bloom, like ten thousand horses galloping ahead. Allwinner A10 appeared late in the market but they came back. At present most of the tablet PCs from China are based on Allwinner A10 chips.
Q701 based on Allwinner A10 [Dec 16, 2011]
With cheap price and powerful performance for video playback, Allwinner A10 processor is popular in the world.
Q701 is introduced Allwinner A10 processor.
Then the events unfolded as follows:
- The tablet PC based on Allwinner A10 sells for about $65 [Jan 9, 2012]
- Tablet chips competition analysis in 2012 [Feb 28, 2012]
Based on high cost performance, Allwinner A10 has good sales after the Spring Festival. The chips with high cost performance are welcome.
AMLogic based on A9 core is a high-end chip, which is introduced by SONY and Philips.
RockChip chips became cheaper and cheaper since Allwinner released A10.
As the first chip of Allwinner, A10 is released with cheap price, which makes it has good sales. Allwinner is a famous company in MP3 times so that Allwinner has a strong customer base.
In addition, A10 has few bugs since it is released. The performance of other chips is not stable in the beginning, such as RK2808 and VIA8505.
The agents who have ordered VIA chips go to order Allwinner A10. VIA will release VIA8850 next month [but mass production just started in June, see later] which is based on A9 core. The performance is not different from A10. It means that it does not have any advantage.
VIA8850 will be cheaper than Allwinner A10. Allwinner will release A13 to compete with VIA8850 so that VIA will get in a difficult position. [Was more expensive the the A13 when mass production started in June, see later]
MTK will release MTK6575 which is the upgraded version of MTK6573, based on dual-core, 1GHz frequency and A9 core. The chip with excellent call function is mainly introduced by smart phone. It is also suitable for tablet PCs.
AMLogic will release AMLogic M6 and RockChip will release RK30XX. They are all dual-core chips.
[for RK30XX and the earlier RK29XX and RK28XX see MWC 2012: Fuzhou Rockchip Electronics [this same ‘Experiencing the Cloud’ blog, March 13, 2012] where it is stated: Samples of the Rockchip RK30xx platform will be available in March 2012]
At present, there are few new products in the market, but many new products will be released in May.
- The Allwinner A10 PCBA from Crownho sells for about $27 [March 7, 2012]
As Allwinner A10 solution is so cheap, it is introduced by most of Chinese tablet PCs.
The Allwinner A10 PCBA from Shenzhen Crownho sells for about $27.
With this PCBA, the cost price of the tablet will be less than $64, such as DA701 [tablet] based on capacitive screen, which sells for about $63.5.
- 7-inch Allwinner A10 tablet [from Shenzhen HongYuXing] sells for about $59 [March 10, 2012]
- 7-inch tablet [from Shenzhen Hystom] with [Cortex-]A9 core [inside its Amlogic 8726 SoC] and capacitive screen sells for $54 [March 10, 2012]
INSERT ABOUT THE CURRENT AND FUTURE SoC COMPETITION
Competitive SoCs from Chinese vendors that were available in March’12 or came soon after March’12:
Amlogic 8726-MX (dual core), 8726-M3; Rockchip RK3066(dual core), RK2918
Source: http://www.eeworld.com.cn/xfdz/2012/0725/article_14042.html
(A10 $7, A13 $5)![]()
Among those competitors the Rockchip RK3066 (dual core) became a market leader in China on its own as was already shown in the very beginning by the example of Window N90 Dual Core II 2 (16G) leading the dual core market in China:
No surprise therefore that this is also a kind of leading product on the global market as shown by Merimobiles:
List Price: $399.99 Your Price: $214.99 (with shipping)
First Review – Window N90 Dual Core II 2 – RK3066 IPS – Purchase at: Merimobiles.com [MrTasselhof YouTube channel, May 24, 2012]
while the Benchmarks Review – Window N90 Dual Core II 2 – RK3066 IPS – Purchase at: Merimobiles.com [MrTasselhof YouTube channel, May 24, 2012] is:
and the global dual-core competition represented by Merimobiles as follows:

Note that for the 1.5GHz Windows N70 (as opposed to the above 1.6GHz version available globally) the AnTuTu v2.4 benchmark on the PConline is on the right (see also: AnTuTu Benchmark):
Since a multiple core Cortex ARM based Allwinner SoC will come just after those SoCs (“processors” – as named wrongly) shown in the table above, given the credentials of Allwinner presented in this post I dare to predict that the next-generation in the “A series” SoCs from Allwinner will beat the Rockchip RK3066 (or RK30XX in general) and others. There was just one concrete rumor recently: Ampe Allwinner Cortex-A7 Quad-core Tablet is Coming [ChinaEshops.com, July 12, 2012]
Rockchip and AMLogic dual-core tablet come out to snatch the tablet PC market while AllWinner dual-core tablet keeps in silence. Although Allwinner A10 & A13 still hot in the middle-low end market. Rockchip RK3066 and AMLogic AML8726-MX has already listed for two months from the beginning of May. Now these two chip still mainly occupy the china dual-core tablet PC market. Freescale’s quad-core tablet PCs begin to launch, even Tegra3 quad-core. Obviously, allwinner may it is late for launch dual-core, but it doesn’t mean that Allwinner will give up dual-core tablet. Allwinner will launch Quad-core chips in August. Latest news report that AMPE will launch a new 10.1 Inch IPS Tablet PC equipped with allwinner quad-core processor.
According to latest report the allwinner quad-core is using ARM Cortex-A7 structure. …
max says: August 8, 2012 at 8:43 pm
any news on this.chinaeshops says: August 31, 2012 at 5:11 pm
Sorry, it is coming soon.
As a matter of fact the Cortex-A7 was meant to be a companion ship for the Cortex-A15, all targeted for 28nm TSMC technology which is in extremely tighty supply at least till the end of the year. On the Cortex-A7 Processor—Related Products page we can find (among other things) that:
Physical IP
ARM Physical IP Platforms deliver process optimized IP, for best-in-class implementations of the Cortex-A7 processor at 40nm and below. A set of high performance Processor Optimization Packs (POPs) containing advanced ARM Physical IP for 28nm technologies to enable rapid development of leadership physical implementation supports the Cortex-A7 processor. ARM is also working early to assure a roadmap to 20nm optimizations. Optimization packs support ARM’s strategy of offering specifically targeted Physical IP to enable Partners to achieve tuned implementations of ARM cores. ARM is uniquely able to design the optimization packs in parallel with the Cortex-A7 MPCore processor architecture, enabling the processor and physical IP combination to deliver workstation class performance in a mobile power envelope while facilitating rapid time-to-market.
But according to the later ARM Expands Processor Optimization Pack Solutions for TSMC 40nm and 28nm Process Variants [ARM press release, April 16, 2012] Cortex-A7 PoP became available for both “TSMC 40LP” and “TSMC 40 LP high speed options” type of process technologies (where LP stands for “Low Power”). This practically means that Allwinner can indeed deliver by this time its next-gen SoC at 40nm.
Breaking news:
1. Quad-core tablets large chaos department: Allwinner quad-wide prototype will debut in November [Bolopad.com, Oct 3, 2012]
Before beginning I have to say to you: “I’m sorry”. Because last week we happily told everyone interested in quad-core prototype that it appeared in September, and it is not far from the days of mass production. But yesterday your editor suddenly received a mysterious call to be informed that the Allwinner quad-core prototype can’t come in September, it is estimated to be out in November to meet with you. I really wanted OOXX to be cursed to death (thought better of course).
…
2. Exclusive: Allwinner quad-core processors code-named A15X coming soon [Bolopad.com, Sept 18, 2012]
…
All right, now that the product finally appeared, we at Bolopad are also excited and highly interested in the quad-core chip code-named A15X (don’t get me wrong, this A15X has nothing to do with
AppleA15 [rather Cortex A15 wrongly percieved by many to be in the A6 SoC of the iPhone 5]). Now the related PCBA layout began to take shape, the chip samples came out and so on. Last reportedly bounced because the Allwinner quad-core is dependent on [Cortex] A7 architecture build, but as 40nm and 32nm was short of the desired effect, the 28nm tapeout eventually came in to achieve the desired results.…
END OF THE INSERT ABOUT THE CURRENT AND FUTURE SoC COMPETITION
NOW BACK TO THE CADENCE OF
ALLWINNER A10-RELATED EVENTS & INFORMATION:
An even bigger market push started when Allwinner A10 with the Android 4.0.3 Software Development Kit was officially launched on March 10, 2012. From the press release:
TSMC’s 55 nanometer “half generation” derivative of the 65-nanometer process technology directly miniatures 90%, including input/output and analog circuits, for customer provides competitive advantage with single die cost significantly reduced, while can also save power consumption by 8% at the same speed of operation.
As it was reported later in Taiwan: Allwinner Technology Introduces New SoC Platform on TSMC 55nm Process [CENS, March 29, 2012]
Allwinner Technology Co., Ltd., a leading supplier of high-definition media semiconductor solutions headquartered in
Shanghai[Zhuhai, as the contact address is: Block 1 Software Park, Zhuhai City, Guangdong Province, B6, four], recently released a new system-on-chip (SoC) platform based on Taiwan Semiconductor Manufacturing Co.’s (TSMC’s) 55nm process technology.The platform, codenamed A10, employs advanced SoC design technology to integrate central processing unit, graphic processing unit, high-definition multi-frame video engine, 3D multi-screen engine, and high-speed video interface module on a chip.
Equipped with Allwinner’s Android 4.0.3 Software Development Kit, A10 consumes fewer energy to achieve higher computing efficiency on mobile devices.
Using TSMC’s 55nm process technology, A10 is able to deliver quality dynamic voltage frequency scaling (DVFS) performance and brand new video management capability on mobile computing devices, and extend battery lifespan of the devices.
TSMC’s 55nm process shrinks geometry of integrated circuits, including I/O, on chips by 90% as compared with chips with 65nm process, considerably cutting down cost of every single chip and saving electricity on a chip by 8% relative to competing chips.
Allwinner General Manager Zhang Jianghui pointed out that TSMC has been a reliable partner supporting Allwinner in product production, quality and lead time.
Allwinner Technology-A10 [product page, April 13, 2012] 
In A10 Allwinner used 55nm technology, the integrated chip has four times full HD [i.e. the 2160p “Quad HD”] video decoding technology, smart power management system CoolFlex, HD multi-screen display processing and output, efficient and high-speed system architecture, mixed analog-digital high-speed signal design and integration of advanced technology, and integrated, smart power balance, and more items of leading technology. A10 is mainly used in tablet PCs, high-definition players, smart phones, network set-top boxes, smart TV machines.
With A10, Allwinner Technology will drive SoC into a brand new era of connected Smart HD which can enhance the application of connected HD SoC as well as user experience of electronic multimedia products. A10 is offering MULTI-CHANNEL decoding and 1080p encoding, MULTI-CHANNEL display with independently developed advanced frame, as well as MULTI-CHANNEL Analog TV Decoder Interfaces. What’s more, power consumption can be much lower than its competitors during 1080p decoding process.
Features
VPU
– HD Video Decoding (Super HD 2160P/3D Film)
– Support all popular video formats, including VP8, AVS, H. 264 MVC, VC-1, MPEG-1/2/4, …
– HD Video Encoding (H.264 High Profile) [datasheet: 1080p@60fps]
– Support encoding in H.264 format
[datasheet: 720p@100fps]
Rich Connectivity
– USB2.0 Port
– CSI, TS
– SD Card3.0
– 10/100 Ethernet controller
– CAN Bus, Built-in SATA2.0 Interface
– I2S, SPDIF and AC97 audio interfaces
– PS2 , SPI , TWI and UART
DPU
– MULTI-CHANNEL HD displays
– Built-in HDMI
– YPbPr, CVBS, VGA
– LCD interfaces: CPU, RGB, LVDS up to Full HD
Boot Devices
– NAND FLASH
– SPI NOR FLASH
– SD Card
– USB
Powerful Acceleration
– Graphic( 2D/3D)
– VPU(Super HD)
– APU
– E-reader
Benefits
High-performance processing and multimedia capabilities
Outstanding Super HD 2160p/3D Film video decoder makes bunds of creative application possible
High level of integration enables you to launch products in less time, with less effort and at a lower total system cost
Further development Kits, including OS BSP( Android2.3.4, Linux2.6,WinCE6.0)
Typical Application
Pad
Integrated Smart TV
Internet Player
Vehicle Multimedia Center
HDMI Dongle
Projector
2160p [Wikipedia, excerpted on Sept 18, 2012]
2160p is the shorthand name for 4K UHDTV, a video mode planned to appear in future HDTV products.[1] It has a resolution of 3840×2160 (8.3 megapixels in the 16:9 aspect ratio) and is one of the levels of Ultra-high-definition television.[2][3][4][5] The number 2160 stands for 2,160 lines of vertical display resolution, while the letter p stands for progressive scan or non-interlaced. In a progressive image, the lines of resolution of the image go from the top of the screen to the bottom.
2160p is also called “Quad HD” since it displays four times the number of pixels of the highest HDTV standard resolution, 1080p (a standard which is also known as “Full HD“). The only planned higher definition format for television is 8K UHDTV.
Phillips has made a 3D Quad HDTV with a native resolution of 2160p.[6]
In June 2012, Toshiba launched the world’s first 3D TV without glasses with 9 parallax images which passed through special lenticular lenses to deliver 3D effect with glasses-free on a 55″ Toshiba Regza RZ1 Quad Full HD TV, 3840x2160p resolution.[7] Due to delivered 9 parallax images at the same time, so the 3D image will only be seen as HD 720p (1280×720) —> 3840×2160 = 9x1280x720.
Sony plans Quad HD TV to launch between 2012 and 2020. Holographic Versatile Discs and Blu-ray Disc may be used for 2160p video, since it theoretically has a storage capacity of up to 10 Terabytes.[citation needed]
The AllWinner A10 System on Chip Specifications [the alternative allwinner.com product page, July 20, 2012]
Overview
Using 55nm technology, Allwinner Technology’s A10 SoC chip integrates full HD video decoding technology, multi-screen display processing, various analog-digital I/O interfaces, and a high-speed efficient ARM core with intelligent power management. The A10 is used in a number of consumer products such as tablet PCs, high-definition players, smart phones, network set-top boxes and mobile media hubs but with the availability of excellent development tools, the A10 is positioned to expand that list.
Key Features
VPU
• HD Video Decoding (Super HD 2160P/3D Film)
Support all popular video formats, including VP8, AVS, H. 264 MVC ,VC-1, MPEG-1, 2,4, …
• HD Video Encoding (H.264 High Profile)
Support encoding in H.264 format
1080p @ 60 fps
720p @ 100 fpsDPU
MULTI-CHANNEL of HD displays
Built-in HDMI v1.3/v1.4
YPbPr, CVBS,VGA
LCD interfaces: CPU, RGB, LVDS up to Full HDRich Connectivity
• THREE USB2.0 Port (OTG/HOST/UTI)
UTI Digital TV(TS over USB)
• CSI(2), TS(2)
• SD Card3.0(4)
• 10/100 Ethernet controller
• CAN Bus, Built-in SATA2.0 Interface
• I2S, SPDIF and AC97 audio interfaces
• PS2 (2), SPI (4), TWI (3) and UART (8)Boot Devices
• On board NAND FLASH
• SPI NOR FLASH
• SD Card
• USBPowerful Acceleration
• Graphic( 2D/3D, Mali400 MP)
• VPU(Super HD 2160P/3D)
• APU
• E-reader
Support text in EPUB, PDF, FB2, PDB, CHM, HTML, TXT
Support coding format in ANSI/ASCII, UTF-8, UTF16-BE, UTF16-LE, GB2312, EUC-KR, SHIFT-JIS, Windows-1250/1251, Support Chinese, English, French, Italian, Spanish, Dutch, Russian, Japanese, and KoreaCPU/GPU
• ARM Cortex-A8 at 1.2 Ghz without cooling
• 32KB I-Cache/32KB D-Cache
•256KB L2 Cache
• MALI 400 MP GPU
• ARM NEON general-purpose SIMD engineMemory
•DDR3 SDRAM, 32-bit 16G bits Memory Capacity
• SLC/MLC/TLC/DDR NAND
8 flash chips, ECC 64bits
Memory Capacity up to 64GB/chipSecurity
• Trustzone Technology and DRM
• Supports DES, 3DES AES encryption/decryption
• Support SHA-1, MD5 message digest
• hardware 64-bit random generator
• 128-bit EFUSE chip IDPMU
• Flexible built-in power options
• Intelligent Power Select allocates power safely and transparently among USB, external AC adapter, Li-battery and application loads
• adaptive and USB-compatible PWM chargerBenefits
• Very high performance processing and multimedia capabilities
• Hardware acceleration enables very low power consumption for HD video and graphics
• High level of integration makes you can launch product in less time, with less effort and at a lower total system cost
• Optimized Standard Operation Procedure (SOP) creates high First Pass Yield (FPY) in mass production
• OS Board Support Packages for Android, Linux and WinCE
NEW Allwinner Technology-A10s [product page, Sept 26, 2012]

Allwinner Tech has expanded its processor lineup to include a new ARM Cortex-A8 chip A10s which is even more competitive for HDMI Dongle with higher performance (ManyCore Structure), better compatibility of Streaming Video Protocol/local multimedia formats, lower power consumption, and lower total system cost. As the brains of Android 4.0.4, A10s makes multitasking smoother, apps loading more quickly, and anything you use responds instantly. What’s more important, A10s is available in BGA336 package with Audio Codec, and HDMI integrated.
Features
CPU / GPU
– ARM Cortex-A8 Core
– 32KB D-Cache / 32KB I-Cache
– 256KB L2 Cache
– Mali-400 3-D EngineVPU
– HD Video Decoding
– 1920 * 1080 @ 30fps
– Support VP8/6, H.264/H.263, WMV9/VC-1, WMV7/8, MPEG-4/2/1, Xvid, etc
– HD Video Encoding
– Support encoding in H.264 format up to 1920 * 1080 @ 30fpsHDMI
– HDMI 1.4
– 1080P OutputBoot Devices
– NAND Flash
– SPI Nor Flash
– SD Card
– USBUltra-low System Power Consumption
– 15 ~ 20% lower than competitors
DPU
– LCD Interfaces: CPU, RGBMemory
– DDR2/DDR3: Up to 533MHz
– 16 bits/32 bits Data Bus
– MLC / TLC / SLC / EF-NAND
– ECC 64-bit
– Support NAND of 4xnm, 3xnm, 2xnm …
– Support NADN of Samsung, Toshiba, Hynix …Peripherals
– USB2.0 OTG, USB2.0 HOST (OHCI / EHCI)
– SD Card V.3.0, eMMC V.4.2
– SPI, TWI and UART
– TS Port
– EMAC
– CSI
– IISAudio Codec
– integrated Audio Codec
– MIC/FM/LINEIN InputPowerful Acceleration
– Graphic (3D, Mali400 MP)
– VPU (1080P)
– APUPackage
– BGA336, 14mm*14mmBenefits
Optimum multimedia and processing abilities
Lower power consumption of HD videos and graphics due to hardware acceleration
Lower power consumption of HD videos and graphics due to hardware acceleration
Total solution, including OS BSP (Android 4.0.4 UP)
Typical application
And A10s is definitely coming to the market as per this [Sept, 21, 2012] discussion thread
Today I found a seller on on a website selling new model of Android TV stick, it claims adopting new A10S chip & support DLNA function that is just what I want, is that a good deal?
Allwinner Technology-A13 [product page, April 13, 2012]
Allwinner Technology has expanded its processor lineup to include a new ARM Cortex-A8 chip A13 which is even more competitive for Android tablets with higher performance (ManyCore Lite), lower power consumption, and lower total system cost. As the brains of Android 4.0. 3, A13 makes multitasking smoother, apps loading more quickly, and anything you touch responds instantly. What’s more important, A13 is available in eLQFP176 package with Audio Codec, and 2 Points R-TP integrated.
Features
CPU / GPU
– ARM Cortex-A8 Core
– 32KB D-Cache / 32KB I-Cache
– 256KB L2 Cache
– Mali-400 3-D Engine
VPU
– HD Video Decoding
– 1920 * 1080 @ 30fps
– Support H.264, H.263, VC1, Mpeg1/2/4, Divx 3/4/5/6, Xvid, VP6 / 8, AVS etc
– HD Video Encoding
– Support encoding in H.264 format up to 1920 * 1080 @ 30fps
Boot Devices
– NAND Flash
– SPI Nor Flash
– SD Card
– USBUltra-low System Power Consumption
– 15 ~ 20% lower than competitors
– Smart Backlight: auto adjust backlight acc. to the image display
DPU
– LCD Interfaces: CPU, RGBMemory
– DDR2/DDR3: Up to 533MHz
– 16 bits Data Bus
– Memory capacity up to 512MB
– MLC / TLC / SLC / EF-NAND
– 2 flash chips, ECC 64-bit
– Support NAND of 5xnm, 4xnm, 3xnm, 2xnm …
– Support NADN of Samsung, Toshiba, Hynix …Peripherals
– USB2.0 OTG, USB2.0 HOST (OHCI / EHCI)
– SD Card V.3.0, eMMC V.4.2
– SPI, TWI and UART
– integrated Audio Codec
– CSIR-TP Controller
– 4-wire resistive TP interface
– 2 points and gesture detectionPowerful Acceleration
– Graphic (3D, Mali400 MP)
– VPU (1080P)
– APU
– E-ReaderPackage
– eLQFP176Benefits
Optimum multimedia and processing abilities
Lower power consumption of HD videos and graphics due to hardware acceleration
Much faster, easier and cost efficient product launch due to the high integration
Further development kits, including OS BSP (Android 4.0.3 UP)
Typical application
Note that Allwinner is operating in a world-class environment as you could easily see from the below picture of their office building taken from their brief intro page [April 13, 2012]:
全志科技 Allwinner Technology has been committed to the IC design industry, is one of a handful of domestic enterprise engaged in system-level ultra-large-scale mixed analog-digital chip design the SoC and intelligent power management. Our main products are intelligent terminal application processor chip, smart power management chip.
With excellent R & D team and technical strength, the company’s products to achieve industry-leading levels of high-definition video codec, a high level of integration, low power consumption, rapid market expansion, has become a domestic Tablet PC application processor chip, high-definition player application processor chip as well as one of the mainstream supplier of intelligent power management chip market, has a clear lead.
New content replacing the above on Sept 26, 2012:
Allwinner Technology, one of the domestic companies in integrated circuit design industry, is dedicated to the design of mixed analog-digital VLSI SoC and smart power management SoC.
Depending on its excellent R&D capability, Allwinner Technology has
beenled the industry in terms of its HD video codec, high integration and low power consumption, etc. As a result, it is gaining more market share, and has become one of the domestic mainstream suppliers of tablet processors, HD player processors, as well as smart power management SoC.
Note therefore that Allwinner’s roots are in the video (multimedia) related chips as also shown by their latest pre-A10 SoC product (introduced in August’11) for that market, the F1C100 (another SoC, the more focussed F20 introduced in August’11 for portable video players, living room computers etc. has even better, 1080p full HD decode technology; as well as the very latest F10 introduced in April’12 for HD players and lower end –relative to A10—car multimedia), described on its product page as:
With advanced independently developed video decoding technique, F1C100 becomes the ONLY processor in the market that can decode video in all formats based on ONLY 4MB NOR FLASH and 16MB SDRAM. In the mass production of final products, NOR bootloader burning is much easier and faster compared with NAND FLAHS ‘. Last but not least, F1C100 supports two-point touch which can improve the using experience of end-users.
New F10 content replacing the above on Sept 26, 2012:
The F10 is an advanced HD video CODEC processor with unparalleled competitive edges in integration, video compatibility and cost efficiency, which have been widely verified by mass production of dozens of applications. End-users are overwhelmed by its capability to serve banquet for the eyes.
Typical Application
F1C100’s datasheet [initial version, March 31, 2011] is providing the following, more precise description:
and for the video engine of their own design in particular:
…
With this intellectual property they were able to upscale to a market leading 2160p functionality in the A10 (vs. the 720p in the above F1C100) while using a less upscaled IP for the 1080p in A13. So they can even have a scaleable video engine IP of their own.
In the A10 datasheet or here [initial version, Aug 22, 2011] the following description is giving some hint regarding the company’s strategic intent to remain in the forefront of video acceleration technology:
It is quite notable that neither on the product page nor in this datasheet Allwinner is giving further information about their video engine. Even in the functional block diagram of datasheet the video engine (VE) is simple put into a central box with Cartex-A8 and the Mali GPU:
The only available information is the CedarX wiki page [July 14 – Sept 16, 2012] on linux-sunxi wiki:
CedarX is Allwinner’s multimedia decoding technology. It is composed of several parts, including:
- A hardware video decoding unit
- Proprietary libraries to communicate with the hardware unit
- Glue code to use those libraries on an actual system with video playback capabilities (e.g. Android)
Benefits
Efficient use of system resources when decoding multimedia.
Allows small ARM systems to playback high resolution/bitrate multimedia content, which wouldn’t be possible using software-only decoding.
Disadvantages
The proprietary libraries have no clear usage license.
The android glue code is implemented as a “media player” (parallel to stagefright) instead of as OMX components.
This media player has limitations when it comes to playing back content pointed to by Android URIs and some web-based content.
There is no glue code for any other multimedia frameworks on GNU/Linux systems. The use of OMX would’ve rendered this a non-issue, with existing projects like GstOpenMAX.
Integration
Reverse Engineering
On June 15 2012 Iain Bullard started reverse engineering the proprietary libraries.
open_cdxalloc as an free reimplementation of Allwinner‘s libcederxalloc.a.
CedarXWrapper as a LD_PRELOADed wrapper to help understanding the proprietary libraries.
CedarXPlayerTest as a basic player to use when testing.
Some leading tablets (single core) as of April, 2012 per Merimobiles (with an office in Canada)
(Haipad I7 is now $99, the price of Ployer Momo9 is unchanged, see: HAIPAD I7 IPS 1024*600 Multitouch Screen with Android 4.0 Dual Camera 1080P HDMI [Merimobiles.com, Sept 10, 2012], Haipad’s latest 7-inch ICS tablet Haipad i7 gets FCC clearance [Merimobiles blog, March 6, 2012], from Shenzhen Haina Electronic Co., Ltd “founded in 2003 as a high-tech company specializing in laptops and other digital mobile devices”)

The Allwinner A10 based tablets came to the global market from quite a number of vendors as shown by the following table (=50) compiled from two related threads from SlateDroid.com (note that global arrival of A10-based product started in Jan’12):
Comprehensive List of Allwinner
|
„2nd generation” A10 tablets (with 1 GB or more):Ainol: Novo Elf, Novo AuroraBmorn V11 ExtremeAmpe A90Gemei: G9, Gemei G2Eken A90Ployer Momo11 Birdnewman P81Onda: Vi40 (8g, 16g, 32g/ 10” screen), Vi10 elite, 1GB Ram, 8 GB Flash, 1024×600 LCDTeclast: P85 (8″ screen), A10Later/OTHER devices (not verified, just put on the thread, THOSE WITH LINKS are from the Adding new Allwinner A10 CPU Devices THREAD [Jan 19-Sept 17, 2012]):Ampe: A80, A85, A10Andtai FG-A97Benyi M8Coby Kryos 7042Gemei G3Haipad i7HKC M701ICOO: D50 deluxe edition, D80WiNote: V4, A8, A8-2, A-8-3Kliver MB9703MyAudio 908ANaviatec MD710Onda Vi40 FlagshipPolaroid PMID701CShimaro M5Sinvigo M7Sysbay s-mp99Treq A10CTrio Stealth Pro 7VISTURE 3Zonge M90Yarvik Xerios TAB464Xtouch X716Woxter Tablet PC 97 |
Note that there were only couple of Chinese vendors with multiple Allwinner A10-based tablet offerings, namely: Ainol, Ampe, Bmorn, Eken, Gemei, ICOO, iNote, Onda, Ployer, Sanei, Teclast (i.e. just 11 out of 50).
There is a much shorter and later started list of Allwinner A13-based tablets on SlateDroid.com, see: List of Allwinner A13 CPU Devices [from Aug 1, 2012]
Then from April to August there were the following events unfolding in China as per Micdigi reports:
- Allwinner A13 tablet PCs begin to appear in market [April 28, 2012]:
A13 is cheaper than A10 with only 512M memory and 800×600 resolution but without Bluetooth and HDMI. Allwinner A13 can be only used for 7-inch tablet PC and 8-inch tablet PC, it does not support 10-inch tablet PC.
Contrasted with VIA8850 and RK2906, A13 with low cost will have strong market competitive capability. The price of 7-inch tablet with A13 and capacitive screen will be less than $48 in May.
- The [7-inch] tablet PC [from Shenzhen Haipad] based on A13 solution sells for $47.5 [May 8, 2012]
- The [7-inch] A10 tablet PC [from Shenzhen Zhongjiweiye] based on 1G memory and 8G storage sells for about $52 [May 23, 2012]
- The [7-inch] A13 tablet [from Shenzhen VAYEE] sells for 299 RMB [$47] [May 25, 2012]
- The tablet PC based on RK2906 is cheaper than A10 tablet PC [May 25, 2012]:
Rockchip has released RK2906 chip to defeat Allwinner A10. The chip is not different from RK2918 but it can only used for 7-inch tablet and 8-inch tablet.
The tablet based on RK2906 comes from Shenzhen DavidMid.
- The Allwinner A13 PCBA from Shenzhen SMIT [State Micro Technology] [May 25, 2012]: [SMiT, Official website: http://www.smit.com.cn/] [“slot-in screen” is rather “embedded capacitive screen”: 内嵌电容屏]
The two sample tablet PCs from SMIT are based on slot-in screen and flat screen. The price of the slot-in screen is less $8 than the price of the flat screen.
The price of the PCBA sells for about $19, the tablet PC based on A13 solution, slot-in screen and capacitive control sells for about $47.
… The slot-in screen does not have external glass and interaction sets that it is cheaper. But the experience is not different from the flat screen. …
Remark: Embedded Touchscreen Technology and Market Analysis [Displaybank, March, 2010]
The embedded touch technology is divided into In-cell and On-cell technologies. Conventionally, only the In-cell technology which was exclusively developed by panel makers drew attention, but it entailed issues in technology and cost regarding a mass production by satisfying the touch function demanded by customers and market. The on-cell technology lies at a grafting point between the conventional touch industry infra and LCD panel industry that it tends to mutually supplement the two industries in terms of performance and function.
The embedded touch technology which includes above On-cell and In-cell technologies is ideal since it reduces thickness and weight as well as it overcomes shortcomings of the conventional add-on type: reduced transmittance, lowered readability due to contrast ratio decrease, and thick bezel width. Based on above advantages, related makers continue with the technology development. The market is yet insignificant, but it is expected to show high growth rate comparable to the Touch market’s growth.
Latest info:
– On-cell Touch Screen Panel Slims Down Mobile Displays [Electronic Design, June 10, 2012]
– TOUCH TECHNOLOGY IN SMARTPHONES EXPLAINED [FlatpanelsHD, Sept 19, 2012]
- Q780 based on Allwinner A10 solution and 7-inch screen [from Shenzhen Xunlong] sells for 29X RMB [$46.x] [June 28, 2012]
- The volume production of VIA8850 chip will start in this month. [June 25, 2012] In last year, VIA8650 has controlled most of the market share. As the new chip is released so late, Allwinner and Rockchip get more market share.
- Structure of VIA8850 competition [June 29, 2012]
VIA8850 based on Cortex-A9 core is powerful than VIA8650. VIA8650 is so worse that some famous manufactures in China have not made their tablet PCs to introduce VIA8650 chip, such as Ramos, Window and TOBE.
VIA8850 will come with cheap price and powerful performance. It will be mainly used for SuperPad tablet PCs. It is said that VIA will release another chip for big-brand companies.
Actually it is same with VIA8850, but it has different name.
As VIA8650 chip is so worse, Infotmic [X200] 7-inch chip, Allwinner A10, Allwinner A13 have got most of the market share.
Could VIA8850 chip get more market share in this year?
1. There are so many Allwinner A10 tablet PCs that the competition is so fierce. Some manufactures do not make any money. They will not continue to release A10 tablet PCs. Maybe they will release VIA8850 tablet PCs.
2. VIA8850 based on Cortex-A9 core is [more] powerful than Allwinner A10 based on A8 core and A13 based on A8 core. With the resource of HTC, the system optimization of the VIA8850 tablet PC is excellent. It not only has powerful performance but also has cheap price.
3. VIA is a famous chip company in the world. They have good marketing channel.
Allwinner has released the A10 chip for about half a year. They have earned so much money including the investment cost and the profit.
VIA must do their best to earn the investment cost. The cost of VIA8850 is [more] expensive than Allwinner A13.
Allwinner has advantage in the price war.
- The tablet PC based on VIA8850 [from Shenzhen Vayee] sells for $299 RMB [$47] [July 6, 2012]
- Most of Shenzhen tablet manufactures export to other countries. Because Chinese do not like knock off tablet PCs or SurperPad tablet PCs, they like brand ones. [July 19, 2012]
- The 7-inch tablet PC based on Infotmic [X200] solution [from Shenzhen Wave] sells for 199 RMB [$32] [July 21, 2012]
Configurations: Infotmic solution, 256M memory, 4G storage, 7-inch resistive screen with 800×480 resolution, front facing camera, Android2.3 OS.
Infotmic X200 series are based on ARM11, 1GHz frequency, supports 1080P video decode.
- The 7-inch tablet PC based on Allwinner A13 solution [from Shenzhen Shenzhen Jinsuoai] sells for 25X RMB [$39.X] [July 28, 2012]
Recent examples of tablets:
$39 AllWinner A13 Tablet (100K bulk) by Hott at IFA 2012 [Charbax YouTube channel, Sept 2, 2012]
$46 AllWinner A13 by OMG at IFA 2012 [Charbax YouTube channel, Sept 2, 2012]
$99 3G Allwinner A10 Eken G70 at IFA 2012 [Charbax YouTube channel, Sept 1, 2012]
And here is an earlier $55 AllWinner Boxchip A13 Tablet Factory Tour [Charbax YouTube channel, May 27, 2012] to understand why and how the workforce is able to assembe the tablets at such a cheap price:
AAPPAA Shenzhen JinPinXing Tablets [Charbax YouTube channel, Sept 2, 2012]
Some important information mentioned in the video:
MID-971:
– World’s Thinnest 9.7” [IPS] Pad
– Only 8.9 mm
– Built-in 3G (can be also without it)
– WiFi + Bluetooth
– VIMICRO??? or Longcheer 2918/3066
– the WiFi only version is US$115-120 depending on quantityMID-803:
– 8” Pad
– Built-in 3G
– Dual Camera
– Rockchip 3066 dual core
– US$172 with 8GB and 3G
?MID-973?: a 9” tablet with Allwinner A13 is said to cost US$73-74
30K tablets sold per month, can sell upto 50K per month
On their product microsite (see below) the tablets shown currently have the following SoCs and parameters:
– Allwinner A10 (Cortex A8@1.5GHz): MID-501 and MID-702 (both 512MB DDR3 and 7” 800×480 with Android 4.0.4)
– Allwinner A13 (Cortex A8@1.0GHz): MID-438 (7” 262×480 and Android 4.0.3), MID-703 (7” 800×480 and Android 4.0.4) both with 512MB DDR3
– VIMICRO882 (Cortex A8@1.0GHz): MID-706 (512MB DDR3 and 7” 800×480 with Android 4.0)
– all the those are with capacitive touch screens, NAND FLASH 4GB/8GB/16GB / 32GB (optional), AMD graphics acceleration, full support for OpenGL ES2.0 (AMD Z340) and h.264 720P HD 1080i
Jinpin Xing Technology Co., Ltd., Shenzhen – Tablet PC – Products – [as of Sept 18, 2012]
深圳市金品兴科技有限公司 – 平板电脑 – 产品介绍
AAPPAA –About us [Aug 19, 2011]
![]()
AAPPAA, founded in 2005, is an established manufacture of smart digital products with super perfect design in MP3/4/5, Mini Speaker products field. We design and produce super perfect quality products, many of them are original which we ship to wholesale customers all over the world. Given the wide array of geographic regions across which we distribute product, we work closely with our customers and retail partners to ensure the AAPPAA team remains innovative and competitive in a constantly evolving market sector.
AAPPAA’s Success: AAPPAA’s success can be attributed to close collaboration with our global set of customers and partners combined with internal efforts to continually improve our productivity, design creativity and quality management initiatives. Through the years, AAPPAA has experienced tremendous growth while also enhancing the personal lives of our customers, and the well being of our loyal employee base. AAPPAA employs 60+ people with an average employment tenure of nearly 3 years a fantastic achievement amidst China’s explosive growth that has offered a continuous list of new opportunities of a young, energetic workers.
AAPPAA’s Manufacturing Capacity: AAPPAA’s 1500 square meters of manufacturing space and 60+ workers are based in Shenzhen China. We operate multiple production lines with SMT machines, hot plastic packing machines as well as high & low temperature age and vibration testing units. Production capacity exceeds 110,000 units per month. In addition, AAPPAA’s products are CE, FCC, RoHS certified.
Address: 5F, Nankeng No.2 Industrial Park Abuilding, Bantian Town, Longgang District, ShenZhen City 518129, China
Tel : +86-755-83579180 Fax:+86-755-83579189 E-mail: sales@aappaa.com
5. The wireless display and 2160p (“Quad HD”/4K) outlook
Wi-Fi CERTIFIED Miracast™: Your Content – Now Showing on Screens Everywhere [WiFiAlliance YouTube channel, Sept 18, 2012]
What that means practically is currently best shown by a non-Chinese tablet SoC vendor:
NVIDIA Tegra 3 Enhances Miracast Wireless Display [nvidia YouTube channel, July 26, 2012]
What you see here is the Hardware + software optimization done by NVIDIA for Miracast. Since Allwinner is using its own video processing unit (VPU) which is said to be the fastest relative to the video engines of its Chinese SoC competitors (e.g. Amlogic) we can expect a similar to the NVIDIA’s kind of software optimization for the Allwinner VPU. (Take also into consideration “the company’s strategic intent to remain in the forefront of video acceleration technology” as it was proven in the “Allwinner Advantage” section before.)
In other respect a separate 3d party WiFi chip is coming into the play, and there is already quite a number of those chips already to be designated Wi-Fi CERTIFIED Miracast™ :
Easy-to-use, multi-vendor wireless display has arrived: Wi-Fi Alliance® launches Wi-Fi CERTIFIED Miracast™ [Wi-Fi Alliance press release, Sept 19, 2012]
Wi-Fi Alliance® today announced the launch of the Wi-Fi CERTIFIED Miracast™ certification program. Miracast devices provide simplified discovery and setup, so users can quickly transmit video content from one device to another. Industry analysts predict annual shipments of Miracast-certified devices to exceed one billion units within the next four years.
Miracast users can do things like view pictures from a smartphone on a big screen television, share a laptop screen with the conference room projector in real-time, and watch live programs from a home cable box on a tablet. Miracast connections are formed using Wi-Fi CERTIFIED Wi-Fi Direct™, so access to a Wi-Fi® network is not needed – the ability to connect is inside Miracast-certified devices.
“Wi-Fi users around the world want to experience multimedia on the device of their choice – no matter what brand – and Miracast is the breakthrough they have been waiting for,” said Edgar Figueroa, CEO of Wi-Fi Alliance. “We have been delighted with the level of enthusiasm and support among our member companies for this new offering.”
Miracast supports protected content streaming, enabling devices to stream feature films and other copy-protected materials. To protect premium content, Miracast uses a wireless adaptation of the trusted content protection mechanisms widely used today for cabled interfaces like HDMI® and DisplayPort. In addition, the latest WPA2™ security protections are automatically enabled on every device, making the transport of all multimedia content private.
“Miracast builds on Wi-Fi Direct with a compelling application,” said Brian O’Rourke from IHS iSuppli Research. “This is a big step forward in a market migration from single-vendor display solutions, into an offering from a wide array of vendors. With more than 1.5 billion Miracast devices expected to ship in 2016, the program is poised to have broad adoption.”
The technology underlying Miracast was developed in Wi-Fi Alliance by a diverse group of mobile and consumer electronics manufacturers and silicon vendors to standardize methods for simplified video sharing. Based on the Wi-Fi Alliance Display Specification, products bearing the Miracast brand interoperate across vendors, making it easy to enjoy video on screens throughout the home or office.
The first products to be designated Wi-Fi CERTIFIED Miracast, and which form the test suite for the certification program, are:
Broadcom Dualband 11n WiFi
Intel® WiDi
Marvell Avastar USB-8782 802.11n 1×1 Dual-band Reference Design
MediaTek a/b/g/n Dualband Mobile Phone Client, MT662X_v1 and DTV Sink, MV0690
Ralink 802.11n Wireless Adapter, RT3592
Realtek Dual-band 2×2 RTL8192DE HM92D01 PCIe Half Mini Card and RTD1185 RealShare Smart Display Adapter
The first consumer products certified since testing opened to vendors include the LG Optimus G smartphone, Samsung Galaxy S III smartphone and Samsung Echo-P Series TV.
More information, including a list of Wi-Fi CERTIFIED Miracast products, the Wi-Fi Alliance Display technical specification, white paper, and more is available at www.wi-fi.org/miracast.
Broad industry support for Wi-Fi CERTIFIED Miracast
“As a Wi-Fi market leader, Broadcom is honored to be one of the primary certification solutions for the Wi-Fi Alliance Miracast™ program and is committed to driving new Wi-Fi standards,” said Dino Bekis, Senior Director, Wireless Connectivity Combo Group at Broadcom. “The standardization of this technology will enable consumers to easily and seamlessly share content across the ever-growing landscape of connected devices.”
“Users clearly expect that they should be able to move their content and applications freely at home, at work, in the classroom, and on the go,” said Joe Van De Water, Director of Consumer Product Marketing at Intel. “Intel has seen tremendous user enthusiasm for Intel® WiDi, and as a member of the Wi-Fi Alliance, we support enabling this usage more broadly and are excited to announce WiDi as one of the first Wi-Fi CERTIFIED Miracast solutions.’’
“We celebrate the launch of the Wi-Fi CERTIFIED Miracast™ program,” said Hyunghoon Oh, Head of LG Mobile Communication R&D Division. “Miracast brings an exciting advancement in the way devices deliver display applications.”
“The Wi-Fi Alliance’s Miracast certification program will allow for easy sharing of video content, regardless of vendor,” said Bart Giordano, Director, Wireless Marketing at Marvell Semiconductor, Inc. “We have included Miracast in our solutions, and are honored to have been selected for the program’s test bed.”
“The video streaming applications enabled by Wi-Fi CERTIFIED Miracast™ are key to the growth of the Wi-Fi ecosystem encompassing Consumer Electronics, Personal Computing, and Mobile devices.” said Mr. SR Tsai, General Manager of Wireless Connectivity & Networking Business Unit at MediaTek. “We are honored to have our Android mobile platforms, Digital TV, as well as our connectivity solutions for Windows platforms selected for the Miracast test bed.”
“Miracast on NVIDIA Tegra will bridge the distance between mobile devices and high-def TVs, providing customers a rich – and cable-free – multimedia experience,” said Matt Wuebbling, Director of Product Marketing at NVIDIA. “We have embraced Miracast and are working with our OEM partners to bring its amazing possibilities to market.”
“We are happy to have been involved in developing the Miracast program and to be one of the first companies to receive certification,” said Jessy Chen, Vice President and Spokesman at Realtek. “The solution will greatly expand the market for easy-to-use interoperable wireless display connectivity.”
“As a leader in N-screen technology, Samsung has introduced AllShare Cast (based on Miracast), which is incorporated into most of Samsung’s high-end smart mobile devices including the GALAXY S III, GALAXY Note 10.1, and GALAXY Note II, “ said Hankil Yoon, Senior Vice President of Product Strategy Team, Samsung’s Mobile Communication Business. “We will continue to support the program, and plan to offer more Miracast-certified devices to our customers going forward.”
“Sony Mobile is pleased to support the Wi-Fi CERTIFIED Miracast™ certification program. We continuously strive to deliver new exciting user experiences and Miracast™ technology will enhance our ability to offer consumers seamless connectivity to move their content freely between smartphones and other screens,” says Nikolaus Scheurer, Director Marketing Planning for Sony Mobile Communications.
“Miracast will play an important role in enabling true seamless media streaming, gaming and content sharing between mobile screens and large displays,” said Ram Machness, director of marketing, Wireless Connectivity Solutions, Texas Instruments Incorporated. “Our OMAP™ platform, DaVinci™ video processors and WiLink™ connectivity products will offer Miracast-certified source and sink solutions to provide a rich experience for our customers’ end products.”
