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Acer’s decision of restructuring: a clear sign of accepting the inevitable disintegration of the old PC (Wintel) ecosystem and the need for joining one of the new ecosystems under formation
Acer’s latest decision is also based on the so called Stan’s Smiling Curve — see much below — which was used already twice for understanding the restructuring needs in times of radical changes in the industry. This is the reason why product value, associated R&D and focusing on telecom channels (= more effective distribution, marketing and sales/aftersales) are emphasized along with consumer oriented products:
Follow-Up (Aug 2, 2011):
– Acer & Asus: Compensating lower PC sales by tablet PC push [March 29, 2011 with comprehensive update on Aug 2, 2011] which is showing serious technical and market problems with the original version of Honeycomb
Update: Global PC Shipments Dip 3.2% in Q1: IDC [April 29]
Although the forecast for the quarter was already conservative–IDC expected a mere 1.5% growth in shipments–a steady but still cautious business mentality and waning consumer enthusiasm persisted. A spike in fuel and commodity prices and the disruptions in Japan added to the mix, further dampening a market struggling to maintain momentum, the major international market research firm said.
Despite promising economic sentiments, mature regions appear to be more focused on necessary replacements as a relative dearth of compelling reasons were present to buy secondary PCs. Emerging markets fared better due to lower saturation rates, but also slowed somewhat with Asia/Pacific (excluding Japan) region (APEJ) slowing to a 5.6% growth and China continuing to cool off after a momentous 2010.
Taiwan-based Acer was affected by continued turbulence in Europe, Middle East, and Africa (EMEA) region, its biggest market. Moreover, the vendor is stilling feeling the pullback in the Mini Notebook (netbook) and consumer space, while its upcoming tablet PCs have yet to fill in the void. In the U.S., Acer also ceded its place to a surging Apple in the major market.
Top 5 Vendors, Worldwide PC Shipments, Q1` 20111 (Preliminary)
(Units Shipments are in thousands)Rank Vendor Q1`11 Shipments Market Share Q11`0 Shipments Market Share YoY
Growth1 HP 15,191 18.9% 15,624 18.8% -2.8% 2 Dell 10,284 12.8% 10,469 12.6% -1.8% 3 Acer Group 9,039 11.2% 10,733 12.9% -15.8% 4 Lenovo 8,172 10.1% 7,028 8.4% 16.3% 5 Toshiba 4,809 6.0% 4,634 5.6% 3.8% Others 33,062 41.0% 34,712 41.7% -4.8% All Vendors 80,557 100.0% 83,200 100.0% -3.2% Source: IDC Worldwide Quarterly PC Tracker, April 13, 2011
Worth to read along with this: Gartner: media tablets are the new segment next to mobile PCs and desktops, as well as web- and app-capable mobile phones [April 16, 2011]
Update: Acer appoints new president, adjusts corporate organization [April 20, 2011]
Acer on April 19 announced the appointment of Jim Wong, originally corporate senior vice president and IT Products Group president, as new corporate president effective immediately. The company has also separated its IT product global operations into two independent entities, Touch Business Group (Touch BG) and PC Global Operations (PCGO).
Touch BG consists of the original tablet PC and smartphone teams and is led by the new corporate president Jim Wong, while PCGO was originally the main PC product team and is led by president Campbell Kan, former vice president for smart hand-held business unit.
Acer has also set up three functional offices, Chief Marketing Office responsible for brand positioning and marketing strategies, Chief Technology Office for mid- to long-term business planning and integration of technologies, and Operation Analysis Office for studying and analyzing company business models and financial affairs.
In addition, Acer forecasts that its PC shipments in the second quarter of 2011 will decrease 10% on quarter mainly due to the impact of the corporate reorganization, inventory adjustments in main markets, and off-season effects.
Update: Acer changes business strategy from pushing volume to value, says chairman [April 8, 2011] (emphasis is mine)
Acer, in the future, will no longer push only shipment volumes, but will spend more time seeking product value and developing products that consumers need. To accomplish this, Acer will be seeking more R&D talent in the future, Wang noted.
…
Wang pointed out that a revolution is already in progress in the IT industry and Acer’s change in strategy is a must and the revolution will not only appear in the smartphone and the tablet PC industries. Wang used examples and noted that Microsoft’s Windows 8 operating system for 2012 will add support for ARM-based system-on-chip (SoC) platforms, and the software giant’s new move will completely change notebook and netbook’s designs in the future as future notebooks and netbooks will also feature instant boot capability, and Acer must catch up with all these opportunities.
In addition, Acer will also put more focus on developing technologies such as Clear Fi, touchscreen and software user interfaces, as well as working deeply into telecom channels.
Update: Acer increases Iconia tablet PC orders for April [April 12, 2011]
Taiwan-based PC brand vendor Acer has increased its April tablet PC orders to 500,000-800,000 units, aiming to compete against Motorola, RIM and Hewlett-Packard’s (HP’s) tablet PCs, according to sources from upstream component makers.
The sources pointed out that the 10-inch model is assembled by Compal Electronics with 7-inch model handled by Quanta Computer. Although Acer only placed a small amount of tablet PC orders in March, the company has significantly raised its orders in April with volume for 10-inch models reaching 400,000-600,000 units.
As US-based telecom carrier AT&T is already set to start selling Acer’s Iconia Tab A501, if Acer can also cut into Verizon’s channel, the company is expected to be able to challenge Motorola’s Xoom tablet PC. Acer internally forecasts to ship 5-7 million tablet PCs in 2011.
Acer has also recently started reducing its shipment proportion for netbooks and is aiming to have its tablet PC products cover the gap.
Acer also released a new company logo to show that the company is heading into a new direction and is aiming to create a new brand value.
Update: Acer changes its logo, hopes to start afresh [April 11, 2011]
Acer to initiate corporate restructuring, chairman says [April 1, 2011] (emphasis is mine)
The emergence of tablet PCs has made a strong impact on sales of consumer notebooks and netbooks, making Acer’s strategy ineffective, and therefore Acer has to initiate a corporate restructuring, Acer chairman JT Wang has said.
Wang, who has assumed the post of CEO at Acer after former CEO Gianfranco Lanci resigned on March 31, said Acer will appoint a global president at the end of April.
Wang said as CEO he will be responsible for finance, personnel and global marketing, while the president will supervise product design, product innovation, procurement and logistics services.
Acer’s president for Europe Walter Deppler, president for North America, Emmanuel Fromont, president for China, Oliver Ahrens and chief marketing officer Gianpiero Morbello are all expected to stay at their current posts, Wang said.
Wang also insisted that it is still not necessary for Acer to lower its shipment target for tablet PCs at the moment. Acer aims to ship 5-7 million tablet PCs in 2011.
See as well the following trend-tracking posts of mine. Without reading of them this trend-tracking post of “further information collection” could not be complete:
– Acer & Asus: Compensating lower PC sales by tablet PC push [March 29, 2011]
– Changing purchasing attitudes for consumer computing are leading to a new ICT paradigm [Jan 5, 2011]
– ASUS, China Mobile and Marvell join hands in the OPhone ecosystem effort for “Blue Ocean” dominance [March 8, 2011]
– 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]
– Marvell to capitalize on BRIC market with the Moby tablet [Feb 3, 2011]
‘Mutant viruses’ sicken Acer, Asustek [March 29, 2011] (emphasis is mine)
Sales of their own-branded computers have taken a big hit and now the companies are scaling back unit volume projections for the first quarter. In fact, growth will be negative as these two netbook pioneers struggle to regain their footing in the face of the iPad onslaught.
Back in September, Stan Shih called Apple products “mutant viruses,” telling the Asian technorati gathered to hear his speech that his company, Acer, and other Asian PC boxen makers would eventually overcome the threat posed by the iPad, iPhone and insurgent Mac. However, that pronouncement was followed in October by the news that Apple Mac unit volume surpassed Acer in the US.
Talk of the day — Acer needs reengineering: founder [March 30, 2011] (emphasis is mine)
Acer Inc., the world’s second-largest computer vendor, needs reengineering and repositioning because its previous winning formula is not effective any more, its founder Stan Shih said Tuesday.
Shih, who no longer manages the Taiwan-based multinational computer group but still controls a huge stake in the company, made the suggestion on the sidelines of a cultural seminar.
His advice came after Acer unexpectedly lowered its PC sales estimate for the first quarter of this year last Friday and gave a conservative forecast for its Q2 business prospects.
Acer revised its forecast on Q1 PC sales downward, from an annual increase of 3 percent to an annual decline of 10 percent, citing weaker demand in western Europe and the United States.
The following are excerpts from the local [Taiwanese] media coverage of Shih’s remarks:
Economic Daily News:
Shih acknowledged that smartphones and tablets have had a significant impact on the personal computer industry.
He expressed the view that Apple’s products, such as iPhone and iPad, have brought new visions and new concepts to the technology industry.
“The prevalence of smartphones and tablets has made Acer’s original target of expanding its global PC market share obsolete, ” Shih said. “It’s no longer meaningful for Acer to pursue growth in sales volume. Acer should from now on focus upgrading its profit margins.”
Because of changing business environment, Acer underwent a major re-engineering almost once every 10 years.
In 1992, Acer reshaped its increasingly bloated organization under a lean and mean strategy. During the period, Shih came up with a “smiling curve theory” that stressed the importance of branding and research and development.Its second reengineering effort came in 2000 when the company incurred huge losses because its contract production often hindered its branding efforts. Acer decided that year to spin off its contract manufacturing business while focusing on selling its brand-named PCs.
Over the past decade, Acer has emerged as the world’s second largest PC brand.
Now the company is at a crossroad again. Shih said Acer has only lowered its business forecast and has not incurred any losses.
“But its misforecast indicates that the PC market is undergoing substantial changes, ” Shih said. “The unexpected slow sales in Q1 should serve as a wake-up call. It’s time for Acer to undergo its third wave of re-engineering and re-positioning.”
Noting that Apple not only sells products but also sell services and that HP has announced its decision to install its Web OS system in its PCs, Shih said Acer should come up with new strategies to sustain its growth. (March 30, 2011).
Commercial Times:
Shih said it’s all too common for a business corporation to hit snags or face challenges.
“What counts most is change and re-engineer,” Shih said.
For Acer, he noted, the most urgent now is re-positioning and reshaping in order to achieve a breakthrough.
Shih suggested that Acer maintain transparency in its reengineering efforts and strengthen communications with the business community to bridge gaps in market expectations.
Thanks to Apple’s contributions, new business models have emerged, with close cooperation between smartphone and telecommunciation service operators, Shih said.
In the face of this new market trend, Acer should act quick and change fast, he stressed. (March 30, 2011).
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Stan’s Smiling Curve
Smiling (Smile) Curve theory was invented by Stan Shih Ex CEO of Acer Computer in his 1992 book. The theory gained its popularity due to the fact it outlines the industrial structure of Taiwan, specifically the electronic industry at the time. The smile curve’s left hand side includes the technology, patent, research and development. The middle section includes assembly, manufacturing. On the right hand of the curve is marketing distribution and after service. The x-axis is showing the value chain (stage of production) from the concept to end user. The y-axis is for the value-added.
Based on this vision, Acer has adopted a business strategy to recreate itself from a manufacturer into a company that focuses on global marketing of brand-name PC-related products and services. Meanwhile, Acer also has invested aggressively in R&D to develop innovative technology. The concept later became widely cited to describe the distribution of value-adding potentials in various industries to justify business strategies aimed at higher value-adding activities.
More information on that in terms of recent (2007) circumstances see: The Knowledge Based Economy [April 25, 2007]:
Michael Nystrom: … manufacturing does indeed appear to be the lowest value input. This is why, the capitalists say, the world has evolved to the point that it has. “We think, they sweat,” they say. We of course, are the Americans and they are the sweating Asians.
Clever, isn’t it? But I have a nagging feeling there is something wrong with the theory, though I’m not exactly sure what. Perhaps I’m too rooted in the old economy, unable yet to adjust to the idea of the “knowledge economy.” But I have a feeling there is something more.
What is wrong, if anything, with the model? Or am I just a dinosaur?
Mike Shedlock / Mish: … there is nothing wrong with that chart. One can clearly look at China, India, and SE Asia in general and see without a doubt what is happening. And in spite of enormous increases in [the price of] raw materials, the prices of finished goods have barely risen.
Are cars, boats, pottery, computers, monitors, printers, light fixtures, etc keeping up with the prices of raw materials that make them? Clearly the answer is no. The curve reflects what is happening. In fact, the curve represents additional profit that can be had by shifting manufacturing to low cost providers. That is in essence the very foundation of global wage arbitrage. However, You are missing several key points.
Key Points
- Global wage arbitrage is not just about manufacturing
- The US has no intrinsic brainpower advantage
- The smile curve is flattening
… [worth to read in entirety]
Comments by Stan Shih at Year 2004 (from Me Too Is Not My Style, Update Edition* [August 8, 2010]):
[to the Chapter 3: A Lesson in Intellectual Property]
According to Stan’s Smiling Curve, the research/development innovation in the intellectual properties (IP) portion is the key of future industrial and corporate competitiveness, in the knowledge-based economics. The IP development should be based on the market need; otherwise it will be un-marketable technologies which are the mistakes many entrepreneurs and IP owners often make. In the new economy, creating a new business model is also a kind of an IP development. Again, it has to be profitable to be sustainable; if not, it will be just self-indulgence. Acer has set up Acer Value Lab to master the market need and develop the technologies and products, from the viewpoints of the users. (Please refer to Chapter 7 “The Smiling Curve for a New Century” in “Millennium Transformation—Change Management of New Acer”.)
[to the Chapter 9: Paradigm Shift in the Information Technology Industry]
I proposed the theory of “Stan’s Smiling Curve” to illustrate the new tendency in 1992, at which time the information technology industries had started to dis-integrate into up-, mid-, and down-streams. This was
different from the integrated PC business by those earlier computer companies. After the onset of dis-integration, PC industries have gone through many important changes, including a complete outsourcing model, the merger of Fujitsu and Siemens, and HP merged Compaq. Recently, some investors propose that do not invest the PC companies except Dell and Apple Computer, both whose positioning are exceeding a PC company. During the process of this industrial change, Acer has successfully repositioned. We gradually expand the product lines and
enhance the IT service businesses, and have become an exceeding PC company. We were lucky to catch the earlier opportunity and have transformed into a branding and marketing service company.
[to the Chapter 11: “Go Game Strategy” and “Stan Smiling Curve”]
“Stan’s Smiling Curve” theory has been well-recognized internationally in a variety of industries. In addition to the IT industries, consumer-electronics, and software industry, the similar development has been seen in semiconductor, digital learning, and agricultural industries. All the industries and companies should go toward the both ends on “Stan’s Smiling Curve”. That is, to enhance the research and development, and marketing, so that the corporate value can be generated. I had also designed two value formulas: corporate value formula and brand value formula. (Please refer to Chapter 8 “Creating Brand Value” in “Millennium Transformation – Change Management of New Acer”.)
* original publication: Stan Shih, Me-Too Is Not My Style: Corporate visions, Strategies and Business Philosophies of the Acer Group, 1996; The Acer Foundation
Millennium Transformation – Change Management for New Acer [August 8, 2010]):
[from the Preface for the New Edition [Me Too Is Not My Style, Update Edition] Learn the Future from the Past:]
Then, I wrote the book “Millennium Transformation”, in which Acer’s highlights from 1996 to 2004 was recorded, following the first two decades of Acer described in this book. During the eight years illustrated in “Millennium Transformation”, Acer had gone through several significant transitions, especially the second re-engineering at the year end of 2000. The changes of background and decision processes of these transitions were more dramatic than that in the first re-engineering in 1992. After the 2nd re-engineering, Acer has successfully broke the growth limit and created another peak of business.
From: http://www.stanshares.com.tw/StanShares/portal/ebook/index.aspx
This is a Chinese based website [www.stanshares.com.tw ]. It is mainly about Mr. Stan Shih, the founder of Acer Group/ Chairman of iD SoftCapital Group, sharing his concept of management and philosophy of life.
It also includes 2 English books by Mr. Stan Shih – “Me Too Is Not My Style” and “Millennium Transformation – Change Management for New Acer“. If you are interested, you are welcomed to read it on-line or download the books for free.
[all his books: http://www.stanshares.com.tw/stanshares/portal/book/index.aspx]
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CEO and President Gianfranco Lanci’s resignation:
Acer trade volume erupts after pep talk by founder [March 31, 2011] (emphasis is mine)
Trade volume for shares of Acer Inc. erupted yesterday after its founder gave a pep talk, urging that the company should not focus on being No. 1 so much as it should on increasing profitability, in the midst of fierce competition from smart phone and tablet PC makers.
Acer last Friday shocked the PC industry by slashing its sales forecast for Q1 from an increase of 3 percent year-on-year to a decline of 10 percent. The company’s stock fell to its daily limit both on Monday and Tuesday, with foreign institutional investors selling a total of 6,273 units on Tuesday alone. Each stock unit is 1,000 shares of that stock.
Investment trust firms pretty much followed in foreign investors’ footsteps, while securities firms were on the buy side both on Monday and Tuesday.
What was seen as motivational talk by ever so iconic Acer founder Stan Shih Tuesday put an end to the selling spree yesterday, as the shares closed with total trade volume of 148,000 units. The stock however closed down again, albeit by a much smaller margin of 3.8 percent, to NT$60.7, still above the critical NT$60 level. The TAIEX dropped nearly 50 to 8,646.31.
Tuesday, Shih, who still serves as a director on Acer’s board, urged the PC giant to undergo another restructuring effort to ward off competition from smart phone and tablet PC makers.
“We’re only slashing our sales forecast, not reporting a loss,” he said. “Yet the mere fact that we had to downgrade a number that we had had wholehearted confidence in suggests the kind of challenge we’re faced with.”
He pointed out that Acer undergoes a major restructure effort about every ten years. “Now is about the time,” Shih said.
He said Acer first has to abandon its “No. 1 in the market” mentality. Given diminishing profit margins that PC manufacturers are faced with, the correlation between No. 1 and profitability is no longer absolute, he said.
“Being No. 1 in the market is only a superficial victory, something that makes our faces look good,” he said. “Yet realistically, we could have lost more through an erosion of earnings and profitability.”
He said what Acer needs to do, as Apple has proved time and again, is to “sell products” as well as “sell service.” The business model in which a manufacturer purely makes hardware will no longer work, he said.
Acer must seek to change: founder [March 31, 2011] (emphasis is mine)
Acer Inc founder Stan Shih on Tuesday (March 29) said that the the world’s second largest PC maker must “seek to change.” The company has repeatedly made inaccurately forecasts for its performance outlook, seriously disappointing shareholders and damaging the company’s image.
Shih told Taiwan PC maker’s management team that it was common for enterprises to encounter operating difficulties, though he was quick to add that Acer’s current problems may suggest its past formula for success has now become outdated.
Shih’s remarks are viewed by many in the industry as a sign that Acer will launch a third round of restructuring in the near future following similar moves in 1992 and 2000.
Acer’s latest inaccurate forecast was admitted on Friday (Mar. 25) when the company unexpectedly revised downward its revenue forecast for the first quarter. However, just a week earlier, senior Acer officials had assured foreign investors at a forum that their previous export growth prediction for the company for January to March remained unchanged.
The subsequent revision seemed to indicate Acer had failed to grasp the trend in a fast-changing world market.
Last year, the Acer founder also raised the idea of restructuring. However, his remarks this week were more direct and strident. “When a company is faced with problems and difficulties, it must make internal adjustments, change the old mode of thinking, establish new core competencies and look forward,” he said.
Shih said that when the broad circumstances are changing, companies must face up to the challenges and devise countermeasures. “This industry very obviously has entered into the era of mobile phones and telecommunications. Tablet computers and handsets have become the mainstream. I must say we should thank Apple for opening a way for everyone to follow.”
Looking back to the company’s 2000 reforms, a change which Shih said he had originally expected to take two to three years to push through. In fact, he said, it took only one year for the company to achieve its goals.
Shih attributed the latest gap between forecast and performance to a lack of good communication with the outside world. As for whether Acer will continue to pursue the target of becoming the world’s top 1 own brand PC maker, he said, “No. 1 is no longer that important, because even if you occupy the largest market share, it still would not guarantee high profits. So what is important is to look for change.”
Acer’s 1992 corporate reforms proved successful in part because the company acquired the laptop computer division of Texas Instruments and also partly because it recruited an outsider, Gianfranco Lanchi, as its general manager.
However, in the last two to three years many of Acer’s senior executives have retired, with the company bringing in larger numbers of foreign nationals to join its management team. This development has raised worries among employees that Acer has been following a policy of “de-Taiwanizing.”
In the last two trading days, Acer’s shares have dropped by the daily limit, causing the company’s market valuation to shrink by NT$26 billion (US$882 million).
Acer CEO and President Gianfranco Lanci resigns – With immediate effect [Acer press release, March 31, 2011] (emphasis is mine)
Acer CEO and President Gianfranco Lanci has resigned from the company, with immediate effect. Acer Chairman J.T. Wang takes acting role in the interim. The company has commenced with the planning of organizational and operational adjustments for the sustainable future of Acer.
The resignation was approved at a meeting of Acer’s Board of Directors today, and the company has communicated internally with its worldwide employees.
On the company’s future development, Lanci held different views from a majority of the board members, and could not reach a consensus following several months’ of dialog. They placed different levels of importance on scale, growth, customer value creation, brand position enhancement, and on resource allocation and methods of implementation.
The change does not affect current operations which are functioning as normal. Acer’s strong management team of multi-nationals has been well-informed and is committed to overseeing and implementing the company strategies, as does the amicable company relations with industry partners persist. Acer will continue to push for globalization, follow its multi-brand and channel business model, develop competitive products and services, and foster closer relations with key vendors and channel partners.
Acer Chairman, J.T. Wang expresses, “The personal computer remains the core of our business. We have built up a strong foundation and will continue to expand within, especially in the commercial PC segment. In addition, we are stepping into the new mobile device market, where we will invest cautiously and aim to become one of the leading players.”
“In this new ICT industry,” continued Wang, “Acer needs a period of time for adjustment. With the spirit of entrepreneurship, we will face new challenges and look to the future with confidence.”
In his role as President and CEO, Lanci has contributed significantly toward Acer’s growth. The company expresses its true appreciation for Lanci’s efforts and wishes him all the best in his future endeavors.
Some reports on that resignation:
– Acer CEO Lanci Quits After Clashing With Board; Wang Takes Over [Bloomberg BusinesWeek, March 31, 2011]:
The 56-year-old executive earned a civil engineering degree from the Politecnico of Turin, where he was born. He joined Texas Instruments Inc.’s Italian unit in 1981 and became country manager for the Portable Computers and Printers Division in Italy, the Middle East and Africa by age 37, according to Acer’s website. In 1997, he was named managing director of Acer Italy after Texas Instruments’ portable PC business merged with Acer.
Lanci, who enjoys reading and playing tennis, was promoted to president of the International Operations Business Group in 2003 after heading Acer’s operations in Europe, the Middle East and Africa, according to Acer.
Wang, born two months before Lanci, became chairman in 2008 after Lanci succeeded him as CEO. Wang has a bachelor’s degree in electrical engineering from National Taiwan University and an Executive Master of Business Administration degree from Taiwan’s National Cheng-Chi University.
– Acer CEO Lanci quits after boardroom bust up [MicroScope.co.uk, March 31, 2011] (emphasis is mine):
Acer has the lowest operating expense in the PC industry base and used strong relationships with the Original Design Manufacturers (ODMs) to offer price points that lured consumers in and underpinned its rise to the top.
However, consumer confidence and growing interest in tablet PCs resulted in an abrupt end to booming mainstream notebook sales, and highlighted Acer’s reliance on the segment, despite its efforts to diversify through acquisition.
…
Ranjit Atwal, principal analyst at Gartner, told MicroScope that Acer had made a good fist of becoming a major player in the PC space but the consumer boom was over and its efforts to build in the professional market were more muted.
“Fundamentally, Acer’s business model is predicated on maintaining volumes in consumer mobile PCs which allows them to maintain and increase margins. But consumers are now generally backing off buying traditional PCs,” he said.
Atwal said that Acer’s efforts in the professional mid-market, led by the Gateway brand in Europe, had not compensated for the drop in consumer demand.
“Given that the professional market is moving away from a box mentality – most vendors are trying to provide solutions – the whole sale is becoming more complicated in terms of how you get to the business customer,” he said.
– Acer Joins AMD In Not Having a CEO [Softpedia, March 31, 2011]:
Hearing that AMD, even after so much time, still doesn’t have a permanent head figure probably has consumers wondering, but it looks like Acer might just go through a similarly tumultuous period now that its own CEO resigned.
Consumers keeping track of happenings on the IT industry will most likely have learned of how Advanced Micro Devices has been bereft of a Chief Executive Officer for months now.
The previous one, Dirk Meyer, left the company about two months ago and actually came as a surprise.
Now, Acer has provided onlookers with a similar surprise, as CEO and President Gianfranco Lanci has submitted his resignation.
– Gianfranco Lanci Calls It Quits As Acer CEO [mocoNews.net, March 31, 2011] (emphasis is mine):
Has the impact of the iPad 2 claimed its first executive victim?
…
In November the company made a big splash showing off its newest mobile computing devices.
This was a departure from its traditional main line of business of making PCs, and the hybrid culture resulted in at least one curious product that, depending on who you asked, was either innovative or just plain odd: the Iconia (pictured), in which what appears to be a laptop on the outside unfolds to reveal a two-screened tablet on the inside.
But since November, things, as they say, have moved on, and new product launches from other Android players as well as Apple (NSDQ: AAPL) with its iPad 2 have clearly shaken up Acer.
J.T. Wang remaining at the helm:
2010 Time 100 selects Acer’s J.T. Wang as one of world’s most influential people [April 30, 2010]
CEO of Acer Group and also the chairman of Taipei Computer Association (TCA) was listed in number two spot under the Leaders category of the recently Time Magazine’s annual top 100 world’s most influential people. Top world’s leader and individuals including Brazilian President Luis Inacio Lula da Silva, US Pres. Barack Obama, former US Pres. Bill Clinton, Sarah Palin, Apple’s Steve Jobs, Oprah Winfrey, Lady Gaga and etc were listed.
J.T. Wang By Michael Schuman [Time Magazine Apr. 29, 2010] (emphasis is mine)
One of the great trends of the next decade will be the rise of Asian companies. Long known for efficiency and manufacturing prowess, they’re now becoming more adept at the “soft” elements of business — marketing, design, branding and strategy — and that’s making them fiercer competitors.
J.T. Wang, 55, CEO of the Taiwanese PC maker Acer Group, is a harbinger of the future. When Wang became top executive in 2005, it ranked fifth in the global PC market. Acer has since stormed up the charts to No. 2, with more than 14% of the market, ahead of Dell and behind only HP.
Wang, who has worked at Acer for 29 years, is winning out with his knack for tapping into consumer trends — jumping headfirst, for example, into the craze for netbooks. “We don’t judge,” Wang once said. “We do what the customer really wants.”
Acer’s old directional statements back in November, 2010:
– Acer Aims for 15% Revenue Growth in 2011 [Nov 2, 2010] (emphasis is mine)
Optimistic about PC market prospects, the Taiwan-based Acer Inc., now the world`s second largest PC vendor now, aims to achieve a 15% sales revenue growth in 2011, with notebook PC shipment to exceed 50 million units, according to the firm`s chairman J.T. Wang. This has showed Wang`s ambition to unseat HP in the market.
…
Wang also shows his optimism about PC market outlooks in 2011, indicating that prices of notebook PCs in the global market will remain steady throughout the year. The market situation will also help to stabilize the ASP (average selling price) of its products in the year.
Not worried about Apple`s iPad tablets gradually replacing netbook PCs in sales, Wang also commented on the rise of Apple`s iPad tablets, saying that the phenomenon has brought about positive momentum in the global PC market, and that scale of the segment will continue growing in 2011. Worth mentioning is that Acer will accelerate its foray into the segment, planning to release its newest tablet PC running Microsoft`s operating system this month. The firm`s Android-based tablet is slated for debut next year.
To adapt his firm to an ever-changing market, Wang stated that each of Acer`s devices will be installed with the software “Acer Clear.fi” starting in the first quarter of next year, which will satisfy its customers with better hardware integration so as to help enhance value of its products.
Acer`s CEO Gianfranco Lanci added that the firm will step up exploring emerging markets as Brazil, Russia, India, Indonesia, etc. [i.e. BRIC] Hopefully, the firm will take over HP`s leading position in the global market for notebook PCs next year.
– Acer to Set Up 2nd Chinese Headquarters in Chongqing [Nov 4, 2010] (emphasis is mine)
Acer will also rally its contract manufacturers, including Compal and Wistron, and supply-chain member firms to establish factories in the city, thereby forming a complete manufacturing clustering. The company is scheduled to sign a contract with Chongqing City government for the project in December.
…
The Chongqing headquarters will be essential for Acer to expand its presence in the Chinese market, in order to become the world`s leading PC brand. Gianfranco Lanci, chief executive officer of Acer, reported that the company has targeted raising the share of the Chinese market in its total revenue to 20% by 2013, up from 7% now.
– Acer Steps Up Market Push in Mainland China [March 23, 2011] (emphasis is mine)
Acer Inc. is stepping up market push in mainland China by building partnership with the mainland`s retailers.
Almost one month after signing a pact to provide electronics retail chain Suning Corp. with US$500 million worth of computers in two years, Acer recently licensed online electronics retail chain 360buy.com to offer after-sales service in the mainland for it.
It`s the first ever after-sales service licensing that Acer has signed with a mainland Chinese retailer, showing the company`s determination to boost sales in the mainland. 360buy.com raked in revenue of RMB10 billion (US$1.5 billion at US$1:RMB6.5) in 2010, up 100% from 2009.
Last year, Acer signed a contract to provide the online retailer with RMB100 million (US$15 million) worth of notebook computers.
When a trade mission composed of representatives from heavyweight enterprises in Nanjing visited Taiwan in February, Acer signed an agreement to supply US$500 million worth of computing products to the Nanjing-based Suning.
Acer Chairman J.T. Wang pointed out that his company`s sales through Suning spiked seven folds in the second half last year from the same period of a year earlier. The retailer is operating 1,400 shops in the mainland. Wang estimated Acer`s sales through the chain to further rise three folds this year.
Acer has projected its sales in the mainland at US$2.5 billion for the year, surging 70% from last year. In the meantime, the company`s market share in the mainland is estimated to rise to 13-15%, up from current 10%.
Acer`s sales in the West have slumped because of maturity of the markets there, prompting the company to depend on mainland China for huge growth in the years to come.
Thus the originally planned BRIC focus, especially the mainland China part has been unable to sustain Acer’s old strategy of growth!
Regarding what one of the options for restructuring could be:
– Should Acer consider a Nokia type deal with Microsoft – but for laptops? [March 30, 2011] (emphasis is mine)
If the agreement between Nokia and Microsoft works out in the end it is a big win for both companies, and the consumer. Microsoft gets a dedicated partner willing to do whatever it can to promote Windows Phone 7 and Nokia gets the inside track to the Windows Phone 7 OS.
Now, I have said here before that I believe that Microsoft should be taking a strong role in the hardware end of the business that its Windows platform runs on. We have that in a limited scope with the Microsoft Signature brand laptops and desktops available in the Microsoft Stores.
In this aspect the consumer is a big winner because they know that they are getting a computer that has been optimized to run the Windows operating system at its best. No more of the crap ladened computer with sub-optimal components in pretty boring shells.
Today Stan Shih, Founder of Acer, said at an event in Taipei that the company needed to rethink its philosophy when it comes to being the world’s biggest PC vendor and focus on better and more distinguishable products.
If this indeed the case maybe Stan and Steve should sit down together and see if they can help each other out in the same fashion that Nokia is working with Microsoft.
There is no doubt that Acer build some really good hardware but by forging an alliance with Microsoft they could possibly gain some freedom to come up with some innovative and cool shells for their good hardware.
From Microsoft’s side I am sure that a special deal could be offered up in regards to its software whether it be consumer or enterprise.
This doesn’t even bring up the fact that Acer is getting into the mobile market as a handset maker, although this might be off the table given the Nokia deal.
This is pure speculation and will likely never happen but an interesting idea all the same.
Deeper background:
This is what happens when the essential creator of the PC (Wintel) ecosystem, Microsoft Corporation is repeatedly failing to deliver the next great client offering despite its numerous claims in the row from as far back as January 2010.
See what happened in that regard:
– HP’s Windows 7 Slate Device Revealed by Steve Ballmer [Techmeme, Jan 6 – Jan 10, 2010]
– Windows slates in the coming months? Not much seen yet [this trend-tracking blog, July 13 – Oct 9, 2010]
This is what happens when:
– things are continuing with Microsoft stance of just talking about Windows slates but no products on the horizon plus Windows Phone 7 will come out only in November
– while at the same time Apple and Google/Android are creating a very fast growing, new consumer market for computer powered client devices, and as a consequence:
1. Goldman downgrades Microsoft, makes case for major overhaul [Oct 3, 2010] along with which a radical proposal was put forward:
A break-up of the consumer businesses could potentially unlock hidden value, or more discipline on cost could turn the businesses into contributors to profitability and shareholder value. For example, the Xbox products could be an appealing stand-alone entity, given the historical success of the Xbox and the products’ brand strength, and the business could show unlocked value with forced cost discipline compared to as a piece of Microsoft. To date the company’s comments suggest that management still sees significant value in combining the consumer and enterprise efforts, but we view a foot in both camps as preventing a successful focus on one strategy, a la Oracle in the enterprise or Apple for consumers.
2. And still in A Mastermind Interview With Steve Ballmer, CEO, Microsoft [Oct 21, 2010, see the video record which is clickable from there] on the Gartner Symposium/ITxpo Orlando 2010 Ballmer said (when confronted by that opinion) that Windows is Microsoft’s biggest consumer product and continued:
When people say nutty things like Goldman you ask what part of Windows would you like to spin out? There is no rationale. The reuse of technology across the consumer and enterprise is the way forward.
3. Moreover he argued for his position that Linux and Android is reused for both markets with the same code base—just like Windows. Then he put forward his best argument against the idea that Microsoft should spin out a consumer business:
… is next to crazy. It’s next to the craziest discussion I’ve ever had. Nobody wants a different UI per device. … People want the same thing at work they wanted at their home. …
… [the fact that there were] 200 million plus Windows consumer PCs in the last year alone says there is a lot of people are thinking in that direction, across the world. … I know we have competitive challenge, but part of the challenge is people walk in [to their IT department] with their iPad saying I want it at work. They do want the same things at work that they have at home, whether that comes from us or from our competition. … People will ask for things at work that they love, that they buy with their own money .
4. While answering the 4th part of Gartner 630 (6 short anwers to simple questions in 30 seconds max) about the coolest product introduced or to be introduced in 2010 and indicating the Xbox Kinect coming in November he is getting teased by a quick question whether that will be the consumer version or the enterprise version to which he responds with (turning like an artist away from the interviewers and towards the audience):
Let me help these guys! What they don’t understand: cool starts at home.
This is what happens when despite of this clear understanding by Microsoft and its CEO that recognition was starting to be delevired ways too late as reported in detail by my other trend tracking posts:
– ASUS Eee Slate based Windows marketing from Microsoft [March 21, 2011]
– CES 2011 presence with Microsoft moving to SoC & screen level slot management that is not understood by analysts/observers at all [Jan 7, 2011]
while still unanswered questions remain:
– How Microsoft is going to solve the problem of assuring HTML5 et al platform stability for web developers? See more information.
– Microsoft’s upcoming CES 2011 announcement of a Windows slate overlay software for touch-first HTML5 applications could have true competitive impact on the overall tablet (iPad etc.) market, see more information. <<< this had not been delivered there (see CES 2011 presence with Microsoft … )
– Microsoft has a new overall platform strategy based on evolving HTML 5, and an enhanced one for its own Windows client devices, see more information.<<< this had not been delivered yet (see CES 2011 presence with Microsoft … )
and generally it is still true that:
– Microsoft and HTML 5: new platform? — leading compliance?
although the new platform? question goes back to Microsoft going multiplatform? [Sept 17, 2010].
Acer & Asus: Compensating lower PC sales by tablet PC push
Update: Asustek Takes Aim at Apple With Latest Tablet [Aug 2, 2011]
Asustek Computer Inc. is reportedly planning to fight off Apple with its latest Transformer-coded tablet PC in anticipation that Apple will cut down prices of its iPad 2 when launching iPad 3 at retail prices on par with iPad 2`s launching prices.
Industry executives estimated Apple to offer discounted prices for iPad 2s in order to clear inventories before launching sales of iPad 3s by this Thanksgiving or next year. They forecast iPad 3s would go on sales at the same prices as iPad 2s’ launching prices.
If so, iPad 3s will pose a threat to non-Apple tablets. To counter, Asustek is reportedly planning to introduce its next generation of Transformer laptop, which doubles as tablet by removing an optional keypad, in October this year.
