Home » smartphones (Page 18)

Category Archives: smartphones

Tackling the Android tide

Remarks by Larry Page on the quarterly earning calls [July 14, 2011, see also Larry Page to boost Google even more as becoming CEO again [April 2, 2011]]

We have tremendous new businesses being viewed as “crazy” Android We actually have a new metric to report of 550,000 Android Devices activated a day!

[See the full post by Larry Page later]

Follow-up:
Nokia Lumia (Windows Phone 7) value proposition [Oct 26, 2011]
Note: the “affordable” Nokia Lumia 710 for 270 EUR [US$ 376] is the one produced by Compal (the 800 is by Nokia itself)

Updates:
Supercharging Android: Google to Acquire Motorola Mobility [Larry Page, Aug 15, 2011]

We recently explained (http://googleblog.blogspot.com/2011/08/when-patents-attack-android.html) how companies including Microsoft and Apple are banding together in anti-competitive patent attacks on Android. The U.S. Department of Justice had to intervene in the results of one recent patent auction to “protect competition and innovation in the open source software community” (http://www.justice.gov/opa/pr/2011/April/11-at-491.html) and it is currently looking into (http://online.wsj.com/article/SB10001424053111903635604576476430510833852.html) the results of the Nortel auction.  Our acquisition of Motorola will increase competition by strengthening Google’s patent portfolio, which will enable us to better protect Android from anti-competitive threats from Microsoft, Apple and other companies.

Is Google buying Motorola for its 24,000 patents? [April 15, 2011]

Motorola Mobility Holdings’ CEO Discusses Q2 2011 Results – Earnings Call
Transcript
  [July 28, 2011]

… we own one of the strongest and most respected patent portfolios in the industry. We have over 17,000 patents granted and over 7,000 patents pending with particular strength in 2G and 3G essential, non-essential patents important to the delivery of competitive products in the marketplace, video particularly compression, decompression and security technologies and finally, a leading position in 4G LTE essential.

With new entrants to the mobile space resulting from the convergence of mobility, media, computing and the internet, our patent portfolio is increasingly important. …

@parmy Parmy Olson [Forbes’ London bureau chief]
Microsoft buying Nokia doesn’t seem like such a wild idea anymore. #Google #Motorola
2 hours ago via TweetDeck

Google’s Motorola Deal Could Give Windows An Opening [Forbes guest post, Aug 15, 2011]

Nokia says Google-Motorola deal may help Windows Phone [Aug 15, 2011]

This further reinforces our belief that opportunities for the growth of Nokia’s smartphone business will be greatest with Windows Phone. This could prove to be a massive catalyst for the Windows Phone ecosystem. Additionally, with our respective intellectual property portfolios, Nokia and Microsoft are working together to build and nurture an innovative ecosystem that benefits consumers, operators, developers and other device manufacturers.

Quotes from Android partners [Larry Page, Aug 15, 2011]

“We welcome today’s news, which demonstrates Google’s deep commitment to defending Android, its partners, and the ecosystem.”

– J.K. Shin

President, Samsung, Mobile Communications Division

“I welcome Google‘s commitment to defending Android and its partners.”

– Bert Nordberg

President & CEO, Sony Ericsson

“We welcome the news of today‘s acquisition, which demonstrates that Google is deeply committed to defending Android, its partners, and the entire ecosystem.”

– Peter Chou

CEO, HTC Corp.

“We welcome Google‘s commitment to defending Android and its partners.”

– Jong-Seok Park, Ph.D

President & CEO, LG Electronics Mobile Communications Company

Google acquisition of Motorola likely to benefit Taiwan production partners, but potential uncertain [Aug 17, 2011]

Share prices of Taiwan-based companies known to have strong business relations with Motorola staged a rally on August 16, one day after Google announced its plans to acquire Motorola Mobility as investors expect the deal will bring more orders for those companies. However, some industry watchers commented that Google may eventually release Motorola’s hardware business, forcing Taiwan handset ODMs, and parts and components suppliers to face more uncertainties.

The deal should help improve the financial structure as well as
business of Motorola, which will then release more orders to its production partners in Taiwan, said the sources, indicating the potential beneficiaries include Arima Telecommunications, Compal Communications, Merry Electronic, Ichia Technologies and Chi Cheng Enterprise.

Arima is currently a major ODM of feature phones for Motorola, while Compal and Foxconn International Holdings (FIH) are smartphone ODMs for the vendor. Motorola’s focus on Android phones after being merged with Google will benefit all three ODMs, said the sources.

Motorola is expected to outsource a total of 11-13 million handsets to Taiwan ODMs in 2011, with more than 90% being feature phones, said the sources, indicating that shipments of smartphones to Motorola have more growth potential.

However, the sources pointed out initial orders from Motorola after being merged with Google are unlikely to increase substantially as Google has said it will run Motorola as a separate business and will treat all Android partners equally. This means that Motorola will be able to increase its orders to production partners if doing so remains competitive.

Motorola, operating as an independent handset vendor under Google, still also posts a potential threat to HTC and other Android phone vendors. Google is likely to compete directly with HTC or Samsung Electronics unless it sells or terminates Motorola’s hardware business eventually, according to a Chinese-language Commercial Times report.

Taiwan handset PCB and chipset vendors hail Google acquisition of Motorola [Aug 17, 2011]

Taiwan-based handset PCB and chipsets makers have applauded Google’s announcement of acquiring Motorola Mobility, expecting that a growing Android mobile device market will help boost their sales.

Unimicron Technology and Compeq Manufacturing are currently two Taiwan-based PCB suppliers for Motorola, but supply volumes take only a small portion of their total shipments, according to industry sources.

Taiwan-based handset chipset vendors MediaTek and MStar  Semiconductor have been developing handset solutions for Android models because Apple has a preference of buying handset chips from players outside Taiwan.

MediaTek has also been cooperating with Motorola for some time and so the integration between Google and Motorola is certainly good news for MediaTek as well as MStar from a long-term point of view, the sources asserted.

IHS iSuppli News Flash: Fast Facts on Google’s Purchase of Motorola Mobility [Aug 15, 2011]

 The Motorola Mobility acquisition puts Google Inc. in a stronger position in any potential patent dispute with Apple Inc. “From an intellectual property (IP) standpoint, the acquisition bolsters Google’s negotiating position with Apple, in the event that Apple goes after Android-based products the same way it did with Samsung in Europe,” said Francis Sideco, principal analyst, wireless communications, for IHS. “If nothing else, Google will be able to assert Motorola’s IP for the 3GPP and 3GPP2 cellphone specifications, which are used in both the iPhone and iPad.”

Motorola’s product development capabilities also may have made it an attractive acquisition target for Google. “Motorola has been closely following Google Android’s operating system release schedule,” said Tina Teng, senior analyst, wireless communications, for IHS. “Whenever Google releases a new version of Android, Motorola almost immediately has a device ready with the latest revision of the software, reflecting the company’s prodigious product development capabilities.”Google previously has used new HTC and Samsung products to demonstrate the latest capabilities of the Android operating system. For example, the HTC MyTouch and Samsung Nexus S served to show off the operating systems’ capabilities so other OEMs could follow the example. Now, Motorola is the company that will set the example.

Motorola can serve as Google’s product R&D department as Android spreads into new markets,”Teng added. “Motorola has engineering expertise in a wide range of products where Android will be used, including set-top boxes and televisions. The addition of Motorola’s engineering and intellectual property will accelerate Android’s time-to-market in these areas and potentially revitalize the Google TV business, which so far has met with little success.”

The acquisition could prompt some Android licenses to increase their focus on alternative operating systems, such as Windows Phone.“ Although Google has said Motorola will continue to operate as a separate company, this development has to raise questions among the other Android licensees as to the level of support they will get from Google in the future. Even before this announcement, Motorola already had gotten preferential treatment, receiving first access to Honeycomb on the tablet side. While it’s unlikely that the other licensees will abandon Android, they could shift their priorities and focus more R&D toward Windows Phone from Microsoft.”

Motorola ranked sixth in the global smartphone business in the second quarter. The company held a 4 percent share of global unit shipments. Company shipments amounted to 4.4 million, up 7.3 percent from 4.1 million in the first quarter, as shown in the table below.

Since hitting bottom in the first quarter of 2009, Motorola has been experiencing nearly uninterrupted quarterly growth in smartphone shipments. Quarterly company shipments have expanded sequentially for the past nine consecutive quarters, with the exception of the first quarter of 2011, as shown in the figure below.

Motorola once was the world’s No. 2 cellphone maker. As recently as the first quarter of 2007, Motorola was the world’s second-largest cellphone shipper after Nokia on the strength of its stylish RAZR product line. However, because of its difficulties in offering compelling new models following the success of the RAZR, Motorola’s share of global cellphone shipments went into decline. Following a precipitous and sustained drop in shipments and market share, the company made a strategic decision to shift its focus away from low-margin, mass-market cellphones and toward higher-profit smartphones based on the Android operating system, like the Droid and Backflip.

Motorola Inc.’s XOOM media tablet introduced early this year represented the first legitimate match for Apple Inc.’s iPad 3G, in terms of features and pricing. The IHS iSuppli Teardown Analysis service’s dissection of the device determined the Motorola XOOM carries a bill of materials (BOM) of $359.92, based on pricing in March 2011, compared to approximately $320 for a 3G iPad with 32GB of NAND flash memory, based on pricing from April 2010.

Learn More > Low-End Smartphones Boost Market Growth

Has Google wasted $12bn on a dud patent poker-chip? [The Register, Aug 15, 2011]

Larry Page’s Moto bluff fails to convince

Analysis It’s all about patents, says Google co-founder and CEO Larry Page. Google insists that it bought Motorola to shore up its Android platform, which is caught in a litigious pincer movement from old buddies Steve Jobs and Larry Ellison. Microsoft is merely egging them on the sidelines as the manbags fly, shouting: “Fight!”

But analysts I’ve spoken to are already wondering how much due diligence Google performed before the announcement, or whether the Motorola acquisition will turn out to rival Terra’s legendary, rushed purchase of EMI. Here’s why.

Android is a copycat platform. The APIs copy Java, and the UI copies Apple’s iPhone. Oracle believes Google has violated Java IP, which it acquired with Sun Microsystems. Google says the language, and a third of Android’s API’s are “derivative” of Java. On the other warpath, Apple has launched three dozen lawsuits relating to usability and UI. Apple is hurling these lawsuits at Android licensees, rather than at Google itself. Google has refused to indemnify its partners, causing much nervousness.