About the Wi-Fi Alliance®
www.wi-fi.org
The Wi-Fi Alliance is a global non-profit industry association of hundreds of leading companies devoted to seamless connectivity. With technology development, market building, and regulatory programs, the Wi-Fi Alliance has enabled widespread adoption of Wi-Fi worldwide.
The Wi-Fi CERTIFIED™ program was launched in March 2000. It provides a widely-recognized designation of interoperability and quality and it helps to ensure that Wi-Fi-enabled products deliver the best user experience. The Wi-Fi Alliance has completed more than 15,000 product certifications, encouraging the expanded use of Wi-Fi products and services in new and established markets.
Wi-Fi®, Wi-Fi Alliance®, WMM®, Wi-Fi Protected Access® (WPA), the Wi-Fi CERTIFIED logo, the Wi-Fi logo, the Wi-Fi ZONE logo and the Wi-Fi Protected Setup logo are registered trademarks of the Wi-Fi Alliance. Wi-Fi CERTIFIED™, Wi-Fi Direct™, Wi-Fi Protected Setup™, Wi-Fi Multimedia™, WPA2™, Wi-Fi CERTIFIED Passpoint™, Passpoint™, Wi-Fi CERTIFIED Miracast™, Miracast™, Wi-Fi ZONE™ and the Wi-Fi Alliance logo are trademarks of the Wi-Fi Alliance.
All other company and product names mentioned are trademarks and/or registered trademarks of their respective owners.
For Chinese vendors the WiFi-related MediaTek chips are the most accessible and affordable, so I am including the additional MediaTek press release as well:
MediaTek Interlinks Mobile Devices and TVs for Wireless Display MiracastTM Applications [MediaTek press release, Sept 19, 2012]
MediaTek Inc., a leading fabless semiconductor company for wireless communications and digital multimedia solutions, today announced that its 802.11a/b/g/n Dual-band Mobile Phone Client (MT662X), 802.11n Wireless Adapter (RT3592) and DTV Sink solutions (MV0690) have all been selected as part of the Wi-Fi CERTIFIED MiracastTM test bed. As the benchmark to drive interoperability testing for the newest Wi-Fi program, MediaTek’s Miracast-certified solutions allow mobile devices to wirelessly stream multimedia content, such as video and games, onto big screen DTVs without a connection to an access point.
“We congratulate MediaTek on achieving selection to the Wi-Fi CERTIFIED MiracastTM test bed,” said Wi-Fi Alliance CEO Edgar Figueroa. “MediaTek’s participation in the development of this program has been instrumental in the achievement of industry-wide certification.”
In a typical MiracastTM usage scenario, one device acts as the source (the transmitting device sending out the content) while the other becomes a sink (a receiving device displaying the content). Thanks to the new Wi-Fi test program and MediaTek’s proven technologies, interoperability and user experience of Miracast applications can be guaranteed.
“We are partnering with MediaTek to provide consumers with high-performance, affordable smartphone solutions that incorporate the latest Miracast Wi-Fi display technology for the home and on the go, “ said Dr. Ji-Yang Wang, COO at TCL Communications Technology. “MediaTek’s industry-leading technologies, cross-platform advantages across home and mobile, and ‘hands-on’ approach to design and support, are essential in creating products that helps us deliver a compelling user experience and differentiated offering.”
“The video streaming applications enabled by Wi-Fi CERTIFIED MiracastTM are key to the growth of the Wi-Fi ecosystem encompassing Consumer Electronics, Personal Computing, and mobile devices.” said Mr. SR Tsai, General Manager of MediaTek’s Wireless Connectivity & Networking Business Unit. “Having our Android Smartphone, Digital TV, as well as our connectivity solutions for Windows platforms selected for the MiracastTM test bed is a strong testament to the breadth and quality of MediaTek’s Wi-Fi technology.”
MediaTek offers a broad portfolio of high-performance SoC and wireless connectivity solutions for the proliferation of smartphones, tablets, PCs, DTVs, Blu-ray players and AP/routers. The Wi-Fi CERTIFIED MiracastTM MediaTek solutions included in the test bed are:
• MT662X a/b/g/n Dual-band Mobile Connectivity Combo
• RT3592, Ralink 802.11n Wireless Adapter
• MV0690 DTV Sink
The Wi-Fi CERTIFIED MiracastTM MediaTek solutions have entered mass production and are shipping in commercially launched devices.
* Windows is a registered trademark of Microsoft Corporation in the United States and other countries.
See also:
Wi-Fi CERTIFIED Wi-Fi Direct™: Personal, portable Wi-Fi® that goes with you anywhere, anytime [Wi-Fi Alliance, Aug 15, 2010]
As far as the 2160p (“Quad HD” or 4K) technology is concerned, which is already on our footsteps, I would first recommend to watch the below demo video available on YouTube in QUAD HD resolution. You should “simply” select the “Original” quality in full screen viewing mode, and if your monitor has sufficient resolution than you could get the proper experience (do not forget that your Internet connection should be sufficiently fast in terms of guarranteed dowload speed as well). If not than correspondingly less:
IT005 QUAD HD 4K – Italy travel guide Bird watching [VOXLIBERTUM YouTube channel]
Then please watch another video which is showing what the leader in this TV technology, Toshiba was showing on the recent IFA 2012 fair in Berlin:
Toshiba 4K Quad-HD 3840×2160 TVs with CEVO Engine upscaling/processing from 55″ to 84″ [Charbax YouTube channel, Aug 30, 2012]
The reporter (Nicolas Charbonnier alias Charbax) did an excellent job with this video, as well as the Toshiba guy showing him around. Even his English is very good and enjoyable. Note that from [02:10] and “Glassless 3D” is shown and explained quite extensively, then highly zoomable Google Maps in 3D etc. Charbonnier is doing during all this an excellent job zooming with camera so one can really grasp the 4K and 3D experience quite well even in a normal viewing environment of your monitor. THANKS!
More information:
– Toshiba unveils the first large-screen glasses-free 3D TV in Asia
[Toshiba Singapore press release, May 3, 2012]
– Toshiba Brings New Generation of TVs and PCs to the Philippines Announces New Brand Ambassador [Toshiba Philippines press release, June 20, 2012]
– RZ1 SERIES NEW! Glasses-Free 3D TV [Regza Asia microsite, June 4, 2012]
– Toshiba Regza RZ1 [Toshiba Regza YouTube channel, May 31, 2012]
– Toshiba Regza RZ1 3D TV Review [gadgetguruindia YouTube channel, Aug 6, 2012]
You can also watch Charbonnier’s shorter report about Sony 84″ 4K TV KD-84X9005 with 4K X-Reality Pro [Charbax YouTube channel, Sept 2, 2012] which came after Toshiba to the market and said to be widely available for Christmas.
Finally: Status of the TV Display industry by Paul Gray, Director of European TV Research for DisplaySearch [Charbax YouTube channel, Aug 31, 2012]
6. Are the established client device players
recognizing this strategic inflection point or not?
Decide for your yoursel, dear reader:
Ballmer trumpets Microsoft’s ‘epic year’ [The Seattle Times, Sept 15, 2012]
Q: The iPad has the largest share of the tablet market, but its soft spot, it seems to me, is the price.With the Surface, are you planning to compete with the iPad on price or on features?
A: We haven’t announced pricing. I think we have a very competitive product from the features perspective. …
I think most people would tell you that the iPad is not a superexpensive device. … (When) people offer cheaper, they do less. They look less good, they’re chintzier, they’re cheaper.
If you say to somebody, would you use one of the 7-inch tablets, would somebody ever use a Kindle (Kindle Fire, $199) to do their homework? The answer is no; you never would. It’s just not a good enough product. It doesn’t mean you might not read a book on it….
If you look at the bulk of the PC market, it would run between, say, probably $300 to about $700 or $800. That’s the sweet spot.
…
Q: Where do you see Microsoft’s position in five years, 10 years?
A: First of all, I’d say: pre-eminent technology company. I think that in a back-looking view, people would say we were a software company. That’s kind of how we were born.
I think when you look forward, our core capability will be software, (but) you’ll probably think of us more as a devices-and-services company. Which is a little different. Software powers devices and software powers these cloud services, but it’s a different form of delivery….
Doesn’t mean we have to make every device. I don’t want you to leap to that conclusion. We’ll have partners who make devices with our software in it and our services built in. … We’re going to be a leader at that.
Supply chain estimates x86 Surface Price at US$500-700 and RT below US$399 [DIGITIMES, Sept 18, 2012]
Microsoft’s own-brand Surface tablets are expected to launch at the end of October with the related supply chain players estimating that the Surface RT’s hardware cost is at around US$300-400 and the end price will be less than US$399. However, the pricing is not confirmed by Microsoft.
Microsoft’s pricing strategy for its own-brand tablets will relatively affect PC brand vendors’ pricing strategy and sales projections for their Windows 8 tablets. As the launch time at the end of October is approaching, PC brand vendors are keeping a close eye on Microsoft’s actions. With the related Surface pricing speculations having been floating around the market, Surface RT was previously rumored to be priced at only US$199, leaving the PC brand vendor in a cold sweat.
Since CEO Steve Ballmer in a recent interview pointed out that a price level between US$300-800 will be the sweet spot for PC sales, some market watchers have interpreted the statement as a hint for Surface pricing.
The sources revealed that the hardware cost of Surface RT is at US$300-400 and US$400-500 for the x86 version. Since the devices will not need to pay the licensing fee for the operating system. The RT version will be priced below US$399, while the x86 version is estimated to be US$100-200 higher based on hardware costs and priced at US$500-700.
The PC brand vendors also pointed out that they will not be absent from launching x86-based Windows tablet products since Windows still has leadership position in the global enterprise market. If the x86 Surface’s end user price is at US$500-700, although they will feel the pressure from competition, the product line would still be profitable.
Acer, Asustek Windows 8 tablet prices may be to high to attract consumers [DIGITIMES, Sept 20, 2012]
Acer and Asustek Computer’s Windows 8 tablets are reportedly to be priced at above US$800, about the same price as the New iPad with the highest specifications, and market watchers are concerned that the high price may drag down consumer demand and impact the vendors’ performance.
Although PC brands including Acer, Toshiba, Dell, Lenovo, Asustek, Samsung and Sony, have mostly unveiled or showcased their Windows 8 tablets publicly, their prices and specifications are still not yet to be officially revealed. However, some websites have recently leaked information about Acer and Asustek’s tablets including prices and specifications.
Asustek is reportedly to release three Windows 8 tablet models and the 11.6-inch Vivo Tab will be priced at US$799.
Acer reportedly will release two sizes of Windows 8 tablet – the 10.1-inch 64GB Iconia Tab W510 with Wi-Fi support only and priced at NZD999 (US$827), a keyboard accessory will raise the price to about US$993; and the 11.6-inch 128GB Iconia Tab W700 with Wi-Fi support only at NZD1,799 (US$1,490), and with a Bluetooth keyboard, the machine’s price will go up to about US $1,570.
However, Acer and Asustek have both declined to comment on the leaked prices and only pointed out that they will host product launches in the near future. Intel has also recently sent out media invitations and will host a Windows 8 tablet conference on September 27 in the US to showcase tablets and convertibles from Acer, Asustek, HP, Lenovo, Dell, Samsung and ZTE to promote for the launch of Windows 8.
Acer and Asus to Launch Windows 8 Tablet PCs in Q4 [CENS, Aug 22, 2012]
Eying business opportunities created by the new Windows 8 operating system (OS), scheduled for release in October, Taiwan-based personal computer (PC) vendors Acer and Asus will soon launch Win 8 tablet PC models.
Acer plans to launch two Windows 8 tablet PCs supporting keyboard input, and will soon launch several Android smartphone models, including the A9- and C-series in September. Acer`s CA and C1 smartphones will be demonstrated in pan-European market in the fourth quarter possibly in cooperation with some telecom carriers.
Industry sources said that Asus` new tablet PC TF500T will be priced between its lower-end Transformer Pad TF300 and high-level model Transformer Pad Infinity TF700.
Some institutional investors deem that after the Windows 8 products go to market, consumer response will decide how intensive PC vendors will promote compatible models.
Lenovo has also announced to launch price-competitive Windows 8 tablet models priced from US$200 to US$300, with its IdeaPad Yoga notebook PC also to be announced in October.
According to PC part and component suppliers, all major international vendors, including Dell, HP, Lenovo, Samsung, Acer and Asus, are actively developing Windows 8 products, leading to parts suppliers` revenue peaks in the fourth quarter.
Compal Electronics Inc., a major contract notebook PC assembler, is reportedly developing Windows 8 notebook PC models for HP, which plans to unveil the new models in the fourth quarter to boost sales in the Christmas season.
Acer to Keep Launching Netbook PCs: Chairman Wang [CENS, Sept 18, 2012]
In the face of tablet PCs encroaching on sales of netbooks worldwide, J.T. Wang, chairman of Acer Inc., a Taiwanese, globally leading brand vendor of PCs, stated that his company will keep launching netbook models in the future.
Since the launch of Apple Inc.’s iPad in 2010 ignited the market for tablet PCs, such emerging electronic devices have rapidly eaten into market shares of netbook PCs over the past few years. This forces most PC vendors, including Samsung, Dell and Lenovo, to consider giving up the diminishing market.
Acer’s Taiwanese counterpart Asustek Computer Inc., which once rode on netbook PCs to achieve bigger shares of the global laptop market, also confirmed earlier that it will retire netbook PC production lines starting in the fourth quarter of this year, since such products, the company’s CEO Jerry Shen said, have already fulfilled tasks for the development of the global PC industry.
Another factor prompting PC vendors to exit the netbook market is the lack of support from Microsoft and Intel. Accordingly, Microsoft doesn’t launch any starter edition of Windows 8 for netbook PCs, while Intel will focus the development of its Atom processors on tablet PCs and smartphones. This has made netbook PCs even more unworthy of development.
But, Acer’s chairman Wang is still optimistic about the market for netbook PCs. He said that consumer demand for such devices will continue growing in emerging countries, not to mention that netbook sales in developed countries still make up a majority of the global total at present. Therefore, Wang said promotion of netbook PCs will remain part of his company’s product strategy in the short term.
The latest statistics issued by International Data Corp. (IDC), a global PC market researcher, show that global sales of netbook PC totaled 8.913 million units in the first half of this year, with 26.2% of which supplied by Acer. The sales volume is estimated to reach between 15 million and 16 million units for the whole year.
With most of its peers jumping out of the market, Acer, backed by strong brand recognition and huge outlets, is expected to take over most of the shares that they will leave to dominate this segment.
Shares by Top 5 Brands in Global Market for Netbook PCs in Q2
Ranking
Brand
Sales Volume
Market Share
1
Acer
1.182 million units
26.2%
2
Asus
1.019 million units
22.6%
3
HP
413,000 units
9.2%
4
Samsung
407,000 units
9.0%
5
Canaima
293,000 units
6.5%
Source: International Data Corp.
Contract Manufacturers Make About Nine Out of 10 Media Tablets in 2012 [IHS iSuppli press release, Sept 21, 2012]
Although your new media tablet may sport the logo of a familiar brand name like Apple or Amazon, there’s a 90 percent chance the device was actually made by a company with a much less famous moniker, such as Hon Hai or Quanta.
That’s because the vast majority of tablets—including the iPad and Kindle Fire—actually are made by contract or outsourced manufacturers based in Asia, according to an IHS iSuppli Global Manufacturing & Design Report from information and analytics provider IHS. (NYSE: IHS). The percentage of tablets made by outsourced manufacturers is set to rise this year and beyond as brands seek to minimize operational risks and reduce costs.
Outsourced manufacturers in 2011 were responsible for 87.5 percent of tablet production, compared to 12.5 percent that were made in-house. The percentage of outsourced tablets this year is expected to increase to 89.2 percent, with the portion claimed by in-house production projected to decline to 10.8 percent, as shown in the figure below. The years after that will see the share by outsourced manufacturing of tablets remain in the low 90 percent range, hitting a high of 91.1 percent by 2015 before settling back down at 90.4 percent in 2016.
“The high percentage of outsourced manufacturing of tablets reflects the choice among tablet brands and original equipment manufacturers—even ones as big as Apple—to refrain from in-house production,” said Jeffrey Wu, senior analyst for OEM at IHS. “Tablet brands use outsourcing for many reasons, including faster time to market; the leveraging of capabilities, especially for firmware development and hardware integration; and asset flexibility that translates into reduced corporate expenditures and lower headcount.”
Hon Hai Dominates Tablet Contract Manufacturing
The biggest contract manufacturer of tablets is Apple partner Hon Hai, of Taiwan, also known as Foxconn. Hon Hai accounted for 62 percent of tablet shipments last year. The company’s position in the tablet space is unique—not only because it accounts for the majority of tablet shipments in 2011, but also because of its close relationship with Apple.
Hon Hai is an EMS provider, a type of outsourced manufacturer that generally does not participate in designing product but simply offers manufacturing and supply chain management services. EMS providers for the most part control a smaller piece of the outsourced manufacturing space for computing products like notebook PCs—traditionally dominated by a rival group of makers known as original design manufacturers (ODM), which enjoy an advantage over EMS providers by being able to design products and offer manufacturing services alike. In the tablet production space, however, ODMs are the underdogs.
This is because Hon Hai, with Apple as its main client, holds the coveted right to make the iPad, the industry’s best-selling tablet by a wide margin. The ODMs have then been left to scramble for what remains of the tablet market—making rival devices for the likes of Barnes & Noble, Amazon and Asus, none of whose product offerings matches the iPad’s soaring sales and unequalled clout.
Android and Windows Power Rise of ODMs in Tablet Market
With the emergence of Android—and soon, Windows-based tablets—ODMs will have a better chance of breaking Hon Hai’s near-impregnable hold on the market. If the Android and Windows tablets prove successful, ODMs could see their share of the tablet outsourcing market grow, expanding to as much as 53 percent by 2016, on the assumption that consumers will embrace iPad alternatives.
Nonetheless, concerns for ODMs and Hon Hai alike could be in store.
Currently sidelined in much of the dynamic tablet space, ODMs also have concerns about their prospects in future tablet production. Most ODMs make notebook PCs as well, and choosing to produce tablets for other clients could mean endangering their own stake in the PC market—much as tablets are now eating into the share traditionally enjoyed by notebook computers among consumers. However, strengthening their foothold in the tablet space is inevitable for ODMs, especially as tablets continue to gain momentum at the expense of notebook computers.
ODMs also face potentially higher operating expenses and risks with the emergence of more tablet platform options—signified by the rise of Android and Windows—which would involve additional research and development costs in order for ODMs to maintain technical capabilities on those fronts.
Hon Hai, the current champion among tablet producers, is likewise not entirely free of peril. Should Apple shift some of its tablet production to other contract manufacturers in an effort to diversify its contract manufacturing base, Hon Hai could suffer a blow.
For other tablet brands like Samsung and Motorola that choose in-house production, their share of tablet manufacturing is not expected to exceed the 12.5 percent that the collective in-house space saw in 2011. Share of in-house production in the years ahead will stay in the 9 to 10 percent range, IHS predicts, as ODMs and EMS providers battle fiercely among themselves for an increasing stake in the hotly contested tablet business.
7. Possible further hardware advances
sustaining this new trajectory.
The current and already mature value proposition in brief is:
the rhombus tech initiative, along with the EOMA-68 standard, has been designed to tackle the very problems that RockChip and other SoC vendors face. our strategy is very straightforward:
a) invite SoC vendors to release EVBs in a standardised modular form which can go straight into mass-production, needing only a very simple 2 to 4 layer PCB for the main I/O of any matching product.
b) standardise and therefore greatly simplify the software development. the advantage of having standard I/O boards (products into which the CPU Modules can fit) is that the software for those products will already have been written. porting a CPU Card to work in a range of existing hardware products is far, far simpler than forcing everyone to design complete products from scratch (including the software).
the cost savings and time savings should be evident, and this is absolutely critical and will only become more so as the prices are driven down further by 28nm and beyond, as well as the product lifecycles becoming shorter and shorter.
it’s quite complex to explain initially but very straightforward once it’s fully understood, and very exciting as well. would you be so kind as to mention to Mr Chen that we would love to work with him, especially to help introduce RockChip CPUs properly into the Free Software Community, which will result in considerable engineering cost saving for RockChip, apart from anything else? i am easy to find on the internet but here is my email address anyway: lkcl@lkcl.net
Comment on 10/1/2012 by Luke Kenneth Casson Leighton, CTO at Rhombus Tech entered for China Fabless: Rockchip rattled by Android tablet wars [EE Times, Sept 25, 2012]
Latest information: A10 EOMA-68 CPU Card [luke.leighton | 24 Nov, 2012]
hi folks, small update: wits-tech detected an ambiguity in how the usb interfaces work, which needed clarification from allwinner as well as a PCB layout alteration. we'll have more details as-and-when they're available to us and as-and-when knowledge of the solution has been shared with is. usual china "save face" thing is going on at the moment i.e. don't share details of the problem until a full solution has been found. what this translates into is at least another 2 weeks whilst the new PCB layout's done and the new sample PCBs are printed. obviously that's an estimate, as it's beyond our control.
Note: wits-tech = Shenzhen WITS Technology Co.,Ltd
The original concept of a year ago:
Embedded Open Modular Architecture/EOMA-68 [Embedded Linux Wiki, Sept 23, 2012]
earlier: Embedded Open Modular Architecture/PCMCIA [Embedded Linux Wiki, Sept 5, 2011 – March 11, 2012]
…
The Obligatory Tablet – a simple tablet motherboard which could potentially be developed as a very low cost single-sided 2-layer PCB. Components are chosen to reduce development cost and risk, as well as reduce manufacturing cost.
…
Embedded Open Modular Architecture/EOMA-68/Tablet [Embedded Linux Wiki, Sept 21, 2011],
note that what is excerpted below had not essentially been changed till Feb 12, 2012, the last date of change for this wiki page
The Tablet Motherboard
Popular by decree, but only successfully-sold when the price is stunningly low yet the feature-set rich, tablets are the “must-have” for all ODMs and OEMs who aspire to a chunk of the large apple pie. Key goals for this motherboard are therefore to be small, slim, low component count and based on a low-risk development strategy. Thanks also to the modular design, the board is sufficiently simple that it may even be possible to do as a single 2-layer PCB, thus reducing costs even further.
Connectors and Components
The connectors required are:
- 1x USB2
- PCMCIA Connector “inline” (signals conforming to EOMA/PCMCIA Standard)
- 5V Power
- 1x PCI Express “inline” (supporting USB Wifi, not PCI-e Wifi, such as RT2070 and RT8191)
- 1x Stereo Speakers and Microphone
- 1x RGB/TTL LCD Output (with LED Backlight)
- 2x Battery Connectors
Major components are:
- An STM32F103RBT6 Embedded Controller (same as in the Micro Engineering Board)
- A 4-port USB-2 High-speed Hub (e.g. FE11
- 12.5Mhz XTAL (for the USB Hub)
- Power Management ICs (Buck Converters for 3.8v Lithium to 5.0v; 3.3v LDOs)
- Step-up DC-DC Converter for the LCD Backlight AP3029
- An I2C EEPROM
- An RT2070, RT8191 or Atheros ath9k USB-compliant MiniPCIe WIFI Module
- An Antenna for the WIFI Module
- A 7in LED-backlit LCD (e.g. AT070TN93)
- A resistive or capacitive touchpanel (resistive: low-cost; capactive: expensive, often more expensive than the LCD)
- A slim-line PCMCIA Ejector Assembly
The estimated BOM is therefore around the $30 to 35 mark [Sept 21, 2011 !], excluding the EOMA/PCMCIA-compliant CPU Card, and including the batteries, case and WIFI module. The most expensive component is the LCD Panel, whilst the 2nd most expensive one is the batteries.
…
Diagram of Tablet Motherboard Layout
From this diagram, it can be seen that there is very little involved. Like the Odroid, it’s possible to have a product where the connectors and buttons define the size of the PCB more than the ICs and discrete components. In this case, many of the major connectors (such as USB-OTG, HDMI, Micro-SD and Headphones) will already be on the EOMA/PCMCIA-compliant CPU Card, leaving nothing left for the motherboard than to provide USB2 and Power connectors! An alternative revision is also shown which takes a USB 3G Modem, in PCI-e form-factor.
…
Diagram of Tablet Construction
…
Others: Laptop LCD Monitor (TV)
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Embedded Open Modular Architecture/EOMA-68 [Embedded Linux Wiki, Sept 23, 2012]
earlier: Embedded Open Modular Architecture/PCMCIA [Embedded Linux Wiki, Sept 5, 2011 – March 11, 2012],
note that the excerpts below are essentially as of Sept 21, 2011, image: Jan 16, 2012
EOMA-68 Specification
This page describes the specification of EOMA-68. The number of pins on the interface is 68; the physical form-factor is the legacy PCMCIA.
Re-purposing of the PCMCIA interface and form-factor has been chosen to create portable Embedded Computing Modules (Computer on Module). Mass-volume “Lowest Common Denominator” interfaces have been chosen, all of which have existed for over a decade, but are low-power enough to be standard across virtually all mass-produced powerful Embedded CPUs.
The interfaces are:
- 24-pin RGB/TTL (for LCD Panels)
- I2C
- USB (Low Speed, Full Speed, optionally Hi Speed/480 Mbit/s and optionally USB3)
- 10/100 Ethernet (optionally 1,000 ethernet)
- SATA-II (optionally SATA-III)
- 8 pins of General-purpose Digital I/O (GPIO).
These interfaces are NOT OPTIONAL for CPU Cards. All CPU Cards MUST provide all interfaces. I/O Boards on the other hand are free to implement whichever interfaces are required for the device. For example: whilst all CPU Cards must have an SATA interface, devices such as tablets or laptops into which CPU Cards are plugged are not required to have an SATA hard drive.
…
Future Versions
… At the time of writing (2011), the interfaces in the 1.0 Specification are “Lowest Common Denominator” yet are still present across the majority of 2011’s powerful embedded SoCs (OMAP4440, Enyxos4210, Tegra 3, iMX53 etc.) However, in the future, the “Lowest Common Denominator” could well comprise MIPI instead of RGB/TTL, 2 lane PCI-express (or its successor), and USB-3 instead of USB-2 (perhaps even a faster version of ULPI).
As of 2011 however, the total number of Embedded CPUs supporting all these newer interfaces and still keeping to a 1.5 watt budget is precisely zero. Support for these high-speed interfaces will therefore be re-evaluated in 2 to 3 years time, and a future version of this standard created when a large proportion of available embedded CPUs have these or other high-speed interfaces that are available at the time.
…
The project had been initiated by a Crowd funding proposal [Rhombus Tech, Dec 25, 2011],
note that Rhombus Tech website rhombus-tech.net started on Nov 18, 2011 as well as there was an earlier low-cost EOMA-PCMCIA CPU Card initiative (allwinner cortex a8) e-mail by Luke Kenneth Casson Leighton <lkcl@lkcl.net> on Dec 14, 2011
To: opensuse-arm@opensuse.org, linaro-dev@lists.linaro.org, arm@lists.fedoraproject.org, meego-community@meego.com,ubuntu-server-arm@lists.ubuntu.com, maemo-developers@maemo.org, gentoo-embedded@lists.gentoo.org, general@lists.tizen.org,
ARM <debian-arm@lists.debian.org>
Cc: Linux on small ARM machines <arm-netbook@lists.phcomp.co.uk>
Aim: Small (Free as in Speech) Linux device which can be upgraded
In particular, a small CPU card which:-
- Complies with GPL (Free as in Speech)
- Powerful
- Upgradeable
- Cheap
For example I can buy a tablet, after a few years the display, touch-screen and memory will be perfect. After a few years I may want to upgrade the CPU, or fix a software bug, or both – at the moment this is not possible.
We are aiming for this CPU Card will have full GPL Source Code publicly available and will be suitable for many purposes including use as a Freedom Box, or as an embedded computer, or in the future to drive products such as Tablets, Laptops, IPTVs and Desktop PCs simply by plugging it in. These devices can then run a nice GNU/Linux distribution like Debian, Ubuntu or similar.
Current Situation
Not many tablets or small devices run a nice GNU/Linux distribution like Debian, Ubuntu or similar. They are either low powered, closed source, GPL violating or not cheap.
The problem that if you want low-cost mass-produced hardware, you normally have to go with GPL-violating product. We then spend the majority of our time reverse-engineering before getting something useful. By the time we are done, the product is usually end-of-life: thus if it breaks, we are back to square one. If there is a security bug in the kernel supplied – again we are back to square one.
The reason for the GPL violations is that the low-cost China-based Factories simply have zero software skill and a chain of about five business relationships between the seller and manufacturer. The manufacturer has got their money at this stage, so at this point we are asking the manufacturer for more effort in return for no extra income. Thus, we logically concluded that the only way to get non-GPL-violating product out there is to go directly to the factories and be the supplier of their software.
Aim of this Funding Round
To get funding, to deliver a stable CPU on a card:-
GPL: Full source code available.
Powerful: 1.5ghz
Upgradeable: A standard layout, which will allow the card to be ejected and replaced.
Cheap: Stable version at $30
Long Term Aim
High-volume production, then the costs will be $15. Yes $15 for GPL-Loving, powerful, packaged CPU Card.
So put this with :-
2000mAh battery $8,
7in 800×600 LCD $15,
resistive touchpanel $5,
main motherboard including WIFI module about $8,
Case about $3
Total of $39. yes, really – $39. So basically, you can see that a mass-volume retail cost of about $80 for a 7in tablet with the Allwinner A10 and a resistive touchpanel would be quite reasonable. Running Debian, with a CPU upgrade only costing $15.
Progress So Far
Rhombus Tech has been established to serve Free Software Developers, entrepreneurs, enthusiasts and Engineers with access to affordable, modern and importantly GPL-compliant hardware. It is a Community interest company – designed for social enterprises that want to use their profits and assets for the public good.
Over the past two years we been contacting and vetting China-based factories, directly, to find at least one which is prepared to work with us. We found one.
We have also found an absolutely great CPU, called the Allwinner A10, which in mass-volume quantities is only about $7: that means that a PCB similar to the raspberrypi with similar features can be made for about $15 (not $25) and, because the Allwinner CPU is an ARM Cortex A8 not an ARM11 it is at least three times quicker than the raspberrypi’s CPU. (A 400-pin highly feature-rich 1.5ghz ARM Cortex A8 with a MALI400 GPU. )
We have full support of the Board of Directors of the Allwinner CPU: they released full source code to us in advance. We have made it available and found it to compile successfully.
We have selected a standard layout, which will fit within 55mm, which large number of pins can be removed by the user without damage. Which will be the cases are already available and which will have a trivial cost in low-volumes. A PCMCIA format.
Complies with GPL – Yes
Powerful – Yes
Upgradeable – Yes
Cheap – Not yet.
Next Steps
The primary reason for using a Community Interest Company for the sale of GPL-compliant products to Free Software Developers is that profits from sales will be re-invested directly into development of further products, with a primary focus of serving the Free Software Community yet at the same time leveraging mass-volume sales opportunities.
But this needs a kick-start. Then the end-product will get cheaper, then profits are re-invested and end-products get cheaper still. The snowball needs a little magic snow to get it started.
Magic Snow required: $13,500
To fund the three stages:-
Unstable (Also know as Sid for all Debian lovers) : $3,500
Testing Stage: $4,000
Stable: $6,000
Long Term Support: Self-funding
Unstable
5 CPU cards available at a cost of $3,500
A initial cost of $2000 per “board development change”. This is the non-recurring expense. This sets up the PCB tooling so further changes cost about $1500. The aim is to have a development board, tweak then have a second set of development boards.
This gives us the hardware only – about 5 development boards available. Time for the 15 Debian developers, already on board to start coding. (Bootloader, Kernel and main software).
Timeframe – AA months
Rhombus Tech to loan the boards to the developers, free as in beer, in return for help with coding.
Testing
100 CPU cards available at a total cost of $4,000 Timeframe – AA + BB months
We have a board, the bootloader work and the kernel is okay. No full Distribution images as yet. If you are a software developer and are basically happy to get involved doing u-boot, debian-installer, ubuntu images a board is suitable to play with at this point. Hard, but not impossible.
Rhombus Tech to loan half (50) CPU cards to developers, free as in beer, in return for help with coding. The other half of the board to be sent as premium rewards.
Stable
250 CPU cards available at a total cost of $6,000 Timeframe – AA + BB + CC months
Rhombus Tech to give 50 boards to developers, free as in beer who helped with coding. The remainder of CPU cards to be sent as rewards.
Long Term Support (Just for Ubuntu lovers)
Timeframe – AA + BB + CC + DD months CPU Cards at less than $30
The CPU cards can then be produced in mass-volume. Sold through Rhombus Tech, with profits used to seed further CPU upgrades.
Rewards
Total funds required for Unstable, Testing and Stable stages: $13,500
Testing CPU Cards – $50 (Aiming for 50 = $2,500)
Stable CPU Cards, with working OS image – $50 (Aiming for 50 = $2,500)
Stable CPU Cards – $35 (Aiming for 200 = $7,000)
Special Rewards
A Rhombus Tech Sticker sent world wide – $5 ($1.50 profit per sticker)
Mention in the source code – $5
A certificate mentioning your contribution to the Small (Free as in Speech) Linux device which can be upgraded. – $10
A testing CPU Card, with your choice of Debian Packages loaded by a Debian Developer – $250
You select the code name for the Unstable Board (legal, ethical names only) – $250
You select the code name for Testing CPU Card (legal, ethical names only) – $500
You select the code name for Stable CPU Card (legal, ethical names only) – $1,000
Then more information came in the for of FAQ [Rhombus Tech, March 25, 2012]
What’s the goal, again?
To create a synergy between the ultra-low-cost Factories and SoC vendors of China with their expertise in Hardware, and Software (Libre) Developers with their expertise in GNU/Linux and other OSes, with a view to leveraging the combination to create affordable and desirable mass-volume products that are GPL-compliant before they hit the Retail Hypermarket shelves;
For those products to be modular, versatile and open, so that they can be upgraded without the environmental waste of throwing away an entire device; for Retailers, Factories and users to be able to keep up with the rapid and increasing pace of technological development;
For anyone to be able to use the products for their original purpose as well as for Educational purposes, Research, Engineering and more.
How will this goal be achieved?
Very carefully, in small steps, having learned from the experiences of the OpenMoko and OpenPandora projects.
Produce very simple EOMA-68-compliant CPU modules which can act as stand-alone computers in their own right (powered via USB-OTG) so that Software (Libre) Developers have something to start working on.
Start designing IO boards.
Software (Libre) Developers help develop the software to run on the products.
Products go to market.
Profit.
Use profits to repeat the process, to the benefit of all parties, including the Software (Libre) Developers.
And… a CIC? really? But those are for Social Clubs!
The rules for CICs are “to not make a loss”, which makes sense for any business. There is no limit on the profitability of a CIC: it’s just that, at the end of each Financial Year, the profits have to be allocated to a charitable cause, or they have to have been ploughed back into the business. A Community Interest Company simply does makes more sense in the context of the goals of bringing Software (Libre) Developers together into this exciting technological area that has previously been dominated by vertical market sales strategies.
Why is the price of the Allwinner A10 EOMA-68 Card $15?
It damn well isn’t! We are getting a massive amount of misunderstandings about this. We have reported that based on estimates from the Reference Board supplied by the Manufacturer of the SoC that the MATERIALS COST is APPROACHING $15 in MASS VOLUME quantities of 100,000 units.
That is excluding a case, power supply (which as the unit can be powered by USB-OTG is not needed), packaging, tax, customs duty, shipping and, most importantly, a profit margin.
Any company has to make a profit, and a CIC is no different. Charities and Not-for-Profit Foundations can get away with not making a profit, but Rhombus Tech is not a Charity.
Profits made will be used to fund Free Software Developers, as well as future CPU Cards and the creation of Reference Design Products: Laptops, Routers and so on, all of which will be done in an Open fashion.
What is EOMA?
It stands for “Embedded Open Modular Architecture”. The concept of modular architecture isn’t new: many companies have divided out CPUs into separate PCBs or modules, but it just hasn’t been done recently, not on a mass-volume scale and not on a user-controllable basis. See the elinux.org EOMA page for more information.
Why re-use PCMCIA??
It’s legacy – nobody makes PCMCIA cards any more: it’s all changed to the PCIe-based “PCI express” aka “ExpressCard” thing. However, it turns out that Satellite TV “Conditional Access Modules” are in PCMCIA form-factor, meaning that the connectors, housings and assemblies are all still mass-produced. So there’s less risk of having someone destroy their CPU card if they force-break the mechanical barriers (see specification for details) but the pricing on parts is still good in mass-volume quantities.
What’s so special about the interfaces on EOMA-68?
The interfaces that have been picked happen to have been around for at least a decade, and the number of pins, including 16 pins of GPIO and including enough GND pins to separate each of the high-speed signals, by a jammy coincidence comes to exactly 68 pins.
RGB/TTL: 28 pins
USB2: 2 pins
I2C: 2 pins
10/100 Ethernet: 4 pins
SATA-II: 4 pins
GPIO: 16 pins
5V Power: 2 pins @ 0.5A per pin
The total comes to 58 pins, and there are 5 groups of GND pins to separate each group. Grand total: 68 pins. jammy or what? More information is available here.
Whoa, wait, PCMCIA is 100ohms approximately!
Yes, we know. It’s not all bad. By a coincidence, SATA-II is 100 ohms and USB-2 is 90 ohms. We think that’s close enough. Absolute absolute last resort: both SATA-II and USB-2 can be ramped down in speed. This would be a bugger, but at least product would work. Other than that: yes it is possible to adjust impedance through careful placement of tracks and ground planes etc.
Bottom line: we’ll just have to pick the right PCMCIA connector supplier, that’s all.
Why is the first CPU that RHT picked a China-based one?
Cost and features – pure and simple. Consumers do not care about Software Freedom – they just don’t. Only Software (Libre) Developers care about Software Freedom. However, GPL Compliance is very very important to RHT, because we do not wish to be liable for GPL violations, and we do not wish our mass-volume Retail Hypermarket Clients to be liable for GPL Violations, either. So, RHT has spent the past two years negotiating with SoC vendors to find one that has the three critical factors of: 1) Cost 2) features 3) GPL Compliance. Amazingly, it was a China-based Fabless Semiconductor Company that first met the requirements. Yes we are looking for more.
Which CPUs have you analysed so far, and why were they rejected?
We have analysed dozens of CPUs. With the exception of the Allwinner A10, none of them really fulfil all of the criteria. This section turned out to be so large that it was moved to its own page: Evaluated CPUs.
So what FSF Hardware-Endorseable options are there?
The Ingenic MIPS jz4760 (700mhz) – $USD 7 in mass-volume
The 600mhz ARM Cortex A8 OMAP 3503 ($19, 1k volumes)
The 720mhz ARM Cortex A8 AM3357 – ($14, 1k volumes and $5 in 100k)
Sadly, none of these CPUs however fulfil the mass-volume criteria of being able to do 3D Graphics or 1080p video. Some of them can do 720p, but that is not enough for commercial mass-volume purposes: it really does have to be 1080p now. 4 years ago, 720p was acceptable: now it isn’t.
These CPUs are listed on the Evaluated CPUs page.
Is this an “Open Hardware” Project i.e. can I get the full schematics?
This is a misleading question: here’s some clarification. The EOMA-68 initiative is an “Open Specification“. That means that anyone can create either CPU cards or motherboards that conform to it. Thus, it is possible for anyone to create an “Open Hardware” compliant CPU card or motherboard.
Rhombus Tech has chosen to work with a small, dynamic factory in China that loved the idea of the “we’ll do the software if you do the hardware” deal. It would be rather a different proposition for us to then ask them to release the full schematics.
Also in development is a 8mm-high (Type III) EOMA-68 CPU card with a AMD 64-bit x86 APU with Dual-core CPU, integrated Radeon 3D Graphics, with full Free Software support.
Bari also has an initiative to turn the Beaglebone or any other ARM SOC or AMD Fusion APU into an EOMA-68 CPU card, if enough people show interest in this happening. Given that the Beaglebone (and other systems like it such as the IMX53QSB, Origen, Pandaboard etc.) schematics are available under an Open Hardware License, the Beaglebone EOMA-68 CPU Card will be “Open Hardware”.
Additionally, given that the Leaflabs Maple is an “Open Hardware” Project, there exists the possibility for the creation of EOMA-68-compliant Motherboards based around the adaption of Leaflabs Maple Boards.
Summary of the above: it’ll happen. (update: 10jan12 – sooner than anticipated!schematics being developed here).
Rhombus-Tech/ allwinner a10/ news
…
24 Jul 2012: Casework for EOMA-68 CPU Card
Titoma Design is delighted to be involved with the EOMA-68 project and has a preliminary design for the first EOMA-68 CPU Card, using the Allwinner A10 SoC. Titoma Design specialises in casework and full product design, and will be more than happy to assist clients to develop products based around the time and cost saving benefits of the EOMA-68 upgradeable design strategy.
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28 Jul 2012: GPIO and Expansion Headers for EOMA-68 CPU Card
A rework of the GPIO and Expansion Headers for the first Qimod EOMA-68 CPU Card has been carried out. Almost all interfaces available of the Allwinner A10 CPU have been made available on the 55x85mm Credit-card-sized CPU Card, including both Transport Streams, SIM Card, PATA, the 24-pin Camera Interface, both 24-pin LCD Interfaces, VGA, Composite Video (CVBS), SPDIF, AC97, I2S, GPS, CAN-Bus, Infrared, and many more. This is in addition to the standard EOMA-68 Interfaces of Ethernet, I2C, SATA, LCD 24-pin RGB/TTL, USB2 and 16 GPIO pins.
The rework involved adding an extra optional 45-pin FPC, which is in addition to the optional 44-pin FPC. The orders page has been updated to reflect the full pinouts, as well as the finalised selection for the 16 EOMA-68 GPIO pins.
…
The most current product information therefore is available on Preorders [Rhombus Tech, July 28, 2012, but preorders are listed from Dec 12, 2011 to Sept 23, 2012]
This is the preorders page for EOMA-68-compliant Allwinner Cortex A8 CPU modules. This product will have full GPL Source Code publicly available, and will be suitable for many purposes including Educational and R&D purposes, a USB-OTG-powered Thin Client, use as a Freedom Box, or as an embedded computer, or in the future to drive products such as Tablets, Laptops, IPTVs and Desktop PCs simply by plugging it in. Some options for hardware that is on the roadmap are described as example motherboards on the EOMA-68 page.
Features
The Allwinner EOMA-68-compliant module will have the following features:
- Approximately Credit-card size format (56mm x 90mm)
- An Allwinner A10, 1.2ghz ARM Cortex A8
- 1gb of RAM
- at least 1gb of NAND Flash (possibly up to 16gb)
- Operation as a stand-alone computer (USB-OTG powered)
- 2160p (double 1080p) Video playback
- MALI 400MP 3D Graphics, OpenGL ES 2.0 compliant.
- HDMI, Micro-SD, Headphones Socket,
- EOMA-68-compliant interfaces (RGB/TTL, I2C, USB2, SATA-II, 10/100 Eth)
- Expansion Header (similar to Beagleboard, IMX53QSB, Origen etc.)
…
These are the available interfaces on the 44-pin [Expansion Header’s interfaces] DIL:
- 2pins: 1x USB-2
- 8pins: 5-pin AC97 shared with 8-pin I2S Signals.
- 2pins: PWM0 (PB2)
- 4pins: TV-Out, VGA-Out
- 4pins: 4-wire Resistive Touchscreen
- 10pins: LVDS0 (multiplexed with LCD0)
- 10pins: LVDS1 (multiplexed with LCD0)
- 5V and 3.3V power
…
Due to multiplexing on the Allwinner A10, the following interfaces are also available on the PCMCIA connector via the 24-pin RGB/TTL pins (WARNING: non-EOMA-compliant).
- IDE (PATA)
- 24-bit Camera Sensor
- 20 External Interrupts
- 8×8 Keypad Interface
- 2 full UARTS with RX,TX,CTS,RTS
- CAN-bus
- 2 PS/2 interfaces
- SD/MMC 3.0 Ultra-High-Speed Class, UHC-I
Further multiplexing also allows the I2C interface to be switched over to two extra GPIO pins (WARNING: non-EOMA-compliant).
Also, the pins on the Micro SD/MMC interface can also be switched over to JTAG and a UART. With a special PCB with a Micro SD/MMC slot on the end it is possible to perform debugging of the device, live, without opening it up.