People familiar with Asustek`s plan say Asustek is working with its components suppliers on developing advantageous designs that can compete with iPad 3. They point out that 2G Transformer is lighter, thinner, quicker in response to switch on and off, and longer in battery work hour on each electrical charge. Asustek is said to offer one definite price tag for 2G Transformer to get rid of speculation on further price markdown, which can inspire consumers to delay the purchases.
Upbeat sales are expected for 2G Transformer as sales of its predecessor are impressive. Asustek sets to ship two million 1G Transformers throughout this year.
Industry executives pointed out that Asustek is among the non-Apple tablet makers that are gearing up to fight off Apple.
Comparative Tablet Teardowns Reveal iPad Design Advantages [IHS iSuppli, Aug 1, 2011]
In the 15 months since the introduction of the iPad, competitive tablet manufacturers still can’t match the design efficiency of Apple Inc.’s groundbreaking product, according to an IHS iSuppli Teardown Analysis of eight tablet modelsfrom information and analysis provider IHS (NYSE: IHS).“Since Apple controls both the operating system and hardware design of the iPad, it is able to attain design efficiencies that other tablet manufacturers cannot,” said Wayne Lam, senior analyst, competitive analysis, at IHS. “These efficiencies become obvious in areas like the memory [see the half size SDRAMs in the below table] and the battery, where Apple maintains advantages in cost, space savings and performance compared with every competitor in the business.”
Other tablet makers employ operating systems from third-party firms—such as Google Inc., which provides the Android software used in most competitive products on the market today. Many of these tablet makers also outsource the blueprints of their products to third parties, employing reference designs and design services from contract manufacturers.
This contrasts with the model employed by Apple, which uses its own operating system and maintains tight control of its design, components and contract manufacturers.
“Apple takes a vertically integrated approach to its products, from the operating system to the user interface, to the hardware design, down to the selection of individual parts used in the device,” Lam noted. “For example, Apple even uses its own applications processor design in both the iPad and iPad 2. In contrast, Android tablet makers buy those capabilities from the likes of Nvidia, Texas Instruments and Qualcomm. This gives Apple greater control in multiple areas of product development.”
The table presents an overview of the results of the dissection of eight tablet models. Note that the BOM figures accounts only for hardware and manufacturing costs and do not take into consideration other expenses such as software, licensing, royalties or other costs.
*Motorola XOOM only comes in 32GB which retails for $799. We’ve normalized capacity for purpose of this comparative exercise
Source: IHS iSuppli Research, Aug 2011
iPad’s Memory and Battery Stay Slim
Apple’s control over the operating system allows it to reduce costs by limiting the quantity of memory in the iPad. In the current-generation iPad 2, the density of synchronous dynamic random access memory (SDRAM) is 512 megabytes—half that of the 1 gigabtye used in competitive designs. This memory density reduction results in a nearly $14 reduction in the BOM of the iPad 2 compared to other tablets. Likewise, the original iPad contained half as much SDRAM as comparable competitive devices with single-core applications processors.
“The iPad’s efficient memory usage stems from the fundamental difference in the architecture of the operating system,” Lam said. “Apple’s iOS handles multitasking differently than other tablet operating systems, allowing it to reduce the amount of memory required to support the microprocessor.”
Also, Apple’s tight management of its product design, software integration and component selection also allow the iPad’s battery to be the thinnest of all competing tablet designs while still having the largest capacity.
Tablet Trends
Extensive teardown research also reveals how Apple is setting the pace in the tablet market in the areas of pricing and screen size.Apple established the sweet spot for tablet pricing, pegged at $500 for the Wi-Fi version of the Apple iPad that included 16 gigabytes of NAND flash memory. Samsung reinforced this pricing standard with the 16-gigabyte version of the new Galaxy Tab 10.1 model.
Other tablets such as the BlackBerry Playbook from Research in Motion Ltd. and the TouchPad from Hewlett-Packard Co. have gravitated toward that price point as well.
Apple also is setting the standard for display sizes, with the iPad’s 9.7-inch screen becoming the default standard in the market. Although some tablets have been introduced with screens in the 7-inch range, notably RIM’s BlackBerry PlayBook and the upcoming HTC Flyer, the number of designs in the market with 10.1- and 9.7-inch displays have been more plentiful.
“Dual-ing” Tablets
The IHS iSuppli Teardown Analysis Service also illustrates the trend toward multi-core processors in tablet designs. Following the introduction of the Motorola Xoom in February and the iPad 2 in March, all new tablet designs within 2011 have included dual-core processors that deliver higher computing and graphical performance.In 2012 IHS expects to see this trend to continue with the introduction of tablets featuring quad-core processors for even more enhanced performance.
Read More > IHS iSuppli Teardown Analysis
Apple Rides High-Margin Hardware to Competitive Supremacy [IHS iSuppli, July 29, 2011]
As shown by iSuppli’s Teardown Analysis service, Apple commands hardware gross margins in the range of 50 percent on the iPhone, compared to 20 percent to 40 percent for competitive products.
These high margins are the product of the company’s unique approach to product design and Intellectual Property (IP). So far, competitors’ responses to the iPhone have been lookalike, brute-force solutions that throw money at expensive features. Such a tactic yields a higher Bill of Materials (BOM) and generates lower profits—but still doesn’t provide the same quality of user experience as Apple’s products.
Oil Money
The benefits of Apple’s high-margin hardware strategy recently have manifested themselves in the company’s titanic market capitalization. At a level of $234 billion, Apple’s capitalization exceeded that of Microsoft Corp., making Apple the largest technology company in the world based on this measure. In fact, among all types of companies worldwide, Apple’s market capitalization is second only to oil giant Exxon Mobil.Meanwhile, Apple now holds a cash reserve of $23 billion, giving the company a massive war chest.
To put this into perspective, Apple could buy more than half of Nokia Corp. or all of Motorola Inc. just with its cash reserves—not that iSuppli actually expects the company to consider that.
Building Differentiation
While many companies have developed smartphones to compete with the iPhone based on assembling increasingly expensive subsystems, Apple has taken a unique approach.For instance, Apple employs a touch controller Integrated Circuit (IC) from Broadcom Corp., but combines it with its own touch system architecture. In another example, Apple’s fingerprints are all over the new A4 processor used in the iPad. However, the A4 started with building blocks made by Samsung Electronics.
A third example is that Apple chose to build around Infineon Technologies’ baseband IC, rather than choosing a more encompassing Snapdragon solution from Qualcomm.
Apple’s Lucky Star
The stars have aligned for Apple, and the company’s hardware and design vision perfectly matches the demand for improving utility of the Internet.The only company capable of directly challenging Apple’s prominence is Google Inc. Nonetheless, with the vast size of the market opportunity in the mobile world, iSuppli expects the two companies to profitably coexist.
At the same time, iSuppli expects Apple’s lead to extend. Given the variety of initiatives under way, iSuppli is convinced that Apple will offensively widen the gap that now exists relative to its peers, rather than simply extend the time defensively until others catch up.
Tablets to Power Growth of Mobile Broadband Market in 2011 [July 28, 2011]
Shipments of mobile broadband devices in 2011 are projected to climb to 157.9 million units, up from 100.1 million units in 2010. Aside from tablets, the mobile broadband segment includes devices such as notebook and netbook computers, as well as e-book readers.
This year’s growth rate for mobile broadband devices parallels the robust 57.4 percent expansion of 2010, and coming on top of a larger base affirms the market’s strong performance for the second year in a row. Shipments will continue to rise during the next few years but at lower rates, declining to 38.1 percent in 2012 and gradually trending downward until 11.0 percent in 2015 to some 350.7 million units. The five-year compound annual growth rate, computed from the starting year of 2010, stands at 28.5 percent.
Within the segment, tablets will represent the fastest-growing mobile broadband device this year with shipments projected to reach 58.9 million units, up a mighty 239.3 percent from 17.4 million in 2010.
“More than any wireless device, media tablets—exemplified by the best-selling iPad from Apple Inc.—appear to be at the forefront in boosting mobile broadband,” said Francis Sideco, principal analyst for wireless research at IHS. “Affecting everything from supply ecosystems to chipset design, to services, applications and business models, tablets are spurring innovation not just in the wireless sector but also across multiple industries,” Sideco noted.
In particular, media tablets are influencing every node of the value chain, including suppliers, device manufacturers, mobile network operators, third-party applications and service suppliers. In the supply node of the value chain, for instance, tablets impact not only how core chipsets and architectures are designed but also how chipset strategies are implemented and then marketed.
“The excitement surrounding tablets is primarily due to the virtually unlimited range of value-added services and applications that may be delivered through tablets because of their wireless networking capability,” Sideco said. “Whether tablets have built-in Wi-Fi or come with embedded 3G/4G chips, the wireless function of tablets enables them to transcend just merely being another cool gadget into a virtual storefront, with the potential to generate revenue for any number of downstream businesses and industries.”
…
Of the various ways to enable broadband access for consumer electronics devices, mobile hotspots and embedded chipsets are the fastest-growing methods, growing 25 to 50 percent faster than the overall market, Sideco noted. Key to their growth is the capability of mobile hotspots to combine data access for multiple devices while staying at the forefront of technology, as well as the flexibility of design enabled by chipset solutions in devices.
By 2015, the majority of mobile broadband devices will utilize the 4G wireless standard known as long term evolution (LTE), in line with consumer demand for faster speeds and, perhaps more important, lower latencies or delays from their mobile broadband networks.
“Growth in mobile broadband devices will drive an explosive increase in mobile data traffic, causing carriers to rapidly rethink their strategies for network and service deployments as well as data monetization,” Sideco said. “And as new players target the mobile device market, existing players at every node of the communications value chain will need to continually evolve their business strategies. Failure to do so in this dynamic market, with continually changing paradigms, will cause even well-established players to be relegated quickly to marginal roles.”
See also:
– Netbook prices starting $50 less at $200 via Intel MeeGo strategy [July 29, 2011]
– Tackling the Android tide [July 16, 2011]
– Acer repositioning for the post Wintel era starting with AMD Fusion APUs [June 17, 2011]
– Microsoft’s huge underperformance on mainland China market [May 30, 2011]
– Amazon Tablet PC with E Ink Holdings’ Hydis FFS screen [May 3, 2011]
– from the original post of March 29 (moved up to here): ASUS Eee Slate based Windows marketing from Microsoft [March 21, 2011] which is presenting the Windows Slate value proposition based on the Eee Slate product of ASUS being the first real slate product for Microsoft and thus finally enabling Redmond to start the long awaited value proposition campaign (just a start for MS but a very important one to build the much wanted by it premium value proposition over tablets from Apple and Google/Android)
– from the original post of March 29 (moved up to here): Follow-up: Acer’s decision of restructuring: a clear sign of accepting the inevitable disintegration of the old PC (Wintel) ecosystem and the need for joining one of the new ecosystems under formation [April 1, 2011] Worth to read along with this: Gartner: media tablets are the new segment next to mobile PCs and desktops, as well as web- and app-capable mobile phones [April 16, 2011]
Acer Iconia Tab A100 finally available in August for $300 [July 29, 2011]
It’s been a long and twisted road for Acer’s 7-inch Honeycomb tablet, but after all the starts and stops, we’ve finally got an ETA for the Iconia Tab A100. According to an email sent out to Acer retail partners today, the slab should land in stores sometime in early August with a suggested price tag of $300 [becoming the first Honeycomb tablet in that size]. The Tegra 2-powered device was originally slated for a mid-May launch, but was reportedly held up by Honeycomb compatibility issues. Also arriving early August, is a pair of new Aspire notebooks: the 15.6-inch 5750Z and the 17.3-inch 7739Z, ringing in at $475 a piece. Both laptops rock 4GB of DDR3 RAM (upgradable to 8GB), 500GB of storage, and Intel Pentium processors. Given the extra three months Acer’s had to get the Iconia Tab A100 to market, that Honeycomb better taste extra sweet when it finally makes its debut.
Acer to ship 300,000-400,000 tablet PCs in 3Q11, say sources [July 25, 2011]
Acer is expected to take up delivery of 30,000 units of its 7-inch Iconia A100 tablet PCs from ODM Compal Electronics in July and increase the volume to 100,000 units in the August-September period, according to industry watchers.
More on Acer towards the end of Aug 2 Update.
Wintek to supply touch panels for use in Asustek tablet PC Eee Pad Transformer [Aug 2, 2011]
Taiwan-based Wintek has become the second supplier of touch panels for use in the second-generation Eee Pad Transformer tablet PC model to be launched by Asustek Computer in October 2011, according to Eee Pad Transformer supply chain makers.
In view of booming sales of the 10.1-inch first-generation Eee Pad Transformer, Asustek is having its supply chain well prepared for production of the second-generation model and therefore has selected Wintek to supply touch panels in addition to HannStar Display, which makes touch sensors produced by its subsidiary Sintek Photronic into touch panels, the sources pointed out. Wintek will begin small-volume shipments in the middle of the third quarter and shipments in large volumes will begin at the end of the quarter, the sources indicated.
Asustek shipped an estimated 400,000 Eee Pad Transformer tablet PCs in the second quarter of 2011 and aims to ship more than one million units in the third quarter, the sources noted.
Asustek to ship 300,000 Eee Pad Transformer tablets in June, says chairman [June 10, 2011]
Asustek Computer’s shipments of Eee Pad Transformer tablet PCs will reach 300,000 units as projected for June, and will account for 10% of total revenues for the month, according to company chairman Jonney Shih.
For the first half of 2011, total shipments of Eee Pad Transformers will top over 400,000 units compared to its target of 300,000, Shih added.
Shih made the remarks while Acer has lowered its tablet PC shipment target for 2011 from 7.5-10 million to five million units [then even lower to 2.5 million units, see much below in this August 2 Update]. But sources at component suppliers believe that Acer’s revised target still remains too high.
While Motorola Mobility has said that it shipped 250,000 Xoom tablets during the February-April period, the sources indicated total shipments of Xoom tablets will be below 500,000 units by the end of June.
Additionally, sales of Samsung’s Galaxy Tabs and HTC’s HTC Flyers tablets have been flat so far, the source added.
With plans to launch new models including sliding tablets and its Padfone, Asustek is confident that it will be able to sustain its goal to ship two million tables PCs in 2011, Shih stated.
Asustek sets prices lower for US-bound Eee Pad Transformer tablet PCs [May 23, 2011]
Asustek Computer has adopted an aggressive pricing strategy for its entry-level Eee Pad Transformer tablet PCs sold in the US market, a move which may force other vendors to adjust their pricing for comparable models, according to industry sources.
Asustek began to market its 10.1-inch Eee Pad Transformer in the US in May with the entry-level 16GB Wi-Fi only model priced at US$399.99, which equals roughly NT$11,500 compared to a price of NT$14,900 set in April when the device was initially launched in Taiwan.
Asustek is expected to ship two million tablet PCs in 2011, with the Eee Pad Transformer accounting for about 50% of total shipments, the sources estimate.
Facing price competition from Asustek, Acer reportedly is reviewing its pricing for comparable models sold in the US market, said the sources, noting that Acer currently sets the price of its 10.1-inch 16GB Iconia tablet PC at US$449.99.
Additionally, prices for Android 3.1-based tablet PCs to be launched by other vendors in the second half of the year may also be affected, with ASPs of Android 3.1 models likely to be dragged down by US$100, the sources commented.
ASUStek’s promotional video:
Eee Pad Transformer- My Multiple Lifestyle, I decide [April 12, 2011]
[ http://www.facebook.com/ASUSEee ]
Visit the ASUS Eee fan to know more product information and join campaigns.Meet the ASUS Eee Pad Transformer, the best tablet choice for users looking for both media consumption and mobile productivity. Featuring an expandable keyboard docking station and a combined battery life of up to 16 hours, the Transformer is a 10.1″ tablet running the new Android 3.0 operating system, Honeycomb. Stay productive with Polaris® Office® or enjoy multimedia with Adobe® Flash®10.2 support. Combine it with ASUS’ intuitive Waveshare user interface and the most powerful hardware features available makes the Transformer an exciting portable device supporting both office work and social communication.
ASUStek’s product site:
Eee Pad Transformer TF101 [April 2, 2011]
already indicating Android 3.2
Android 3.2 comes to the Asus Eee Pad Transformer (while Acer’s tablet gets Android 3.1) [July 29, 2011]
Asus Eee Pad Transformer to get Google Android 3.2 starting July 28th [July 27, 2011]
The latest version of Android doesn’t really bring much to the tablet for people that are already using Android 3.1. There’s better graphics support for some apps that were designed to run on smartphones, and some other minor tweaks. The key difference is that the operating system will run on 7 inch tablets with lower resolution screens, but you don’t really care about that if you’re already using a Transformer.
On the other hand, Asus appears to be bundling one minor update of its own with Android 3.2: After installing the update you’ll be able to use multitouch gestures on the touchpad on the optional keyboard dock accessory for the tablet.
See: ASUS Eee Pad Transformer Full Review Video [with 3.2 already] [14:38 long, July 30, 2011] if you are interested in an overall usage experience including bundled applications like ASUStek’s own Polaris® Office® 3.0:
… a professional mobile office Solution which enables users to edit various types of office documents including documents (.doc), spreadsheets (.xls) and presentation (.ppt) files, making the Transformer very attractive for professional use.
Asustek Jumps to No.4 Spot in China`s Tablet PC Market in Q2 [Aug 2, 2011]
The Taiwan-based Asustek Computer Inc., a world-caliber PC brand, scored a 4.2% share as the fourth-largest brand in the Chinese market for tablet PCs in the second quarter, outpacing Motorola and Lenevo, according to a local market research body Enfodesk.
Enfodesk`s report shows that sales of tablet PCs totaled 1.4414 million units in the market in the second quarter of this year, with Apple Inc. remaining No.1 with a dominant market share of 74.3%. The China-based eben and Samsung posted a share of 4.8% and 4.5%, respectively, for the No.2 and No.3 spot. Trailing Asustek, Motorola and Lenovo came fifth and sixth, respectively, with a 2.2% and 2.0% share.
Enfodesk`s analysts indicated that with more players joining the competition, the market will see increasingly intense competition. They pointed out HTC`s Flyer, for instance, has similar technical specifications as eben`s competing models, and hence is expected to capture some of its potential shares in the future.
While Apple`s iPad keeps dominating the market, Asustek`s EEE Pad Transformer, which has received raving reviews from foreign news agencies, like New York Times, for its cutting-edge keypad attachment and friendly selling prices, has quickly gained its ground. In addition to China, in fact, the product has also enjoyed hot sales in different countries of the world, helping the brand to offset a sales decline in netbook PCs so far this year.
But, now that few brands can narrow Apple`s lead in a short time, the competition for the No.2 spot in the market will become even more intense, especially when more low-priced generic tablet PCs have also hit the market to threaten these runner-ups, indicated market observers.
DisplaySearch`s survey findings show that global sales of generic tablet PCs sharply increased to 1.9 million units to command a 19.6% share of the total in the first quarter of this year, only next to Apple`s market share and higher than any of a single PC brand. Compared to branded models that sell for between RMB3,500 [US$544] and RMB5,000 [US$777], generic tablet PCs are commonly priced at RMB2,000 [US$311] and below, well received as low-end alternatives in the Chinese market.
Market Share Recorded by Tablet PC Brands in China in Q2, 2011 Ranking Brand Market Share 1 Apple 74.3% 2 eben 4.8% 3 Samsung 4.5% 4 Asustek 4.2% 5 Motorola 2.2% 6 Lenovo 2.0% Source: Enfodesk
ASUS Transformer Review: Buy ASUS Eee Pad, iPad, Xoom or Galaxy? [May 19, 2011]
ASUS Transformer is quite good, brown color and texturized surface Android 3.0 Tablet, despite of its Laptop Like Looks. It has 1024px 10 inches display with an nVidia Tegra 2 Processor inside. It has almost 10hrs Battery Life [compares with 10 hours for the iPad 2].
ASUS Eee Pad lacks the 3G connectivity at the moment which will be available in next coming model. It has a built in HDMI port. This hybrid gadget can rightfully claim to be one of the best tablets in the market so far, with far [more] beautiful looks than the bulky Xoom and a price cheaper than Samsung Galaxy Tablet.
The tablet computers that compete with the iPad have mostly been uninspiring. The Eee Pad Transformer stands out with a design that isn’t just copied from the iPad: It’s a tablet that turns into a laptop.
For $399, $100 cheape
str than iPad, you get a tablet computer with a 10-inch screen and hardware that doesn’t cut corners. It’s fully usable on its own. For another $149, you can buy a keyboard that connects to the tablet. Together, they look and open like a small laptop.…
The ASUS Eee Pad Transformer Display Screen uses the same technology as the iPad’s [see here: IPS Panel, 178° wide view angle], making it easy to read from any angle and in any orientation. It is slightly larger than the iPad’s and has a slightly higher resolution.
The ASUS Transformer tablet weighs 0.68 kg and has a rear 5MP camera that allows you to take picture with it, even if for some this can be quite uncomfortable. You can get the 16 GB version for 399$.
The ASUS Eee Pad Transformer Camera quality is so-so but more than adequate for videoconferencing through Google Talk. The Transformer has two cameras, as we expect from this year’s tablets.
…
This isn’t the first time we’ve seen small laptops running Android, but it is the first time ASUS Transformer runs Honeycomb, the first Android version specifically designed for tablets rather than smartphones. The update makes Android much better at taking advantage of a 10-inch screen.
But as tablet software, Android is still far behind Apple’s iOS software for the iPad. The biggest problem is the low quality and poor selection of applications from outside companies. Many of my favorite iPad apps, including Netflix and The Wall Street Journal are not available at all. Others, such as The New York Times, are available only in inferior versions, designed for the smartphone screen rather than the tablet.
I also had frequent crashes when using the applications. The Transformer is perhaps the best Android tablet out there, especially considering the price, but the software is still a major weakness. Still, the beautifully integrated keyboard should tempt people who don’t want to decide between a tablet and a laptop.
Honeycomb Market Unpredictable – Will not install apps [July 27, 2011]
We have 15 Motorola Xoom Tablets for a High School Classroom. I have updated all of them to Android 3.2 (Honeycomb). I have been testing installation of apps through the market and have had very unpredictable behavior on all the devices. Sometimes I can install apps and sometimes I can’t. At first it seemed like it didn’t work with our ‘Google Apps for Education’ accounts but then a few of the tablets wouldn’t install apps with our personal Gmail account. We would take them home and sometimes that would help and sometimes that wouldn’t. We put them outside our firewall here and that didn’t seem to help either. When we go to install an app it just sits there with the green bar scrolling. At that time, if we go to manage apps and the Market, stop the market and clear the data, then go back into the market, the app shows under ‘not installed’ apps……then when we click that it usually installs. I’ve also tried pushing the installs through the web browser too and that didn’t seem to make a difference. At this point it seems like they are door stops as they are practically unusable. As soon as it seems like we have it narrowed down, another device proves that wrong. And yes, I have tried Factory Resets on all of them.
Any ideas? No way am I going to call Motorola because they’ll tell me to unplug it and stupid stuff like that.
There was neither cure nor help for that from anybody (neither the vendor nor other users). This is the current sad state of the Android tablet market! ASUStek’s case is not different either (couldn’t be).
Android 3.1 on the ASUS Eee Pad Transformer [Anandtech, May 28, 2011]
At Google I/O Android 3.1 was unveiled along with details of Android Ice Cream Sandwich [a combination of Gingerbread and Honeycomb into a “cohesive whole”]. Here you see Android 3.1 (right) vs. 3.0.1 (left) on the ASUS Eee Pad Transformer. See also a very detailed ASUS Eee Pad Transformer Review [Anandtech, April 21, 2011] for the current (3.0.1) version where the ASUS tablet is also compared with Apple iPad 2, BlackBerry Playbook and Motorola Xoom.
Android 3.2 GPL source code published, update should follow soon [July 12, 2011]
… today Android Open-Source Project engineer Jean-Baptiste Queru has pushed the GPL portions of the 3.2 source code to the AOSP tree. Don’t think this means that Honeycomb has been open-sourced — this is just the bits used for the 3.2 update that are using the GPL license, which requires the source code to be available when the software is shipped.
For you developers out there, JBQ also gives build instructions (they haven’t changed since last time) and warns that the binaries aren’t likely to run on actual hardware, again like the 3.1 code. …
Motorola Xoom gets Android 3.2, 4G module’s FCC approval [July 12, 2011]
Motorola Xoom owners received two treats on Tuesday with new software and a hint of new hardware. Google has posted to its Android Building group that Android 3.2 is both available to download and should be reaching the tablets. The upgrade adds legacy app zooming, Exchange fixes, and the SD card slot support that Google had promised half a year ago before the launch of the Xoom.
The OS is also poised to be the first from Google to natively support seven-inch tablets like the Huawei MediaPad and HTC Flyer. Acer should also use it for the repeatedly delayed Iconia Tab A100. The PC builder had tried to force Android 3.0 on to the small size but found it unworkable.
Another of the initially promised upgrades, the 4G LTE module for Verizon, has surfaced at the FCC. The mini PCI card itself is nondescript but shows that Motorola will likely have a quick turnaround for the upgrades, which require that owners send in the Xoom to have it upgrade by Motorola itself.
Motorola cuts Xoom prices in US and Taiwan [July 7, 2011]
Motorola Mobility has lowered the price of its 32GB Wi-Fi-enabled Xoom tablet PCs for sale in the US from US$599 to US$499 and in the Taiwan market from NT$19,800 (NT$687) to NT$16,900.
Motorola’s price reduction comes after rival Asustek Computer launched its entry-level Eee Pad Transformer tablet PCs in the US market in May for just US$399, according to industry sources.
More tablet vendors are likely to cut their product prices prior to the launch of iPad 3 and Google’s next-generation Ice Cream Sandwich tablets to avoid the piling-up of old models, the sources commented.
Acer is likely to be forced to lower prices of Iconia tablet PCs in August in order to fulfill its goal to ship 2.5 million tablets in 2011, noted the sources, adding that Acer’s tablet PC shipments could have been below 300,000 units for the year so far.
Toshiba is also expected to reduce the price of its Android 3.0-based AT100 tablets in the Taiwan market after August, added the sources. The AT100 is currently available at NT$18,800.
Acer cuts Iconia tablet price to boost sales [July 29, 2011]
Acer has slashed the price of its 10-inch Iconia Tab A500 tablet PCs in the US market from US$449.99 to US$395 aiming to achieve its goal of shipping a total of 2.5-3 million tablet PCs in 2011.
The price reduction apparently aims to take on Asustek Computer’s Eee Pad Transformer tablets which are priced at US$399 for the US market, pointed out industry sources.
Acer in June lowered its 2011 shipment target for tablet PCs from 5-7 million units to 2.5-3 million units following a corporate restructuring in the second quarter. But some market watchers expect Acer to ship only two million tablet PCs as a best case scenario in 2011.
To cope with price competition from Acer, Asustek is expected to cut prices for its Eee Pad Transformers in mid-August, indicated the sources, adding that other brand vendors will also be forced to cut prices for their comparable Android/Nvidia Tegra 2 models.
Acer aggressively headhunting software talent from HTC, Asustek, Pegatron [July 27, 2011]
Acer has reportedly been aggressively headhunting software talent from players such as High Tech Computer (HTC), Asustek Computer and Pegatron Technology recently hoping to fill its gap in software development capability quickly, according to sources from PC players.
Commenting on the market rumor, Asustek pointed out that the company provides great treatment to its R&D technicians and the team is currently performing several new product developments and it has not heard any rumors about its employees leaving for other companies.
Starting from the end of 2009, Acer has been working aggressively seeking software R&D talent and successfully recruited an R&D team of 30 technicians from HTC to help rescue its smartphone business as well as cut into development of tablet PCs. However, compared to its competitors, which have close to thousands of technicians, Acer’s software R&D manpower is still rather weak, the sources noted.
Since Acer is providing great packages for its software R&D talent, the three firms all reportedly have several technicians ready to join Acer, while the deal has attracted talent from other software designers, the sources pointed out.
To counter Acer’s headhunting strategy, most of the competitors are paying more attention to the personnel turnover and are providing better bonuses to attract them to stay, the sources added.
Google posts Android 3.2 SDK, sets seven-inch tablet limits [July 15, 2011]
In addition to helping create native apps, it also helps explain the new tablet support. The release is very narrow on its new tablet requirements and explains that it will be focused only on seven-inch tablets with a 1024×600 display in addition to the nine- and ten-inch tablets it saw before.Actual users will mostly see the new adaptation to sizes as well as the support for SD card media loading that Google had promised half a year ago. A new addition for zoom-in app compatibililty lets apps run on tablets that don’t work properly in the usual scaling mode.
Developers mostly get better control over how apps display their buttons and other interface elements on different-sized screens, including the earlier sizes as well as the new seven-inch form factor.
The 3.2 update is likely the last Google will post in the 3.x family before Ice Cream Sandwich. Its new OS, which may start off as 4.0, is due to bring the Android 3 interface down to the phone level and scale more gracefully without being locked into certain resolutions.
The first tablets due to ship with Android 3.2 will be seven-inch tablets optimized for it, such as Huawei’s MediaPad and Acer’s Iconia Tab A100. HTC is also due to upgrade the Flyer and get a true tablet-native interface.
From the above posts it is apparent that the 3.0 version of Honeycomb had half-baked functionality which is only now has been partially expanded. Particularly notable are the display / screen functionalities in 3.2 which show what kind of narrow support developers had before, and also the limitations they should still cope with:
… some of the highlights of Android 3.2:
Optimizations for a wider range of tablets. A variety of refinements across the system ensure a great user experience on a wider range of tablet devices.
Compatibility zoom for fixed-sized apps. A new compatibility display mode gives users a new way to view these apps on larger devices. The mode provides a pixel-scaled alternative to the standard UI stretching, for apps that are not designed to run on larger screen sizes.
…
Extended screen support API. For developers who want more precise control over their UI across the range of Android-powered devices, the platform’s screen support API is extended with new resource qualifiers and manifest attributes, to also allow targeting screens by their dimensions.
From: Android 3.2 Platform and Updated SDK tools [Android Developers Blog, July 15, 2011]
The way of communicating such significant functional updates essentially needed for more general platform capability — only via a developers’ blog — is also showing how much Google’s way of delivering its Android OS is not platform-like at all. In the sense of ages old computing practices which began with IBM System 360.
End of Aug 2 Update
See also:
– ASUS, China Mobile and Marvell join hands in the OPhone ecosystem effort for “Blue Ocean” dominance [March 8, 2011] which is describing a different strategy for the fastest growing mainland China market, with a range of smart phone products which also includes however a tablet PC albeit of different name (TD Pad or T Pad), different operating system (China Mobile’s OPhone which contains Android source code and in 3.0 version could be compatible with Android 2.3 or even 3.0) and different ARM processor (Marvell PXA 920)
– CES 2011 presence with Microsoft moving to SoC & screen level slot management that is not understood by analysts/observers at all [Jan 7] where you can find a lot of details related to this post for: Acer Iconia dual screen notebook, ASUS Eee Slate, AMD Fusion APUs (of which the dual-core C-50, former codename “Ontario”, is used in the Acer Iconia Tab W500)
Acer Lowers PC Sales Goal [March 29]
Acer Inc., one of the world`s leading personal-computer venders, has unexpectedly adjusted downward its first-quarter PC sales goal to a negative annual growth of 10% from originally set positive growth of 3%.
The outlook for Acer`s PC sales is gloomy because the company`s operating net profit margin will fall under 2% in the first quarter of the year from the preceding quarter`s 2.93%, casting a cloud over its future earning performance.
…
Another big PC vender—Asustek Computer Inc. is also struggling to keep the bottom line to see sales cut by 10% in the first quarter from the preceding quarter.
In a news letter released by Acer, its PC sales in the first quarter will shrink 10% from the preceding quarter because of the weakened demand of the PC markets in Western Europe and the U.S.
Acer predicted it will not see positive growth for sales of PCs in the second quarter, given an optimistic projection made by institutional investors that the worldwide notebook PC market will see shipment increase by 10% in the second quarter from the preceding quarter.
Acer revised guidance to affect Compal and Wistron performance for 2Q11 [March 28]
Earlier, industry sources predicted that Compal and Wistron would see their notebook shipments grow over 10% and 15-20%, respectively, on quarter in the second quarter.
For 2011, Acer is expected to outsource 40-50% of its notebook production to Compal and another 30% to Wistron, the sources estimated.
Acer, Asustek believe tablet PC to aid 2Q11 revenues, market watchers doubt it [March 29]
Acer expects its tablet PCs, which have already started shipping in March and will have even more models to be launched in the second quarter, will see strong shipment increase in the second quarter, while Asustek expects its Eee Pad series will contribute about 5% of its second-quarter revenues.
Comparing the products to the iPad 2, both Acer and Asustek have added special functions into their machines and iPad 2 but the two vendors’ devices do not have any price advantage, while facing a big gap in brand popularity, so their sales are unlikely to benefit much, the market watchers noted.
The market watchers are already conservative about Acer’s claim that the company will ship over five million tablet PCs in 2011 and believe Asustek’s goal of shipping 1.5-2 million units will have a better chance to succeed.
Asustek unveils Android 3.0 tablet Transformer [March 28]
Asustek Computer has unveiled its first Android 3.0 (Honeycomb) tablet PC model, the Transformer, which is equipped with a Nvidia Tegra 2 dual-core processor, a 10.1-inch capacitive touch screen, a 1.2-megapixel front camera and a 5.0-megapixel rear camera, for pre-order immediately in the Taiwan market. It will debut the model in the UK on March 30 and the US in early April, according to the company.
The Transformer has an optional keyboard set for multiple extended use, Asustek indicated.
Asustek launched a 12-inch Wintel tablet PC model, the Eee Slate EP121, in January 2011. It will launch a 10-inch Android 3.0 Nividia Tegra 2 model, the Eee Pad Slider EP102, in May; and a 7-inch Android 3.0 model with 3G voice communication, the Eee Pad MeMo EP71, in June.
Asustek expects to ship 1.5-2 million units from the Eee Pad series to share 10% of total global shipments of non-iPad tablet PCs in 2011, the company said, adding of the total Eee Pad shipments in 2011, Transformer will account for at least 50%.
ASUS Tablet Computers — Providing Choice through Innovation at CeBIT 2011 [Feb 28]
Wide range of innovative tablet computers provide a variety of choices for consumers and businesses alike
CeBIT, Hanover, Germany (February 28, 2011)
— ASUS today presented a live demonstration of the four tablet devices announced earlier this year: the Eee Slate EP121, Eee Pad Transformer, Eee Pad Slider and Eee Pad MeMO. Designed for a wide range of users and applications, the models will be available with three screen sizes, and a choice of either Windows® 7 Home Premium or Google Android® operating systems for the ultimate in mobile flexibility and productivity.Choice is essential when selecting innovative and technologically advanced personal computer devices. When it comes to tablets, there is a clear need for devices than can deliver a full multimedia experience with HD video, broad connectivity options, gaming, plus the broadest range of media compatibility with standards like Adobe Flash, all in a compact device. In short, there is demand for tablets that enable users to both consume and create content to learn, work or play.
ASUS Eee Slate EP121
The Eee Slate EP121 is designed for users who require a highly portable handheld device that can also run standard office software while multitasking with other applications. Powered with an Intel® Core™ i5 dual-core processor, the Eee Slate features a 12.1” LED-backlit display with a 1280 x 800 resolution and a wide 178° viewing angle, making it perfectly suited for both productivity applications and multimedia entertainment.Windows® 7 Home Premium ensures full compatibility with a wide range of popular applications controlled by flexible input options thanks to the Eee Slate. The capacitive touch-screen responds instantly to fingertip control for day-to-day use, while the electromagnetic stylus offers fine precision input and control. An on-screen keyboard is also complimented by support for an external Bluetooth keyboard for traditional desktop use.
The Eee Slate is available with 32GB or 64GB of SSD storage (expandable via SDXC), and up to 4GB of DDR3 RAM. All models have 802.11n Wi-Fi, Bluetooth 3.0, a 2-megapixel camera, plus two USB 2.0 ports that provide full support for a wide range of standard PC peripherals, along with a mini-HDMI port that is ideal for connecting to external displays.
The Eee Slate EP121 was recently honored with a CES 2011 Innovation Award in the Personal Electronics category, and initial sales figures showed it reaching the 3rd best-selling item in the Computers and Accessories category at Amazon.com.
ASUS Eee Pad Transformer
Slated for release in April, the Eee Pad Transformer comes with a slim lightweight design and 10.1” capacitive touch-screen. It is the perfect pad computer for people who want to enjoy multimedia on the move, but still wish to have easy access to the web, email and other productivity applications. A custom user interface provides easy access to the many features of the Android® 3.0 HoneyComb operating system, while the NVIDIA® Tegra™ 2 chipset provides full support for Adobe Flash, smooth HD video conferencing and playback, a lightning fast web experience and incredible mobile gaming performance.
An optional docking station turns the Transformer into a full-fledged notebook with a QWERTY keyboard for desktop use, while extending battery life up to 16 hours. As with the Slider, front (1.2MP) and rear (5MP) digital cameras make for easy video chat and digital photography, while a built-in mini-HDMI port makes for easy connections to external displays for full 1080p HD video playback.