But Motorola’s IP war chest does not help Google here. It is poor where it needs to be rich. It is no help at all in the Oracle battle, which (alas) as many people have forgotten today, is largely about copyrights not patents. The Motorola patent war chest could only help Google against Apple by opening up a new front, with retaliatory litigation which threatens every rival handset manufacturer. But have a look where Motorola patents’ strengths are: radio engineering and design. The most vital radio patents are already covered by existing patent pools.

Bear in mind, too, that Nokia has a patent portfolio that is as strong as – or stronger than – Motorola’s. Nokia executives believed it was so strong it would derail the Cupertino upstart. But when Nokia and Apple settled last month, Nokia barely came out ahead, with a one-off payment of €430m.

These radio and design patents of legacy manufacturers such as Motorola or Nokia really aren’t worth quite as much as their owners think they are.

Google has paid $12.5bn for a negotiating chip that appears to be almost impossible to redeem. In this light, the acquisition looks like panic, rather than a calm and carefully deliberated strategy. Google didn’t take IP seriously, bidding silly numbers (such as pi billion dollars [1]) for the Nortel patents. Then it realised it might be in trouble, and so went out and bought some IBM patents. Now it has splurged $12.5bn, truly believing the IP is going to be useful.

Hats off again to Motorola’s leadership, though. The company has been trying to sell its phone division for over three-and-a-half years [3] – and nobody wanted to know. “Who would buy a
loss-making mobile maker?” we asked in 2008.

Moto merely had to whisper to Google: “We can solve your patent woes,” and its shareholders were rewarded beyond their wildest hopes. Google’s offer price has a huge premium over the market’s valuation of what Motorola is worth.

With the right timing and the right sales seduction, it is amazing what the right mug punter can be prepared to pay.

End of Updates

Regarding the Apple vs. Android situation in the tablet space see:
Acer & Asus: Compensating lower PC sales by tablet PC push [March 29, 2011 with comprehensive update on Aug 2, 2011] which is showing Apple’s dominant position as well as serious technical and market problems with the original version of Honeycomb up to now
Update: Apple hikes 2H11 iPhone orders to over 56 million units [Aug 15, 2011]

Apple has upward adjusted the total order volume for iPhones,
consisting of iPhone 3GS, iPhone 4, iPhone 4 CDMA and iPhone 5, for the second half of 2011 by 12-13%, from 50 million units originally estimated at the end of the second quarter of 2011 to more than 56 million units. iPhone 5 will account for 25.5-26 million units, according to Taiwan-based supply chain makers.

iPhone 5 orders for the third quarter of 2011 have been lowered from seven million units to 5.5-6 million units, while fourth-quarter orders have been raised from 14 million units to more than 20 million units, the sources pointed out. Total orders for iPhone 3GS, iPhone 4 and iPhone 4 CDMA for the third quarter exceed 20 million units, and fourth-quarter orders have been
reduced to eight million units, the sources indicated.

Total shipments iPhones in 2011 will reach 95 million units, the sources noted. While Taiwan-based supply chain makers will benefit from increased component orders, they are expected to see pressure for price cuts from Apple, especially touch panel makers which account for the largest proportion of total production costs, the sources said.

What about Windows Phone 7 chances to compete with that?

The chances are suddenly becoming quite good as:

1. The Next Release of Windows Phone, codenamed Mango, is coming

Designed to be the best Windows Phone yet. Check out how the next Windows Phone release, codenamed Mango, will deliver smarter and easier mobile apps, web, and communication. Coming Fall 2011 to a Windows Phone mobile smartphone near you. Tons of new features and everything you love about Windows Phone 7.

More: Meet the next release of Windows Phone: Smarter and easier communications, apps, and web

Update: Mango phones to compete with new iPhone in September [July 29, 2011]

Branded handset vendors including HTC, Samsung Electronics, and LG Electronics all plan to launch Microsoft’s Mango-based smartphones in September, competing neck and neck with the forthcoming iPhone which is also slated for the same month, according to industry sources.

Other vendors to unveil Mango phones at the recently concluded Microsoft’s 2011 WPC (Worldwide Partner Conference) included Acer, ZTE and Fujitsu Toshiba, the sources indicated.

In cooperation with Fujitsu Toshiba, Japan-based mobile carrier KDDI has unveiled its first Mango phone, the IS12T, which features a Qualcomm MSM 8655 processor, 3.7-inch touch screen and 13.2-megapixel camera.

HTC is expected to roll out a number of Mango phones, powered by Qualcomm 1.5GHz single-core CPUs with display sizes ranging from 3.8- to 4.7-inch, the sources noted.

Nokia is expected to unveil its first batch of Mango phones at Nokia World 2011 to be held in October, at a time when fellow vendors have already heated up the market for Mango phones, which will probably be a good strategy for the handset vendor, commented the sources.

But the very latest legal problems with Android could become an even more decisive factor:

2. Android legal losses reportedly prompt exodus to Windows Phone and MeeGo [July 19, 2011]:

HTC’s recent legal loss in the ITC Apple patent case, along with Microsoft’s aggressive patent push amid Android OEMs, has reportedly left manufacturers increasingly wary of Google’s open-source OS. According to the 21st Century Business Herald, growing Chinese brands like ZTE and Huawei are looking to adopt Windows Phone Mango either as a placatory measure toward Microsoft or the first step in a transition from over-reliance on Android. However, the platform spat could also have an unlikely beneficiary: MeeGo.

Chinese analysts have pointed to the relatively closeness of MeeGo’s system kernel and that of Android, suggesting that both hardware and apps could be reasonably straightforward to migrate. MeeGo’s under-the-radar legal situation, and backer Intel’s extreme willingness to find new partners – now that Nokia has all but abandoned MeeGo in favor of Windows Phone – could make the platform a safer bet for spooked Android OEMs. Interestingly, rumors have already surfaced earlier in the year regarding the possibility of a ZTE handset powered by Intel processors.

However, just as Nokia has left the N9 to helm its fledgling MeeGo effort, more manufacturers are expected to look to Windows Phone. Although Microsoft charges a roughly $15-per-device licensing fee for Windows Phone 7, versus Google’s free distribution of Android, there are suggestions that should Apple, Oracle and others win their patent cases then $15-20 royalty fees may become commonplace for Android phones and tablets. HTC is already believed to pay Microsoft roughly $5 per Android device in licensing, while Samsung is supposedly being chased for up to $15 per Android device.

Of course, whether Apple would agree to licensing its technologies remains a sleeping-dragon issue. HTC has already announced that it has “alternate solutions” to the systems Apple alleges are infringed, perhaps in unspoken admission of the fact that the Cupertino company is likely more interested in squashing and hamstringing its rivals than it is in clawing license fees from them. Forcing Google back to the drawing board to identify and replace elements of Android found to overstep into iOS IP would certainly sap some of the platform’s current momentum.

DETAILED INFORMATION

Some key Microsoft sites to watch:

Joe Belfiore shows off Windows Phone Mango [May 23, 2011]

  1. A Web experience that goes beyond the browser [00:40 or separate excerpt]
    Windows Phone Mango has the power of Internet Explorer 9 built-in and the ability to localize the Web based on where you are. Corporate VP of Windows Phone, Joe Belfiore, demonstrates how Windows Phone Mango takes mobile internet to the next level.
    Bing serves you better than a hotel concierge. Use Local Scout to find cool restaurants, sights, and shops—then buy tickets or make reservations on the spot.
  2. A smarter approach to apps  [04:45 or separate excerpt]
    Smart app integration is built into Windows Phone Mango, so mobile apps show up when and where you need them. Corporate VP of Windows Phone, Joe Belfiore, demonstrates how to get the most from your mobile apps on Windows Phone Mango.
    Thousands of apps and counting. Rather listen to music? Create playlists, download podcasts, or track down that tune you can’t place with Music search. Live Tiles are more dynamic and informative in the next release of Windows Phone, codenamed Mango.
  3. Easier to connect and share [07:10 or separate excerpt]
    Windows Phone Mango communications features are organized around the person or group you want to interact with, not the app you have to use. Corporate VP of Windows Phone, Joe Belfiore, shows how access to mobile Facebook and Twitter has never been easier with Windows Phone Mango.
    Texting, Facebook chat, and Windows Live Messenger—now in one seamless experience. Create Groups to send your messages, videos, and pics to friends or family at warp speed. Groups and Threads coming to Windows Phone this fall, make it easier to stay connected with friends and family.

Remarks by Larry Page on the quarterly earning calls [July 14, 2011, see also Larry Page to boost Google even more as becoming CEO again [April 2, 2011]]

We have tremendous new businesses being viewed as “crazy”

Android
We actually have a new metric to report of 550,000 Android Devices activated a day!
That’s a HUGE number even by Google’s standards

Chrome
It’s the fastest growing browser
With over 160 million users

People rightly ask how we will monetize these businesses?

And of course I understand the need to balance the short term with the longer term needs because our revenues and growth serve as the engine that funds our innovation

But our emerging high usage products can generate huge new businesses for Google in the long run, just like search And we have tons of experience monetizing successful products over time

Well run technology businesses with tremendous consumer usage make a lot of money over the long term

I think about our products in three separate categories

First, there is search and our ads products, the core driver of revenue for the company. Nikesh and Susan are going to talk more about ads later in the call

Next, we have products that are enjoying high consumer success–YouTube, Android and Chrome. We are investing in these in order to optimize their long-term success

Then we have our new products–Google+ and Commerce and Local. We are are investing in them to drive innovation and adoption

Overall, we are focused on long term absolute profit and growth, as we have always been–and I will continue the tight financial management we have had in the last two years, even as we are making significant investments in our future

Exclusive: AT&T’s Ralph De La Vega on Which Smartphones Are Winning [June 4, 2011 — Excerpt 1 ]

AllThingsD: You guys have always offered the broadest range of smartphones. What are the trends?

De la Vega: They definitely are buying a lot less feature phones than they used to. We’ve seen a dramatic shift from feature phones and quick messaging devices, which were texting devices only, into smartphones. We love that.

Android is becoming more popular. Our Android business is doing very, very well. I think what’s happening is people have latched on to smartphones. I think over time there will be fewer and fewer feature phones.

There are a million Android devices. Do you want to see more customization? I know at Mobile World Congress you said that you would carry the HTC device that is very Facebook-centric. Do you want to see more devices like that, that are a little more specialized?

De la Vega: I think you are going to see more people put a different UI on top of Android, like HTC has very successfully done. I love what they have done with their UI. It’s very simple, but it is still Android. I hope others will step up to the plate and Android itself will get better.

What have been the positive surprises? We talked about how BlackBerry has had a rough time and with Windows Phone, even though you like the product, the volume hasn’t been maybe what you hoped for.