The Infrared Interface on the expansion header supports the following data formats:
- MIR FIR IrDA 1.1
- 0.576 Mbit/s 1.152 Mbit/s Medium Infrared (MIR)
- 4 Mbit/s FIR IrDA 1.4
- CIR
These are being considered:
- 2pins: 3.8v Battery Connection, on separate connector
- 3pins: Reset and Power, on separate connector
- 3pins: u-boot select, on separate connector
Pricing
Regarding pricing: the hardware NREs from the factory are $USD 2,000. Therefore, based on the number of committments so far (23 as of 2011Dec12), pricing looks set to be around $100. By the time the number of preorders reaches 30, that will be around $75 (30 reached as of 2011Dec17). (Update: as of 2012Mar01 the alpha units have reached 141 and it’s down to $41 per unit assuming NREs of $2,000 and component costs of $30. Please note: we do not yet know the unit cost! this is entirely preliminary!).
The mass-volume (100k units) cost will be somewhere around $15: the more committments received, the closer the price will get to that. One expression of interest has been received for 1,000 (stable) units: a pricing evaluation request is outstanding with the factory and will be reported as soon as it is received.
Please note: this cost excludes a case, power supply, packaging, shipping, tax, customs and import duty. and profit.
Software Freedom Information
Regarding Software Freedom: the caveat regarding this CPU is that it requires ARM-proprietary libraries for the 3D Graphics (as does virtually every single suitable consumer-grade embedded SoC on the planet with the almost exclusive sole exception of the Ingenic jz4760 and some of the TI ARM Cortex OMAP and Sitara SoCs). However, simply not using the proprietary MALI 3D GPU does not impact any other functionality in any way.
(update: MALI 400MP is being reverse-engineered)
Yet to be determined is how to program the proprietary 2160p MPEG decoder, but through a preliminary examination of the GPL Source Code it would appear that the drivers are publicly available. However, this CPU does have NEON, so can be used for Software Decode of Open CODECs.
Overall: if this module is not for you, an AM3357 module may be more suitable.
[committments so far:
– 23 as of Dec 12, 2011
– 30 as of Dec 17, 2011
– 141 alpha units as of Mar 01, 2012
large (=5 or more) number of units on preorder after Mar 01:
– 215= 43×5
– 762=9×10+1×15+1×18+3×20+1×30+1×49+2×50+4×100
– 3466=1000+1000+1000+466
– 75000=15000+50000+10000
so the whole project looks quite feasible from the point of view of achieving the $15 unit cost for which 100K units should be on order]
Rhombus-Tech/ allwinner a10/ news
6 Sep 2012: PCB design completed for EOMA-68 CPU Card
Many thanks to Wits Tech for completing the PCB design: the board layout and GERBER files are done. This brings the A10 EOMA-68 CPU Card one step closer to reality. The next stage is to get initial samples made up, the first script.fex created and a first boot completed.
[Wits Tech with products such as: MID and PCBA, e-book, smart MP4, 1080P high-definition MP4, 768P, 1080P harddisk player, IPTV, Google TV-BOX and so on]
Following on very very quickly from this, and driving a rather fast development schedule, is a commission from a client to convert an existing x86 laptop (1280×800) over to using the new A10 EOMA-68 CPU Card, and to provide 25 working prototypes for a Trade Show. Luckily, as the CPU Card is completely independent of the I/O Board, separate teams can focus on the development tasks.
Other news coverage:
…
Marketing Strategy [Rhombus Tech, May 1, 2012]
- TTM – Time to market lead
- Open versatile Common Platform
- EOMA One
Three ways EOMA helps to bring new products to market faster and save money
EOMA – From month to weeks TTM reduction
ODM
One platform, many Distros: Vanilla GNU/Linux, Android etc.
Software comes pre-flashed by default
One module, many applications
Instant upstream compatibility with Linux GIT treeOEM
Need for software expertise is removed from OEM side
BOM reduction X 5
Access to bigger market platform
Readapting the design is as easy as changing one moduleSystem Integrators
Quick access to many ODM designs
Plug and play
LOW TTM and high flexibility
Update process is made trivial and fasterReasoning behind the Marketing Strategy
EOMA is platform for the whole industry that benefits the whole “food chain”.
Its good for ODM because they will have upstream support and they will be able to support their own clients better.
For OEMs the benefit is that they will no longer need to deal with software by themselves, it simplifies production and logistics, lowers production run times thus less cost of capital.
For integrators, the benefit is less obvious, but its also lower time to market, increased ability to reuse existing designs.
In general, the idea is that EOMA uses open source principles to increase efficiency across the industry. EOMA will be doing to computer hardware market the same thing what linux has done to server OS market.
Rhombus Tech Presentation [Rhombus Tech, March 12, 2012]
what is the project.
EOMA is an initiative to separate the platform from the widget
EOMA module is System-On-Module that will come in standardized 68 pin package
It can utilize most of low cost SoC of your choice. At current stage, Allwinner A10 is the favoured chip.
The first EOMA-68 CPU Card is Cortex A8 based design
Module provides I2C, USB, Ethernet, SATA, 8 bit ttl rgb (display), and gpio on remaining pins
At current stage Rhombus plans to reinvest all profits into platform development and improvement
what is the advantage and scenarios.
Rhombus facilitates upstream integration with linux and other major OSS projects.
OEMs receive standard platform that greatly reduces time-to-market.
OEMs no longer need to contract ODMs or have extensive software expertise to make a worthwhile product.
what is the latest status of this project.
Rhombus is in process of getting pre-orders
lkcl [Luke Kenneth Casson Leighton] is working with manufacturers to start production
See also: Embedded Open Modular Architecture This slideshow could not be started. Try refreshing the page or viewing it in another browser. “The SoC (system on a chip) manufacturer provides a reference design including a BSP. The reference design is bought by original design manufacturers (ODMs), usually under NDA (which is the first GPL violation). The ODMs license their modifications to factories and give them binary-only distributions, a second GPL violation. “The factories have absolutely no software engineers. They do not even know what source code is, let alone what an ‘Apache’ (licence) or a ‘GPL’ is. The factories sell product to importers; they in turn sell to wholesalers who sell to retailers and from there it is sold to end-users.” Leighton says it is absolute hell to chase a GPL violation back through this chain, fighting ignorance and arrogance across international boundaries every step of the way. “After trying to be patient with this process, several times, we have concluded that it is a complete waste of time to pursue GPL violations just to do a deal, selling hardware product that is GPL-compliant: it’s too late by then.” … Tom Cubie’s Public Profile – Ushi Work Experience 嵌入式软件工程师 [Embedded software engineer] June 2011 – Present (1 year 3 months) [Software] Design Engineer Education: websites: 1. www.cubietech.com 2. http://cubieboard.org but the content is the same at the moment Zhuhai [Wikipedia] Introducing the MK802 FreedomStick [FreedomBoxBlog, ] A good place to buy an A10 device is “The Cubies hacker shop” at: Tom Cubie (alias hipboi) is very actively involved in getting GNU/Linux working on the A10. Just like Luke he is planning to release open hardware based on the A10. There is a Cubieboard wiki page [Aug 4 – Sept 24, 2012] on linux-sunxi wiki from June 30, 2012. This wiki is: CedarX wiki page [July 14 – Sept 16, 2012] on linux-sunxi wiki: Allwinner A10 devices [XBMC Wiki for collaborative documentation of XBMC Media Center and related topics, May 19 – Sept 6, 2012] Set-top boxes Other MeLE website: http://www.mele.cn/ (Chinese) or http://en.mele.cn/ (English) Congratulation to Mele’s 8th Anniversary [Mele press release, Sept 4, 2012] About Mele [Dec 20, 2012]: And the latest report about Nufront: China fabless: Nufront ventures beyond tablet chips [EE Times, Nov 6, 2012]
More background: British company looks to create cheap, open platforms [iTWire [Australia], Jan 10, 2012]
A British community interest company, Rhombus Tech, is part of the way towards developing a micro-computer on a circuit board, much like the Raspberry Pi.
The man behind the effort, Luke Kenneth Casson Leighton, says his product will be much more powerful, having an ARM Cortex A8 CPU, which is 3x times faster than the 700mhz ARM11 used in the Raspberry Pi. The mass-volume cost target being aimed for is $US15 and it will be available for educational purposes as well as being a part of a retail product line.Leighton (pictured above), who is a free software developer, is also attempting to bring together FOSS developers with Chinese hardware makers, so that each can use the other’s creation and benefit from doing so.
He has ambitious plans for Rhombus Tech to help build a number of devices, including a tablet, using the same method – harnessing the effort of free software developers and Chinese hardware manufacturers.
One thing he sees as a plus in the tablet effort is that it will create an Android system that conforms to the norms of the GPL and be easier for FOSS developers to deal with. At present, there is a plethora or tablets and many of the manufacturers, who are the vendors as well, are unaware of GPL requirements or else do not care.
“We are acting as the catalyst to invite other people to make such products by inviting them to participate, through the EOMA-PCMCIA initiative – simplified modular upgradeable hardware – and putting them in touch with Software (Libre) Developers,” Leighton says.
“We’re not funding the products, we’re doing deals with factories and with SoC fabless semiconductor companies, offering them free access to free software developers, asking them in return that they not charge us for their hardware engineering time.”
Leighton says the efforts he is making are both altruistic and profit-oriented. “The fundamental principles behind Software (Libre) are more important to me than profit, but no profit gets you nowhere, so we’re setting out to do something rather unusual: merge both worlds.
“I’ve learned the lesson: you can’t make money from selling software (Libre) as a service in a world which has been Pavlov-trained to pay for boxed product and zero for the service. Patronage is dead – I’m the lead developer of – or have been the lead developer of – quite a number of free software projects, and the amount of money I’ve received through donations since 1996 is under $1000 in total. That’s under $65 per year, despite saving hundreds of thousands of businesses vast sums of money in proprietary software licence fees.
“Instead, we’ve made the decision to profit from sales of hardware, with GPL-compliant software (Libre) pre-installed that actually does the job, masquerading as ‘yet another mass-volume product’ and beating the (GPL-violating) competition on price, convenience and usefulness.”
Leighton has been at this game for nearly eight years. “I started contacting companies to get the source code of Linux phones – the Shanghai-based E28 smartphone, for example – back in about 2004,” he says.
“It was a complete failure. I just had to let the GPL violations go. Instead I focused on reverse-engineering HTC’s smartphones. Then Android came along, some years later, and the situation has clearly got worse, not better.”
But there are some upsides to the plethora of Android devices out in the market. “At least the cost of hardware came tumbling down. However, because of Android and because of the endemic GPL violations surrounding Android, this fantastic hardware, which could potentially be used for so much more than it is, is basically stuck in dead-end roles such as ‘browsing uh few web pagiz’, ‘wotchin uh film’ and ‘playing a few gamez like angry burds’.”
Leighton has had some interesting early experiences trying to achieve his goal, learning through his own mistakes. “As the very first experimental ARM11 (non-x86) Linux-based (non-Android), laptop (non-tablet) hardware began to make its way out of China-based R&D companies, we reached out to them. The first was the Chitech CT-PC89E which turned out to be a complete nightmare, but an important learning curve.”
“Over the course of several months, and after 18 months of thinking about what the hell went wrong, empirical evidence tends to suggest that the development of the CT-PC89E was PRC Government-funded, and was supposed to be used for monitoring of PRC citizens, in a hardware-locked fashion, running an ARM-based PRC-Government-funded port of Red Flag Linux.”
Leighton says that he was “naively” intending to sell this ARM-based laptop in Europe and asked for versions of the laptop that would support European-based EDGE/3G modems. All that he was offered were China Telecom WCDMA modems that would only work in China.
Since source code could not be obtained, he took recourse to reverse-engineering. “We reverse-engineered the Linux kernel (discovering some very poorly-designed ‘security’ measures along the way), installed Debian on it, and an associate of ours took it along to their office and presented one of their machines running Debian/Lenny to them. They went extremely quiet.
“The poor girls at the Chitech factory in China, who have absolutely no software engineers but just ‘make hardware’, were so scared of what they learned, through us, that they pulled the product from their portfolio. We were the first – and last – people to ever order samples. That was over two years ago, now.”
Leighton was not put off, however, and persisted in trying to make headway. Next we decided that this was a ridiculous situation, and began a process of contacting more than 200 factories in China to find one that was willing to do a deal. Two years later, we found one. It actually took going over to China and having face-to-face meetings with over 30 companies even to find that one factory.”
His deal with the factory basically boils down to “we won’t charge you for software engineering if you won’t charge us for hardware engineering“.
“As these factories often have to pay large sums of cash upfront for BSPs (board support packages) and then have to also pay to have them customised so that the factory at least has ‘some’ unique selling point and they ‘still’ end up with a GPL-violating binary-only firmware blob, it’s a good deal for them,” he says.
The problems Leighton has faced make for interesting reading – though they were anything but interesting at the time when he encountered them.
“We’ve bought samples from factories, shipped some of them to potential clients, requested the GPL source code and been denied access to it, in direct violation of the GPL,” he says. “Often we were told that we had to place orders for 20,000 units in order to be given the source code; we told them absolutely not, why the hell would we place such a massive order for an untested product that didn’t do the job that the client needed? In the cases where product was shipped to potential clients prior to non-receipt of the GPL source code, this was incredibly embarrassing for us.”
What he has learned is that there is a long chain of people involved, with communication breakdowns and GPL violations in some cases beginning right at the start of the chain.
Instead, he has decided to do things a different way. “We are looking to work with the factories and with the SoC vendors, being involved right down the chain, keeping software (Libre) developers involved and informed along the way as well, such that the products, when they reach the shelves in Europe for example, are fully GPL-compliant before they even get there.
“That involves finding a SoC company, a factory and software (Libre) developers who will trust us, as well as finding a hypermarket retail store in Europe that will trust us!”
Despite all these issues, light is visible at the end of the tunnel. “We’re at a critical phase where we’ve managed to convince our first China-based factory of the value of a ‘we won’t charge you for software engineering time if you won’t charge us for hardware engineering time’ deal. The CPU that we’ve found is an ARM Cortex A8, it runs at up to 1.5ghz, it’s an absolute corker, and it’s only $7 in mass-volume. That means that a PCB that’s equivalent to the Raspberry Pi in size and features could be manufactured for a whopping 40 per cent less money – only around $15 instead of $25, and yet it would be at least 3 times faster than the Raspberry Pi (which uses only a 700mhz ARM11),” Leighton says.
“We have the full support of the SoC fabless semiconductor company, Allwinner: they’ve given us full access to the GPL source code and the complete BSP; from a small-scale series of announcements (we’ve kept it to the debian-arm mailing list so far) we have more than 30 software (Libre) developers interested in buying first alphas of the ‘bare-bones’ EOMA-PCMCIA-compliant CPU card using Allwinner’s CPU card.”
While Rhombus Tech’s first product will be just a credit-card-sized PCMCIA CPU card that can run as a USB-OTG-powered computer, Leighton says that, provided there are sufficient advance orders, “for a 10-inch laptop, with Android, we’re looking at mass-volume pricing of around £90, retail, in the UK (and about £125 for a 12in one). For a 7-inch tablet (with the lower-quality but lower-priced resistive touch screen), we’re looking at around £50 retail.”
He says the only reason this is achievable is because there was no £250,000 to £500,000 up-front cost on development of the product – not on the cost of the hardware, and not on the cost of the software. The products will all be fully GPL-compliant.
“What’s even better is that when a new, or faster, or cheaper (or all three) CPU comes along, then rather than force people to throw away the entire device, we will be in a position to pay a factory to get a new EOMA-PCMCIA-compliant CPU card out in record time, and then just sell that through the same channels, as a user-installable ‘upgrade’ to their ‘existing’ laptop, tablet, desktop, internet TV, whatever it is that’s been designed to take EOMA-PCMCIA-compliant CPU cards at the time.
“With the embedded computing market moving so rapidly, we want to give both factories and users the opportunity to keep up-to-date without feeling guilty about land-fill. And, the GPL compliance and involvement of the free software community means that the devices will always be ‘unlocked’, and will serve both their original purpose as well as being a low-cost open educational and R&D platform.”
Rhombus Tech has just five people involved, all operating on a commissions-only basis. The relationships between the five go way back, with the company being set up just two years ago.
Luke Kenneth Casson Leighton, CTO at Rhombus Tech [LinkedIn]
Current: Rhombus Tech [since Nov 2011], Pyjamas, VizzEco Inc.
Previous: NC3A, iYonder, BZflag
Education: Imperial College LondonI’m a free software advocate, technology specialist and technology researcher.
My vocation is to seek out, understand, document and then explain all the archaic, esoteric and obscure technologies i come into contact with. So far, that has led me to network-reverse-engineering of Windows NT 4.0 Domains; reverse-engineering the High Tech Corporation’s Wince Mobiles in order to run Linux on them just for fun; Adopting Python as a core programming skill before it became fashionable; Writing an XML-based programming language before _that_ became fashionable.
The upshot of all this is that there really isn’t very much in Computing Technology that I would particularly find difficult – or if it _is_ difficult, I’ll be able to tell you why; and if I’ve not encountered a technology before, I’ll tell you so, up-front, and then go find out about it for you. So if you need advice on what technology can do for you, or if you need to know if something is possible, you only have to ask.
Also, I am able to advise on best working practices in Software Development, as I have done a significant amount of Software Engineering and Project Management in Free Software. Free Software leadership is a little different from traditional Project Management, in that the people you’re leading don’t actually have to listen to you! So if there is a delicate situation that needs handling, and your current approaches simply aren’t working and you still need to get results, you might want to consider asking for my help and advice.
Rhombus Tech preparing to launch a PCMCIA-sized computer module for tablets, notebooks, more [Liliputing, Sept 8, 2012]
Rhombus Tech is working on a project to develop a computer module that supports open source software and which can be used in a variety of devices.
The idea is that you’ll have a PC-on-a-board that works a bit like a Raspberry Pi or MK802 mini PC. But instead of using this as a standalone computer, you’ll be able to slot it into a wide range of devices including tablets and notebooks.
So instead of replacing your laptop when the CPU starts to feel outdated, you’ll be able to pull out the module containing the CPU and other vital components and slide in a newer model.
The first Rhombus Tech design is called the A10 EOMA-68, and it’s expected to be a PCMCIA card-sized PC module powered by an Allwinner A10 ARM Cortex-A8 processor.
That’s the same chip used in the Mela A1000, MK802, Mini X, and a number of other inexpensive Android tablets, TV boxes, and other devices.
In fact, members of the Rhombus Tech team were responsible for the first builds of Ubuntu Linux that were able to run on the Mele A1000… which led to a number of developers porting Ubuntu, Fedora, Puppy, and other Linux-based operating systems to run on Allwinner A10 devices such as the MK802.
Right now the A10 EOMA-68 is still in the planning stages, but Rhombus Tech announced that there’s now a PCB design in place, and the next step is to produce samples that can be used for testing and demonstration purposes.
Tom Cubie’s role in the initiative and elsewhere:
Tom Cubie cubieTech co-founder
China’s Mainland
– Guangdong – Zhuhai >>>>>>>>>
Industry: Semi-conductor
珠海全志科技 [珠海Zhuhai全志科技Allwinner Technology] (100 ~ 499)
ARM Linux BSP 内核开发[Kernel development]
Imagination Technologies Ltd.
August 2010 – June 2011 (10 months)
HUST [Huazhong University of Science and Technology]CUBIETECH LIMITED or in more detail
方糖科技有限公司
Domicile: Hong Kong
Type: Private, ltd by shares
Formed: 29-Aug-2012
HK companies registry: 1793090
Zhūhǎi (Chinese: 珠海) is a prefecture-level city on the southern coast of Guangdong province in the People’s Republic of China. Located in the Pearl River Delta, Zhuhai borders Jiangmen to the northwest, Zhongshan to the north, and Macau to the south. Zhuhai was one of the original Special Economic Zones established in the 1980s. Zhuhai is also one of China’s premier tourist destinations, being called the Chinese Riviera.
…
Zhuhai became a city in 1979, a year before it was named as one of the first Special Economic Zones (SEZ). The neighboring city of Shenzhen became the first Special Economic Zones of the Special Economy Zone in 1978. The implementation of this policy is logical as Zhuhai is located on the strategic position facing Macau, in the identical fashion by which Shenzhen faces Hong Kong. This enabled the Chinese Central Government to open another “window” in front of Macau. Even though the city is situated at the southern end of the Pearl River Delta area, Zhuhai acts as one of the central cities in the Pearl River Delta according to the new general urban plan approved by the State Council. The implementation of Special Economy Zone means that the city will grow as a powerful modern port city, science and education city, scenic and tourism city, and as a regional hub for transportation.
Recently a whole range of cheap Android devices have become available, all powered by the Allwinner A10 SOC. Thanks to the way A10 devices boot they are very easy to hack. All that is needed is a bootable SD card. How to make such a card is no big secret, and there are now multiple SD card images available. You can boot for example Lubuntu or Debian instead of Android. One A10 device, the MK802 stick computer, is almost ideal for a small home server. I bought one to examine its potential for the FreedomBox.
…
What A10 devices are available?
The A10 is used in a whole range of products, from tablets to TV multi media boxes to stick computers. The most popular devices are:
The $70 Mele A1000. This is a complete computer. Some specs: 512 Mb RAM, SD slot, support for SATA Hard-disks, connectors for multiple types of monitor (VGA/HDMI/Analog video), 10/100 Ethernet connector, WIFI, Audio out and two USB host ports.
The $65 MK802. This is a stick sized computer (0.47 x 3.46 x 1.38 inch) that has (of course) less connectors than the Mele A1000. The specs are: 1024 MB RAM (older versions 512 MB), microSD slot, HDMI video out, WIFI, one USB host port and one USB-OTG port.
You will probably agree with me that the $70 Mele is a better deal – the MK802 is overpriced. It would not surprise me if the MK802 drops in price to about $40 in the near future.
…
Links.
Here are some links to start with if you are interested in A10 devices:
Much pioneering work on the A10 was done by Luke Kenneth Casson Leighton. Luke is the one behind Rhombus Tech. A Community Interest Company, which is developing an open hardware Computer-on-Module that uses the A10. Lots of info can be found at:
http://rhombus-tech.net/allwinner_a10/
http://www.aliexpress.com/store/511685from HERE: Tom Cubie Jul 15, 2012 +3
Hi, i am Tom Cubie, i have a shop on aliexpress selling allwinner powered devices. I am also the developer who ported u-boot to A10 and contribute to the A10 kernel source code. Welcome to my shop: http://www.aliexpress.com/store/511685
Mele A1000 70$(A10, 512MB, 4G)
Mele A2000 75$(A10, 512MB, 4G)
Smallart uHost 70$(A10, 1GB, 4G)
[these are set-top boxes]
http://cubieboard.org/Both the SD card images i used come from the miniand.com website. Miniand sells A10 devices and has a busy forum at:
https://www.miniand.com/forums/
MK802 images are available at:
https://www.miniand.com/forums/forums/development/topics/mk802-guides-and-images
Another company that sells the MK802 and other A10 devices is Rikomagic.
http://www.rikomagic.co.uk/
forum:
http://www.rikomagic.co.uk/forum/viewforum.php?f=2&sid=3c3ef83dd83af61f8af6a82c6b28cf47
Someone named gnexus has a very interesting site about A10 devices:
http://a10linux.org/
Last but not least – i enjoyed the info at Jeff Doozan’s site.
http://forum.doozan.com/list.php?6
Android-powered Cubieboard is already sold out [TG Daily, Sept 11, 2012]
We first covered [Sept 3, 2011 – bit the first public info was available from CNXSoft on Aug 31, 2012] the Android-powered Cubieboard – which is targeted at devs and modders – last week.
The uber-mini developer board is priced at a rather sweet $49, so one really can’t avoid drawing comparisons between this little device and the wildly popular Raspberry Pi.

However, the little Cubieboard boasts a faster processor, more memory and integrated storage. The first Cubieboard prototypes were offered for $49 plus shipping (from China) on AliExpress – but have already sold out. [e-mail address be given on a cubieboard page]
Here’s a quick rundown of the Cubieboard specs if you missed it the first time around last week. The device is powered by a a 1 GHz Allwinner A10 ARM Cortex-A8 processor paired with Mali 400 Graphics. Cubieboard also features 512 MB of RAM and 4 GB integrated flash storage. Unsurprisingly, a souped-up version of the board is reportedly in the works and will be loaded with a total of 1 GB of RAM.
The dev board is also equipped with an HDMI output, dual USB ports, an SD card slot for memory expansion, and other expansion pins and connectors for adding peripherals. Although the Cubieboard does sport an integrated Ethernet jack it lacks integrated Wi-Fi. As such, one of the available USB ports will have to be given up for a dongle – if wireless access is required. Soldering is a must if you want to use any of those header pins for additional accessories.
Originally, there was no indication that the bare-bones Cubieboard was equipped with 4 GB of flash storage, a feature which will make the already attractive system even more appealing to devs and modders.
Cubieboard is capable of running Android (2.3 and 4.0), as well as multiple flavors of Linux.
dedicated to all software and documentation related to hacking sunxi based devices and to thedevices themselves and is maintained by the arm-netbook community.
sunxi represents the family of ARM SoCs made by Allwinner Tech. in Zhuhai (Guangdong, China). The most popular sunxi SoC model is the Allwinner A10 (aka sun4i) and the Allwinner A13 (aka sun5i). Their predecesor was an ARM9 named Boxchip F20 (sun3i) and their successor whose specs are currently unknown, will be the sun6i.
Main components of the A10 / A13:
The A13 is a cheaper version of the A10. It lacks HDMI and SATA and is primarily targeted towards tablets.[1]
…
Featured Community Hardware
Open Source Hardware
CedarX is Allwinner’s multimedia decoding technology. It is composed of several parts, including:
A hardware video decoding unit
Proprietary libraries to communicate with the hardware unit
Glue code to use those libraries on an actual system with video playback capabilities (e.g. Android)
Benefits
Efficient use of system resources when decoding multimedia.
Allows small ARM systems to playback high resolution/bitrate multimedia content, which wouldn’t be possible using software-only decoding.
Disadvantages
The proprietary libraries have no clear usage license.
The android glue code is implemented as a “media player” (parallel to stagefright) instead of as OMX components.
This media player has limitations when it comes to playing back content pointed to by Android URIs and some web-based content.
There is no glue code for any other multimedia frameworks on GNU/Linux systems. The use of OMX would’ve rendered this a non-issue, with existing projects like GstOpenMAX.
Integration
Reverse Engineering
On June 15 2012 Iain Bullard started reverse engineering the proprietary libraries.
open_cdxalloc as an free reimplementation of Allwinner‘s libcederxalloc.a.
CedarXWrapper as a LD_PRELOADed wrapper to help understanding the proprietary libraries.
CedarXPlayerTest as a basic player to use when testing.
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Mele A1000/A2000
![]()
Mele A1000 is the same hardware and specs as the Mele A2000. The case design is slightly different, and the A1000 only has 2GB of internal flash formatted, but still has 4GB of internal flash total (should be able to be reformatted to use full 4GB).
The Mele units appear to have the most ports available of all the Allwinner A10 set-top/TV boxes, including SATA (normally accessible from a top “dock” for 2.5 HDDs, but can also be accessed from plugging an SATA cable to the main board inside.)
http://www.dealextreme.com/p/mele-1080p-android-2-3-internet-tv-set-top-box-w-wifi-optical-3-x-usb-hdmi-av-lan-sd-119913
http://www.aliexpress.com/product-fm/532332455-Mele-A1000-TV-box-Allwinner-A10-hackable-device-wholesalers.html
http://www.cnx-software.com/2012/04/08/mele-a1000-android-2-3-stb-unboxing-and-review/
Mele A100
Same as the A1000/A2000, but lacks an SATA dock/connector.
MK802
![]()
Some units have 512MB of RAM, while others have 1GB of RAM. Has a female mini HDMI port, but comes with a short miniHDMI to full sized HDMI cable. One USB B port, and one USB mini OTG port that can also act as a USB host port with included adapter, or be powered by the mini USB port. DC power connector. Internal wifi. MicroSD card slot.
DX.com has a listing for a “AK802” that appears to be an identical unit to the 1GB RAM version.
http://www.ovalelephant.com/p-2059-mk802-mini-pc-android-linux–1gb-ram (U.S.A)
http://www.aliexpress.com/product-fm/563764893-New-released-Android4-0-IPTV-google-tv-smart-android-box-allwinner-A10-Model-MK802–wholesalers.html
Mini X
![]()
Might be called Mini X, H24, or even the Mini Xplus (for legal reasons, apparently). All three are the exact same hardware. Has HDMI and analog video (composite?), two USB ports, one microSD card slot, IR sensor (most should come with a remote), removable wifi antenna, DC power connector (5 volts). Can be powered by included DC adapter, USB to DC cable (not included) or a male-to-male USB cable on the USB OTG port. Similar to the MK802, some units have 512MB of RAM, while others have 1GB of RAM.
http://www.pineriver.cn/eshowProDetail.asp?ProID=1531
http://www.dealextreme.com/p/mini-android-2-3-hd-1080p-network-media-player-w-wi-fi-hdmi-usb-av-tf-blue-134679
Smallart UHOST
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Comes with a motion activated remote. Male HDMI port is directly on device. Size: 120mm x 50mm x 13mm. 1GB RAM. Built-in wifi b/g/n. Has one USB host port, and another microUSB port that turns the device into a USB drive. This microUSB port also seems to provide power to the device. Micro SD card slot. Mic jack and what seems to be an on-board mic (?).
Also sold as “Oval Elephant” from Oval Elephant.
http://www.smallart.com.cn
http://www.aliexpress.com/fm-store/511685/0-583304547/Smallart-Uhost-Allwinner-A10-hackable-device.html
http://www.ovalelephant.com/p-2062-mini-pc-android-linux-linaro-a10-chip-1gb-ddr3-ram
Gooseberry Board
![]()
HackBerry
![]()
1 GB RAM, 4GB internal flash, SDHC slot, 2 USB 2.0 ports, 10/100Mbit ethernet, wifi: 802.11 b/g/n, HDMI video out, composite video out, audio in minijack, audio out minijack, IR sensor.
http://www.cnx-software.com/2012/07/17/hackberry-allwinner-a10-development-board-with-1gb-ram/
https://www.miniand.com/products/Hackberry%20A10%20Developer%20Board
Cubieboard
1G ARM cortex-A8 processor, NEON, VFPv3, 512KB L2 cache, Mali400, OpenGL ES GPU, 1GB DDR3 @480MHz, HDMI 1080p Output, 100M Ethernet, 4GB Nand Flash 2 USB Host, 1 MMC slot, 1 SATA, 1 ir, 96 extend pin including i2c, spi, lcd, sensors, ..



Shenzhen Mele Digital Technology Ltd. is a global leader for design and manufacturing of internet High Definition (HD) multimedia terminals and a system solution provider for customers worldwide.
Shenzhen Mele has been leading the trend of introducing multimedia internet devices and applications into living rooms. Shenzhen Mele’s forward-looking market research, proven technological expertise and acumen, mature and efficient development process, ever-expanding manufacturing capacity and capability, rigorous quality assurance measures, enables Shenzhen Mele to win competitions by product innovation, feature differentiation, and time to market. Shenzhen Mele has a long history of successful track records of providing Original Product-planning Manufacturing (OPM) services and Original Design Manufacturing (ODM) services to our premium brand customers globally, and providing internet multimedia terminals with Shenzhen Mele’s own brand to our consumers in China.
Shenzhen Mele’s multimedia terminal products manifest the direction of digital evolution of future home. Shenzhen Mele’s products integrate internet applications, local area network (LAN) content browsing and sharing, data storage, data transport, HD multimedia playback and recording, HD digital TV playback and recording, multimedia home theater system, multimedia player and DVD combo, SoundBar multimedia player, camera and mobile phone etc. Shenzhen Mele’s system solutions include remote content distribution, device configuration and management, and product and feature customization for service providers, and remote data transport and content management service for end customers.
Shenzhen Mele is devoted to Complete Customer Satisfaction (CCS). We provide 7×24 around the clock services. We always solve customer issues by investigating root causes and addressing source of a problem. We strive for daily improvement and continuous progress in our course of pursuing perfectionism. Our corporate vision, our corporate social responsibility, and our down-to-the-earth working style of “starting from me” motivate our staff to work harder and smarter everyday. We sincerely believe that Innovations Enriches Quality Life.
8. The Nufront challenge coming from inside
Information about the latest tablet SoC contender Nufront, also posing the greatest challenge to Allwinner for the next year as it stands now (as of Nov 1, 2012):
– Nufront Announces Taishan Platform Targeting Mobile Devices Market [Nufront press release, May 7, 2012]: “The NS115 mobile computing chip, a dual-core ARM Cortex™-A9 MPCore™ processor up to 1.5GHz and Mali™-400 MP GPU implementation, features 1080P HD encode/decode and support of Android 4.0.”
– NUFRONT NS115 dualcore chipset – ARM at Computex 2012 [ARMflixYouTube channel, June 14, 2012]
– $81 Nufront NS115 ARM Cortex-A9 Dual-core 7″ 1024×600 IPS Tablet by Xusit [Charbax YouTube channel, Oct 28, 2012]
– Nufront and ARM Extend Partnership to Provide OEMs with Competitive Solutions for Next-Generation Smartphones, Tablets and Smart-TVs [joint ARM and Nufront press release, Sept 24, 2012]: “Nufront licenses latest ARM Cortex-A15 Processor and Mali-T658 GPU technology to drive innovation and address consumer demand for advanced features”
– Nufront licenses cores from Ceva, Vivante [EE Times, Sept 8, 2011]
– Interview with Nufront: “Windows RT will take away market share from notebooks” [ITProPortal, Oct 17, 2012]: “When do you expect Nufront to bring out (a) its first Cortex-A15/Mali Midgard products (b) products based on your Vivante/Ceva license? We are targeting the end of 2013.
Why is it that Nufront is not as popular as rivals such as AllWinner, VIA, Mediatek, Rockchip especially at the lower end of the market? We started from dual core system-on-chips, and dual core SoCs are going down to low end but not yet, it’s still single Cortex-A8 everywhere, while we believe the dual core A9 will go to the low end by the end of this year, and we will definitely be there, we are ready.”
– ARM Technologies Power Nufront’s First Computer System Chip To Reshape Laptop Market [Nufront press release, Sept 14, 2010]: “NuSmart™ 2816 is the world’s first chip to integrate a 2GHz dual-core ARM Cortex-A9 processor, a multi-core 2D/3D graphics processor, 64bits DDR2/3-1066 memory controller, 1080p multi-format video engine, SATA2 controller, USB2, Ethernet, together with general I/O controllers. By leveraging the multi-layer hybrid interconnection technology, multi-level fine grain power management technology and advanced 40nm manufacture process, NuSmart™ 2816 is very energy efficient consuming less than 2 Watts when running at 1.6GHz.“
– Ubuntu Adds Sparkle to Nufront Laptops at CES [PCWorld, Jan 7, 2011]
– From ARM.com: POP™ IP > Cortex-A9: “Nufront was the first company to produce an SoC with the Osprey hard macro running at 2.0 GHz (typical conditions).” … Osprey: ARM Announces 2GHz Capable Cortex-A9 Dual Core Processor Implementation [ARM press release, Sept 16, 2009]: “The Cortex-A9 hard macros and the corresponding optimized physical IP used to develop the speed-optimized and power-optimized implementations are available for license today with delivery in the fourth quarter of 2009.” … Partnership in action > Nufront CSC: Vince Zhou, General Manager at NUFRONT CSC on their adoption of ARM’s Cortex-A9 processor and Mali multi-core graphics processor technology, and high-performance Physical IP “... For 2011, we have set a target that $250 laptops will be widely available in China and rest of the world, based on the NuSmart 2816. Together with our partners we have an opportunity to create low-cost laptops with low-energy chips that drive the new computing era.”
– ARM announces ‘Osprey’ A9 core as Atom-beater [EE Times, Sept 16, 2009]
– Nufront released the second generation of NuSmart2816 series chip – NuSmart2816M [Nufront press release, Feb 13, 2012]
– Nufront at Computex 2012 [Charbax YouTube channel, June 8, 2012] where both the 2nd gen NumSmart2816M and the 3d gen NS115 are shown, the latter introduced as a LP (Low Power) and improved architecture implementation with 40% less power consumption than the NS2816M, also targeted for the smartphone market (in the video also their baseband chip is shown to be shipped in 2-3 months) and to be shipped a month later. Towards the end they acknowledge that their big hope for the NS2816 and NS2816M didn’t become a reality, because the laptop market remained a niche one (I would add it was due to overwhelming success of Android in the tablet space vs. the envisaged by them Ubuntu on the laptops), so they are refocusing on the tablet market. They also acknowledge trying to work with Microsoft on the Windows RT opportunity (but Microsoft is NOT shown as a partner). It is also said that they have almost 700 people working for them. To the last question they say that they have been living so far on mobile TV systems for China only [not true considering that they lost the battle against CMMB in China as shown in the following]. Note from their website: “Our superior, patented T-MMB (Terrestrial- Mobile Multimedia Broadcasting) system” (see also the T-MMB Q&A), Enhanced Ultra-High Throughput (EUHT) SuperWlan – UHT (Ultra-high Throughput Wireless LAN) and NUHT (Next UHT), and probably video search by “NuVideoTM supports hundreds of TV channels anywhere, anytime in any situation with real time catalog, automatic high-speed editing and processing.” as well.
– From Nufront’s own sponsored content on DIGITIMES [June 6, 2012]: “… Nufront was established in June 2004 with its first office located in Bejing, China. Through support from the government, Nufront began R&D of T-MMB systems. By 2006, Nufront’s T-MMB system had passed field tests conducted by the government. By November 2007, the firm had announced success in developing the first T-MMB chip called NF9001. In 2009, Nufront added two new branches, Beijing Pu Ji Xin Technology and Beijing Nufront Mobile Communication Technology. … The firm stated its goal is to become a comparable firm to Qualcomm and MediaTek. Nufront aims to create a unified platform that consists of both telecommunication and PC functions to meet the needs of various types of mobile smart products.”
– China Digital TV Transmitter Market Report, 2012 [Reportlinker.com press release, Oct 30, 2012]: “With respect to mobile devices, T-MMB was adopted as the national standard on April 3, 2008, but denied by the State Administration of Radio, Film and Television (SARFT) which has been actively promoting CMMB (China Mobile Multimedia Broadcasting) network construction. With investment in digital TV transmitter reaching approximately RMB600 million in 2010 and not less than RMB800 million in 2011, CMMB has become the major player with respect to signal coverage and user group.”
– 2011 Mobile TV Development Report [Zhang Rui on Sina blog, Oct 15, 2012]: “.. by the end of 2011, CMMB network covered more than 336 prefecture-level cities, 885 economically developed county-level cities with signal coverage rate reaching 98.22%, covering a population of nearly 800 million, and as such CMMB has become the world’s largest mobile radio and TV coverage network. … as of the end of 2011, CMMB nationally more than 35 million users, paying subscribers reached 16 million. In 2011, through the widespread cooperation with China Mobile, they jointly promoted the development of 11.29 million bi-directional end users, creating a precedent for the conversion rate of mobile data services with a 73.3% conversion rate; with new users the one-way terminal user base increased in 2011 to 6 million. …” Note: CMMB “… is based on the Satellite and Terrestrial Interactive Multiservice Infrastructure (STiMi), developed by TiMiTech, a company formed by the Chinese Academy of Broadcasting Science. Announced in October 2006, it has been described as being similar to Europe’s DVB-SH standard for digital video broadcast from both satellites and terrestrial repeaters to handheld devices. …”
– Mobile TV: at least three years to take to maturity, preliminary [coming in 20]08 [XINHUANET.COM, Aug 14, 2006]: “<nicely and broadly covering the STiMi story then TMMB as well: > … T-MMB standard was developed under the auspices of the Ministry of information industry, which is Korea DMB standard as the basis for in-depth research and development of a standard, part of independent intellectual property rights. It is a broadcast system, is also a one way system. T-MMB advantages: first, compatibility, compatible Korea T-DMB technology easier to implement roaming. …”
– which is really shown by the below illustration from this Aug’11 Norvegian research paper:
– Then 3 years later came Tug of war [China Daily, April 14, 2008] between SARFT and MIIT: “The format (T-MMB) was not strictly tested or undergo necessary trials and the standardization was manipulated by a small group of people,” claims Wang Xiaojie, head of SARFT’s Science and Technology Department. “The result is not relevant to us and we will not adopt the standard.” which resulted in the current situation when still the old NF9001 is the only T-MMB chip and Nufront is not listed even as a mobile TV chip provider while some other providers are covering now several standards with a single chip. The current best example is DiBcom whose “Octopus2s [launched on Sept 5, 2012] … single die System-On-Chip … supports all the active digital TV formats available in the World such as ISDB-T one-seg, full-seg, and sb for Japan and South America; DVB-T for Europe, Africa, South East Asia and Columbia; DAB/DAB+ digital radio for Europe; T-DMB for Korea, CMMB and CTTB for China; ATSC and ATSC M/H for North America.”
– Media report published on the Nufront website: Nufront: Technological innovation-oriented computing and communications develop simultaneously [April 27, 2012]: “… “In fact, as early as in 2005, began in-depth study of wireless LAN technology, developed a new generation of ultra-high-speed wireless LAN technology EUHT before the 802.11n standard in data throughput, spectrum efficiency and economy have done better than the existing WiFi technology, “said Yang Yuxin. Outdoor communications 3G/4G network in the room it will rely on the ultra-high-speed local area network. “The mentioned EUHT He is a new generation of communications technology specifically for the short-range wireless communication environment specifically optimized design can short distance (100 m coverage, expandable to 500 m) to support a large number of high-speed connection, and to ensure the business real-time requirements, the physical layer peak rates up to 3.86Gbps, about 90% of the efficiency of the system can be widely used in the Internet of Things, digital applications in the home, digital city, has obvious advantages compared with existing wireless LAN technology. …” Note: MIIT in China announced on February 13, 2012 that it has approved the UHT/EUHT standard specification (click for Chinese announcement). The announcement reads that MIIT has finalized the previously discussed UHT and EUHT layer standards; the document for download is simply a table naming the two finalized standards. The actual text of the standards will be published by the Peoples’ Post and Telecoms Publishing House.
… Where Nufront differs from other up and comers, though, is that the company, founded in 2004, has already been around the block. Its eight years in the industry have cemented closer ties with the Chinese government agencies. With that comes government funding. Not everything has worked out in its favor, though, and the company has a few scars to show for it.
A case in point is China’s mobile TV standard. Nufront, in the mid-2000’s, dabbled with the nascent digital mobile TV market, throwing itself behind one of China’s home-grown mobile TV standards, Terrestrial-Mobile Multimedia Broadcasting (T-MMB). However, just before the Beijing Olympics, China’s State Administration of Radio, Film and Television (SARFT) ended up supporting — and institutionalizing — a rival standard, China Mobile Multimedia Broadcasting (CMMB).
Nufront is also known for its deep involvement in developing China’s national wireless technology, called Enhanced Ultra-High Throughput (EUHT) WLAN. With government funding, Nufront has been working on the national standard for more than several years. While the world is yet to see EUHT commercialized, Rock Yang, vice president of marketing at Nufront, stressed that the project is still on, and its ultra-high throughput wireless technology – 1.2Gbit per second throughput – will be deployed in China’s vertical market in 2013.
Nufront today has about 700 employees, with a team of 400 engineers. Two hundred are software engineers, while 150 are working on hardware systems, and 50 are specifically focused on chipsets, according to the company.
…
Nufront’s strategy doesn’t stop at the apps processor. The company is rolling out its first-generation GSM/WCDMA 3G baseband chip, TeLink 7619. Calling it a “dual-modem platform,” the new chip incorporates digital RF, power management and baseband, according to the company. How this will fare against other GSM/WCDMA baseband chips from competitors is unknown. But Nufront hopes to offer a “complete smartphone solution” in 2013, by adding its baseband chip to NS115.
Yang made it clear that Nufront, during the second quarter this year, acquired some essential IPRs on WCDMA. The Chinese company paid $9.0 million to InterDigital, a company with broad wireless patent portfolio. However, it remains unclear what exactly Nufront got. InterDigital only confirms the deal in vague terms: “We did enter into a set of agreements with Nufront, and those agreements included the transfer of a certain number of patents as well as other elements.” InterDigital’s spokesman added, “Our practice is not to offer any comment on the specifics of patent transfers with partners.”
Separately, in June, Intel cut a deal to buy about a host of wireless technology patents from InterDigital for $375 million.
…
The “Internet of Things” is also in Nufront’s sights. The company believes its 3G modules could be particularly useful in the vertical market for Internet of Things applications.