ASUS Eee Pad Slider
Mobile users who want the best of both tablet and traditional notebook worlds will be well served by the Eee Pad Slider. This pad computer not only features a 10.1” IPS touch-screen for finger-friendly use, but also a slide-out QWERTY keyboard for comfortable, use-anywhere typing. It is powered by the NVIDIA® Tegra™ 2, the world’s most advanced mobile processor with a dual-core CPU and NVIDIA® GeForce® GPU for never-before-seen experiences on a mobile device.
Built-in digital cameras on the front (1.2MP) and rear (5MP) of the Slider allow for easy video chat and digital photography while the Android® 3.0 HoneyComb operating system makes sharing photos by internet, email and social media sites a breeze. The intuitive interface provides user-friendly control via the capacitive touch-screen and optional onboard 3G allows for go-anywhere internet access, making the Slider the ideal device for mobile professionals with work-oriented needs.
ASUS Eee Pad MeMO
The Eee Pad MeMO provides the ultimate in mobile flexibility. Its 7” capacitive touch-screen makes it small enough to slip into a jacket pocket, yet still perfect for taking handwritten notes using the supplied stylus pen. The Android® 3.0 HoneyComb operating system with Qualcomm®’s dual-core Snapdragon™ offers a wide range of productivity and entertainment software, while a Micro HDMI port means the MeMO can even connect to an external display for full 1080p HD video playback. Built-in digital cameras on the front (1.2MP) and rear (5MP) of the MeMO also allow for easy video chat and digital photography, making it a convenient travel companion.
ASUS Launches the Eee Pad Transformer – An innovative tablet with an expandable keyboard dock [March 25]
ASUS today has announced the first shipments of the ASUS Eee Pad Transformer, the best tablet choice for users looking for both media consumption and mobile productivity. Featuring an expandable keyboard docking station and combined battery life of up to 16 hours*, the Transformer is running the new Android 3.0 operating system, Honeycomb. Combining Honeycomb with ASUS’ intuitive Waveshare user interface and the most powerful hardware features available makes the Transformer an exciting portable device supporting both office work and social communication.
Powerful mini-cinema entertainment on-the-go
Powered by the NVIDIA® Tegra™ 2 dual-core processor, the Transformer browses the web at blazing speeds, providing a snappier response time and better performance when multi-tasking. An IPS Panel made from durable and scratch-resistant glass is viewable at angles up to 178°, and produces a crisper and more accurate color range by up to 50% when compared to other tablets in the market. Built-in SRS Sound technology provides a dynamic 3D stereo audio experience, with maximum bass response and a wide sound field from the discrete speakers housed in the 12.98mm thick frame that weighs only 680g. A 5MP rear- and 1.2MP front-facing cameras can shoot and record video, which can be played back in video on HDTVs via a mini HDMI output port, making it a true mobile entertainment device.
Transform from pad to notebook mode with keyboard docking station
The Transformer sets itself apart from other tablets on the market by featuring an optional docking station. This provides access to a full QWERTY keyboard along with unique Android Function keys, turning the tablet Transformer into a full-fledged notebook. Preloaded on the Transformer is Polaris® Office® 3.0, a professional Mobile Office Solution which enables users to edit various types of office documents including documents (.doc), spreadsheets (.xls) and presentation (.ppt) files, making the Transformer very attractive for professional use. A touchpad, 3.5mm audio jack, two USB ports as well as a built-in SD Card reader for easy file sharing and storage expandability makes the Transformer a versatile media hub. In addition, the ultra-convenient ASUS WebStorage with one year of unlimited storage space provides worry-free cloud computing. The docking station also extends the Transformer’s 9.5 hours* of battery life up to 16 hours*, so users can use it all day for work and play.
Android 3.0 Honeycomb OS with ASUS Waveshare UI
Google’s Android Honeycomb is a revolutionary operating system specially designed and optimized for tablets, and enables users a full web experience for on-the-go web browsing, communicating and casual computing. Supporting Adobe® Flash® 10.2** and the ever growing Android Market, entertainment is a finger swipe away. The convenient ASUS Launcher also allows users to easily launch software, manage content and access online services and connect devices with a few simple taps, while ASUS’ Waveshare Interface hosts a variety of unique applications such as MyNet, MyLibrary, MyCloud and more. MyNet easily streams digital media wirelessly within home network devices so HD videos or music can be played on devices such as an HDTV or desktop PCs for an even better experience from the Transformer. MyLibrary consolidates downloaded books, magazines and newspapers in to one easy to browse profile while MyCloud is a total cloud solution, providing access to digital content such as music, videos and files from the cloud anywhere, anytime. Users can even use MyCloud to remotely access and control any PC or Mac system and access applications or files to extend the versatility of the Eee Pad Transformer experience.
*9.5 and 16 hour battery life estimated under certain conditions.
**Adobe® Flash® 10.2 support requires an upgrade available online.Highlights:
- Mobile Productivity with docking station (Full QWERTY KB and touchpad, up to 16 hours of battery life, Unlimited ASUS WebStorage)
- Mini-Cinema Entertainment (Brilliant IPS panel with 178⁰ viewing angle, HDMI support, NVIDIA® Tegra™2 1.0 GHz dual-core CPU)
- Trendsetting Tablet Experience (Android 3.0 OS for tablets, Flash support, thousand of applications on Android Market )
Asus EEE Pad Slider Tablet Hands-On (Honeycomb) @ Cebit 2011, Hannover, Germany [March 6.]
Asus Eee Pad Slider Full Specifications And Price Details [March 6]
Network 3G Network – 2G Network – Form Factor QWERTY-Slider Dimensions L x B x H 273 x 180 x 17.7mm Weight 886 grams Display Type IPS Capacitive touchscreen Size 7 inch Colors & Resolution 16 Million Colors & 1280 x 800 Pixels Input/ User Interface Input Full Slide-out QWERTY Keyboard Multi Touch Accelerometer sensor for UI auto-rotate Proximity sensor for auto turn-off System Properties Operating System Android 3.0 Honeycomb OS CPU 1GHz Dual-Core Nvidia Tegra 2 Processor 1GB / 512MB RAM Memory Storage Internal Memory 16GB/ 32GB memory storage Memory Expansion – Browser & Messaging HTML, Flash SMS, MMS, Email, Push Email and IM Camera Still – 5 Megapixels – 2592 x 1944 pixels – LED Flash, Auto Focus Secondary – 1.3 Megapixels – 1280 x 1024 pixels Video Recording Capability – 1080p HD video recording capability @ 30fps – 1920 x 1080 Pixels Connectivity Bluetooth & USB Bluetooth v2.1 with EDR & v2.0 micro USB WLAN Wi-Fi 802.11 b/g/n Headset 3.5mm stereo headset jack GPS A-GPS 3G Yes HDMI Mini-HDMI Music & Video Music Format MP3, WMA Video Format MPEG4, H.263, H.264 Battery Type Li-Ion 25WH Standard battery Battery Life 6 Hours Running Other Features 1080p HD video playback Micro HDMI Connector My Wave UI Optional onboard 3G Adobe 10.1 Flash compatibility Facebook integration Android Market, G-mail, Google Maps, G-Talk Facebook, Twitter, YouTube, Picasa Quickoffice, Digital compass Colors Black Price & Availability
Asus Eee Pad Slider will be available from May at a price ranging from $500 to $800.
Tablet PC Competition to Benefit Taiwanese Firms [March 25]
With PC vendors heavily promoting tablets to trigger more fierce competition in the marketplace, Taiwanese PC and related parts and component manufacturers are expected to benefit from the market boom this year.
Starting with Apple Inc.`s iPad 2G, launched on March 25 in 25 countries of the world and seen as a blockbuster for its upgraded specifications at a comparatively low unit price of US$499, more than 100 tablet models from different PC and handset vendors will be available in the market in the second quarter of this year.
In addition to existing players as Apple, Motorola and Samsung, others, including Taiwan`s Acer, Asustek, HTC, and MSI and the U.S.`s Dell and HP, will also join the competition starting the end of March.
For instance, Asustek`s Eee Pad is slated for launch around the end of March will sell for US$399 to US$699 per unit, and Acer`s Iconia will also be available starting in April, which will be built with a 2.1GHz dual-core processor with different price tags from US$299 to US$699.
Market observers estimate about 60 million tablet PCs will be sold worldwide throughout the year, with Apple to contribute 35-40 million units as the No.1 vendor.
Riding on the market booms, Taiwanese PC manufacturers, such as Hon Hai Group, Quanta Computer Inc., Compal Electronics Inc., Wistron Corp., Inventec Corp., Pegatron Corp., etc., will surely capture a big slice of the huge market pie this year.
Among them, Hon Hai Group is expected to emerge as the biggest winner in the competition landscape, as it has secured Apple`s contract orders on hand and revved up production in China for the client. In the meantime, Quanta and Compal, the world`s top two notebook PC suppliers, have shared Acer`s manufacturing orders for iconia, while Pegatron has garnered Asustek`s order for Eee Pad Transformer.
Also, HP`s tablet running Web OS and going on sale in June will be supplied by Inventec. Dell`s Android 3.0-installed model has been mass produced by Qista Corp, and RIM`s PlayBook has also been set for production by Quanta.
Makers of PC parts and components have also benefited from the tablet competition, such as TPK Holding Co., Ltd. and Wintek Corp. (touch panels), Largan Precision Co., Ltd. (optical lens modules), Simplo Technology Co., Ltd. and Dynapack International Technology Corp. (batteries), Unimicron Technology Corp. and Tripod Technology Corp. (high-density interconnection boards), etc.
Acer’s new ICONIA Tab W500: the best from PCs, the best from tablets [Feb 14, 2011]
2011-02-14 – Barcelona
Acer Iconia Tab W500 with Docking Station
Fun and productivity, entertainment and work. Our lives are made of different sides, that seamlessly blend one into the other. The devices we use should reflect this flexibility and ability to multitask, allowing us to enjoy and share content as well as be productive when there is the need.
This is why Acer created the ICONIA TAB W500, with an innovative design that effectively combines the best of two worlds: tablet and PC.
Capable of reconciling the opposites, ICONIA TAB W500 brings together the user-friendliness of the tablet with the familiarity of the PC, letting users enjoy the greatest entertainment or be productive, at home or on the go, according to their needs. The ICONIA TAB W500 effectively creates a bridge between the worlds of entertainment and productivity.
Acer Iconia Tab W500 with Docking Station and the Ring user interface
How? Acer ICONIA TAB W500 is a 10.1-inch multi-touch screen tablet that is complemented by a full-size chiclet docking keyboard. Calling the Acer ICONIA TAB W500 simply a tablet would be reductive. While the high-resolution screen, together with Dolby® optimized audio, are synonyms of fabulous entertainment, the handy docking keyboard is perfect for productivity.
The Acer ICONIA TAB is the perfect device for users who want to enjoy a flawless touch experience, but are not ready to retire the keyboard yet. The full-size chiclet keyboard doubles as a docking station providing optimal ergonomics and extended connectivity; plus it features the Acer FineTrack™ pointing device with two buttons for convenient navigation, an Ethernet port for fast Internet connections, and a USB port for external devices.
You can count on the Acer ICONIA TAB W500 to keep you updated on what’s going in your social networks, or have the latest news at your fingertips, check your mails or watch a movie on the fly, review a presentation or enjoy fun touch games. This is the beauty of having a multi-touch screen tablet that seamlessly transforms into a PC simply by docking it!
Acer Iconia Dual-Screen Notebook with Acer Ring
Starting point of the ICONIA TAB W500 touch experience is the Acer Ring. Easy to launch with a simple grab gesture, it offers immediate access to all the special features and touch application pre-loaded on Acer ICONIA TAB W500.
Utilities in the Acer Ring include Clean Disk, to manage and optimize disk space; Snipping Tool, to quickly select, tag and clip screen images; Device Control, to fine tune the tablet settings; Camera, to launch Acer Crystal Eye Webcam; Calculator and Game, to reach the games stored on Acer ICONIA TAB W500 in a breeze.
The Acer Ring also features a series of AppCards to effortlessly browse through and launch useful touch applications:
- TouchBrowser, designed to provide a better user experience, it lets you search, open, resize, select content from the web with the tips of your fingers.
- SocialJogger,
- My Journal, where you can collect web clips that are dynamically updated to keep you posted on any news in the websites you find interesting.
- clear.fi to search, share, and playback favourite music, photo, and video.
Acer clear.fi is Acer media sharing system that lets you enjoy your multimedia content across your home quickly and effortlessly. Thanks to clear.fi and the HDMI port your can stream and appreciate the multimedia stored on Acer ICONIA TAB W500 on any of the devices connected to your home network and clear.fi enabled.
Running on Windows 7 OS, Acer ICONIA TAB [W500] is equipped with AMD C-50 processor and AMD Radeon™ HD6250 graphics, for excellent visuals and gaming. Easy communication is a given with the ICONIA TAB W500, thanks to multiple connectivity options including Wi-Fi, 3G (on selected models) or Bluetooth® 3.0. To top it off, the dual, back and front, Acer Crystal Eye 1.3MP webcam, not only allows you to engage in video chats or video calls with your friends, it also enables you to record HD videos and share them on Facebook or YouTube.
Acer Iconia absolute touch experience with Acer Ring
Acer’s ICONIA TAB A500 [Feb 14]
Full touch experience in HD
2011-02-14 – Barcelona
Mobility and innovation, which have always been part of Acer’s DNA, now find a new form of expression in the new Acer ICONIA TAB A500, a 10.1-inch tablet designed to maximize content enjoyment, providing the same rich multimedia, gaming and Web experience you can enjoy on your home PC with the added user-friendliness of multi-touch technology.
Sleek, smart and full of innovative features, the ICONIA Tab A500 will be equipped with the latest, highly intuitive Google Android 3.0 “Honeycomb” operating system, the new version of the Android platform specifically optimized for tablets, combined with Acer UI to reach a whole new level of interactivity.
What’s more, the Acer clear.fi media sharing system will be preloaded on the device for seamless integration in the home clear.fi environment to easily access, play and share multimedia across the home network and to instantly publish updates to social media networks.
Designed for rich multimedia entertainment, this tablet comes with a high resolution, high colour contrast 10.1” display with wide viewing angle providing higher colour accuracy for better visuals from different perspective, allowing users to play or share HD video with friends on the go. Complete with a built-in HDMI port and 1080p output, it may also be used to enjoy HD content in full HD on a big screen TV or monitor.
The 10.1” full capacitive multi-touch screen ensures an optimal on-screen experience from every angle. Aluminum casing provides a cool look and feel, while its high gloss finish anodizing decorated with laser engraved textures demonstrates subtle sophistication. And despite being just 13.3mm thick, it’s powerful enough to provide fun and productivity in any location.
One of the tablet’s most impressive features is its ability to run and play premium HD arcade games and complex online 3D games, thanks to the multi-touch screen and gyro meter control, which guarantees an entertainment experience on par with the best game consoles.
The Acer ICONIA TAB A500 will be equipped with the dual-core NVIDIA® Tegra™ 2, the first mobile dual core CPU, that delivers up to two time faster browsing, for the best web experience ever, and amazing graphics, for optimized HD viewing, 3D and console-quality gaming, and multimedia playback anywhere thanks to the ultra-low power (ULP) NVIDIA® GeForce® GPU with Flash 10.1 support. What’s more you can relish movies, photos and more on your big screen TV in full HD glory thanks to 1080p HD video playback.
Multiple connectivity options, including Wi-Fi, 3G or Bluetooth® 2.1, maximise your mobile experience and keep you in touch with all you care about. The 5MP rear-facing camera plus HD front-facing camera are just perfect for video recording, video chat, or quickly snap a picture and upload it to Facebook, YouTube, Picasa; it can also be used as a barcode scanner
Available April 2011.
Acer Iconia Tab A500 Android Tablet Honeycomb [Gaming] Demo [March 28]
Acer aims to ship 5-7 million tablet PCs in 2011 [March 24]
Telecom service provider AT&T has announced that it will carry Acer’s Iconia Tab A501 4G tablet PC. Acer expects tablet PC shipments in 2011 to reach 5-7 million units, and aims to grab a 10% share of the global market, according to company chairman JT Wang.
The Iconia Tab A501 supports a 10.1-inch panel, Android 3.0 and Nvidia Tegra 2 dual-core processor. The device is scheduled to hit the market in the second quarter.
Verizon Wireless reportedly is interested in Acer’s other tablet PC, the Iconia Tab A500, according to industry sources.
Acer to Penetrate U.S. Market with 4G Tablet PC [March 25]
Suffering a sharp shrinkage in sales of netbook PCs in the U.S. due to the rise of Apple Inc.`s iPad, Acer is forced to switch focus onto tablet PCs and hence decides to join hands with AT&T, one of Apple`s major telecom partners, to fight back against the competitor, noted market observers.
…
The biggest functional features of the device include its interconnection with TVs and a built-in 4G LTE (long term evolution) modem. The device will be promoted along with AT&T launching its LTE services, with the selling price having yet to be determined.
…
To accelerate its foray into the emerging segment, the firm is scheduled to launch its first Android 3.0 tablet, Picasso, by the end of March, which, the firm`s Taiwan president Scott Lin confirmed, has been popularly ordered by retailers so far, according to the firm`s Taiwan president Scott Lin.
Acer Iconia Tab A500
AT&T Network to Support Acer’s High Performance,Android-Powered 4G Tablet [March 22]
10.1-inch, HD Ready, Android 3.0 4G Device Launching Q2 2011
Dallas, Texas, March 22, 2011
AT&T*, today announced plans to support Acer’s first 4G tablet, the Acer Iconia Tab A501, on the nation’s fastest mobile broadband network beginning this summer.
The 10 inch Acer Iconia Tab A501 will feature the Android 3.0 operating system with Android Marketplace, and an NVIDIA Tegra 250 1GHz dual core processor with integrated graphics for the fastest HD gaming, web and multimedia experience.
Designed for both consumers and small business customers, the tablet will also sport a high-resolution display with a wide viewing angle to view super sharp video and other multimedia content. It will come equipped with a 5 megapixel rear-facing camera, a high definition front-facing camera for video chat, and an HDMI port for playing 1080p video on a high definition big screen TV.
“Consumers are seeking cutting-edge mobile computing devices and we look forward to giving them another great choice with the Acer Iconia Tab A501,” said David Haight, vice president of business development, AT&T Emerging Devices. “This tablet is packed with features that will enable HD gaming and exceptional video playback. It offers a first-class on-the-go entertainment experience.”
“We are pleased to collaborate with AT&T on mobile solutions that allow consumers to remain connected and entertained in any environment,” said Sumit Agnihotry, vice president of product marketing, Acer America. “The Acer Iconia Tab A501 combined with AT&T’s wireless service enables consumers to enjoy their favorite movies, games, blogs and social networking sites on the go.”
Distribution and pricing will be announced at launch, expected in the second quarter.
Acer’s ICONIA TAB A100 [March 14]
Mobility at its best
2011-02-14 – Barcelona
Whether you are into gaming, social network or enjoying your multimedia on the go, the new Acer ICONIA TAB A100 is your dream come true. Stylish and compact, this 7” tablet offers unrivalled portability and matches it with the ultimate high performance, taking your mobile experience to the next level.
The Acer ICONIA TAB A100 primary focus is on providing a truly rich user experience. This is why it will be equipped with Android 3.0 “Honeycomb”, the new Android operating system specifically optimized for tablets. On the home page, resources are grouped into four main content usages, within easy reach of your fingertips:
- Games Zone: here you can find a variety of compelling preloaded games – online 3D, console and casual – that you’ll certainly enjoy.
- eReading, where you can find the tools you need to download or read magazines and books. Magazines with Zinio, books with Nook and LumiRead.
- Multimedia groups all the apps you need to enjoy music, videos and photos.
- SNS brings your social life together. Not only you can find the links to Facebook, Twitter, but also Acer SocialJogger that lets you check, post and update all of your accounts at a glance.
Also pre-loaded on the Acer ICONIA TAB is clear.fi, the Acer media sharing system that enables the seamless integration of the device in the home clear.fi environment to easily access, play and share multimedia across the home network and to instantly publish updates to social media networks.
To provide a truly outstanding user experience, a device must have a powerful engine. The Acer ICONIA TAB A100 will be powered the dual-core NVIDIA® Tegra™ 2, the first mobile dual core CPU, that delivers up to two time faster browsing, for the best web experience ever. Plus, the ultra-low power (ULP) NVIDIA® GeForce® GPU with Flash 10.1 support, ensures amazing graphics for optimized HD viewing, 3D and console-quality gaming, and multimedia playback anywhere. What’s more you can relish movies, photos and more on your big screen TV in full HD glory thanks to 1080p HD video playback.
Don’t be fooled by size of the screen. On this 7” (1024×600) full touch screen tablet with a 16:9 aspect ratio, you can enjoy photos, videos and movies as well as read books and magazines, and most impressively you’ll be able to run and play premium HD arcade games and complex online 3D games, thanks to the multi-touch screen and gyro meter control, for a gaming experience on par with the best consoles.
The Acer ICONIA TAB A100 is also a joy for the ears. Complete with Dolby Mobile technology providing rich vibrant audio with extended bass performance and added depth, this tablet takes the entertainment experience to a new level. To top off the rich entertainment experience, the ICONIA TAB A100 comes with a 5MP auto-focus rear camera, to capture you’re life best moments and quickly upload them to your social networks, and a 2MP front-facing camera to engage in live chat with your friends.
Multiple connectivity options, including Wi-Fi, 3G or Bluetooth® 2.1, maximise your mobile experience and keep you in touch with all you care about. Complete with a built-in HDMI port and 1080p output, it may also be used to enjoy HD content in full HD on a big screen TV or monitor, while a full-size and a mini USB help connecting the ICONIA TAB A100 to other devices.
Compact and stylish, is easy to handle and flaunts a trendy back cover embellished by an eye-catching pattern.
Discover a new world of interaction with the Acer ICONIA TAB A100!
Acer to Dismiss 10% of Employees in China [March 28]
To enhance operating efficiency of its PC business unit in China, the Taiwan-based Acer Inc., one of the world`s top three PC vendors now, is going to cut 10% of employees in the country, according to the firm.
Acer acquired the PC business unit from China`s Founder Technology Group for NT$120 million last August as a strategic move to penetrate the Chinese market. The strategy has worked, as the Taiwanese firm effectively pushed up its share to 8.6% to rank as the second-largest brand by overall PC sales in the market in the fourth quarter of 2010, only next to Lenovo. During the same period, the firm also ranked No.3 in terms of notebook PC sales.
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Top 5 PC Brands in China in Q4, 2010 Ranking Brand Market Share 1 Lenovo 30.10% 2 Acer 8.60% 3 Dell 7.20% 4 HP 7.20% 5 Asus 5.20% Source: Gartner
ASUS, China Mobile and Marvell join hands in the OPhone ecosystem effort for “Blue Ocean” dominance
Follow-up: First real chances for Marvell on the tablet and smartphone fronts [Aug 21 – Sept 25, 2011]
Information about China Mobile’s related efforts on this blog:
– OPhone OS (OMS) 2.0 based on Android 2.1 [July 5 — Dec 13, 2010]
– 3.9G TD-LTE rollout in 2012 with integrated 2G, 3G and 4G? [July 19 — Dec 14, 2010]
– Could China close the gap in mobile Internet? It should! [July 21 — Oct 21, 2010]
– IMT-Advanced (4G) for the next-generations of interactive mobile services, China is triumphant [Oct 24 — Nov 24, 2010]
– Cloud Computing Strategy for Digital China: Taiwan is leading the way except IOT [Nov 8 — Dec 30, 2010]
– Marvell beaten by Chinese chipmakers in sub 1,000 yuan handset procurement tender of China Mobile [Nov 15, 2010]
Follow-up: High expectations on Marvell’s opportunities with China Mobile [May 28, 2011]
Marvell and ASUS Team Up to Enable Mass Market Availability of TD-SCDMA Smartphones [Marvell press release, Feb 23, 2011] (emphasis is mine):
Marvell … today announced that ASUS has chosen Marvell as a strategic partner to launch a new series of TD-SCDMA (Time Division-Synchronous Code Division Multiple Access) smartphones in China. ASUS‘ new T10 and T20 series smartphones are powered by Marvell(R) PXA920 platform, the first commercially available single-chip solution which supports China Mobile’s latest version of OPhone OMS system. … delivers gigahertz speed, dynamic multimedia for mobile TV, live video, gaming and many exciting new applications, all to be unified by Marvell’s beautiful and easy-to-use Kinoma(R) software experience.
In fact there were additional three devices, T25, T60 and T Pad, as well. See the following Forbes blog article (and even more below, or a very detailed event report with plenty of photos in Chinese, or look at an English translation by Google):
Asus Brings Five Android [rather OPhone OMS, see later] Devices To China In Bid For Billions Of New Customers [Feb 23, 2011] (emphasis is mine)
On Thursday afternoon in Beijing, Asus plans to announce a wide-ranging partnership with China Mobile that will make four Asus smartphones and one tablet available to the carrier’s millions of customers.
The deal is the cornerstone of Asus’ newest strategy to boost its mobile devices business. Though Asus is widely known for its computer parts, laptops and netbooks, it remains a bit player in the global cellphone and smartphone markets.
The company hopes a tie-up with China Mobile, which is both China’s largest wireless operator and the world’s biggest carrier by subscribers, will raise its mobile profile. “China will be our biggest mobile market,” said Benson Lin, Asus’ head of mobile devices, in an interview. “China is very important to our future.”
The partnership will be something of a gamble for Asus. China Mobile, like all Chinese carriers, uses a unique technology standard (TD-SCDMA) for its 3G cellular network. That means the phones Asus is providing to China Mobile — known as T10, T20, T25 and T60 — can’t be offered to any other operator.
Lin said the potential is worth the risk. He declined to share specific sales goals, but noted that China Mobile currently has nearly 590 million subscribers. Capturing 10% or even just 5% of that audience is “still a huge number,” he said.
Though all handset makers are interested in China, many are waiting for the country to upgrade its networks to the 4G technology LTE, said Lin. Asus believes it will benefit from forging a relationship with China Mobile now, when other phone vendors “aren’t paying attention,” added Lin. Europe is currently Asus’ largest mobile market, but Asus anticipates China will replace it soon.
The opportunity has pushed Asus to customize its “T” series of phones to Chinese tastes. Instead of automatically connecting to Google for browsing, the devices will link to the popular Chinese search engine Baidu. And instead of Facebook, they will access the Chinese social network RenRen.
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All of the T phones run on the 2.0 version of China Mobile’s Ophone operating system, which is a variant of Google’s mobile platform, Android [not a variant since it has a Linux core and another user interface, as the most different aspects, but compatible with Android through source code reuse – see much below]. They also utilize special processors from California-based chipmaker Marvell. The design, which combines a CPU and modem on a single chip, is more affordable, efficient and compact than systems that use two chips, said Lin.
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Developing the T phones took a year and a half of intense development at Asus’ Taipei campus, said Lin. Asus already has some phones in the Chinese market, but they are at a smaller carrier, China Unicom, which uses a different 3G standard called WCDMA.
Asustek to sell new line of smartphones through China Mobile [Feb 25, 2011] (emphasis is mine)
Designed specially for the TD-SCDMA network in China, this chip [the PXA 920] will help bring down the cost, size, and power consumption of Chinese mobile devices, Asustek said in a statement by email.
“The information technology industry is turning from personal computing to cloud computing, and mobile phones are expected to become the most important cloud computing devices due to a wide range of applications,” Asustek chairman Jonney Shih said in the statement.
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This type of industry collaboration [with China Mobile and Marvell] represents a shift in Asustek’s strategy for its smartphone line. Last October, Asustek, which had been selling smartphones under the Garmin-Asus brand since early 2009, said it would not introduce any more co-branded handset models.
Media reports estimate that China Mobile will purchase a total of 12.2 million TD-SCDMA-based handsets this year. This includes 4 million phones designed for entertainment use, 3.2 million multi-media smartphones, 3.2 million entry and mid-level smartphones, 1.5 million high-end connected devices, and 300,000 dual-network phones.
ASUS Four New TD-SCDMA Smartphones in China [Feb 27. 2011]
The ASUS T10, T20, T25 and T60 smartphones are powered by an 806MHz Marvell PXA920 processor and known as the world’s first single chip supporting TD-SCDMA. These new handsets are utilizing a Marvell Avastar 88W8787 chip for enabling Wi-Fi 802.11b/g/n, Bluetooth 3.0, and FM radio.
ASUS T10 smartphone has a 3.2-inch resistive touchscreen display with resolution of 320 x 480 (HVGA), 5-megapixel autofocus camera, front-facing camera for video calls, 512MB RAM, 512MB ROM, MicroSD card slot, and GPS.
The ASUS T20 similar the T10 handset, but it has 3.2-inch capacitive touchscreen display, TV tuner, CMMB and a more powerful battery. The Asus T25 comes with a 3.5-inch display, while the Asus T60 feature a 4-inch display.
Beside that, ASUS has also showcased the fifth handset that sports a 4-inch screen and support 4G TD-LTE network. All five smartphones are running on OPhone OS 2.0 which modified version of Android 2.1.
Marvell PXA920 Mass Market Smartphone Communication Platforms [Feb 17, 2011] (emphasis is mine)
The Marvell® PXA920 communication platform [also called Pantheon platform elsewhere, see the same Pantheon Platform Brief [Feb 17, 2011] as well] is an advanced, highly integrated 3G platform for multimedia-centric handsets. The PXA920 platform solutions incorporate the performance of Marvell’s mobile application processor with Marvell’s mature and proven 3.5G technology to provide low-cost Linux™ and Android™ handset platforms. The combination of Marvell’s advanced, high-performance, low-power application processor technology with Time Division Synchronous Code Division Multiple Access (TD-SCDMA)/High Speed Downlink and Uplink Packet Access (HSxPA)/Enhanced Data for GSM Environment (EDGE) communication support for next-generation cellular services enable breakthrough end-user experiences for imaging, HD video, music, games, and other popular handset applications.
With Marvell’s 3G technology, seamless wireless connectivity, application processing, and support for next generation cellular data services — the new PXA920-powered smartphones offer exceptional performance for browsing, instant live video, access to personal music, 3D gaming, and other popular handset applications at attractive price points. The PXA920 supports Android and other major mobile operating systems (OS).
Tri-core, Shared Memory Hardware Architecture
- Dedicated Modem and Applications Processor Cores
– Modem RISC Core: Marvell-designed ARM9 [their pre-Sheeva core] with packet processing accelerators and L1/L2 caches
– Modem DSP Core: Micro-Signal Architecture VLIW DSP core with L1/L2 caches
– Marvell [Applications] CPU Technology with ARMv5 core [Sheeva PJ1 core, which is the less performant synthesizable Sheeva core, see: Marvell ARMADA beats Qualcomm Snapdragon, NVIDIA Tegra and Samsung/Apple Hummingbird in the SoC market [again] [Sept 23, 2010]] supports up to 806 MHz operation (1130 DMIPS)- Shared External Memory Interface
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Multimedia (video, 3D, audio, imaging, display)
- Video Playback 720p at 30 fps for H.264, WMV, MPEG-4, H.263; Video Capture D1 at 30 fps for H.264, WMV, MPEG-4, H.263
- 3D Graphics capability up to 10Mtriangle/s sustained and 20Mtriangle/s at 50% cull rate; Integrated 2D accelerator; Supports industry standard APIs.
- Marvell’s unique Audio Accelerator Subsystem offers low power audio playback via audio streaming
- Image Sensor support for primary and secondary smart image sensors with MIPI CSI-2 and parallel interfaces; Supports one MIPI-CSI2 serial interface
- LCD Controller supports parallel LCD displays over an 8/16/18-bit parallel smart panel interface or a 16/18/24bit parallel active matrix interface with sync signals; Primary/secondary display supports up to 4 simultaneous overlays with base + rotation scaling
All details about Marvell’s System-on-a-Chip (SoC) products and related strategies on this blog:
– Marvell ARMADA beats Qualcomm Snapdragon, NVIDIA Tegra and Samsung/Apple Hummingbird in the SoC market [again] [Sept 23, 2010 — Jan 17, 2011]
– Marvell ARMADA with sun readable and unbreakable Pixel Qi screen, and target [mass] manufacturing cost of $75 [Nov 4, 2010 — Jan 11, 2011]
– Marvell beaten by Chinese chipmakers in sub 1,000 yuan handset procurement tender of China Mobile [Nov 15, 2010]
– Marvell to capitalize on BRIC market with the Moby tablet [Feb 3, 2011]
– Kinoma is now the marvellous software owned by Marvell [Feb 15, 2011]
Blue Ocean Strategy [Wikipedia] (emphasis is mine, see also: What is Blue Ocean Strategy? Ten Key Points) 
Blue Ocean Strategy is a business strategy book first published in 2005 and written by W. Chan Kim and Renée Mauborgne of The Blue Ocean Strategy Institute at INSEAD. The book illustrates what the authors believe is the high growth and profits an organization can generate by creating new demand in an uncontested market space, or a “Blue Ocean”, than by competing head-to-head with other suppliers for known customers in an existing industry.
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Unlike the “Red Ocean Strategy”, the conventional approach to business of beating competition derived from the military organization, the “Blue Ocean Strategy” tries to align innovation with utility, price and cost positions. The book mocks at the phenomena of conventional choice between product/service differentiation and lower cost, but rather suggests that both differentiation and lower costs are achievable simultaneously.
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The authors criticize Michael Porter‘s idea that successful businesses are either low-cost providers or niche-players. Instead, they propose finding value that crosses conventional market segmentation and offering value and lower cost. Educator Charles W. L. Hill proposed this idea in 1988 and claimed that Porter’s model was flawed because differentiation can be a means for firms to achieve low cost. He proposed that a combination of differentiation and low cost might be necessary for firms to achieve a sustainable competitive advantage.
China Mobile 2010 Interim Results [Aug 19, 2010]
China Seeks Blue Ocean Dominance in Mobile Internet [Borqs company news, Jan 8, 2011]
China Mobile is striving for blue ocean dominance in China’s mobile Internet, during which, the launching of OPhone has become an important milestone. At a recent conference, Xi Guohua, Vice Minister of Industry and Information Technology of China, recognized the development and achievements of OPhone over the past two years since its birth, and expressed his wish for introducing OPhone to the global market.
… the mobile Internet is the largest breakthrough innovation in the communication industry in the 21st century. Those who have dominated any blue ocean of the industry will obtain the greatest benefits and lasting advantages. The strategy and development of the mobile Internet is essential to China if the country wants to win an appropriate industry position and take the power to reshuffle the communication industry.
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With the help of iPhone, China Unicom has achieved great market performance in a very short time. However, the success of iPhone attributes more to the worship of Steve Jobs by millions of Apple fans than to the product innovation of Apple. … China Unicom has no say on iPhone and has not entered into any cooperation in technology during the cooperation with Apple. Therefore, in my view, a great risk may sneak in the success of iPhone since China Unicom rests its market on a single product from its partner. This is almost against the “Blue Ocean Strategy” of the mobile Internet industry.
Quite differently, China Mobile has avoided this dependency relation wisely. Based on Android, an international advanced operating system, it develops a technical platform within its control, further cooperates with upstream and downstream vendors, and creates a global system featuring complete industrial chain with its advantage of leading position in user base. That is the origin and development strategy of OPhone.
Talking about OPhone, Mr. Li Yue, new President & CEO of China Mobile, defines the company’s short-term strategy as “Giving priority and building quality in par with competitors”. This strategy reveals the correct attitude and understanding of China Mobile in terms of the development of OPhone: The exclusive support policy used in China before shall be thoroughly abandoned to help OPhone become a powerful weapon for controlling mobile Internet. With priority given, OPhone must be built with the same and even higher quality than its competitors. OPhone, from its version 1.0 to 2.0, is reported to undergo an extensive rage of development and test in the aspects of web data processing, multimedia performance, graphic/entertainment performance, and full-range service processing. For China Mobile, whether mobile Internet is the “last ocean” in the communication industry remains unclear. But I believe that we will never act before it’s too late.
Guided by the idea of “Giving priority and building quality in par with competitors”, OPhone is breaking the monopoly of iPhone in mobile Internet. Thus, our understanding of mobile Internet is experiencing slight changes. … mobile Internet users have no real “loyalty”: they have switched to iPhone from Blackberry today, and in future they may again switch from iPhone to OPhone. Sticking to the strategy proposed by President Li , OPhone will substitute for iPhone, and easier to use. Openness is the key to realize these two advantages. The first character “O” of “OPhone” does stand for “open”.
Other strategy related communication of relevance from the new CEO Li Yue:
– China Mobile chief not optimistic on industry’s growth [Nov 18, 2010] (emphasis is mine)
“There are some who think the increase in data usage will lead to growth, but I am not so optimistic,” Li said at the GSMA Mobile Asia Congress conference in Hong Kong yesterday.
The head of the world’s biggest phone carrier by market value said operators need to offer services that integrate well with the daily lives of consumers and businesses.
Li is adding services such as a search-engine for mobile phones and wireless payments to sustain growth at China Mobile, where he took over as chief executive this year.