De la Vega: iPhone and Android. I’ve been very pleased with HTC. HTC has come out with the HTC Inspire and it is selling extremely well in our stores. I think HTC has done a great job with the user interface. You go in and it is distinctive and I think other players are going to have to step up to that. So, Android and Apple are really the hot products right now.

Microsoft’s Android Plan: Evil Genius Or Just Evil? [July 13, 2011]

Buried in all the intrigue surrounding the Nortel patent auction was an interesting tidbit: Microsoft did not have to bid on the patents, but they did anyway. Why? As far as I can tell, it’s one of two reasons. One is evil. The other is evil genius. Either Microsoft really wants to kill Android. Or, if Android continues to thrive, Microsoft wants to be the ones that make billions of dollars off of its success.

… they’d prefer that Android (which killed Windows Mobile) would die and Windows Phone would take it’s place. But the next best option is to catch a free ride on the Android train. Patent licensing deals already in place with HTC, General Dynamics, and others could mean revenues of over $1 billion by next year, as Forbes reports. And if they’re able to convince Samsung to sign one as well (which could effectively force every Android partner to sign one), we could be talking multiple billions of dollars of revenue each year.

Microsoft’s intent here is pure evil genius. “It’s not like Android’s free. Android has a patent fee. You do have to license patents,” Microsoft CEO Steve Ballmer said last year. What he didn’t explicitly say is that you’d have to pay Microsoftand not Google for those patents. Think about this for a second: it’s entirely possible that Microsoft is going to end up making more money — perhaps significantly more — from Android than Google will. A year ago, such a statement would have seemed like a joke. But now it’s becoming reality. And it must be the ultimate nightmare for Google.

By being a part of the winning team, and not allowing Google to get Nortel’s patents, Microsoft put themselves in a win-win situation. If their continued threats to Google’s Android partners force those partners to reconsider their Android commitments, well there’s Windows Phone waiting with opened arms. If the threats lead to licensing agreements and the continued rise of Android, well there’s a huge pile of money from each participating OEM.

So no, Microsoft did not have to bid on the Nortel patents. But doing so may prove to be one of the best moves Microsoft has never made. And strangely enough, they have Apple to thank. Of course, they’re likely playing their own little game in this situation. Keep your enemies closer. Or keep them fighting.

Behind Microsoft’s $15 Samsung Android royalty claim [July 6, 2011]

Samsung is reported to be trying to lower the payment to $10.

The source for this report is the South Korean Maeil Business Newspaper, which quoted unnamed industry officials.

The Samsung story follows a week in which Microsoft named three OEMs as having agreed to license its patents for devices they make and sell running Android.

A fourth manufacturer was named on Tuesday this week, only this time Google’s Chromewas added to the Android mix. Microsoft said it had signed a deal with Wistron on tablets, mobile phones, e-readers and other consumer devices that use Chrome in addition to Android.

Microsoft is giving manufacturers two choices: pay up over the long term or incur years of high legal fees. You decide which your board or your investors like best.

That’s a tough choice given patent and IP cases can drag on for years and can cost billions of dollars. It’s a hard course of action to take when, given the fashion-driven nature of consumer devices, the product you’re battling over stops selling or gets canned. It’s an even tougher decision to fight cash-rich Microsoft alone while the maker of the thing you’re fighting over, Android, doesn’t want to step in to back you up.

Microsoft is putting other Android OEMs on notice that it’s coming after them for some easy patent money. That’s the first “win”.

The second? Microsoft will be hoping it can influence the courts in the Barnes & Nobel and Motorola cases – and in any future cases – by saying: if you don’t believe us on Android violating our patents, just look at all those who accepted we were right and agreed to pay up.

Nortel Announces the Winning Bidder of its Patent Portfolio for a Purchase Price of US$4.5 Billion [June 30, 2011]

Nortel Networks Corporation [OTC: NRTLQ] announced that it, its subsidiary Nortel Networks Limited (NNL), and certain of its other subsidiaries, including Nortel Networks Inc. and Nortel Networks UK Limited (in administration), have concluded a successful auction of all of Nortel’s remaining patents and patent applications. After a multi-day auction, a consortium emerged as the winning bidder with a cash purchase price of US$4.5 billion. The consortium consists of Apple, EMC, Ericsson [USD 340 million], Microsoft, Research In Motion and Sony.

The sale includes more than 6,000 patents and patent applications spanning wireless, wireless 4G, data networking, optical, voice, internet, service provider, semiconductors and other patents. The extensive patent portfolio touches nearly every aspect of telecommunications and additional markets as well, including Internet search and social networking.

“Following a very robust auction, we are pleased at the outcome of the auction of this extensive patent portfolio”, said George Riedel, Chief Strategy Officer and President of Business Units, Nortel. “The size and dollar value for this transaction is unprecedented, as was the significant interest in the portfolio among major companies around the world.”

The sale is subject to applicable Canadian and U.S. Court approvals which will be sought at a joint hearing expected to be held on July 11, 2011. Nortel will work diligently with the consortium to close the sale in the third quarter of 2011.

As previously announced, Nortel does not expect that the Company’s common shareholders or the NNL preferred shareholders will receive any value from Nortel’s creditor protection proceedings and expects that the proceedings will result in the cancellation of these equity interests.

On the very latest legal problems with Android:

ITC says HTC violating two of Apple’s patents [July 15, 2011]

The ITC administrative law judge’s initial determination was that HTC infringed on two of the 10 patents Apple had filed a complaint over in March 2010, according to an HTC statement. The ITC still needs to make a final ruling on the complaint. A loss carries the threat that HTC’s products would be banned from coming into the U.S., and Apple only needs to get a favorable decision on one of the patents.

The latest development is also a major blow to HTC, which has made strides in building market share and a brand with its line of Android-powered smartphones, many of which feature the company’s own Sense user interface. HTC was the first Android supporter that Apple went after, signalling the growing threat of Google’s software to iOS and the iPhone franchise.

On Monday, Apple had filed a second complaint with the ITC, claiming that five additional patents were being illegally used, including one used for scrolling operations, another for programmable tactile touch-screen displays, and one for a double-sided touch-sensitive panel, all of which are used in another complaint against Samsung.

The other relates to the ability to scroll, zoom, and rotate content on a screen, while the last references “portable computers.”

The five additional patents weren’t a part of this ruling.

HTC is considered the most vulnerable legally of the Android partners because it lacks a robust portfolio of patents that act as a potential shield. Earlier this month, HTC purchased S3 Graphics, largely because of a collection of patents that the ITC administrative law judge recently determined were used illegally by Apple.

Apple, meanwhile, is still in the middle of a similar patent fight against Samsung Electronics.

Apple Notches Patent Win Against HTC [July 18, 2011]

Apple Inc. netted a victory in its legal dispute with HTC Corp., as a U.S. International Trade Commission judge ruled the Taiwanese cellphone maker infringed two patents that Apple had cited in a March 2010 complaint to the agency.

The patents relate to multimedia processing technology and data detection technology that lets users dial a phone number that appears in their email. Apple originally alleged that ten of its patents were used in smartphones from HTC, which uses Google Inc.’s Android mobile operating system. The ITC ruling Friday only applied to four patents.

Apple, which helped reshape the mobile phone market with its hit iPhone, has been grappling with the rise of competing smartphones that run Android.

The ruling comes as a blow to HTC, and could have implications for other Android phones that offer similar functionality. Apple has squared off in other patent cases against smartphone makers such as Motorola Inc. and Samsung Electronics Co.

In a statement, a spokeswoman for HTC said it plans to appeal the decision. “We are confident we have a strong case for the ITC appeals process and are fully prepared to defend ourselves using all means possible,” she said, adding that “this is only one step of many in these legal proceedings.”

A spokesman for Apple reiterated its previous statement that “competitors should create their own original technology and not steal ours.”

Taiwan’s HTC rejects fresh Apple patent claim [July 11, 2011]

Taiwan’s leading smartphone maker HTC on Tuesday dismissed fresh patent infringement claims by US giant Apple as the legal battle between the rivals escalated.

Apple Monday filed a complaint against HTC with the US International Trade Commission (ITC) — which is already reviewing three other disputes between the two — over five cases linked to technology used in the iPad and iPhone.

It has also lodged a suit in a US District Court in Delaware.

“HTC is disappointed at Apple’s constant attempts at litigations instead of competing fairly in the market,” said HTC general counsel Grace Lei in a statement.

“HTC strongly denies all infringement claims raised by Apple in the past and present and reiterates our determination and commitment to protect our intellectual property rights,” she said.

Shares in HTC closed limit-down seven percent at Tw$915.0 ($31.5) in the Taipei bourse.

“Sentiment was hit by Apple’s fresh legal action as well as heavy losses in the international and regional markets,” said Alex Huang, an analyst at Mega International Investment Services.

HTC touts its own brand of smartphones and also makes handsets for a number of leading US companies, including the Nexus One unveiled by Apple rival Google.

Apple in March 2010 called on the ITC to investigate the Taiwan company over iPhone patents. That was followed months later by HTC filing for a probe into possible software patent abuse by the California-based firm.

Patent lawsuits are a regular occurrence among technology giants and Apple is currently being sued by Nokia for patent infringement. Apple has fired back a countersuit against the Finnish mobile phone giant.

And last week Apple hit back at an infringement claim by Samsung by calling for the South Korean company to be investigated.

— Dow Jones Newswires contributed to this story —

ITC judgment of HTC infringement of Apple patents arouses concern in China handset industry [AFP from Taipei, July 19, 2011]

The US International Trade Commission (ITC) has made an initial ruling that Taiwan-based smartphone vendor HTC has infringed two of Apple’s 10 patents related to iPhone, and this has caused concern among China-based vendors and white-box vendors of smartphones mainly because almost all of these smartphones are based on free and open-source Android, according to China-based 21st Century Business Herald.

Some of these vendors worry about the risk of becoming embroiled in patent infringement due to adoption of Android, and have drawn up three strategies to cope with potential impact. The three strategies are enhancement of support to Microsoft Mango operating system, promotion of smartphone customization by mobile telecom carriers for protection through binding common interest (especially carriers partnering with Apple and Microsoft), self-development of own operating systems, the source pointed out. China-based smartphone vendors Huawei Device and ZTE have planned to adopt Mango, the source indicated.

However, other vendors hold the opinion that China-based vendors are not so competitive and important in the global smartphone market as to become targets of Apple’s or Microsoft’s patent infringement lawsuits, the source indicated. They also think the ITC ruling will push up cost of adopting Android and this will benefit white-box vendors because it is impossible for them to pay royalty fees to Apple or Microsoft, the source noted.