…
China: going either for good quality commodities or the premium brands only
November 21, 2012 7:48 pm / 1 Comment on China: going either for good quality commodities or the premium brands only
This was the major learning for me when I was watching the November roundtable ‘On China’: Chinese Consumerism led by CNN’s Kristie Lu Stout today. It was even mentioned that the wealthy Chinese may have a luxiory car parked on the roads leading to Shanghai airport in order to save the parking fee. I was also struck by the fact that there are around 1 million Chinese who have wealth of US$ 1 million or more, and this number will grow tzo 3-4 million this decade.
All these bode well with the findings in my post with a corresponding title: Boosting both the commodity and premium brand markets in 2013 with much more smartphones and tablets while the Windows notebook shipments will shrink by 2% [this same blog, Nov 20, 2012]. Note that this new kind of consumer computing trend is directly related to China as the leading market for smartphones already (see this, this and this) which will become the case for the tablet market as well in 2013.
Here are the related excerpts I am copying here from the written report about the roundtable. You can watch yourself in full on Nov 24, 25, and Dec 1, 2 on CNN as described in the roundtable announcement.
From: What do Chinese consumers want? Not Barbie [CNN, Nov 21, 2012]
…
As China’s ranks of consumers swell — the number of middle class earners is estimated to grow 70% to 600 million by 2020 [from the current 300 million mentioned in the discussion recorded on video] — so too rises the stakes for companies looking to cash into China’s growing consumer market.
…
One area where Western brands have some headway against their domestic Chinese competitors is product safety, in the wake of scandals over tainted baby formula, fake eggs and exploding watermelons.
…
A dichotomy is growing in Chinese consumer trends between shopping for status and shopping for value.
“What that means is, people don’t buy mid-level brands, which is why you see (brands?) like Marks & Spencer, or Li-Ning, or Gap kind of struggle, because these are branded for middle-class consumers,” Rein said. “What we see is people either shop for the most expensive things they can get, like a Louis Vuitton or Hermes bag, or they go for the cheapest.”
…
Urgent search for an Intel savior
November 21, 2012 12:15 pm / 5 Comments on Urgent search for an Intel savior
Update: Third-generation ultrabooks may be able to achieve 40% of notebook shipments, say players [DIGITIMES, Dec 11, 2012]
As Intel failed to achieve its goal of having ultrabooks account for 40% of total notebook shipments with its Ivy Bridge platform, and the proportion only reached about 10%, sources from notebook players believe the goal may be achievable with the upcoming Haswell platform, which is set to launch at the end of second-quarter, 2013.
The sources pointed out that compared to Ivy Bridge, Haswell’s stronger performance and cheaper price, plus the expectation that Windows 8 should become more standardized by then, should mean ultrabooks have a chance to account for 40% of total notebook shipments by the end of 2013.
Although vendors have released ultra-like notebooks with prices around US$699-899 as alternatives, since these devices lack attractiveness in terms of design and weight, while ultrabook models with specifications similar to the MacBook Air have prices a lot higher than the MacBook Air, most consumers have turned to purchase Apple’s product instead, the sources noted.
Chips are down for Intel’s CEO [Euronews YouTube channel, Nov 19, 2012]
After what I’ve described in Steven Sinofsky, ex Microsoft: The victim of an extremely complex web of the “western world” high-tech interests [Nov 13, 2012], Intel Haswell: “Mobile computing is not limited to tiny, low-performing devices” [Nov 15, 2012] and Boosting both the commodity and premium brand markets in 2013 with much more smartphones and tablets while the Windows notebook shipments will shrink by 2% [Nov 20, 2012] the news that Intel has an urgent need to find a new CEO is not a surprise for me at all.
Quite obviously Intel’s long-time business model suddenly looks like as unsustainable for the year 2013 (which also happens to be its fiscal year) not only for me as:
From: Intel CEO Paul Otellini to Retire in May [Intel press release, Nov 19, 2012]
… Paul Otellini, has decided to retire as an officer and director at the company’s annual stockholders’ meeting in May, starting an orderly leadership transition over the next six months. …
The board of directors will conduct the process to choose Otellini’s successor and will consider internal and external candidates for the job.
In addition, the company also announced that the board has approved the promotion of three senior leaders to the position of executive vice president: Renee James, head of Intel’s software business; Brian Krzanich, chief operating officer and head of worldwide manufacturing; and Stacy Smith, chief financial officer and director of corporate strategy.
From: Intel Corporation Hoped Otellini Would Stay Another Year As CEO [ValueWalk, Nov 20, 2012]
Andy Bryant, chairman of the board of Intel Corporation (NASDAQ:INTC) hoped Paul Otellini could stay one more year as chief executive officer (CEO) of the company. During an Interview with Barron’s yesterday, Bryant admitted that he was surprised last week when Otellini told him that he will retire by May next year.
“I did everything I can think of to buy myself another year [of Otellini’s leaderhip]. We were targeting further out for this,” said Bryant.
…
During the interview with Barron’s, Bryant said the mobile market is still a big challenge for the company. According to him,”After almost 40 years at Intel, and the Intel CEO job for 8 years, which is a really hard job, he felt it was time to move to the next generation of leadership. We do have big issues in front of us, moving to the tablet and phone markets, and he was ready to let the next generation lead those battles.”
…
According to him, finding a replacement for Otellini is another challenge. Intel will search for the next CEO inside and outside the company. He is considering five senior executives as candidates for the position, including Renee James, the head of software; Brian Krzanich, head of manufacturing; Stacy Smith, chief financial officer; Dadi Perlmutter, head of mobile efforts; and Arvind Sodhani, president of Intel Capital.
Ambrish Srivastava, PhD, an analyst at BMO, said it is interesting to know that Intel is willing to hire a CEO outside the company, since the company has a deep rooted internal culture, few came from outside and succeeded.
There was an immediate negative response on the stock market showing that even without any meaningful explanations given by either board or Otellini himself the outlook for Intel turned into a one with less expectations about future performance:
And this was only “due to uncertainty with the CEO transition” as was explained by UBS after Intel was downgraded from a “Buy” to “Neutral” by it.
There is nevertheless much more behind of this sudden change, as even Intel’s Q3 report had a few question marks hanging in the air, more notably:
From: CFO Commentary on Third-Quarter 2012 Results [Intel, Oct 16, 2012]
Q4 2012 Outlook
…
Revenue
Revenue is expected to be $13.6B, plus or minus $500M in the fourth quarter. The midpoint of this range would be an increase of 1% from the third quarter. This slight increase in revenue in the fourth quarter reflects the caution we are seeing in the order patterns of our customers as a result of concerns about the global economic environment, ongoing consumer softness in mature markets, and a slowing enterprise market segment.
Gross Margin
Gross margin in the fourth quarter is expected to be 57%, plus or minus a couple points, down 6.3 points from the third quarter. In response to the reductions in our demand forecast we are significantly reducing factory loadings in the fourth quarter, resulting in a forecast of approximately $500M in underutilization charges.
Related information from: Intel Corporation’s CEO Discusses Q3 2012 Results – Earnings Call Transcript [Oct 16, 2012]
JoAnne Feeney – Longbow Research
And then as a follow-up, Stacy could you let us know what happened with units versus ASPs in PCs versus servers last quarter?
Stacy Smith – SVP, CFO & Director, Corporate Strategy
Yeah, it’s actually in the CFO commentary JoAnne, but in general we saw PC units up 1% versus the prior quarter and datacenter units were also up 1%. This is a quarter-on-quarter compare.
JoAnne Feeney – Longbow Research
Sorry, and the ASPs?
Stacy Smith – SVP, CFO & Director, Corporate Strategy
The PC ASPs were down 1% and the server ASPs were down 7% based on the mix kind of things that I have been talking about.
And in the Q&A part of that call Otellini himself said that:
… we do believe that when the numbers are all in, the PC consumption did grow in Q3 at about half the normal seasonal rate and will also grow in Q4 about half the normal seasonal rate. How much of that happening is macroeconomic versus the timing of the Windows 8 builds and the share of wallet, war for tablets versus PCs is TBD, and we’ll know a lot more about that 90 days from now after the Windows 8 launch, after we see Intel based tablets start shipping, when people start playing with the operating system and have all the touch based Ultrabooks out there. We’ll know a lot more. So we’ll try to quantify that a bit more for you in 90 days, but right now it’s a bit of each. …
… I was just in China a week and a half ago, so there is a fairly current view. I see the same situation. China as a manufacturing center is reflecting the comments that we had in our commentary which is that the OEMs are being very cautious with their inventory comments at this point in time for all the reasons we’ve discussed and it’s as lean as we’ve seen it in normal times without the shortage of let’s say their hard drives of last year.
In terms of the channel inventory, there really isn’t very much. I went into Tier 3 city, you don’t see things stocked up or sacked up on pallet and stuff. People are generally — I think most of our customers worldwide spent a lot of Q3 thinning out their Windows 7 inventory, so they wouldn’t have an overhang at the launch. And that accounts for a lot of this inventory shipped of our billings versus the consumption that we’ve been talking about. And now with the launch of Windows 8 coming in a week or so, you’ll see a new round of build and hopefully consumption.
…
In terms of demand stimulation, a lot of what we are doing is really to make sure that the feature set of this season’s Ultrabooks are really consistent with where the market is, that’s why we’ve been so focused on working with our customers and the ecosystem just, for example, bring the touch SKUs in. So six to eight months ago that we did not have line of sight to 40 out of a 140 SKUs of Ultrabooks being touch enabled, it was probably five or 10; we are up to 40 now, and that’s just going to get bigger as we go into 2013. So working with the vendors and the glass manufacturers to bring the cost of touch as an increment down has been one of the key things we think we can do to drive demand.
…
The inventory, I thing is straight forward. The work-in-process and finished goods that we’re expecting to come down over this quarter are our Ivy Bridge products which is the mainstream high-end product we have today. And as the market picks up, Windows 8 launches, Ultrabooks pick up and so forth then that just consumes that inventory. And as I said earlier, in my comments and Stacy’s, our OEMs are running very lean right now. So any kind of demand blip would cause us to be able to reduce that even more perhaps.
In terms of the mix, there is really not much more to add than we put in our pre-release and in the comments today which is that the U.S. and Western Europe PC markets remained soft in terms of consumers. The change that we have seen and we talked about at the pre-announcement was that the enterprise PC market has gone relatively flat now and I think that’s just a reflection of large corporations making hard decisions on CapEx versus people, and where they want to put their investments and now that seems to have spilled over from the client side of the enterprise also the data center server part of the enterprise. And you know I think we will see how that sorts out over the next quarter or so as CEOs and CIOs make their next round of decisions.
In terms of China, the slowdown there was – it’s principally a notebook business and the slowdown there was in consumer notebooks.
…
China is in their own macroeconomic cycle slowing down, I mean the GDP forecast for the year have come down for next have come down. There is also a reasonable amount of anxiety around the change in government and that tends to put a little bit of nervousness into the system and what I don’t know is how much of that clarifies after they change, because it’s not so much they don’t know who is coming in. The issue is what are the policies, in terms of stimulus and taxation and so forth. They have been pretty generous the last year or so, a year or two rather, in terms of stimulating domestic consumption and the question is will those polices continue or not.
…
This earlier information given by Otellini himself and the current “supply chain” point of view collected in my post Boosting both the commodity and premium brand markets in 2013 with much more smartphones and tablets while the Windows notebook shipments will shrink by 2% [Nov 20, 2012] are definitely pointing to the following true reasons behind Otellini’s sudden departure, as reported by just very few media sources only:
– Otellini Exits Intel, With Windows 8 Fate Uncertain [InformationWeek, Nov 20, 2012]
– Intel chief logs off as rest of the world leaves PCs behind [The Times, Nov 20, 2012]
– ‘Old hands lack skills to lead Intel into mobile age’ [Bloomberg via BusinessReport, Nov 21, 2012]
– Intel CEO Paul Otellini to leave company in major shake-up [Computeractive, Nov 20, 2012]
And here is a quite sarcastic but also quite true reporting:
– While the Intel board was firing Paul Otellini they should have fired themselves, too [Cringely on technology, Nov 20, 2012]
So in reality it is an absolutely inevitable thing what is going now with Intel. Here is the only video comment properly reflecting that:
– Intel Could Use CEO With Mobile Skills, Wang Says [Bloomberg YouTube channel, Nov 20, 2012]
Background information in the full:
Intel CEO Paul Otellini to Retire in May [Intel press release, Nov 19, 2012]
Intel Corporation today announced that the company’s president and CEO, Paul Otellini, has decided to retire as an officer and director at the company’s annual stockholders’ meeting in May, starting an orderly leadership transition over the next six months. Otellini’s decision to retire will bring to a close a remarkable career of nearly 40 years of continuous service to the company and its stockholders.
“Paul Otellini has been a very strong leader, only the fifth CEO in the company’s great 45-year history, and one who has managed the company through challenging times and market transitions,” said Andy Bryant, chairman of the board. “The board is grateful for his innumerable contributions to the company and his distinguished tenure as CEO over the last eight years.”
“I’ve been privileged to lead one of the world’s greatest companies,” Otellini said. “After almost four decades with the company and eight years as CEO, it’s time to move on and transfer Intel’s helm to a new generation of leadership. I look forward to working with Andy, the board and the management team during the six-month transition period, and to being available as an advisor to management after retiring as CEO.”
The board of directors will conduct the process to choose Otellini’s successor and will consider internal and external candidates for the job.
In addition, the company also announced that the board has approved the promotion of three senior leaders to the position of executive vice president: Renee James, head of Intel’s software business; Brian Krzanich, chief operating officer and head of worldwide manufacturing; and Stacy Smith, chief financial officer and director of corporate strategy.
During Otellini’s tenure as CEO — from the second quarter of 2005 through the third quarter of 2012 — Intel:
- Generated cash from operations of $107 billion
- Made $23.5 billion in dividend payments
- Increased the quarterly dividend 181 percent from $0.08 to $0.225
From the end of 2005 through the end of 2011, Intel achieved record revenue and net income. During this period, annual revenue grew from $38.8 billion to $54 billion, while annual earnings-per-share grew from $1.40 to $2.39.
In addition to financial performance, Intel, under Otellini’s leadership, achieved notable successes in areas of strategic importance. During this period, the company:
- Transformed operations and the cost structure for long-term growth
- Achieved breakthrough innovations, including High-K/Metal gate and now 3-D Tri-gate transistors; and dramatic improvement in energy efficiency of Intel processors
- Reinvented the PC with Ultrabook™ devices
- Greatly expanded business partnerships and made strategic acquisitions that expanded Intel’s presence in security, software and mobile communications
- Delivered the first smartphones and tablets for sale with Intel inside
- Grew the vast network of cloud-based computing built on Intel products
Intel (NASDAQ: INTC) is a world leader in computing innovation. The company designs and builds the essential technologies that serve as the foundation for the world’s computing devices. Additional information about Intel is available atnewsroom.intel.com and blogs.intel.com.
Intel, the Intel logo and Ultrabook are trademarks of Intel Corporation in the United States and other countries.
*Other names and brands may be claimed as the property of others.
Intel Corporation’s CEO Discusses Q3 2012 Results – Earnings Call Transcript [Oct 16, 2012]
…
In the coming months consumers will see tremendous form factor and industrial design innovation. There will be more than 140 Core based Ultrabooks, more than 40 of which will have touch. This will include more than a dozen convertibles that combine the productivity of the laptop with the convenience of a tablet.
Many of the Ultrabook SKUs will hit the mainstream $699 price point with some Burst SKUs well below even that number. Q4 will see more than 20 Atom based tablets from six or more leading OEMs using Clover Trail. Clover Trail is a brand new SoC that will enable tablets as thin as 8.5 millimeters and as light as 1.5 pounds.
With three weeks of connected standby battery life and all of the compatibility that Windows users and Intel customers have come to expect, I am excited about the these products and the capabilities they bring to consumers and the enterprise.
Last month at IDF, we shared details of our next-generation Core processor codenamed Haswell. Originally targeted at 15 watts, we have made significant advancements in micro-architecture and process technology that will allow us to move Haswell down into the 10 watt envelope fostering even more innovation in form factor as well as new usage models like gesture computing and voice recognition.
…
John Pitzer – Credit Suisse
Paul, how do you assess how much of what’s going on in the PC market right now; is macro, timing of Windows 8 versus kind of the more structural bearish view that tablets and smartphones are just plain and simple eating into PC TAM. How do you think about those dynamics?
Paul Otellini – President & CEO
I think it’s a bit of each and I would be reticent to quantify it John. Clearly, we saw a softening in the consumer segments. We talked about that when we did the pre-announcement about a month ago and the surprise there was that China which had been very strong in those current week on us on top of continuing weakness in the mature markets of U.S. and Western Europe.
However, having said that, we do believe that when the numbers are all in, the PC consumption did grow in Q3 at about half the normal seasonal rate and will also grow in Q4 about half the normal seasonal rate. How much of that happening is macroeconomic versus the timing of the Windows 8 builds and the share of wallet, war for tablets versus PCs is TBD, and we’ll know a lot more about that 90 days from now after the Windows 8 launch, after we see Intel based tablets start shipping, when people start playing with the operating system and have all the touch based Ultrabooks out there. We’ll know a lot more. So we’ll try to quantify that a bit more for you in 90 days, but right now it’s a bit of each.
…
David Wong – Wells Fargo
Thanks very much. You commented on Clover Trail tablet; are you seeing many Ivy Bridge tablet designs in addition to the Microsoft Surface and can you give us some idea of how many tablet makers you are currently working with on Haswell tablets for the future?
Paul Otellini – President & CEO
I can help you on the former, not the latter. On Ivy Bridge, you know, there is, I would say, a handful, five to eight, something like that that I’ve seen off the top of my head. And for Haswell, it’s too soon to tell, I mean we have, when you start seeing an Ultrabook with a detachable touch screen, is it a tablet and it’s based on Haswell, so the tablet is an Ultrabook or is it a convertible, you know, I don’t know; lots of inventive names for these things as we go along. What I can tell you is that the level of innovation there is really unbounded; I haven’t seen this in a long time.
But, I think in terms of, just little bit near term selling season, there are some Ivy Bridge ones. They tend to be skewed more towards to the enterprise, where our customers believe that their customers, the CIOs of the world want a high performance tablet that is compatible, that is secure and that runs all their enterprise software. So I think that’s where you’ll see those migrate versus I think Clover Trail stuff which was going to be a bit more consumer centric.
David Wong – Wells Fargo
Great. And, you said you expect to qualify Haswell in the March quarter, will Haswell be appearing in systems in the March quarter or should we look for that a bit later in the year?
Paul Otellini – President & CEO
The first half.
Christopher Danely – JPMorgan
Thanks guys. So Paul can you just give us maybe just your take on what you think is going to take to pull the PC industry out of this slunk? And do you think that with the advent of tablets cannibalizing notebooks that we’re never going to see the growth in PCs we used to; is it going to be something lower than what we have been used to?
Paul Otellini – President & CEO
Again, since we don’t know how much of the flatness that we’re seeing this year in PCs as a function of which of those variables that we talked about earlier, it’s pretty hard to say that in good economic cycles that we wouldn’t return to normal growth. But, what I get back to as I lookout here, I don’t think and I said this to you guys before, I don’t think that the tablet as we’ve seen it evolve over the last several years is the end state of computing.
The innovation is going to start pouring in now that you have widely available SKUs on a widely distributed operating system that will come from multiple vendors that can unleash their creativity. And, what I can’t predict is what form factor is going to win here, but I do think that some of these things that have sort of the best of both worlds, the performance and the capability of a laptop and the form factor and convenience of a tablet, are likely to be the things that are most high volumes earners, but we honestly won’t know for 12 months.
…
CJ Muse – Barclays
Yeah, thank you for taking my question. I guess just as a follow-up on the inventory side. Can you discuss what you have seen downstream particularly in China and then also as part of the healthy days, my math suggest exiting December at roughly 75 days. Is that kind of the new normal we should think about for you guys in a lower PC growth rate environment or do you think that you need to be some thing lower?
Paul Otellini – President & CEO
Let me try the China one CJ, and Stacy will come to the inventory.
Stacy Smith – SVP, CFO & Director, Corporate Strategy
And I’ll do the second. Yeah.
Paul Otellini – President & CEO
I was just in China a week and a half ago, so there is a fairly current view. I see the same situation. China as a manufacturing center is reflecting the comments that we had in our commentary which is that the OEMs are being very cautious with their inventory comments at this point in time for all the reasons we’ve discussed and it’s as lean as we’ve seen it in normal times without the shortage of let’s say their hard drives of last year.
In terms of the channel inventory, there really isn’t very much. I went into Tier 3 city, you don’t see things stocked up or sacked up on pallet and stuff. People are generally — I think most of our customers worldwide spent a lot of Q3 thinning out their Windows 7 inventory, so they wouldn’t have an overhang at the launch. And that accounts for a lot of this inventory shipped of our billings versus the consumption that we’ve been talking about. And now with the launch of Windows 8 coming in a week or so, you’ll see a new round of build and hopefully consumption.
Stacy Smith – SVP, CFO & Director, Corporate Strategy
Yeah and in terms of the inventory targets, the number you threw out is in the 70s is where we’re planning to get to in Q4. Just to put that in perspective maybe two other comments on what we’re doing. One is we are taking down utilization in the factories down to sub 50%, again to take inventory out and free up the opportunity to move both space and equipment and redirect that to 14-nanometer. So it’s a pretty significant series of actions. And I also want to point to the inventory that we have in place while it’s in terms of units more than I want to hold. It’s on the order of 70% Ivy Bridge, so it’s our freshest stuff. I am not worried about the salability of the inventory, but I do want to bring the Ivy Bridge inventory levels down. It’s just healthy for us to have less.
…
Daniel Berenbaum – MKM Partners
When you talk about clearing inventory, does pricing come into play in any fashion on the PC, just talk about pricing a little bit on the Data Center side, clearing inventory on either the consumer side or the enterprise side, is that helping? And then follow-up also a little bit on an earlier question, is there anything else that Intel can be doing to spur demand? We’ve already seen sort of Microsoft take matters a bit into their own hands with some of the designs that they are trying to sell; is pricing help you spur demand or is there something else that you can do?
Paul Otellini – President & CEO
The short answer to your question is no on pricing. We do forward pricing with our customers. It’s priced I think aggressively to move into the mainstream price points in terms of the stuff I talked about. If you look at our PC group numbers quarter-over-quarter, the ASP was about flat year-over-year. It was down a bit, mobile was down a bit. What that reflects was really us going after some incremental share at the bottom of the market, so didn’t really change pricing but it changed the mix, and we thought it was time we could do some of that and we did it opportunistically. That’s more the driver on that side.
In terms of demand stimulation, a lot of what we are doing is really to make sure that the feature set of this season’s Ultrabooks are really consistent with where the market is, that’s why we’ve been so focused on working with our customers and the ecosystem just, for example, bring the touch SKUs in. So six to eight months ago that we did not have line of sight to 40 out of a 140 SKUs of Ultrabooks being touch enabled, it was probably five or 10; we are up to 40 now, and that’s just going to get bigger as we go into 2013. So working with the vendors and the glass manufacturers to bring the cost of touch as an increment down has been one of the key things we think we can do to drive demand.
Daniel Berenbaum – MKM Partners
And related to pricing, you’ve obviously got a wounded competitor out there now. Are you seeing that competitor get aggressive on pricing, especially in this environment? Your competitor talked about a big inventory write-down in its negative preannouncement; are you seeing lower pricing there and is that in any way impacting you?
Paul Otellini – President & CEO
I think you would have to ask them their strategy for pricing. As Paul said, we had last quarter and this quarter, we believe, we’ve won some share at the lower end of the market; that’s our strategy here. So you’ve got to ask them the question about their pricing strategy.
…
JoAnne Feeney – Longbow Research
Yeah, I was hoping you can elaborate a little bit more on what you are seeing and what you saw last quarter and what you expect this quarter in terms of the mix of demand, both across consumer and enterprise geographically and then PC, you know, notebooks, desktops; just some more color if you would on what kind of mix you are seeing out there and where you expect it to go and what you’re relying on to get those inventories clear say by the beginning of 2013?
Paul Otellini – President & CEO
Well, let me start with the last part. The inventory, I thing is straight forward. The work-in-process and finished goods that we’re expecting to come down over this quarter are our Ivy Bridge products which is the mainstream high-end product we have today. And as the market picks up, Windows 8 launches, Ultrabooks pick up and so forth then that just consumes that inventory. And as I said earlier, in my comments and Stacy’s, our OEMs are running very lean right now. So any kind of demand blip would cause us to be able to reduce that even more perhaps.
In terms of the mix, there is really not much more to add than we put in our pre-release and in the comments today which is that the U.S. and Western Europe PC markets remained soft in terms of consumers. The change that we have seen and we talked about at the pre-announcement was that the enterprise PC market has gone relatively flat now and I think that’s just a reflection of large corporations making hard decisions on CapEx versus people, and where they want to put their investments and now that seems to have spilled over from the client side of the enterprise also the data center server part of the enterprise. And you know I think we will see how that sorts out over the next quarter or so as CEOs and CIOs make their next round of decisions.
In terms of China, the slowdown there was – it’s principally a notebook business and the slowdown there was in consumer notebooks.
Stacy Smith – SVP, CFO & Director, Corporate Strategy
And I’ll just add in the DCG, we saw strength in the Cloud customers and over the course of the quarter weakening in the large enterprise purchases of server chips. So the mix there was more towards the Cloud.
Paul Otellini – President & CEO
Mix had been strong in the first half.
Stacy Smith – SVP, CFO & Director, Corporate Strategy
Mix had been strong in the first half, yeah.
JoAnne Feeney – Longbow Research
And then as a follow-up, Stacy could you let us know what happened with units versus ASPs in PCs versus servers last quarter?
Stacy Smith – SVP, CFO & Director, Corporate Strategy
Yeah, it’s actually in the CFO commentary JoAnne, but in general we saw PC units up 1% versus the prior quarter and datacenter units were also up 1%. This is a quarter-on-quarter compare.
JoAnne Feeney – Longbow Research
Sorry, and the ASPs?
Stacy Smith – SVP, CFO & Director, Corporate Strategy
The PC ASPs were down 1% and the server ASPs were down 7% based on the mix kind of things that I have been talking about.
Patrick Wang – Evercore Partners
Great, thanks so much. First question, I want to see if we can go back to China and Paul may be kind of recap some of the feedback you are hearing from those meetings you did have, because it seems like the slowdown in China is really impacting global PC demand and weakness out there. So just curious what the latest you are hearing?
Paul Otellini – President & CEO
Well, what I don’t know is how much of this is and China is in their own macroeconomic cycle slowing down, I mean the GDP forecast for the year have come down for next have come down. There is also a reasonable amount of anxiety around the change in government and that tends to put a little bit of nervousness into the system and what I don’t know is how much of that clarifies after they change, because it’s not so much they don’t know who is coming in. The issue is what are the policies, in terms of stimulus and taxation and so forth. They have been pretty generous the last year or so, a year or two rather, in terms of stimulating domestic consumption and the question is will those polices continue or not.
Patrick Wang – Evercore Partners
I want to talk quickly about Data Center. The trend that we’re seeing in ASPs right now are down since the last quarter; I am just kind of curious how you see that over the next couple of years, because when we take a lot at your Cloud segment, you’re forecasting pretty robust growth there. You talked about 50% growth last quarter. As that continues to really outstrip growth from your more traditional server customers, what kind of impact does that do to your blended ASPs?
Paul Otellini – President & CEO
Well, I think the better comparison for us the Data Center is year-on-year, for which the ASP was up a bit, up 1%. The down a bit was really a big shift in the mix between what would be normal enterprise growth and of slowing in the enterprise growth. In general, for storage, for networking and I think for some aspects of the internet data center the mix was actually quite good. Sometimes they – two way machines versus four way machines, but they tend to be fairly high mix and one of the fastest growing elements of the business is high performance computing which buyers buys at the top of the line of our skews. As those product lines get flushed out more and more, I really don’t see the mix shifting away from where it’s been in the first half of this year; I see the current mix being a bit of an anomaly as a result of the softness of corporate datacenter server purchases.
Glen Yeung – Citi
Stacy, maybe the first question for you. As you sort of think about your capacity for 2013 and you are obviously taking action now, what kind of PC environment are you notionally targeting and maybe just in up or down is sufficient unless you want to be more specific?
Stacy Smith – SVP, CFO & Director, Corporate Strategy
Yeah, I am going to be less specific. If you wanted the other, yeah either up or down; hold off on triangulating on a capital forecast or on a unit growth until we get to next quarter. The CapEx number as I said is going to be really be dependent on where we think unit growth is in ‘13 and ‘14 and right now we’re fighting through Q4. There is a lack of visibility on the current quarter; I want to have the 90 days to really think about what we want to put in place.
Glen Yeung – Citi
And then Paul maybe next question for you. Notionally, we won’t expect to see when we have an operating transition like we’re seeing a spark to PC demand and yet we don’t seem to be seeing that and I wonder if you could just give us your thoughts as to why you think this time that’s not happening?
Paul Otellini – President & CEO
Yeah, I don’t think, we know it’s not happening yet. I am very excited about this new operating system. As I said earlier, it brings touch into the mainstream for the first time and we know that in the last couple of years the tablets have changed the paradigm for people to use computers, they like touch, they like to make the photos get larger with their fingers and everything else is good about that. And so I think we haven’t had a chance to really judge how the consumers will embrace this in the mainstream PC space or not.
I am very optimistic as we’ve been playing with these things and we see the products being built and we take them out for testing to consumer and we’ve now on test on Windows 8, touch enabled Ultrabooks in number of the major cities around the world, across multiple demographics. The feedback is universally positive. So I think we’re just too soon to tell. The designs aren’t even launched yet and we’ll know a lot more about this 90 days from now.
…
Intel Reports Third-Quarter Revenue of $13.5 Billion [Intel press release, Oct 16, 2012]
Intel Corporation today reported quarterly revenue of $13.5 billion, operating income of $3.8 billion, net income of $3.0 billion and EPS of $0.58. The company generated approximately $5.1 billion in cash from operations, paid dividends of $1.1 billion and used $1.2 billion to repurchase stock.
Our third-quarter results reflected a continuing tough economic environment,” said Paul Otellini, Intel president and CEO. “The world of computing is in the midst of a period of breakthrough innovation and creativity. As we look to the fourth quarter, we’re pleased with the continued progress in Ultrabooks and phones and excited about the range of Intel-based tablets coming to market.”
Q3 2012 Key Financial Information and Business Unit Trends (GAAP, unless otherwise stated)
- PC Client Group revenue of $8.6 billion, flat sequentially and down 8 percent year-over-year
- Data Center Group revenue of $2.7 billion, down 5 percent sequentially and up 6 percent year-over-year
- Other Intel® architecture group revenue of $1.2 billion, up 6 percent sequentially and down 14 percent year-over-year
- Gross margin of 63.3 percent, 1.3 percentage points above the midpoint of the company’s updated expectation of 62 percent.
- R&D plus MG&A spending $4.6 billion, unchanged.
- Tax rate of 24 percent, below the company’s expectation of approximately 28 percent.
Business Outlook
Intel’s Business Outlook does not include the potential impact of any business combinations, asset acquisitions, divestitures or other investments that may be completed after Oct. 16.
Q4 2012 (GAAP, unless otherwise stated)
- Revenue: $13.6 billion, plus or minus $500 million.
- Gross margin percentage: 57 percent and 58 percent Non-GAAP (excluding amortization of acquisition-related intangibles), both plus or minus a couple of percentage points.
- R&D plus MG&A spending: approximately $4.5 billion.
- Amortization of acquisition-related intangibles: approximately $75 million.
- Impact of equity investments and interest and other: approximately $75 million.
- Depreciation: approximately $1.6 billion.
- Tax Rate: approximately 27 percent.
- Full-year capital spending: $11.3 billion, plus or minus $300 million.
For additional information regarding Intel’s results and Business Outlook, please see the CFO commentary at:www.intc.com/results.cfm.
Status of Business Outlook
Intel’s Business Outlook is posted on intc.com and may be reiterated in public or private meetings with investors and others. The Business Outlook will be effective through the close of business Dec. 14 unless earlier updated; except that the Business Outlook for amortization of acquisition-related intangibles, impact of equity investments and interest and other, and tax rate, will be effective only through the close of business on Oct. 23. Intel’s Quiet Period will start from the close of business on Dec. 14 until publication of the company’s fourth-quarter earnings release, scheduled for Jan. 17, 2013. During the Quiet Period, all of the Business Outlook and other forward-looking statements disclosed in the company’s news releases and filings with the SEC should be considered as historical, speaking as of prior to the Quiet Period only and not subject to an update by the company.
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Risk Factors
The above statements and any others in this document that refer to plans and expectations for the fourth quarter, the year and the future are forward-looking statements that involve a number of risks and uncertainties. Words such as “anticipates,” “expects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “may,” “will,” “should” and their variations identify forward-looking statements. Statements that refer to or are based on projections, uncertain events or assumptions also identify forward-looking statements. Many factors could affect Intel’s actual results, and variances from Intel’s current expectations regarding such factors could cause actual results to differ materially from those expressed in these forward-looking statements. Intel presently considers the following to be the important factors that could cause actual results to differ materially from the company’s expectations.
- Demand could be different from Intel’s expectations due to factors including changes in business and economic conditions, including supply constraints and other disruptions affecting customers; customer acceptance of Intel’s and competitors’ products; changes in customer order patterns including order cancellations; and changes in the level of inventory at customers. Uncertainty in global economic and financial conditions poses a risk that consumers and businesses may defer purchases in response to negative financial events, which could negatively affect product demand and other related matters.
- Intel operates in intensely competitive industries that are characterized by a high percentage of costs that are fixed or difficult to reduce in the short term and product demand that is highly variable and difficult to forecast. Revenue and the gross margin percentage are affected by the timing of Intel product introductions and the demand for and market acceptance of Intel’s products; actions taken by Intel’s competitors, including product offerings and introductions, marketing programs and pricing pressures and Intel’s response to such actions; and Intel’s ability to respond quickly to technological developments and to incorporate new features into its products.
- The gross margin percentage could vary significantly from expectations based on capacity utilization; variations in inventory valuation, including variations related to the timing of qualifying products for sale; changes in revenue levels; segment product mix; the timing and execution of the manufacturing ramp and associated costs; start-up costs; excess or obsolete inventory; changes in unit costs; defects or disruptions in the supply of materials or resources; product manufacturing quality/yields; and impairments of long-lived assets, including manufacturing, assembly/test and intangible assets.
- The tax rate expectation is based on current tax law and current expected income. The tax rate may be affected by the jurisdictions in which profits are determined to be earned and taxed; changes in the estimates of credits, benefits and deductions; the resolution of issues arising from tax audits with various tax authorities, including payment of interest and penalties; and the ability to realize deferred tax assets.
- Gains or losses from equity securities and interest and other could vary from expectations depending on gains or losses on the sale, exchange, change in the fair value or impairments of debt and equity investments; interest rates; cash balances; and changes in fair value of derivative instruments. The majority of our marketable equity security portfolio balance is concentrated in ASML Holding, N.V, and declines in value could result in impairment charges, impacting gains or losses on equity securities.
- Intel’s results could be affected by adverse economic, social, political and physical/infrastructure conditions in countries where Intel, its customers or its suppliers operate, including military conflict and other security risks, natural disasters, infrastructure disruptions, health concerns and fluctuations in currency exchange rates.
- Expenses, particularly certain marketing and compensation expenses, as well as restructuring and asset impairment charges, vary depending on the level of demand for Intel’s products and the level of revenue and profits.
- Intel’s results could be affected by the timing of closing of acquisitions and divestitures.
- Intel’s results could be affected by adverse effects associated with product defects and errata (deviations from published specifications), and by litigation or regulatory matters involving intellectual property, stockholder, consumer, antitrust, disclosure and other issues, such as the litigation and regulatory matters described in Intel’s SEC reports. An unfavorable ruling could include monetary damages or an injunction prohibiting Intel from manufacturing or selling one or more products, precluding particular business practices, impacting Intel’s ability to design its products, or requiring other remedies such as compulsory licensing of intellectual property.
Earnings Webcast
Intel will hold a public webcast at 2 p.m. PDT today on its Investor Relations website at www.intc.com. A webcast replay and MP3 download will also be available on the site.
Intel plans to report its earnings for the fourth quarter of 2012 on Jan. 17, 2013. Immediately following the earnings report, the company plans to publish a commentary by Stacy J. Smith, senior vice president and chief financial officer, atwww.intc.com/results.cfm. A public webcast of Intel’s earnings conference call will follow at 2 p.m. PDT at www.intc.com.
Boosting both the commodity and premium brand markets in 2013 with much more smartphones and tablets while the Windows notebook shipments will shrink by 2%
November 20, 2012 7:30 pm / 5 Comments on Boosting both the commodity and premium brand markets in 2013 with much more smartphones and tablets while the Windows notebook shipments will shrink by 25
This is my conclusion after reviewing
- The ongoing trends in the commodity and premium brand ecosystems of Android devices:
– Smartphones
– Tablets
and
- The emerging new trends in the premium ecosystem of the Windows devices:
– Notebooks
– Smartphones
as reported by the most knowledgeable sources.
Updates: – ODMs see weaker profits from tablet business [DIGITIMES, March 26, 2013]
As Google and Amazon reportedly will release their next-generation 7-inch entry-level tablets in the near future, sources from the upstream supply chain have estimated that related ODMs’ profits from these tablets will be about 20% less than those from notebooks.
Since tablets have a simpler design than notebooks, the ODMs are only able to earn about US$9-10 for each tablet made, lower than US$13-20 for notebooks.
In addition, fewer components needed means that ODMs will have difficulties using their purchasing advantages to earn profits, and tablet brand vendors’ demand for specific components will also impact the makers’ profits, the sources noted.
Seeing weak growth in the notebook industry, most ODMs have turned to place their focuses on the tablet market and are competing aggressively for orders through price cuts, the sources said.
– Wintel camp mulls measures to rekindle weakening notebook industry [DIGITIMES, Feb 21, 2013]
Suppliers within the Wintel camp are mulling to launch a series of measures, including price cuts for their products, in the second quarter of 2013 to rekindle the stymied notebook industry caused by growing popularity of tablets, according to industry sources.
The launch of Windows 8 has failed to ignite replacement demand for notebooks in the end markets, resulting in a prolonged inventory adjustment process at the supply chain that has been going on since the third quarter of 2012, the sources noted.
With market reports indicating that global tablet shipments are likely to reach 200-300 million units in 2013, including 150 million units in China and other emerging markets, notebook vendors will see their market share continue to be eroded by tablets, commented the sources.
While agreeing to the consensus that price-cutting will be the only way to stimulate notebook demand, related PC chip suppliers are urging the major players in the Wintel camp, mainly Intel and Microsoft, to take the lead in action so that the entire supply chain can follow.
The Wintel camp has always chosen to start cutting their product prices in the third quarter each year, noted the sources, but it would be too late to safeguard the notebook industry as well as its supply chain if Intel and Microsoft do not take actions till the third quarter this year.
Since Intel usually will cut significantly its CPU prices prior to the launch of new models, the planned launch of Haswell platform in June may persuade the chip giant to lower the quotes for its Ivy Bridge family CPUs earlier, the sources revealed.
But it remains to be seen if price cuts by Intel alone could stir up notebook replacement demand amid the squeezing-out effect triggered by the rise of tablets, mobile phones and other mobile Internet devices, commented the sources.
End of updates
Before reading the sections of this post corresponding to the above, do not forget to read my own analytical posts which are based on the new product directions and supporting SoC trends (and as such predicting the year 2013 market even better than the external analyses quoted here which are mainly based on supply chain trends and market changes observed already in 2012):
– $48 Mogu M0 “peoplephone”, i.e. an Android smartphone for everybody to hit the Chinese market on November 15 [Nov 9, 2012]
– Lowest H2’12 device cost SoCs from Spreadtrum will redefine the entry level smartphone and feature phone markets [July 26 – Nov 9, 2012]
– The low priced, Android based smartphones of China will change the global market [Sept 10-26, 2012]
– Unique differentiators of Nokia Lumia 920/820 innovated for high-volume superphone markets of North America, Europe and elsewhere [Sept 6 – Nov 13, 2012]
– With Asha Touch starting at $83 and Lumia at $186 Nokia targeting the entry-level and low-end smartphone markets [Nov 1, 2012]
– Boosting the MediaTek MT6575 success story with the MT6577 announcement – UPDATED with MT6588/83 coming early 2013 in Q42012 and 8-core MT6599 in 2013 [June 27, July 27, Sept 11-13, Sept 26, Oct 2, 2012]
– MT6577-based JiaYu G3 with IPS Gorilla glass 2 sreen of 4.5” etc. for $154 (factory direct) in China and $183 [Sept 13, 2012]
– China’s HW engineering lead: The Rockchip RK292 series (RK2928 and RK2926) example [Oct 27, 2012]
– Nexus 7: Google wanted it in 4 months for $199/$245, ASUS delivered + Nexus Q (of Google’s own design and manufacturing) added for social streaming from Google Play to speakers and screen in home under Android device control [June 28, 2012]
– Giving up the total OEM reliance strategy: the Microsoft Surface tablet [June 19 – July 30, 2012]
– ASUS: We are the real transformers, not Microsoft [Oct 17, 2012]
– Microsoft Surface: its premium quality/price vs. even iPad3 [Oct 26, 2012]
– BUILD 2012: Notes on Day 1 and 2 Keynotes [Oct 31, 2012]
– Acer Iconia W510: Windows 8 Clover Trail (Intel Z2760) hybrid tablets from OEMs [Oct 28, 2012]
– Microsoft Surface with some questions about the performance and smoothness of the experience [Nov 12, 2012]
Update: The sections of this post are somewhat taking into the account the most dramatic disruption in the whole history of ICT, what I am calling the ‘ALLWINNER PHENOMENON’ (all ‘Allwinner et al phenomenon’ sometimes when including Allwinner’s internal mainland China competitors such as Rockchip into account as well). EVERYBODY SHOULD BE AWARE of the fact, however, that even in the latest forecasts by bigname ICT market researchers the ‘Allwinner phenomenon’ is not taken into account at all. The two very recent updates from IDC given below should therefore be read with that in mind as the ‘Allwinner phenomenon’ will add hundreds of millions to those forecasts starting as early as in 2013. Especially the numbers for the tablets will be affected. To understand more about that please read my special posts given in a newly created blog about the ‘Allwinner phenonmenon’:
– Allwinner A31 SoC is here with products and the A20 SoC is coming [Dec 10, 2012]
– Is low-cost enough for global success? [Dec 5, 2012]
– The upcoming Chinese tablet and device invasion lead by the Allwinner SoCs [Dec 4, 2012]
– $40 entry-level Allwinner tablets–now for the 220 million students Aakash project in India [Dec 4, 2012] from this alone 220 million additional tablets would have been delivered from 2013 to 2016
– USD 99 Allwinner [Nov 30, 2012]
– It’s a Strategic Inflection Point [Dec 1, 2012]
Update: HTC 1Q13 smartphone shipments to grow slower than expected, say sources [DIGITIMES, Dec 18, 2012]
Affected by the launch of iPhone 5 and rapidly declining smartphone prices in China, HTC reportedly has revamped its product roadmap for 2013 and is expected to see its smartphone shipments rise 10-15% sequentially in the first quarter of the year compared to a 20-30% growth projected previously, according to industry sources.
HTC has suspended development of a number of new models for 2013, reducing the visibility of its orders for handset components, the sources revealed.
HTC declined to comment on market speculation.
However, the industry watchers believe that HTC is heading for a bumpy road ahead, since shipments of its Windows Phone 8-based smartphones have not been as strong as expected, while Apple’s iPhone 5 and Samsung Electronics’ Galaxy III have continued to enjoy brisk sales.
In China, HTC is facing cut-throat competition from local white-box smartphone vendors and has been forced to enter the sub-CNY2,000 (US$321) segment, which runs counter to its established policy focusing mainly on the high-end sector, said the sources.
Update: Worldwide Smart Connected Device Market, Led by Samsung and Apple, Grew 27.1% in the Third Quarter, According to IDC [IDC press release, Dec 10, 2012]
The worldwide smart connected device market – a collective view of PCs, tablets, and smartphones – grew 27.1% year-over-year in the third quarter of 2012 (3Q12) reaching a record 303.6 million shipments valued at $140.4 billion dollars. Expectations for the holiday season quarter are that shipments will continue to reach record levels rising 19.2% over 3Q12 and 26.5% over the same quarter a year ago. According to the International Data Corporation (IDC) Worldwide Quarterly Smart Connected Device Tracker, 4Q12 shipments are expected to reach 362.0 million units with a market value of $169.2 billion dollars. Holiday season growth will be driven by tablets and smartphones, which are expected to grow 55.8% and 39.5% year-over-year respectfully, while PCs are expected to decline slightly from this quarter a year ago.