– New China Mobile CEO builds bridges [Nov 17] (emphasis is mine)
There is a big opportunity for mobile operators to act as the bridge between different partners within the telecoms space and between the telco industry and others, and future revenue is to be found in penetrating the daily lives of mobile users, according to the new man at the helm of the world’s largest mobile operator, China Mobile.
“The mobile market will become the future channel for all walks of life,” said Li Yue, president and CEO of China Mobile, in his first international keynote speech since taking over at the telco in August.
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He also highlighted some of China Mobile’s new services, including the mobile reading offering launched by the telco in May. The service has attracted more than 30 million users, and now has 6 million paying customers, Li explained.
In a bid to drive mobile data services forward, China Mobile has created a platform to engage with content creators and partners, including a pool of terminals and operating systems to aid applications developers. The company believes it can create a “win-win situation” in the mobile marketplace, where all members of the value chain benefit.
China Mobile aims to be “a bridge with all suppliers… and also a hub,” said Li, adding that the telco is working on signing up more partners.
“[The mobile Internet] is changing our traditional ecology as a mobile operator,” said Li, since it has changed the way end users collaborate. And changing customer behaviour provides “a lot of opportunities” for mobile providers, he said.
Those opportunities also include vertical markets.
“[We will] try whatever possible to penetrate into all kinds of industries,” said Li. “We are the connecting bridge with all kinds of industries.”
Related development: Government Drives New Chinese Search Engine [Feb 24, 2011]
Transcript by http://www.newsy.com
BY KELSEY WAANANEN
You’re watching multisource tech video news analysis from Newsy.
If you want something done right, you have to do it yourself. That seems to be China’s approach to the Internet. State-owned news agency Xinhua and state-owned China Mobile – China’s largest phone carrier – are teaming up to run Panguso – China’s newest – and government-approved search engine.This joint venture was announced last summer – right after Google decided to pull out of China because the search giant refused to continue censoring material. A CBS report details the repercussions of Google’s departure.
“Now when users in mainland China go on to use this site, like this, they’re automatically redirected to a different site based in Hong Kong, where Google isn’t legally required to censor itself. … China’s own filter, known as the ‘Great Firewall of China’ is still at work screening out sensitive material. In fact there are concerns that China could now clamp down even harder…”
And it certainly looks like they have. In terms of just what Panguso is leaving out, PC Magazine notes…
“According to Panguso, Nobel Peace Prize Laureate Liu Xiaobo doesn’t exist. The same is true for the People’s University in Beijing, the first university founded after the 1949 communist revolution. “Dalai Lama” returns only tourism sites or state-sponsored criticism.”
But Panguso isn’t the only search engine on the market. Baidu, the current prominent search engine, accounts for more than 75 percent of web searches. But as TMCnet notes, Panguso offers a platform that Baidu doesn’t.
“…Baidu only controls about 36 percent of the mobile search market. By partnering with China Mobile, Xinhua may soon have a leg up on its competition in the mobile space.”
But a blogger for Download Squad suggests the Chinese government might have an ulterior motive — trying to get a slice of the search engine market.
“China already has a very strict policy on censoring politically-sensitive material, which Baidu strictly abides by — so unless it wants to further extend its control of information inside its borders, why would the Chinese government be interested in offering an alternative?”
According to Xinhua, the search engine will primarily focus on news for now. Xinhua will provide the news content — and China Mobile – the mobile subscriber base.
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Transcript by Newsy
ASUS Joins Hands with China Mobile to Launch ASUS TD Smart Phones [Borqs company news, Feb 28, 2011] (emphasis is mine)
On February 24th, ASUS held the ASUS TD Smart Phone Launch & Strategy Press Conference jointly with China Mobile and Marvell in Beijing. At this conference, the strategic cooperation of ASUS with China Mobile and Marvell has become the industry focus in addition to the launch of new TD smart phones and a TD slate.
Distinguished attendants at the conference include Mr. Wang Jianzhou, Chairman of China Mobile, Ms. Li Huidi, Chairman Assistant, Mr. Wu Wining, General Manager of Terminal Business Department of China Mobile, Mr. Huang Xiaoqing [also known as Bill Huang], President of the Research Institution of China Mobile, Mr. Shi Chongtang, ASUS President, Mr. Pat Chan, President & CEO of Borqs (accompanied by some other vice presidents of the company), and Ms. Dai Weili, President of Marvell.
Mr. Wang Jianzhou, Chairman of China Mobile, comments that China Mobile is very pleased to work with ASUS for the TD industry; since the emergence of this industry, terminal vendors have helped drive China’s TD industry. All terminals launched by ASUS at this time use OPhone OS and Marvell’s chips with significantly reduced costs, meeting the demand of China Mobile for low-price smart terminals. Also, Chairman Wang says that China Mobile will promote TD terminals this year, and purchase middle- and high-end TD terminals following its purchase of middle- and low-end TD terminals in 2010, bringing more choices to consumers.
At this conference, ASUS launches five new TD-SCDMA smart phones, including T10, T20, T25, T60 and TD-LTE, and one TD slate [TD Pad]. Based on the latest OPhone OS, these products adopt Marvell PXA 920 – the first TD-SCDMA single chip solution in the industry as core processor. TD smart phones with a single chip-based processor feature a slim body, high efficiency, and low price. By applying single chip solution into TD smart terminals, ASUS has maintained a benign partnership with Borqs and Marvell. This helps them meet the market demands for both quality but price. Furthermore, ASUS has become the first TD smart phone manufacturer applying single chip solutions in the world.
China Mobile has maintained a good share in China’s communication market and a great potential in OPhone OS system. This may be the main reason that ASUS has chosen to partner with it. As an open operating system developed by China Mobile, OPhone OS allows users to create personalized interfaces and install applications upon their demands, delivering users the operating experience of “My phone, my decisions”. By empowering mobile terminal products to deliver innovative, easy-to-use applications and enhanced experience, OPhone OS is a better choice for Chinese users.
The joining of ASUS has further expanded China’s TD camp, signifying a brand new beginning in the TD-SCDMA industry between the Mainland and Taiwan. This will promote and expand the development of the TD industry and OPhone-based terminals, also showcasing ASUS’s robust competitiveness in the Mainland market.
Borqs OPhone OS Roadmap [Feb 2011]
Greatest Shanzhai may prove to be an OS, not a handset [March 2, 2011] (emphasis is mine)
OMS is based on the Linux Kernel, and uses Android source code and integrated Java application framework to provide a complete software platform for application developers and users. … OMS is the first Android customization project where the developer (China Mobile and partners like Borqs) customized the entire user interface and applications of Android for a non-English language (in this case, Chinese).
… In a short span of time, China Mobile has been able to rope in the world’s leading mobile manufacturers to launch smartphones in China based on OPhone mobile OS. Motorola, LG, Philips, Dopod, Lenovo, ZTE, Samsung, and Sony are just a few of the distinguished makers of China Mobile’s OPhone range.
The extensive range of phones running the OPhone OS, based on the OMS platform, supercharged the 3G business and value added services of China Mobile. The OPhone OS, although it’s a variant of Android, doesn’t support Android Market; however, it has been tailored to include a built-in mobile app market called Mobile Market (MM), and other exclusive applications like Flying Letters, 139 Email, wireless music players and many more value-added services.
China Mobile is happy with the progress of the OPhone OS and unlike the rumors of it being shelved [see: China Mobile’s Ophone is Dead [Dec 16, 2010]], they have plans to provide new upgrades in 2011. Lu Zhihu, a deputy director at the China Mobile Research Institute, confirmed new updates at the 2010 International Mobile Internet Conference in Beijing. Version 2.5 will be out somewhere in February or March 2011 and version 3.0 later in 2011, with advanced features like voice recognition and better connectivity to mobile services.
China Mobile’s partner, Borqs, has already rolled out an international version of OPhone, which has been used by Dell and will run on AT&T. China Mobile has also established an industry alliance, the OPhone Innovation Alliance, to encourage developers and manufacturers to the OMS platform and OPhone OS. Rumor has it that China Mobile now want to show more convergence with Papa Android and they are planning to bring support for Android Market and many Android features into future releases to attract more users.
Important and quite illustrative information about the significant user interface improvements in 2.0 version:
Mobile OPhone2.0 design documents Exposure: compatible Android2.1_China Mobile China Mobile G3 / TD-SCDMA [June 4, 2010]
All other details about Ophone (OMS) on this blog:
OPhone OS (OMS) 2.0 based on Android 2.1 [July 5 — Dec 13, 2010]
Asustek announces 4 TD-SCDMA smartphones [Digitimes, Feb 24, 2011] (emphasis is mine)
… and the Taiwan-based company noted that it will participate in telecom carrier China Mobile’s open bid for TD-SCDMA handsets in February with result announcement scheduled for April.
The smartphone launch marks Asustek’s first foray into the TD-SCDMA segment. The devices include the T10, T20, T25 and T60. At the press event, the company also showcased a TD-LTE smartphone, and indicated it plans to incorporate TD-SCDMA modules in its tablet PC for China Mobile networks.
Asustek’s TD-SCDMA line is based on the Marvell 920 chip. The T10 is Ophone OS 2.0 enabled.
AsusTek Announces New Handsets, Partnership with China Mobile [Feb 25, 2011] (emphasis is mine)
Taiwan’s AsusTek Computer Inc announced a strategic partnership with China Mobile in Beijing on Feb. 24 while unveiling several customized products for the Chinese telecom operator.
At a press conference, AsusTek launched five smartphones and one tablet computer, using the Chinese time division-synchronous code division multiple access (TD-SCDMA) standard for mobile communication, with China Mobile chairman Wang Jianzhou attending the event.
This is the first time that Wang has taken part in such a product launch, which market observers viewed as a move by China Mobile to show the importance of its cooperation with AsusTek.
Wang’s presence was also seen as a positive sign for the Taiwan company, which made a bid with three of its models — the T20, T25 and T60 — in response to China Mobile’s announcement on Feb. 23 that it wanted to place orders for 12.2 million smartphones.
While China Mobile is not expected to announce its decision on suppliers until April, Wang said that the company plans to purchase more high-end smartphones to offer better options to its customers using third-generation (3G) mobile services.
Meanwhile, Benson Lin, general manager of AsusTek’s hand-held devices business, said that the company’s T-10 smartphone will make its debut on the market in March.
China Mobile to procure over 10 million TD-SCDMA handsets [March 2, 2011] (emphasis is mine)
China Mobile will announce suppliers in the second quarter, with large shipments slated for the second half of 2011, the sources indicated.
China Mobile had previously placed more emphasis on low-end smartphones since international handset vendors lacked higher end devices supporting the TD-SCDMA platform. Smartphones represent less than 20% of China Mobile’s revenues versus 40% for China Unicom and more than 20% for China Telecom, according to the sources.
Since China Mobile plans to procure higher-end TD-SCDMA handsets this time, both international and China-based vendors will see orders, unlike last round of procurement when China-based companies dominated the mainstream segment.
…
Both Taiwan’s HTC and Asustek Computer have already formed strategic alliances with China Mobile, the makers said, adding that the two companies should receive orders as long as their pricing and specifications match the procurement criteria.
Marvell Technology Group’s CEO [dr. Sehat Sutardja] Discusses Q4 2011 Results – Earnings Call Transcript [Seeking Alpha, March 3, 2011] (emphasis is mine):
Last year, we introduced the PXA920 [see: Marvell Drives $99 Smartphones to Market With New Pantheon Platform [Feb 12, 2010] and Marvell Empowers Mass Market TD-SCDMA OPhones with PXA920 Chipset [Sept 8, 2009]]. 920 is a single-chip solution enabling mass-market availability of high-end TD smartphone markets specifically to the China market. These solutions that we provide includes a modem, application processor, management and RF devices. We are the first and only suppliers in the world with the complete high-performance TD smartphone solution for this market.
…
At the Mobile Congress last month, we announced the follow-on of the 920 device. The 978 [PXA978] device is a single-chip solution of TD-SCDMA but now is combined with rigorous performance and advanced 3D graphics and 1080p multimedia, as well as the traditional 3G UMTS release [indiscernible] solution to address the requirements of the rest of the world. With these new solutions, cellphone OEMs will now no longer need to design separate development platforms to accommodate different wireless standards for the rest of the world and China. And they will be able to target markets around the world saving at the same time in development cost.
Now hopefully, you can see how our TD platform strategy unfolding. The 920 introduced last year initially targeted TD high-end and as well as medium-end smartphones. However, over time, as we reduce cost of the silicon, the wafers that used to build the 920, this platform will quickly transition to low-end and high-volume smartphones replacing the feature phones, which is the sweet spot market for many of the smartphones in this market. While the 978 will emerge as the new high-end TD-SCDMA phone, as well as high-end global phone.
… At Mobile World Congress, we, Marvell, introduced Kinoma, a software platform that is dedicated to dramatically transform the consumer interactions with electronic devices. Kinoma is a new foundation for creating and delivering fast, simple user experience for a wide range of devices and offers an experience and solution that is truly integrated of silicon to applications, creating new opportunities for OEMs and manufacturers.
…. Last year, when they [China Mobile] introduced the first-generation OPhones, the first-generation OPhones were selling for $300, $400, even $500, U.S. dollars. … In contrast, today, the 920 devices … are high-end smartphones targeted for prices the range of $100 to $150 smartphones. So now, we just need to figure out. The time will tell what will be the difference in the volumes of the TD smartphones when it’s priced between $100 to $150 versus when it was priced at $300 to $500.
Update: The PXA920 opportunity was realized only in September 2011, two years later than the September 2009 launch. See:First real chances for Marvell on the tablet and smartphone fronts [Aug 21, 2011]
ARM at MWC 2011 with Marvell – Kinoma [Feb 25, 2011]
All details about Kinoma on this blog:
Kinoma is now the marvellous software owned by Marvell [Feb 15, 2011]
Marvell Announces First ‘World Phone’ Single Chip Solution: 3G TD-SCDMA Baseband Combining High Performance 1.2 GHz Application Processor with Advanced 3D Graphics and 1080p Multimedia [Feb 14, 2011] (emphasis is mine)
Marvell (Nasdaq: MRVL), a worldwide leader in integrated silicon solutions, continues to build on its heritage of mobile communications innovations with the announcement of its world phone platform based on the Marvell® PXA978 communications processor with Marvell HSPA modem. Marvell’s PXA978 is the industry’s first single-chip solution to feature 3G UMTS (Universal Mobile Telecommunications System) and China’s TD-SCDMA (Time Division Synchronous Code Division Multiple Access) standard with HSPA (High-Speed Packet Access) support and is intended to enable mobile developers to design 3G cellular devices and tablets that can be used and supported globally.
“… It’s truly amazing that a tiny chip like the PXA978 integrates both 3G and TD-SCDMA basebands, a powerful application processor, all advanced 3D graphics capability, with a very low-power profile and affordable cost structure ideal for mobile devices, such as smartphones and tablets,” said Weili Dai, Marvell’s Co-Founder. “With the addition of Kinoma‘s elegant and intuitive software experience and integration of cutting-edge mobile technologies, Marvell has enabled the entire ecosystem – in both its depth and breadth – to convert conventional cell phones into multi-functional mobile gadgets ideal for gaming, video chatting, live news, and more. This small device has the potential to make a huge impact on our world. I envision that a true world phone will transform the global economy by lowering the cost and barriers to entry for billions more consumers and innovators.”
Unlike current technology on the market, the Marvell world phone development platform is the world’s first and only available solution of its kind featuring R7 3G UMTS and TD-SCDMA with HSPA. Additionally, the platform will feature the industry’s first Mobile MIMO, Avastar(TM) 88W8797, an 802.11n 2×2 dual-band Wi-Fi SoC designed to support high data rates for next-generation mobile devices.
Original equipment manufacturers (OEMs) no longer need to design separate development platforms to accommodate different wireless standards and target markets around the world, saving months of design time and cost. Instead, they can focus on creating a wide portfolio of 3G UMTS supported phones that can be used globally with other UMTS carriers worldwide – all based on a single development platform.
…
Marvell’s PXA978 single chip solution uses advanced 40nm process technology and is designed to deliver 3G TD-SCDMA baseband combining high performance 1.2 GHz application processor with advanced 3D graphics and 1080p multimedia, ensuring a feature-rich, fast and exceptionally smooth user experience. Additionally, the processor’s extremely high power efficiency and true multitasking capabilities is intended to enable OEMs to design mobile devices that represent a significant leap beyond today’s most advanced smartphone and tablet devices. The platform will support all leading OS platforms.
Pixel Qi’s first big name device manufacturing partner is the extremely ambitious ZTE
Latest update: ZTE Light Tablet with Pixel Qi screen [June 3, 2011]
While this is not yet with the anti-glare anti-reflective coating and the reflective mode for touch is not yet implemented in this ZTE sample, this is how the ZTE Light with Pixel Qi might look like, the fully optimized version should be shipping in the third quarter [end of Q3] of this year.
(See also: Pixel Qi solar powered [June 3, 2011] and Shizu Pixel Qi Tablet shown at Computex 2011 [June 3, 2011])
++ Pixel Qi Joins with Shanghai Shizhu Technology to Develop a Family of Multimedia Devices Based on Pixel Qi’s Low-Power, Sunlight-Readable Displays [Oct 9-13, 2011]
Leveraging Pixel Qi’s technology, four tablets will be launched for China’s growing e-reader market, and are being shown at GITEX in Dubai. Combining Pixel Qi’s displays with Shizhu’s design creates an excellent multi-media experience in a slim, lightweight design with extended battery life. Shizhu has a key partnership with Southern Media Group, whose paper publications reach millions of subscribers daily, and whose media set the pace for investigative journalism, popular and gossip content, and online presence in China.
(See also: Content Really Matters for Tablets [Mary Lou Jepsen’s blog, Oct 12, 2011])
Latest update: Pixel Qi launches 10.1″ super thin 1280×800 screen [May 31, 2011]
Here’s a new comparison between Pixel Qi and the iPad followed by Mary Lou Jepsen’s status report on the latest Pixel Qi news, their first showing of the new 1280×800 thinner 10.1″ wide view screen.
[10:20 — 10:25]:
“We think our technology will be the dominant display technology in 5 years.”
[11:17 — 11:41]:
“It’s bit market driven from our customers because we get to exist and to engage some of the largest factories that have ever been made, and for that to work their economics need very high volumes. We need to have customers who really commit to large purchase orders almost before we start to design.”
See also: Mary Lou Jepsen of Pixel Qi at TEDxTaipei [May 9, 2011] (emphasis is mine)
Also watch: John Ryan COO of Pixel Qi and John Watlington Vice President of Hardware Engineering at OLPC
You have to consider, while it has been 23 months ago that I [i.e. Charbax] published my first Pixel Qi interviews from Taiwan (2), (3), (4), (5), (6), (7), (8), (9), (10), (11), (12), (13), (14) while that might sound like a long time, in the display industry, 2 years is peanuts. Things move rather slowly there. Since then, there has been an economic crisis and a sort of re-focus from netbooks to tablets, although netbooks have sold more than 100 million units in 3 years, the display investments are focused on tablets. The display business can be considered to be the worlds biggest non-profit industry, the 5 biggest LCD makers who produce 90% of the worlds LCDs, produce for $120 Billion in screens every year but can only make small profit margins out of that because of the strong competition and the large volumes shipped. Those companies that produce the worlds LCD screens have very high costs, very high risks, little flexibility. Let’s hope Pixel Qi has amply well convinced the big LCD makers like Quanta, CPT, Chi Mei, Samsung, LG, Sharp, Sony, Foxconn, let’s hope that they have all signed with Pixel Qi and that they are all right now in the process of tuning the mass manufacture of millions of these screens for all the worlds upcoming Chrome OS notebooks, ARM Powered Macbooks, Kindle4s, iPad3s, a solution for using the interactive UIs of Android on all the worlds e-readers. It would also be nice to double the battery runtime and improve outdoor readability on all the worlds Smartphones using Pixel Qi.
On Mobile World Congress 2011 the Chinese ZTE Announces Smart Terminal Strategy Aiming At the Middle-to-High-End Markets [Feb 15] (emphasis is mine):
The smart terminal strategy signifies ZTE’s accelerated move to embrace the middle-to-high-end markets, while demonstrating its commitment to offering an entire range of star products in the smart device market. The product portfolio will span from smart personal devices to smart home and business products. Currently very few companies in the industry can offer smart products in all three categories.
…
The latest IDC report shows that ZTE was among the top five in the world in terms of the sales volume of handsets in 2010. According to analysts, ZTE’s previous terminal strategy focusing on middle-to-low-end products obviously no longer fits with the current competition landscape and the company’s own position in the industry.
ZTE, with its dominant presence in the smart terminal arena and deep understanding of smart technologies trends, has been increasing its investment in this field. In the last two years, it has become a mainstream player in the global smart terminals markets with the introduction of star products including the first WM6.5 smartphone, Bluebelt 2, the Blade Android smartphone, and the Light tablet PC. The great performance of the Blade in high-end markets including Europe and Japan has also proved its operational ability in the smart products market.
Smart terminal devices at MWC 2011
ZTE is showcasing an entire range of smart terminal products to the industry at this year’s Mobile World Congress, including the Skate Android smartphone with its 4.3-inch super-large screen, the Amigo Android slide-cover phone specifically designed for young and fashionable users who like social networking; the Blade Android smartphone and the Brew MP handset, the F952, which is based on the WAC (Wholesale Applications Community) standard, as well as the Rugged Blade which incorporates “three proof” (dustproof, waterproof, and shockproof) functionality.
ZTE also showcased the Light series tablet PCs – including the 7 inch Light which is popular in Europe, Australia, and Russia, the Light 2 which will be the first tablet that uses the Pixel Qi’s sunlight-readable liquid crystal screen and DOLBY sound system technology, and the Light 10-inch, which features a faster processor, supports Android 3.0 and will be launched in Q3 2011.
In addition, with the Internet TV Box, ZTE is able to integrate TV as a consumer electronics product for home use into the camp of smart terminal products as it uses multiple Internet access modes including 3G, HSPA+ and WiFi to make it a novel integrated terminal combining Web surfing, HD movies, video calls, gaming, and DLNA at the same time.
Latest update: Pixel Qi launches new displays at Computex [May 19]
At Computex 2011 we will show two new additions to our family of sunlight-readable low-power displays. Both the new 7″ display (1024×600 resolution) and the new 10″ display (1280×800 resolution) build on Pixel Qi’s award-winning technology delivering excellent rendering of multi-media and e-reader content under any conditions – and at a power savings of up to 80% over conventional LCDs.
Latest update: Pixel Qi takes aim at Android tablets with higher-res 10-inch and 7-inch reflective LCDs (hands-on) [May 31, 2011]
… the team has returned to Computex with the 7-inch (1024 x 600) panel that was teased in December last year and a new higher resolution 10-inch (1280 x 800) panels offering an 80 percent power savings over conventional LCDs, according to Pixel Qi. In fact, the 10-inch panel consumes just 2.7W in color mode or 0.4W in reflective “eReader” mode.
We had the chance to see the new displays up close here at Computex and were immediately struck by the improvement in pixel density on the 10-inch panel. Making the leap to WVGA has been a major boon, as identical images looked sharper and better-defined than on the 1024 x 600 current-gen Pixel Qi display. The brightness on the new screen is lower than on its predecessor, but that’s because the company still hasn’t finalized things — we’re promised significantly better readability with the backlight off in the final product and brighter pictures when it’s on. The 7-incher, originally intended for mass production in the second quarter will now sample in Q3, to be followed by the more pixel-dense 10-inch model, which will hit production in Q4. Scope out the newness in the gallery below or jump past the break for video.
This is extremely good news for Pixel Qi trying to pursue device manufacturers to use its outstanding screen technology for more than a year already. Their press release is quite proud to announce that ZTE introduces 7” Tablet PC with Pixel Qi’s Sunlight Readable Low Power Display [Feb 14] (emphasis is mine):
Leveraging leading edge technologies from both companies, the Light 2 tablet combines the features and performance of a 1GHz processor running the Android operating system with a 7-inch high-resolution Pixel Qi display to offer an excellent multi-media experience in a slim, light weight design with extended battery life.
“We are excited to partner with Pixel Qi to bring their innovative display technology to market,” said Adam Zhang, VP & President of ZTE Mobile Broadband Device. “It brings a new level of performance to our family of tablet PC’s, rendering excellent images under any light conditions.”
“Working with ZTE, a world-leading telecommunication company with a global customer base, provides us with an extraordinary opportunity to address a world-wide market,” added Dr. Mary Lou Jepsen, CEO and founder of Pixel Qi. “We look forward to a long-lasting partnership.”
The display is manufactured in a Pixel Qi partnership with CPT (Chunghwa Picture Tubes Ltd.). Based in Taoyuan, Taiwan, CPT manufactures nearly 40 million displays per month and is the #2 manufacturer of small and middle sized LCDs in the world. [See more on that in my post Pixel Qi and CPT alliance for sunlight readability [Dec 22, 2010]]
The ZTE Light 2 tablet PC features a 12.6mm super slim design, Android 2.2, a hi-speed 1GHz processor and 4GB of memory. The 7-inch low-power Pixel Qi display has multi-touch capacitive touch screen and a screen resolution of 1024×600 pixels delivering a pixel density of 170 pixels per inch.
Pixel Qi’s award-winning 3Qi display technology renders quality full-color images plus full-motion video and, in high ambient light levels, its reflective mode contributes to the image allowing the backlight to be turned down or off. This delivers significant power savings and a very comfortable reading experience.
Update: Why Amazon Will Enter the Overcrowded Tablet Market [May 23, 2011] (emphasis is mine)
In a recent interview with Consumer Reports, Amazon CEO Jeff Bezos was asked if Amazon would make a tablet. He coyly responded with the comment “stay tuned” but gave no other specific details about a product of this nature. He basically confirmed, however, that something like this was in the works. He also pointed out that if Amazon made a tablet device, the reading experience would be at the center of its design.
My sources in Taipei say that the actual product is set to debut in time for the holidays and that the device will use a display similar to the one in the Nook and the Galaxy Tab. They also tell me that the original RFQ wanted a screen that could switch between an easy-to-read black and white E Ink-like display and a color LCD, but that this type of screen, which is already in the works by at least two vendors, will not be ready for the market until at least 2012 or early 2013. So Amazon was forced to use a 10-inch screen that was available now, which is LCD-based. It will also reportedly have a 7-inch model. And I am hearing it will sport a new version of Nvidia’s Tegra quad-core chip and will be using Android as its OS.
So at least quantity wise there are still problems with PixelQi manufacturing.
More information on this update:
Amazon Tablet PC with E Ink Holdings’ Hydis FFS screen [May 3, 2011]
The new 7” display has already been shown at CES 2011. See the detailed First look at Pixel Qi’s 7 inch display, new netbooks, tablets [Jan 6] report from Liliputing and the video from them:
Pixel Qi’s displays can function both as full color LCD screens and as high contrast, grayscale displays which are viewable without a backlight by relying on ambient lighting — much like an E Ink display. The difference is that while E Ink screens have slow refresh rates, a Pixel Qi display can handle full motion video whether the screen is in color or grayscale mode. The only difference is whether the backlight is on or off.
Turning off the backlight not only makes a netbook, tablet, or other device with a Pixel Qi screen readable in direct sunlight — it also drastically reduces the amount of power used by the display — which is often one of the most power-hungry components of a computer.
The new, smaller display has the same 1024 x 600 pixel resolution as the 10 inch model. Pixel Qi has also improved the viewing angles — although they’re still not great. With the backlight off, you can view the screen from pretty wide angles. But in full color mode, the colors start to wash out pretty quickly when you view the screen from the side, which is a bigger problem with tablets than netbooks.
And here is a report from the press conference on ZTE Looking to Break Into High-end in 2011 With Smartphone, Tablet, & STB Selection [MWC] [Feb 14] (emphasis is mine):
I attended ZTE’s press conference – it wasn’t the most popular at this event, of course. But they’ve done exceptionally well with their smartphone push in 2010 and are looking to up the stakes in 2011. They will do this with a selection of new smartphones and tablets geared toward the high-end.
….
ZTE’s campaign plans becoming somewhat clear from their companion press release ZTE Unveils Skate Smart Phone at GSMA Mobile World Congress [Feb 15] (emphasis is mine):
Inspired by the skateboard, the ZTE Skate is fashionably thin and lightweight at only 120g, featuring a large 4.3-inch screen to provide an optimal web surfing experience to consumers. It uses the Android 2.3 operating system, an 800MHz processor and the Adreno 200 graphics processing unit (GPU) to support the widescreen, high-definition display. In addition, the ZTE Skate also incorporates a 5MP camera, multimedia Bluetooth extension, A-GPS capability, hardware compass, and G-sensor.
The open Android operating system ensures that Skate can run an extensive range of apps, meeting not only the in-depth customization needs of operators, but also providing a user-friendly UI, and convenient and powerful multimedia features. Skate supports GSM/GPRS/EDGE at 900/1800/1900MHz and HSDPA/UMTS at 900/2100MHz, as well as WiFi internet access.
The ZTE Skate is expected to be available from May 2011 in markets worldwide. The smart phone launch also kicks off ZTE’s “Light Your Smart World” smart product strategy.
…
An IDC report shows that ZTE has become one of the world’s top five handset makers – in 2010 the company’s global shipment of handsets reached 60 million units and terminal products over 90 million units. Signature models such as the ZTE Blade and ZTE Light became bestsellers across multiple markets, achieving outstanding sales records in more than 30 countries including Europe and Japan, within a very short period of time. The ZTE Blade was also frequently referred to as the “Most Valuable Smartphone” by media in these markets.
Pretty impressive numbers which – also given ZTE’s very close releationship with the operators – is giving a pretty good chance that the Pixel Qi based tablet will become a bestseller quite soon.
ZTE has outstanding position and extraordinary market aspirations which could benefit Pixel Qi’s long unfulfilled aspirations as well . This could be best understood from the following press releases and reports:
China’s ZTE aims for top 3 in telecom gear [Reuters, Feb 14] (emphasis is mine):
It would be a major move for ZTE, which is smaller than its better-known Chinese counterpart Huawei, and holds roughly 5 percent market share in wireless gear, according to Bernstein Research.
“We want to be in the top three in terms of revenues and market share,” said Xu Ming, vice-president of wireless services in an interview at the Mobile World Congress in Barcelona.
Founded in 1985 in the southeastern Chinese city of Shenzhen, ZTE earned about half of its revenues outside China last year by selling both handsets and fixed and wireless network gear.
It benefits from a low-cost base like Huawei, but its margins are lower because of its lack of scale in many business lines, according to analysts.
…
ZTE Records RMB100 Billion [US$15.2B] Contract Sales in 2010 [Feb 15]:
The fastest-growing vendor in the global telecom sector
14 February 2011, Shenzhen – ZTE Corporation (“ZTE”) (H share stock code: 0763.HK / A share stock code: 000063.SZ), a leading global provider of telecommunications equipment and network solutions, today announced that in 2010 it secured contract sales worth up to RMB100 billion and a growth rate of 26%, making ZTE the fastest-growing vendor in the global telecom sector.
ZTE made this milestone achievement despite the current economic turmoil. The global market and domestic market in China both experienced a deterioration in 2010, with an annual decline in telecom investment in each market by 3% and 14% respectively.
According to a Frost & Sullivan report, “Insights on 2010 Market Performance”, ZTE has the highest compound annual growth rate (CAGR) among the top vendors in the global market. It recorded a CAGR of 28.01% between 2008-2010 and 37.48% between 2006-2010.
ZTE has achieved 29% growth of its contract sales in overseas markets especially in Europe and North America. A growing number of leading players such as France Telecom, América Móvil, MTN and Softbank embark on co-operation with ZTE and appreciate the firm’s commitment to excellent delivery. ZTE’s terminal products — Blade, Racer and Light — were sold out in the European market for the first time, highlighting the company’s strong brand reputation.
The 3G investment in China market slowed compared with the peak of 2009, and fell from RMB 160 billion in 2009 to RMB 122 billion in 2010. However, tri-network integration boosted the investment in fixed networks which enabled ZTE to achieve 22% growth in the domestic market.
Stabilization in its market share of wireless product s and focus on the 3G terminal market will consolidate ZTE’s market position and guarantee its steady and sustainable growth in the future.
ZTE Announces Preliminary Financial Results for 2010 [Jan 28] (emphasis is mine):
(Hong Kong, 27 Jan 2011) – ZTE Corporation (“ZTE” or the “Group”) (H share stock code: 0763.HK / A share stock code: 000063.SZ) today announced its 2010 Preliminary Financial Results.
Applying PRC ASBEs, during the year under review, the Group’s revenue from principal operations was approximately RMB70,332 million [US$10.7B], representing an increase of 16.69% compared to 2009. Net profit attributable to shareholders of the company was RMB3,254 million, representing an increase of 32.39% against 2009 and earnings per share amounted to RMB 1.18. The increase in net profit was mainly attributable to Group sales growth and the recognition of investment income from the listing of one of the company’s associates, Nationz Technologies Inc. by way of an initial public offering.
As of 31 December 2010, the total assets of the Group increased by 20.40% to RMB 82,287 million compared to the end of the previous year; Shareholders’ equity attribute to the owners of the company increased by 37.28% to RMB 23,097 million compared to the end of the previous year, which was mainly attributable to an increase in retained profits during 2010 and the growth in share capital and capital reserves following the company’s placing of new H shares in January 2010 and the exercise of the company’s A share Warrants in February 2010.
ZTE says 2010 net profit up 32 pct on better sales [Reuters, Jan 30] (emphasis is mine):
ZTE 2010 net profit 3.25 bln yuan vs 3.1 bln yuan f’cast
* After extraordinary items, net profit down to 2.8 bln yuan (Adds details, background, analyst quote)
HONG KONG Jan 27 (Reuters) – ZTE Corp (0763.HK)(000063.SZ), China’s No. 2 telecoms equipment maker, reported a better-than-expected 32.4 percent rise in 2010 net profit on Thursday, helped by improving demand for infrastructure projects.
ZTE said it expects to make a net profit of 3.25 billion yuan [US$0.5B] for the full year 2010, better than expectations for a 3.1 billion yuan net profit, according to a poll of 21 analysts surveyed by Thomson Reuters I/B/E/S.
The company made a net profit of 2.46 billion yuan in 2009, it said in a statement posted on the Hong Kong stock exchange. It also had to take a one-time extraordinary item that lowered its net profit to 2.8 bln yuan, but did not give any further details.
“The bottom line results look fairly positive,” said Alen Lin, an analyst with BNP Paribas in Hong Kong. “Looking at the revenue figures, it’s likely that India has already contributing to the company’s numbers.”
New Delhi banned Chinese telecoms equipment on security concerns for most of last year and only allowed sales to resume in September, hitting revenues at ZTE and its bigger rival Huawei Technologies [HWT.UL].
Together the two companies grew up selling equipment to the Chinese mobile market but have increasingly become formidable players on the world stage scoring major contracts in Europe and some developing countries.
In the United States, however, there has has been opposition from some factions that have raised concern about the security threats posed by a Chinese company selling telecoms equipment to U.S. operators.
“The U.S. has never counted much for ZTE, and I think this will likely remain the case for at least this year,” said Lin at BNP Paribas. (Reporting by Kelvin Soh; Editing by Hans Peters)
Marvell to capitalize on BRIC market with the Moby tablet
Follow-up: First real chances for Marvell on the tablet and smartphone fronts [Aug 21 – Sept 25, 2011]
Brazil, Russia (sort of), India, and China (BRIC) are the current leading lights for most of the businesses looking for high growth markets in 2011. This is not different for the ICT industry either. See more about that in the “Analysts about the BRIC market potential” part of this post far below. This will also be showing how promising is the new BRIC-oriented end-customer strategy of Marvell.
If one knows very little or nothing about Marvell it is recommended first to read my preceding post Marvell ARMADA beats Qualcomm Snapdragon, NVIDIA Tegra and Samsung/Apple Hummingbird in the SoC market [again] [Sept 23, 2010 with updates upto Jan 17, 2011].
Follow-up: High expectations on Marvell’s opportunities with China Mobile [May 28, 2011]
No wonder that Marvell has started to implement one of its long-range end-customer strategies, the so called Moby (see above and/or click) first in India then in other parts of the BRIC. As PC World (IDG News) reported in its Tablets Using Marvell’s Moby Design in India Soon [Jan 27] article (emphasis is mine):
Tablet computers built to Marvell’s Moby reference design should launch in India in the first half of this year, an executive of the company said on Thursday.
The chip company is partnering in India with consumer electronics vendors, mobile handset makers, and mobile service providers who will be offering the product under their own brands, said Anand Ramamoorthy, Marvell’s country head of sales and marketing in India, on Thursday. He did not disclose the names of the partners.
Marvell announced in March last year a US$99 prototype for a multimedia tablet targeted at education.
The basic configuration in India is likely to be priced closer to 10,000 rupees ($216) because of the high import duties and the cost of distribution in the country, Ramamoorthy said. In emerging markets, there isn’t a model whereby hardware costs are subsidized by service contracts, he added.
India and China will be the first among emerging markets where the tablets will ship, with plans to also introduce the products in Latin America and Eastern Europe.
As emerging markets are price-sensitive, Marvell’s strategy is to position a low-cost configuration as a volume product.