Worldwide Partner Conference 2011 Information:

Steve Ballmer: Worldwide Partner Conference 2011 [speech transcript, July 11, 2011]

… Phones, we’ve gone from very small to very small, but it’s been a heck of a year. (Laughter.) And you’re going to see a lot of progress in that market competitively as we move forward.

… A year ago, Microsoft had no Windows Phone. In the last year, we’ve sold millions of phones. When we survey our users, nine out of ten of the people who bought a Windows Phone absolutely would recommend it to a friend. It’s certainly a very busy, active, competitive market. We’ve got a lot of work to do to break through. And yet, the people in the phone business believe us. We’ve already had over 20,000 applications built for Windows Phone in eight months. That’s a faster ramp than either Android or iPhone had. Nokia, who had a choice this year to bet on themselves, to bet on Android, or to bet on Windows Phone said for their bet the company strategy, they’re going with Windows Phone. They saw our roadmaps. They saw what we’ve done. They saw what we’re planning on doing. They’re pushing us. They’re pushing us to go broader geographically with Windows Phone. They’re pushing us to hit new price points with Windows Phone. But, they believe.

Others believe, too. Gartner and IDC both did predictions this year that said Windows Phone would be the No. 2 phone in the market by 2015. We’ve already shipped two major updates since we launched Windows Phone less than a year ago. The update that we just made available, “Mango,” which will be on phones this fall, has over 500, 500 new features. We know we’ve got a lot to do, but like the cloud, like NT many years back, we’re all in when it comes to mobile devices. And whether it’s phones or slates, or PCs, or console devices, we’re certainly pushing extremely far, and extremely fast.

Windows Phone 7 ‘Mango’ video demo YouTube [July 13, 2011]

The 3 main things about ‘Mango’:

  1. Connecting and sharing more easily with people
  2. Making apps smarter
  3. Taking the web beyond just the browser

Andrew Lees: Worldwide Partner Conference 2011 [speech transcript, July 12, 2011]

… there are some key trends that are fundamentally changing the world of devices. Now, they’re going to have a huge impact in the technology that we provide, and the solutions that you build. And it starts right at the core of the devices themselves, the core technologies.

we’re at an inflection point in Moore’s Law, where you can put all of the key things required to run a computer into a single chip, a system-on-a-chip. That means that you can have full PC compute power available in whichever form factor that you like. And that’s part of the reason why we’re seeing all of these different form factors.

… Another advantage of moving everything onto a single chip is that the price comes down dramatically. And, in fact, if you look even at the price of smartphones, a year ago all smartphones cost over $400 when they left their hardware manufacturer. Today, they’re down to about $200, and next year, a smartphone that can run something like Windows Phone 7 will actually be down to $100 to $150. So, you’re seeing a dramatic price reduction. …

… a lot of people have asked me, are we going to produce a phone that is a tablet? You know, are we going to use Windows Phone 7 to produce tablets? Well, that is in conflict with this strategy. We view a tablet as a sort of PC. We want people to be able to do the sorts of things that they expect on a PC on a tablet, things like networking to be able to connect to networks, and utilize networking tools, to get USB drives and plot them into the tablet. To be able to do things like printing, all of the things using Office, using all of the things you would expect from a PC and provide a hybrid about how you can do that with the tablet, as well.

And so at the Build Conference in September we will talk about how we can provide the bet of the PC and the tablet. And our strategy is not just limited to that. We are aiming to provide coherence and consistency across the PC, the phone, and the TV, particularly with Xbox. That’s through providing new types of scenarios, things like the way in which we make the user experience more common, as you saw yesterday in the demonstration of the user experience that you have on Windows 8, Windows Phone, and also on Xbox. But, also sharing key pieces of technology.

You see if you looked at the update that we’re providing to Windows Phone this year, we include a new browser. It’s Internet Explorer 9. It’s the same technology that we have on the PC. It’s not similar. It’s the same. So, we can take the advantages that we provide on the PC and immediately leapfrog and provide those across different types of devices.

This is very important to you, because it protects the investments that you have made with ustogether, and your customers have made in key elements of the technology, not only the device, but the infrastructure, the productivity, and the solutions that are used to feed those devices to enable those business and consumer scenarios.

So, for a phone the strategy here is not to provide a business phone, or a consumer phone, but to have them all be the same thing. There’s only one thing. And so there’s a few key things that we’re delivering with our phone strategy:

The first one is that we need to provide what end users desire and what they require. These personal scenarios like music and games, and communications, personal communications, social networking, build them into the phone, but also enabling a line of business solutions, business productivity, getting access to information inside of your company. And we may need to make sure that it works with the existing infrastructure and we provide the same tools for you to provide solutions to customers.

… what is “Mango” all about? Well, it’s about three main things. The first thing is communication, the second thing is about applications, and the third thing is the Internet.

You see, the phone has always been a communications device, but people today are communicating in lots of different ways. Communications, email, instant messaging, sharing pictures and laugh-out-louds, and social networking; even checking in is a type of communication. Rather than doing all of that in individual applications we build those core capabilities into the phone. It is the easiest and simplest way to communicate across a variety of different services, and to go from phone to phone, phone to PC, or phone to Xbox.

The second area is applications. The problem with applications is they all run in silos. So, with “Mango” we let applications break out of their box. It means that information from the application is available throughout the phone, and also, the application participates in the total experience.

Then finally with the Internet, the challenge here has always been to provide a desktop-type experience on the phone. And we deliver that by including things like Internet Explorer 9, in with “Mango.” But, we go one step further, and we say imagine if you could take the power of the Internet and deliver that beyond the browser, in a way that enables you scrape the Web so that you can quickly find answers and get things done, find information to be more productive. …

IDC recently did a study; first of all, they’re predicting that Windows Phone will be the number two smartphone in 2014. More about that in just a second. But what they’ve also done is looked at the revenue attach opportunities that there are for partners when they go through to provide infrastructure that feeds the phone, through things like management, security, and enabling these types of scenarios. The second thing is productivity through delivering things like Office 365, Office itself, et cetera, to make employees more productive, SharePoint, and then solutions, line-of-business solutions, that you develop. And the opportunity here is just mind-blowing. …

So, the message here is make sure that the phone is a key element of your strategy for how you’re providing productivity, infrastructure, and solutions for your customers.

The second area is with operators. And here what we want to do is provide the largest geo-footprint that we can. We’re going to more than double the size of the market that we have in “Mango.” We significantly increased the number of countries, and we will lower the price of the phones by half, increasing the total addressable market very, very dramatically.

And, of course, we’re doing that in partnership with the handset makers. There will be a whole new range of phones that are available this fall around “Mango” at different price points, with different features, particularly from the partners that we have already been working with, Samsung, HTC, and LG. But I’m also very excited about the partnership that we announced in February with Nokia, and this is where they’re going to move to exclusively rely on Windows Phone as their platform.

Microsoft Reveals New Windows Phone 7 Mango Handsets From Samsung, Acer, And More.flv [July 12, 2011]

Steve Guggenheimer: Worldwide Partner Conference 2011 [July 12, 2011]

[see the above video excerpt]
Andy talked about Acer, Fujitsu, and ZTE as new phone providers. I’m happy for the first time ever to have one of each of the phones up here and running. All of these are running live “Mango” builds. Acer brings one of the large OEM brands into the phone space on Windows 7. I think this Fujitsu brings a little bit of lightheartedness and life along with a waterproof design. Great capability in terms of the camera. And the ZTE brings one of the largest manufacturers in the phone space into the Windows Phone 7 world. So, as we see the technology move forward in Derek’s great demo, we’re going to have devices that take advantage of it.

Last, but not least, I’m very happy to show, this is the first time, this is the new Samsung that’s coming. It’s very thin, and light, and that’s the theme you’re going to see as the processors get thinner and better battery life, as the screens get better, we’re going to see phenomenal screen resolutions, great battery life, lightweight devices across the phone.

Fujitsu to launch first Windows Phone Mango handset in… August? [July 16, 2011]

Say it ain’t so — not only is a phone not delayed, it’s actually planning to come out earlier than its quoted launch window? This particular miracle is the exception much more than the rule, but Microsoft’s latest Windows Phone OS (nicknamed “Mango,”) might come out prior to the anticipated fall release. According to Nikkei, Fujitsu will offer the very first Mango device, a waterproof phone called the IS12T, on KDDI “as early as late next month.” The phone is to be sold for 30,000 – 40,000 yen ($378 – 505), a reasonable amount of coin for what will likely be a higher-end device. And — if it’s the same handset showcased at this week’s Worldwide Partner Conference — a pink version will be on sale. So, what’s more enticing: a Hello Kitty-flavored Windows Phone, or a Samsung Galaxy S II lookalike running Mango? It’s a tough call.

Microsoft slips Windows Phone Mango ready by September

Microsoft spoils WP7 Mango launch timing

Microsoft’s Imagine Cup account on Twitter inadvertently gave away timing for the first Windows Phone 7 Mango devices through a Twitter post(since deleted). The company promised that the finalists in the student competition would all get “Windows Phone 7.5 Mango.” Every winning student would get a phone with the new OS “by September.”

The statement doesn’t directly equate to a full, public launch of Mango in September, but it does hint that the OS will at least be ready by the same time. Microsoft is holding its Build developer event the same month and will probably want a complete OS, if not production hardware, to show.

Outside of the new misstep, Microsoft has only ever committed to fall for the new WP7 update. Its timing may depend on new hardware. This year, the hardware partners are expanding significantly and include very regional companies like Fujitsu and ZTE along with returning veterans like HTC, LG, and Samsung. [via Mobility Digest]

Microsoft President Announces New Partner Benefits and Underscores Opportunity With Windows Phone ‘Mango’ [feature story, July 12, 2011]

During a keynote address at WPC, Lees also emphasized that now is the time for partners to join and benefit from the expanding Windows Phone ecosystem.

Lees highlighted a number of new featurescoming to the next version of Windows Phone, code-named “Mango,” that build upon the unique design of Windows Phone and deliver integrated experiences with the company’s massive business user base of more than 750 million Microsoft Office users, 150 million Exchange users and 100 million licensed SharePoint users.

As the only phone to offer Microsoft Office Mobile and Outlook Mobile built-in, the next version of Windows Phone, available later this year, will enable greater productivity by allowing businesses to extend their IT infrastructure and utilize Microsoft cloud-based services such as Office 365while increasing opportunities for partners around the globe, Lees said.

At WPC, Lees unveiled a range of new benefits and opportunities for members of the Microsoft Partner Network (MPN).