From a vendor perspective, Samsung maintained the top position in 3Q12 with 21.8% market share based on shipments. Apple, which ranked second overall in shipments, led all vendors in value with a total of $34.1 billion in 3Q12 and an average selling price (ASP) of $744 across all device categories. Following Samsung’s 21.8% share and Apple’s 15.1% share were Lenovo (7.0%), HP (4.6%), and Sony (3.6%). While Samsung, Apple, and Lenovo have all grown share over the past year, HP, which is virtually non-existent in the mobile space, has dropped its share from 7.4% in 3Q11 to 4.6% in 3Q12 with shipments declining -20.5% during that time.
“The battle between Samsung and Apple at the top of the smart connected device space is stronger than ever,” said Ryan Reith, program manager, Worldwide Mobile Device Trackers at IDC. “Both vendors compete at the top of the tablet and smartphone markets. However, the difference in their collective ASPs is a telling sign of different market approaches. The fact that Apple’s ASP is $310 higher than Samsung’s with just over 20 million fewer shipments in the quarter speaks volumes about the premium product line that Apple sells.”
Looking forward, IDC expects the worldwide smart connected device space will continue to surge well past the strong holiday quarter and predicts shipments to surpass 2.1 billion units in 2016 with a market value of $796.7 billion worldwide. IDC’s research clearly shows this to be a multi-device era, although market dynamics are shifting in terms of product category. In 2011, PC’s – a combination of desktop and portable PCs – accounted for 39.1% of the smart connected device market. By 2016 it is expected to drop to 19.9%. Smartphones will be the preferred product category with share growing from 53.1% in 2011 to 66.7% in 2016. Tablets will also grow significantly with share growing from 7.7% in 2011 to 13.4% in 2016. The shift in demand from the more expensive PC category to more reasonably priced smartphones and tablets will drive the collective market ASP from $534 in 2011 to $378 in 2016.
“Both consumers and business workers are finding the need for multiple ‘smart’ devices and we expect that trend to grow for several years, especially in more developed regions,” said Bob O’Donnell, program vice president, Clients and Displays. “The advent of cloud-based services is enabling people to seamlessly move from device to device, which encourages the purchase and usage of different devices for different situations.”
Top 5 Smart Connected Device Vendors, Shipments, and Market Share, Q3 2012 (shipments in millions)
Vendor
3Q12 Unit Shipments
3Q12 Market Share
3Q11 Unit Shipments
3Q11 Market Share
3Q12/3Q11 Growth
Samsung
66.1
21.8%
33.5
14.0%
97.5%
Apple
45.8
15.1%
33.1
13.9%
38.3%
Lenovo
21.1
7.0%
13.2
5.5%
60.0%
HP
14.0
4.6%
17.6
7.4%
-20.5%
Sony
11.0
3.6%
8.7
3.7%
25.4%
Other
145.6
48.0%
132.7
55.6%
9.7%
Total
303.6
100.0%
238.9
100.0%
27.1%
Source: IDC Worldwide Quarterly Smart Connected Device Tracker, December 10, 2012.
Smart Connected Device Market by Product Category, Shipments, Market Share, 2012-1016 (shipments in millions)
Product Category
2016 Unit Shipments
2016 Market Share
2012 Unit Shipments
2012 Market Share
2016/2012 Growth
Desktop PC
151.0
7.2%
149.2
12.5%
1.2%
Portable PC
268.8
12.8%
205.1
17.2%
31.1%
Smartphone
1405.3
66.7%
717.5
60.1%
95.9%
Tablet
282.7
13.4%
122.3
10.2%
131.2%
Total
2107.8
100.0%
1194.0
100.0%
76.5%
Source: IDC Worldwide Quarterly Smart Connected Device Tracker, December 10, 2012.
Update: IDC Raises Tablet Forecast for 2012 and Beyond As iOS Picks Up Steam, Android Gains Traction, and Windows Finally Enters the Market [IDC press release, Dec 5, 2012]
A strong competitive landscape—including surging Android tablet shipments and robust demand for Apple’s new iPad mini—has led International Data Corporation (IDC) to increase its 2012 forecast for the worldwide tablet market to 122.3 million, up from its previous forecast of 117.1 million units. In the latest forecast update of the Worldwide Quarterly Tablet Tracker, IDC also raised its 2013 forecast number to 172.4 million units, up from 165.9 million units. And by 2016 worldwide shipments should reach 282.7 million units, up from a previous forecast of 261.4 million units.
“Tablets continue to captivate consumers, and as the market shifts toward smaller, more mobile screen sizes and lower prices points, we expect demand to accelerate in the fourth quarter and beyond,” said Tom Mainelli, research director, Tablets at IDC. “Android tablets are gaining traction in the market thanks to solid products from Google, Amazon, Samsung, and others. And Apple’s November iPad mini launch, along with its surprise refresh of the full-sized iPad, positions the company well for a strong holiday season.”
In addition to increasing the unit totals for 2013, IDC also updated its operating system splits for the year to reflect Android’s growing strength in the tablet market. IDC now expects Android’s worldwide tablet share to increase from 39.8% in 2011 to 42.7% for the full year of 2012. During that same time Apple’s share will slip from 56.3% in 2011 to 53.8% in 2012. Long term, IDC predicts Windows-based tablets (including Windows 8 and Windows RT) will grab share from both iOS and Android, growing from 1% of the market in 2011 to 2.9% in 2012, on its way to 10.3% in 2016.
“The breadth and depth of Android has taken full effect on the tablet market as it has for the smartphone space,” said Ryan Reith, program manager for IDC’s Mobile Device Trackers. “Android tablet shipments will certainly act as the catalyst for growth in the low-cost segment in emerging markets given the platform’s low barrier to entry on manufacturing. At the same time, top-tier companies like Samsung, Lenovo, and ASUS are all launching Android tablets with comparable specs, but offered at much lower price points.”
Once again, IDC’s increase in tablet shipments comes at the expense of eReaders. IDC lowered its forecast for eReaders for 2012 and beyond. While the front-lit eReader offerings from Amazon and Barnes & Noble have captured the interest of a subset of consumers who prefer a dedicated eReader, most buyers are gravitating toward multi-use tablet products and finding a ‘good enough’ reading experience on these traditional back-lit tablets. IDC now expects 2012 eReader shipments to top out at 19.9 million units, down from the 27.7 million units that shipped in 2011.
Tablet Operating Systems, Market Share Forecast and CAGR 2012-2016
Tablet OS
2012 Market Share
2016 Market Share
CAGR 2012 – 2016 (%)
iOS
53.8%
49.7%
20.9%
Android
42.7%
39.7%
21.0%
Windows
2.9%
10.3%
69.2%
Other
0.6%
0.3%
7.7%
Grand Total
100.0%
100.0%
23.3%
Source: IDC Worldwide Quarterly Tablet Tracker, December 5, 2012
Table Notes:
- Windows shipments include Windows RT, Windows 8, and Windows 7 tablets.
- Shipments include shipments to distribution channels or end users. OEM sales are counted under the vendor/brand under which they are sold.
The ongoing trends in the commodity
and premium brand ecosystems of Android devices
Smartphones
Motorola likely to bid farewell to Taiwan handset ODMs after Google sells plants to Flextronics [DIGITIMES, Dec 17, 2012]
The partnerships between Motorola Mobility and Taiwan-based handset ODMs such as Foxconn International Holdings (FIH) will begin to fade away, as Google, the parent company of Motorola, has signed an agreement to hand over Motorola’s manufacturing operations in Tianjin, China, and Jaguariuna, Brazil to Flextronics International, according to industry sources.
After the deal between Google and Flextronics is completed in the first half of 2013, Motorola will completely withdraw from the handset manufacturing industry, and instead will transform to a brand operator targeting mainly the mid-range to high-end smartphone segment, the sources indicated.
While the streamlining of Motorola’s operations comes as no surprise to Taiwan handset ODMs, Google’s decision to sell Motorola’s plants to Flextronics, instead of its long-tern partner FIH, has raised concerns among the industry.
Flextronics is purchasing the plants in exchange for orders from Motorola since the Singapore-based EMS giant has made little progress in gaining handset orders from Apple or major players in the Android or Windows Phone camps, the sources commented.
It is also no longer necessary for FIH to buy plants in exchange for orders, as the company has transferred from handset EMS operations to focus on smartphone ODM business, indicated the sources, adding that FIH has also managed to establish partnerships with a number of major players in the smartphone sector.
However, a deepened cooperation between Motorola and Flextronics may affect the handset component supply chain in Taiwan, the sources warned.
Digitimes Research: Android phones to account for 70% of global smartphone market in 2013 [DIGITIMES Research, Dec 6, 2012]
Android will further solidify its market leadership in the smartphone operating system race in 2013, thanks to a broad support from smartphone vendors and the rollout of a wide range of low-priced models for sale in emerging markets. Shipments of Android phones are expected to top 600 million units or over 70% of global smartphone shipments in 2013, Digitimes Research estimates.
iOS will trail Android to take the number two position in the OS ratings with a 20% share, while other smartphone platforms will share the remaining 10%.
Shipments of Windows Phones, including 7.x and 8.x models, will grow 150% on year to 52.5 million units in 2013 for a 6.1% share, followed by RIM’s BlackBerry devices with a 3.7% share, Digitimes Research estimates. Other platforms, including Tizen and Firefox, will take up a portion lower than 1%.
Digitimes Research: Global smartphone shipments to grow 30% in 2013 [DIGITIMES Research, Nov 19, 2012]
Global smartphone shipments are expected to grow 30% to 865 million units in 2013, accounting for 43.9% of total handset shipments in the year, Digitimes Research has estimated.
Factors including relationships between platform providers and hardware makers, support from telecom carriers for new models, and key developments or decisions by some vendors will affect smartphone sales in 2013, Digitimes Research believes.
Google is expected to further strengthen its control over the Android ecosystem and its production partners, which may limit the development of other platforms or variant Android models.
Microsoft’s launch of own-brand smartphones may result in a reduction in support for the Window Phone platform by hardware vendors, which should otherwise serve as a key factor to push for the growth of the Window Phone to become a third major platform in the segment.
While Amazon is likely to enter the smartphone market, 2013 may be crucial a year for Nokia and RIM (Research in Motion) to make vital decisions concerning their smartphone businesses.
Demand for high-end smartphone models in Western Europe will be affected seriously by reduced government budgets and weak consumption in the region because of the prolonged financial crisis.
However, smartphones’ growing penetration in China, Russia, India, Indonesia, South America and other emerging markets will serve as a growth driver for global smartphone shipments in 2013, Digitimes Research believes.
Google, Amazon and other vendors in China to lead pricing in low-cost smartphone segment, say sources [DIGITIMES , Nov 5, 2012]
While sales of low-cost smartphones are expected to continue growing in the next few years, Google, Amazon and other Internet service companies in China may lead price competition in the segment, according to industry sources.
Shipments of low-cost smartphones, defined as models with a selling price of less than US$150, are forecast to double every year from 2010 to 2016, increasing from 4.5 to 311 million units, according to NPD DisplaySearch.
Most of the demand (60%) is from the Asia Pacific region, where a large majority of component suppliers and manufacturing factories are located – providing both time and cost savings, said DisplaySearch.
In China, the trend for telecom carriers to continue cooperating with chipset suppliers, handset design houses and handset vendors for the launch low-priced smatphone models will continue for a while, the sources noted.
Vendors including Huawei Device, ZTE, Lenovo and Coolpad have emerged as the leading group of the smartphone suppliers in China through the offerings of low-cost models, but most of vendors has suffered losses or seen the profits of their handset business decline due to fierce price competition in the segment, the sources revealed.
Lenovo’s handset business unit is still operating in red, and Huawei and Coolpad have seen their profits decline, while ZTE and TCL have seen their handset businesses swing from profitability to loss, the sources indicated.
In order to stemming losses, or improving profitability, most branded smartphone vendors in China have been trying to expand their share in the mid- and high-end segment, while pushing their sales through local retain channels or export sales.
But other China-based smartphone vendors such as Xiaomi Technology, Internet service companies including Baidu and Shada Interactive Entertainment, as well as online retail giant 360buy, are likely to continue to adopt aggressive price strategies to pushing sales of their own models, said the sources.
In the global market, the cooperation between Google and LG Electronics for the launch of Nexus 4 at prices ranging from US$299-349 is also expected to lead to the proliferation of more low-priced Android smartphone models, the sources indicated.
Amazon, which has been aggressive in the tablet segment, is expected to release its first smartphone model in 2013 with the same price tactics, which is likely to further drive down the prices of smartphones, commented the sources.
Digitimes Research: Nexus 4 to be popular in prepaid SIM card and telecom retail channels [DIGITIMES Research, Nov 7, 2012]
Google’s Nexus 4, which comes with a 4.7-inch 720p HD display and Qualcomm quad-core Snapdragon S4 processor, is expected to become a popular model in the prepaid SIM card segment as well as in telecom retail channels for unlocked subscribers, according to Digitimes Research.
With its high hardware specifications and pricing of US$299 for the 8GB version and US$349 for the 16GB version, the Nexus 4 will cause price pressure on other comparable models rolled by rival brands.
Sales of Windows phones are expected to grow 250% in 2013 due in part to support from telecom carriers which are seeking a third platform other than Android or iOS. However, Android will continue to lead the market with a wide margin, Digitimes Research said.
Google aggressive pricing for Nexus 4 smartphone to affect sales of other brands [DIGITIMES, Oct 30, 2012]
Google’s pricing of US$299-349 for its newly released 4.7-inch, quad-core Nexus 4 smartphone is lower than market expectations, and thus could affect the sales of Android-based smartphones launched by other branded vendors, according to industry sources.
Prior to the release of the Nexus 4 in cooperation with LG Electronics, Google had cooperated with HTC and Samsung Electronics, respectively, for the launch of three generations of Nexus smartphones with prices ranging from US$500-700.
The Nexus 4 will enjoy the advantage in pricing even compared to the latest quad-core Android models rolled out by other vendors, indicated the sources, noting that Asustek Computer’s 4.7-inch Padfone 2 is available for US$600, while China-based Xiaomi Technology’s second-generation Xiaomi phone is priced at CNY1,999 (US$320).
Other Android-based smartphone vendors, including HTC, Sony Mobile Communications, Huawei Device, ZTE and even Motorola Mobility, all are likely to adjust their price strategies, since chances are high that the Nexus 4 will make a strong impact on the smartphone market, commented the sources.
China market: Nexus 4 pricing to affect sales, prices of other brands, says report [DIGITIMES, Nov 7, 2012]
The aggressive pricing strategy adopted by Google for its Nexus 4 may affect sales of Xiaomi smartphones in China and may also force other brands including Samsung Electronics, Motorola and HTC to lower the prices of their offerings in China, according to a China-based 21st Century Business Herald report.
The price of US$299 (CNY1,890) for the 8G version of the Nexus 4 is more competitive than Xiaomi’s next-generation quad-core smartphone which is available at CNY1,999, the paper noted.
Xiaomi is selling its first quad-core model below its BOM of CNY2,350 and will limit initial sales of the model to 50,000 units only, said the paper, which added that Xiaomi aims to ramp up volumes to 250,000 units to bring down the BOM when it begins to offer the second round of sales in mid-November.
Although the Nexus is not yet available in China, consumers may hesitate to pick up the quad-core Xiaomi smartphones because they have to wait for several months before Xiaomi will begin delivering the devices, said the paper.
China market: Coolpad hopes to regain mid-range, high-end smartphone share [DIGITIMES , Nov 7, 2012]
China-based handset maker Coolpad hopes to re-enter the mid-range and high-end smartphone market in China by introducing smartphone products with China Mobile that will be priced above CNY5,000/unit (US$800/unit).
In the recent years, Coolpad has been focusing on smartphones at the price range of CNY1,000/unit by cooperating with China’s three telecom service providers. Entry-level and mid-range models have accounted for 85% of Coolpad’s total shipments. The firm recently introduced a new model, Coolpad 9960 (Da Guan HD), with a 4.7-inch screen, Nvidia Tegra 3 quad-core processor, and a 13-megapixel front camera. The model will be priced above CNY5,000/unit.
Currently, China’s mid-range and high-end smartphone markets have been dominated by international brands such as Apple, HTC, Motorola, and Sony. Coolpad has been the only local brand that has a relatively strong market share.
According to industry sources, in 2012, Coolpad increased investment in R&D of high-end products by 20% on year and formed an R&D team of 800 staff to strengthen its high-end product line.
Lenovo, Huawei, ZTE faced with challenges to reach quarterly shipments of 10 million smartphones, say Taiwan makers [DIGITIMES , Nov 5, 2012]
A total of 60 million smartphones were shipped to the China market in the third quarter of 2012, and Lenovo, Huawei and ZTE shipped nine million units, 8.5 million units and 7.5 million units, respectively, with a combined market share of 41.7%, according to DRAMeXchange under consulting company TrendForce.
Except for Apple and Samsung Electronics, other international vendors including HTC, Sony Mobile Communications, LG Electronics, Nokia have not been able to attain quarterly shipments of 10 million smartphones, the sources indicated. Lenovo, Huawei and ZTE stand a chance to ship 10 million smartphones a quarter if they can strengthen their branding operations, marketing and product lines of mid-range and high-end models in overseas markets, the sources pointed out.
Lenovo has focused on entry-level smartphones priced below CNY1,500 (US$240) and relied too much on the domestic market, the sources indicated. In comparison with Lenovo, Huawei and ZTE have the advantage of cooperation with mobile telecom carriers in many countries, but their brand image is not strong enough for marketing mid-range and high-end smartphones, the sources pointed out.
PC vendors recommended to target niche smartphone market to avoid direct competition [DIGITIMES , Oct 3, 2012]
Branded PC vendors including Hewlett-Packard (HP) and Asustek Computer, which plan to reignite their smartphone businesses, are recommended to offer models with strong application platforms, sleek product design and integrated cloud computing capabilities targeting niche markets, while avoiding direct competition with smartphone vendors, according to sources at Taiwan’s handset supply chain.
Among the leading brands, HP, Dell and Asustek have not launched new handsets for some time, while Acer has made little progress in the sector although it has continued rolling out new phones, indicated the sources.
Lenovo’s performance has been exceptional, taking the second-ranked title in China’s smartphone market by optimizing an array of entry-level models priced at around CNY1,000 (US$158).
The reason major branded PC vendors are considering a comeback to the smartphone market hinges on emerging business opportunities that are anticipated to come along with the launch of Windows 8. They are hoping that sales of Windows 8-based PCs will help promote the sale of Windows Phone 8 smartphones as well.
Even so, prospects are still slim for PC brands to make a strong presence in the smartphone market, given that Apple and Samsung Electronics are currently the top-2 vendors dominating the segment, while other smartphone brands including Nokia, RIM, Sony Mobile Communications, Motorola Mobility are lagging behind with heavy losses, the sources commented.
Worldwide Mobile Phone Growth Expected to Drop to 1.4% in 2012 Despite Continued Growth Of Smartphones, According to IDC [IDC press release, Nov 1, 2012]
The worldwide mobile phone market is forecast to grow 1.4% year over year in 2012, the lowest annual growth rate in three years despite a projected record number of smartphone shipments in the high-volume holiday season. According to the International Data Corporation (IDC) Worldwide Quarterly Mobile Phone Tracker, vendors will ship more than 1.7 billion mobile phones this year. In 2016, IDC forecasts 2.2 billion mobile phones will be shipped to the channel.
Global smartphone volume in the fourth quarter of 2012 (4Q12) is expected to reach 224.5 million units, representing 39.5% year-over-year growth due primarily to strong consumer demand. For the year, smartphone shipments are forecast to grow 45.1% year over year to 717.5 million units. Strong smartphone growth is a result of a variety of factors, including steep device subsidies from carriers, especially in mature economic markets where carriers resell the majority of smartphones, as well as a growing array of sub-US$250 smartphones in emerging markets.
“Sluggish economic conditions worldwide have cast a pall over the mobile phone market this year,” said Kevin Restivo, senior research analyst with IDC’s Worldwide Quarterly Mobile Phone Tracker. “However, the fourth quarter will be relatively bright due in part to sales of high-profile smartphones, such as the iPhone 5 and Samsung’s Galaxy S3, in addition to lower-cost Android-powered smartphones shipped to China and other high-growth emerging markets.”
Smartphone Operating Systems
“Underpinning the worldwide smartphone market is a constantly shifting mobile operating system landscape,” added Ramon Llamas, research manager with IDC’s Mobile Phone team. “Android is expected to stay in front, but we also expect it to be the biggest target for competing operating systems to grab market share. At the same time, Windows Phone stands to gain the most market share as its smartphone and carrier partners have gained valuable experience in selling the differentiated experience Windows Phone has to offer. What bears close observation is how BlackBerry’s new platform, BlackBerry 10, and multiple versions of Linux will affect the market once the devices running these systems are available.”
IDC forecasts Android to be the clear leader in the smartphone mobile operating system race, thanks in large part to a broad selection of devices from a wide range of partners. Samsung is the leading Android smartphone seller though resurgent smartphone vendors LG Electronics and Sony, both of which cracked the top five smartphone vendors during 3Q12, are not to be overlooked. IDC believes the net result of this will be continued double-digit growth throughout the forecast period.
iOS will maintain its position as the clear number two platform behind Android at the end of 2012 and throughout the forecast. The popularity of the iPhone across multiple markets will drive steady replacements and additional carrier partners will help Apple grow iOS volume. However, the high price point of the iPhone relative to other smartphones will make it cost prohibitive for some users within many emerging markets. In order to maintain current growth rates, Apple will need to examine the possibility of offering less expensive models, similar to its iPod line. Until that happens, IDC forecasts iOS to ship lower volumes than Android.
The BlackBerry OS will grow slowly but largely maintain share over the coming years following the BlackBerry 10 launch next year. The new operating system and devices will be valued by some longtime BlackBerry fans, particularly those who have waited for the new OS as Research In Motion delayed its release. This will allow the company to maintain pockets of strength in higher-growth emerging markets such as Indonesia and various Latin American countries. But, as with many other new platforms, the success of BB 10 will be partly dependent upon channel advocacy, like sales associates who can effectively tell the BlackBerry story.
Windows Phone will battle with BlackBerry for the number three spot in 2013, but will gain further clarity in the years that follow. Windows Phone will build on the progress it made in 2012, with Nokia establishing its presence and HTC solidly jumping back into the race. Moreover, contributions by Samsung, ZTE, and Huawei will help grow its footprint. With more vendors releasing more devices aimed at multiple segments, sales associates will be better positioned to tell a compelling Windows Phone story and to explain the value of Windows Phone’s differentiated experience compared to market leaders Android and iOS.
Linux will trail the market leaders throughout our forecast though it is expected to be the dark horse of the forecast. K-Touch has quietly built its Linux volumes this year while Haier recently released its first Linux smartphones. In addition, multiple platforms are expected to announce and launch their Linux-based smartphones in 2013, including Samsung’s Tizen and Jolla’s SailFish. Benefiting these platforms are their ties to previous platforms from the LiMo Foundation and Nokia’s MeeGo, which could lead to greater developer interest.
Top Smartphone Operating Systems, Forecast Market Share and CAGR, 2012–2016
Smartphone OS
2012 Market Share
2016 Market Share
CAGR 2012 – 2016 (%)
Android
68.3%
63.8%
16.3%
iOS
18.8%
19.1%
18.8%
BlackBerry OS
4.7%
4.1%
14.6%
Windows Phone
2.6%
11.4%
71.3%
Linux
2.0%
1.5%
10.5%
Others
3.6%
0.1%
-100.0%
Total
100.0%
100.0%
18.3%
Source: IDC Worldwide Mobile Phone Tracker, December 3, 2012
Android Marks Fourth Anniversary Since Launch with 75.0% Market Share in Third Quarter, According to IDC [IDC press release, Nov 1, 2012]
The Android smartphone operating system was found on three out of every four smartphones shipped during the third quarter of 2012 (3Q12). According to the International Data Corporation (IDC) Worldwide Quarterly Mobile Phone Tracker, total Android smartphone shipments worldwide reached 136.0 million units, accounting for 75.0% of the 181.1 million smartphones shipped in 3Q12. The 91.5% year-over-year growth was nearly double the overall market growth rate of 46.4%.
“Android has been one of the primary growth engines of the smartphone market since it was launched in 2008,” said Ramon Llamas, research manager, Mobile Phones at IDC. “In every year since then, Android has effectively outpaced the market and taken market share from the competition. In addition, the combination of smartphone vendors, mobile operators, and end-users who have embraced Android has driven shipment volumes higher. Even today, more vendors are introducing their first Android-powered smartphones to market.”
“The share decline of smartphone operating systems not named iOS since Android’s introduction isn’t a coincidence,” said Kevin Restivo, senior research analyst with IDC’s Worldwide Quarterly Mobile Phone Tracker. “The smartphone operating system isn’t an isolated product, it’s a crucial part of a larger technology ecosystem. Google has a thriving, multi-faceted product portfolio. Many of its competitors, with weaker tie-ins to the mobile OS, do not. This factor and others have led to loss of share for competitors with few exceptions.”
Mobile Operating System Highlights
Android, having topped the 100 million unit mark last quarter, reached a new record level in a single quarter. By comparison, Android’s total volumes for the quarter were greater than the total number of smartphones shipped in 2007, the year that Android was officially announced. Samsung once again led all vendors in this space, but saw its market share decline as numerous smaller vendors increased their production.
iOS was a distant second place to Android, but was the only other mobile operating system to amass double-digit market share for the quarter. The late quarter launch of the iPhone 5 and lower prices on older models prevented total shipment volumes from slipping to 3Q11 levels. But without a splashy new OS-driven feature like Siri in 2011 and FaceTime in 2010, the iPhone 5 relied on its larger, but not wider, screen and LTE connectivity to drive growth.
BlackBerry‘s market share continued to sink, falling to just over 4% by the end of the quarter. With the launch of BlackBerry 10 yet to come in 2013, BlackBerry will continue to rely on its aging BlackBerry 7 platform, and equally aging device line-up. Still, demand for BlackBerry and its wildly popular BBM service is strong within multiple key markets worldwide, and the number of subscribers continues to increase.
Symbian posted the largest year-on-year decline of the leading operating systems. Nokia remains the largest vendor still supporting Symbian, along with Japanese vendors Fujitsu, Sharp, and Sony. Each of these vendors is in the midst of transitioning to other operating systems and IDC believes that they will cease shipping Symbian-powered smartphones in 2013. At the same time, the installed base of Symbian users will continue well after the last Symbian smartphone ships.
Windows Phone marked its second anniversary with a total of just 3.6 million units shipped worldwide, fewer than the total number of Symbian units shipped. Even with the backing of multiple smartphone market leaders, Windows Phone has yet to make a significant dent into Android’s and iOS’s collective market share. That could change in 4Q12, when multiple Windows Phone 8 smartphones will reach the market.
Linux volume declined for the third straight quarter as did its year-over-year growth. Samsung accounted for the majority of shipments once again, but like most other vendors competing with Linux-powered smartphones, most of its attention went towards Android instead. Still, that has not deterred other vendors from experimenting, or at least considering the open-source operating system, as multiple reports of Firefox, Sailfish, and Tizen plan to release new Linux-based experiences in the future.
Top Six Smartphone Mobile Operating Systems, Shipments, and Market Share, Q3 2012 (Preliminary) (Units in Millions)
Operating System
3Q12 Shipment Volumes
3Q12 Market Share
3Q11 Shipment Volumes
3Q11 Market Share
Year-Over-Year Change
Android
136.0
75.0%
71.0
57.5%
91.5%
iOS
26.9
14.9%
17.1
13.8%
57.3%
BlackBerry
7.7
4.3%
11.8
9.5%
-34.7%
Symbian
4.1
2.3%
18.1
14.6%
-77.3%
Windows Phone 7/ Windows Mobile
3.6
2.0%
1.5
1.2%
140.0%
Linux
2.8
1.5%
4.1
3.3%
-31.7%
Others
0.0
0.0%
0.1
0.1%
-100.0%
Totals
181.1
100.0%
123.7
100.0%
46.4%
Source: IDC Worldwide Mobile Phone Tracker, November 1, 2012
Note: Data are preliminary and subject to change. Vendor shipments are branded shipments and exclude OEM sales for all vendors.Android Smartphone Shipments and Market Share, 2008 – 2012 YTD (Units in Millions)
2008
2009
2010
2011
2012 YTD
Android Total Unit Shipments
0.7
7.0
71.1
243.4
333.6
Android Market Share
0.5%
4.0%
23.3%
49.2%
68.2%
Source: IDC Worldwide Mobile Phone Tracker, November 1, 2012
Note: Data are preliminary and subject to change. Vendor shipments are branded shipments and exclude OEM sales for all vendors.
Gartner Says Worldwide Sales of Mobile Phones Declined 3 Percent in Third Quarter of 2012; Smartphone Sales Increased 47 Percent [Gartner press release, Nov 14, 2012]
Samsung Extended Its Lead in the Smartphone Market Widening the Gap with Apple
Worldwide sales of mobile phones to end users reached almost 428 million units in the third quarter of 2012, a 3.1 percent decline from the third quarter of 2011, according to Gartner, Inc. Smartphone sales accounted for 39.6 percent of total mobile phone sales, as smartphone sales increased 46.9 percent from the third quarter of 2011.
While the mobile phone market declined year-on-year, Gartner analysts said there were positive signs for the industry during the third quarter.
“After two consecutive quarter of decline in mobile phone sales, demand has improved in both mature and emerging markets as sales increased sequentially,” said Anshul Gupta, principal research analyst at Gartner. “In China, sales of mobile phones grew driven by sales of smartphones, while demand of feature phones remained weak. In mature markets, we finally saw replacement sales pick up with the launch of new devices in the quarter.”
Smartphones continued to fuel sales of mobile phones worldwide with sales rising to 169.2 million units in the third quarter of 2012. The smartphone market was dominated by Apple and Samsung. “Both vendors together controlled 46.5 percent of smartphone market leaving a handful of vendors fighting over a distant third spot,” said Mr. Gupta.
Nokia slipped from No. 3 in the second quarter of 2012 to No. 7 in smartphone sales in the third quarter of 2012. RIM moved to the No. 3 spot with HTC not far behind, at No. 4. “Both HTC and RIM have seen their sales declining in past few quarters, and the challenges might prevent them from holding on to their current rankings in coming quarters,” added Mr. Gupta.
While seasonality in the fourth quarter of 2012 will help end-of-year mobile phone sales to end users, Gartner analysts said that there will be a lower-than-usual boost from the holiday season. Consumers are either cautious with their spending or finding new gadgets like tablets, as more attractive presents.
Samsung’s mobile phones sales continued to accelerate, totaling almost 98 million units in the third quarter of 2012 (see Table 1), up 18.6 percent year-on-year. Samsung saw strong demand for Galaxy smartphones across different price points, and it further widened the gap with Apple in the smartphone market, selling 55 million smartphones in the third quarter of 2012. It commanded 32.5 percent of the global smartphone market in the third quarter of 2012.
Table 1
Worldwide Mobile Device Sales to End Users by Vendor in 3Q12 (Thousands of Units)
Company
3Q12
Units
3Q12 Market Share (%)
3Q11
Units
3Q11 Market Share (%)
97,956.8
22.9
82,612.2
18.7
Nokia
82,300.6
19.2
105,353.5
23.9
Apple
23,550.3
5.5
17,295.3
3.9
ZTE
16,654.2
3.9
14,107.8
3.2
LG Electronics
13,968.8
3.3
21,014.6
4.8
Huawei Device
11,918.9
2.8
10,668.2
2.4
TCL Communication
9,326.7
2.2
9,004.7
2.0
Research in Motion
8,946.8
2.1
12,701.1
2.9
Motorola
8,562.7
2.0
11,182.7
2.5
HTC
8,428.6
2.0
12,099.9
2.7
Others
146,115.1
34.2
145,462.2
32.9
Total
427,729.5
100.0
441,502.2
100.0
Source: Gartner (November 2012)
Nokia’s mobile phone sales declined 21.9 percent in the third quarter of 2012, but overall sales at 82.3 million were better than Gartner’s early estimate, largely driven by increased sales of the Asha full touch range. Nokia had a particularly bad quarter with smartphone sales, and it tumbled to the No. 7 worldwide position with 7.2 million smartphones sold in the third quarter. The arrival of the new Lumia devices on Windows 8 should help to halt the decline in share in the fourth quarter of 2012, although it won’t be until 2013 to see a significant improvement in Nokia’s position.
Apple’s sales to end users totaled 23.6 million units in the third quarter of 2012, up 36.2 percent year-on-year. “We saw inventory built up into the channel as Apple prepared for the coming holiday season, global expansions and the launch into China in the fourth quarter of 2012,” said Mr. Gupta. With iPhone 5 launching in more territories in the fourth quarter of 2012, including China, and the upcoming holiday season Gartner analysts expect Apple will have its traditionally strongest quarter.
In the smartphone market, Android continued to increase its market share, up 19.9 percentage points in the third quarter of 2012. Although RIM lost market share, it climbed to the No. 3 position as Symbian is nearing the end of its lifecycle. There was also channel destocking in preparation of new device launches for RIM, which resulted into 8.9 million sales to end users in the third quarter of 2012. With the launch of iPhone 5, Gartner analysts expect iOS share will grow strongly in the fourth quarter of 2012 because users held on to their replacements in many markets ahead of the iPhone 5 wider roll out. Windows Phone’s share weakened quarter-on-quarter as the Windows Phone 8 launch dampened demand of Windows Phone 7 devices.
Table 2
Worldwide Mobile Device Sales to End Users by Operating System in 3Q12 (Thousands of Units)
Operating System
3Q12
Units
3Q12 Market Share (%)
3Q11
Units
3Q11 Market Share (%)
Android
122,480.0
72.4
60,490.4
52.5
iOS
23,550.3
13.9
17,295.3
15.0
Research In Motion
8,946.8
5.3
12,701.1
11.0
Bada
5,054.7
3.0
2,478.5
2.2
Symbian
4,404.9
2.6
19,500.1
16.9
Microsoft
4,058.2
2.4
1,701.9
1.5
Others
683.7
0.4
1,018.1
0.9
Total
169,178.6
100.0
115,185.4
100.0
Source: Gartner (November 2012)
Additional information can be found in the Gartner report “Market Share: Mobile Phones by Region and Country, 3Q12.” The report is available on Gartner’s website at http://www.gartner.com/resId=2236115.
Tablets
Digitimes Research: Global tablet shipments to surpass that of notebooks in 2013 [DIGITIMES Research, Nov 19, 2012]
Digitimes Research expects global tablet shipments to reach 210 million units in 2013, up 38.3% on year and surpass those of notebook for the first time, with branded tablet shipments to account for 140 million units, according to Digitimes Research senior analyst James Wang.
[Compare this to the notebook shipment forecast by Digitimes Research of 192 million units in 2012 expected to drop to 189 million units in 2013. See additional details of this forecast below in Digitimes Research: Windows 8 expected to have minimal impact on touch screen notebooks in 2013.]In 2013, Google is expected to maintain its momentum from the Nexus series products and become the second largest tablet brand vendor worldwide with shipments of 19 million units. Apple will remain the largest tablet vendor worldwide, but its share in the global branded tablet shipments will drop to only 55.6% [i.e. 78 million units], down from more than 60% in 2012, and 37.4% in total tablet shipments (including white-box models).
With surging shipment growth for white-box tablets, Android is expected to become the largest platform in the tablet market, surpassing iOS. In 2013, Digitimes Research expects Android-based tablet shipments including white-box and branded models, to reach 121 million units, up 40.2% on year. [With the global 210 millions and branded 140 millions the white-box tablet shipments are expected to grow to 70 million units in 2013 vs. 50 millions this year. Therefore the branded Android based-tablets to become 51 millions, and as the Nexus tablets are said here to become 19 millions there will be 32 millions other branded Android tablets sold in 2013 .]
Digitimes Research also expects global tablet shipments will reach 320 million units in 2015 with branded tablets to account for 220 million units and white-box models to account for 100 million units.
Digitimes Research: Global Tablet Market to Enjoy Strong Shipment Growth in 4Q12 [DIGITIMES Research, Nov 13, 2012]
Global tablet shipments from major brands worldwide are expected to reach 40.93 million units in the fourth quarter of 2012, up 72.7% sequentially and 89.7% on year, according to Digitimes Research senior analyst James Wang.
As for the tablet vendor rankings in the quarter, Apple will remain as the largest vendor worldwide, while Amazon is expected to return as the second-largest and Google will rank third with assistance from its Nexus 7 and Nexus 10. Microsoft will rank fourth, Samsung Electronics fifth, and Barnes & Noble sixth. Asustek, Lenovo and Acer will rank seventh, eighth and ninth, respectively, Wang noted.
As for the tablet processor supplier rankings, Texas Instruments (TI) will return as the second-largest with Nvidia at third. Intel will also be ranked for the first time due to Windows 8.
Taiwan makers are expected to ship 36.6 million tablets combined in the fourth quarter, up 82.3% sequentially and 86.7% on year, with the volume accounting for 89% of global tablet shipments. Foxconn Electronics (Hon Hai Precision Industry) will be the largest tablet maker, followed by Quanta Computer, Pegatron Technology, Wistron and Compal Electronics.
Digitimes Research estimates that global branded tablet shipments will reach 104 million units in 2012, up 64% on year, with iPad accounting for 63% of the volume, down 2pp on year, while both Android and Windows will see their proportions increase.
In comparison the white-box tablet shipments are up by whopping 317% in 2012 at least (50 million units shipped as a minimum vs. 12 million units in 2011) according to sources given below:
Digitimes Research: White-box tablet shipments to surpass 50 million units in 2012 [DIGITIMES Research, Nov 8, 2012]
White-box tablets are expected to see a surge in shipment growth in 2012 with volumes surpassing 50 million units, according to Digitimes Research senior analyst James Wang.
There are three major drivers that will help white-box tablets achieve strong growth in the year: a large number of potential consumers brought in by Android handsets, mature development of China-based processors, and decreasing costs o white-box tablets. With the addition of white-box tablet shipments, Android is expected to surpass iOS and become the largest mobile operating system in 2012, while 7-inch displays will also become the mainstream specification for tablets.
As the branded tablet PC market is seeing fierce competition in terms of technology, capacity, yield rates, patents and prices, the rise of white-box tablets has already made these players a new force in the tablet market, with some white-box players even seeing higher shipment volumes than first-tier vendors.
Digitimes Research believes that brand vendors should be aware of white-box tablet players’ developments in the future, since even platform designers such as Google and Microsoft have used their resources to increase price competition in the tablet market, and the situation may gradually turn to favor China-based players with expertise in lowering costs.
Source: Digitimes Research, November 2012
or from the Chinese version of the same [Nov 9, 2012]:

China Fabless: Rockchip rattled by Android tablet wars [by Junko Yoshida on EE Times, Sept 25, 2012]
…
How many tablets does China make, how big is the Chinese market?
80 percent of media tablets made in China are exported

Unit: Million of units
Source: Chinese industry estimates
For more information see also: Yoshida in China: ‘Shanzhai’ clouds tablet data [EE Times, Nov 8, 2012]
In retrospect: just 4 months ago the forecast was increased from 30 million to 40 million
Global shipments of white-box tablet PCs to reach 40 million units in 2012, say chip designers [DIGITIMES, July 25, 2012]
Forecast global shipments of white-box tablet PCs in 2012 have been upward adjusted from 30 million units originally to 40 million units due to growing demand in emerging markets including China, India, Thailand and Latin America, according to Taiwan-based design houses of ICs used in tablet PCs.
An estimated 10 million white-box tablet PCs were shipped globally in 2011, and shipments increased to 18 million units in the first half of 2012, the sources indicated.
Vendors/makers of white-box tablet PCs currently cluster in Shenzhen and Dongguan, southern China, the sources noted. A large portion originally made netbooks and have stepped into tablet PCs as chips and the Android operating systems have matured, the sources said.
White-box tablet PCs are primarily competitive in price with models launched by own-brand vendors, with retail prices standing at US$59 for 7-inch models and US$149 for 10.1-inch models, the sources indicated.
China market: Domestic chipset vendors ramping up shipments to white-box tablet PC makers [DIGITIMES, July 20, 2012]
China-based chipset solution vendors including Rockchip Electronics and Allwinner Technology have been ramping up their shipments to white-box tablet PC vendors in China, cutting out market share from Taiwan-based VIA Technologies, according to industry sources.
Shipments of white-box tablet PCs in China totaled eight million units in the first half of 2012 and are expected to reach 16-17 million units for the year, compared to 20 million projected previously, the sources indicated.
Rockchip shipped at least 1.6 million tablet chipset solutions in the first half, accounting for 20% of the white-box tablet PC segment. Rockchip’s latest ARM-based dual-core solution, the SoC RK3066, is being built using a 40nm process at Taiwan Semiconductor Manufacturing Company (TSMC), said the sources.
Allwinner has been delivering more of its A10 solutions, which are also manufactured by TSMC utilizing a 55nm process, added the sources.
then came the news that: Demand for white-box tablets keeps growing despite keen competition [DIGITIMES, Oct 15, 2012]
Demand for white-box tablets rolled out by China-based makers remains strong currently despite the launch of US$199 models by Amazon, Barnes & Noble and Google, and the dominance of Apple’s iPads, according to industry sources.
Some white-box makers in Shenzhen are shipping 200,000-300,000 tablets a month, and a number of large-scale operators are even shipping one million units a month, buoyed by their tactics of optimizing hardware specifications, while keeping device prices low, noted the sources.
Most 9.7- or 10.1-inch white-box tablets powered by a dual-core CPU are currently quoted below US$200, while those comparable models with a single-core processor are priced at US$70-120, revealed the sources.
Some 7-inch models built with China-based Allwinner’s A10 solutions can be available for US$50, the sources added.
Additionally, the FOB prices of US$150-250 for 9.7-inch white-box tablets with dual-core CPUs, high resolution displays and 3G modules are also competitive in emerging markets, the sources commented.
Some tablet exhibitors at the ongoing HKEF 2012 (Hong Kong Electronics Fair, Autumn Edition) estimate that China-based white-box makers as a whole are shipping four million tablets a month currently.
Allen Wu, president, ARM China, predicts that shipments of Android-based tablets by China makers are likely to reach 50 million units in 2012 and increase to 100 million units in 2013.
Over 5.0 million Nexus 7s to be shipped in 2012, say Taiwan makers [DIGITIMES Research, Nov 19, 2012]
At the end of the second quarter, Google expected shipments of 2.5 million Nexus 7s in 2012 but since then it has continually placed additional orders in view of booming sales, with the cumulative shipment volume in 2012 will reach 5.0 million units based on orders released, according to Taiwan-based players in the supply chain.
While international vendors usually place orders for shipments to peak in October and November to meet year-end peak demand beginning in late November, Nexus 7 shipments are expected to remain at a high level of 700,000-1,000,000 units in both November and December, the sources pointed out.
After the launch of the 16Gb Nexus 7 for sale at US$199 and a 32GB version at US$249, Google on November 13 launched a 32GB 3G-enabled Nexus 7 for sale at US$299 and Google Play and Google’s partner AT&T have sold out available stock, the sources indicated.
While the iPad mini is thought of as a major competitor for the Nexus 7, Taiwan-based iPad mini supply chain makers indicated that Apply has not adjusted order volumes since the tablet was launched and monthly shipments remain at nearly 4.0 million units currently.
Digitimes Research: Google will become more influential in tablet market [DIGITIMES Research, Nov 2, 2012]
Senior analyst James Wang of Digitimes Research believes that Google’s recently announced Nexus 10, developed in cooperation from Samsung Electronics, and upgraded storage for the Nexus 7, are aimed at starting competition with players such as Apple, Amazon, Barnes & Noble and China-based white-box tablet vendors.
Since Google has prepared a full-range of tablet products, Wang believes the company’s entry-level Nexus tablet, that has not yet been announced, will have the strongest influence on its competitors.
Google’s Nexus 7 shipments performed better than expected, and are forecast to reach 4.3 million units in 2012, accounting for about 20% of non-Apple tablet shipments (excluding white-box models), while the volume in the fourth quarter is also expected to enjoy sequential growth despite the weak global economy, Wang pointed out.
Digitimes Research estimates that Google’s Nexus series tablets will see total shipments of 19 million units in 2013
accounting for 50% of non-Apple tablet shipments. [In a later estimate Wang raised the shiments of other branded Android tablets to 32 millions, see also here in the beginning, so Google’s Nexus marketshare now is only 37% in its own category.]