In India, the company is expecting its partners to deliver for 10,000 rupees a 7-inch tablet with a capacitive LCD screen, that will be built around the Armada 168 processor at 800 MHz, and offer 720p video and Wi-Fi connectivity. It will run the Android operating system and other open source software, Ramamoorthy said.
The actual price in these markets will depend on partners and their business and margin models, Ramamoorthy said. Some partners may decide to offer high-end, more expensive devices as well, he added.
Marvell will have two primary manufacturers globally, including Foxconn. Partners selling the tablets will however be free to choose manufacturers from a pool of Marvell’s manufacturing partners, Ramamoorthy said.
Follow-up: Kinoma is now the marvellous software owned by Marvell [Feb 15]
Marvell’s current on-line press kit [Jan 9] contains the following documentation and images related to the Moby design:
– Mobylize Prototype – It’s Time to Mobylize for America’s Students! [Fast Facts, Jan 3]
– Marvell Showcases Moby Tablet and Extensive Line of Other Advanced Connected Devices for the Always-On Lifestyle at International CTIA Wireless 2010 [CTIA Press Release, March 23, 2010]
– Marvell Drives Education Revolution with $99 All-in-One Mobile Tablet Designed for the World’s Students [Press Release, March 18, 2010]
Marvell Moby White Vertical: students screen
In the latest Jan 3 Fast Facts (linked above) the following prototype features and technical specifications are given:
Moby Prototype Features
• Future-Proof Learning: Mobylize leverages the powerful and open Android OS platform to ensure an open and growing ecosystem of learning technologies
• Multi-Sensory Interaction: Mobylize’s touchscreen interface, as well as video and audio capabilities, creates a highly interactive and engaging learning experience.
• Always-On Technology: With 802.11 b/g wireless connectivity and web browsing with Adobe® Flash® Lite 3.1, students can learn seamlessly with online and offline technologies in today’s always-on environment.
• Multimedia Education: Integrated multi-media player, photo viewer, instant messaging and more drive learning potential exponentially beyond the classic textbook.
• Drives Green Classroom: Marvell technology provides high energy-efficiency that energizes hours of learning.TECHNICAL SPECIFICATIONS
• ARMADA 168 (1 GHz), WMMXTM multi-media acceleration engine
• 256MB DDR2 RAM
• Android OS
• 2D graphics engine, WMMX, QdeoTM intelligent color, remapping technology
• 10.1” TFT LCD display, 1024 x 600 resolution, Capacitive touch panel
• 4GB NAND flash, Micro-SD up to 16GB
• Two stereo speakers (1W each), built-in microphone
• USB 2.0 (x1 host, 1x device) • Micro SD card, MIC and Ear phone jack, 12V DC-in
• 802.11 b/g connectivity
• 2800mAh; 7.4 volts battery
Note however that in the press release of last March (also linked above in PDF form) the higher ARMADA™ 600 class processor has been indicated:
About Marvell Moby Tablet
Powered by high-performance, highly scalable, and low-power Marvell® ARMADA™ 600 series of application processors, the Moby tablet features gigahertz-class processor speed, 1080p full-HD encode and decode, intelligent power management, power-efficient Wi-Fi/Bluetooth/FM/GPS connectivity, high performance 3D graphics capability and support for multiple software standards including full Adobe Flash, Android™ and Windows Mobile. The ultra low power Moby tablet is designed for long-battery life.
as well as for the Moby MED reference design announced in another press release Marvell Drives ‘Telehealth” Revolution with Moby MED Always-On Medical Tablet [Apr 21, 2010]. Note that Moby MED devices are quite different since (as per the press release):
Healthcare-focused Tablets With Multiple Simultaneous Viewing Screens Including Video Conferencing and Live TV Allow Consumers to Manage Medical Records, Conduct Live Physician Consultations, View 3D Images and Sonograms, Collect Real-Time Data From Personal Monitoring Devices, Access Information From Online Sources, and More.
which is currently looking much more suitable for the developed markets.
The remark, that “Some partners may decide to offer high-end, more expensive devices as well” could — however — point to the fact that even for the education market Marvell partners could use a higher end tablet offering as well, at least as an alternative. This could also explain why a Moby2 prototype design is already existing as evidenced by the image gallery shown above.
On CES 2011 the ARMADA 168 based Moby prototype has also been called Marvell 100 series tablet [Jan 6, 2011].
[CES 2011] Marvell’s foray into the tablet market sees this rather cute and well designed model, the 100 series. Unlike other tablets that are in the market, this one comes with Android 2.2 (instead of 2.1), while sporting a rather young, all-white design with all the lines in the right places. A microSD memory card slot is there for expansion purposes, and you won’t get multi-touch support on the 10” display which is a bummer, so forget about zooming in or out in Angry Birds. There is 1GB of internal memory inside, while Wi-Fi connectivity is supported although 3G will not be present when it hits the market sometime this year for $199 a pop [with $99 manufacturing cost — see in the below video]. Of course, as with Marvell’s OLPC project, the 100 series will target the educational environment more. It is pretty heavy, but it won’t weigh a ton like most textbooks. Looks hardy enough to stand up to the rigors of restless kids, too! Interestingly enough, being an Android-powered device, it has more than the usual 4 buttons of Home, Menu, Back and Search, but will include the “Up” and “Down” buttons, too.
while the more performant one which is based on ARMADA 600 is also called 600 series accordingly. More information:
– Marvell 600 series tablet has interesting implications [6 Jan]
– Marvell 600 Tablet Series Graphics Performance Demo at CES 2011 [Jan 24]
– and the video Mobylize Tablet on ABC News: Good to Know [Jan 10, 2011]
Note while watching the video that the LCD screen used in the tablet has wide viewing angle.
The title of the above is mentioning “Mobylize” instead of “Moby”. This is a typical confusion. The truth is that Mobylize is:
a campaign aimed at improving technology adoption in America’s classrooms
which was announced with the One Laptop per Child and Marvell Join Forces to Redefine Tablet Computing for Students Around the World [May 27, 2010] by which:
Marvell and OLPC Empower Education Industry to Revolutionize the Classroom Experience through Advanced, Affordably-Priced Tablets
and which was extensively discussed in my post Marvell ARMADA with sun readable and unbreakable Pixel Qi screen, and target [mass] manufacturing cost of $75 [Nov 4, 2010].
The campaign (http://www.mobylize.org/) has a Tablet Demos page which absolutely clarifies the education tablet offering as:
7″ Tablet with a 7″ TFT LCD display of 800 x 480 resolution, Bluetooth 2.1 and with form, size and weight as shown below:
Marvell Moby 7 inch tablet
10″ Tablet with a 10.1″ TFT LCD display of 1024 x 600 resolution and with form, size and weight as shown below:
Marvell Moby 10 inch tablet
with the rest of the specifications the same, i.e.
– Processor: ARMADA 168 (1 GHz), WMMX™ multi-media acceleration engine
– Memory: 256MB DDR2 RAM
– OS: Android
– Graphics/Video: 2D graphics engine, Various format video decode up to 720p through S/W, Qdeo™ intelligent color remapping technology
– Display: with resistive touch panel
– Storage: 4GB NAND flash, Micro-SD up to 16GB
– Audio: Built-in microphone, Two stereo speakers
– Sensors: Accelerometer [s ?for 10″ one?]
– Ports: USB 2.0 (x1 host, 1x device), 2-in-1 card reader, MIC and Ear phone jack, 12V DC-in
– Connectivity: 802.11 b/g
– Battery: 2200mAh; ~8 hour use
– Example Features: Complete web browsing experience with Adobe® Flash® Lite 3.1, Multi-media player, Photo viewer, Instant messaging
Currently the Mobylize Development Kit with the 10″ version is available for pre-order from Aluratek for $299. Till Feb 28 there is CES Promotion with 20% off. It is shipping April 15th. Aluratek will introduce a similar 10″ product of its own in February, called Cinepad, which is ensuring Moby tablets availability in the US as well:
– CES 2011: Aluratek Announces Libre Air eBook Reader with Wi-Fi and
New Cinepad Android Tablet [Jan 6]
– Aluratek Cinepad & Libre Coming In April [VIDEO] [Jan 13]
– CES 2011 – Aluratek Cinepad [Jan 10]
– The Year of the Tablet [Jan 18]
Within Mobilize there was also an app competition (see: Marvell to Fund Next Generation Education Apps [Sept 27, 2010]) with recent results as per Marvell Announces Winners of Its ‘$100K Challenge’ Tablet App Competition [Jan 6]:
The winner of the $50,000 top prize is the application Battleship Numberline, a multitouch educational game that helps strengthen math skills. “Improving your ability to estimate along a number line correlates with math performance all the way up to 6th grade,” said lead developer Derek Lomas, a 29-year-old Ph.D. student at the Human-Computer Interaction Institute at Carnegie Mellon University. “Marvell is doing great things for the future of education by seeding a development community for educational apps.”
The winner of the second-place prize of $30,000 is the application Imagine Mathematics, which illuminates math disciplines like algebra, trigonometry and calculus by taking students behind the scenes and showing them how these disciplines are used in the creation of animated movies from studios like Disney and Pixar. The creator of the app is 36-year-old Seth Piezas, a former technical director at Pixar Animation Studios who now runs his own interactive agency, Colabi.
“I want high school students to see the practical applications of math and the cool things they can create,” said Piezas. “The tablet computer really is an amazing platform for the classroom. I just wish I had something like it when I was a kid.”
The third-place prize of $20,000 goes to Homework Management System, an application that allows students to create quiz questions based on what they have learned in the classroom, which teachers then can distribute to other students for quiz-show style gaming or for homework assignments.
More information:
Marvell ARMADA beats Qualcomm Snapdragon, NVIDIA Tegra and Samsung/Apple Hummingbird in the SoC market [again] [Sept 23, 2010 with updates up to Jan 17, 2011] with all SoC product information including background
Marvell ARMADA with sun readable and unbreakable Pixel Qi screen, and target [mass] manufacturing cost of $75 [Nov 4, 2010]
Marvell beaten by Chinese chipmakers in sub 1,000 yuan handset procurement tender of China Mobile [Nov 15, 2010]
Analysts about the BRIC market potential
In recent Forrester report (see the Forrester: Global Tech Economy Will Substantially Outgrow The Overall GDP In 2011 [Feb 2] press release copy since on the Forrester’ site it is not more available) the #1 prediction is that:
The Tech economy will substantially outgrow the overall GDP.
with the following details:
The global technology industry is in a multiyear up-cycle of industry innovation and growth, during which tech investment grows faster than overall economic growth. This cycle, which is already under way in the US and other developed countries, is based on adoption of a new generation of Smart Computing and Cloud Computing technologies. We expect this cycle to ensure 7.5% growth in US IT purchases, and 7.1% growth globally (measured in USD), despite economic worries in Europe, uncertainties about the strength of economic recovery in the US, and the potential for slowing growth in China.
… in 2011, Brazil, Russia (sort of), India, and China (BRIC) will see some of the fastest (11%) growth in IT purchases in 2011, with other emerging markets such as South Africa, Saudi Arabia, Indonesia, Chile, and Mexico seeing similarly strong growth.
The 2011 Accenture Consumer Electronics Products and Services Usage Report which came out under the title “Finding Growth: The Emergence of a New Consumer Computing Paradigm” [Jan 3] has some very significant survey results regarding the BRIC market (in text empasis is mine):
[p. 4, Executive Summary part] A widening enthusiasm gap
The urban consumers in Brazil, Russia, India and China (the BRIC markets) have leapfrogged the average mature market consumer in their use of technology. They have a much greater appetite for consumer technology from many measures, including the devices they own, their purchase plans and their use of applications. Counter to common misperceptions, a large segment of BRIC consumers are more interested in the newest and most innovative technologies than in the lower price point technologies with less functionality. BRIC market consumers have a higher rate of adoption of the newest technologies and a greater willingness to pay premiums for features and enhancements. For instance, a full 84 percent of Indian respondents say they will pay a premium for enhanced smartphone capabilities. That translates into roughly 148 million consumers.
In the BRIC markets, in particular, prospects are bullish for spending on consumer electronics in 2011. This is especially true in China, where this year’s purchasing plans for technologies such as smartphones and high-definition TVs are staggering. Assuming China has an estimated 167 million urban households and an estimated urban population of 434 million people in the consuming age, 38 million high-definition TVs and 63 million smartphones will be purchased there in 2011.
In contrast, mature markets are more conservative and price sensitive. Consumers in the US, Japan, Germany and France have less ambitious plans to purchase new devices in 2011, use fewer applications overall, and are far less willing to pay premiums for new features and enhancements. And, while consumers 55 years or older in mature markets tend to have higher disposable income (and therefore greater ability to spend on technology), they more often wish to spend as little as possible to keep up on the technology adoption curve. In contrast, younger consumers in BRIC markets demonstrate a huge appetite for electronics, but like millennials around the globe, they are often harder to please, less loyal and have less disposable income to spend.
…
A new consumer technology paradigm
…
Another benchmark of the new technology paradigm is that as new technologies emerge, consumers are increasingly quick to stop using particular devices if they feel they have the same functionality in another device that performs the same function better—especially in BRIC markets. Twelve percent of consumers surveyed in the BRIC markets stopped using mobile phones in 2010 because they had another device with the same functionality. This compares with only five percent of consumers in mature markets who jettisoned their mobile phones. And, in both mature and emerging markets, younger people appear to be far more willing to let go of duplicative devices.
…
[p. 5] In summary, in the fast-changing consumer electronics industry, exploiting big growth opportunities is becoming increasingly difficult. Our research helps consumer tech companies with this challenge by offering information on the hottest current and emerging geographic, product and application markets for consumer technology. For instance, the highest spending in 2011 (and we believe for years to come) is projected to be in urban and semiurban BRIC markets. Demand for mobile applications such as banking continues on a strong growth trajectory. And new technologies (such as tablet PCs and e-book readers) and next-generation technologies (such as smartphones, 3-D and Internet-capable TVs) are projecting substantial growth.
…
[p. 13] Interestingly, one-quarter of respondents globally don’t plan to purchase any consumer technologies in 2011. More than one-third (37 percent) of those 55 and older don’t plan any purchases, compared with only 15 percent of those between 18 and 24 years of age. And a stark contrast in purchasing plans exists between mature and BRIC markets: 40 percent of respondents in mature markets don’t plan to purchase any consumer electronics in 2011, compared with only 9 percent of those in the BRIC markets.
…
[p. 16] Our study shows that BRIC markets have far greater enthusiasm for technologies and appetite for purchasing them than non-BRIC countries, especially the latest devices such as tablet PCs. One could infer that the lower use of computers in BRIC countries is an indication that these consumers are finding alternate devices to do those activities formerly done on the computer—and may, in fact, have simply leapfrogged the step of owning a computer that those in mature markets had to take because at the time there were no other options.
…
[p. 24] When reviewing information on “heavy users” of activities—those who do the activity at least five hours per week—interesting patterns emerge. For instance, among millennials in the BRIC markets who are heavy watchers of shows and videos, a larger share (44 percent) watch them on a PC or laptop than on a television (chosen by 30 percent).
… Of those who don’t own an e-book reader, more than half said that it is because they prefer paper books. But 20 percent said they preferred other electronic devices than an e-book reader
for reading books, such as a phone, PC or tablet PC. In emerging markets, the percentage of respondents who prefer other electronic media for e-book reading is much higher: 34 percent in BRIC markets versus 7 percent for mature-market countries.…
[p. 34] The tablet PC: The hot consumer electronic
The tablet PC is gaining market momentum. One need only look at the millions of sales of iPads and Galaxy Tab tablet computers since they were each launched in 2010 to know that this device is rapidly becoming popular among consumers.
According to Accenture’s research, 8 percent of consumers surveyed now own a tablet PC and about one-third of those individuals (3 percent total) purchased their tablet PC in 2010 (Figure 21). Eight percent of respondents globally plan to purchase a tablet PC in 2011—a purchase rate that would double tablet PC ownership globally in just one year.
BRIC market consumers are more enthusiastic purchasers of tablet PCs than are mature-market consumers. More than double the percentage of BRIC consumers currently own one, and double the consumers plan to buy one in 2011, than consumers in mature markets. But what is most astounding about tablet PC consumption is that nearly one-quarter of Chinese respondents (across ages within urban areas) currently own one. That is nearly three times the global average. The purchase rate in China was more than double the global average in 2010. And looking forward, China is potentially the strongest market for tablet PCs this year, with 18 percent of Chinese respondents planning to purchase one in 2011. If one does the math, tablet PC ownership would reach almost 40 percent of the urban adult population of China by 2012.
Although far behind China in consumption, India has the second-highest penetration of tablet PCs globally, with 10 percent of consumers owning one. Future growth for tablet PCs in India also looks strong: 10 percent of Indian respondents plan to purchase a tablet PC in 2011. Interestingly, Indian consumers seem less committed to the new technology than other countries. Five percent of those owning a tablet PC quit using it last year because they had the same functionality in another device (globally, the defection rate for tablet PCs was 2 percent).
Marvell beaten by Chinese chipmakers in sub 1,000 yuan handset procurement tender of China Mobile
Follow-up: First real chances for Marvell on the tablet and smartphone fronts [Aug 21 – Sept 25, 2011]
No international vendors win China Mobile procurement bid for 6 million TD-SCDMA CMMB handsets, says report [Nov 15, 2010]:
China Mobile will procure 12 models of inexpensive TD-SCDMA CMMB handsets, with an equal procurement volume of 500,000 units for each model, the report indicated. The seven local suppliers are ZTE with three models, Huawei Device, Lenovo and Coolpad each with two models as well as K-Touch, Hisense and New Postcom each with one model.
Vendors, including Nokia, Sony Ericsson, Motorola and Samsung Electronics, all failed in the competition because China Mobile asked for a unit procurement price of below 1,000 yuan (US$150) and they do not offer such inexpensive TD-SCDMA handset models, the report pointed out. Consequently, the seven China-based vendors eat the whole pie, with prices ranging from 350 yuan [US$52.7] to 650 [US$97.8] yuan.
Seven of the 12 models will use TD-SCDMA chips developed by China-based Leadcore Technology, a member of Datang Telecom Technology & Industry Group, and five models will be equipped with chips developed by China-based Spreadcom [Spreadtrum] Communications and T3G (originally China-based but has merged into ST-Ericsson).
Details on the model number, TD-SCDMA chipset vendor, and CMMB chip vendor for each handset are as follows (source Marbridge Daily):
Earlier reports about the tender announcement were:
– China Mobile to procure 6 million TD-SCMA handsets, says Chinese media [Oct 8, 2010]: “Of the total, 3.6 million will be of entry-level models and 2.4 million mid-range products. … the latest procurement effort is largely due to the fourth phase of the China Mobile’s TD-SCMA network construction. When completed, demand for TD-SCMA end-use products is expected to increase substantially.”
– China market: Inexpensive TD-SCDMA handsets to be available in 4Q10 [Oct 13, 2010]: “Pushed by China Mobile, TD-SCDMA handsets and smartphones at retail prices of about 500 yuan (US$75) and 1,000 yuan respectively will be available in the China market in the fourth quarter of 2010. … China Mobile is setting up its fourth-phase TD-SCDMA network of more than 100,000 base stations and expects the number of TD-SCDMA subscribers to increase from 13.42 million currently to 100 million in 2012.”
Please note the globally rock-bottom nature of 350 yuan [US$52.7] for entry-level models and of 650 [US$97.8] yuan mid-range products. No wonder that such a low-cost and high-performance system-on-a-chip (SoC) leader as Marvell Technology Group Ltd. had no chance to succeed through any of its handset manufacturing partners. Despite of its long stated aim to capitalize on huge volumes made possible by the sub 1,000 yuan TD-SCDMA handsets:
– Marvell Empowers Mass Market TD-SCDMA OPhones with PXA920 Chipset [Sept 8, 2009]:
The Marvell PXA920 [which later has obtained the additional name Pantheon 920] comes with a dedicated high performance ARM instruction set compliant Sheeva™ processor and an integrated release 7 (TD-SCDMA, TD-HSDPA, TD-HSUPA) TD-SCDMA baseband [processor] as well as a China Mobile proven EDGE modem.
“China Mobile Research Institute believes that the OPhone platform operating on the Marvell PXA920 will catalyze the hyper-growth of TD-SCDMA smartphones as it provides a powerful combination of value-added services on a feature rich, high performance and highly affordable platform. We believe that the PXA920 solution will help us realize China Mobile’s vision of sub-1000 RMB [sub $146] TD OPhones in the near future,” said Bill Huang general manager of China Mobile Research Institute. “Marvell has worked with us from the start of the PXA920 program [2 years ago] and we are excited by the rapid progress we have made towards realizing this milestone. China Mobile will work closely with Marvell and handset eco-system partners to deploy the PXA920 and we look forward to the rapid launch of next generation TD-SCDMA OPhones based on the Marvell PXA920.”
“It is an especially proud moment for me to work with China Mobile on the mass market launch of TD-SCDMA OPhones in China,” said Shanghai-born, Weili Dai, Marvell co-founder and vice president and general manager of the company’s Consumer and Computing Business Group. “Marvell’s mission is to make technology more useful and more affordable to more of the world’s consumers. The PXA920 realizes a shared vision of China Mobile and Marvell to make powerful and affordable smartphones accessible to everyone. With the first single chip solution for TD-SCDMA, Marvell is raising the technology bar for the entire industry.
– Marvell’s Vision and Long Term Commitment to China Positions Company for Next Phase of Growth [Sept 7, 2009]:
Marvell, with approximately $3 billion in revenues in fiscal year 2009, has nearly 700 employees in its Shanghai campus and is aggressively planning to expand its operations in China. The company has focused on building its presence in the China market for most of its 14 year history, initially developing strong relationships with enterprise customers like Huawei and ZTE.
…
Last week, Marvell celebrated the culmination of several years of investment in the China smartphone market with the introduction of the Marvell® PXA920, the first commercially available single-chip solution, enabling mass market availability of TD-SCDMA smartphones. Developed by Marvell’s research and development center in Shanghai, the PXA920 is a high performance, super integrated chipset that makes the new smartphones far more affordable than feature phones currently offered by China Mobile while providing enhanced performance versus current smartphones.
Update: That opportunity was realized only 2 years later. See:First real chances for Marvell on the tablet and smartphone fronts [Aug 21, 2011]
– Marvell Technology Group CEO Sehat Sutardja on Bloomberg [Sept, 2009]:
Our strategy is to focus:
- Focus on high-end smartphones
- Move smartphones to mainstream cell/feature-phone price range
- Work with China Mobile [world’s largest mobile company] for TD-SCDMA
– Marvell Drives $99 Smartphones to Market With New Pantheon Platform [Feb 12, 2010]
– Marvell Affirms Significant Progress in TD-SCDMA Mobile Phone Chipset at Mobile World Congress 2010 – Company Showcases Array of New Smartphones Developed for the China Market Powered by Marvell’s Low Cost, High Performance Processors [Feb 15, 2010]:
More than 90 percent of all OPhones (EDGE and TD-SCDMA) shipped since launch last September are built on Marvell’s power efficient, high performance silicon technology.
In addition to OPhones, Marvell recently announced new breakthrough developments in cellular silicon technology with the new Pantheon(TM) communication processors which enable development of sleeker, high performance smartphones with HD-quality, live instant video, voice, data and 3D graphics for gaming and other popular mobile applications for consumers.
“Marvell is proud to have been an early technology partner to China Mobile on the development of the OPhone smartphone and we are delighted to see the rapid and broad adoption of China’s TD-SCDMA standard,” said Ms. Weili Dai, Marvell’s Co-founder and Vice President and General Manager of Marvell Semiconductor’s Consumer and Computing Business Unit. “… The collaboration with China Mobile affirms our commitment to drive the smartphone for mass market adoption and to deliver the ‘always-on lifestyle’ to consumers around the world.”
“China Mobile’s vision of the sub-1000 RMB (sub $150) TD-SCDMA OPhones will become a reality because of our collaboration with leading companies like Marvell,” said Bill Huang general manager of China Mobile Research Institute. “Marvell and China Mobile are excited by the rapid progress we have made in the TD-SCDMA technical cooperation.”
As the world’s first solution with a built-in TD-SCDMA platform solution with a 55nm design, the Pantheon 920 is a high performance, highly integrated solution that helps make smartphones far more affordable than feature phones while providing enhanced performance compared to current smartphones.
The Pantheon 920 processor [exactly the same as the PXA 920 announced in Sept 2009]supports all leading open operating system (OS) software platforms and come with a dedicated high performance ARM instruction set compliant Marvell CPU processor, high performance HD video, 3D graphics accelerators, and industry’s leading TD-SCDMA modem with 2.8Mbps HSDPA and 2.2Mbps HSUPA.
Certainly it could be the case that the next round of China Mobile tender for sub 2,000 yuan (sub $300) handset procurements will be won by Marvell. The sub 1,000 yuan (sub $150) segment, however, has been lost for them.
Background on Chinese chipmakers now succeeding against Marvell and all other international operations
When looking into the background of local chipmakers, especially that of the biggest winner Leadcore technology, one thing becomes absolutely clear. The telecommunication chip supply is as much under state control as the whole telecommunication market. Moreover every strategy related decision, which of this procurement process is just one example, is under direct control of the Central Commitee of the Chinese Communist Party. As as consequence there is no wonder that no international chip maker has any chance to penetrate the mass handset market technologically viable for local chipmakers. It is quite probable that the Central Commitee wants to build an internationally competitive local chip industry via the huge volumes available on their home handset market. Some evidence:
– Leadcore Unveiled oPhone Solutions to Strengthen the High-end TD-SCDMA Handset [April 23, 2009]
On April 23, 2009, in the Leadcore Technology Annual Client Conference 2009, Mr. Sun Yu, the president of Leadcore Tech revealed the progress of TD-SCDMA terminals development. Mr. Sun Yu said that more than 60 handsets are based on the Leadcore solutions in the current 100 TD-SCDMA handsets. More than 70% TD-SCDMA terminals products in the market were derived from the Leadcore’s DTivy. The Pecker test terminal launched by the Leadcore technology occupied the vast majority share of TD-SCDMA test terminal market. He also revealed that China Mobile was taking its great effort to R&D the solutions of OMS-based TD-SCDMA handset, oPhone, which will be released by Leadcore on April 23, 2009.
– TD Forum Attended Leadcore Technology Client Conference to Witness the New Heights of Chip Manufacturers [April 22, 2010]
– Continuous innovation to lead the future – the core technology wonderful debut thirteenth China Beijing International High-Tech Expo [May 27, 2010], as translated from Chinese by Google:
展会期间联芯科技展位受到了中央领导以及参展观众的高度关注，取得良好反响。 Core Technology Alliance booth during the exhibition by the central leadership and the participating audience attention and achieved good response. 中共中央政治局委员、市委书记刘淇，中共中央政治局委员、国务委员刘延东，国务委员、公安部部长孟建柱，均来到联芯科技TD联盟展位驻足参观，了解公司最新技术与市场化成果。 CPC Central Committee, Liu Qi, Party Secretary of the CPC Central Committee, State Councilor Liu Yandong, State Councilor and Minister of Public Security Meng Jianzhu, are the core technology to the joint booth TD Union stopped to visit, understand the latest technology and market results.
– General Secretary of the Central Committee of the CPC, Chinese President and Chairman of Central Military Commission, Jintao Hu paid an inspection visit to Spreadtrum Communications (Shanghai) Co., Ltd [Jan 18, 2010]
– Hu calls for independent innovation [Jan 18, 2010]:
Hu Jintao (R front), general secretary of the Central Committee of the Communist Party of China, Chinese president and chairman of the Central Military Commission, shakes hands with young members of the research and development team as he inspects Spreadtrum Communications, Inc., in Shanghai, east China, on Jan. 16, 2010. Hu Jintao made an inspection tour in Shanghai on Jan. 14-17. [Xinhua]
… At the Spreadtrum Communication, Inc., a high-tech company founded by returned overseas students, Hu said independent innovation is the lifeline of a company. He told the company staff “I hope you could make further breakthroughs in core technologies, so as to boost China’s communication industry.”
– Spreadtrum Communications, Inc. Announces $44 Million of New Financing [May 5, 2009]:
“We very much appreciate and are excited to receive this nearly interest-free financing. This indicates the Chinese government’s strong support and high confidence in Spreadtrum to develop semiconductor products in 2nd and 3rd generation wireless communications in the Chinese market. We plan to use our borrowings under the loan to increase R&D investment in our GSM and TD-SCDMA projects and to expand our IC operations in China. With our strengthened financial position, we are more confident in our ability to overcome the difficulties caused by the current worldwide economic and financial crisis and do not expect to need to raise additional funds in the near future,” said Dr. Leo Li, president and chief executive officer of Spreadtrum Communications, Inc.
And these are just the visible indications that local chipmakers are getting huge government subsidies. And T3G, now a wholly owned subsidiary of ST Ericsson, has also been a very much preferred player because of its parent’s huge patent portfolio and international Ericsson influence in the strategic (for China’s local and foreign market efforts) LTE wins (see: IMT-Advanced (4G) for the next-generations of interactive mobile services, China is triumphant [Oct 24, 2010]). With that they can beat even the best international chip house, the Marvell Technology Group.
1. Leadcore Technology (part of the state-owned Datang Telecom Technology & Industry Group)
The current outcome is not the first time for the biggest winner Leadcore Tedchnology (with seven of the 12 models using its TD-SCDAM chip, i.e. 58% or 3.5M chips) as evidenced by one and a half years old news of Leadcore Technology Gets Big Order from China Mobile [May 21, 2009]:
Leadcore Technology Co., Ltd., together with its three partners, wins nearly a half of the CNY 600 million subsidy from China Mobile in the telecom carrier’s latest round of bidding for TD-SCDMA terminal procurement
…
Leadcore’s mobile phone chips are applied in five models of TD-SDMA mobile phones that are ordered by China Mobile this time.
The TD-SCDMA network operator has ordered 11 models of mobile phones, including the Leadcore chip-powered low-end TD-SCDMA devices launched by ZTE Corporation (SZSE: 000063 and SEHK: 0763) and LG, as well as the Leadcore chip-based flagship broadband TD-SCDMA products rolled out by LG, ZTE, and Yulong Computer Telecommunication Scientific (Shenzhen) Co., Ltd.
The other companies share the TD-SCDMA terminal order from China Mobile include T3G Technology Co., Ltd., Spreadtrum Communications, Inc. (Nasdaq: SPRD), Dopod Communication Corporation, Motorola, Samsung, Huawei Technologies, Hisense, and Guangzhou New Postcom Equipment.
Leadcore Technology’s lead on the technology market for TD-SCDMA terminals goes back to the very beginning as was reported by Datang Licensed TD Tech from Leadcore [Sept. 30, 2009]:
Sun Yuwang, president at Leadcore Technology, once said that more than 60 of the over 100 TD handsets that have gotten network access licenses in the country have been equipped with Leadcore chips, with an additional 14 new models afoot. Among the top four PC makers in the world, Lenovo, HP and Acer have all adopted Leadcore’s products.
Leadcore’s TD chip shipment outpaced 1 million pieces this past April, topping 2 million by the end of this August. Now the company is holding more than 60% of the domestic TD chip market.
Leadcore’s dominance has been further evidenced by TD Forum Attended Leadcore Technology Client Conference to Witness the New Heights of Chip Manufacturers [April 22, 2010]:
Dr. Jing Wang, Secretary-general of TD Forum attended the conference and witnessed great achievements gained by TD-SCDMA chip manufacturers since TD-SCDMA commercialization one year ago. With the further mature of TD-SCDMA market and gradually strengthened cooperation among related parts of TD-SCDMA industry, the problems occurred in the development of TD-SCDMA industry will be resolved effectively.
Leadcore is part of the state-owned Datang Telecom Technology & Industry Group which has the following structure:
with officially provided links as below:
Affiliations
Datang Telecom Technology & Industry Holdings Co.,Ltd.
- Datang Mobile Communications Equipment Co., Ltd.
- Leadcore Technology Co.,Ltd.
- Beijing Xinwei Telecom Technology Co.,Ltd.
- Datang Capital(Beijing) Co.,Ltd.
Datang Telecom Technology Co.,Ltd.
GoHigh Data Networks Technology Co.,Ltd.
Unit in charge
State-owned Assets Supervision and Administration Commission of the State Council
Among the affiliate links given above there is no link for Semiconductor Manufacturing International Corporation (SMIC) although on the stucture image it is listed as part of the Datang Telecom Technology & Industry Holdings Co.,Ltd.
- Update: Datang to raise stake in SMIC, says report [Nov 23]:
Datang Telecom Technology & Industry Holdings has agreed to acquire US$102 million worth of Semiconductor Manufacturing International Corporation (SMIC) shares to bring its stake in the foundry chipmaker to 20%, according to a Chinese-language sina.com report.
The report said SMIC will use the new funds mainly to expand advanced process capacity at its 12-inch fabs.
Datang, directly owned by China’s central government, is currently the majority shareholder of SMIC with a 16.6% stake.
Semiconductor Manufacturing International Corporation (SMIC) will pump at least US$2 billion into research and development annually in the future, aiming to develop “world-class” technologies and manufacturing within the next five years, according to Jiang Shang Zhou, chairman of the China-based foundry chipmaker.
…
SMIC is now undertaking a project to ramp up 45nm process capacity, which will cost it a total of about US$4 billion, Jiang noted. In addition, the company’s next move to a 32nm technology will initially require US$600 million, Jiang added.
Soon the Datang Telecom Technology & Industry Group will be even larger as per the news that China Potevio to merge with Datang [July 15, 2010]:
The government has decided to merge two State-owned telecom equipment makers – China Datang Corp and Potevio – by the end of this year, sources from Datang said on Wednesday.
The merged entity is expected to become the third-biggest telecom equipment maker in China after Huawei Technologies and ZTE Corp, the source said.
…
Datang is a large power generation company and one of the key promoters of the TD-SCDMA standard in the nation.
China Potevio is a leading IT equipment manufacturer and service provider. Its main businesses span the manufacture of telecommunications products, the application of telecom products, and the informatization of broadcasting and TV.
The group is also playing an active role in high-tech investments as per Datang Telecom planning PE fund [May 20, 2010]:
Telecom equipment maker Datang Telecom on Wednesday said it plans to set up a 5 billion yuan ($732.18 million) private equity (PE) fund for investments in the booming Internet of Things (IOT) industry.
Datang will partner with the Wuxi New District Venture Investment Group, the Chinese Academy of Sciences (CAS) and Wuxi Guolian Development (Group) Co to set up the PE fund with a corpus of 1 billion yuan in the first stage.
The company will invest 200 million yuan during the first stage of fundraising and hold a 40 percent equity stake in the fund management company being set up to manage the private equity fund.
IOT refers to networks of real-world objects linked to the Internet that interact through web services. The technology is based on the concept that all real-world objects can be identified and managed by computers if they are equipped with radio tags and linked to the Internet. Technologies such as radio frequency identification and sensors form the cornerstones of the network.
What is the current status of the group and Leadcore itself in relationship to China’s own TD-SCDMA and TD-LTE technologies? The Datang Telecom Group was awarded “2nd China Annual 3G Prize” [June 30, 2010] press release is giving all the details (emphasis is mine):
Since Ministry of Industry and Information Technology of PR China issued 3G licenses in January 2009, in TD-SCDMA industry DTG has occupied 30% of market share in system equipment, and 50% in chips and Solutions.
Currently, DTG possesses the most comprehensive TD-SCDMA solutions for all circumstances in the industry, and is competent to provide complete, end to end TD-SCDMA and TD-LTE business solutions. DTG has already provided network equipment supply and construction services to Guangdong, Shandong, Jiangsu and Zhejiang, and other key provinces. DTG actively cooperated with China Mobile to accomplish coverage of complex scenes, such as, intensive urban areas, large scaled stadiums, maglev trains and Cross-ocean Bridge, and provided premium green network with TD-SCDMA technology. All products provided by DTG are ready for smooth evolution towards TD-LTE. This award collectively represents high recognition and acceptance towards Datang Telecom Group for its contribution in promoting the development of Chinese telecommunication industry.
LeadCore Technology, winner of “TD-SCDMA terminal chip and the best solution provider”, is the core enterprise specialized in TD-SCDMA terminal industry in DTG. As a chip enterprise in the upstream position of industrial chain, Leadcore Technology always focuses on layout of industrial chain and value chain; Leadcore adheres to technology innovation and market-orientation; promotes industrialization of innovation achievements, persists in pursuing win-win situation from cooperation and also coordinates with the partners from industrial chain, so as to promote rapid and healthy development of TD-SCDMA industry.