Lees announced an exclusive discount program that makes it easier for MPN members worldwide to obtain and experience Windows Phone. The new discount program, which begins immediately, is available to all MPN memberswith at least one Microsoft competency.

Lees also unveiled a new MPN app for all Mobility Competency partners that enables them to easily access exclusive technical and sales contentfor Windows Phone while on the go.

“When people try Windows Phone, they love it,” Lees says. “But it’s more than selling phones. Our goal is to equip partners with what they need to be successful, giving them the guidance and tools they need to bring compelling experiences to their customers.”

As a specific benefit to Mobility Competency partners, Lees announced a special MPN logo, available today, that partners may use to distinguish their apps from others in the Windows Phone Marketplace and App Hub.

Lees also announced that the next round of MPN updates in the fall will include a new way for partners that build mobile apps to attain the Mobility Competency certification by developing an app that meets specific business criteria.

For another view of the partner news shared about Windows Phone during WPC 2011, view the Windows Phone Mobility Partners video of Microsoft Partners discussing the opportunities for building Windows Phone applications and solutions.

Mango Provides Sweet Opportunities for Windows Phone Partners [July 12, 2011]

[​Author: Paul Bryan – Sr. Director, Product Management, Business Experience on the Windows Phone team.]

I’m at Worldwide Partner Conference (WPC) in Los Angeles today, which this year is hosting almost 15,000 Microsoft Partners from around the world. Today, Windows Phone Division President Andy Lees addressed attendees on the opportunities for partners with Windows Phone. It’s an exciting time for the Windows Phone business and we’re thrilled to see the great things people are saying about our next major update – code-named Mango. Take the great new product capabilities coming in Mango, combined with new partner benefits just announced and there’s never been a better time to join the rapidly growing Windows Phone ecosystem.

Expanding Windows Phone Partner Ecosystem

We launched Windows Phone 7 last fall with the help of our partners and have seen the ecosystem momentum build rapidly ever since. We’ve received great customer feedback about their experiences across the range of devices being offered by our hardware and mobile operator partners. More than 42,000 developers worldwide have registered with the Windows Phones Marketplace. To date, these developers have added more than 22,000 apps to the Windows Phone Marketplace, greatly expanding the range of experiences for Windows Phone customers. From hot consumer apps like Angry Birds, ESPN Scorecenter and Netflix, to business-focused apps like CWR Mobile CRM 2011, and PushBI, the Marketplace is growing stronger each day with the help of our partners.

Additionally, with our agreement with Nokia finalized, work is well underway to deliver Nokia phones on the Windows Phone platform before the end of the year.

Sweet, Sweet Mango

There’s a lot of buzz around our upcoming Mango update, which will add hundreds of new features and capabilities that build upon the unique design and integrated experiences of Windows Phone. If you’re a partner building solutions with Exchange and SharePoint, Mango adds a number of new Outlook and Office Mobile productivity features bringing even more value to your solutions on Windows Phone. Mango will also add built-in support for Office 365 and a free Lync Mobile app, making communication and collaboration a snap for companies whose infrastructure is on premises or in the cloud. Mango will also offer added functionality for organizations to make the most efficient use of resources, allowing IT departments to use existing infrastructure to manage phones or distribute their own applications using Targeted App Distribution in Marketplace.

For developers, Mango adds a range of new capabilities for delivering richer more compelling apps. In addition to support for SQL Linq, sockets, and background processing, Mango brings new ways for app developers to make the user experience more engaging and seamless through Live Tiles and integration with Bing search services.

Not only do these new features in Mango extend the premier productivity smartphone experience, but they’ll help partners to grow their business. In fact, a new study by IDC study suggests that by 2012 Windows Phone has the potential to generate annual attached software and service revenue of nearly $300 per Windows Phone device for partners. In other words, Windows Phone for the long-term is a huge opportunity for partners to attract new customers and grow their business.

windowsphone1.PNGFor app and solution developers, a familiar platform and enhanced development tools in Mango will enable partners to create and distribute new solutions and applications. Partners will continue to leverage familiar tools such as Silverlight, the XNA Framework, Visual Studio 2010 and Expression Blend, to bring new apps to market quickly. Some good examples of this are Yellowbook and REALTOR.com. Additionally, Yammer announced today they will be bringing their enterprise social networking app to the Windows Phone Marketplace later this year.

We also recently released the Windows Phone Mango Beta 2 Developer Tools so developers could try out the new capabilities and get a jump on building and testing new apps for Mango.

Revamped Mobility Competency and Added Discounts for Microsoft Partners

As part of WPC, we are happy to announce several new benefits designed to help partners experience Windows Phone and promote their Windows Phone expertise to customers.

First, we’re making it even easier for partners to obtain and experience Windows Phones with a new Windows Phone Discount Program. Partners with at least one Microsoft Competency can take advantage of exclusive discounts from mobile operators and hardware vendors for all of their employees worldwide.

We’re also making it easier for partners to stay informed through a new MPN app for Windows Phone, which provides access to exclusive technical and sales content.

windowsphone2.jpg

In addition, we’re revamping the Mobility Competency certification. Partners can earn the Microsoft Mobility Competency for their organizations through newly revised Windows Phone training. And for the first time, beginning with the next round of MPN updates this fall, partners will be able to obtain the Microsoft Mobility Competency certification for their company by developing an app that meets specific criteria as a business application. Through the Mobility Competency, partners can become and stay proficient in Windows Phone app development and solution deployment. They will also be able to utilize a special MPN logo, available immediately, to distinguish their apps in the Windows Phone Marketplace and App Hub.

Exciting times indeed! With new partners, new products, new platform capabilities, new partner benefits and more great apps and solutions being delivered every day, it is a great time to be part of the Windows Phone ecosystem and take advantage of the tremendous opportunity ahead.

For information about the opportunities with Windows Phone Mango or the Marketplace, visit our Partner site. To view sessions from Worldwide Partner Conference, visit here. For more information, we encourage you to check out this feature on Microsoft News Center.

To learn more about the Windows Phone partner news shared today, we encourage you to check out this video that features Microsoft Partners discussing the opportunities for building applications and solutions for Windows Phone.

The Weekly Wrap: Marketplace tops 25,000, Windows Phone goes Hollywood, Garmin’s new app [Windows Phone Blog, July 8, 2011]

Marketplace tops 25,000 While estimates differ, unofficial Marketplace counters now peg our app inventory at somewhere north of 25,000, as multiple bloggers noted last week. Regardless of whose numbers you trust, the bottom line is that Marketplace is going gangbusters. But buzz about the overall app count overshadowed what I think was the week’s most exciting news: the boatload of brand-name apps that poured in. WPCentral counts at least 52 marquee titles in the last two weeks. Liveside.net, meanwhile, compiled its own handy list (complete with download links) of standouts. Check it out

Devices’ information:

WP7 Mango: HTC Eternity Windows Phone 7 Specs and Release Date [Jul 13, 2011]

The images leaked online provides glimpses of new HTC Windows Phone 7, currently being called ‘Eternity’. HTC Eternity will land as one of the first most smart phones running Microsoft Windows Phone 7 Mango (WP7) operating system.

HTC reconfirmed its commitment to Windows Phone 7 based smartphones in a statement at Global Technology Summit in Paris by HTC Head European Nations, Florian Seiche to to Reuters that they will keep developing Windows Phone 7 smart phones like HTC Eternity and HTC Omega, despite of Microsoft Nokia deal:

It will not change our commitment to Microsoft. With a new player entering, it should actually help to elevate the relevance of that platform. We actually feel that we should be able to benefit. The long-term opportunity with Nokia entering will definitely bring Windows back to critical mass.

There were few news leaks back in May 2011, which failed to attract much attention, but this time there are enough details to be given weight. The new HTC Eternity appears to have a big 4.7 inches WVGA Super LCD display screen, bigger than on the Samsung Infuse 4G. So if a large screen is what you wish for, the HTC Eternity might be the phone you want to wait on. Other than that, HTC Eternity seems to have a typical spec sheet for a mid-to-high level device, beside running Windows Phone 7 (WP7 Mango).

HTC Eternity is said to have a single core 1.5GHz processor, 4.7 inch screen with WVGA resolution, 8P autofocus camera with dual-LED 720p video recording capabilities, 1.3 MP front camera and 16GB internal memory. There was also a DLNA, Bluetooth, WiFi, GPS, 1650mAh battery. Here under is the HTC Eternity Windows Phone 7 complete specs:

WP7 Mango: HTC Eternity Windows Phone 7 Specs
Microprocessor Chipset CPU:Clock: 1500 MHz
CPU: Qualcomm Snapdragon MSM8255
Memory,_Storage+capacity RAM+capacity: 512 MiB
ROM:capacity: 14.9 GiB
Display Display Type: Super LCD , 16777216 scales Display:Diagonal: 4.7 ”
Display:Resolution: 480 x 800
Sound Microphone(s): stereo
Loudspeaker(s): Supported
Audio-Output: 3.5mm
Cellular Phone Cellular_Networks: GSM850, GSM900, GSM1800, GSM1900, UMTS900, UMTS2100 Cellular-Data-Links: CSD, GPRS, EDGE, UMTS, HSDPA, HSUPA, HSPA+
Call Alert: 64 -chord melody
Vibrating+Alert: Supported
Speakerphone-: Supported
Control+Peripherals Positioning:Device: Multi-touch screen Primary Keyboard: Not supported Directional+Pad: Not supported
Scroll-Wheel: Not supported
Interfaces Expansion:Slots: Not supported USB: USB 2.0 client, 480Mbit/s
micro-USB Bluetooth: Bluetooth 2.1 + EDR Wireless LAN: 802.11b, 802.11g, 802.11n Infrared:Gate: Not supported
Multimedia+Telecommunication Analog Radio Receiver: FM radio (87.5-108MHz) with RDS Digital+Media-Broadcast_Tuner: Not supported
Satellite Navigation Built-in-GPS module: Supported Complementary GPS-Services: Assisted GPS
Built-in-Digital-Camera Main-Camera: 8 MP Autofocus-(AF): Supported Optical+Zoom: 1 x Macro_Mode: Supported Built-in Flash: mobile light (LED) Secondary-Camera: 1.3 MP
Additional Details Built-in-accelerometer: Supported Battery: removable Battery Capacity: 1650 mAh

WP7 Mango: HTC Eternity Windows Phone 7 Release Date

Release Date and Price of the new Windows Mobile 7 based HTC Eternity are yet officially disclosed by the HTC, but reportedly HTC Eternity will be released in fall 2011.

HTC to tap tablet boom with many models [Reuters from Paris, May 17, 2011]

Smartphone maker HTC plans to roll out a range of different tablet computers to gain a foothold in the fast-growing market, a company executive said on Tuesday.