But note: Nexus 7 not yet allowed to enter China market [DIGITIMES Research, Sept 11, 2012]
While the Nexus 7, the tablet co-developed by Google and Taiwan-based vendor Asustek Computer, has been witnessing booming sales in major markets around the world, it is difficult for the model to be available for sale in the China market because the China government has not yet approved its import, according to industry sources in Taiwan.
The China government’s negative attitude is interpreted as a response to Google’s announcement of withdrawing from the China market in March 2010, the sources pointed out. It is difficult for the Nexus 7 to enter the China market, even through sale of Asustek’s marketing network there, the sources indicated.
Without the Nexus 7 in the market, China-based white-box vendors of tablets are under much less competitive pressure, the sources indicated. This is because the Nexus 7 has the advantage of Google’s and Asustek’s brand image with commensurate product quality and is expected to be strongly competitive with 8GB Android 4.0 tablet models in the 7- to 9-inch range launched by China-based white-box vendors, including Ainol, Onda, Teclast and Cube, at US$149, the sources pointed out. In addition, the Nexus 7 will bring competitive pressure on tablet PC models of equal specifications offered by Samsung Electronics and China-based vendors Lenovo and Hasee Computer in the China market, the sources indicated.
Without the China market, the cumulative global sales volume of Nexus 7 will reach an estimated 3.5 million units at the end of 2012, the sources noted.
Google attitude against modified Android may lead to split in Android, say Taiwan handset makers [DIGITIMES Research, Sept 18, 2012]
Google’s opposition to Taiwan-based vendor Acer’s launch of the A800, a smartphone based on the Alibaba-developed operating system Aliyun, reflects Google’s attempt to check development of modified Android platforms, but if Google cracks down on this, developers of modified Android platforms may be forced to offer own-brand smartphones or tablets and give up on Android, resulting in an increased split in the adoption of Android, according to Taiwan-based handset supply chain makers.
Google explained that Aliyun is incompatible with the Google ecosystem and therefore unable to ensure a consistent user experience among developers, makers and consumers, the sources noted. In response, Alibaba emphasized that Aliyun, while based on open-source Linux as Google is, is not part of the Google ecosystem and therefore is not necessarily compatible with the ecosystem, the sources indicated.
Developers of modified Android platforms such as Amazon and Alibaba are not members of the Open Handset Alliance and are Google’s competitors, they need not care about Google’s attitude, the sources pointed out. However, smartphone vendors need to cooperate with Google to offer Android models and therefore have to be concerned about Google’s attitude against modified Android platforms, the sources indicated.
If Google cracks down by prohibiting smartphone vendors from adopting modified Android platforms, developers of modified Android platforms, such as Amazon, may skip vendors to directly partner with ODMs to offer their own-brand devices, with such platforms to set up their own ecosystems and thereby become more competitive with Android, the sources pointed out. For some China-based smartphone vendors which have adopted many locally developed applications, because losses arising from forgoing Android may be small, they may shift to a modified Android platforms.
Among China-based smartphone vendors, only Huawei Technologies, ZTE, Lenovo, Haier, Oppo and a few others joined the Open Handset Alliance, the sources noted. As China is the largest smartphone market around the world, Google had better pay attention to response from web service operators, smartphone vendors and consumers, the sources pointed out.
Commentary: Is it a blessing for Asustek to have Google backing? [DIGITIMES, Nov 7, 2012]
Asustek Computer has seen its brand image improve in the US and Japan recently thanks to the launch of dual-branded Nexus 7 in cooperation with Google. Asustek is proud of its product design with regard to the Nexus 7, and also aims to capture the top-vendor ranking in the Android tablet segment. But it remains to be seen whether Asustek will be able to continue to expand its brand image based on the charm of the Nexus 7, since Google has announced its Nexus 10 in conjunction with Samsung Electronics.
Google has been backing Asustek in the development of the Nexus 7, offering the Taiwan-based hardware vendor the priority to design-in its latest Android OS and to penetrate into the US tablet market jointly.
Due to aggressive pricing set for the Nexus 7, industry watchers have wondered whether the Google-Asustek cooperation would generate profits for Asustek before the production of the 7-inch tablet reaches economies of scale. But for Asustek, the dual-brand marketing was not aiming at generating profits initially but rather improving its brand image, particularly in North America.
Optimizing Asustek’s design capability and Quanta Computer’s manufacturing muscle, the Google-Asustek team is able to set the price of the Nexus 7 lower. The low-priced tactics is working as sales of the Nexus 7 have been better than expected, while Asustek’s notebook sales in the US are also improving.
Some industry watchers now estimate that total shipments of the Nexus 7 are likely to reach 4-4.2 million units by year-end 2012, while Asustek will also be able to sell more of its own brand notebooks in the US.
But the skepticism about the merits of the Google-Asustek tie-up still remains, since Google has showed its intention to control the development of the Android market, optimizing the production of the 7-inch Nexus 7 at Asustek and the 10-inch model at Samsung. Furthermore, the latest market rumors also indicate that Google may also team up with Lenovo for penetrating into the China market.
Does Google treat Asustek as a brand partner or an OEM supplier? John Lagerling, director of business development for Android, seems to have an answer to the question.
When approached by the New York Times during a recent interview seeking a confirmation of Asustek’s remarks that current shipments of the Nexus 7 have reached as many as one million units a month, Lagerling replied, “We haven’t announced numbers. We typically don’t allow our partners to announce numbers.”
The message clearly indicates that Google treats Asustek as an OEM partner, but not a dual-brand partner.
In the worst-case scenario, Google may tie up with other vendors such as HTC and Lenovo to develop its next-generation Nexus tablets, which will place Asustek under fire from rivals vying for the Android tablet market.
Asustek has estimated its tablet shipments to reach 6.3 million units in 2012, of which the Nexus 7 will account for over four million. In other words, shipments of Asustek’s own brand Transformer and Padfone tablets are limited.
Asustek’s competitive advantage will wane further if it fails to win the design-in priority for the next-generation Nexus tablets.
The emerging new trends
in the premium ecosystem of the Windows devices
[Windows] Notebooks
Third-generation ultrabooks may be able to achieve 40% of notebook shipments, say players [DIGITIMES, Dec 11, 2012]
As Intel failed to achieve its goal of having ultrabooks account for 40% of total notebook shipments with its Ivy Bridge platform, and the proportion only reached about 10%, sources from notebook players believe the goal may be achievable with the upcoming Haswell platform, which is set to launch at the end of second-quarter, 2013.
The sources pointed out that compared to Ivy Bridge, Haswell’s stronger performance and cheaper price, plus the expectation that Windows 8 should become more standardized by then, should mean ultrabooks have a chance to account for 40% of total notebook shipments by the end of 2013.
Although vendors have released ultra-like notebooks with prices around US$699-899 as alternatives, since these devices lack attractiveness in terms of design and weight, while ultrabook models with specifications similar to the MacBook Air have prices a lot higher than the MacBook Air, most consumers have turned to purchase Apple’s product instead, the sources noted.
Digitimes Research: Surface tablet to mainly devour notebook demand in the short term [DIGITIMES Research, Oct 30, 2012]
Microsoft’s recently launched own-brand Surface tablets have raised the question of whether Surface will devour consumer demand for tablets or notebooks, or maybe even both. In terms of hardware, Surface is capable of satisfying consumer demand for notebooks, but to replace other tablets, it still requires a more complete app software ecosystem, according to Digitimes Research senior analyst James Wang.
Currently, the major difficulty Surface faces in gaining a competitive edge in the tablet market is the lack of a complete app software ecosystem, which means that if Surface can achieve growth in the short term, it will mainly be at the expense of demand for notebook products.
To let Surface to become a tablet killer instead of a notebook killer, Microsoft must expand shipments of Windows RT devices to attract application designers to join and establish an ecosystem. However, due to Android’s existence in the market, most notebook vendors are hesitant about joining the Windows RT market.
Although IBM, Microsoft and Intel were able to defeat Apple previously with an open platform strategy, due to Android’s existence, Microsoft will be unable to compete against Google in terms of business model and will be forced to head to the same business direction as Apple of having a closed platform with integrated software and hardware, making it even more difficult for Microsoft to build a complimentary ecosystem built on the Windows RT platform.
The most popular strategy for platform competition is to offer a free or low-price product or service to attract users and establish an ecosystem to strengthen consumer loyalty, and then seek methods to gain profit. Apple, Google and Amazon’s strategies are all similar – by abandoning profit from some segments including hardware, operating system, software, digital content or advertising, they are able to increase their profits from the remaining segments; however, for Microsoft, since all the above segments belong to different business units, internal struggles and external industry fluctuations will all affect Microsoft’s performance in the future.
Digitimes Research: Windows 8 expected to have minimal impact on touch screen notebooks in 2013 [DIGITIMES Research, Nov 13, 2012]
Shipment growth for touch screens used in notebooks throughout the fourth quarter of 2012 and most of 2013 will at large not be affected by the release of Windows 8, according to Digitimes Research.
Research indicates that consumers are more likely to purchase tablets throughout the time period because of the wide variety of tablet products available, and because of the difference in pricing between tablets and notebooks.
The notebook shipment forecast is expected to drop by 192 million units in 2012 to 189 million units in 2013 as a result, as well as due to a lack of recovery in the global economy.
However, Digitimes Research pointed out that the expected drop in notebook shipments will also be due to notebook makers increasing the mainstream sizes of their products to 14- and 15-inch, which will thus decrease the amount of panels available for producing notebook products.
Despite the shipment drop, the usage rate for touch panels used in notebooks is expected to increase to 10% in 2013, added Digitimes Research.
Digitimes Research: Asustek to compete with Acer for top-3 worldwide notebook vendor spot in 2013 [DIGITIMES Research, Nov 15, 2012]
Weak Global notebook demand is expected to reshuffle the top-10 notebook brand rankings in 2013, with Lenovo expected to successfully take over Hewlett-Packard’s (HP) leading position. Meanwhile, Asustek Computer, which will rank as the fourth-largest brand vendor worldwide in 2012, will compete against Acer to become the third-largest vendor in 2013.
Toshiba, the sixth-largest notebook brand worldwide in 2012 is expected to be surpassed by Apple in 2013.
With top brand vendors starting to lose their edge, the four new stars in the notebook brand market – Lenovo, Asustek, Apple and Samsung – are expected to see their combined market share rise from 40.9% in 2012, to 43.2% in 2013.
As for upstream ODMs, their contributions to global notebook shipments is expected to grow from around 70% in 2011 to 75% in 2013, while electronic manufacturing service (EMS) providers will step out of the design business and turn to focus mainly on manufacturing.
In 2013, Pegatron Technology and Wistron are expected to have the best performance among the top-five makers as the former will benefit from increased orders from Lenovo and Fujitsu, while the later will benefit from its enlarged cooperation with Asustek.
Source: Digitimes Research, November 2012
HP, Lenovo aim to ship 40 million notebooks each in 2013, say Taiwan makers [DIGITIMES, Nov 19, 2012]
Despite a stagnant global notebook market in 2012, Hewlett-Packard (HP) and Lenovo aim to ship 40 million notebooks each in 2013, respectively increasing by 25% and 33.3-37.9% from 2012, according to Taiwan-based supply chain makers.
As there have been no signals to indicate an economic rebound in the US and Europe, and demand for Windows 8 notebooks will not take off in the near future because consumers will take time to get accustomed to the new operating system, HP and Lenovo may be too optimistic about their notebooks sales in 2013, the sources analyzed.
Among other vendors, Samsung Electronics aims to ship 17 million notebooks and 40 million tablets in 2013, hiking from 2012 by 21.4% and 300% respectively, while Toshiba and Acer have set respective goals of shipping 20 million units, growing from 2012 by 25%, and 28 million units which will rise by 7.7%, the sources noted.
Lenovo 3Q12 global PC market share rises to 15.6% [DIGITIMES, Nov 9, 2012]
Lenovo saw its total global sales volume of notebooks, desktops and tablets during the third quarter of 2012 increase by 10.3% on year, with corresponding global market share rising to 15.6%, according to the company’s fiscal second-quarter 2012 (July-September) report released on November 8.
Lenovo posted sales revenues of US$8.7 billion, gross margin of 12.1%, net operating profit of US$206 million, pre-tax profit of US$204 million, and net profit of US$162 million for the third quarter of 2012.
Lenovo reached the largest PC market shares in China, Japan, India, Russia and Germany in the third quarter, and is likely to do so soon in Brazil, the company pointed out.
Lenovo shipped 8.5 million handsets in the third quarter, of which seven million were smartphones, the company indicated.
Notebook vendors headhunt R&D talent from ODM partners [DIGITIMES, Nov 19, 2012]
As notebook brand vendors grow more interested in-house R&D and manufacturing to promote their brand image, sources from the upstream supply chain have seen some notebook vendors starting to headhunt talent from their ODM partners.
Sources from notebook ODMs also pointed out that vendors have changed their outsourcing strategies and will check with their chassis and hinge suppliers for component materials and prices, and have their in-house R&D teams complete industrial design before handing the work to ODMs.
The sources pointed out that the new strategy is expected to expand in the notebook industry in 2013 and should benefit notebook brand vendors in terms of gaining more control over component costs as well as keeping their product designs confidential.
Acer and Hewlett-Packard (HP) have already started adopting the strategy.
Acer recently pointed out that the company will increase its R&D investment by 20% each year for the next three years. The company currently has about 1,000 R&D engineers. Lenovo will also continue strengthening its R&D and manufacturing abilities and is set to achieve an in-house production rate of 20% in 2013. Samsung’s in-house production rate is expected to maintain at 85-90% in 2013.
Notebook ODMs offer extra services to attract tablet orders [DIGITIMES, Nov 19, 2012]
With notebook shipments estimated to only have a single-digit percentage growth on year in 2013, notebook ODMs including Quanta Computer, Compal Electronics and Wistron, are aggressively trying to land tablet orders by offering extra services, according to sources in the upstream supply chain.
In addition to offering preferences over price, product specifications and shipment conditions, Compal and Wistron also offer their exclusive touchscreen solutions from related subsidiaries to attract downstream brand vendors to place orders.
Meanwhile, Quanta is offering services through its cloud computing expertise and the company reportedly has assisted brand vendors such as Amazon, to build data centers and successfully acquired their tablet orders.
In 2013, Compal estimates it will ship 6-8 million tablets, up from two million units in 2012, while Wistron expects its tablet shipments to reach six million units, up from 2.5 million units in 2012, and Quanta with shipments of 14-15 million units, up from 10 million units in 2012.
11.6-inch becomes niche-market size for notebooks, say Taiwan makers [DIGITIMES, Nov 15, 2012]
As global sales of netbooks have been decreasing due to competition from tablets, 11.6-inch has become niche-market size, according to Taiwan-based notebook supply chain makers.
Among notebook screen sizes, 11.6- and 13.3-inch have accounted for a relatively small proportion of total shipments, the sources indicated. However, as Samsung Electronics and Acer have launched inexpensive 11.6-inch Chromebooks and Asustek Computer has launched a 11.6-inch VivoBook touch-control notebook, an increasing number of 11.6-inch notebooks are available for sale, the sources commented.
Despite shrinking sales, demand for netbooks still exists, especially in emerging markets, the sources indicated. As most netbooks are have screen sizes of 10-inch, and 10.1-inch is so far the upper limit for typical tablet screen sizes, 11.6-inch notebooks are likely to see considerable demand in the global market, the sources pointed out.
Windows 8 may not start a PC replacement trend for enterprises until after 2014 [DIGITIMES, Nov 19, 2012]
Demand for Microsoft’s Windows 8 is unlikely to start emerging until 2013 for the consumer market, while for the enterprise market, demand is expected to come at an even later time and may not appear until 2014, according to sources from the PC industry.
Although Microsoft is trying to present its latest innovations in Windows 8 to response to consumers’ fluctuating demand, it turns out that consumers need more time to understand the new advantages that the product provides and relatively delay acceptance for the new operating system.
Although notebook brand vendors have a high expectation for the year-end holidays this year, their order placement to the upstream supply chain still shows they are cautious about the shipment performance during the traditional peak season.
To prompt enterprises to adopt Windows 8, Microsoft has recently noted that the company will stop providing support to Windows XP in April, 2014 with most of the enterprises expected to turn to Windows 7 and some to Windows 8 as stability and necessity are the major considerations for enterprises to make a purchase.
Component makers concerned Windows 8 demand may not emerge until 1Q13 [DIGITIMES, Nov 19, 2012]
Some upstream component makers have recently started to be concerned that the PC replacement trend expected to be brought on by Windows 8 may not occur in the fourth quarter of 2012 as originally estimated, but will take off in the first quarter of 2013, according to sources from upstream supply chain.
Since an operating system usually needs to have serious debugging after launch, the sources believe consumers may hold back their new PC purchases until some time later and their actions would impact demand for Windows 8-based systems in the fourth quarter.
However, the component makers are still placing high hopes on the new operating system to bring growth.
Notebook ODMs facing uncertainty as brand vendors take over R&D [DIGITIMES, Nov 7, 2012]
Acer plans to release a new notebook that is designed and developed in-house, creating an alert among notebook ODMs that brand vendors are trying to become more involved in R&D and the component purchasing of their notebook products which could impact ODMs’ profitability, according to sources from the upstream supply chain.
The sources pointed out that Acer’s in-house developed notebook features Windows 8 and a touchscreen display and will be showcased at Consumer Electronics Show (CES) in 2013, at the earliest. Related R&D has already been completed and Acer is currently seeking a partner to conduct assembly.
So far, the device is the only in-house developed project that Acer plans to release in the short term and shipments will be limited, indicating that the project is a test for Acer to try out its R&D capabilities, the sources noted.
With Lenovo also planning to expand its in-house production by establishing its own plants, if Acer also decides to conduct R&D in house, it could seriously impact the values of ODMs for their clients.
However, some ODMs pointed out that they are not concerned about the moves and believe the possibility of the new business model emerging is low since the brand vendors have already outsourced their R&D to ODMs for a long time, and rebooting their R&D capabilities will require a long period of learning.
Since Wintel is no longer dominating the PC market, brand vendors will also need to spend R&D resources on ARM and Android, which would seriously increase their burden.
At its Windows 8 product launch conference, Acer also revealed that the company will focus more on product R&D and will increase its R&D resources by at least 20% every year.
Commentary: Notebook ODMs face uncertainties in tablet market [DIGITIMES, Nov 7, 2012]
The rise of tablets and smartphones, plus the economic downturn in the US and Europe, have been causing PC brands such as HP, Dell and Acer to report unsatisfactory sales results. This has been affecting the performance of notebook ODM firms such as Quanta Computer, Compal Electronics and Wistron.
ODM firms have been hoping that Windows 8 can stimulate a new wave of demand as consumers switch to new PC models with the Microsoft operating system in 2013. Also, ODM firms have been aggressively fighting over tablet orders as demand in 2013 is likely to reach 200 million units.
Quanta Computers targets revenues from non-notebook business to increase to 30% of total revenues in 2012. Compal is looking to ship 6-8 million tablets in 2013, while Wistron aims to achieve its tablet shipment target of 6 million units in 2013.
Compal’s and Wistron’s targets of shipping 6-8 million tablets to a market whose total shipments are expected to reach 200 million in 2013 show how difficult it has been for notebook ODMs to obtain tablet orders.
One of the reasons is that most of the market has been dominated by Apple while other tablet vendors such as Amazon and Google have yet to see strong sales. Manufacturing orders have been over-concentrated, causing tough competition among firms. As a result, both Quanta and Compal have trimmed their tablet divisions.
The ODM firms have been facing uncertainties regarding tablet orders, such as multiple platforms, unstable orders, and different device sizes.
Apple’s iOS and Google’s Android platforms continue to dominate the market while Microsoft’s Windows comes in third. Samsung is planning to develop its own platform and HP’s webOS may also become one of the major players. The multiple platforms mean firms need to bet on the right one to maintain orders.
As for orders, clients may place large volumes expecting strong sales in the end market. But when sales turn out worse than expected, inventory will build up and orders will be cut. That is the case with Amazon’s Kindle Fire earlier this year. For the tablet segment, manufacturing partners are under much higher pressure from inventory management.
Another uncertainty comes from the size of the devices. There are currently products that are 7-, 8.9-, 9.7-, 10.1-, and 11.6-inch. A small difference in size can mean significant differences in revenues.
In addition, profits have been unstable. Some tablet brands want to increase market share by resorting to low price and sacrificing their gross margin. This directly affects the profit margin of ODM firms.
Taiwan component makers worried about Lenovo plans to hike in-house notebook production [DIGITIMES, Oct 8, 2012]
As China-based vendor Lenovo plans to increase in-house production of own-brand notebooks and will therefore procure components instead of letting ODMs release orders, as a result Taiwan-based component makers have felt pressure of losing orders, according to Taiwan-based notebook supply chain makers.
In-house production currently accounts for 20-30% of Lenovo’s shipments of notebooks, desktops and other types of PCs, the sources indicated.
Lenovo will have LCFC (Hofei) Electronics Technology, its joint venture with Taiwan-based ODM Compal Electronics in Hofei, northern China, start volume production at the end of 2012 or the beginning of 2013, to increase in-house production of notebooks, the sources pointed out. In addition, Lenovo is setting up PC production lines in the US and will do so in Brazil in 2013, with volume production to begin in 2013, the sources noted.
In addition to increasing in-house production, Lenovo may set up a supply chain consisting of China-based component makers, the sources pointed out.
Compal/Lenovo joint venture expected to output 3-5 million notebooks in 2013 [DIGITIMES, Sept 4, 2012]
The notebook manufacturing joint venture of Compal Electronics and Lenovo in Hefei, China was reported by local media to enjoy more than 10 million units of notebook production volume in 2013, but sources from notebook players estimate that the plants may only be able to output around 3-5 million units next year as their yield rates still need improvement, while the related process of shifting orders from other ODMs to the joint venture may also affect the total output volume from the joint venture.
The sources pointed out that Compal and Lenovo’s cooperation will create benefits for both firms as Lenovo will be able to directly control the quality of its products, understand the ODM manufacturing process and reduce its cost, while Compal will be able to tighten its relationship with Lenovo and benefit from Lenovo’s orders.
The joint venture will start pilot production in October and start mass production in the fourth quarter of 2012 with monthly capacity at around 300,000 units. Initially, the plants will focus on notebook production, but will later add production for all-in-one PC. The local media has reported that the plants will manufacture about one million notebooks in 2012, 13 million units in 2013 and 20 million units in 2014.
Currently, Lenovo has 51% stakes in the joint venture with Compal holding the remaining 49% and some market watchers are concerned that Lenovo may shift all its Compal orders to the joint venture, affecting Compal’s own orders and profitability since Compal will need to share its profit with Lenovo for any order received by the joint venture.
Commenting on the concerns, Compal president Ray Chen has noted that the two firms have already signed a contract to avoid from this type of situation, but he refused to reveal further details of the contract.
In 2013, sources from the supply chain pointed out that Lenovo will still maintain about 30% of notebook shipments being in-house manufactured and will outsource the remaining 70% with the orders to the joint venture considered as outsourcing.
Compal Electronics lays off tablet R&D, testing personnel [DIGITIMES, Oct 23, 2012]
Taiwan-based notebook and tablet ODM Compal Electronics has laid off more than 100 employees responsible for tablet R&D and testing.
Compal confirmed the layoffs, explaining that the company recruited staff members to meet growing orders for tablets in 2011 but orders received have been far short of expectations and therefore it is necessary to adjust manpower. Although Compal stressed that only one wave of layoffs is planned, internal sources indicated that there may be more.
Compal’s staff cuts signal that tablet vendors have encountered difficulties and notebook supply chains are under pressure, industry sources pointed out. For tablet vendors, the iPad has dominated the high-end segment while competition in among entry-level models, which includes the Amazon Kindle Fire series and Google Nexus 7, is already intensive, the sources analyzed. In addition, tablet vendors originally rested their hopes on Windows 8 models, but Microsoft’s launch of the Windows RT Surface at US$499, and Apple’s planned launch of the iPad mini will cut into their competitive advantages, the sources said.
Compal’s tablet clients are mainly Acer and Lenovo, the sources indicated.
In September 2011, Quanta Computer laid off over 1,000 production line workers due to a large decrease in orders for tablets from RIM, and in October 2011 Inventec laid off 432 employees because Hewlett-Packard reduced its tablet orders.
Lenovo to launch a table-shaped all-in-one PC [DIGITIMES, Nov 5, 2012]
Lenovo plans to launch a Windows 8-based all-in-one PC that features
asimilar industrial design asMicrosoft’s Surface[on June 18, 2012, a Microsoft tablet of the same name was unveiled, the original Microsoft Surface was rebranded as Microsoft PixelSense, see the About Microsoft PixelSense [Microsoft PixelSense press page, June 18, 2012]], a table-shaped PC. The machine features four legs and when the display is laid flat, it becomes like a table and can be used by multiple users simultaneously, according to sources from the upstream supply chain.The all-in-one PC features a 27-inch display with initial shipments of 20,000 units.
In addition to Lenovo, Acer, Asustek Computer and Hewlett-Packard (HP) all plan to launch new all-in-one PCs with some models will appear as soon as the end of 2012.
At Computex 2012, Asustek chairman Jonney Shih demonstrated an all-in-one PC product under its Transformer series and the all-in-one PC can be detached and become an 18.4-inch tablet, supporting both Windows 8 and Android; however, the product, so far, still has not yet been mass produced.
Meanwhile, Acer has also launched two Windows 8-based all-in-one PCs with special designed hinge and Lenovo also displayed its IdeaCentre A720 with a function to lay out flat.
In 2012, all-in-one PC shipments are expected to reach 16.4 million units, up 20% from 13.7 million units in 2011, according to figures from IHS iSuppli, while IDC also forecast that the all-in-one PC shipments will reach 17 million units in 2013.
[Windows] Smartphones
FIH reportedly lands handset orders from Microsoft and Amazon [DIGITIMES, Nov 26, 2012]
Foxconn International Holding (FIH) has reportedly landed handset orders from Microsoft and Amazon and is set to launch the devices in mid-2013, according to sources from the upstream supply chain. However, both the parent company Foxconn Electronics (Hon Hai Precision Industry) and FIH declined to comment about clients or orders.
Foxconn is the major manufacturer of Apple’s iPhone products, while its subsidiary FIH has clients including Nokia, Sony, Lenovo, Huawei and ZTE.
Microsoft’s own-brand handset will adopt its Windows Phone 8 operating system, the sources noted.
The sources pointed out that Microsoft and Amazon’s own-brand handsets will only have a limited shipment volume initially and may become a new business model for the manufacturers in the future.
In addition to provide manufacturing services to first-tier brand vendors, FIH also supplies white-box handsets to regional vendors in China, Europe and the US.
Taiwan IC design houses to benefit from Samsung aggressive product roadmaps in 2013 [DIGITIMES, Dec 7, 2012]
… the Korea-based vendor is reportedly set to adopt a more aggressive ‘shotgun’ strategy wherein many models will be created in the smartphone, tablet, notebook, LCD TV and DSC sectors that cover a wide range of market segments in 2013, according to industry sources.
In the smartphone sector, Samsung will move into the Windows Phone platform and roll out models targeting the entry-level, mid-range and high-end segments simultaneously, in an attempt to duplicate its success in the Android space, the sources revealed.
Digitimes Research: Android phones to account for 70% of global smartphone market in 2013 [DIGITIMES Research, Dec 6, 2012]
Shipments of Windows Phones, including 7.x and 8.x models, will grow 150% on year to 52.5 million units in 2013 for a 6.1% share
Worldwide Mobile Phone Growth Expected to Drop to 1.4% in 2012 Despite Continued Growth Of Smartphones, According to IDC [IDC press release, Nov 1, 2012]
For the year, smartphone shipments are forecast to grow 45.1% year over year to 717.5 million units.
…
Windows Phone will battle with BlackBerry for the number three spot in 2013, but will gain further clarity in the years that follow. Windows Phone will build on the progress it made in 2012, with Nokia establishing its presence and HTC solidly jumping back into the race. Moreover, contributions by Samsung, ZTE, and Huawei will help grow its footprint. With more vendors releasing more devices aimed at multiple segments, sales associates will be better positioned to tell a compelling Windows Phone story and to explain the value of Windows Phone’s differentiated experience compared to market leaders Android and iOS.
…
Top Smartphone Operating Systems, Forecast Market Share and CAGR, 2012–2016
Smartphone OS
2012 Market Share
2016 Market Share
CAGR 2012 – 2016 (%)
…
…
…
…
Windows Phone
2.6%
11.4%
71.3%
…
…
…
…
Total
100.0%
100.0%
18.3%
Source: IDC Worldwide Mobile Phone Tracker, December 3, 2012
The previous forecasts taken together mean:
– IDC: 18.7 million Window Phones in 2012 (calculated as 2.6% of 717.5 million units)
– IDC: 161 million Window Phones in 2016 (with 71.3% CAGR of that 18.7 million)
– DIGITIMES Research + IDC: 46.6 million Window Phones in 2013 (150% growth predidicted for WP in 2013 by DIGITIMES Research over 18.7 million given by IDC for 2012)
which makes DIGITIMES Research’s forecast of 52.5 million Window Phones in 2013 quite feasible for me, at least for three reasons:
-
Samsung aggressive move into the Windows Phone platform as noted above by DIGITIMES.
-
The kind of breakthrough for the WP8 Lumias, and WP8 in general, especially against iPhone 5, as described by my recent blog entries ragarding:
High-end smartphones state-of-the-art:
– Lumia 920 vs. iPhone 5 (and vs. Android, Galaxy S3, HTC One X+) [Dec 7, 2012]
– Windows Phone 8 vs. Android 4.1 and 4.2 [Dec 6, 2012] -
The additional, not yet recognized end-user and business partner advantages as described in all detail in my:
– Lead post: Marko Ahtisaari from Nokia and Steven Guggenheimer from Microsoft on the Internet of Things day of LeWeb Paris’12 [Nov 6, 2012]
Uncertain Windows 8 future may relatively affect Windows Phone 8 [DIGITIMES, Nov 5, 2012]
Although Microsoft has been aggressive promoting its new Windows 8 operating system (OS), a weak global economy has the notebook supply chain remaining conservative about the OS’ contribution to their performance in the fourth quarter and the OS’ uncertain future may relatively affect the software giant’s plan for its Windows Phone 8 platform, according to sources from the upstream supply chain.
Microsoft’s aggressive promotion of Windows 8 touchscreen functions is meant to blur the boundaries between smartphone, tablet, notebook and desktop through a similar usage experience, while expanding its advantages in the IT industry through a unified OS platform structure and gain some benefits from the smartphone market, where the company is currently still behind.
Microsoft originally hoped to strengthen its Windows Phone 8 penetration through a PC replacement trend brought by Windows 8, but since the OS may not trigger a replacement trend as expected, while Microsoft’s smartphone partners such as High Tech Computer (HTC) and Nokia are also conservative about their Windows Phone 8-based product shipments, the sources believe Microsoft’s plans for its operating systems will be further delayed.
Microsoft’s launch of own-brand smartphones in 2013?
It is based on rumors that Microsoft Is Reportedly Testing Its Own Smartphone [TechCrunch, Nov 2, 2012]
First it built the Surface, and now Microsoft is said to be working on another new hardware product, this time a smartphone. That’s according to a new report from the Wall Street Journal, which says Microsoft is currently working with Asian component suppliers on its own handset design, though it isn’t yet clear whether or not the device will ever go into mass production.
Details about what a Microsoft smartphone would look like are scarce, but the report does say that the version being currently tested has a screen between four and five inches, which is in keeping with recent designs from Apple and Android handset OEMs. It’s also probably pretty reasonable to assume that any device Microsoft puts out now will have more in common with the flagship phones from its hardware partners for Windows Phone 8, which include Nokia and HTC, than with its previous Kin smartphones. The teen-focused Kin carried Microsoft’s branding, but was made by Sharp, and lasted only 48 days on the market.
Microsoft had made a more dedicated approach to creating its own hardware with the Surface, albeit to mixed reviews. And as the WSJ reports, it’s also been more aggressive about enforcing hardware standards with its partners in recent years, both in terms of the look and makeup of Windows-certified PCs and in minimum specs for partner mobile handsets. That Microsoft could be considering an approach like Apple’s, wherein it would sell both hardware and software and control all aspects of the ecosystem, definitely seems more plausible than it has in the past.
Also, rumors have been building that Microsoft is working on a smartphone since back in June, thanks to Nomura analyst Rick Sherlund, who said that Microsoft was already working with a “contract manufacturer” to create their own Windows Phone 8 mobile device. Then at the beginning of October, Boy Genius Report received a tip that Microsoft was indeed working on its own smartphone, that would sell alongside and compete with partner OEM devices like the HTC 8X and Nokia Lumia 920. The company has shown it’s willing to go there with the Surface, and Nokia CEO Stephen Elop even said on a conference call two weeks ago that a Microsoft-made device would be a boost to the entire Windows Phone 8 device sales ecosystem.
Even if it didn’t become a top seller in and of itself, a Microsoft-branded smartphone could offer Windows Phone what the Nexus line provides Android: a place to show off the latest and greatest software, experiment and build hype around the platform. I think the biggest risk would be in potentially alienating hardware partners, but so far the Surface doesn’t seem to have dampened the enthusiasm of Windows PC OEMs all that much, and Elop has already declared his support. If nothing else, a Microsoft-made Windows Phone 8 smartphone would be interesting, and generating interest is maybe the key ingredient to Microsoft’s future mobile success.
Why Microsoft believes latest-gen Windows Phones are ‘killer hardware’ [TechRadar, Nov 18, 2012]
INTERVIEW We talk to the head of Windows Phone: Terry Myerson
For the last year, Nokia has been the poster child for Windows Phone but recently HTC and Samsung have seemed more in favour.
Samsung announced their Windows Phone 8 handsets first and the HTC 8x was handed out to enthusiasts at the Windows Phone 8 launch.
We asked corporate vice president of the Windows Phone Division Terry Myerson to explain how Microsoft juggles partnerships with rival phone makers and how much influence manufacturers have on the design of Windows Phone.
“We work in different ways with each of them on the engineering and on the marketing,” Myerson told TechRadar.
Nokia gets priority when it comes to development because of the commitment it’s made to Windows Phone; “Nokia is exclusive to Windows Phone and we definitely, on the engineering side, prioritise platform work to support their differentiation coming through.”
Despite the restrictions it puts on handset specs, Microsoft doesn’t want to see the same handset from every phone maker. “Our goal is that Windows Phone is a platform that our partner differentiation can shine through on.
We do spend time planning with HTC and Samsung, sitting down with them and collaborating on what a product is where their differentiation elegantly coexists with Windows Phone and what we bring. There are different cultures to each of these companies and they all have their own plans for how they want to bring their technologies to market.”
“The best devices”
He’s predictably enthusiastic about the handsets that come out of the collaboration with all three partners. “I think the result is the most fantastic killer hardware we’ve ever had, not only for the windows ecosystem – I think these devices are better than any device – well, I they’re the best devices. They’re colourful, they’re beautiful, they’re thin, amazing cameras…”
Some of what you see in Windows Phone 8 handsets is Microsoft’s idea, some comes from the OEMs. “In the case of wireless charging, that was definitely Nokia’s initiative to say they wanted that; they had technologies inside their labs, they took the initiative to put forward a number of engineering designs. There were definitely platform modifications we made to support their innovation but Nokia led on that. All the credit goes to them.”
“The Wallet feature is a place where the Windows Phone team thought about how to use NFC. Roaming content though SkyDrive, encryption; these are all features coming from Microsoft. But the wide angle camera that HTC did with Skype in mind, Nokia’s wireless charging – those are innovations coming from our hardware partners.”
Although app developers get far more access to the platform in Windows Phone 8, Microsoft is still keeping some control and treading a fine line between the free for all of Android that Google is increasingly trying to rein in and the central control of the Apple ecosystem.
“We like to think of it as the structured ecosystem that allows the differentiation of partners to shine though on our platform, at the same time providing consumers the confidence that we will protect their privacy, keep malware off the platform, provide a consistently familiar user experience, and providing developers confidence they can write apps once and target our platforms. So there is more structure and structure at times can feel constraining but also there are benefits to it. It’s helpful that everyone drives on the same side of the road, for example…”
Why was the SDK so hard to get?
Myerson is unapologetic about not making the Windows Phone 8 SDK widely available before the launch (when most developers didn’t have phones to work with) and concentrating instead of key developers to get big-name apps; 46 of the top-selling 50 apps from other phones will be on Windows Phone 8 (and yes, he knows who the missing four are and is working on changing their minds).
The sheer number of apps in the Store is far from the most important thing. “It’s a balance; definitely there is magic that occurs in that long tail of apps, [you get some] delightful things… but it is also true that working with these incredibly popular mobile apps is important as well.”
Windows Phone 8 is the future and it’s getting all the marketing love at the moment, but Windows Phone 7 is far from dead. Myerson assured us. “We’re going to have more to say about 7.8 in the coming weeks,” he promised.
“I would expect both platforms to exist for quite some time, from a global point of view. Windows Phone 7.8 devices will span much lower price points than Windows Phone 8 devices, initially, and given the application compatibility across the platforms, it makes the ecosystem stronger to have more device and more price points. We value every 7 and 7.8 customer we have; we’ll continue to work for them as well but it is true that Windows Phone 8 is our future platform.”
Of course that only matters if Microsoft can finally start selling Windows Phone devices in significant numbers. Just as Steve Ballmer promised you wouldn’t be able to escape Windows 8 ads, Myerson promises what sounds like an advertising blitz, focussing on Windows Phone rather than on the handset makers.
“This holiday it’s very important to us to get out there and tell the Windows Phone story: how we do have this amazingly unique point of view, the smartphone that can be so personal and reflect your interests and the people in your life. Telling that in the most pure sense without confusing them which brands we’re talking about is important. We need consumers to understand and love Windows Phone.”
More advertising money
Certainly Microsoft has promised to advertise Windows Phone better before, without much to show for it, and Myerson seems happy to admit it.
“We weren’t out there with same experience as Windows, even we though shared the same brand; we didn’t have all the right teamwork in place with our partners on the go to market, and we were not advertising the product. We were not out there telling the story to consumers – and that changes now. We will start telling our story. We are going to go out there and advertise the product and tell people.”
What’s different now? In a word, Windows 8 – but also more operator support. “It’s a special time. We have a great product that expresses this unique differentiated point of view, that we are the most personal smartphone, we’ve got killer hardware from partners and we have a great partnership with the mobile operators.
“The fact that they’ve ranged so many phones at such great price points is fantastic. And of course having Windows out there at the same time is exciting; making the experience familiar to users and being the best phone for Windows; if you’re a Windows user, this is the phone for you.”
Intel Haswell: “Mobile computing is not limited to tiny, low-performing devices”
November 15, 2012 5:42 pm / 8 Comments on Intel Haswell: “Mobile computing is not limited to tiny, low-performing devices”
Update: Intel releases updated Haswell CPU roadmaps to production partners, say sources [DIGITIMES, Jan 18, 2013]
Intel reportedly has provided its production partners with updated roadmaps of its 22nm Haswell CPUs, which will be available in June, according to sources from the upstream supply chain.
The first wave of Haswell processors to be launched in the second quarter of 2013 will include Core i7-4770K, i7-4770, i7-4770S, i7-4770T, i7-4765T, i5-4670K, i5-4670, i5-4670S, i5-4670T, i5-4570, i5-4570S, i5-4570T, i5-4430 and i5- 4430S, the sources revealed.
[…K, …T and …S are all desktop processors just as the i5-4430; when the Haswell mobile processors with …M, …U and …Y will be available?]Haswell-based Core i3-series CPUs [the Haswell mobile processors with …M, …U and …Y will be available here?] and high-end Ivy Bridge E processors will not be released until the third quarter, the sources added.
Along with the upcoming 22nm Haswell processors, Intel will also launch its Lynx Point 8-series chipsets, including the Z87, H87 and H81 for desktops and the Q87, Q85 and B85 for business platforms, said the sources.
– Intel set to announce Haswell processors at Computex 2013 [[DIGITIMES, Jan 21, 2013]
Intel is set to host a conference prior to Computex 2013 in June announcing its upcoming Haswell series processors jointly with downstream partners, according to sources from PC players.
The sources noted that the new CPUs will appear on June 2 and related PC products will be showcased at Computex, hosted from June 4-8.
Intel also internally forecasts the new CPU platform to account for 14-16% of its total CPU shipments in the third quarter, the sources noted.
Since consumer demand for Windows 8 is expected to start rising after the operating system has been launched for eight months, with the launch of the new CPU platform, the sources expect the PC market to start recovering in the third quarter.
Update: Third-generation ultrabooks may be able to achieve 40% of notebook shipments, say players [DIGITIMES, Dec 11, 2012]
As Intel failed to achieve its goal of having ultrabooks account for 40% of total notebook shipments with its Ivy Bridge platform, and the proportion only reached about 10%, sources from notebook players believe the goal may be achievable with the upcoming Haswell platform, which is set to launch at the end of second-quarter, 2013.
The sources pointed out that compared to Ivy Bridge, Haswell’s stronger performance and cheaper price, plus the expectation that Windows 8 should become more standardized by then, should mean ultrabooks have a chance to account for 40% of total notebook shipments by the end of 2013.
Although vendors have released ultra-like notebooks with prices around US$699-899 as alternatives, since these devices lack attractiveness in terms of design and weight, while ultrabook models with specifications similar to the MacBook Air have prices a lot higher than the MacBook Air, most consumers have turned to purchase Apple’s product instead, the sources noted.
Update: Intel progressing in development of 14nm technology, says CTO [DIGITIMES, Dec 5, 2012]
Intel CTO Justin Rattner on December 4 said that Intel’s development of 14nm technology is on schedule with volume production to kick off in one to two years and development of 18-inch wafers is under way through cooperation with partners.
Rattner also noted that Intel’s aggressiveness over technology advancement will allow Moore’s Law to extend for another 10 years.
At the end of 2013, Intel will enter the generation of 14nm CPUs (P1272 [process: a shrink from the previous P1270 22-nm process as well as a reduction in power consumption]) and SoCs (1273), while expanding its investments at its D1X Fab in Oregon, and Fab 42 in Arizona, the US and Fab 24 in Ireland, and will gradually enter 10nm, 7nm and 5nm process generations starting 2015.
As for Intel’s competitors, Samsung is already set to enter 20nm in 2013 and is already working on its 14nm node, while Taiwan Semiconductor Manufacturing Company’s (TSMC) 20nm process will enter small volume production in the second half of 2013 with the first 3D-based FPGA chips to also start.
Globalfoundries has previously announced its 14nm FinFET process will start pilot production at the end of 2013 and enter mass production in 2014.
As for 18-inch wafers, Intel has invested in Holland-based ASML for its EUV technology, and related technologies are expected to start entering production in 2017.
“Mobile computing is not limited to tiny, low-performing devices”. That was Intel’s battle cry two months ago when its next-generation core, aka Haswell was introduced, see at the very end of this video report:
IDF 2012: Intel shows new Haswell chips [networkworld YouTube channel, Sept 11, 2012]
A detailed analysis published 2 days ago (Nov 13) concluded:
Intel’s Sandy Bridge core served as an impressive starting point, with unmatched performance in the x86 ecosystem. Haswell builds on this foundation, with powerful ISA extensions and a substantially more aggressive execution core and cache hierarchy. Moreover, Haswell is the first Intel core that will take full advantage of the 22nm FinFET process technology. While the Ivy Bridge graphics architecture is new, the CPU core was mostly unchanged. More importantly, the circuit design was focused on a low-risk and faster migration to a new process, rather than achieving peak performance, efficiency or density.
…
Overall, we estimate that a Haswell core will offer around 10% greater performance for existing software, compared to Sandy Bridge. For workloads using the new extensions, the gains could be significantly higher. In theory, AVX2 and FMA can boost performance by 2×, but the impact on most vectorizable workloads will be much lower. Research from AMD has shown that lock elision gains 30% for the right workloads, although the benefits depend strongly on the actual concurrency.
…
Haswell will be the first big x86 core to compete against ARM-based cores in tablets. While the performance will be dramatically higher, the power budgets are very different. Haswell SoCs will reach 10W, while competing solutions are often closer to 4W. The real question is the relative efficiency of Haswell SoCs, and the advantage of the massive x86 software ecosystem. Fortunately, Windows 8 provides an opportunity to accurately measure performance and efficiency. The results will inject some hard data into discussions that have been otherwise vacuous and largely driven by marketing.
For details see the whole Intel’s Haswell CPU Microarchitecture [Real World Tech, Nov 13, 2012] article.