2. Spreadtrum Communications, Inc (founded by Chinese expatriates in 2001, a public company since 2007 with principal executive offices and most operations in China but incorporated in Cayman Islands)
– Spreadtrum and Hisense Jointly Launched the World’s First Affordable TD-SCDMA Phone Supporting CMMB Digital TV [Jan 10, 2010]
Hisense N51 was jointly developed by Spreadtrum and Hisense in a highly collaborative technical partnership. Executive Vice President of Hisense Communication, Ms. Wenlin Yang, said: “Hisense and Spreadtrum share a long history of co-operation. Partnering with Spreadtrum, we successfully won the bid of ‘thousand-yuan 3G mobile phones’ project of China Mobile’s ‘TD-SCDMA Terminal Special Incentive Fund Project.’ Through our six-month joint efforts and Spreadtrum’s very competitive TD-SCDMA and CMMB solutions, the Hisense N51 was introduced. … “
President and CEO of Spreadtrum Communications, Inc., Dr. Leo Li, said: “… Spreadtrum provides highly integrated TD-SCDMA/HSDPA/GSM/GPRS/EDGE baseband chip SC8800H and RF chip QS3200, which effectively reduce the cost of development and manufacturing of Hisense Communication products. Therefore, Hisense Communication is able to introduce cost-effective handsets such as N51 by targeting the Chinese 3G market quickly to meet the needs of consumers. Spreadtrum CMMB mobile TV chip SC6600V provides Hisense N51 with vast application space. Particularly, Hisense N51 is currently the world’s only 1000 RMB level TD-SCDMA phone that supports CMMB.”
– Spreadtrum’s TD-SCDMA Chip Adopted in the World’s First 3G OPhone Lenovo O1 [Dec 14, 2009]:
Lenovo Mobile Communication Technology Co., Ltd. (hereinafter referred to as “Lenovo Mobile”) launched the world’s first TD-SCDMA standard-based OPhone smart phones – Lenovo O1, with immediate sales in all local markets in mainland China. The phone is based on Spreadtrum Communications, Inc. (hereinafter referred to as “Spreadtrum”, Nasdaq: SPRD) TD-SCDMA solution, and supports China Mobile OPhone OS smart phone operating system.
Spreadtrum and Lenovo Mobile, in a highly collaborative technical partnership, jointly developed Lenovo O1. This new handset runs on the China Mobile led developed Intelligent Terminal software platform – the OPhone platform. Lenovo 01 uses Spreadtrum’s TD-SCDMA/HSDPA / GSM / GPRS / EDGE baseband chip SC8800S and radio frequency (“RF”) chip QS3200.
– Spreadtrum and China Telecommunications Technology Labs Announce Strategic Partnership to Promote New Technologies and Services [May 15, 2009]
A unique industry chain capability has developed in China’s mobile phone industry, which now comprises of design, R&D, support, production, marketing, etc. This development will enhance the competitiveness of phones made in China for the local and overseas markets. With the strategic partnership of CTTL and Spreadtrum, our cooperation will create new technologies and services in wireless communications and multimedia terminals. For example, we expect to innovative services by utilizing our combined resources and new techniques in 2G and 3G networks to develop high-tech information security technologies for the mobile and multimedia markets. Our cooperation will simultaneously broaden and strengthen interactions in the industry chain.
… China Telecommunications Technology Labs (“CTTL”), founded in 1981, was named under the authorization of the Ministry of Information Industry (MII) and the State General Administration for Quality Supervision, Inspection and Quarantine (AQSIQ). Currently, CTTL is administrated by the China Academy of Telecommunications Research (CATR) and was formed through re-organization and merges of four divisions of CATR, i.e. the Research Institute of Telecommunications Transmission (RITT), the Telecommunications Metrology Center (TMC), the Research Institute for Industry Standard of Posts and Telecommunications (PTISR), the CTTL Anti-seismic Research Institute of Telecommunications Equipment, BaoDing (ARITE). It is a leading high-tech laboratory with the following missions: telecommunications technology development, telecommunications product standards and test methods research, telecommunications metrology standards and methods research, products inspection, verification and technical assessment and testing instruments metrology and evaluation of communications software.
– Spreadtrum Communications, Inc. Announces $44 Million of New Financing [May 5, 2009]:
“We very much appreciate and are excited to receive this nearly interest-free financing. This indicates the Chinese government’s strong support and high confidence in Spreadtrum to develop semiconductor products in 2nd and 3rd generation wireless communications in the Chinese market. We plan to use our borrowings under the loan to increase R&D investment in our GSM and TD-SCDMA projects and to expand our IC operations in China. With our strengthened financial position, we are more confident in our ability to overcome the difficulties caused by the current worldwide economic and financial crisis and do not expect to need to raise additional funds in the near future,” said Dr. Leo Li, president and chief executive officer of Spreadtrum Communications, Inc.
– Spreadtrum: TD-based Chip Shipment Totaled 100,000 [March 6, 2009]:
Spreadtrum Communications, Inc. clarified on March 3, 2009 that the shipment of its TD-SCDMA-based chips totaled nearly 100,000.
Earlier, the shipment of Spreadtrum’s TD-SCDMA-based chips was reported to reach 10,000 or so. The number is inaccurate, explained the Nasdaq-listed company, adding that mobile phones adopting its chips accounted for nearly one third of China’s procurement of 300,000 TD-SCDMA cellphones and terminals.
The Shanghai-based company incurred a net loss of USD 31.3 million for the third quarter of 2008, in contrast to a net profits of USD 6.1 million Q3 2007 and USD 2.6 million in Q2 2008
– Spreadtrum Announces World’s First TD-SCDMA/HSDPA/EDGE/GPRS/GSM Single-chip RF Transceiver – The QS3200 RF transceiver features high integration and low power consumption and provides 2G/2.5G/3G/3.5G multimode support [Feb 16, 2009]:
Followed by the GSM/GPRS single-chip RF transceiver, the QS500, and the GSM/GPRS/EDGE single-chip RF transceiver, the QS1000, today Spreadtrum announced the QS3200, the world’s first single-chip RF transceiver to support multimode such as 2G/3G/3.5G. The QS3200 offers great improvement over the other TD-SCDMA RF chip on signal transmission, reception, and power amplification in addition to the integrated features and low power consumption in Spreadtrum’s other chip solutions. The launch of the QS3200 makes Spreadtrum one of the total solution providers in the wireless communications market and takes a positive step forward in commercializing TD-SCDMA technology.
– Spreadtrum Announces SC6600V: First Single-Chip Demodulator/Decoder for CMMB-Based Mobile TV [May 7, 2008]
Spreadtrum’s new SC6600V solution is an integrated CMMB demodulator and source decoder chip and is the first single chip solution that supports both AVS and H.264 video decoding standards. As the first CMMB single chip solution for mobile TV, the SC6600V is designed for feature phones. The SC6600V adopts an integrated platform design for communications and mobile multimedia to reduce the design period of Spreadtrum’s customers. … Spreadtrum’s SC6600V single-chip solution is designed to enable handset makers and carriers to offer mobile TV feature in feature phones at reasonable prices, instead of being relegated to expensive SmartPhones as most mobile TV solutions are currently.
… CMMB is a homegrown mobile TV standard that applies to mobile devices such as mobile phones, PDAs and Portable Media Players (PMPs). It features free mobility, rich video and data services. In addition, it provides consumers with cost-effective mobile TV service that satisfies most consumers’ needs and is expected to be used in the Beijing 2008 Olympic Games.
Mr. Ma Jv, President, Academy of Broadcasting Science of the State Administration of Radio Film and Television, indicated that, “We are very glad that Spreadtrum has developed the SC6600V, the first CMMB-based Mobile TV single chip solution for mobile phones, which integrated demultiplex, channel decoder and source decoder. We believe that it will help CMMB start to grow its market quickly, and we hope Spreadtrum will continue to unleash its technology strengths, allowing it to contribute to the CMMB industry’s ongoing development and road to becoming prosperous.”
– Spreadtrum Communications Completes Acquisition of Quorum Systems [Jan 16, 2008]:
With the acquisition of Quorum, Spreadtrum gains a highly skilled RF engineering team of 30 engineers with an average of 10 years of industry experience. The combination of Spreadtrum’s leading single-chip baseband solutions with Quorum’s complementary, low-power high-performance RF designs is expected to strengthen Spreadtrum’s competitive position in the wireless market, including in 2G, 3G, RF, baseband, physical layer software, protocol and applications. Since its founding in 2003, Quorum has created multi-band transceiver designs ranging from GSM/GPRS/EDGE to WCDMA and 3G HSDPA application, plus a recently announced TD-SCDMA platform.
3. T3G (an ST Ericssson subsidiary since December 2008)
T3G has achieved an impressive record of world firsts in bringing innovation to China:
- The world’s first ASIC based TD-SCDMA system level call achieved in 2004
- The world’s first international TD-SCDMA call in 2004
- The world’s first 384Kbps commercial TD-SCDMA/EDGE dual-mode Samsung phone, powered by T3G’s chipset in 2005
- The world’s first ASIC based 2.8Mbps TD-HSDPA system call achieved in 2007
- The world’s first 2.8 million TD-HSDPA/EDGE dual-mode dual-band commercial data card powered by T3G’s chipset in 2008
- Completed the world’s first TD-LTE end-to-end application demonstration on multimode soft modem platform in 2009
- Launched the world’s first TD-HSPA chip in 65nm in 2009
– Strong presence and identity in China:
ST-Ericsson, through its subsidiary T3G, has been actively developing platforms for the TD mobile standard since 2003. The company’s extensive investment in technology and product development has given it a leadership position in the market. The company provides solutions to Chinese and global handset manufactures and design houses. It offers mobile chipsets, software protocols, system reference designs and customized technical support. In May 2009, ST-Ericsson was selected by China Mobile as a major technology partner for the development of its highend and low-cost handsets. The company will also support four of its customers to commercialize their mobile phones during 2009-2010.
…
- ST-Ericsson’s 550 employees are based in Beijing, Shanghai, Shenzhen and Hong Kong
- ST-Ericsson (ST-NXP Wireless) acquired T3G in December 2008. T3G was established in January 2003 as a joint venture. Its founding partners were Philips Semiconductors (later NXP Semiconductors, and finally ST-NXP Wireless), Datang Mobile, Samsung Electronics, and since 2005 also Motorola. T3G is based in Beijing.
– Datang set to sell off T3G stake [June 19, 2008]:
Datang Mobile, the second largest stakeholder of T3G, is putting its 32.11 percent stake on sale for 122.2 million yuan, according to a notice posted on the website of Beijing Equity Exchange.
The move comes on the heels of the collapse of Commit Inc, another major TD-SCDMA chipmaker, which has dimmed the prospects of TD-SCDMA.
There are rumors that Geneva-based semiconductor maker STMicroelectronics might take over Datang Mobile’s stake in T3G.
…
Commit has had its own share of woes, forcing it to shut shop at the end of April after failing to secure fresh funding and pay its employees for months. Commit’s shareholders include Hyper Market, Texas Instruments, Nokia, LG and State-owned Potevio and Datang Telecom, parent of Datang Mobile.
Industry observers blame Commit and T3G’s woes on the slow roll-out of TD-SCDMA in China.
– ST-Ericsson and China Mobile to Bring TD-SCDMA to the Mass Market [May 26, 2009]:
China Mobile has selected ST-Ericsson’s company in China, T3G, as a major technology partner for the development of its high-end and low-cost handsets, based on the 3G standard TD-SCDMA. ST-Ericsson will also support four of its customers to commercialize their mobile phones during 2009-2010.
Under the agreement, ST-Ericsson, the 50/50 joint venture between Ericsson and STMicroelectronics, will develop a new low-cost platform to support its customers to offer affordable TD-SCDMA devices to the China consumers. ST-Ericsson will also support customers to develop high-end mobile phones, based on existing and new platforms such as the T7210, which will allow consumers to enjoy high-speed broadband and multimedia services.
“Although ST-Ericsson is a recent joint venture, our subsidiary T3G has been actively developing platforms for the mobile standard for more than six years, achieving an impressive record of world firsts in bringing innovation to China,” said Alain Dutheil, President and CEO of ST-Ericsson. “Our dedicated local R&D team, as well as our strong commitment to continuous innovation and close cooperation with customers, will enable China Mobile to offer a broad range of handsets for the mass market as well as for the high-end segment.”
ST-Ericsson’s T7210 mobile platform supports TD-SCDMA dual-band in 2010-2025MHz/1880-1920MHz frequencies, and has successfully completed handovers of voice and high-speed data services in order to operate optimally in Chinese dual-band network environments.
– ST-Ericsson Continues to Drive Innovation in TD Market [Sept 14, 2009]:
ST-Ericsson, a world leader in wireless platforms and semiconductors, and its Chinese subsidiary T3G today announced the industry’s first TD-HSPA modem chip samples in 65nm. This new chip is smaller than existing products, making it easier to implement in mobile devices, and is also designed to reach significantly lower power consumption.
– ST-Ericsson reaches key milestones in China [Nov 27, 2009]:
Confirms clear market leadership in the TD-technology
- Five million TD chipsets shipped
- ST-Ericsson’s solutions power more than 100 models of TD devices, including handsets, data cards and embedded devices
ST-Ericsson, a world leader in wireless platforms and semiconductors, has reached two important milestones, confirming its market leadership in the Chinese homegrown 3G standard, TD-SCDMA. ST-Ericsson, through its Chinese subsidiary T3G, has been leading the innovation in the TD market since 2003, bringing numerous industry firsts.
… Read more at: http://www.stericsson.com/press/Strong_presence_china_English.pdf
– ST-Ericsson to cooperate with China Mobile on TD-LTE [Feb 16, 2010]:
ST-Ericsson, a world leader in wireless platforms and semiconductors, announced today it will cooperate with China Mobile on TD-LTE development and will support a demonstration of TD-LTE at Shanghai World EXPO in 2010.
ST-Ericsson will also actively participate on other TD-LTE projects organized by China Mobile, including trial and interoperability testing (IOT) with infrastructure vendors.
Bill Huang, General Manager of China Mobile Research Institute, said: “China Mobile and ST-Ericsson are co-operating very successfully on TD-SCDMA technology and we are happy to extend our partnership into the TD-LTE area and then multi-mode technologies in future. We share a common goal of creating a global LTE market encompassing both TDD and FDD technologies.”
…
ST-Ericsson’s key milestones in LTE:
- In December 2009, ST-Ericsson and Ericsson were first to achieve LTE and HSPA mobility with a multimode device. Read more at www.stericsson.com/press_releases/LTE_HSPA.jsp
- 2009: Fully working LTE chipset available and interoperability testing of the platform with operators
- 2008: Platform interoperability tests activities initiated with network vendors
- 2007: First handheld LTE prototype available and first handheld public demonstration at Mobile World Congress in 2008
- 2004-2005: ST-Ericsson started research and standardization activities related to LTE
– ST-Ericsson launches feature rich mobile internet platform in China – T6718 enables development of cost-effective and power-efficient multimedia TD-HSPA handsets [May 27, 2010]:
The T6718 is the first commercial 65 nanometer-based TD-HSPA platform, enabling manufacturers to quickly produce compact, cost efficient and feature-rich mobile broadband handsets for the Chinese market. ST-Ericsson expects the T6718, which can support downlink speeds of 2.8Mbps and uplink speeds of 2.2Mbps, to be in commercial products from Q3 2010.
… Handsets based on the T6718 platform will be able to deliver up to seven hours of talk-time or 25 days of standby on one battery charge. Incorporating software support for Assisted-GPS (AGPS), the T6718 will also enable location-based services, such as navigation and local search.
The dual mode TD-HSPA/EDGE modem is integrated with an ARM processor to deliver small size, fast response time and low power. This is also the first TD-HSPA solution to take advantage of the additional size and power benefits of the 65 nm process node.
The T6718 delivers a rich Internet experience including fast browsing, streaming video, broadcast television and other multimedia services on a touch-screen display. The 5 Mpixel camera support and video recording capability coupled with the graphics hardware accelerator provide a great visual consumer experience. Furthermore, the T6718 has the lowest power consumption in its class which means more hours enjoying music, video, internet access and talking.
…
High performance and low power consumption
- The first commercial 65 nanometer based TD-SCDMA
platform on the market- Talk time up to 7 hours and stand by up to 25 days on one battery charge (standard 1000mAh battery)
- ARM926 processor up to 416 MHz
Cloud Computing Strategy for Digital China: Taiwan is leading the way except IOT
In my post Be aware of mainland China and Taiwan stronger manufacturing links in ICT [Sept 2] it has already been proven that mainland China and Taiwan are fast becoming essentially one in the important ICT sector. Moreover, it was a recent acceptance of IMT-Advanced (4G) for the next-generations of interactive mobile services, China is triumphant [Oct 24] as major effect of that acceptance. It is more visible for mainland China as for them the #1 issue is Could China close the gap in mobile Internet? It should! [July 21]. For Taiwan the issue in this regard was the one related to Intel dismisses WiMAX Program Office [July 1] only. With IMT-Advanced (4G) accepted by ITU the Taiwanese concern about their strong and already very much advanced WiMAX commitment has also been resolved since the WirelessMAN-Advanced within IMT-Advanced is in fact a kind of WiMAX 2.
With such triumphant continuation assured for both the Taiwanese mobile Internet as well as that of mainland China (see 3.9G TD-LTE rollout in 2012 with integrated 2G, 3G and 4G? [July 19]) for an ardent China technology watcher like myself the next issue is what about their cloud computing strategies?
For mainland China the most visible manifestations of any cloud foundation related strategies of their own have been the OPhone OS (OMS) 2.0 based on Android 2.1 [July 5] and the Mobile search SaaS battle [June 28]. On behalf of the large international ICT players, on the other hand, the most visible mainland China related cloud effort has been so far the SAP’s Business ByDesign SaaS to be relaunched on July 31 with mobility as one of key attractions [July 28] only. So a kind of core coverage has already been provided on my “Experiencing the Cloud” blog.
- Update: China Mobile Expands Cooperation With Taiwanese Suppliers on 4G Biz [Dec 30]
-With a TD-LTE (time division long term evolution) testing lab jointly established by Taiwanese end-user instruments makers in China becoming operational, China Mobile, one of China`s big three telecom service providers, will move to expand its cooperation with them on 4G business in the country soon.
Yvonne Li, president of Taiwan`s Far Eastone Telecommunications Co., Ltd., one of founders of the TD-LTE testing lab, has confirmed that several Taiwanese handset makers, including High Tech Computer (HTC) Corp. and Asustek Computer Inc., have sent their smartphones to the lab for testing, which will be adopted by China Mobile for launch in China in 2011 at the earliest.
Also, Taiwan-based MediaTek Inc., a globally leading handset IC designer, is expected to count on the lab to accelerate development of its chipsets for TD-LTE phones, industry insiders noted.
Through the testing lab, Li stressed that Taiwanese firms relative to 4G communications can tap China Mobile`s supply chain of 4G phones more easily in the future than before. In short, the lab will also help step up cooperation between the Chinese telecom service provider and Taiwanese manufacturers.
Li also indicated that his firm has moved to expand collaboration with China Mobile on value-added mobile services, with the former`s application software and e-book readers already available on the latter`s online shopping store. Prospectively, said, the cooperation will open the door wider to China`s e-book reader market for other Taiwanese firms in the future.
So far, China Mobile has decided to set up over 3000 TD-LTE base stations in six metropolises, such as Beijing and Shanghai, in China, and, to counter underdevelopment of related 4G phones, has planned to rely on Taiwanese suppliers` cutting-edge product R&D capability to boost promotion of the 4G services.
Taiwan-based mobile telecom carrier Far EasTone Telecommunications (FET) has launched 25 Chinese-language Android applications om Mobile Market, the online store operated by China Mobile, with market response better than originally expected, according to FET.
The 25 applications, with 23 ones free and two chargeable, are selected from S Mart, FET’s online store of which 40% are for chargeable download, FET indicated. The launch on Mobile Market has hit a record of 43,000 downloads a day and reached more than 140,000 downloads cumulatively, FET noted. With 40 more applications under review by China Mobile, FET expects to have 100 applications available on Mobile Market at the end of 2010.
Most of the applications on Mobile Market should be for free use in order to cultivate habits, a necessary measure to pave the way for launching more chargeable applications in the future, FET pointed out. FET plans to invest NT$300 million (US$9.6 million) in three years offering free applications to tap the China market.
- Update: Internet is Major Helper of Home Economy in Taiwan [Dec 17]
Taiwan has about 15.42 million computer users and 14.46 million being habitual Internet browsers, 63.9% of which have shipped [shopped?] online, up 10 percentage points from the corresponding 53.9% of last year, according to a recent survey by the Research, Development & Evaluation Commission (RDEC) under the Taiwan Cabinet.
Online shoppers have spent on average this year NT$13,864 (US$447.23) per person, surging 41.24% from last year`s NT$9,816 (US$306.75). In addition, 26.4% of the browsers have used online financial services, up five percentage points from that recorded a year earlier. Such uptrend reflects the increasing dependence on the Internet by Taiwanese in home economy, or the art and economics of home management.
The survey shows that 86 of every 100 households in Taiwan own computers, with 81 being online browsers. This year the proportion of mobile online users has increased to 53% from last year`s 41.9%; while 75.6% of the island`s 12-and-older people have used computers and 70.9% have used the Internet.
Some 64.9% of Taiwan`s online users have participated in Internet communities, 48.8% have joined MSN, and 41.4% have participated in Facebook, with 34.9% having set up personal blogs.
- Update: VIA, Skycloud to Jointly Venture Into Cloud Computing [Dec 17]
The joint venture … will be the first manufacturer of cloud computing equipment co-founded by industries on the two sides of the Taiwan Straits.
Tian [Sounin, Skycloud Chairman] noted that mainland China has included cloud-computing development in its 12th Five-Year Plan, setting to push for one mega cloud computing plan each in Beijing, Shanghai, Shenzhen, Wuxi and Nanjing in five years.
Of the five mega programs, the one for Beijing will cost at least RMB50 billion (US$7.5 billion at US$1:RMB6.6) in investment and create an industry revenue four times the investment costs. The one for Shanghai is also expected to create revenue the same size of the Beijing plan.
According to executives of Chunghwa Telecom Co., Ltd., the mainland`s top three telecom carriers—China Telecom, China Mobile and China Unicom—will also start their own cloud-computing programs.
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Taiwan`s Ministry of Economic Affairs estimated global revenue in cloud-computing industry will reach US$409.6 billion in 2012 and Taiwan has designed cloud computing as next NT$1 trillion (US$33 billion at US$1:NT$30) industry.
The cooperation is for Skycloud help CHT market CHT-developed cloud computing infrastructure and application services and ICT-based intelligent services/solutions for home, business and government use in China, with Skycloud to provide hardware and system integration services, CHT pointed out. In addition, CHT will set up an exhibition center of its cloud computing products in a cloud computing park developed by Skycloud in Beijing, with completion scheduled for the end of January 2011, CHT indicated. CHT will then introduce its cloud computing products, the HiCloud CaaS (compute as a service), to the China market in March-April 2011, the company noted.
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Skycloud, in order to promote cloud computing business, has set up 13 offices around China and the nationwide promotion network will be expanded to 35-40 offices in 2011, Tian [Edward, Skycloud chairman] pointed out. Skycloud has been in cooperation with Taiwan-based IC design house VIA Technologies, and both sides will set up a China-based joint venture in 2011 to develop terminal devices specifically for cloud computing application, Tian indicated.
- Update: Taiwan, China to Jointly Offer Cloud Computing Commercial Services [Dec 16]
Two top companies of Taiwan and China have signed a memorandum of understanding to start the cooperation on jointly tapping the commercial opportunities in cloud computing services for companies in the Greater China area.
Lu Shyue-ching, chairman of Chunghwa Telecom Co. and concurrently head of the Taiwan Cloud Computing Consortium (TCCC), inked the document with chairman Edward Tian of the Beijing-based Skycloud Technology (China), Inc.
The pact marks the closer cooperation between the two companies, but executives at Chunghwa Telecom, the leading telecommunications service company in Taiwan, said the project also represents the beginning of mutual assistance between the two sides of the Taiwan Strait concerning cloud computing services.
They said Chunghwa Telecom will team up with Taiwan-based enterprises to formally start providing services in the Chinese market in 2011, including shipping the turn-key projects there.
The partners of Chunghwa Telecom in Taiwan include Quanta Computers, Inventec, and Trend Micro Incorporated.
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Skycloud Technology, a leading cloud computing system integration company, has become a bellwether of the cloud computing sector in China after integrating resources at several other companies, including Centrine Data Systems, CE Open Source Software, and a software firm set up by the Beijing University of Technologyto form the China Cloud Computing Technology and Industry Alliance (CCCTIA).
Chunghwa Telecom is playing a similar role in Taiwan.
Shareholders of Skycloud Technology (China) also include Yahoo founder Jerry Young, and executives from Taiwan like chairman Barry Lam of Quanta Computer, president Chen Wen-Chi of VIA Technologies, and chairman Steve Chang of Trend Micro, a computer and Internet security company.
Skycloud Technology, which aims to bring enterprises in China into the “cloud era,” was understood to have won several contracts to develop cloud computing projects in China, including the one at Beijing Zhongguancun.
- Update: Chunghwa Telecom, Inventec Enter Into Cloud Computing Deal [Dec 31]
Chunghwa Telecom Co., Ltd. and Inventec Corp. yesterday announced cooperation on four cloud-computing projects, including establishing a cloud-computing equipment laboratory, developing cloud-computing equipment for end-user market, and setting up an online store offering content applications.
Also, the two companies decided to work with Skycloud Technology (China) Inc. on integrated solutions for mainland China`s cloud-computing market, which is estimated at around NT$1 trillion (US$33 billion at US$1:NT$30) over next five years.
Inventec will place all the application software it co-develops with content-service developers on Chunghwa Telecom`s cloud-computing Internet data centers set up around the island. Industry watchers said Inventec and Chunghwa Telecom do not rule out the possibility of founding a joint venture to develop cloud-computing application software. Chunghwa Telecom executives said the jury is still out on the joint venture plan.
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The idea of the two companies’ online content store is inspired by Apple Store. The online store will help Taiwan`s developers of cloud-computing software open online shops to sell their products.
- Update: Taiwan well poised to break into cloud computing: analyst [Dec 1]:
… Meanwhile, Platform Computing, a leading company in cluster, grid and cloud management software with 80 percent of the global market share, said on Monday that it planned to build an operating center in Taiwan within six months. The Canada-based company expects the new center to handle its cloud computing business in the greater China area …
- Update [Nov 22]: Taiwan is indeed recognizing its window of opportunity in cloud computing space on the Greater China market and elsewhere:
– Taiwan`s Cloud Computing Alliance to Tap Mainland China Market [Nov 22]
– Acer Debuts Cloud Computing Desktop Addressing Digital Home Market [Nov 22]
- Update [Nov 16]: Gene Perez from GMS (Santa Maria, California, US) noted in the comment below, that “labor is pretty damn cheap there as well”. Indeed, the graph below is showing the case for Taiwan (from U.S. Department of Labor, Bureau of Labor Statistics, Table 1 of International Comparisons of Manufacturing Productivity and Unit Labor Cost Trends or http://www.bls.gov/fls/prodsuppt.xls):
- Something similar for Greater China (PRC) from the same source [Nov 17] which shows that manufacturing employees in Greater China get upto 10 times less than even their counterparts in Taiwan — a huge competitive edge for many years and decades ahead which is when combined with cloud computing foundation will be an even more killing combination than upto now:
Table 1. Hourly compensation costs of manufacturing employees in China, 2002-2008
Year National currency basis
(Yuan)U.S. dollar basis
(US$)Index1
(US = 100)2002 4.74 0.57 2.1 2003 5.17 0.62 2.2 2004 5.50 0.66 2.3 2005 5.95 0.73 2.4 2006 6.44 0.81 2.7 20072 8.06 1.06 3.4 2008 9.48 1.36 4.2
The current issue for me is therefore Taiwan related. What is the cloud computing strategy in Taiwan? How that strategy has taken into consideration the huge potential of mainland China? Not only as a market to sell into but as well as a huge and growing ICT industry to collaborate with. What is the role of the government there? Etc.
Below are my findings for which it was more than enough to collect information from the relevant Taiwan Economic News of China Economic News Service (CENS). I would highly recommend to subscribe to that service.
- Items #1-3 are showing that Taiwan’s lead in cloud computing has been well established by their government led efforts in the last two years. Item #4-5 are indicating that from large international ICT players Microsoft has been the first to engage in this very early period. Item #6 is about the first government assisted megaprojects.
- Item #7 is referring to the latest Gartner view on mainland China.
- Item #8 is about the IOT (Internet of Things) situation (notable here is the active liason work of Newland Group of Greater China), while item #9 is about the cloud computing effort as a whole in Taiwan.
- Item #10 is about Intel’s involvement coming quite late to the party.
- Items #11-12 are about Chungwa Telecom (Taiwan’s #1 telecom service provider) efforts being with the government from the very beginning.
- Item #13 is a report about the one year results of another government lead effort to build a mighty e-Book Industry, application-wise closely related to the whole cloud computing strategy.
- Items #14-20 are about some “grass-root” efforts indicating the building strengths of ICT industry players in the joint cloud computing effort:
– #14: HTC which is also the most promising ICT brand in Taiwan [Oct 18]
– #15: a joint brain-drain effort by their major ICT players
– #16: BenQ-AUO Group
– #17: Taiwan Mobile and Far EasTone, not to lag behind Chunghwa Telecom
– #18: Inventec
– #19: Chungwa-Fujitsu collaboration
– #20: Hon Hai Precision Industry Co., known internationally as Foxconn
1. Taiwan`s MIC Prescribes Manufacturing-to-Service Upgrade to Sharpen Edge (2008/12/24)
Despite the global economic downturn, the Ministry of Economic Affairs in Taiwan and its Industry & Technology Intelligence Services (ITIS) have been sponsoring a series of seminars themed “Discovering Taiwan 2008: Building Future Industries.” As part of this program, the Market Intelligence Center (MIC) of the Institute for Information Industry (III) has been exploring, based on tapping opportunities within the information and communication technology (ICT) sector, various issues, including “the developmental trends of Taiwan`s IT sector; building new superiorities in Taiwan`s IT sector by tapping green concepts and values; and the outlook on the ten key IT software issues in 2009.”
The MIC believes that it is critical for Taiwan to upgrade its industrial competitiveness by shifting from manufacturing to offering service-oriented products.
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Top-10 IT Software Issues
After intensive investigation and interviews with companies and experts, MIC summarizes in the following the 10-top issues concerning the IT software industry in Taiwan.
1. Microsoft … Windows 7 operating system in 2010 …
2. IT software developers … vital to focus on energy-saving, carbon-reduction in 2009, as global information-software developers try to build new products … to help enterprises cut energy consumption and upgrade IT equipment operation efficiency in 2009.
3. The increasingly mature business model Cloud Computing, or the Internet-based “Cloud” development and use of computing. It is computer tech that enables offering IT-related capabilities as service, allowing users to access technology-enabled services online. With such increasingly mature computing meeting the trend of businesses to streamline computing equipment, Cloud would gain more attention and stir more buzz in 2009.
4. The Software as a Service (SaaS) will become a major option for enterprises. Eliminating the need to install, run an application on customers` own PC, SaaS is a model of software deployment that offers as service customers to access, run programs online. Like the Cloud Computing, SaaS allows enterprises to better control costs for software installation, maintenance, making such option a top-choice for SMEs.
5. With SOA (Service Oriented Architecture) solutions for systems development and integration increasingly maturing, and after IT software developers` aggressive promotion, such solution will no longer be a buzzword but more widely adopted in 2009.
6. Open-code software to be used for mobile applications: After Google`s promotion of Linux cellphone open software architecture and Nokia`s release of the Symbian code, open-code software will be rapidly applied in mobile applications in 2009.
7. … information security of smartphone applications …
8. Personal Data Protection Law …
9. Taiwan`s contract software-developers …
10. Knowledge Process Outsourcing or KPO will continue to gain momentum, with the American legal profession already adopting such model. KPO is simply having staff in a different company or subsidiary of the same firm in the same country or offshore do knowledge- and information-related work to save cost, or a form of outsourcing. The highly localized, customized KPO is the next stage in the IT-outsourcing evolution.
2. Four Taiwanese Companies, Institutes Set Up Taiwan Cloud Computing Center (2010/01/29)
The four members include telecom carrier Chunghwa Telecom Co., Ltd. (CHT), anti-virus software company Trend Micro Inc., government-sponsored technology R&D institute Industrial Technology Research Institute (ITRI), and information technology (IT) industry knowledge center Institute for Information Industry (III).
The center will be responsible for helping push six emerging industries on the island into the cloud computing field, and develop Taiwan into a global supply base of cloud-computing equipment and an application headquarters.
Taiwan`s Premier Wu Den-yih said earlier that the TCCC is expected to further upgrade the development of local information and communication technology (ICT) industry and that the Executive Yuan (the Cabinet) has enlisted cloud-computing a key sector for priority development.
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Targeted cloud-computing applications in Taiwan include medical-care and educational industries in the initial stage; as well as six emerging lines for the second stage, such as green energy, tourism, health-care, biotechnology, dedicated agriculture, and culture/creativity industries.
3. ITRI Kicks Off Operation of Cloud Computing Research Center (2009/12/29)
Since setting up the Cloud Computing Research Center in September of 2009, the ITRI has actively recruited top engineers with related technical background, including Dr. Chiueh Tzi-cker, the head of the center, and sought cooperation with enterprises, in an effort to activate the center as soon as possible and assist industries on the island to carve out new niches through earlier involvement in the technology.
Chiueh noted that the center will be dedicated to development of software, hardware and application services based on cloud computing technology. Plus, he added that ITRI will establish a containerized data center, which will be installed with a total of up to 2,000 servers and related necessary equipment.
4. MOEA Signs MOU With Microsoft to Tap Cloud Computing Technology (2009/11/09)
Besides, Taiwan`s Economic Minister Y.S. Shih and Microsoft`s CEO Steve Ballmer also announced at the MOU signing a joint investment to establish the “Software and Services Excellence Center” on the island, which will employ engineers from Taiwan`s nationally funded Industrial Technology Research Institute and Institute for Information Industry to develop and apply the could computing technology.
Also, Shih said that through collaboration with Microsoft, Taiwanese R&D institute and enterprises can gain invaluable experience in development of application services based on the technology. Besides, he added, technically supported by Microsoft, the government can also effectively assist local enterprises to apply such technology to step up development of the island`s emerging industries as creative culture and e-book reader sectors.
… Microsoft has also signed a cooperation agreement with Taiwan`s largest telecom company, Chunghwa Telecom Co., to develop application services and platforms based on the technology.
5. Microsoft to Pour 90% R&D Resources Into Cloud Computing (2010/10/28)
There are many opportunities for Taiwanese OEMs/ODMs (original equipment /design manufacturers) in the “cloud computing” era, due mainly to strong demand for data-center construction and hardware such as servers, according to Zhang Yaqin, corporate vice president of Microsoft and chairman of Microsoft`s Asia-Pacific R&D Group.
In addition, Zhang said, Taiwanese information technology (IT) hardware makers have enjoyed strong advantages in making terminal products.
In the future, Zhang said at a recent IT industry trend forum held in Taiwan that major battlefields of the IT industry would lie in platforms, cloud computing, and portable devices. Any company that wins in the three fields would be the next-generation leader, Zhang said.
6. Multibillion Cloud Computing Projects Kick Off in Taiwan (2010/07/09)
At a cloud-computing forum recently held in Taipei, attending Taiwan government officials and top executive of Taiwan`s No.1 telecom carrier announced the commencements of their five-year, multibillion-dollar cloud computing projects.
Government representatives said the government will funnel NT$24 billion (US$750 million at US$1:NT$32) in five years into cultivating Taiwan`s cloud-computing industry, with the ultimate goal set to transform the island`s information-communications technology (ICT) industry into the cloud-computing industry.
Chunghwa Telecom Co., Ltd. will invest NT$40 billion (US$1.2 billion) in five years to set up the island`s biggest cloud-operation and data centers, the company`s chairman, S.J. Lu, vowed,
To smoothen the development of the Taiwan industry as expected, a cloud-computing alliance representing around 80 of the island`s manufacturers will set up a system-test platform, according to Lu, who is chairman of the alliance.
7. Gartner Says IT Spending in China Will Reach $216.7 billion in 2010 (2010/05/07)
… the IT economy in China is driven by large verticals, rather than by consumer IT spending; however, it is slowly evolving toward the consumer market.
… Demand from Chinese companies for emerging technologies like software-as-a-service (SaaS), virtualization, cloud computing, unified communications and green IT is low but rising. IT vendors should help their channel partners continue to build skill sets around these emerging technologies, as spending on these technologies may help drive IT spending to 2013 and beyond.
8. MIT-invented IOT Seen as Moneymaker for Taiwan and China (2010/06/29)
Even in this age of lightning speed Internet communication and technologies, the concept of IOT (Internet of Things), attributed to the 1999-founded Auto-ID Center of the Massachusetts Institute of Technology (MIT), is reportedly just catching on with firms in Taiwan and China. IOT, arguably the Net-era sibling of the original universal bar code that is still ubiquitous and tracks goods in quantifiable terms, is manifested as a self-configuring wireless network of sensors whose purpose is to interconnect RFID-tagged routine things via the Internet.
Companies in Taiwan and China eager to tap business opportunities of Internet of Things will form an alliance in late June to develop industry standards for their operations in Greater China.