The global market for tablets, started only last year with Apple’s iPad, will likely grow to 108 million devices next year, compared with just 17.6 million in 2010, according to research firm Gartner.

“I really believe that the tablet market is really going to be a big market in the future and this is just the start,” HTC Europe head Florian Seiche told the Reuters Global Technology Summit.

“In five years’ time, schools will have tablets probably instead of physical notebooks. I think that’s going to be such a massive wave of additional penetration in society… I think we can’t even guess the potential.”

Seiche said HTC’s first tablet, the Flyer, had made a good start in terms of sales.

“It’s early days but we feel very good about it,” he said.

NOKIA BOOST

HTC should benefit from Nokia’s deal to start using Microsoft’s software in its smartphones as this will boost Windows’ share of the smartphone market, Seiche said.

“It will not change our commitment to Microsoft,” he said. “With a new player entering, it should actually help to elevate the relevance of that platform … we actually feel that we should be able to benefit.”

Microsoft’s mobile platform has rapidly lost appeal among consumers who have instead picked iPhones, BlackBerrys and phones running on Google’s Android platform, which became market leader in the last quarter. It now controls only around 3 percent of the smartphone market.

The long-term opportunity with Nokia entering will definitely bring Windows back to critical mass,” Seiche said at the summit at the Reuters office in Paris.

HTC uses Microsoft software, although its growth has mostly come from smartphones using Google’s Android platform.

“Android has had tremendous growth and we believe that this trend is going to continue, definitely,” Seiche said. “Android’s growth … is going to expand further to Asia and the emerging markets.”

Seiche added that he expects HTC to roll out its first mobile phone using near-field communications (NFC) technology for mobile payments within the next 12 months.

NFC is a short-range way to swap data wirelessly, meaning mobile phones can become a way to pay for goods, store e-tickets or swap photos and business cards.

Samsung GT-i8350 with Windows Phone Emerges [July 11, 2011]

South Korean mobile phone maker Samsung Electronics is reportedly gearing up for the launch of a new Windows Phone handset, one that would become the direct successor of the company’s Omnia 7 handset.

Samsung was named among the launch partners for Microsoft’s Windows Phone Mango OS, and we knew that the vendor was preparing the release of new devices based on the platform, but no specific info on the handset was available until now.

However, a user agent profile (UAProf) of the Samsung GT-i8350 shows that the company might have this device included among the first series of Mango-powered handsets.

What the said agent string shows is that this mobile phone will arrive on the market with the IE9 browser on board, which leaves little room for speculation when it comes to the operating system it would be based on.

Windows Phone Mango was unveiled previously this year with the new Internet Explorer Mobile 9 on board, and this is the platform the Samsung’s GT-i8350 will land on shelves with.

Moreover, the said UAProf (found by nanapho) unveils that the new device will arrive on the market with a screen capable of boasting a 800 x 480 pixel resolution, and that it would sport Bluetooth 2.1 and HSPA+ connectivity capabilities as well.

As UnwiredView notes in a recent article, the new mobile phone was already added to the handset vendor’s website, though its page does not offer any info at the moment.

Last year, Samsung came to the market with more than just one Windows Phone device, and chances are that it would launch more than one such device this year as well.

This means that Samsung GT-i8350 will soon be accompanied by more new Windows Phone devices on the company’s website, most probably targeted at various segments of the market.

However, it remains to be seen what hardware Samsung would pack inside these mobile phone since nothing was confirmed on it for the time being.

Samsung GT-i8350 may be the WP7 Mango-running successor to the Omnia 7 [July 11, 2011]

Steve Ballmer has said that a new wave of Windows Phones is due out for release before the end of this year, and as we’re approaching that deadline, the leaks are starting to come in. Today we have what is probably going to be one of Samsung’s new WP7 handsets, one to run the Mango update (which will likely be called either WP 7.1 or 7.5) from day one.

Japanese site Nanapho has uncovered a user agent profile (UAProf) of the Samsung GT-i8350, and apparently its Web browser will be IE9. Now, those following Microsoft stuff closely know that Mango is the first version of WP7 to come with what the company is branding IE9, so that can only mean that this new device will run just that.

The GT-i8350 will have an 800×480 resolution screen (which is the standard resolution for WP7), and will come with support for Bluetooth 2.1, and HSPA+.

The i8350 has also received its very own (blank, for now) page in Samsung’s UK support database, pretty much confirming that it’s real. You can see a screengrab of that above.

WMPU speculates that this may be the successor to the Omnia 7, Samsung’s first WP7 device released last year, which has the model number GT-i8700. However, that may not be the case. The i8350 may just be a lower-end device to accompany that successor onto the market. This is also pure speculation, but let’s keep in mind that Samsung likes to increment model numbers for sequels (successor devices). So, for example, the Galaxy S II is GT-i9100 whereas the original Galaxy S was GT-i9000. If Samsung hasn’t just changed that strategy, logically it means that the i8350 should be part of the WP7 lineup, yes, but not a successor to the Omnia 7. Perhaps the Omnia 7 will get a higher-specced successor that will be called i8750, or i8800. That would make sense.

Then again, these are all just (almost) random numbers anyway, so Samsung may have just chosen to do things differently this time. We’ll let you know as soon as we find out for sure.

New images of ZTE’s Mango device destined for China [July 16, 2011]

During WPC11, we saw the first glimpse of ZTE’s entry into the Windows Phone field. Now a few more images have come forth, posted by ZTE’s Dr. Luo Zhongsheng, who evidently is their head of smartphone development.

The phone can be seen sporting some art on the start screen as well as localized Chinese language support. In addition, it looks to have Weibo built in instead of Twitter, which is blocked in China. Weibo is described as “a Chinese microblogging site akin to a hybrid of Twitter and Facebook…”. The device itself looks like a prototype as opposed to the more polished version demonstrated at WPC, though as NanaPho suggests perhaps different color schemes will be offered. No other device specs are currently known.

This coincides nicely with the leak about the Toshiba-Fujitsu phone release in August, suggesting that indeed these phones are coming earlier than expected an the Asian market is gearing up for release.

Update: Evidently it’s not Weibos that’s built, but rather a standalone app running the service.

Fujitsu IS12T with Windows Phone 7 Mango coming next month [July 18, 2011]

At Microsoft’s 2011 Partner Conference , the company had a handful of unreleased smartphones on display running the Windows Phone 7 Mango update. The quartet included models from Samsung, Acer, ZTE, and Fujitsu, and it was thought that the phones would launch sometime in September when Mango is due to be released. The Fujitsu IS12T, however, appears to be ahead of schedule and could be the first to market — launching in August on Japanese carrier KDDI.

Details on the new smartphones remain scant so far, though the Samsung SGHi937 looks an awful lot like a Galaxy S II — one of the most popular non-iPhones in the world right now — running Windows Phone 7 instead of Android. If the internals remain unchanged, then we know exactly what kind of hardware the SGHi937 will pack.

When it comes to the Fujitsu IS12T, there’s not quite as much information. The IS12T won’t sport a massive display like the Samsung’s 4.5″ — instead, it’s a more modest 3.7″ screen that’s expected. There’s also a very good chance the IS12T will feature a 12 megapixel camera, based on its model number, Fujitsu’s past 12MP offerings, and the company’s statement that the phone will feature “great capabilities in terms  of the camera.” In addition to a stellar camera, the IS12T is going to be waterproof.

While snapping high-quality digital pics in the rain is cool, it’s even more amazing to think that a manufacturer may actually be releasing a smartphone ahead of schedule for once — instead of repeatedly delaying its launch. Pricing has yet to be revealed for the IS12T, but it’s safe to say this won’t be one of those $100 Windows Phone 7 devices Microsoft talked about.

More at WM Power User and Nikkei

Acer reveals its first Windows Phone Mango device [May 31, 2011]

Acer W4Windows Phone
Acer has revealed its first Windows Phone Mango device at Computex this week.

The device, expected later this year, will be named the Acer W4. Acer’s Windows Phone includes a 5PM camera, 8GB storage and DLNA support. Chinese blog zol.com.cn published images of the device on Tuesday after discovering it on display at Computex this week. Microsoft previously revealed that Acer was a new hardware parter for Windows Phone Mango devices during a VIP event last week.

Acer’s W4 specifications:

  • 3.6-inch WVGA
  • Screen Resolution: 480×800
  • 5mp Camera with auto-focus
  • HSPA 850/1900 or 900/2100 /GSM quad band 850/900/ 1800/ 1900 MHz Support
  • Qualcomm MSM8255 running at 1GHz
  • Wifi, Bluetooth 2.1
  • DLNA Support (DMC)
  • Windows Phone Mango
  • 8GB Storage

Acer W4 Windows Phone Mango device

Image credits: zol.com.cn

What a difference from the current offering!

From Buy your phone [US] site and HTC’s past press release:

Vendor and model:

Date:

Highlights:

Display:

Processor:

Carrier(s) and store(s):

HTC HD7

Friday, December 03, 2010 4:51 PM

•Seamlessly brings together work, play and family.

•Features the largest screen on a Windows Phone.

•Enjoy Netflix, T-Mobile TV, and Slacker Radio.

480×800

(4.3”)

1 GHz Qualcomm QSD8250

US: T-Mobile, Microsoft Store, Amazon.com, Best Buy, Radio Shack, Walmart

Singapore [Oct 12, 2010], Malaysia [Oct 13, 2010], Hong Kong [Nov 11, 2010], Australia: Telstra [March 29, 2011]

HTC Arrive™
[= HTC 7 Pro]

Friday, March 18, 2011 9:58 AM

•Sliding full QWERTY keyboard

•Tilt-up display

•5MP camera and 720p HD camcorder

[access to Zune, Xbox LIVE and Netflix]

480×800

(3.6”)

1 GHz Qualcomm QSD8250

US: Sprint, Microsoft Store, Amazon.com, Best Buy, Walmart

Samsung Focus™

Sunday, August 01, 2010 5:50 PM

•Thinnest, lightest Windows Phone.

•Brilliant 4″ Super AMOLED WVGA screen.

•Audience Noise Reduction for crystal clear calls.

480×800

(4.0”)

1 GHz Qualcomm QSD8250

US: AT&T, Amazon.com, Best Buy, Costco, Walmart

LG Quantum™

Friday, October 08, 2010 3:52 PM

•Full QWERTY keyboard for faster, easier texting.

•16 GB internal memory.

•Play To (or DLNA) software that lets you easily transfer photos & videos to your home entertainment system.