The next-generation Haswell was presented at the Intel Developer Forum in San Francisco as (source):
- 4th Generation Intel Core Microprocessor, built on 22 nm process technology
- Next Generation Intel HD Graphics with Microsoft DirectX 11.1, Open GL 4.0, OpenCL 1.2 support
- Significant 3D and media performance improvement
- Three Simultaneous Display, HDMI, DisplayPort, with high-resolution up-to 4Kx2K
Abbreviations: PEG – PCI Express Graphics; IMC – Integrated Memory Controller; LLC – Last Level Cache; DMI – Direct Media Interface; DDR3L (2 channels) – Double Data Rate type THREE (3) synchronous dynamic random access memory Low-voltage; 4Kx2K – 4096 x 2160 native resolution corresponding to the highest LCD Monitor resolution such as the 36.4″ (92 cm) DuraVision FDH3601, the highest resolution of the Digital cinema, as well as 4K UHDTV (also called 2160p).
Then it goes into different type of client platforms, code named Shark Bay as follows (leaked by a Chinese “bigpao007” user information):

which means the following incorporation varieties of the Haswell into the various Shark Bay client platforms:

- The standard voltage (SV) quad-core Haswell-QC with GT3/GT2 graphics core
- The standard voltage (SV) dual-core Haswell-DC with GT2/GT1 graphics core
- and the Lynx Point-H PCH (Platform Controller Hub) separate chip for both of them
- The ultra low voltage (ULV now renamed ULT – probably for ULTra) dual-core Haswell ULT with GT3/GT2/GT1 graphics core and Lynx Point-LP PCH (Platform Controller Hub) within the same Multi-Chip Package (MCP, also called MCM – Multi-Chip Module)
- Wireless networking modules code-named Wilkins Peak with the top level “Wilkins Peak 2” supporting 2T2R (2 Transmitter, 2 Receiver) 802.11ac and Bluetooth. Intel should also support 2.4GHz and 5GHz dual-band, and the theoretical peak speed is 1750Mbps (1300Mbps +450 Mbps). The new module will be backward compatible with the current 802.11b/g/n.
- Gigabit Ethernet LAN controller chips code-named Clarkville specifically Clarkville-LM for which no more information known yet
Which means the following essential difference:


Skyrim running @ 1080p on 4th gen Intel core with Intel HD Graphics “GT3” (codename) [channelintel YouTube channel, Oct 18, 2012]
From The Elder Scrolls V: Skyrim Wikipedia article:
The Elder Scrolls V: Skyrim is an action role-playing open world video game developed by Bethesda Game Studios and published by Bethesda Softworks. It is the fifth installment in The Elder Scrolls action role-playing video game series, following The Elder Scrolls IV: Oblivion. Skyrim was released on November 11, 2011 for Microsoft Windows, PlayStation 3 and Xbox 360. … Skyrim is powered by Bethesda’s own Creation Engine, a new engine created prior to Skyrim‘s release.[25][26]
Intel Corporation’s CEO Discusses Q3 2012 Results – Earnings Call Transcript [Seeking Alpha, Oct 16, 2012]
…
Last month at IDF, we shared details of our next-generation Core processor codenamed Haswell. Originally targeted at 15 watts, we have made significant advancements in micro-architecture and process technology that will allow us to move Haswell down into the 10 watt envelope fostering even more innovation in form factor as well as new usage models like gesture computing and voice recognition.
…
… we expect an increase in inventory reserves as we start production on our next-generation micro-architecture product codenamed Haswell which we expect to qualify for sale in the first quarter of 2013.
…
Q: … you said you expect to qualify Haswell in the March quarter, will Haswell be appearing in systems in the March quarter or should we look for that a bit later in the year?
Paul Otellini – President & CEO
The first half.
Intel’s David (Dadi) Perlmutter talks Haswell, perceptual computing [EE Times YouTube channel, Sept 12, 2012]
Intel CPO Talks About Haswell Progress and More in IDF Keynote [Intel® Premier IT Professionals, Sept 11, 2012]
What’s a CPO?
Chief Product Officer. And at Intel that is Dadi Perlmutter who is also an executive vice-president.
He delivered today’s opening keynote at the Intel Developer Forum (IDF) on Collaborating to Shape the Future from Datacenter to Devices. So while developers are the key focus on this conference, there are topics that are of interest to IT professionals as well.
Instead of the rah-rah of some of the previous IDFs, Perlmutter began with a subdued acknowledgment of the 9/11 anniversary. That subdued approach carried over to much of the rest of his presentation as there were no big new product unveilings…only a progress report on offerings Intel has already announced.
Briefly, here’s the status report:
The 4th generation Intel Core, aka Haswell, is on track for launching next year. It is designed with mobility in mind, based on 22 nm technology, will have 20X [reduced] connected standby power [over the 2nd generation, and initially operating at about 10 watts], and delivers demonstrably smoother graphics.
New Ultrabooks based on the 4th generation processor will be thinner and faster, and will include Windows 8 in detachable, convertible, clamshell and other innovative form factors.
Intel is making progress on interactive PC experiences with a natural conversation beta using Nuance Dragon this year and moving into production in Q1 2012. Dragon runs native on the platform because it requires the high-performance of the CPU.
There are 20+ Atom Cloverdale chip tablets design wins coming with or shortly after the Windows 8 launch.
Smartphones based on the Intel Atom have launched with five partners and Intel says they are making steady progress with a competitive roadmap for smartphones.
As usual, there were some cool demos.
Gary Flood, President Global Products and Services of MasterCard demonstrated the company’s PayPass Wallet utilizing Intel Identity Protection Technology in conducting a secure traction using Near Field Communications (NFC) on an Ultrabook.
Dadi showed a new intelligent Coca-Cola machine with a QR Reader, microphone, camera, and wifi. Designed by SIA, the intelligent system utilizes the Core i7.
Gesture recognition with a 3D camera connected via USB showed natural hand and finger movements.
Dadi didn’t even use the term “compute continuum” this year—which was the focus of CEO Paul Otellini’s keynote last year. But, in what was probably the biggest news for the developer audience, he announced a $1 million Perceptual Computing Developer Challenge. “Perceptual computing” is all about ways you can interact with a computer beyond the keyboard and mouse, like voice, gesture, facial analysis, and more. Details for the contest and a free copy of the Intel Perceptual Computing SKD 2013 Beta are at intel.com/software/perceptual.
Note that the below article is based on the June 5, 2012 BIOS Enabling Rev 1.0 presentation from the BIOS Application Engineering Team of the Ultrabook for Shark Bay Platform Enabling (put online on the German 3Dcenter.org on Nov 9, 2012):
Intel Haswell ULT Processors Power Saving Features and Lynx Point-LP Chipset Detailed [WCCF Tech, Nov 12, 2012]
Intel’s Haswell ULT (Low Power) processors would be featuring new and improved features which would help them maintain a low power draw without sacrificing much of their performance. These features have been detailed along with the Lynx Point-LP chipset which would support the Haswell ULT Mobile processors.
Haswell ULT Low Power – 24 MHz BCLK and C9/C10 Support
Back at IDF 2012, Intel demonstrated an Haswell chip which was capable of running an Unigine Heaven demo with a power draw of only 7.5 Watt. That is one significant improvement in power efficiency compared to its 22nm Ivy Bridge architecture. What helps Haswell ULT maintain such a lowerdraw, the answer is support for a new 24 MHz BCLK which will put the CPU at a standby operating frequency of 192 MHz at idle mode, once the user puts the CPU back in working mode the Haswell ULT chip would be restored to normal settings through software correction.
Haswell ULT CPUs would also arrive with new C-State modes – C8, C9, C10. All three of which would only be available on ULT chips and not the desktop or normal mobile variants. In this state, the Haswell ULT would trigger Off state for VccIO and in C9/C10 state, the voltage would go down to 0V minimizing power draw to the max limit.
Haswell and Lynx Point Cross Thermal Management
Since Haswell ULT is a complete SOC (System On Chip), the Lynx Point-LP chipset and the CPU would be cross connected for easier thermal management between both. For instance, if the Lynx Point-LP exceeds its Tjmax limit, a signal would be sent to the Haswell-ULT issuing PCHHOT warning signal. Lynx Point-LP, to increase power efficiency gets rid of CPU overclocking, SATA IDE mode and DMI/FDI/PECI controllers. Lynx Point-LP upto 6 PCI-e 2.0 x16 lanes but doesn’t offer support for PCI-e 3.0. VGA output have been removed from the PCH, so you would have to rely on either DVI or HDMI for display connectivity. Connectivity on the Lynx Point-LP chipset includes 8 USB 2.0 ports, 4 USB 3.0 ports, 3 SATA III ports and integrated HD Audio.
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Overall, Haswell ULT and Haswell is looking as a nice improvement to Ivy bridge when it comes to power efficiency and graphics improvement. The Haswell ULT and Haswell U Processors arrive in Q2 2013 whereas the desktop Haswell processors along with the 8 Series Lynx Point Motherboards are expected to debut in April 2013.
…
Preliminary roadmap information given out under NDA by Intel at the same time was also 3 days ago put on the German 3Dcenter.org online from the June 5, 2012 Shark Bay Haswell ULT/Lynx Point-LP -Intel® ME 9.5 FW Features Overview Rev 1.1 presentation:

In August there was the following roadmap leak as well which seems to be less than the above one: Intel’s Fourth Generation Haswell Mobile Processors to Launch in Q2 2013, New Ivy Bridge Mobile Chips in Q4 2012 [WCCF Tech, August 7, 2012]
The latest Intel roadmap leak has confirmed that Haswell M-Series (Mobile) processors would launch in 1H of 2013 along with newer Ivy Bridge mobile chips in Q4 2012 and Q1 of 2013.
The roadmap shows that Intel’s fourth generation processors known as Haswell would launch in Q2/Q3 2013 featuring a new 22nm Tri-gate architecture which would bring improved IPC performance over Ivy Bridge.
Nokia HERE Maps for everything, for FireFox OS in a strategic partnership with Mozilla
November 13, 2012 10:18 pm / 1 Comment on Nokia HERE Maps for everything, for FireFox OS in a strategic partnership with Mozilla
A highly recommended prerequisite reading: The Where Platform from Nokia: a company move to taking data as a raw material to build products [April 7, 2012]
So, while Microsoft was struggling today with Steven Sinofsky, ex Microsoft: The victim of an extremely complex web of the “western world” high-tech interests [this same blog, Nov 13, 2012] Nokia made a big leap forward on its 2 year’s to counter the lethal dangers of Be aware of ZTE et al. and white-box (Shanzhai) vendors: Wake up call now for Nokia, soon for Microsoft, Intel, RIM and even Apple! [Feb 21, 2011] phenomenon it recognized earlier than every other high-tech company in the “western world”.
Below there is the collection of the information made public today which shows quite well that in mid-term they could even become the most successful “western” high-tech company to overcome the tide raising from China towards the legacy high-tech companies. Their strategic partnership with Mozilla for the FireFox OS is even showing that they are not stupid at all to put all their eggs in the Windows Phone bag (albeit it is publicly only to bring HERE to that OS). They have already a very well positioned Asha and Asha Touch product line in the lower end (see With Asha Touch starting at $83 and Lumia at $186 Nokia targeting the entry-level and low-end smartphone markets [this same blog, Nov 1, 2012]), and now with FireFox OS they could have a 3d one positioned for what they called “taking advantage of future technology disruptions and trends” (see Nokia under transition (as reported by the company) [this same blog, March 11, 2012]).
Nokia redefines digital map landscape by introducing HERE as new brand for its location and mapping service [Nokia press release, Nov 13, 2012]
Nokia extends its service across devices and operating systems
Nokia announces new partnership with Mozilla and planned acquisition of 3D capture company, earthmine
San Francisco, California – Today Nokia introduced HERE, the first location cloud to deliver the world’s best maps and location experiences across multiple screens and operating systems. With the new brand, HERE, Nokia aims to inspire a new generation of location services and devices that make the mobile experience more personally significant for people everywhere.
“People want great maps, and with HERE we can bring together Nokia’s location offering to deliver people a better way to explore, discover and share their world,” said Nokia President and CEO Stephen Elop. “Additionally, with HERE we can extend our 20 years of location expertise to new devices and operating systems that reach beyond Nokia. As a result, we believe that more people benefit from and contribute to our leading mapping and location service.”
Pushing location beyond Nokia
To further extend its location services, Nokia is launching a maps application for iOS under the HERE brand. Based on HTML5, it will include offline capabilities, voice-guided walk navigation, and public transport directions. The application is scheduled to be available for free download from Apple’s App Store in the coming weeks.Nokia further announced a strategic partnership with Mozilla to bring new location experiences to the Firefox OS. Nokia plans to debut a mobile Web version of HERE Maps for the new Firefox OS next year. The companies are working together to give people the best mapping experience on Firefox OS.
“Mozilla is a leader in HTML5, building the Web as a platform for developing compelling applications, and location is a key part of that platform,” said Jay Sullivan, Mozilla Vice President of Products. “We are excited to work with Nokia as the combination of Firefox OS and HERE’s location platform provides rich possibilities for mobile application developers to create amazing experiences for users.”
Nokia also demonstrated an Android OS-based reference application and announced plans for the availability of a HERE SDK for Android OEMs in early 2013. This is aimed at enabling partners to create location-based applications for Android devices with Nokia’s leading content.
Innovating modern mapmaking
To advance the 3D capabilities of HERE, Nokia announced the planned acquisition of Berkeley, Calif. company earthmine. The company’s reality capture and processing technologies will become integral parts of HERE’s 3D map making capabilities.Nokia expects the transaction to close by the end of 2012.
“Maps are hard to get right – but location is revolutionizing how we use technology to engage with the real world,” said Michael Halbherr, Executive Vice President of Location & Commerce and responsible for the HERE brand. “That’s why we have been investing and will continue to invest in building the world’s most powerful location offering, one that is unlike anything in the market today.”
Using LiveSight(TM) to see more of the real world
As part of its announcement, Nokia introduced LiveSight(TM), a technology based on a highly accurate, 3D map of the world. LiveSight(TM) provides the most precise and intuitive augmented reality experience and uses a phone’s camera viewfinder to make discovering the world as easy as lifting up a phone. Nokia City Lens, which was developed exclusively for Nokia Lumia devices, is the first application providing a LiveSight-enabled experience.“Establishing a new brand is the right move for Nokia in the map and location business. Nokia’s assets in this space are world class. We believe mapping and location will be increasingly important to developing next generation devices and services across a wide array of segments,” said Crawford Del Prete, Executive Vice President and Head of worldwide research at IDC.
iOS, Android, Firefox OS: HERE is available everywhere [Nokia Conversations, Nov 13, 2012]
Today’s announcement means that we’re bringing HERE to all devices and operating systems to give more people, with any type of device the ability to use the best location platform in the world. This openness is what sets HERE apart from other digital maps in the world. And with HERE, location will set Nokia apart.
Introducing HERE Maps for iOS
We’re making HERE Maps available in the Apple App Store: iOS users can more easily access our rich mapping experience with a single tap on their home screen. The app has been developed with the same HTML5 technology that powers the mobile web and is therefore very versatile and optimized for mobile use.
With HERE Maps for iOS you can get smart directions to navigate your way around town, whether you’re driving, walking or taking public transportation, so let’s have a closer look at all the features available.
What is HERE Maps for iOS?
With HERE Maps for iOS you can save an area to your device, so you can explore even without data coverage. You can save an area in advance and use it later at up to 4 different zoom levels.
Since you don’t walk on the same routes you drive, HERE Maps for iOS gives you dedicated voice guided turn-by-turn walk navigation that guides you along the best route for walking there: pedestrian routes, through parks, down alleyways, and more. With voice navigation, you will spend less time looking at your phone and more time enjoying getting there.
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Because HERE Maps for iOS has been designed for urban use, the voice navigation only works for journeys on foot. However, there’s also public transportation and driving directions in over 500 cities and you can make transfers easily with detailed public transport connections. With live traffic information and incident notices, you know where the traffic is, so you can spend less time driving there and more time being there.
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With HERE Maps for iOS you can organize favourite places by categories such as “Hip Bars” or “Cheap Eats” and sync them withHERE.com so you can build your personal map on the go and easily find them again.
For instance, you can add a place to your favourites on your phone and post a review when you get home: wherever you are, you’re always in sync. This feature is very easy to use because you can sign-on with your Nokia or Facebook accounts.
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On an iPad you can also see the top 25 places nearby at a glance: HERE Maps automatically displays up to 25 best places near you in a scroll window at the bottom of the screen. Simply tap a place and get all the details or scroll down and filter your results by category (shopping, going out, sights and more).
Whether you’re making plans for later or just want to share a great new find, HERE.com lets you share locations with just a tap, including how to get there, with a simple link sent over SMS, email, or social networks.
Introducing HERE Maps for Firefox OS
Because one of the main attributes of HERE is its openness, we’re also partnering with Mozilla to create new location experiences for Firefox OS. In the coming months, we will introduce HERE Maps for Firefox OS and we’ll continue working, together with Mozilla, to give people the best mapping experience on the OS.
One more thing… HERE Android API
HERE Maps for iOS and Firefox OS are not our only effort to give everyone the ability to use the best location platform in the world. Today, we’re also introducing HERE Maps API for Android, which will made available to partners in the next months.
In apps built with the HERE Android API, users will be able to interact with extruded 3D buildings, search for specific buildings and preview their routes in detail to more realistically show where they’re going.
To showcase what partners can offer when they build Android apps with our HERE API, we have prepared a reference app in the following video.
Read more about HERE for iOS, Android and Firefox OS here:http://conversations.nokia.com/?p=103078 In apps built with the HERE Android API, users will be able to interact with extruded 3D buildings, search for specific buildings and preview their routes in detail to more realistically show where they’re going. To showcase what partners can offer when they build Android apps with our HERE API, we have prepared a reference app in this video.
Disclaimer: this is not an actual app that we are releasing in the Google Play Store, it is just a reference app we have developed to showcase which features we are offering to partners for their location-based Android apps.
Follow us on Twitter: @heremaps.
HERE: the next generation of location services [Nokia Conversations, Nov 13, 2012]
Mapping and location-based services are integral to Nokia’s future and a key way that we stand out from the crowd.
Nokia’s commitment to building the leading location offering is demonstrated every day around the world in its rich set of location-based apps like Nokia Drive, Nokia Transport, Nokia Maps, Nokia Pulse and Nokia City Lens. Quite literally, Nokia helps people navigate their world. But this is only the tip of the iceberg: as a result of our acquisition of NAVTEQ and other mapping industry players, Nokia was the first to build the world’s most accurate and comprehensive global digital map by sending teams to verify every street in every city.
The next step forward – sensing our world
We can do more with our location heritage and mapping expertise, and go beyond a digital version of the paper map. Maps can be more than getting a person from point A to point B. They should bring places to life and inspire us to sense our world.
This is why today we are introducing HERE, the world’s first location cloud that delivers a location platform, location content and location apps across any screen and any operating system.
Just like digital cameras created possibilities that were unthinkable with analog photography, today’s digital mapping has amazing potential to grow into what we call computational cartography, the ability to produce maps on-demand and tailored to their actual use cases. Today’s digital maps are generic – i.e. always the same, irrespective of the content they visualize. We also believe that this game-changing evolution in mapmaking should be available to more businesses and more people around the world – it should expand beyond cars and beyond Nokia devices.
“Location based experiences need to evolve from an app-centric approach towards a holistic customer experience; consumers want services that are optimized for multi-mobile device use and available on demand, everywhere”, said Thilo Koslowski, VP and Lead Automotive Analyst, Gartner.
What does it mean?
Nokia Lumia and HERE are naturally made for each other, providing the best location experience on a smartphone, but we aren’t reserving HERE just for Windows Phone. Instead, we are opening it up to all devices and operating systems to give everyone, with any type of device, the possibility to recognize and the ability to use the best location platform in the world. This openness is what sets HERE apart from other digital maps in the world. And with HERE, location will be an even more powerful differentiation for Nokia.
We’re making HERE Maps available for iOS in the Apple App Store as a HTML5-based app and introducing HERE Maps API for Android. We will also introduce HERE Maps for Firefox OS and we’ll continue working, together with Mozilla, to give people the best mapping experience on the OS.
We are introducing LiveSight, a technology based on a highly accurate, 3D map of the world, which provides the most precise and intuitive augmented reality experience. Nokia City Lens, developed exclusively for Nokia Lumia devices, is the first application using LiveSight.
Our industrial collection of data is about to leap a chasm with the planned acquisition of earthmine. earthmine offers a complete solution for collecting, processing, managing, and hosting 3D street level imagery.
So stay tuned. There is so much more to say in the coming hours and days and the long-term, and we’re looking forward to your continued feedback as we move ahead. You can also follow us on Twitter: @heremaps.
LiveSight: immersive experiences you can act on [Nokia Conversations, Nov 13, 2012]
Nokia City Lens, exclusively available for Nokia Lumia, is one of our most-talked-about apps and we’re very proud of it. Using the phone’s camera viewfinder, Nokia City Lens provides an augmented reality overlay view of buildings and instantly highlights places of interest. Nokia City Lens is basically turning sight into the next interface for searching the world around you. Although Nokia City Lens is powered by a complex system of collection technologies, it’s very easy to use. After all, what could be simpler to use than sight? It’s the most human sense for sensing and exploring the world.
After type pads, touchscreens and voice recognition, we want sight recognition to be another standard way to interact with the world around you. But it’s not only about sight recognition; it’s also aboutlive map information. In one word, it’s… LiveSight. Nokia City Lens, developed exclusively for Nokia Lumia devices, is the first application providing a LiveSight-enabled experience.
LiveSight is a collection of mechanisms:
3D sight interface: buildings are detected by our collection technologies with high accuracy and feeling of depth
Line of sight: with the line of sight view, only POIs in sight are displayed
Freeze frame: save a live view to inspect the city without having to hold the camera pointed at the target
Building directory: click on a building to see what is inside
This new technology is going to address everyday actions like finding a store indoor, finding your friends in a crowd or your parked car. Yes, with LiveSight you can create a place for your parked car.
“We’ve all been there — trying get to where we are going by following that dot on our phones; you take a few steps in one direction to see if the dot moves where it should; with LiveSight you can orient yourself by simply lifting up your phone and looking through the camera view finder and find your destination whether it is right in front of you or three blocks away” said Peter Skillman, head of UX Design for HERE.
You can also follow us on Twitter: @heremaps.
Innovating modern map making with earthmine [Nokia Conversations, Nov 13, 2012]
Because we know that maps are hard to get right, we have been investing and will continue to invest time and money to build the world’s most powerful location offering, one that is unlike anything in the market today. Content creation in cartography is a continuous quest to make maps more precise and to map the whole world. We useinnovative collection technologies (e.g. LiDAR, cameras, etc.) and a team of local experts to create close to perfect digital copies of reality.
Innovating map making
Map makers today have a vast array of data at their disposal and digital technology has made the map accessible to everyone. But at their core today’s digital maps are little changed from paper maps: they are static because they represent the world at the moment the data is captured and they still require a lot of work and imagination to get the most out of them.
We believe, in fact, that location services are revolutionizing how we use technology to engage with the real world. This is why we are innovating every aspect of what a cartographer does: we use data that’s never been incorporated into maps and then make sense of it in a way that transforms the experience. We are innovating what we capture, the way we capture it, and how we model to give rise to a new generation of user experiences.
earthmine acquisition
Today our industrial collection of data is about to leap a chasm with the planned acquisition of earthmine.
earthmine offers a complete solution for collecting, processing, managing, and hosting 3D street level imagery. This will add competitive advantages and increased differentiation to HERE‘s Location Content and Location Platform, sustaining competitiveness in B2B (e.g. data for in-car navigation systems) and driving highly engaging user experiences.
earthmine is going to be a major asset in our arsenal of collection tools in that it complements our internal technologies with capabilities that enhance what we are already doing. The most obvious is the sensor design and integration that can be seen on a earthmine car, which enables mobile mapping and is massively scalable. And when we collect with earthmine we get the same wealth of visual and other sensor data that enables us achieve our mapmaking automation goals. By next year, with earthmine we will expand the number of countries to 31 in which we are automatically collecting 3D information. Additionally, earthmine brings advanced image processing capability and geographic information system tools that make the processed imagery and data readily available enabling us to move faster than we otherwise could.
Follow us on Twitter: @heremaps.
I will add to that the following eartmine case study video as a latest one:
earthmine Helps 911 Dispatchers [earthmine YouTube channel, June 19, 2012]
Fueling the future of digital maps [Nokia Conversations, Oct 25, 2012]
At the heart of any location experience is the understanding of where you are and what’s around you, an awareness often achieved by using a map. While today’s digital maps are much more advanced than the maps of just 20 years ago, they will continue to get more accurate and comprehensive, simplifying how we navigate and interact with an ever-changing world.
So, how do we build a high quality map and keep it fresh? At the core of the process is our innovative collection technologies blended with a team of local experts.
Using their intimate knowledge of local road networks and surrounding areas, these experts, who drive millions of roadways each year, use specially equipped vehicles to collect and verify location data.
Depending on local conditions, product requirements and a variety of other factors, the local drivers use distinct collection technology, ranging from highly mobile pedestrian collection tools to the sophisticated NAVTEQ True technology.
NAVTEQ True is actually composed of four unique technologies:
360° LIDAR: Rotating lasers capture 1.3 million 3D digital data points every second, which generates a virtual 3D model of the world around the vehicle.
Position Sensors: GPS and military grade Inertial Measurement Unit (IMU) sensors measure the vehicle’s speed, orientation and even gravitational forces to provide highly precise location references to every point within the virtual 3D model.
Panoramic Cameras: These cameras layer in a 360° images synchronized to the 3D LIDAR points—giving us the most true to life representation of the world
High Resolution Multi-View Cameras: High-resolution images give us the opportunity to increase automation so we can more quickly bring advanced location content to more people.
Worldwide, NAVTEQ True technology is gathering an immense amount of data.
For instance, in one single day, we might collect 12 million signage images, two million panoramic images, a trillion LIDAR points, and 65 million million (65,000,000,000,000!) colour pixels. We’re not just taking pictures of the world; we’re creating a new data model of the world.
With this level of high quality data, NAVTEQ True technology is capturing real world dimension, fueling more realistic and interactive experiences. With data collected by NAVTEQ True, you can explore the world more easily and in a whole new way – you can instantly see all the best places to eat and things to do and see it right on your phone’s camera display. It’s like having x-ray vision, revealing the hidden spots you might otherwise miss.
You can experience an implementation example of the collected data in 3D with Nokia City Lens for Nokia Lumia. Simply by following the instructions on the right.
I will add to that the following NAVTEQ video giving more explanation about the excellence of Nokia’s mapping technology:
Building the most accurate and fresh map [NAVTEQCompany YouTube channel, Oct 5, 2012]
Frequently Asked Questions: Maps on Windows Phone 8 [Nokia Conversations, Oct 31, 2012]
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With Windows Phone 8 officially introduced last Monday and the first smartphones based on this platform being shipped or reviewed, it’s time to have a quick overview of its location-based apps and experiences.
As you may already know, Nokia is delivering the backbone for all location experiences on Windows Phone 8 and offering Nokia Drive to all Windows Phone 8 partners, empowering this new OS with voice guided turn-by-turn car navigation.
Since we made these announcements, some legitimate questions have been asked on Twitter, on this blog and in the first reviews of Windows Phone 8. I would therefore like to summarize them and provide some clarification.
What does it mean that the Nokia Location Platform is powering the Windows Phone 8 ecosystem?
It basically means that location-based apps for Windows Phone 8 developed by Nokia (e.g. Nokia Maps, Nokia Drive, Nokia City Lens and Nokia Transport), apps developed by Microsoft (e.g. Bing Maps) and apps by any other developer make use of basic functionalities provided by Nokia.
It also means that some features like offline maps are now completely embedded into Windows Phone 8. You can find this option in your smartphone settings.
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Is Nokia Maps on all Windows Phone 8 smartphones?
The Nokia Location Platform is powering the Windows Phone 8 ecosystem, not Nokia Maps, which is an app. On non-Nokia Windows Phone 8 smartphones, the default mapping application is Windows Phone Maps. This is running on top of our map data. It is using our geocoding, our traffic information and our routes, but it’s ultimately developed by Windows Phone, with a custom UI, search and POI database.
Where is turn-by-turn navigation?
Nokia Drive is the application that provides voice-guided turn-by-turn car navigation on Nokia smartphones and with Windows Phone 8 it’s also being made available to other manufacturers. Nokia Drive has been rewritten from the ground up specifically for Windows Phone 8, to leverage the power of this OS and offering new features.
We are currently testing it and a beta version will be made available very soon. On a Nokia smartphone like Nokia Lumia 920, you will find a tile on the start screen that will take you to the Windows Phone Store to download Nokia Drive Beta. Other manufacturers and Microsoft will decide in which countries and on which devices Nokia Drive will be offered to their customers.
You will be very pleased to know that some of the features you have requested the most, spoken street names and route planning options to avoid toll roads, ferries, etc., have been included in this release. However, while currently in beta, Nokia Drive for Windows Phone 8 won’t support My Commute just yet and we strongly suggest you to make use of the offline maps to enjoy your travels.
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What’s new in Nokia Maps for Windows Phone 8?
On Nokia smartphones with Windows Phone 8, the default mapping application is Nokia Maps. We’ve been working hard during the past few months to develop a great new release specifically for Windows Phone 8. In a previous blog post I’ve explained all the features we are including in Nokia Maps for Windows Phone 8 or currently working on.
While the first version of Nokia Maps for Windows Phone 8 was being preinstalled on our newest smartphones (v 2.9), we were already working on an update with even more features. This is why, when you first start your new Nokia smartphone with Windows Phone 8, we encourage you to immediately update Nokia Maps and enjoy all the latest features (v 3.0).
In a nutshell, you won’t only be able to use offline maps but also offline search and routing, also for public transport. You can use turn-by-turn walk navigation or start Nokia Drive to get voice-guided, turn-by-turn car navigation. Last but not least, you will also find your way indoors with the support of venue maps in almost 18,000 buildings in 40 countries (and counting).
‘Nokia Maps offers the most advanced mobile maps offering to consumers today with largest global coverage, highest quality mapping data and true offline availability’ said Francisco Jeronimo, Research Manager, European Mobile Devices, IDC.
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What’s new in Nokia Transport for Windows Phone 8?
Nokia Transport (aka Nokia Transit in North America) has also been updated with great new features. Just like Nokia Maps, we started working on a new version of Nokia Transport immediately after preinstalling it on the Nokia smartphones with Windows Phone 8. This is why you will find an update in the Windows Phone Store in coming days.
With the new version of Nokia Transport for Windows Phone 8, automatic over-the-air updates help ensure you have the latest information on schedules and routes as well as on newly supported cities. You can now get a combined segment map and detail view to orient yourself at a glance: just tap or swipe a specific segment of your journey to expand an intuitive map and detail view that easily lets you see where you are and where you need to be.
New display settings will give you the options to select miles or kilometers, the time of departure or the time you have until the next departure and plan ahead by setting time and date of your journey. From Nokia Transport, you can now also launch the turn-by-turn walk navigation provided by Nokia Maps to get to the next stop or to your final destination. The search history has also been redesigned to be easier to use and to support entries management. For example, you can now manually delete previous searches and keep the history tidier.
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What is Nokia City Lens?
Nokia City Lens turns sight into the next interface for searching the world around you. The app provides information about each building or landmark in the area, giving people an at-a-glance understanding of what restaurants, museums, shops and others places of interest are nearby. Seeing a place of interest through augmented reality provides a wealth of information not available with the naked eye, allowing you to see the world around you using your smartphone instead of having to perform web searches.
The technology powering Nokia City Lens is particularly advanced and accurate. We are capturing real world dimension, fueling more realistic and interactive experiences. It’s like having X-ray vision, revealing hidden spots you might otherwise miss.
Nokia City Lens comes preinstalled on Nokia smartphones with Windows Phone 8 and we are already busy working on the next release, which you can learn more in this previous blog post.
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Image credit: Walt Stoneburner
Steven Sinofsky, ex Microsoft: The victim of an extremely complex web of the “western world” high-tech interests
November 13, 2012 12:45 pm / 8 Comments on Steven Sinofsky, ex Microsoft: The victim of an extremely complex web of the “western world” high-tech interests
See: Ballmer’s memo announcing Steven Sinofsky’s departure [CNET, Nov 12, 2012]
and Microsoft Announces Leadership Changes to Drive Next Wave of Products [Microsoft press release, Nov 12, 2012]
A Microsoft Without Sinofsky? Mini-Microsoft Monday, November 12, 2012
Well, I can’t believe it: Microsoft Announces Leadership Changes to Drive Next Wave of Products.
People walking the hallways tonight at work certainly can’t believe it. I can’t believe it – working at a Microsoft without Sinofsky?
Inconceivable.But, if you’re going to leave on a high-note, it doesn’t get much better. Mr. Sinofsky got a standing ovation from the Windows team during the Company Meeting for all that he’s done to take them on a multi-year journey to create Windows 7 and then hit the big multi-division reset button for Windows 8. He truly demonstrated technical leadership at its best.
And I don’t believe his departure rules him out at all for Microsoft CEO. In fact, I think if he stays in tech and becomes CEO of another company it makes him an even more obvious choice to come back to Microsoft as its leader.
Meanwhile, Ms. Larson-Green: best of luck following this act.
The only response to A Microsoft Without Sinofsky? I think is worth to include here as representing the only factual evidence which might be behind Steven Sinofsky’s abrupt departure from Microsoft (although not in such a direct way as you might think from this, see my remarks following that):
1. Monday, November 12, 2012 10:58:00 PM
So Sinofsky is gone and replaced with a completely talentless hack like Julie Larson-Green. Seriously? Her ascent through the ranks is a case study in the Peter Principle… I worked with Julie when she was on FrontPage, and she was nothing more than a talking head then. She’s now a ridiculous joke, and she’s running the show.
Surface RT is on track to be a disaster, as is the upcoming Surface Ultrabook thing. Someone stick a fork in Microsoft already, jeez.
2. Monday, November 12, 2012 11:31:00 PM
“What facts do you have to back that up? Sounds like you’re another opinionated MSoftie.
Also, why are you panning Julie already? Another ax to grind?”
First: I drive by the Microsoft store every day. The first week after Surface released it was fairly busy — it’s now a ghost town while the Apple store across the street is always SRO. Given that it’s the only store where can buy Surface, that tells you everything you need to know.
And seriously – real the media commentary. Even ignoring Ballmer’s “sales are modest” quote, they’re all saying that consumer interest has fallen off a cliff over the last week. It’s as dead as Windows Phone. But don’t take my word for it, just wait and see.
As for Julie, she’s one of those Microsofties who everyone always threw their hands up about whenver we heard she was promoted again. They are all over Microsoft — people with no actual talent but who excel in the art of succeeding in a big corporate environment. Seriously, search out her talks on Youtube — the woman is barely cogent at the best of times, and at her worst she’s an unintentional comedian.
I left Microsoft a while ago so my axes are long since ground. Now I just enjoy watching the clown car roll along.
So the real question is: Why “Surface RT is on track to be a disaster”?
My answer to that was already published yesterday:
Microsoft Surface with some questions about the performance and smoothness of the experience [this same blog, Nov 12, 2012]
In the end of that post I’ve included also the reasons for the performance and smoothness problems of Microsoft Surface as it stands now, and in very factual way:
Who is gaining with that?
It is no doubt that Intel is the party gaining most with that!
Look at the stakes:
– Intel market capitalisation: US$ 103.50B which is critical for large investors because a collapse of Intel may cause an unprecedented upheaval on the stock market. Also note that Windows 8 is the last chance for Intel to prevent such collapse to happen.
– Intel fabs which are:
Huge, numerous and most of them are representing the latest manufacturing technologies: see List of Intel manufacturing sites on Wikipedia
Each representing multibillion dollars of multi-year investments:
see New $5 billion Intel facility planned for Chandler [AZCentral.com, Feb 19, 2011] as the latest exampleA tremendous effort made by Intel to outgun its fabless competitors exactly through such cutting-edge manufacturing. It is now described not only as leading edge in terms of smaller die sizes and thus higher chip volumes on the same wafers, better performance and/or lower power use, but also speed and agility with the time to manufacture a component halved in the past five years.
Strategic for the US economy as whole to prevent its advanced manufacturing sector to go the way of its lower-tech predecessors – to Asia. See Insight: As chip plants get pricey, U.S. risks losing edge [Reuters, May 1, 2012].
Entering into a critical phase against its major by far fab competitor, TSMC for whom the capacity shortage of its leading 28nm nodes will end by December, 2012. See my Qualcomm’s critical reliance on supply constrained 28nm foundry capacity [this same ‘Experiencing the cloud’ blog, July 27-Nov 8, 2012] post as updated just 4 days ago. Considering that the competitive strength of all of its fabless competitors depend on TSMC manufacturing capabilities this is the most critical window for strategic survival in Intel’s whole history.
A further evidence of why Intel’s survival might be behind that is the fact that the latest mobile SoC from Intel, so called Clover Trail will be in the Windows 8 tablets only in the later part of November. Even the first tablets based on that, the Acer Iconia W510 models are “Temporarily out of stock” on the Amazon while it was oiginally promised to be available from Nov 9 in the US and Canada. See: Acer Iconia W510: Windows 8 Clover Trail (Intel Z2760) hybrid tablets from OEMs [this same ‘Experiencing the cloud’ blog, Oct 28, 2012]. So the tuning was going on well after the “final” Windows 8 launch of Oct 26, and might continue even these days.
Another evidence is the fact that the x86-based version of the Microsoft Surface, Surface Pro will arrive just 3 month later as was pointed out in the leParisien interview of Steve Ballmer referred to in beginning of this post. Moreover when it was announced it was for the much better performing Ivy Bridge processor, not the Clover Trail we indicated here as available in a numerous products by the end of November. This could mean a delivery of Surface Pro as late as January next year! Plenty of time to make the new Windows software and the available applications performing well and smooth in all respects.
Which needs only a few additional explanations, mainly for the overwhelming misunderstandings absolutely typical in the opinions about the reasons of Sinofsky’s abrupt departure from the company he was working for since he finished his university studies in 1989.
- Microsoft is sitting in the centre of an extremely complex web of interests. In fact most of the high-tech pile up of the “Western world” on the stock market is highly dependent on the course of actions Microsoft is taking along the ARM route of the hardware platform opportunity.
- As the HW future of the Android SW platform is already outside of the influence of that high-tech pile up, the only remaining potential to defend its diminishing position is in the Windows.
- The measures taken during the Windows development to pressure Microsoft and its CEO to “under-engineer” the Windows RT version (which is well reflected in Microsoft Surface as it was brought out 18 days ago) were clearly not enough to achieve the established goals of such a defensive strategy. It might even be the case that the “half-hearted” Windows RT effort was decided to be “downscaled” even further as a last ditch effort by the forces of “Western world high-tech pile-up” interests.
Just to remind you:
– The SoC behind the $48 Mogu M0 “peoplephone”, i.e. an Android smartphone for everybody to hit the Chinese market on November 15 [this same blog, Nov 9, 2012] is sold for about $6 according to CEO of Spreadtrum saying that 37% of its Q3CY12 revenue of US$187.9 million “mostly address the smartphones” which were 11 million SoCs in the official financial release then “raised” somewhat to 12 million towards the end of the Earnings Call.
– The leading entry level SoC for the Chinese made Android tablets, the Allwinner A10 and A13 is sold for $7 and $5 respectively, and the volume of them was quite high already in Q3CY12: 3.5 million SoCs in August rising to 5 million SoCs in October, according to Yoshida in China: ‘Shanzhai’ clouds tablet data [EE Times, Nov 8, 2012]
– Intel’s latest technology entry level SoC, the Z2760 “Cover Trail” should definitely be more than $50 (even much more) as the latest (Q1’12 intro, with the same 32nm litography) traditional Atom model D2550, having price indication, has a published tray price of $47. This means an order of magnitude SoC price difference considering that by the end of 2012 the entry level tablet SoCs will come down at least to 2xCortex-A9 performance at 1 GHz+ (could be even quadcore at 28nm litography, we will see), so performance wise there will be at least parity.
So these are the things everybody should think first and not the simplistic reasoning reflected everywhere. See a 24 hour search on “Sinofsky departure” which currently has headlines such as:
- Sinofsky’s departure from Microsoft: Politics or products to blame?
- Controversial Windows boss Steven Sinofsky leaves Microsoft
- Sources inside Microsoft say a clash of personalities led to Sinofsky’s departure
- The departure of Steven Sinofsky: Jump, or pushed?
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Microsoft follows Forstall departure by firing their head of software Steve Sinofsky
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Did Windows 8’s Metro interface cost Steven Sinofsky his job?
- Sinofsky Out: Were We Right about Windows 8 Usability?
End of the original post (as seen above), publication time: UTC 11:00 a.m.
Postscripts:
… Many have scratched their head about Windows RT, and in particular its lack of support for third-party “desktop” apps. Ultimately I think Windows RT is the result of heavy reliance on telemetry. … reliance on statistical analysis may explain why the end-user reaction to Windows RT and Windows 8 overall seems much better than that of pundits and power users. …
…
Why did 90+% of users choose to pay more for a Windows-based Netbook than to go with a Linux-based Netbook? If these devices were simply used for web browsing than the user behavior doesn’t make sense. We can speculate on this of course. Familiarity of UI, compatibility with devices such as printers, ability to run Windows applications (even though that is counter to the original idea behind netbooks), etc. As I said we can speculate. And analysts can survey customers and make their claims. But Microsoft? Microsoft has precise data from the CEIP.
…
And what do you think Microsoft got from the CEIP telemetry? I’m guessing that they saw the vast majority of Netbook usage was for web browsing, with use of Microsoft Office representing a much smaller but still substantial portion. And then I’m guessing they saw a dramatic fall-off with no apps really registering as significant. Netbooks were basically web browsing plus Office machines. Then they looked at the web usage and saw that a great deal of it matched the kinds of “consumption” apps that were popular on the iPhone and that they were going to target with the new Windows 8 “Metro” app model. And they saw heavy use of traditional Windows features like broad peripheral support, network connectivity, etc. Combine the actual usage data on Netbooks with the emergence of Natural User Interface and the re-invigoration of local apps that was demonstrated by the Apple App Store and you have Windows RT.
…
So take a look at Windows RT, or even better the Microsoft Surface, and realize what it is. The Surface is the intersection of Netbook meets iPad. It brings exactly what most users liked about Windows on Netbooks into the modern era while dispensing with much of the Windows world that Netbook users simply didn’t take advantage of. It is exactly what users told Microsoft via their actual usage data, extrapolated from the historical Netbook world into the modern device world, they wanted.
…
The use of Telemetry may explain why Windows 8, Windows RT, and the Surface seem to do better with average users than the pundits and power users out around and beyond two standard deviations. Windows RT and the Surface are designed to actual usage data on a segment of the computing spectrum that was also derided by many pundits and power users. A segment that garnered (as I recall) about 20% of PC unit volume before being obliterated in the “post-PC” shift. If Microsoft has used its wealth of telemetry to build something that nails the real world usage scenarios that originally made Netbooks popular, while also being roughly as good as the iPad for the scenarios Apple optimized for, than they have a huge winner. Even if pundits and power users don’t seem to like what they’ve done.
And if Windows RT fails? Well it could be the result of pundits and power users convincing the target audience not to give it a chance. Or it could be the result of poor design decisions being made despite having excellent data. Or it could be a series of marketing, sales, and partner missteps that have little to do with the product itself. Or it could be that particularly vicious form of lies known as statistics.
I was only a few reports down from Sinofsky and actually had the pleasure of working with him in person. Always very professional and energetic. Nothing unreasonable for a corporate environment. And definitely nothing like what people compare to Steve Jobs or Bill Gates (check out “BillG review” on the Internet for what THAT was like).