The alliance will consist of telecoms from China such as China Mobile, China Unicom and China Telecom, as well as those from Taiwan as Chunghwa Telecom, Far EasTone Telecom and Taiwan Mobile. Such move reflects the telecoms` optimism about the potential of IOT, touted as the next major moneymaker in telecommunications valued at US$1 trillion worldwide by 2020, as well as seen by leading economies as a pivotal industry to drive growth and offset economic downturns.
[More information: Heavyweight Manufacturers Co-open Cross-Strait IOT Alliance (2010/07/21); ??? “Sensor China” Internet of Things Alliance established in our city, Wuxi Daily (2010-6-28) ??? <<< the exact relationship is not yet clear ]President Barrack Obama of the U.S. reportedly equates IOT with green energy in degree of importance, believing these two key sectors can generate short and long term benefits.
Futuristic Inventory Management
As with the UPC or barcode, industry executives say that if daily objects like canned goods, books, shoes or auto parts are integrated with micro-identifications that are linked via the Internet, depleting stock or product waste will be minimized as suppliers can track effectively and instantly inventory levels, whether in Mumbai or the Mojave Desert. Industry watchers say that IOT can theoretically encode 50 to 100 trillion objects and track their movements via the Net.
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China Mobile president J.Z. Wang summarizes IOT as “extensive sensing, reliable transmission, and intelligent treatment.” Market analysts at the Topology Research Institute, a Taiwan-based market consultant, cites a real-world product incorporating extensive sensing: the world`s first IOT-enabled fridge that was recently introduced by the Haier Group, China`s No.1 household appliance maker. Linked via the Net to the supermarket, the fridge has a display panel that tells the user freshness of foods in the supermarket as well as characteristics, origins of food stored in the freezer.
Upbeat Outlook
Despite its budding stage in China, revenue from the IOT sector as from infrared sensors and RFID manufacturing is expected to top US$14.7 billion by the end of this year and US$36.7 billion by 2015.
During a tour in August 2009 of the Wuxi Internet of Things Research Institute, Chinese premier J.B. Wen proposed to set up the “Experience China” center to enable the world to experience everything in China through IOT applications. Now upgraded to a national organization, the center in Wuxi, Jiangsu Province is China`s first IOT city.
Also China has invited Taiwan`s IOT developers to visit the officially-invested IOT facilities in Wuxi, with the invitees including Chunghwa Telecom, D-Link, Industrial Technology Research Institute (ITRI), GemTek, First International Telecom, Tatung, and Alpha Networks.
Wen`s IOT vision and instructions have spawned a slew of developments: Since early this year, China has accelerated interconnecting telecom networks, telecasting and broadcasting networks and the Internet, offering subscribers on a single platform wide ranging services including voice, data and telecasting and broadcasting, with the triple-play network considered the foundation of China`s IOT future.
Vice Chairman of Chinese National Development and Reform Commission (NDRC) X.Q. Zhang says that the commission will aggressively promote six measures to develop IOT and other emerging industries in China, including interconnecting the three networks, inspiring investments in IOT projects, and creating demand for IOT applications.
IOT Fever
Apparently China is serious about building the IOT sector in the nation. Chengdu, capital city of the southwestern province of Sichuan, announced in May a municipal IOT project with estimated revenue of US$4.4 billion; Guangzhou, the capital city of the southernmost province of Guangdong, announced plans to generate IOT revenue of US$14.7 billion in five years; Shannxi Province has launched an IOT alliance; Jiangxu Province has started a plan to build an IOT industry valued at US$58.8 billion; and Beijing announced the establishment of a national committee to set IOT standards.
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Y.J. Lee, a senior market researcher at Topology, advises Taiwan`s IOT developers to watch closely China`s standardization of its RFID and electronic-labels, as well as try to work with China`s agency on IOT protocols based on its homegrown TD-SCDMA 3G technology and take part in China`s IOT infrastructural projects. Lee also believes that entering China`s market and working with its standard-setters will help Taiwan`s IOT developers penetrate other emerging IOT markets, as well as become a dominant global player.
Lee notes that Taiwan`s IOT developers lag their Chinese counterparts as China Mobile, China Unicom, Invengo Information Technology and Tongfang in terms of network and service technologies, as China offers opportunities for field testing of integrated systems. In contrast, Taiwan is ahead of China in integrated-circuit design, components and equipment manufacturing, making the two sides more friend than foe.
Taiwan Makers Contracted
As such, the Newland Group in China, recognized as the No.1 IOT equipment supplier in Greater China, recently announced it would contract Hon Hai Precision Industry Co., Ltd., United Microelectronics Corp. (UMC), Largan Precision Co., Ltd. and Faraday Technology Corp. as suppliers. [See also: Newland Europe & Taiwan.]
[From that recent announcement: “Wang said she had approached Chairman Terry Gou of the Hon Hai Group and Honorary Vice Chairman John Hsuan of UMC over cooperation deals on Internet of Things. She added that the Internet of Things industry in mainland China and that in Taiwan can complement each other with their own advantages. For instance, Taiwan is good at raid frequency identification (RFID), high-end chips, barcode test, and consumer-premise equipment while the mainland is adept at matrix code and sensor transmission. Newland’s executives pointed out that Newland is moving to integrate upstream, middle-stream and downstream sectors of Internet of Things to constitute a complete supply chain for the mainland’s Internet of Things market.”]
Newland is one of the three Chinese manufacturers contracted by China Telecom, China`s No.1 telecom carrier, to supply IOT equipment.
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Regarding Taiwan`s lack of field testing of integrated systems, Topology`s Lee suggests Taiwan`s IOT developers focus on applications for urban life, transportation, residence, finance, retail, energy, production, and agriculture.
Wireless Sensor Network
Y.S. Hsieh, another Topology analyst, suggests Taiwan`s equipment supplier emphasize wireless sensor network, with service providers to use the network to develop IOT applications like intelligent data transmission system, homecare for seniors, as well as home and community security. She notes that although manufacturing of WSN equipment as chips, modules and end equipment is mature in Taiwan, very few developers are capable of integrating such equipment and no open interoperability platforms have been set up on the island. These deficiencies hamstring development of Taiwan`s IOT industry, she stresses.
China`s significance in global RFID manufacturing, including manufacturing of tag, reader, and infrastructure equipment, also strengthens its IOT development, according to watchers in Taiwan. China`s RFID strength is driven by robust demand, which totaled around US$1.4 billion in 2008, with the global market valued at US$5.2 billion, up from 2007`s US$4.9 billion.
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9. Taiwan Sees Sunny Future in Cloud Computing (2010/07/22)
The government of Taiwan is vigorously working with the island`s information and communications technology (ICT) sector on strategies to facilitate the development of cloud-computing industry. The emerging industry has been singled out as an area that could fast-forward the island`s ICT sector into a leading provider of system-integration services incorporating software and hardware.
Cloud computing is a cost-effective alternative for delivering computing power to organizations over the Internet. Computer hardware, software and information are provided online based on demand, like electricity, and service is charged by usage. Some analysts figure that cloud computing can save a company of 200 employees about 30% on software expenses.
Late last year, the United States Federal Government launched the Apps.gov, a cloud-computing application site, which is a major feature of the Obama Administration`s initiative to cut down operating costs while boosting government efficiency. The federal government is estimated to be able to save US$75 billion by offering administrative services via the cloud site.
Government Support
Taiwan`s government-backed Industrial Economics and Knowledge Center (IEK) estimates that the global market for cloud applications and services will top US$160 billion in 2015. The Executive Yuan, Taiwan`s Cabinet, projects the island`s cloud-computing industry will generate revenue totaling NT$1 trillion (US$31.2 billion at US$1:NT$32) and create 50,000 jobs in 2014.
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The government`s first step to materialize its cloud policy is “Government Cloud” or “G Cloud” plan, which will provide contracts to local manufacturers to help them foster cloud computing capability. “G Cloud” will offer applications associated with small and medium-sized enterprises (SMEs), medical services and healthcare, homeland security, online education, digital content, tax, electronic invoice, trade, and finance services. Applications will be stored in “container data centers,” which eliminate the need to download memory-consuming applications to end-user devices like desktops, laptops, and handheld gadgets.
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Senior government officials pointed out that South Korean and United States governments have combined information centers in all government organizations across the two countries into two to three centers and are equipping these centers with cloud-computing capability to cut software leasing costs.
Cloud Computing Alliance
An alliance of 65 Taiwanese manufacturers is planning to co-organize a private company to vie for contracts under the ambitious project. The alliance was launched on April 7 with coordination by ITRI. Alliance members include Wistron, Quanta Computer, Inventec, Accton Technology, Chunghwa Telecom, Far EasTone Telecom, and Taiwan Mobile.
… Chunghwa, Taiwan`s No.1 telecom carrier, will help the government foster Taiwan`s cloud-computing industry with its Internet Data Centers (IDCs) across Taiwan. The company is building a center in Banqiao, Taipei County. … Inventec Corp. Chairman Shiqin Li, expects Taiwan to ship its first integrated cloud-computing system by the end of this year. Insiders of the Taiwan industry estimate that the United States or mainland China would be Taiwan`s first export destination.
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Quanta Computer, the world`s No.2 contract supplier of laptops, has entered into alliance with Chunghwa Telecom to set up a cloud-computing platform for enterprises and will open a cloud-computing company at yearend to sell the applications.
The enterprise cloud-computing platform, Quanta`s vice president, T.J. Fang stresses, will not only provide applications to Taiwan`s 80,000 manufacturers but also to the millions of manufacturers in mainland China. He adds that the platform`s applications may be bundled with Quanta`s servers and storage equipment or even as total solutions.
Currently, Quanta`s enterprise cloud-computing applications will at least include enterprise resource planning (ERP), supply-chain management, work-process management, provision of software crucial to product designs, and emergency response centers (ERCs).
According to Fan, Quanta has been involved in cloud-computing development for some time and sees the new IT sector as a chance to evolve into a software-service provider from a hardware manufacturer. “Quanta has established an R&D center to develop application software and expects cloud computing to bring it another NT$1 trillion [US$31 billion] of revenue after notebook-computer production,” he says. He stresses cloud-computing application software can help small and midsize businesses slash software licensing fees.
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Microsoft on Board
Taiwan`s strength in developing the cloud-computing industry convinced Microsoft to open a Software and Service Excellence Center (SSEC) in Taiwan, its first on the island and fourth in the world, in early June. Microsoft will work with the first batch of Taiwanese tenants in the center, including Quanta, Inventec and Delta Electronics, to develop new generation of cloud servers.
… Microsoft expects more than 100 Taiwanese ICT companies to join the center in developing cloud computing solutions over the next three years.
Security Concerns
W.N. Jan, a senior consultant and director general of Market Intelligence and Consulting Institute (MIC), categorizes the cloud industry chain into service provision coupled with transmission and service equipment. “MIC`s viewpoint is that service provision involves bigger business opportunities and its business model emphasizes offering services on the Internet. Accordingly, information security will become a top concern in cloud applications,” he notes.
MIC`s surveys, Jan says, show that Taiwan`s enterprises still are hesitant to embrace cloud services all because of security concerns. “CIOs and CTOs are reluctant, or even opposed, to using cloud services,” he stresses. To fix the issue, the Legislative Yuan, he says, is revising an act associated with protection of computer-processed personal data to regulate all enterprises holding personal data.
10. Intel Joins Hands With Taiwan in Developing Cloud-Computing Technology (2010/10/29)
Paul Otellini, president and chief executive officer of Intel, signed a memorandum of understanding (MOU) on cooperation with the Ministry of Economic Affairs (MOEA) yesterday (Oct. 28), aiming to join hands with the Taiwanese government, universities, and enterprises in the development of the cloud-computing industry.
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Otellini pointed out that the Internet population will top 4 billion in the coming years, leading to the emergence of various Internet-access devices, such as TV and set-top box, which will bring good business opportunities for both Taiwan and Intel.
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He pointed to the tremendous change in the pipeline for Internet-access devices, whose functions will cover intelligent control, two-way interaction, hi-tech sensing, and distant care, saying changes in this sector in one year will equal changes in the past 50 years. In the future, mobile devices will have constant connection with the Internet and digital signals, enabling people to access information and entertainment services anytime, according to him.
Lu Shyue-ching, chairman of Chunghwa Telecom, reported that his company has signed an MOU with Intel for the joint development of cloud-computing technology, as well as close- and open-end platforms for smart TV. The company has also joined Open Data Center Appliance, in order to accelerate the development of cloud-computing technology. In addition, it signed an MOU with NTT.com the other day for the same purpose.
11. Chunghwa Telecom Projects Sales at NT$220B in 2015 (2010/10/19)
The telecom carrier has designated overseas operation, cloud computing, iEN, movie-on-demand and value-added mobile services as major growth drivers for sales over the next five years. Mainland China is set to be the company`s major overseas market as soon as its mainland branch starts operation early next year.
For cloud computing service, the company will spend NT$40 billion (US$1.29 billion) over next five years beginning this year on installation of cloud computing facilities. The service is estimated to drive up the company`s sales over the next 10 years.
12. Chunghwa Telecom Unveils Five-Year Roadmap (2010/07/27)
Over the next five years, the company`s investments will focus on cloud computing, digital convergence, intelligent energy network, information-communication technology, movie-on-demand (MOD) service, value-added mobile service, and reinvested businesses at home and overseas.
Many of the investment projects are associated with the bright future of related markets in mainland China, where the central government has worked out development projects for intelligent energy network and digital convergence industries.
13. Year One for Taiwan`s e-Book Industry (2010/02/09)
Joining the global rush into the rapidly evolving e-book market, Taiwanese e-reader makers are joining hands with content suppliers in launching e-book services whose reach could extend to the huge market across the Taiwan Strait.
Such ventures were at center stage during the 2010 Taipei International Book Exhibition, held at the Taipei World Trade Center on Jan. 27-Feb. 1.
BenQ, for instance, teamed up with eBook Japan to launch eBook Taiwan during the book fair. eBook Taiwan enables readers to tap a bonanza of digital content via its e-reader, dubbed the BenQ nReader.
Jerry Wang, vice chairman of BenQ, claims that the combination of eBook Taiwan and BenQ nReader offers consumers a reading experience approaching that of print publications and enables them to buy books with just a touch on the e-reader.eBook Taiwan is an open-end platform with a webpage featuring a safe, stable, smooth, and simple design. It serves as a neutral outlet for Taiwan`s digital-content providers, with a reasonable sharing of profits and a DRM (digital rights management) mechanism capable of offering publishers full protection of their rights. Thanks to the support of cutting-edge technologies such as a high-clarity, high-compression post-production tool, chapter-based sales management, and the ability to support multiple formats including ePub, EFI, PDF, and TXT, e-books can be easily put on the shelf of the platform. This capability enhances timeliness and enriches the content of the platform, which in turn will boost consumer willingness to use it.
In addition to the provision of popular books and magazines in traditional Chinese characters, simplified Chinese characters, and Japanese, eBook Taiwan also offers publication and delivery of magazines simultaneously with the print versions. More than 10,000 books and magazines covering a variety of fields are now available on the platform, and readers can even access parts of books and summaries of feature reports in magazines before placing purchase orders.
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In view of the e-book surge, market insiders are calling 2010 “year one for Taiwan`s e-book industry.” This underscores the rosy outlook of the industry, which has been incorporated into the government`s flagship development plan for the digital content industry. The government predicts that the production value of the local e-book content industry will hit NT$30 billion (US$937 million at NT$32:US$1) in two years and NT$100 billion (US$3 billion) in four years.
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Attracted by the huge market potential, growing numbers of domestic electronics firms have been jumping onto the bandwagon for e-readers and related products. The Economics Ministry reports that total investment by local firms in e-readers and components/parts has topped NT$15 billion (US$469 million), with major participants including Prime View, BenQ, Delta, Hon Hai, Gold Circuit Electronics, and ASUS.
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The Topology Research Institute predicts that Taiwan`s e-reader market will reach 100,000 units this year, compared with 1 million in the Chinese market and only a fraction of 9.1 million globally (including 6.8 million in the U.S.). Topology believes that the global e-reader market will remain in the fledgling stage for two more years before embarking on a period of vigorous development.
14. HTC Debuts Two New Models in London (2010/09/16)
Along with the new models, HTC also debuted a free Internet service, dubbed HTCSense-com, which will enable subscribers to tap cloud-computing service offered by HTC. The service is similar to Microsoft’s MyPhone service and Apple’s MobileMe service. The service, for instance, enables owners to give directions to their lost phones via the Internet, such as making it ring, sending messages to the phone for the obtainer, locking up the phone, or even eliminating data stored in the phone.
15. Taiwan`s Hi-Tech Manufacturers Go to U.S. to Solicit Talents (2010/09/13)
Delegation members planned to offer a total of 1,200 jobs covering R&D specialists, market researchers, market managers, and accountants.
The delegation was accompanied by a cloud-computing alliance, which would visit Intel, Microsoft and IBM.
16. BenQ-AUO Group Eyes US$22 B.-beyond Revenue This Year: Chairman Lee (2010/09/01)
According to Lee, BenQ-AUO will focus its future development on medical care, cloud computing, green energy, and environment protection etc.
BenQ-AUO group has opened a hospital in Nanjing, Jiangsu Province of China with more than 3,000 beds. The group is scheduled to inaugurate another big hospital by the end of 2011 in Suzhou, Jiangsu Province of China.
17. Taiwan`s Top 3 Telecom Companies Zero in on Market for Application Services based on Cloud Computing (2010/02/09)
Not to lag behind Chunghwa Telecom, Taiwan Mobile and Far EasTone have been stepping up their business deployment in the emerging segment for cloud computing technology-based services.
For instance, Taiwan Mobile has cooperated with Fubon Financial Group on constructing an extensive cloud computing network for their respective subsidiaries.
… Far EasTone has also been in talk with HP, IBM, Quanta Computer, Data Systems Consulting Co., Ltd. and related software developers on formation of a cooperative alliance, in which the telecom company will take charge of building a cloud computing platform and other members will supply needed software and hardware for operation of the platform.
18. Inventec Announces Venturing Into Cloud Computing, Online Gaming (2009/12/16)
Inventec Corp. of Taiwan recently announced plans to step into the high-potential cloud-computing business, and will provide software download online by the year-end, as well as moving into online gaming in 2010.
… Chiu Chuan-chen, president of Inventec`s software business division, pointed out that his company has been cultivating the software business for more than 10 years and now is the right time to commercialize products. Inventec`s software business would first focus on two major fields, including the intelligent learning and healthcare, while keeping an eye on online gaming.
19. Chunghwa, Fujitsu Collaborate on E-Commerce and Others (2009/11/17)
The pact is part of Chunghwa Telecom`s efforts to enhance cooperative ties with Japanese hi-tech manufacturers. … In the near future, Chunghwa plans to work with Japanese internet-TV, digital-content and TV shopping service providers.
20. Hon Hai Joins Forces With III to Develop Cloud Computing Software (2009/06/03)
Hon Hai Precision Industry Co., Ltd., the largest EMS (electronic manufacturing service) provider, has joined forces with the government-funded Institute for Information Industry (III) of Taiwan to develop Cloud Computing application software as the first Taiwanese company to get engaged in the field.
Hon Hai and III will seek financial aid from the government for establishing the first lab of Cloud Computing as a joint venture between industries and the government on the island. So far, the Ministry of Economic Affairs has already lifted restrictions on official subsidization of development of related application software, paving the way for local companies to dedicate their energies to the field.
Hon Hai has decided to invest a total of NT$1.9 billion (US$58.46 million at US$1: NT$32.5) in constructing an R&D building in Kaohsiung Software Technology Park, southern Taiwan, to specialize in research and development of digital contents and information service offerings.
…
On the other hand, by investing in R&D of Cloud Computing, Hon Hai is to diversify its business operation into information services from manufacturing. Furthermore, the firm plans to apply Cloud Computing platform to the long-distance health care, showing its determination to venture into the medical care industry.
Marvell ARMADA with sun readable and unbreakable Pixel Qi screen, and target [mass] manufacturing cost of $75
Update: OLPC plans solar charging, satellite Internet for XO-3 [July 20, 2011]
The XO-3 will become available early next year or perhaps sooner, and price is still being determined, but it will still be under $100, Negroponte said.
The tablet will also include a camera on top of the screen, placed inside the bezel surrounding the display. A microphone will be placed in the bezel under the screen, and USB 2.0 ports and a headphone jack will be on the sides.
Decisions are still being made about the display, which is holding up development of the device, Negroponte said. OLPC wants a transflective screen, much like the current XO, but with improved richness in e-ink and transmissive modes. OLPC plans to use spin-off Pixel Qi’s hybrid screen …
The original post:
Pixel Qi’s problems with mass manufacturing are well described in the latest June 3. update of Pixel Qi’s first big name device manufacturing partner is the extremely ambitious ZTE [Feb 15, 2011].
This all comes together in a prototype form to be shown sometime in the middle of February 2011 as per OLPC XO-3 Tablet Delayed [Nov 3]. Product delivery would be ready by the end of 2011 in a form suitable for developed countries, then a year later in another form for developing nations of the world. While an advanced cloud client capability based on then latest version of Google’s Android operating system will be perfect for the 1st world countries, the 3d world will get a next generation version of the current XO-1 and XO-1.5 computer from OLPC .
Follow-up: High expectations on Marvell’s opportunities with China Mobile [May 28, 2011]
Update: that plan is going well with the progress as best reported by XO-1.75: cutting through the nonsense [Jan 11, 2011] referring to the corrections by the VP of Hardware Engineering at OLPC to errors in a CES 2011 report, and also comments throughout the blogosphere regarding the absolutely coincidental announcement by Microsoft of their ARM support:
There were several errors in that [CES 2011] news article [with title: OLPC cuts price of XO 1.75 laptop to $165, power by half [Jan 7, 2011]] which I would like to clear up:
- the XO-1.75 will not have an 8.9” screen, but will continue with the sunlight readable 7.5” screen designed by Mary Lou Jepsen (now at Pixel Qi) used in the XO-1 and 1.5.
- the $165 price is fiction (BOM price hasn’t been finalized), but probably not very far from the truth for the non-touchscreen equipped version. Please don’t forget that since we don’t add any profit margin, the laptop price directly depends on the volume ordered.
- the switch to ARM was completely independent of any future support for ARM in Windows. That support was announced this week, while I’ve been pursuing this ARM design for three years, with active development over the last eight months. Furthermore, we are using the Marvell Armada 610, which won’t be supported by Windows (if you believe M$).
- Linux has shipped, and will continue to ship, on EVERY XO produced. You can believe random commenters, or you can believe the person who signs off on every SKU produced.
I’ll also add that a lot of work has gone into software development, including porting Fedora 14 to ARM and adding multi-touch support to the Sugar UI. This has been a long time in the making, and the announcement of Microsoft’s ARM port is a coincidence. Sorry, no riveting conspiracies here.
Some media reports have been implying that mass production will start by mid-year. This is incorrect. It may possibly be that the design is finalised by then, but planning and tooling for mass production and deliveries is quite an endeavour beyond that.
If you want the real information on the XO-1.75, look at the OLPC Wiki page. Right now, they’re up to Alpha test model 2. If you want to view or take part in the development discussion, head over to the devel mailing list (strictly speaking, this list is for software development, but the community are discussing the hardware there too).
Notes [Jan 11, 2011]: On the OLPC Wiki page for the XO-1.75 there is a link to the Announce: OLPC software strategy [July 7, 2010] in which you can find the following crucial statements:
XO-1.75 and beyond
XO-1.75 software development is underway. Today we’re announcing that we’re planning on using Fedora as the base distribution for the XO-1.75. This wasn’t an obvious decision — ARM is not a release architecture in Fedora, and so we’re committing to help out with that port. Our reasons for choosing Fedora even though ARM work is needed were that we don’t want to force our deployments to learn a new distribution and re-write any customizations they’ve written, we want to reuse the packaging work that’s already been done in Fedora for OLPC and Sugar packages, and we want to continue our collaboration with the Fedora community who we’re getting to know and work with well.
[Fedora was chosen more than two years ago and delivered in the very convenient Fedora 10 on SD card [Nov 28, 2008] format. This is why it has such a widespread use in the OLPC community, especially among adults who do not want to use the child focused graphical interface called Sugar but rather a desktop environment on their XOs.]
BACK TO THE ORIGINAL [Nov 4, 2010] POST:
Whatever will be delivered by Windows 7 tablets/slates with Oak Trail Atom SoC in December [Nov 1] or anything else the next XO-3 tablet effort outlined below will be an enormous threat to the current ICT establishment, everybody included (mighty Apple as well).
Two undisputed technology leaders are behind the whole engineering effort: Marvell Technology Group Ltd. for the leading System-on-a-Chip (SoC) capability and Pixel Qi Corporation for the incredible screen.
Follow up: Marvell to capitalize on BRIC market with the Moby tablet [Feb 3, 2011]
Follow-up: Kinoma is now the marvellous software owned by Marvell [Feb 15, 2011]
Update [Jan 6, 2011]: Marvell 100 series tablet [Jan 6, 2011] is giving quite a credibility to the follow-up project described in the rest of our post
[CES 2011] Marvell’s foray into the tablet market sees this rather cute and well designed model, the 100 series. Unlike other tablets that are in the market, this one comes with Android 2.2 (instead of 2.1), while sporting a rather young, all-white design with all the lines in the right places. A microSD memory card slot is there for expansion purposes, and you won’t get multi-touch support on the 10” display which is a bummer, so forget about zooming in or out in Angry Birds. There is 1GB of internal memory inside, while Wi-Fi connectivity is supported although 3G will not be present when it hits the market sometime this year for $199 a pop [with $99 manufacturing cost — see in the below video]. Of course, as with Marvell’s OLPC project, the 100 series will target the educational environment more. It is pretty heavy, but it won’t weigh a ton like most textbooks. Looks hardy enough to stand up to the rigors of restless kids, too! Interestingly enough, being an Android-powered device, it has more than the usual 4 buttons of Home, Menu, Back and Search, but will include the “Up” and “Down” buttons, too.
Update [Jan 10, 2011]: Mobylize Tablet on ABC News: Good to Know [Jan 10, 2011]
Note while watching the video that the LCD screen used in the tablet has wide viewing angle.
Update [Nov 2]: Sehat Sutardja: An Engineering Marvell by IEEE Spectrum [Nov 2, in print Oct 27 but with the title of Marvell Inside] is describing the extremely deep electronic engineering mentality lead by the CEO of Marvell Technology Group Ltd. as the secret recipe for success from the very beginning:
Sehat already had plans for the first product: a better read channel for disk drives. It sounds incredibly specialized and it is, but it’s also one of the drive’s key components. The read channel takes the analog signal coming from the magnetic head as it scans the disk, converts the noisy signal to digital, and puts that information out onto the bus that will take it to the computer. Existing read channels used a bipolar transistor on a complementary-metal-oxide semiconductor substrate (BiCMOS), but Sehat planned to use only CMOS. That way the channels could be manufactured by a chip foundry like the Taiwan Semiconductor Manufacturing Co., so Marvell wouldn’t have to build its own fab. Using CMOS also meant that the device would consume less power. This would, however, present an engineering challenge: Existing CMOS read-channel designs were much slower than BiCMOS.
… they convinced Seagate Technology to take a chance. Ken Burns, an executive at Seagate, told them that the company’s next-generation drive would need a read channel at 240 Mb/s—could Marvell deliver? … They told Burns yes. In less than three months the Marvell team hit the 240-Mb/s mark, and Seagate became Marvell’s first customer. … Today, in terms of units sold, Marvell has about 60 percent of the market for hard drive systems-on-a-chip.
“This little start-up, with one product line, put Texas Instruments out of the read-channel business,” Ohr [an analyst with Gartner] says.
Added later: Winner: Pixel Qi’s Everywhere Display by IEEE Spectrum [Jan 20, 2010] is well describing the innovative screen technology in a way that the leading mind behind, Ms. Mary Lou Jepsen is also well represented. Here is a key excerpt from that:
The Pixel Qi display consumes far less power than traditional LCDs, drawing a peak of about 2.5 watts, of which the backlight accounts for about 2 W, says Jepsen. Turn off that light and slow the refresh rate, and you can maintain a static image—such as the page you’re reading now—with just half a watt. That’s still more power than is needed by electrophoretic displays, the generic term for the kind made by E Ink [and used in most e-readers such as Amazon’s Kindle devices]. Electrophoretic screens are bistable, which means that the pixels can maintain a static image powerlessly. But e-paper also requires a higher operating voltage than the Pixel Qi screen, which means that if future e-paper displays offer faster refresh rates, their power advantage will likely wane.
… Pixel Qi has also beat E Ink to color. In the Spectrum conference room, Jepsen cranks the backlight all the way up to show off the color and video playback. The video is perfectly watchable, although it probably wouldn’t be your first choice if movies were the primary application [like with the TV sets]. The colors don’t look as saturated as they would on a glossy cinema display, but at least the blacks in dark scenes are very black. In other words, the Pixel Qi screen offers an excellent compromise for a class of gadgets defined by their low-cost versatility.
READ ALL the details below in order to understand the reality of the – seemingly, believe me just seemingly – bombastic claim in the introduction (… this will be an enormous threat to the current ICT establishment …)!
Here is the video interview accompanying the article referred in the introduction, to start with:
This engineering effort goes back to May with announcement that One Laptop per Child and Marvell Join Forces to Redefine Tablet Computing for Students Around the World [May 27]. The most important details are (emphasis is mine):
The new family of XO tablets will incorporate elements and new capabilities based on feedback from the nearly 2 million children and families around the world who use the current XO laptop. The XO tablet, for example, will require approximately one watt of power to operate (compared to about 5 watts necessary for the current XO laptop). The XO tablet will also feature a multi-lingual soft keyboard with touch feedback, enabling it to serve millions more children who speak virtually any language anywhere in the world.
The device is also decidedly “constructionist” in nature. By design, it combines hardware and software to deliver a platform that will enable educators, students and families around the world to create their own content, and learn to read, write, and create their own education programs and share all of these experiences via a mesh network model. The device will also feature an application to directly access more than 2 million free books available across the Internet.
“While devices like eReaders and current tablets are terrific literary, media and entertainment platforms, they don’t meet the needs of an educational model based on making things, versus just consuming them. Today’s learning environments require robust platforms for computation, content creation and experimentation – and all that at a very low cost,” said Dr. Nicholas Negroponte, Founder and Chairman of One Laptop per Child.
… “Marvell has made a long-term commitment to improving education and inspiring a revolution in the application of technology in the classroom. The Moby tablet platform – and our partnership with OLPC – represents our joint passion and commitment to give students the power to learn, create, connect and collaborate in entirely new ways,” said Weili Dai, Marvell’s Co-founder and Vice President and General Manager of the Consumer and Computing Business Unit. “Marvell’s cutting edge technology – including live content, high quality video (1080p full-HD encode and decode), high performance 3D graphics, Flash 10 Internet and two-way teleconferencing – will fundamentally improve the way students learn by giving them more efficient, relevant – even fun tools to use. …”
Marvell indeed has all the necessary SoC prerequisites and credentials for such a fantastic goal (both technically and market-wise) as described in my post Marvell ARMADA beats Qualcomm Snapdragon, NVIDIA Tegra and Samsung/Apple Hummingbird in the SoC market [again] [Sept 23] (BTW the most popular post on my blog by far).
The details of the original plan were described in OLPC’s Negroponte says XO-3 prototype tablet coming in 2010 [May 27] with an accompanying video interview shown below:
OLPC and Marvell collaboration has since significantly been strengthened as evidenced by (emphasis is mine):
One Laptop Gets $5.6M Grant From Marvell to Develop Next Generation Tablet Computer [Oct 4]
Negroponte says the deal, signed in the past week or so but not previously announced, runs through 2011. “Their money is a grant to the OLPC Foundation to develop a tablet or tablets based on their chip,” he says. “They’re going to put the whole system on a chip.”
… it will form the basis of what might be called an interim step, a tablet developed by Marvell (and also apparently modeled partly on its own Moby tablet for the education market) that is intended for children in the developed world. As such, it won’t be the machine OLPC wants to distribute in developing nations. … The Marvell tablet will also utilize the Android operating system, while the XO 3 will be based on Linux, among other differences, Negroponte says.
“The first one would definitely not have our brand. It’s a First World machine,” Negroponte says. The plans are for Marvell to develop this initial machine, in partnership with OEMs and a partner in education, and release it for sale sometime in 2011, he says.
Negroponte says a follow-on version, based more completely on OLPC’s designs, will hopefully be ready in 2012. “The second one…would have our brand on it, because it will be identified with and for the developing world,” he says.
OLPC’s Negroponte: Tablets must be a ‘constructionist’ medium [Sept 30]
Tablets are all about consumption, said Negroponte. “You could say that Apple makes peripherals for iTunes,” he said. In a developing world and educational environments, you need haptics and ways to make tablets constructive. “You can’t turn these kids into couch potatoes,” he said. “You learn by making.”
Cloud computing won’t fly where OLPC plays. “Clouds are fine for us, but there are no clouds over Ethiopia, Rwanda and Gaza,” he said.
Marvell co-founder talks technology in education, R&D [Oct 7]
On her relationship with Negroponte, Dai said she met him five years ago and they talked about moral causes and technology. Marvell had the mesh networking technology used in the original XO. “The priority was affordable technology for poor countries,” she said. “Nicholas set a bar. In many ways, he invented the e-book, netbook microcosm and form factor. The other piece was to make those devices affordable.”
What’s the OLPC’s role today? Dai said that in many respects the OLPC is a design shop—something Negroponte has noted after laying out plans for the next-generation XO. “OLPC sets a bar and the industry takes it and commercializes it,” she said. “It’s like the old days where Bell Labs would create and others would commercialize it.”
Marvell Delivers Vision of 21st Century Classroom Technology at NBC News’ ‘Education Nation’ Summit [Sept 27]
Marvell to Fund Next Generation Education Apps [Sept 27]
Marvell, one of the world’s largest chipmakers, announced today that it’s launching a competition to recognize and fund the most clever new education apps for classroom tablets. The challenge invites ambitious, intelligent software developers around the world to create apps that transform the way students learn. Three winners will share prize money totaling $100,000, along with access to Marvell’s considerable engineering resources for support and testing.
The $100K Challenge, unveiled at the NBC News’ Education Nation summit, is a part of Marvell’s Mobylize campaign, the company’s long-range commitment to mobilizing technology innovation, speeding education innovation and bringing to students everywhere the inexpensive yet powerful tools they need to learn, connect and collaborate in new ways.
The campaign and the $100K Challenge were inspired by Marvell’s new Moby tablet reference design. The classroom-friendly Moby tablet reference design is a high-performance, low-power device based on Marvell’s ARMADA™ application processor and Google’s Android™ operating system. It’s the platform for which developers enter the $100K Challenge will design their applications – and it’s perfect for the part. It’s equipped with 1080p HD, advanced 3D capabilities and full Flash internet. For developers, the Moby tablet reference design provides far-reaching possibilities. For students, it opens vast horizons, at a price school districts can afford.
Ms. Dai is the only woman co-founder of a major, public semiconductor company in the world, and has helped lead Marvell’s 15 years of growth from start-up to a current market capitalization of $12 Billion.
… Today, Marvell is the third-largest fabless semiconductor company in the world, and ships more than a billion chips per year. Marvell provides two out of every three chips used in storage media critical to the infrastructure of the Information Age; its broad portfolio of leading network and communications solutions and high performance, low-power chips have rapidly become the technology of choice behind a broad range of connected electronics — such as tablets, smartphones and other mobile devices. From a half dozen employees in 1995, Marvell has today more than 5,700 employees on four continents.
“It is my passion to work to bridge my two homelands – China and the U.S. – and try to promote cooperation and economic growth in both powerful nations, particularly in the areas of semiconductor, communications, education and green technologies,” said Weili Dai, Marvell’s Shanghai-born co-founder. “For that reason, I am very proud that the Governor chose to launch his Asia Trade Mission from Marvell’s Silicon Valley campus and then a few days later, visited our Shanghai design center. I am also proud that Shanghai government officials were able to join Governor Schwarzenegger in highlighting the exciting new developments at our Shanghai design center. It is an honor that reflects well on Marvell’s global leadership and growing industry influence.”
…
During his visit, the Governor toured demonstrations of Marvell’s latest communications, computing and consumer technology and presided over the dedication of the expansion plans at the company’s Shanghai Zhangjiang facilities, including the plans for a three-way research consortium between Marvell, China’s prestigious Tsinghua University and the University of California Berkeley. Additionally, Marvell announced its support of the Governor’s Executive Order to promote integration of advanced technologies in early education with a donation of eReaders and tablets to PS7 Middle School, a St. Hope Public School in Sacramento, California, and Zhangjiang Hi-Tech Experimental Primary School in Shanghai, China.
In China, Marvell has operations in Shanghai, Beijing, Hefei and Shenzhen. Marvell’s Japan design center is in Tokyo; its South Korea operations are in Seoul. Marvell has strategic business relationships with the world’s largest telecom, mobile, and consumer electronics manufacturers in the region.