480×800

(3.5”)

1 GHz

Snapdragon  [Qualcomm QSD8250]

US: AT&T, Amazon.com, Costco, Walmart

HTC Surround™

Monday, October 04, 2010 2:51 PM

•Slide-out speakers with SRS Dolby Mobile surround sound.

•Surround yourself with entertainment, wherever you go.

•Kickstand for hands-free viewing.

16 GB internal memory.

480×800

(3.8”)

1 GHz Qualcomm QSD8250

US: AT&T, Amazon.com, Best Buy, Radio Shack, Walmart

Dell Venue Pro

Sunday, September 26, 2010 3:58 PM

•Vertical QWERTY keyboard provides quick access.

•Scratch and shatter resistant screen.

•Available on the T-Mobile network, exclusively from Dell.

480×800

(4.1”)

1 GHz Qualcomm QSD8250

US: Dell

HTC HD7S [largely = HD7 but with a Super LCD screen, it is exclusive to AT&T in the USA ]

Tuesday, May 17, 2011 10:13 AM

•High resolution 4.3” WVGA Super LCD Screen

•Slim, premium design with kickstand

•5 MP camera with auto focus and dual LED flash (records 720p HD video)

•Voice-activated, location-aware Bing search engine

480×800

(4.3”)

1 GHz Qualcomm QSD8250

US: AT&T, Amazon.com, Best Buy, Walmart

HTC Trophy™

Thursday, May 19, 2011 1:09 PM

•3.8” touchscreen for optimal gaming [harnesses the power of Xbox LIVE® for epic gaming]

•HD video

•5 MP camera with autofocus and flash

480×800

(3.5”)

1 GHz

Qualcomm QSD8250

US: Verizon, Microsoft Store, Amazon.com, Best Buy

Singapore [Oct 12, 2010]

wikipedia HTC HD7: The HD7 shares nearly all its specifications with its older Windows Mobile 6.5-running brother, the HD2, including the screen resolution and size (4.3 inches diagonal and WVGA 800×400 resolution).

HTC GOES BIG WITH MICROSOFT; LAUNCHING FIVE NEW WINDOWS PHONE 7 SMARTPHONES [Oct 11, 2010]: … HTC 7 Surround, HTC 7 Mozart, HTC 7 Trophy, HTC 7 Pro and HTC HD7 …

HTC 7 Mozart („a phone powered by high-fidelity audio”): Singapore [Oct 12, 2010], Malaysia [Oct 13, 2010], Hong Kong [Nov 11, 2010]

From List of Windows Phone devices (wikipedia):

Product
Release Date
System on Chip
Memory (RAM)
Display
Weight (g)
Carrier
Notes
Dell Venue Pro
November 8, 2010
QSD8250
512MB
4.1″, WVGA 800×480 AMOLED
165
AT&T, T-Mobile USA, Rogers (Pending)
Has vertical slide-out keyboard
HTC 7 Pro
January 17, 2011
QSD8250
576MB
3.6″, WVGA
185
Sprint, US Cellular, Cellular South
CDMA: HTC Arrive
Has slide-out keyboard
HTC 7 Surround
October 21, 2010
QSD8250
448MB
3.8″, WVGA
165
AT&T, TELUS
Has slide-out speaker
HTC 7 Trophy
October 21, 2010
QSD8650
576MB
3.8″, WVGA
140
Vodafone UK, Vodafone Australia, Vodafone NZ, Verizon
LCD, 8GB, Yellow back on International version.
SLCD, 16GB, Red back on Verizon.
HTC 7 Mozart
October 21, 2010
QSD8250
576MB
3.7″, WVGA
130
Orange U.K., Telstra
Camera: 8 megapixels + Xenon flash
HTC HD7
October 21, 2010
QSD8250
576MB
4.3″, WVGA
162
T-Mobile USA, O2 UK, Bell
Largest screen on a WP7 device
LG Optimus 7
October 21, 2010
QSD8250
512MB
3.8″, WVGA
157
TELUS, Vodafone UK, Optus
DLNA
LG Quantum
October 21, 2010
QSD8250
512MB
3.5″, WVGA
178
AT&T, Bell
Has slide-out keyboard
Samsung Focus
October 21, 2010
QSD8250
512MB
4.0″, WVGA Super AMOLED
115
AT&T, Rogers
Storage may be expanded with a compatible microSD card
Samsung Omnia 7
October 21, 2010
QSD8250
512MB
4.0″, WVGA Super AMOLED
138
Orange UK, 3 UK, Optus

Developers’ information:

Developer News: Beta Mango Tools Available Today [Windows Phone Developer Blog, July 8, 2011]

Today Microsoft is showing off many of the new features coming in the next version of Windows Phone, code named Mango. We highlighted a few features like hardware accelerated IE9 with HTML5, increased multitasking capabilities and the addition of Twitter to the People hub at Mobile World Congress in February. During April’s MIX11 event, we gave developers a deep dive into new Mango capabilities and opportunities and promised new tools in May.

I’m pleased to announce that the beta release of the Windows Phone Developer Tools that support Mango will be available for download today, in just a few hours! We also have some exciting news to share about Windows Phone Marketplace.

First the tools. Developers can use this beta release to get ready for the upcoming Windows Phone OS release. The new application platform capabilities coming in Mango deliver the top features you have asked for:

– Background processing- New profiler and emulator for testing- Use of Silverlight + XNA together- Silverlight 4- IE9 web browser control- Live Tile enhancements: use of back of tiles and ability to update Live Tiles locally – Deep linking into apps from notifications and Live Tiles- Additional sensors; direct camera access, compass & gyro- Fast application switching- Networking / sockets for communications- Local SQL database for structured storage- Access to calendar and contacts for apps

You also asked us for new ways to keep customers engaged with your apps, so we’ve taken steps in Mango that will help keep great apps front and center. The Mango release allows you to create a new wave of apps and games that appeal to consumers by further extending the popular Windows Phone design system. Mango also helps apps remain engaged with the customer and contextually relevant through integration with the Bing Search, Pictures and Music & Video experiences, as well as added functionality for the Live Tiles that live on the Start screen. For example, with Bing Search, when searching for products, movies, events or places, the customer will see among the results a link to a “Quick Card” for that specific search. That card contains an “apps” panel (formerly known as the “extras” panel).  This panel will display both installed and non-installed apps associated with that search query term. This is just one example of how the app experience is different on a Windows Phone in ways that give you a unique opportunity.

With Mango we are not only improving the way we merchandise your apps within our Marketplace, we are also exposing your apps as a part of our customers’ everyday experiences. You want more ways for consumers to find your apps; and consumers have been raving about the Windows Phone design. In short, we are listening and investing accordingly. You should expect us to continue to deliver technology and services unlike anyone else.

Below is simple graphic to help show how new tools and resources are unlocking additional developer capabilities: image

Another way we’re growing the Windows Phone ecosystem is by expanding geographically. With Mango, Windows Phone Marketplace will expand from 16 to 35 countries where both app submission and app purchase are supported locally.

Today Adding with Mango
Australia, Austria, Belgium, Canada, France, Germany, Hong Kong, Ireland, Italy, Mexico, New Zealand, Singapore, Spain, Switzerland, UK, USA Brazil, Chile, Colombia, Czech Republic, Denmark, Finland, Greece, Hungary, India, Japan, Korea (South), Netherlands, Norway, Poland, Portugal, Russia, South Africa, Sweden, Taiwan

In addition, Windows Phone Marketplace now supports app submission in China, Israel and Luxembourg. For those countries that are not yet locally supported by Marketplace, we continue to expand the Global Publisher Program we announced in early March. Today, developers in 69 Middle Eastern and African countries can submit applications via Yalla Apps. App Port supports 13 countries in East Asia. APPA Market is available to developers in 19 central European countries. And both Device7 and MTel service China.

To better reach customers worldwide, I’m also pleased to announce today that Mango will offer a new web version of Windows Phone Marketplace. This will enable customers to shop, share and buy/download apps and games from any PC and send them directly to their phones. You get more visibility for your apps with no extra work. The Mango Marketplace will bring several new features and capabilities that Todd Brix will be expanding upon here a little later.

We’re extremely grateful for all that the Windows Phone developer community has accomplished in a few short months and we’re excited to see what you can do with Mango. Today we offer more than 17,000 apps, and with 42,000 registered developers and counting, plenty more are on the way. We recognize that the strength of our developer community and the Windows Phone ecosystem is a big reason why analysts are so optimistic about the Windows Phone ecosystem in predicting sales of hundreds of millions of units by 2015. With the release of beta tools for Mango, we hope we’ve taking another big step toward giving you exactly what you want from a platform so that you are inspired to create the next generation of amazing Windows Phone apps and games. In the coming weeks we will announce the date when App Hub will begin accepting Mango apps for certification.

Whether you’re a new or existing Windows Phone developer, now is the perfect time to take the next step and be what’s next in mobile. The checklist is simple:

Thank you, Matt Bencke General Manager, Windows Phone Developer and Marketplace Experiences

More information:
Windows Phone SDK 7.1 Beta2[June 29, 2011]

The new Windows Phone SDK 7.1 Beta2 (renamed from WPDT) can be used to develop Applications for both 7.0 and 7.1 version of Windows Phone OS releases.

The Windows Phone SDK includes the following

  • Windows Phone SDK 7.1 (Beta2)
  • Windows Phone Emulator (Beta2)
  • Windows Phone SDK 7.1 Assemblies (Beta2)
  • Silverlight 4 SDK and DRT
  • Windows Phone SDK 7.1 Extensions for XNA Game Studio 4.0
  • Microsoft Expression Blend SDK Preview for Windows Phone 7.1
  • WCF Data Services Client for Window Phone 7.1
  • Microsoft Advertising SDK for Windows Phone 7

SketchFlow Template for Windows Phone [June 9, 2011]

The SketchFlow Template for Windows Phone 7 adds a new SketchFlow template for Expression Blend* users that makes creating a prototype of a Windows Phone app quick and easy. * Please note: To use the SketchFlow Template for Windows Phone 7 you need to be using Blend 4 with SketchFlow enabled (this is the version of Blend that comes with both Expression Studio 4 Ultimate and Visual Studio 2010 Ultimate) you also need to have the Mango developer tools  Windows Phone SDK 7.1 Beta2 for Windows Phone installed. 2011-06-09 09h43_52   2011-06-09 09h44_47   2011-06-09 09h47_25   2011-06-09 09h47_52 2011-06-09 10h01_27

Developers Get Goody Basket Full of Mangos [Windows Phone Developer Blog, June 29, 2011]

Over the course of the past six months, the Windows Phone team has been working very hard to ensure that there is a great experience for all of our customers with the upcoming Mango release of the Windows Phone OS. That means educating consumers, empowering developers, and working closely with our hardware and carrier partners to bring it all together with great devices.