LOL, listen this is a great post and all but if he was truly great Ballmer would have kept him, more C level execs would have fought to keep him. The truth is there is a time and place for people like Sinofsky and there is time to ring them in and say “Hey you are making people’s lives hell!” That is a big deal by the way. MS may be a huge corporation with lots of people willing and wanting to work with them but word of mouth gets around and that is bad. …
- The Steven Sinofsky defended [Microsoft-News-com, Nov 17, 2012] article which contains a very well written defense of Sinofsky from a writer named Suril Amin (about whom it is only known that he was born in 1989, and from all that he is likely to be this LinkedIn person, this twitter person, this facebook person and with this 2011 resume) which is quite worth to read. His opinion is:
… Sinofsky has been nothing but excellent for Microsoft. He has fought for consumers and made the tough decisions that others would not have. Sinofsky made the trains run on time. He embraced the Metro design language, borrowing from the Zune team and Windows Phone team. It is quite clear that Sinofsky quit. I believe he wanted more power or certain decisions to go his way that did not and he ultimately decided to quit. Ballmer has been great at protecting himself and his position of CEO over the last decade. I do not think he wanted Sinofsky to gain more power and potentially become CEO down the road. It’s telling that he split Sinofsky’s position to two women who I think he can easily control. I think Sinofsky’s influence and legacy on the company will remain even though he is not there anymore. More things are going to be kept secret until it is the appropriate time to release the information. Microsoft will also get more and more into hardware. I believe we will see Sinofsky back a few years from now as CEO of Microsoft. …
Then the whole essence of his writing is summarized in the end as:
tl;dr: Steven Sinofsky rocks and was good for Microsoft! I also believe he quit on his own accord. Bloggers hate him because they had a direct financial loss due to having less information about the company and ignore the good he did.
P.S. Love/Hate relationship with Sinofsky and bloggers can be traced way back to 2007 starting with Long Zheng http://www.istartedsomething.com/20071207/director-windows-disclosure/
- Why Microsoft is disARMed? Because of the battle cry from Intel Haswell: “Mobile computing is not limited to tiny, low-performing devices” [this same blog, Nov 15, 2012]
- Technology explanation for lower software performance on ARM from here:
He explained that creating Windows 8 and its new tablet-friendly Windows Runtime has absorbed much of the C++ team’s energy.
“We’ve been really busy for two years with our biggest release ever. There’s an industry tsunami to the tablet revolution, the GPU compute revolution. Because C++ matters is why we’re at the centre of it. Now we can emphasise conformance again,” he said.“We have a really mature compiler and optimiser. It’s been around for a decade or two, on x86 and x64. Then we have a version 1 release of ARM. You can expect that to get better.”
Note that people present on that BUILD 2012 session and even having an opportunity to speak to Herb Sutter the day before were not only confirming the importance of the above but even adding to that: “the Visual C++ team had the biggest pressure inside Microsoft in the last 2 years as everybody was relying on them
- Re: Live Long and Prosper SteveSi by Steve Sinofsky [Hal’s (Im)Perfect Vision, Nov 14, 2012]
Hal. Hey there, I find myself feeling to offer some insight — relative to what you say above, I never initiated any discussions to bring together the organizations/products you describe and no one ever approached me to manage them as part of Windows 7 or 8. Basic organization theory as described by @teyc would support the current state as a practical working model.
If we had worked together you would know that historically, very few things moved into teams I managed as (you’ve no doubt seen in internal blogs) and when they did I usually pushed back hard looking for a cross-group way to achieve the goal (in other words, decide open issues rather than force an org change to subsequently decide something). It is far better to collaborate with the org in place and avoid the disruption unless it is on a product cycle boundary and far better to plan and execute together than just organize together.
in response to Hal Berenson’s earlies assumption in his post that:
Steven had apparently lost recent battles to bring both Windows Phone and the Developer Division under his control. I suspect that he saw those loses both as a roadblock to where he wanted to take Windows over the next few years, and a clear indication that his political power within Microsoft had peaked. At the very point where he should have been able to ask for, and receive, almost anything as reward for his proven success he got slapped down. And so he chose to leave.
then Berenson acknowledged in response:
Steven, thanks for the first hand insight. I am obviously going on what others in Microsoft have told me. And seriously, good luck with whatever you do next!
- Patch Tuesday pushes out 7 updates to the Surface, including a performance update [Microsoft.News.com, Nov 13, 2012]
Patch Tuesday, the second Tuesday of the month, and the time when Microsoft pushes out software updates for their products.
On this occasion this includes includes Microsoft’s first ARM computer, the Surface, and the update is a “Cumulative Update for performance/compatibility” and another is a firmware update which hopefully addresses the same issue.
…
We noticed definite performance improvements, including in multi-tasking, text input, quicker loading times and improvements in IE, including in tab switching and closing.
…
Techtony • a day ago
Not only the Surface was updated, The Asus Vivo Tab RT was also Updated. New Firmware Message and a total of 8 UpdatesRJD • 2 days ago Absolutely notice performance improvements across the board…loading apps, screen accuracy, word accuracy, IE improved to boot.
surur Mod Eric Hon • 2 days ago Apparently apps open faster.
GG002 surur • 2 days ago And less sound stuttering while Surface sleeps. At least buggy music playback while Sleep isn’t a problem for me anymore (knock on wood).
It is indeed faster. In some cases much faster. A Hungarian developer was measuring the improvement via the CPU usage with the Mandelbrot program as a benchmark: C#: +25%, C++: +110%!, C++ AMP (software emultaion): +72% improvements were found by him (see in this Facebook message in Hungarian).
- Digitimes Research: White-box tablet shipments to surpass 50 million units in 2012 [DIGITIMES, Nov 13, 2012]
White-box tablets are expected to see a surge in shipment growth in 2012 with volumes surpassing 50 million units, according to Digitimes Research senior analyst James Wang.
There are three major drivers that will help white-box tablets achieve strong growth in the year: a large number of potential consumers brought in by Android handsets, mature development of China-based processors, and decreasing costs of white-box tablets. With the addition of white-box tablet shipments, Android is expected to surpass iOS and become the largest mobile operating system in 2012, while 7-inch displays will also become the mainstream specification for tablets.
As the branded tablet PC market is seeing fierce competition in terms of technology, capacity, yield rates, patents and prices, the rise of white-box tablets has already made these players a new force in the tablet market, with some white-box players even seeing higher shipment volumes than first-tier vendors.
Digitimes Research believes that brand vendors should be aware of white-box tablet players’ developments in the future, since even platform designers such as Google and Microsoft have used their resources to increase price competition in the tablet market, and the situation may gradually turn to favor China-based players with expertise in lowering costs.
Source: Digitimes Research, November 2012
or from the Chinese version of the same [Nov 9, 2012]:

- another worthwhile comment on Tuesday, November 13, 2012 9:10:00 PM on A Microsoft Without Sinofsky? Mini-Microsoft Monday, November 12, 2012:
I’m not a microsoftie but I can see parallels with two other companies, where I used to work.
1. Lucent. Coasting along on their previous life as the original AT&T and Bell Labs and living on their monopoly profits, I found their upper echelon to be as political and non technical as I see MSFT’s descriptions today. Pat Russo was a BA in political science for crying out loud. And she ended up running and selling Bell Labs (!) to Alcatel. Before that she ran Kodak. See the pattern?
2. Carly Fiorina at HP. Before that she was at Lucent. BA in Political Science. Political Science. Well, okay then, let’s just have her run HP. What does HP mostly sell now? Ink?
The pattern is simple. You get a large corp running off a semi monopoly, then in due course the people who rise are the politicians and sales guys. The engineers get used and thrown aside.
Now apparently this Julia person isn’t an engineer and she’s going to run the OS group. Good luck with that.
- and yet another one on Wednesday, November 14, 2012 7:02:00 AM:
Lots of noise in the comments. Been out of Microsoft for 3 years and haven’t been in Steve Si’s org since he left the Office group.
I worked in the same group as Julie Larson before her meteoric rise. I wasn’t so impressed, but remember that Steve Si was very impressed. If he likes someone’s work, they rise to the top very, very quickly. I don’t think he was making those choices for political reasons. I think he was making those decisions for engineering and product quality. That said, does heading program management translate into running a large engineering organization. I don’t know as it’s been many, many years since I worked near Julie.
Steve Si never struck me as someone who cared about rising to be the CEO. He cared about designing products that could be built and then building it. I’m not sure as an engineering guy, he was the right guy for Balmer’s job.
- Thoughts on the new Windows leadership [Hal’s (Im)Perfect Vision, Nov 16, 2012]
I’ve had a number of people question if Julie Larson-Green is up to the task of running Windows Engineering. No one has questioned Tami Reller’s expanded responsibilities because, well, Tami is pretty much doing the same job she had before except that the buck now stops with her instead of falling on the shoulders of a division President. So I’ll focus this post on Julie and her new role. And moreover on the experiment it represents.
…
So is Julie a good choice? On a strategic level I think there was no one better positioned to finish the job of re-imagining Windows that started with Windows 8. I have some evidence that Julie is indeed easier to collaborate with than Steven was. And she’s inheriting from Steven a well-functioning engineering organization that, of course, she helped create. She doesn’t have to fix anything (major) that I know of on the organizational or engineering process fronts. That means she has time for her multi-discipline general management skills to mature while focusing most of her energy on completing the Windows re-invention. Plus, by splitting the business and engineering responsibilities across two executives (and taking on the President responsibilities himself) Steve has kept Julie’s new role from being too much of a stretch. So yes, I think Julie is a good choice. Hopefully we’ll be able to look back in a few years and say that she was a great choice.
-
Curiously enough Euronews operating under Euronews SA formed by nine shareholding companies (France Televisions (France), RAI (Italy), RTR (Russia), SSR (Switzerland), RTP (Portugal), RTBF (Belgium), ERT (Greece), TV4 (Sweeden) and NTU (Ukraine)) was first (among major media channels) to put the below very short report to the YouTube:
Windows executive leaves Microsoft Corp [Euronews YouTube channel, Nov 13, 2012 [~UTC 2:30 p.m.]]
- Then WSJLive was next to put this report, around one and a half hour later to the YouTube: Microsoft’s Windows Chief to Depart [WSJDigitalNetwork YouTube channel, Nov 13, 2012., 11:01 a.m. ET [UTC 4:01 p.m.]], this with a detailed assesment, so far also the closest one to mine (although still far from that):
Arik Hesseldahl, AllThingsD reporter was the expert journalist interviewed by WSJLive. See also the similarly titled Microsoft’s Windows Chief to Depart [The Wall Street Journal, November 13, 2012, 11:01 a.m. ET [UTC 4:01 p.m.]] article which this video was embedded into.
- The IDG News Service was curiously quite late on YouTube and with a brief type of report only: Windows head Steven Sinofsky to leave Microsoft [computerworld YouTube channel, November 13, 2012, 1:25 p.m. ET [UTC 5:25 p.m.]]
although a written article by the same people behind the video was published 10 hours earlier: Windows head Steven Sinofsky to leave Microsoft [November 13, 2012 02:10 AM ET [UTC 7:10 a.m.]] albeit with a different, initial content.
- The same WSJLive realized only 10 hours after its first video report seen above the fact that there are TWO heirs to the Sinofsky’s empire: The Women Behind Microsoft Windows [WSJDigitalNetwork YouTube channel, Nov 13, 2012., 9:13 p.m. ET [Nov 14, UTC 2:13 a.m.]]
yet WSJLive missed the most important point that both report to Steve Ballmer (see the press release). The written article which contains the same video embedded into it does not contain that fact either: Windows’ Future in Hands of Two Veterans [The Wall Street Journal, Nov 13, 2012., 9:13 p.m. ET [Nov 14, UTC 2:13 a.m.]]
- Yet another: Microsoft Landing 11-14-12 [firstbusinessnews YouTube channel, Nov 14, ~UTC 2:30 a.m.], this time tied to the stock market (see below)
From Wikipedia on First Business:
First Business is a nationally syndicated financial news and analysis television program, produced by First Business Network LLC, a subsidiary of Weigel Broadcasting, in Chicago. Anchor Angela Miles, Reporters Chuck Coppola, Bill Moller, and Executive Producer Harvey Moshman bring viewers commentary from the floors of the Chicago Mercantile Exchange, and the Chicago Board Options Exchange, as well as from their studios in the West Loop. The program covers the financial and economic markets including equities, futures, options,commodities, foreign exchange and geo-political news. …
Here’s the complete letter from Steven Sinofsky to employees [WinSuperSite, Nov 12, 2012]
From: Steven Sinofsky
Sent: Monday, November 12, 2012 6:42 PM
To: Microsoft – All Employees (QBDG)
Subject: RE: Windows Leadership ChangesWith the general availability of Windows 8/RT and Surface, I have decided it is time for me to take a step back from my responsibilities at Microsoft. I’ve always advocated using the break between product cycles as an opportunity to reflect and to look ahead, and that applies to me too.
After more than 23 years working on a wide range of Microsoft products, I have decided to leave the company to seek new opportunities that build on these experiences. My passion for building products is as strong as ever and I look forward focusing my energy and creativity along similar lines.
The Windows team, in partnerships across all of Microsoft and our industry, just completed products and services introducing a new era of Windows computing. It is an incredible experience to be part of a generational change in a unique product like Windows, one accomplished with an undeniable elegance. Building on Windows, Surface excels in design and utility for a new era of PCs. With the Store, Internet Explorer, Outlook.com, SkyDrive and more, each of which lead the way, this experience is connected to amazing cloud services.
It is inspiring to think of these efforts making their way into the hands of Microsoft’s next billion customers. We can reflect on this project as a remarkable achievement for each of us and for the team. Our work is not done, such is the world of technology, and so much more is in store for customers.
It is impossible to count the blessings I have received over my years at Microsoft. I am humbled by the professionalism and generosity of everyone I have had the good fortune to work with at this awesome company. I am beyond grateful.
I have always promised myself when the right time came for me to change course, I would be brief, unlike one of my infamous short blog posts, and strive to be less memorable than the products and teams with which I have been proudly and humbly associated. The brevity of this announcement is simply a feature.
Some might notice a bit of chatter speculating about this decision or timing. I can assure you that none could be true as this was a personal and private choice that in no way reflects any speculation or theories one might read—about me, opportunity, the company or its leadership.
As I’ve always believed in making space for new leaders as quickly as possible, this announcement is effective immediately and I will assist however needed with the transition.
I am super excited for what the future holds for the team and Microsoft.
With my deepest appreciation,
Steven Sinofsky
Sent from Surface RT
Microsoft Surface with some questions about the performance and smoothness of the experience
November 12, 2012 1:02 pm / 7 Comments on Microsoft Surface with some questions about the performance and smoothness of the experience
Update: Upstream supply chain sees Surface RT orders cut by half [DIGITIMES, Nov 28, 2012]
The upstream supply chain of Microsoft’s Surface RT has recently seen the tablet’s orders reduced by half, and with other Windows RT-based tablet orders also seeing weak performance, sources from the upstream supply chain believe the new operating system may not perform as well as expected in the market.
Microsoft originally expected to ship four million Surface RT devices by the end of 2012, but has recently reduced the orders by half to only two million units.
Although Asustek Computer, Samsung Electronics and Dell have all launched Windows RT-based tablets, consumer demand for those devices is also weak.
The sources also pointed out that Surface RT is also unlikely to achieve great performance in the upcoming quarter which may force Microsoft to bring out its Intel-based Surface Pro tablet earlier in December.
The sources also noted that Microsoft may consider reducing its Surface Pro price to attract more consumers; however, such a decision may put the already awkward relationship between the software giant and notebook vendors in an even worse situation.
Something is indeed wrong to a certain extent with the Microsoft Surface as in an earlier report even Microsoft CEO Says Surface Sales Starting ‘Modestly’ – Report [Capital.gr, Nov 10, 2012]. It was the first report in English from the news in leParisien. The French headline is even telling that: Microsoft: Steve Ballmer announces “a new tablet upscale”. And indeed we find in the Capital.gr report that:
The CEO also said that in the three months following Surface’s launch, Microsoft plans to offer a high-end version of its tablet equipped with Intel Corp.’s (INTC) new processor and a higher-definition screen.
So I have investigated what users have found during this two weeks with the Microsoft Surface tablet.
My conclusion: some software, including parts of the Windows RT operating system need tuning! In certain scenarios Microsoft Surface is definitely underperforming!
Updates: providing additional evidence of the “under-engineered” character of the Windows RT software for the Microsoft Surface
- Technology explanation for lower software performance on ARM from here:
He explained that creating Windows 8 and its new tablet-friendly Windows Runtime has absorbed much of the C++ team’s energy.
“We’ve been really busy for two years with our biggest release ever. There’s an industry tsunami to the tablet revolution, the GPU compute revolution. Because C++ matters is why we’re at the centre of it. Now we can emphasise conformance again,” he said.“We have a really mature compiler and optimiser. It’s been around for a decade or two, on x86 and x64. Then we have a version 1 release of ARM. You can expect that to get better.”
Note that people present on that BUILD 2012 session and even having an opportunity to speak to Herb Sutter the day before were not only confirming the importance of the above but even adding to that: “the Visual C++ team had the biggest pressure inside Microsoft in the last 2 years as everybody was relying on them”
- Patch Tuesday pushes out 7 updates to the Surface, including a performance update[Microsoft.News.com, Nov 13, 2012]
Patch Tuesday, the second Tuesday of the month, and the time when Microsoft pushes out software updates for their products.
On this occasion this includes includes Microsoft’s first ARM computer, the Surface, and the update is a “Cumulative Update for performance/compatibility” and another is a firmware update which hopefully addresses the same issue.
…
We noticed definite performance improvements, including in multi-tasking, text input, quicker loading times and improvements in IE, including in tab switching and closing.
…
Techtony • a day ago
Not only the Surface was updated, The Asus Vivo Tab RT was also Updated. New Firmware Message and a total of 8 UpdatesRJD • 2 days ago Absolutely notice performance improvements across the board…loading apps, screen accuracy, word accuracy, IE improved to boot.
surur Mod Eric Hon • 2 days ago Apparently apps open faster.
GG002 surur • 2 days ago And less sound stuttering while Surface sleeps. At least buggy music playback while Sleep isn’t a problem for me anymore (knock on wood).
It is indeed faster. In some cases much faster. A Hungarian developer was measuring the improvement via the CPU usage with the Mandelbrot program as a benchmark: C#: +25%, C++: +110%!, C++ AMP (software emultaion): +72% improvements were found by him (see in this Facebook message in Hungarian).
End of updates
I’ve also found videos on YouTube which will prove my point accordingly:
Microsoft Surface with Windows RT: Performance [lockergnome YouTube channel, Nov 4, 2012]
iPad 3 VS Surface: Fruit Ninja – Gaming Performance [DarGdgtZ YouTube channel, Oct 28, 2012]
Microsoft Surface RT HD video and gaming [Bravo0 YouTube channel, Nov 4, 2012]
The historic cadence leading to Microsoft Surface:
Was there enough time to tune everything properly? I thinks so. Look at the following history of the Windows on ARM (Windows RT) evolution:
CES 2011 – Windows on ARM Demos [leslie2823 YouTube channel, Jan 9, 2011]
NVIDIA quad-core Tegra 3 “Kal-El” quad-core processor demo blows us away [IntoMobile YouTube channel, Feb 15, 2011]
Directly related videos from NVIDIA published at the same time:
– Project Kal-El web-browsing benchmark [nvidia YouTube channel, Feb 15, 2011]
– Coremark performance on Kal-El [nvidia YouTube channel, Feb 15, 2011]
NVIDIA Tegra 3 Tablet running Windows 8 [minipcpro YouTube channel, June 2, 2011]
Nvidia Kal-El Windows 8 ARM tablet hands-on [Thisismynextvideo YouTube channel, Sept 14, 2011
Who is gaining with that?
It is no doubt that Intel is the party gaining most with that!
Look at the stakes:
– Intel market capitalisation: US$ 103.50B which is critical for large investors because a collapse of Intel may cause an unprecedented upheaval on the stock market. Also note that Windows 8 is the last chance for Intel to prevent such collapse to happen.
– Intel fabs which are:
- Huge, numerous and most of them are representing the latest manufacturing technologies: see List of Intel manufacturing sites on Wikipedia
- Each representing multibillion dollars of multi-year investments:
see New $5 billion Intel facility planned for Chandler [AZCentral.com, Feb 19, 2011] as the latest example - A tremendous effort made by Intel to outgun its fabless competitors exactly through such cutting-edge manufacturing. It is now described not only as leading edge in terms of smaller die sizes and thus higher chip volumes on the same wafers, better performance and/or lower power use, but also speed and agility with the time to manufacture a component halved in the past five years.
- Strategic for the US economy as whole to prevent its advanced manufacturing sector to go the way of its lower-tech predecessors – to Asia. See Insight: As chip plants get pricey, U.S. risks losing edge [Reuters, May 1, 2012].
- Entering into a critical phase against its major by far fab competitor, TSMC for whom the capacity shortage of its leading 28nm nodes will end by December, 2012. See my Qualcomm’s critical reliance on supply constrained 28nm foundry capacity [this same ‘Experiencing the cloud’ blog, July 27-Nov 8, 2012] post as updated just 4 days ago. Considering that the competitive strength of all of its fabless competitors depend on TSMC manufacturing capabilities this is the most critical window for strategic survival in Intel’s whole history.
A further evidence of why Intel’s survival might be behind that is the fact that the latest mobile SoC from Intel, so called Clover Trail will be in the Windows 8 tablets only in the later part of November. Even the first tablets based on that, the Acer Iconia W510 models are “Temporarily out of stock” on the Amazon while it was oiginally promised to be available from Nov 9 in the US and Canada. See: Acer Iconia W510: Windows 8 Clover Trail (Intel Z2760) hybrid tablets from OEMs [this same ‘Experiencing the cloud’ blog, Oct 28, 2012]. So the tuning was going on well after the “final” Windows 8 launch of Oct 26, and might continue even these days.
Another evidence is the fact that the x86-based version of the Microsoft Surface, Surface Pro will arrive just 3 month later as was pointed out in the leParisien interview of Steve Ballmer referred to in beginning of this post. Moreover when it was announced it was for the much better performing Ivy Bridge processor, not the Clover Trail we indicated here as available in a numerous products by the end of November. This could mean a delivery of Surface Pro as late as January next year! Plenty of time to make the new Windows software and the available applications performing well and smooth in all respects.
Other information on this blog:
– Microsoft Surface: its premium quality/price vs. even iPad3 [Oct 26, 2012]
– Microsoft Surface: First media reflections after the New-York press launch [Oct 26, 2012]
– Core post: Giving up the total OEM reliance strategy: the Microsoft Surface tablet [June 19, 2012]
Ouya $99 open console project based on Android Jelly Bean backed by $8.6M of crowd funding on Kickstarter
November 10, 2012 12:15 pm / 2 Comments on Ouya $99 open console project based on Android Jelly Bean backed by $8.6M of crowd funding on Kickstarter
Android had a tremendous impetus for the ICT industry as a whole, and that role continues even more with projects like Ouya (withering this time the console business of Microsoft, Sony and Nintendo?):
Official OUYA Kickstarter Video [OUYAS YouTube channel, Aug 29, 2012]
More information:
– Ouya article on Wikipedia
– Ouya project microsite on Kickstarter indicating also the promised March 2013 delivery date and the $8.6M crowd funding (closed on Aug 9, 2012) vs. the initial $950K goal which made the Ouya Kickstarter the second highest earning in the Kickstarter’s history
– and the most amazing thing appreciated by so many that it is sufficient to inlude here a couple headlines from the most prestigious sources: Ouya No Bigger Than a Rubik’s Cube, Ouya will be about the size of a Rubik’s Cube, Ouya console “around size of Rubik’s cube“, Ouya Console Will Be As Small As a Rubik’s Cube etc.
– OUYA Console – Ask the experts at CVG [techradararchive YouTube channel, Oct 18, 2012]
The state of the project as of Oct 31, 2012:
Our CAD models and SLAs (plastic prototypes that provide us with a physical look and feel of the product) are finished, and we moved out of the design phase and into development a couple of weeks ago.
Last week was a huge milestone for us — we received our first development run of PCBs (Printed Circuit Boards) for the console.
…
We are now in what’s referred to in the industry as the EVT (Engineering Verification Testing) phase.
Have a look at our PCB:
During the EVT phase, we’ll be testing both the console and the controller with our OUYA software. We’ll continue to verify our design and push the performance limits of our software. We’ll go through a couple more EVT build phases, as we weed out issues and refine the design for optimal performance and large-scale manufacturing, before we start cranking out OUYAs.
So, awesome news: we’re set to complete this EVT phase on time, and we’re in sync with our December target for developer kits. Since these dev kits are still in pre-production phase, we’ll build a limited quantity. Each one will be a collector’s item — unique in design, build and appearance. (So, they’ll look different from the consumer-ready units.)
SO LONG, ICE CREAM SANDWICH:
I’m happy to announce OUYA will run on Android Jelly Bean, the newest version of the Android operating system. We’re making the jump from the old version, Ice Cream Sandwich, to ensure that we’re running on the most up-to-date software available. You asked if it could be done, we looked into it, and we made it happen.
…
see: The big hardware update (and more) by Julie Uhrman, Ouya, Founder [Ouya project posts on Kickstarter, Oct 31, 2012]
OUYA Demo [OUYAS YouTube channel, July 10 , 2012]
from the time of starting to raise funding via Kickstarter.
And here is a recent independent evaluation of the project:
OUYA – The Game Pop News [SurrenderTwenty YouTube channel, Nov 5, 2012]
Ooo-Yah [Julieta Ramos on The Game Pop, Nov 7, 2012]
If you keep tabs on new tech and gaming news sites such as this one, you have no doubt heard of the OUYA. I will admit that the minute I heard of it, I was set to donate and get dibs on my own console. Here’s why: it’s open source; offers free-to-play titles; hacker friendly; decent specs ; runs on Android Jelly Bean; will have its own online store; it’s a brand new console; and most importantly, incredibly cheap going for $99 (w/o shipping).
Giants such as Microsoft, Sony, and Nintendo have led the game console market in recent years. In the 90’s, we longed for amazing graphics and innovative design from these companies, and they have delivered. But who would have thought that 10+ years later, those small portable devices we use to communicate with others were to become competition? This is the time of portable gaming, and it is a fascinating time in which all the tools to develop a game, such as the ones we fell in love with as kids, are easily accessible to anyone. In fact, a whole new wave of game applications has surfaced because of iPhones and Android phones. As your typical dork that has been fortunate to have had at least 1 modern console since childhood. I am thrilled and welcome the new device that will make people fall in love with consoles again.
That is why the OUYA was exciting on first impression. However, there are numerous things anyone supporting it should consider. Is the price tag too good to be true? In reality, yes, it is. After you do a bit of research on similar gadgets. You will find that there are bootleg devices that, more or less, offer similar features for a slightly smaller price tag and are already up for sale. The China based electronics manufacturer JinXing Digital (JXD) has developed a number of portable devices which run on the latest Android OS. Android’s very own MK808 4.1 Mini PC/TV Box was recently released as well with a price tag of $90 flat. Given that these devices did not get attention nor funding through Kickstarter, they offer similar features as the OUYA while not hiding their tech behind a brand new design which can require extensive production time and money. Think about it, folks. This is a brand new product. It will require patents, quality assurance testing, and numerous other factors that might become obstacles along development.
Some of us may be too young to recall or have heard of The Phantom. After googling it, I know your reaction will be similar to mine when I read about it, “How did this NOT take off?!” Just reading a brief bio on it, you realize it was ahead of the game. Its design was small, slick, and sexy… everything we love about our PS360Wii slims; you could play PC games on it; develop for it easily; play online. The people at Infinium Labs even had a working prototype at E3 in 2004—not just a well edited teaser video clip. It was unfortunate that it never made it to stores due to problems during production and online software.
But that was another time when online game play was not as strong as it is now. These days, online capability is a given for mostly any game and portable device. The team behind OUYA appear to have enough savvy in order to deliver something to its supporters. Just this past week, Julie Uhrman, OUYA founder and CEO, released news that the console was now in the development phase and meeting milestones in time. Will they be able to deliver in time? Will it actually succeed? Part of me remains hopeful and optimistic to see indie developers have a chance at putting their project out there through a brand new console that caters to them.
$48 Mogu M0 “peoplephone”, i.e. an Android smartphone for everybody to hit the Chinese market on November 15
November 9, 2012 10:51 pm / 10 Comments on $48 Mogu M0 “peoplephone”, i.e. an Android smartphone for everybody to hit the Chinese market on November 15
This is a great historic moment as thanks to a highly optimized Android 2.3 (CyanogenMod 7 distribution which seems to support HW acceleration in the latest versions, see here and here, and besides about 400 people is working on Android for Spreadtrum so it definitely could have been done) version, able to run in 256MB RAM only, and the amazing ultra low-cost, but still quite well performing (Cortex-A5 @1GHz), SC6820 SoC from Spreadtrum some Chinese manufacturers behind the Mogu brand were able to bring out a sub $50 smartphone “for everybody of us”. This means not only a significant lowering of the price for the truly performing entry level smartphones, but also is marking the beginning of the demise of the classic feature phone segment. So it is a disruptive innovation of enormous significance.
Re: Lowest H2’12 device cost SoCs from Spreadtrum will redefine the entry level smartphone and feature phone markets [this same “Experiencing the Cloud” blog, July 26 – Aug 16, 2012]
Just here to notify you that SC6820-based “smartphone” will hit the Chinese market with a price as low as ¥299 [$48] next week. Link:http://www.moguphone.com/indexM0.html, note that M2 phone based on MTK6577 is also very cheap.
hyno111 on Nov 8, 2012
hyno111@gmail.com
74.125.19.23
On the top of the indicated website one can find to following illustrative content:
![sy4[2]](https://lazure2.files.wordpress.com/2012/11/sy42.jpg?w=960)
where:
– 蘑菇 人民机 means “Mushroom [the] people [machine]” as translated by Bing
-more precisely 蘑菇 mogu, the people (ordinary people) 人民, and …机 …machine but in fact …机 …phone (such as 手机cellphone) i.e. 蘑菇 人民机 means Mushroom peoplephone with Mushroom (Mogu) as the overall brand and peoplephone is a constructed noun expressing the “phone for everybody of us” idea in the most concise way as a kind of new market category name
Note that such kind of idea is deeply rooted in the history of the modern industrial world. The most vivid examples you could find in the history of cars and radios:
– The Ford Model T was the very first instance of the concept itself, then the proper naming appeared when the Volkswagen (literally meaning Peoplecar) company was founded in 1937 by the Nazi trade union, the German Labour Front (Deutsche Arbeitsfront) for the People’s Car project. And the basic design for the Volkswagen Beetle was conceived back in 1925 by Béla Barényi during his mechanical engineering studies, the model vision finished in 1931, and appearing on the front page of the Motor-Kritik in 1934 (see this detailed Mercedes-Benz article about him). And after World War II France had the Citroën 2CV, Great Britain the Mini, Italy the Fiat 500, and East Germany the Trabant, just to indicate the most prominent examples of very successful “people’s cars” next to the overall leader, the Volkswagen Beetle.
– The Volksempfänger (German for “people’s receiver”) was a range of radio receivers developed by engineer Otto Griessing at the request of Nazi Propaganda Minister Joseph Goebbels. Great Britain had the Utility Radio from the last year of the World War II as a similar concept as well. And later we had the Transistor radio which indeed became essential part of people’s everyday life.
After searching on the wen I found that the first information about the Mogu M0 peoplephone became available last Saturday:
199 Yuan! Mogu M0 peoplephone upcoming release: 3.5 inch bright screen [IT之家(IThome.com), Nov 3, 2012]
… Mogu Cellphone, as rumored around the continent, is about to release a “Mogu M0″ model for ultra low-cost smartphones (Mogu peoplephone). The phone has a 3.5-inch high-definition highlighted display; 1GHz CPU; 256M RAM, 512M ROM; it is running the Android 2.3 operating system; supports Bluetooth/WiFi/FM/expansion card; has a dual SIM dual standby capability; priced at 229 yuan. The first 1000 pilot machines [as told in the later announcement of Nov 8 the “the first batch of 1,000 units”]will have a price of 199 yuan.
199 yuan for a smartphone, would you have expected it?
No wonder that “the first batch has been sold out” is currently on the shopping site http://moguphone.taobao.com/ with “the second batch ready to go” whatever does it mean from pricing point of view. The latest message of Mogu Cellphone microblogging site of Sina Wibo clarified it on Nov 8 as:
[The first thousand units of Mogu M0 pilot machine, November 15, at 10 o’clock in the morning sale] at 10 o’clock on November 15th, sold 1000 limited pilot, for pilot price of 199 dollars, instead of price of 299 Yuan. Buying Platform: Taobao Marketplace address is http://t.cn/zlmnjuU (please note collection), the Taobao platform limits to buy 800 units. Open supply after November 20, the public price is 299 yuan, details, please pay attention to official Mogu website: www.moguphone.com.
The company behind the Mogu brand is the 深圳市盛谷科技有限公司, Valley Technology Co., Ltd. Shenzhen Sheng (or Shenzhen Sheng Valley Technology Limited as translated by Bing) which has a too broad About page not worth to include here. More relevant information I’ve found in the following job advertisement published on August 8:
Shenzhen Sheng Valley Technology Co., Ltd.
Emerging Internet companies, own multiple Taobao Malls, a brand for multiple manufacturers brand operation. The company mainly had an operation for high-end domestic mobile phones. Now the companies are in the high-speed development stage and require a lot of talent, we are looking for customer service, (art) designer, and administrative/executive staff. Learn more on Baidu more on google
- Company size :20-99
- Company Type: Private
- Company Industry: Computer
Contact:
- Company Web site:
- Address: Futian District, Shenzhen Huaqiang North the SED 雅苑 5P
- Tel: 18664986715
- Contact: Duan Sheng (段生)
- E-mail:
Phone quality inspector … Media Manager / microblogging operators / forum operators … Taobao manager … Mobile phone after-sales maintenance division … Taobao accounting … After-sale customer service … The financial … Head of mobile phone sales … Taobao customer service / the Taobao Commissioner … Taobao customer service (Beijing)
Fast staff recruitment could have started back in July as evidenced with this Art Editor / Design job placement ad which had the same company description.
Another useful company profile given for a designer and a web programmer job as of Aug 6, 2012 is stating a 1-49 company size, private ownership and Internet/e-commerce set of activities with a different description:
Shenzhen Sheng Valley Technology Co. Ltd. is focused on independent R&D and brand management for mobile intelligent terminals. “Integration, innovation, open” is Sheng Valley Technology’s business philosophy. “MOGU Magic Valley” is the [essence of] company’s efforts to build an Internet phone brand, [with which it] is committed to providing users with customizable, cost-effective, high playability smartphone products.
Sheng Valley Technology’s mobile team: 乐蛙
Company has team of empowering entrepreneurial passion and innovation, comprising of senior members of the mobile industry, mobile Internet industry, and e-commerce industry. Our team is advocating a simple, fast, innovative, open Internet culture. The vision of the team is to use the Internet to achieve a business model of disruptive innovation, enjoy the happiness of common entrepreneurial growth.
Strategic partners:
Currently has been the telecommunications industry, China Unicom, Tapas Mobile (点心), LeWa (Le frog 乐蛙), cyanogen (CyanogenMod), Mobile uncle (www.mobileuncle.com 移动叔叔), Seven Casket (www.7xz.com七匣子), All music (乐众), N multi-network (www.nduoa.com N多网), Mushroom Cloud Hack Machine (蘑菇云 刷机), Hack Wizard (刷机精灵等) [Shenzhen Bottle Technology Ltd 深圳瓶子科技有限公司] with which a strategic partnership is established, providing the safest, most convenient user-oriented Android OS hack machine service.
As seen from all the above Mogu as a local brand marketing company has all the critical technological and marketing ties in the Chinese Android ecosystem. With cyanogen they are even tied to the crucial Android Open Source Project via described in What is CyanogenMod [Oct 13, 2009 – Oct 17, 2012] as:
CyanogenMod(/sɪˈænoʊdʒəŋmäd/) is a customized, aftermarket firmware distribution for select Android devices.
Intended as a replacement for the software (also known as the “firmware” or “ROM”) that comes factory installed on your smartphone, CyanogenMod is based on the Android Open Source Project – the same base software used in all Android devices. However, CyanogenMod offers several benefits over the pre-installed firmware, including vastly flexible interface and customization, a wider set of new features, and sometimes significant improvements in performance.
CyanogenMod’s features may allow you to bypass software limitations imposed by carriers, which may prevent you from using the handset in a manner that they do not support. Such features include, but not limited to, the ability to overclock the device’s CPU, tether the device to your computer, or fully back up the device to your SD Card.
What CyanogenMod isn’t
CyanogenMod, however, does not “unlock” the device. Most carriers “lock” their handsets to prevent customers from buying a handset and moving to a different carrier. Carriers depend on these “exclusivity” agreements to bolster revenue. For example: if you buy an iPhone in the US, you are stuck with AT&T or Verizon, whichever you bought from. To use the handset on another carrier’s network it would be necessary to “unlock” the handset. This is done with a code based on the IMEI of the handset that can be provided by your carrier or firms on the internet that are slightly more reliable than a Nigerian Prince.
Unlocking cannot be done by installing CyanogenMod, or any other firmwarefor that matter.
…
The CyanogenMod firmware is currently based on code released by the Android Open Source Project’s “Gingerbread” (Android 2.3) development branch. CyanogenMod is primarily developed by Cyanogenbut includes contributions from the xda-developers community and other sources.
Licensing Controversy
Until version 4.1.11.1, CyanogenMod included several proprietary apps such as Gmail, Maps & the Android Market, which are included with stock versions of Android, but are not licensed for distribution with ‘custom’firmwares, such as CyanogenMod. Legally, Cyanogenwas not allowed to include these apps in CyanogenMod.
Google sent Cyanogen a Cease and Desist letter demanding he stop distribution of these apps and Cyanogenceased all development until a solution could be found.
The reactions of many CyanogenMod users was predictably hostile, with some claiming that Google’s legal threats hurt their own interests and violated their informal corporate motto to “Do No Evil”. After extensive media coverage (PC World, The Register, The Inquirer, Ars Technica, The H, ZDNet, Gigaom, and eWeek) and a statement from Google clarifying its position Google and Cyanogen negotiated an agreement in which Cyanogen could continue development on his firmware as long as he did not include Google’s proprietary “Google Experience” components.
To work around the licensing issues, it was further agreed that the proprietary Google apps may be backed-up from the stock firmware on the device and then re-installed onto CyanogenMod releases without infringing copyrights.
Cyanogen has warned that while issues no longer remain with Google, there are still potential licensing issues regarding proprietary, closed-source device drivers. However, he believes the licensing issues with the drivers can be worked out, and he is receiving assistance from Google employees to avoid any further licensing issues.
Furthermore the About the project | CyanogenMod [Nov 1, 2012] is giving the further up to date information:
CyanogenMod (pronounced sigh-AN-oh-jen-mod), is a customized, aftermarket firmware distribution for several Android devices (See above for supported devices & how to install CyanogenMod on said devices). Based on the Android Open Source Project, CyanogenMod is designed to increase performance and reliability over Android-based ROMs released by vendors and carriers such as Google, T-Mobile, HTC, etc. CyanogenMod also offers a variety of features & enhancements that are not currently found in these versions of Android.
While this build is heavily optimized, it is also capable of pushing your phone much harder. CyanogenMod and it’s team hold no responsibility to any damage caused to your phone, loss of earnings as a result of damaging your phone or anything else that is connected to the development of this rom.
For a list of devices officially supported by CyanogenMod, check out the official devices page. Such is the craze for CyanogenMod, that devices that aren’t officially supported, still manage to receive ports of the ROM courtesy of enthusiasts and developers. CyanogenMod offers the most barebone Android experience coupled with some very powerful tweaks. This whole package by now is not wholly developed by CyanogenMod developers alone, but is a collaborative effort between them and independent developers on sites like XDA-Developers.
Right now, CyanogenMod consists of two parallel and active major versions: CyanogenMod 7 is based on Android 2.3 (Gingerbread), and CyanogenMod 10 is based on Android 4.1 (JB); CM10-capable devices are being phased out of CM7, but since there’s a large amount of devices still on the market that aren’t capable of fully running Android 4.x, CyanogenMod 7 exists to support them.
The variants of the firmware are split into categories, such as: Stable, Release Candidate, M-series and Nightlies. The Stable version, as suggested by the title, is the tried and tested variant of the firmware proven to be mostly bug free and suitable for daily use. The latest stable version is available for an assortment of the officially supported devices. A Release Candidate (RC) build may not be the final version, but a variant that has no fatal flaws or bugs, on the stabilization stages to become the final product that is the Stable variant. M-series releases behave similar to the RCs, but are considered ‘stable’ for our users. Lastly we have the Nightlies, which are as volatile as a firmware can get. These releases keep coming at an interval of a day or two and if you do end up trying one of these, do not be alarmed if the your device goes cuckoo on you. These ROMs are largely untested, and as advised by CyanogenMod, not meant for use for an average user. These releases, are meant to test untested waters that may or may not break your phone.
This CyanogenMod capabilities explain the following specification parameters of Mogu M0:
– Android 2.3
– 256MB RAM+512MB ROM
From the same specification list it is also important to note here:
– resolution: 320×480
– battery: 1280mAh
Furthermore: You can find all the information about the SC6820 story in the referred Lowest H2’12 device cost SoCs from Spreadtrum will redefine the entry level smartphone and feature phone marketspost. In order to have an immediate impact and convenience I will reproduce here the Spreadtrum product page as well:
SC6820 EDGE/GPRS/GSM 1GHz Low-Cost Smartphone Platform [Feb 29, 2012]
Designed with 40nm CMOS silicon, the SC6820 is a highly integrated, low-power platform for EDGE/WiFi mainstream smartphones. The single-chip solution supports multimode EDGE/GPRS/GSM and integrates a Cortex A5 1GHz processor, a dedicated GPU for graphics acceleration, and power management. Bringing the web and graphics performance of high-end handsets to the low-cost market segment, the SC6820 is delivered with turnkey Android and systems software that reduces the design time and resources required to deliver new handsets to market.
SC6820 Baseband Diagram
SC6820 Key Features
Core Description
- ARM Cortex-A5 core, clock speeds up to 1GHz
- Integrated DBB, ABB and PMU
Communication Features
- GSM/GPRS/EDGE standards, GSM850/EGSM900/DCS1800/PCS1900
- EGPRS Class 12
- HR, FR, EFR, AMR-NB
Multimedia Support For
- Mali 400 GPU: 30MTri/s, 256Mpix/s, OpenGL ES 1.1/2.0
- Decoder: MPEG4/H.263 720p@30fps; H.264 WVGA@30fps; VP8 WVGA@30fps
- Encoder: H.263/H.264/MPEG4 WVGA@30fps
- Video Streaming: MPEG4/H.263/H.264 WVGA@30fps
- 3G-324M Video Telephony
- 5 MP Camera Sub-system JPEG decoder/encoder (32MP/s)
- MP3/AAC/AAC+/MIDI/AMR-NB/WAV format
- Audio codec included
LCD Display Features
- Supports up to WVGA [800×480] resolution
- Built-in LCD Controller, touch panel controller
- Support for dual color LCD display modules
- Supports OSD / Rotation / Scaling
Memory I/F Support For
- 4Gbyte NAND flash (8 bit and 16 bit devices)
- HW ECC, multi-bit ECC
- 1Gbyte SDR/DDR SDRAM (16 bit and 32 bit devices)
Peripheral I/F Support For
- HS USB 2.0
- 3 x UART with built-in IrDA controller
- 2 x SPI interface, 3-wire SPI, 4-wire SPI, synchronous SPI
- 4 x I²C interfaces
- 2 x I²S and PCM interface
- 2 x SDIO interfaces
- 2 x SIM/USIM interfaces
- 4 x PWM outputs
- ETM port
- More than 100 GPIO pins
- 8 * 8 keyboard interfaces
Other Features
- Operating ambient temperature range: -45℃ to +95℃
- Low-power design, chip core voltage: 1.8V
- 13mm × 13mm 454-ball LFBGA package, 0.5mm ball pitch



Led the company successfully landed on the Nasdaq after 4 months, founder of Zhuhai Actions Semiconductor Co., Ltd. (hereinafter referred to as “Actions”), Zhao Guangmin [then vice chairman of the company] suddenly announced his resignation.
… [Till] June 2005 Zhao Guangmin has been Actions’ general manager, [then] since June -01.jpg)
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San Francisco, California – Today Nokia introduced HERE, the first location cloud to deliver the world’s best maps and location experiences across multiple screens and operating systems. With the new brand, HERE, Nokia aims to inspire a new generation of location services and devices that make the mobile experience more personally significant for people everywhere. 











Designed with 40nm CMOS silicon, the SC6820 is a highly integrated, low-power platform for EDGE/WiFi mainstream smartphones. The single-chip solution supports multimode EDGE/GPRS/GSM and integrates a Cortex A5 1GHz processor, a dedicated GPU for graphics acceleration, and power management. Bringing the web and graphics performance of high-end handsets to the low-cost market segment, the SC6820 is delivered with turnkey Android and systems software that reduces the design time and resources required to deliver new handsets to market.![6820_block_tr[1]](https://lazure2.files.wordpress.com/2012/11/6820_block_tr1.gif?w=960)