The screen technology in question comes from Pixel Qi as per ONE LAPTOP PER CHILD AND PIXEL QI SIGN CROSS-LICENSE AGREEMENT FOR SCREEN TECHNOLOGY [March 30]. The details here are:
OLPC receives full license to all Pixel Qi “3qi” screen technology, including 70+ patents in process and all current and future IP developed by Pixel Qi for multi-mode screens. Pixel Qi is leading the design of new screens for OLPC’s next-generation XO laptops. The agreement also calls for Pixel Qi to receive full license to the dual-mode (indoor and outdoor) display technology used in the XO.
“A huge barrier to getting computers to mass use in the developing world is limited access to electricity. Pixel Qi is designing new screens for OLPC that will keep laptops going even longer between recharges and excel in long-form reading while providing color and video,” said Nicholas Negroponte, founder and chairman of One Laptop per Child.
… Mary Lou Jepsen, founder and CEO of Pixel Qi, added, “OLPC’s focus on the need for low-cost, low-power devices led me to invent power-efficient LCD screens that are optimized for reading. Commercial tablets, notebook computers and smart phones have precisely the same needs. This is one of the few examples in which cutting-edge computer technology first deployed for developing nations benefits the developed world as well.”
Pixel Qi is actually an almost three years old start-up by Mary Lou Jepsen, former CTO of OLPC. She made a very early commitment to support OLPC further on as described in her post about the Next Generation OLPC Laptop [May 21, 2008]. It contains a HUGELY important remark:
In essence, the future of computing is all about the screens.
She was a very early pioneer of that approach for the XO-1 computer designed by OLPC. Mark Foster, who was the engineering chief there, described her particular contribution (besides her overall influence as CTO) in Mark J. Foster at Stanford EE Computer Systems Colloquium (Part 1) [October, 2006] as (emphasis is mine):
Another thing that’s really unusual about our machine is the LCD display. Our CTO, in fact, has created something that is really special. What this panel does is unlike anything else I’ve ever seen. I’ve seen reflective color, I’ve seen transflective color, I’ve seen transmissive panels, I’ve never seen anything like this. This panel is truly a reflective monochrome panel. No backlight, you see a 1200X900 dot per inch seven and a half inch LCD. And it’s dense. At 200 DPI, we’re talking very close to laser print quality. Certainly from the original laser printers. It’s really nice.
And then, magically, you turn on the backlight, and you see color. Really unusual, pixel structure, it’s all 100% Mary Lou’s invention, and this is a really neat part of the machine. Completely new text, I’m really delighted to have this component in our box, because it gives all kinds of cool benefits that we can exploit. In particular, it’s inexpensive, straight, but also very low power consumption. And this ability to instantly go between a monochrome, a very high-res monochrome mode with a great reproduction of text or whatever it may be, and immediately flip to color mode when you want to is totally cool. I wish I had brought one with me today, and show you, my apologies that I did not.
But, it’s running, it works, and in fact, just this last week, we did some [xx] on the panel, that doubles it’s reflectivity. We actually measured, and the goal of double that reflectivity worked. So it’s a really neat trick, and again, there’s no other system out there like this. And it’s something that is invention purely of OLPC. Not that someone came and told us. Mary Lou created this, pushed it into the LCD manufacturers and made it real. Really neat stuff.
And Mark Foster is the person to judge that properly since himself has been introduced in the above Stanford EE talk as a true pioneer:
He’s led different projects in portable computing at Apple, at DEC [Digital], and at Zenith. He created the first notebook with Ethernet, which was the Z-Note [introduced on the same date as Windows 3.1, see the Z-Note press release [Apr 6, 1992]]. The first true sub notebook [with 8.5-inch (viewable) black-on-white VGA], which was the Z-lite [see the press release [Nov 16, 1992]]. And the thinnest notebook in the world at the time, which was the Hi-Note Ultra [From Digital].
Indeed, there were a couple of quite innovative ideas put into the XO-1 laptop as has been described by their inventor in A Conversation with Mary Lou Jepsen [Jan 17, 2008]
It defies conventional wisdom to put a display expert in charge of a laptop architecture, but since the cost of the screen in a laptop is more than $100, it was the main barrier of entry to building a low-cost laptop.
What I’ve found coming to this project is that people who design computers don’t know a lot about displays, and in fact by starting with the display and designing the computer kind of backwards, rather than just slapping a display onto a motherboard, we can design a whole new architecture.
The architecture we’ve created is very powerful, not just for low-cost laptops, but for high-end laptops as well.
… If you look at what’s been happening in computers for the past 40 years, it’s been about more power, more megahertz, more MIPS. As a result, we’ve had huge applications and operating systems. Instead, at OLPC we focused on an entirely different kind of solution space. We focused on low power consumption, no hard drive, no moving parts, built-in networking, and sunlight-readable screens.
… we had to design a laptop that was also the infrastructure. It has mesh networking, which is the last mile, 10 miles, 100-mile Internet solution. The solar repeaters and active antennas that we’ve added into the mix cost about $10 a piece and help to relay the Internet. If one laptop in a village is connected to the Internet, they all are.
Yes, it might be just a trickle, a low-bandwidth connection from the Internet to the laptop, but between the laptops is a high-bandwidth connection through the mesh network. We use 802.11s, which is the standard for mesh.
… We use an AMD chipset, the LX-700, which allows you to turn the CPU on and off in a hundredth of a second. It’s not noticeable to the users whether the motherboard is on or off because the moment they hit the keyboard or get a Skype phone call or what have you, the CPU and motherboard are back up and running.
That also allows us to run the mesh at extremely low power: 400 milliwatts, compared with my ThinkPad laptop, which uses approximately 10 watts just to run Wi-Fi.
… We had to get rid of the hard disk, because not only is it the second most expensive component in a laptop after the screen, but it’s also a huge power hog, and the number one cause of hardware failures is hard disk failure. That’s three strikes against it. Instead, we used flash memory, which people are starting to use.
… I should also talk about the low-power display. We did something I’ve been doing for a long time in different kinds of display technology: putting memory directly into the display itself. You can’t do that with amorphous silicon, which is the standard transistor process used in LCD. To keep costs to a minimum, I used a standard process for the screen. But you can add memory in the timing controller. That means the screen can stay on while the rest of the motherboard or the chipset is off.
Why would you want to do that? It turns out that most of the time you’re using a laptop or a desktop, the CPU isn’t really doing much, even while it’s running at multiple hundreds of megahertz. Right now I’m staring at my laptop. Not a single pixel on my screen is moving. What’s the CPU doing on? What’s the motherboard doing on? The way to get to low power—the big secret—is to turn stuff off that you’re not using. But nobody has ever made a laptop with a screen that self-refreshes. You really do have to keep flipping the liquid crystal molecule; they like AC fields. The liquid crystal molecules fall apart in DC. You need to keep only two images in memory for that, and you can keep the screen on all day long.
We also put a tiny ARM core in our Wi-Fi chip. We used the Marvell chip because it’s the only Wi-Fi chip with a tiny ARM core in it, which means Wi-Fi can also stay up and running while the CPU is off.
… I came up with this idea for a sunlight-readable screen by starting with a transflective process, which was used briefly on cellphones but wasn’t very readable inside or outside (it was very dim) and so was dropped from most products. What I did differently was to put color filters over the transmissive part of the pixel only, instead of the mirror part of the pixel, and I used—get this—a colorless color filter over the rest of the pixel as a spacer.
In a transflective display, part of the pixel is reflective and part of it is transmissive. People think of it as kind of the worst of both worlds, so it hasn’t been that popular. Again, these displays are considered dim, high power, and not that readable.
Each big LCD fab had developed a transflective process, so, I thought, why not use this process and then change the pixel layout by putting a little sliver of a color filter (red, green, or blue) over part of each pixel and then changing the bulk layout of the pixel as well? For best compatibility with minimal image-generation systems, I used diagonal stripes of color so that we would get square-root-of-3 resolution in X and Y in color mode, when compared with the black-and-white (grayscale) resolution. You see, each pixel is black-and-white (grayscale) in reflection and shows a single color in transmission (red, green, or blue when the backlight is on). Strictly speaking, therefore, you get one-third the resolution in color. The human visual system isn’t digital, however. It’s analog and biological, and through this pixel layout we get higher perceived resolution—about 800 by 600 in color. You get all this with a low-cost and low-power TTL (transistor-transistor logic) interface that can be used because the true pixel count is so low. I’m just making the pixels do double or triple duty.
Soon after this interview appeared on ACM Queue Mary Lou Jepsen made the announcement that Higher resolution than we thought – the XO laptop screen [May 28, 2008]
The XO screen has been shown to be higher resolution than we thought. Michiel Klompenhouwer from Philips Research says the color resolution is effectively 984×738, even though strictly speaking straight division indicates color resolution of 692×520 (this is 1/3 of 1200×900 our black&white resolution). We have been saying for some time that the resolution is about 800×600, but his new study shows a more exact way of measuring perceived resolution. Michiel presented an analysis of our screen and other display pixel layouts at the Society for Information Display Annual Meeting this week in Los Angeles in a talk entitled “Comparing the Effective Resolution of Various RGB Subpixel Layouts” SID08.
Because of that XO design she became a true ICT industry celebrity which is well expressed by the New Statesman in The NS Profile: Mary Lou Jepsen [April 30, 2009]
The XO is the cheapest, least power-hungry notebook computer ever produced, a device that may eventually prove one of the most important educational tools of its time – and for which last year Time magazine named Jepsen one of the world’s 100 most influential people.
Along the way, her design sparked a mainstream computing revolution. Jepsen’s primary intention was to “innovate at the bottom of the pyramid”, creating a simple computer for educational use in impoverished areas. But it turned out that computer users in industrialised countries also wanted inexpensive, environmentally friendly laptops. The netbook was born. Just two years after the XO was first released, nearly every major PC brand is selling an inexpensive, low-performance mini-laptop, and analysts predict sales will have reached 50 million by the end of the year. “Every time I meet with the CEO of a big laptop company, they tell me they ‘studied’ my design,” Jepsen has said.
While some could argue that her effort had nothing to do with the birth of netbooks (attributed to Asustek alone) the fact is that Taiwanese companies were intrigued by the idea of a low-cost PC from her 2005 and 2006 attempts with different Taiwanese manufacturers to collaborate. As was described by Ministry of Information (Taiwan) article Small Laptop, Big Splash [April 1, 2008]:
In December 2005, Barry Lam, chairman of Quanta Computer, agreed to manufacture the XO-1. Then, in April 2006, a second Taiwan technology group, Chi Mei Optoelectronics, joined at the urging of the conglomerate’s octogenarian founder and philanthropist, Shi Wen-lung.
… the head of the project at Quanta is Dandy Hsu, general manager and vice president of the company’s Educational Product Business Unit and one of two OLPC board members in Taiwan.
Hsu says bringing the XO-1 to mass production took Quanta nearly two years–an eternity by original design manufacturing /original equipment manufacturing (ODM/OEM) standards.
… Obviously, the XO-1 wasn’t a typical laptop project. “Normally, when we design a commercial notebook, we have Microsoft’s Windows or other software that will run on the device,” Hsu explains. Usually hardware engineers design commercial laptops around the requirements of the marketplace’s dominant operating systems (OS) and application program interfaces (API), then use these for testing as the design work proceeds.
Software was not available for the XO-1 because it was being developed simultaneously by OLPC, which oversaw a team of volunteer engineers designing a Linux-based OS for the XO-1 and writing code for its open source application programs.
… Engineers faced other surprises. In March 2006, when the XO-1 motherboards were ready for testing, OLPC held a “country conference,” which was attended by “delegates” from the governments that intended to purchase the machine. The result was a decision to upgrade the XO-1 with a more powerful CPU. This was no minor modification.
“Change the CPU and you’re talking about a completely new machine,” Hsu says.
Then, later in March, came devastating news. Quanta had recently completed the sale of its subsidiary, Quanta Display, and new owner AU Optronics decided not to manufacture the XO-1 screen, the most critical component of the project.
The XO-1 appeared dead. OLPC’s chief technology officer, Mary Lou Jepsen, disappointed and exhausted from more than a year of intense work for OLPC, left Taiwan for home. Hours later, she was near death as well, having gone into adrenal [mellékvese] failure on the flight to Boston.
In April 2006, two weeks after her illness, Jepsen returned to Taiwan and approached the Chi Mei Group, a Tainan-based conglomerate, to ask if it would manufacture the XO-1’s display.
“Mary Lou is one of the heroes of this project–a selfless, beautiful thing,” says Scott Soong of Chi Mei subsidiary Chi Lin Technology. Soong is the other OLPC board member in Taiwan, along with Quanta’s Dandy Hsu.
… By August 2006, Chi Lin Technology had a working prototype of the XO-1’s dual-mode screen. Jepsen says that without Scott Soong, “the display would not exist. He found ways around the seemingly impassable roadblocks during the design and production process.”
“In the concept, the engineering … we did that fairly quickly; then it was tweaking and tweaking and tweaking,” Soong says.
Later, Chi Mei assembled the Taiwan-made display components at its LCD factories in China.
Another Chi Mei contribution is the plastic housing, the fabulously cheerful green and white material that makes the XO-1 so recognizable.
Summing up, Soong says, “I’ll be honest with you. What Chi Mei has done is build a world-class display nearly at cost. This is not just another project for us. Nobody wanted to let this project down. Everybody went above and beyond to ensure success.”
“That is true for Quanta, and that is true for us,” he says. “And true for all of the other partners.”
From this chronology it is quite visible that OLPC XO-1 had ample publicity for notebook manufacturers of Taiwan to pick the idea, but in not so innovative way (they could not do that either because of intellectual property rights protection). Read the local Taiwanese news article of that time High Time for Low-priced Laptops [Nov 17, 2007] to understand the launch time situation for XO, Asus EeePC, and Intel Classmate (the latter also getting the lead from the OLPC idea).
Follow-up: Pixel Qi and CPT alliance for sunlight readability [Dec 22, 2010]
Follow-up: Pixel Qi’s first big name device manufacturing partner is the extremely ambitious ZTE [Feb 15, 2011]
For the even more industry paradigm changing output from Mary Lou Jepsen’s own company, Pixel Qi, read the following posts in her blog (the posts are in backward chronology):
- DIY Pixel Qi screens – available now! [July 1, 2010]
- Computex Update – Pixel Qi [June 2, 2010]
- Pixel Qi receives SID Display of the Year Award! [May 25, 2010]
- Pixel Qi wins top IEEE award! [April 28, 2010]
- Pilots & Production plus a Nomination [Feb 1, 2010]
- CES [Jan 4, 2010]
- Pixel Qi Starting Production [Dec 7, 2009]
- Screens in Office Lighting, Part 2 [Nov 22, 2009]
- Most screens hard to read on bright office light [Nov 21, 2009]
- Pixel Qi Late? [Oct 28, 2009]
- Pixel Qi Screens debuting in Tablets [Oct 17, 2009]
- Comparing the Pixel Qi screen to others [Aug 26, 2009]
- Pixel Qi is Hiring! [July 29, 2009]
- More videos of our new screen [June 4, 2009]
- Josh Quittner’s Blog post [June 4, 2009]
- Charbax posts some videos of our screens [June 2, 2009]
- Short (very short) video of the screen [June 2, 2009]
- answering the blog [June 1, 2009]
- First pictures of Pixel Qi 3qi screen [May 28, 2009]
- Our first screens out of the fab! [May 24, 2009]
- Samples Due Soon [Apr 23, 2009]
- Netbook and Ebook blur lines [March 16, 2009]
- Product Freeze [Feb 2, 2009]
- Thanksgiving Update from Pixel Qi [Nov 29, 2008]
- Pixel Qi is Hiring [June 6, 2008]
- Upcoming Public Appearances [Apr 16, 2008]
- Traveling… [Apr 16, 2008]
- Pixel Qi is One Month Old [on Feb 2, 2008] [Apr 16, 2008]
IMT-Advanced (4G) for the next-generations of interactive mobile services, China is triumphant
See also: Mobile Internet (Aug’11) which is a total update on Aug 26, 2011 with a lot of additions to the original July 19, 2010 content on the following subjects:
– LTE and LTE Advanced — HSPA Evolved (parallel to LTE and LTE Advanced) — Heterogeneous networks or HetNets — Femtocells and Picocells — Qualcomm innovations in all that — Ericsson’s LTE Advanced demo — Current roadmaps on evolutions of current 3G+ broadband mobile networks
The International Telecommunication Union (ITU) press release regarding its ITU Radiocommunication Sector (ITU-R) came a few days ago: ITU paves way for next-generation 4G mobile technologies – ITU-R IMT-Advanced 4G standards to usher new era of mobile broadband communications [Oct 21]:
In its recent meeting in Chongqing, China, ITU-R Working Party 5D, which is charged with defining the IMT-Advanced global 4G technologies, reached a milestone in its work by deciding on these technologies for the first release of IMT-Advanced. In the ITU-R Report, which will be published shortly, the LTE-Advanced and WirelessMAN-Advanced technologies were each determined to have successfully met all of the criteria established by ITU-R for the first release of IMT-Advanced. The Report is expected to be approved by ITU Member States at the ITU-R Study Group 5 meeting in Geneva in late November 2010.
… six proposals received by ITU in October 2009 were individually subjected to a rigorous assessment, supported by the work of independent external evaluation groups that had been established around the world. Industry consensus and harmonization fostered by ITU-R among these six proposals have resulted in the consolidation of the proposals into the two agreed IMT-Advanced technologies. These technologies will now move into the final stage of the IMT-Advanced process, which provides for the development in early 2012 of an ITU-R Recommendation specifying the in-depth technical standards for these radio technologies.
- Latest update: China-version iPhones to adopt China Mobile TD-LTE technology, says paper [May 23, 2011] (emphasis is mine)
China Mobile Communications has reached a consensus with Apple under which the next-generation of iPhones to be sold in China will adopt TD-LTE technology developed by China Mobile, the Chinese-language Commercial Times quoted the China-based carrier’s chairman Wang Jianzhou as saying.
China Mobile has begun voice testing on its TD-LTE experimental networks in Shanghai and commercial operations of the 4G networks in China are expected to begin in 2012, the paper said.
By 2012, China Mobile also plans to set up over 40 experimental networks, 10 commercial networks and 20,000 base stations globally to promote the adoption of the TD-LTE technology, the paper added.
The thing which is talked about here is the future of the mobile Internet as presented by my core information article Mobile Internet [July 19]. Anyone not familiar with magic words and numbers mentioned above could easily get the essence of what is going on here from that “down-to-earth” overview. The explanation was started with the nomenclature of the second and third generation (2G and 3G) technology standards we are all using with our phones, smart ones or not. This allowed to present the whole expanded nomenclature in a form of an extended table coming in the end to the fourth generation (4G) technologies as:
| 4G (IMT- Advanced) | 3GPP family | LTE Advanced |
| WiMAX family | IEEE 802.16m now: WirelessMAN-Advanced (“WiMAX 2”) |
The only new name here is WirelessMAN-Advanced, actually corresponding to the next version of WiMAX, we may say it will be a kind of WiMAX 2. In the new naming MAN is standing for Metropolitan Area Network which is indeed a better expression of the fact that with this “WiMAX 2” we are speaking of a high-speed, high-bandwidth efficiency and high-capacity multimedia service specifically designed for both residential and enterprise applications. (As well noted in the title of the excellent 2007 book Mobile WiMAX: Toward Broadband Wireless Metropolitan Area Networks).
Those who are interested in the process which led to the final stage of IMT-Advanced can read the materials which appeared in the No. 2 (Nov. 2008) issue of ITU-R e-Flash about IMT-Advanced. According to the IMT-Advanced submission and evaluation process the six proposals received were:
• Doc. IMT‐ADV/4 ‐ Acknowledgement of candidate submission from IEEE [802.16 Working Group http://wirelessman.org] under Step 3 of the IMT‐Advanced process (IEEE [based on evolving draft of IEEE 802.16m, supporting both TDD and FDD duplexing] technology)
• Doc. IMT‐ADV/5 ‐ Acknowledgement of candidate submission from Japan [ARIB] under Step 3 of the IMT‐Advanced process (IEEE [based on IEEE 802.16m, supporting both TDD and FDD duplexing] technology)
• Doc. IMT‐ADV/6 ‐ Acknowledgement of candidate submission from Japan [ARIB] under Step 3 of the IMT‐Advanced process (3GPP [their LTE Release 10 & beyond proposal with both FDD and TDD components ] technology)
• Doc. IMT‐ADV/7 ‐ Acknowledgement of candidate submission from TTA [Telecom Technology Association, Korea] under Step 3 of the IMT‐Advanced process (IEEE [currently using their own WiBro standard harmonized with IEEE 802.16e and going to evolve from that to 802.06m as this proposal, including both TDD and FDD duplexing] technology)
• Doc. IMT‐ADV/8 ‐ Acknowledgement of candidate submission from 3GPP proponent (3GPP organization partners* of ARIB, ATIS, CCSA, ETSI, TTA AND TTC [see: Global Standards Collaboration in wikipedia]) under Step 3 of the IMT‐Advanced process (3GPP [their LTE Release 10 & beyond proposal with both FDD and TDD components ] technology)
* Organisations explicitly named in the proposal (operators from China, Korea and Japan are highlighted in red): Alcatel-Lucent France, Alcatel-Lucent USA Inc., Alcatel-Lucent Shanghai Bell, AT&T Inc., British Telecommunications Public Ltd. Co, China Mobile Communications Corporation, China Telecommunications Corporation, China Unicom (Hong Kong) Limited, DaTang Telecommunication Technology&Industry Holding Co., Ltd, Electronics and Telecommunications Research Institute (ETRI), eMobile Ltd, Fujitsu Limited, Hitachi Ltd., Huawei Technologies Co. Ltd, Japan Radio Co. Ltd., KDDI Corporation, KT Corporation, LG Electronics Inc., LG TeleCom Ltd., Mitsubishi Electric Corporation, Motorola Inc., NEC Corporation, Nippon Telegraph and Telephone Corporation (NTT), Nokia Corporation, Nokia Siemens Networks GmbH & Co. KG., NTT DoCoMo Inc., OKI Electric Industry Company Ltd. (OKI), Panasonic Corporation, Qualcomm, Inc., Samsung Electronics Co., Ltd, Sharp Corporation, SK Telecom, SOFTBANK MOBILE Corp., Telecom Italia S.p.A., Telefon AB – LM Ericsson, Toshiba Corporation, ZTE Corporation
• Doc. IMT‐ADV/9 ‐ Acknowledgement of candidate submission from China (People´s Republic of) [Chinese administration] under Step 3 of the IMT‐Advanced process (3GPP [based on LTE-Advanced TDD standards developed there] technology)
ViodiView’s contributing editor Alan Weissberger, principal of DCT Advisors (see also his profile on WiMAX360 community site) published an excellent clarification arcticle on the further details: ITU-R Progresses LTE Advanced and WiMax 2.0 as 4G RAN standards [Oct 20]. Some notable excerpts:
- the basis for specifying the “LTE-Advanced” technology in Step 8 is Document IMT-ADV/8, which is technically identical to IMT-ADV/6 and IMT-ADV/9 (except that IMT-ADV/9 contains only the TDD RIT component); and
- the basis for specifying the “WirelessMAN-Advanced” technology in Step 8 is Document IMTADV/4, which is technically identical to IMT-ADV/5 and IMT-ADV/7.
…
We re-iterate that the LTE that will soon be deployed is NOT a 4G technology, but a 3G technology (3GPP Release
that is included in ITU-R M.1457-9 Detailed specifications of the terrestrial radio interfaces of International Mobile Telecommunications-2000 (IMT-2000 recommendation for 3G RANs). We are worn out by all the 4G hype over LTE and Mobile WiMAX and feel compelled to set the record straight. No, 4G is not a technology that’s faster than the initial 3G RANs. ITU-R defines the criteria for 3G and 4G and we wonder why so many pundits make up their own definition.
…
Motivation of LTE Release 8 (soon to be deployed)
Need to ensure the continuity of competitiveness of 3G systems for the future
-User demand for higher data rates and quality of services
-Public Safety optimized system
-Continued demand for cost reduction (CAPEX and OPEX)
-Low complexity
-Avoid unnecessary fragmentation of technologies for paired and unpaired band operationLTE Release 8 Key Features:
…
The 3GPP candidate technology submission for IMT-Advanced (4G) is 3GPP Release 10 & Beyond (LTE-Advanced) has been accepted as a 4G technology at the Chongqing meeting of ITU-R Working Party 5D, having successfully completed Steps 4 through 7 of the IMT-Advanced process in ITU-R, complying with or exceeding the ITU established criteria in all aspects.
Mainland China went enthuasiastic about this ITU milestone. The leading English-language newspaper in the country, China Daily reported on the event as Chinese 4G mobile standard goes global [Oct 20]. A few notable excerpts [emphasis is mine]:
The TD-LTE-Advanced technology has a download speed of 100 megabytes per second, faster than the preceding third-generation TD-SCDMA technology. Industry analysts said Chinese telecom enterprises are set to benefit from the TD-LTE 4G standard, as it will help to open both domestic and overseas markets for them.
“The situation now is very different from 10 years ago, when TD-SCDMA was set up as a 3G international standard,” said Yang Hua, secretary-general of TD Industry Association in China. He said because China lacked an industry eco-system at that time, the use of TD-SCDMA technology was largely restrained to the domestic market. International enterprises were wary of investing in a technology developed in China, especially when it had not undergone a market test.
…
China Mobile launched its TD-SCDMA service in January 2009, and the largest mobile operator in the world will have invested 100 billion yuan ($15 billion) in it by the end of this year. Prior to September, the company had 15.27 million TD-SCDMA subscribers. Overall, it has 507 million subscribers, most of them using second-generation technologies.
…
Nearly all the best known international telecom companies, such as Ericsson, Nokia and Samsung, are engaged in the TD-LTE industry. They are determined not to miss out on the Chinese market again as they did in TD-SCDMA era, Yang at TD Industry Association said. “They lost many China Mobile contracts when bidding against companies such as Huawei and ZTE, because they ignored the development of TD-SCDMA and offered very few competent products,” Yang said.
Shi Guang, secretary-general of TD Forum, said Chinese telecom companies in the TD-LTE industry chain will be presented with a great business opportunity when they enter the international market. “They will go head-to-head with global companies. Who dares say that another Huawei or ZTE may not emerge in the process?” Shi asked.
According to a survey by Ovum, an international market consulting company, the TD-LTE technology will earn about $150 billion in revenue by 2015.
So China is triumphant because they own licences of their home-grown TD-LTE technology, therefore a much bigger chunk of that revenue will come to them (or remain with them) than before. In addition to that they will be able to move to real 4G (LTE Advanced) through their already accelerated TD-LTE program as noted in my post 3.9G TD-LTE rollout in 2012 with integrated 2G, 3G and 4G? [July 19]. Their leading operator, China Mobile, also the one with TD-SCDMA and TD-LTE technologies, published the following roadmap in its August 19 Interim Report (see slide 9):
The US situation has been described in my earlier post, “4G” WiMAX vs. 3.75G HSPA+ [July 24]. Please note that both the current major WiMAX provider, Sprint and the HSPA+ provider T-Mobile are absolutely wrong in calling their offerings 4G. (BTW this is what was meant by Weissberger’s words “We are worn out by all the 4G hype over LTE and Mobile WiMAX and feel compelled to set the record straight”. They are actually not alone with such mislead ing statements among operators.)
A kind of introduction to the worldwide competitive situation has been provided by another post of mine: WiMAX/WiBro <=> TD-LTE and LTE in general [June 28], which is also providing sufficient information on the roadmap of the global LTE leader, the Japanese NTT-DOCOMO . This had also a follow-up: Intel dismisses WiMAX Program Office [July 1]. The Mobile Broadband reality by Akamai [July 29] post provided actual data on average and average maximum connection speeds from 109 mobile carriers around the world.
The most important strategic market assesment, however, is in my post: Could China close the gap in mobile Internet? It should! [July 21]. The most dramatic findings were expressed with the following two diagrams (copied here as a kind of reminder):
October 2010 update
China’s three telecom operators have over 10 mln 3G users each by end-Oct, MIIT [Nov 24]:
According to statistics released on Wednesday by the Ministry of Industry and Information Technology (MIIT), China’s 3G service subscribers reached 38.64 million by the end of October, up 10.4 percent month on month, and up 295.7 percent year on year.
By end of October, China Mobile’s TD subscribers came to 16.98 million, China Unicom’s 3G subscribers amounted to 11.66 million, and China Telecom’s 3G subscribers reached 10 million.
Q3CY10 update
I’ve made an update of the above numbers which is showing a similar gap, but for China Mobile relying on TD-SCDMA and TD-LTE only, there is an even more threatening situation.
China Unicom and China Mobile announced their subscriber statistics for September on Oct. 21 and 20, respectively. For the 3G part the results are 10.554M and 15.279M. Month by month 3G statistics are as shown on the following two diagrams:
The third operator, which also has wire business, China Telecom also released some statistics. Unfortunately they are providing only quarterly 3G subscriber information on their website (see: http://www.chinatelecom-h.com/eng/ir/kpi.php?cat=quarterly ) so I had to rearrange data to quarters in order to show both the absolute number changes and their own 3G penetration rates, as you could see both on the below diagram:
As you could see China Mobile was able to increase its own 3G penetration rate from 1.89% to just 2.68% during the last quarter. At the same time China Unicom had a significant increase of 3G penetration from 4.82% to 6.51%.
China Telecom achieved even more with Q3CY10 penetration rate of 11.03% since they made heavy invesment into CDMA2000 EV-DO 3G technologies. Their chances to grow even spectacularly during the current quarter could be even bigger since they were the first operator to release quite attractive smartphone subscription packages for less than 1,000 yuan [~ US$ 148] apiece. In both Huawei and ZTE versions there is a true, even mid-range level smartphone with 990 yuan calls included!
See:
– China Telecom roll out it’s first 3G-smartphone-Packages around 1000 yuan, with 990 yuan free calls [Oct 21]
– ZTE N600 cheep Android handset spotted [Oct 16]
– Huawei C8500 bargain Android phone hands-on video [Oct 14]
China Mobile therefore is taking urgent actions to accelerate its competitiveness. One of the most important elements is certainly to provide similar to China Telecom’s low priced bundles:
See:
– China Mobile Started Direct Purchasing of 6 mln TD Phones [Oct 22]
–Marvell beaten by Chinese chipmakers in sub 1,000 yuan handset procurement tender of China Mobile [Nov 15]:
… with prices ranging from 350 yuan [US$52.7] to 650 [US$97.8] yuan.
While the latest quarter business performance of China Mobile has been not bad, as reported by China Mobile Jan-Sept net profit up 3.9% on 3G [Oct 20], the same report states that:
China Mobile and its two major rivals, China Unicom (Hong Kong) Ltd. and China Telecom Corp., are competing for subscribers to their 3G services, whose faster data speeds and pricier service plans could boost the companies’ average revenue per user–a key gauge to determine long-term growth for telecommunications operators.
China Mobile’s ARPU fell to CNY72.0 in the nine months ended Sept. 30, from CNY75 a year earlier. The company’s ARPU has fallen as it has pushed farther into less developed regions of China to keep adding subscribers, including users of its less expensive 2G services.
…
Analysts said China Mobile’s introduction of new handsets could boost growth in the firm’s 3G business in coming quarters, though subsidies for these handsets and depreciation expenses for the carrier’s 3G network are likely to continue to weigh on profitability this year. The firm said in a statement its average revenue per minute of usage has been declining due to low usage by new customers, while its value-added services business has become the major driver of revenue growth.
In the mid-term 2012-15, however, China Mobile is going to have enormous advantage as ITU paves way for next-generation 4G mobile technologies one of which is the future Release 10 version of their TD-LTE (China Mobile is calling it TD-LTE+ on its roadmap slide included above). Whether they will be able to exploit that will solely depend on the value added services they should bring out to the market masterfully. But that is another story.
Be aware of mainland China and Taiwan stronger manufacturing links in ICT
A current article from Knowledge@Wharton is drawing our attention to the fact that mainland China and Taiwan are fast becoming essentially one in the important ICT sector, and this will further increase their global influence. See: Computer Compatriots: Taiwan and China Draw Economically Closer [Sept 1]
We are talking here about things like the already existing fact that more than 90% of notebook and netbook computers manufactured worldwide are from the combined manufacturing bases of Taiwan and mainland China. Things like that will be significantly increased in the future due to the Economic Cooperation Framework Agreement (ECFA) that Taiwan and China signed in June.
Important updates:
– ECFA to Further Drive China`s Procurements in Taiwan [Jan 5, 2011]: “Last year China organized 13 official buy-Taiwan groups, which together purchased products worth about US$20 billion. This year the projected groups may focus their purchases of 539 duty-free items as on the ECFA fast-track gainer list. The first group to arrive in 2011 will be from Liaoning, said to be led by provincial governor Chen Zhenggao and slated to arrive in Taiwan in mid-February.”
– Taiwanese Banks Lend Over US$31 B. to Clients in China [Oct 11]: “Some say that large enterprises in Taiwan borrow from domestic banks and then transfer part of the loan to affiliates in China. So, including such transferred loans, China would have borrowed more than NT$1 trillion or US$31.25 billion from Taiwan. However, some say that the value is unknown for the exact amount of loans flowing to Taiwanese firms in China through their parent companies in Taiwan is not tallied.”
– ECFA to Bring Strong Boost to Taiwan`s Economy [Sept 21]: “In its initial period, ECFA calls for the removal of tariffs on more than 800 items on an “early-harvest” list in three stages over a two-year period. The list includes 530 items included at Taiwan’s request (worth an annual US$13.8 billion in shipments to China) and 267 items included at China`s request (worth an annual US$2.86 billion in shipments to Taiwan). ECFA will also further open up cross-straits financial dealings. … Given Taiwan`s growing dependence on the Chinese market, the institutionalization of economic relations across the Taiwan Straits is vital to the continued development of the island`s economy.”
– Cross-Strait Investment Protection Agreement May Be Signed by Year End [Sept 17] — With cross-Taiwan Strait Economic Cooperation Agreement (ECFA) having taken effect, Taiwan and China can start talk on investment protection agreement.
– Taiwan should emulate investment strategies of local governments in China, says Acer founder [Sept 29]: “The Taiwan government has been encouraging international enterprises to set up regional headquarters and R&D centers in Taiwan for a while, but has said more than it has actually done for incentives it offered and promises made. … Shih also recommended that Taiwan-based manufacturers shift some of their resources to own-brand business operations and those related to proprietary intellectual property so as to avoid price competition.”
ECFA is prompting both sides to capitalise on this opportunity. Only the Taiwanese interest is, certainly, well manifested in the public media:
– Ministry [of Economic Affairs in Taiwan] works to attract major ICT and auto firms [July 4]
– Ma expects Taiwan to become a regional trade hub after ECFA [Aug 18]
This is all despite of the current political and economic interests, ties:
– Inconvenient impacts of Taiwan-PRC ECFA [Aug 5]
3d Parties are aiming to capitalise on the opportunity as well, which could only enhance the role of new mainland China and Taiwan cooperation further:
– Beyond Geopolitics – The Case for a Free Trade Accord between Europe and Taiwan [July 8, 70 pages]
– ECFA could open way for EU-Taiwan FTA [July 8]
– ECFA could be Taiwan’s window for trade deals: [a European] think tank [July 29]
– Israel welcomes ECFA as good for business [Aug 26]
Keep in mind, however, that ECFA is quite controversial from general social and public interest point of view. There are even some unexpected contradictions for outside observers unaware of the peculiarities of the “internal” situation. To demonstrate that, here is a notable exerpt from Taiwan: Let’s go poking around under the rock of ECFA [Aug 24] blog post, written after the Legislation Yuan of Taiwan approved the ECFA agreement on August 17:
After Hong Kong signed CEPA, it has become the city with the largest wealth inequality in the world. We don’t want an ECFA that let the rich get richer and the poor get poorer.
Some general background information on the “players” and the “play” (not ECFA in particular):
– Taiwan: About Taiwan [April 11, 2008]
Over the past 20 years, Taiwan has become the world’s fourth largest ICT (Information and Communication Technology) hardware producer and holds #1 ranking WW ICT product market share with more than 10 particular products (e.g. Notebook PC, Desktop PC, Computer Motherboard, Computer Server, CDT monitor, LCD monitor, Optical Disk Drive, Digital Still Camera, WLAN, Mobile Phone, and PDA etc.) By estimation, 75% of PCs installed in the world with Windows OS are produced by Taiwanese IT companies. Today, the entire production base has mostly migrated to mainland China due to low cost in labor and land factors. However, the Taiwanese entrepreneurs are dominating at least 75% of the ICT hardware production value produced in the PRC (People’s Republic of China). Impressively, Taiwan is also the fourth largest semiconductor industry in the world. Naturally, Taiwan is a major procurement center (One-Stop-Shopping) for global ICT companies.
– Taiwan [from wikipedia]
– Distinctive Characteristics of China’s Path of ICT Development: A Critical Analysis of Chinese Developmental Strategies in Light of the Eastern Asian Model [May 12, 2008]
– Adapting to the China Challenge: Lessons from experienced multinationals [Sept 20, 2007]
– Sons of The Yellow Emperor Go Online: The State of the Chinese Digital Diaspora [July 2, 2010]