Just last week, the first reviews of Mango started landing in press and blogs and the early sentiment is very encouraging. People get that Mango is a big step that dramatically enhances the core experiences that we all rely on our phones for every day; messaging and communication, use of any of our more than 20,000 great apps and games, and great use of the Web. AllThingsD wrote that the OS “is a mix of elegance and whimsy that’s a treat to use.” Gizmodo went so far as to say that Mango feels “complete.” However, it was The Daily that offered some bigger picture perspective in noting that, “it took Android nearly two years before hitting critical mass and three years to begin carving out a significant chunk of the smartphone market.” We’ve got a great product in Windows Phone and we feel we’re right on track, in fact we’ve already seen reports showing that in only a few months we’ve surpassed the more established RIM marketplace in the number of real apps available to customers.

Since beginning this journey with the new Windows Phone developer platform, we have aspired to be transparent, easy to build for, and easy to partner with.

We know that one of the most impactful things we can do for developers is to help them get their hands on the actual product. For Mango, that starts today with an early access program for developers. We’re still working out some final kinks in the distribution and support infrastructure for delivering Mango to all of our registered developers around the world, but are inviting the most eager developers to come get Mango today, for their retail devices, as part of our early access program! We expect the full distribution infrastructure to be fully operational in the next couple of weeks. For now, consider yourself a beta tester for the distribution process. Registered developers will get invites to the Microsoft Connect site, which will give them access to Mango. This build of Mango should also be viewed as beta quality, so there are still consumer features missing, but you can now start building apps and testing them against retail devices. Here’s what you need to do:

  • Download the Windows Phone Developer Tools Beta 2 – You will need to update your developer tools to update your phone and to deploy your apps, so run…get them now.
  • Read the instructions before updating – These are very important steps which you need to follow to the letter. We’re committed to supporting our developer community with such an early access program, so if you have questions, start with the forums, which we are monitoring.

This is especially well timed for the tens of thousands of student developers who have registered through DreamSpark or related programs. Just as our Spring Cleaning program encouraged developers to finish up their projects over the past few months, delivering thousands of new apps, summer break is the perfect time for student developers to relax and have some fun with Mango. With the free Windows Phone Developer Tools Beta 2 and free access to Mango, now is the perfect time to see what you can do with Windows Phone. To make it even more interesting for students looking for a great summer project, we’ve set aside 50 Mango phones for those students who are building the next big thing on Windows Phone. Want one? Here’s what to do:

  1. Make sure you’re registered for DreamSpark
  2. Download and install Expression Studio Ultimate and the new Mango Windows Phone Developer Tools (available free as a member of DreamSpark)
  3. Get the free Sketchflow Template for Windows Phone and create a Sketchflow mock-up of your app
  4. Post the Sketchflow mock-up somewhere online and tweet out the link using the hash tag #WPAppItUp
  5. We will review all prototypes and will contact the developers who submit the best ones and send them a special Mango developer device

There’s lots to like in Beta2 of the developer tools, and some new goodies as well. You can find the release notes here, but I also wanted to talk about the new Advertising SDK June 2011 Update that was released for Windows Phone 7 earlier this week. The June update makes it even easier for developers to earn money and build ad-enabled mobile apps with streamlined Ad Control APIs and other new features.

Lastly, we got a lot of questions in email and on twitter as to why reviewers got Mango first. In short, it was to allow us to get you Mango today. Bringing a product to market requires a healthy balance between marketing features and empowering the ecosystem. Striking that balance is all about sequence. Microsoft believes in developers like no other company, but not even we want developer tear downs serving as the foundation for how consumers ultimately understand Mango. To get Mango to you today, we had to first set some context so that the market would have a good understanding of the product and not define us only by those features that developers uncovered. Think of it this way: if you could choose which path to go down, would you rather have a tightly selected group of influential people write your first reviews of your amazing app, or leave it to the customers with the fastest fingers?

So what now? First, go get the tools. Second, update your retail phones to Mango. Third, go rub it in your friends’ faces that you have Mango and they don’t. Fourth, start building your Mango apps using some of the cool new functionality like fast app resume, updated Live Tiles, Motion Sensor, Live Agents, sockets, background audio or raw camera access. There will be a tools update in the coming months which will have the go-live license you need to publish Mango apps to the Marketplace, but don’t wait. With the tools and the ability to test on Mango enabled phones, you should all be in really good shape when Mango is released later this year.

For the early access program, here are the countries which are explicitly supported – meaning that should your device become unusable as a result of updating, we will be able to process it for fixing once the full distribution infrastructure is fully operational in the next couple of weeks:

Australia, Austria, Belgium, Brazil, Canada, Denmark, Finland, France, Germany, Great Britain, Greece, Ireland, Italy, Luxembourg, Mexico, Netherlands, New Zealand, Norway, Portugal, Spain, Sweden, Switzerland, United States

Windows Phone around the world: Language support in Mango [Windows Phone Blog, July 6, 2011]

At launch last year we supported 5 display languages: English (US and UK), French, German, Italian, and Spanish.

In Mango, we’re adding 17 more: Brazilian Portuguese, Chinese (simplified and traditional), Czech, Danish, Dutch, Finnish, Greek, Hungarian, Japanese, Korean, Norwegian (Bokmål), Polish, Portuguese, Russian, and Swedish.

The Zune software will be available for the same set of languages.

Displaying some of these new languages required new phone fonts. Specifically, we’ve added 4 beautiful new fonts for the East Asian languages:

… The 20 new keyboard options are: Brazilian Portuguese, Czech, Danish, Dutch, Finnish, Greek, Hungarian, Indonesian, Japanese, Korean, Malaysian, Norwegian, Polish, Portuguese, Russian, Simplified Chinese, Swedish, Traditional Chinese, Turkish, and Ukrainian.

The keyboard languages shown in italics regular [here] also support text prediction, which makes typing on your phone faster and easier. Even better, all these input languages are available on any Windows Phone, regardless of which display languages come with it.

The new East Asian keyboards—which were developed in Asia by the same team that creates them for Windows and Office—are especially neat. We’ll explore them in more detail in a future post.

This fall you’ll see a significant increase in the number of new countries where the Xbox LIVE service for Windows Phone is available. The Zune Marketplace for music, video, and podcasts is also expanding to more markets. We’re not quite ready to announce specifics just yet—expect to hear more later this summer.

Finally, we get many questions about specific phone features—especially ones related to searching and mapping— and where they’ll be available. Here’s a list of ones we hear about most:

  • Bing search (accessed from the phone’s hardware Search button) is available in 33 countries: Argentina, Australia, Austria, Belgium, Brazil, Canada, Denmark, Finland, France, Germany, Hong Kong, India, Indonesia, Ireland, Italy, Japan, Korea, Malaysia, Mexico, Netherlands, New Zealand, Norway, Philippines, Portugal, Russia, Singapore, South Africa, Spain, Sweden, Switzerland, Taiwan, United Kingdom, and the United States. (Elsewhere, handset and mobile operators can configure the hardware search button to a locally-relevant search site).
  • Local search results show up in 6 countries: Australia, Canada, France, Germany, United Kingdom, and the United States.
  • Maps is supported in 19 countries: Australia, Austria, Belgium, Brazil, Canada, Denmark, Finland, France, Germany, Italy, Netherlands, New Zealand, Portugal, Singapore, Spain, Sweden, Switzerland, United Kingdom, and the United States.
  • Voice-to-text and Voice-to-dial is available in 6 countries: France, Germany, Italy, Spain, United Kingdom, and the Unites States.
  • Voice search is supported in 4 countries: France, Germany, United Kingdom, and the United States.

Extending services such as Marketplace or Xbox LIVE to more markets, on the other hand, is a very different type of challenge—as much legal and organizational as it is technical. But we’re working hard to scale up our engineering effort from a couple dozen countries to the entire world.

Application Certification Requirements for Windows Phone

Windows Phone

June 24, 2011

This section provides the policies and technical requirements that a Windows Phone application or game must meet to pass certification and to be eligible for listing in Windows Phone Marketplace.

1.0 Program Overview


A core principle that is applied in designing the certification process is that each individual policy or requirement is clear, objective, and testable. This transparency is designed to help developers easily design and test applications to meet these requirements.

The following list shows the pillars of the certification program:

  1. Applications are reliable.
  2. Applications make efficient use of resources.
  3. Applications do not interfere with the phone functionality.
  4. Applications are free of malicious software.

1.1 What You Need to Know About the Submission and Certification Process

When your application is ready for publication, it must go through the certification process before it is eligible for listing in Windows Phone Marketplace. Your application does not have to be signed before submission.

The certification process involves static validation and automated testing of your application to verify that it meets all the policies and requirements. The following list shows the five major categories of policies and requirements:

The following is a simplified illustration of the submission and certification process.

CertificationDiagram

1.1.1 Process Outline

The following is a brief outline of the submission and certification process:

  1. Sign in to your account in App Hub.
  2. Create a new application submission.
  3. Upload the application XAP file.
  4. Enter the metadata for the application, such as title, description, category, and iconography.
  5. Select the distribution countries/regions and pricing.
  6. The XAP file is validated while you are entering metadata.
  7. If the XAP file validation succeeds, the submission process continues to Step 8; otherwise, the process terminates and you get a notification. Select the option to publish immediately after passing the certification process or to wait until you decide to publish.
  8. The XAP file is repackaged as described in Section 4.1.2.
  9. The repackaged XAP file is deployed to a phone for the certification testing. Certification involves the automated and manual verification of the meeting of the requirements that are described in Sections 2, 3, 4, 5, and 6.
  10. If the application meets all the requirements, the repackaged XAP and assembly files are signed, and the application is eligible for publication according to the option selected in Step 8.
  11. If the application fails one or more of the requirements, you get a failure report and the application is not published.
Important noteImportant Note:
When you submit an application update for certification, it goes through the same process as the original application.

1.1.2 Code Signing

Code signing occurs automatically once the application has successfully passed the certification testing without any failure. The application and repackaged XAP files are signed with the Authenticode® certificate assigned to you when you registered for App Hub membership. Any signatures in a submitted application or XAP files will be replaced and are not retained.

Important noteImportant Note:
All applications must be signed with the Microsoft issued Authenticode certificate before they can be installed and run on commercially available Windows Phone devices.

Zune to Expand Multiscreen Entertainment Services Into International Markets [Sept 10, 2010, as Zune Marketplace was originally only available in the United States]

Microsoft Corp. today announced the further international expansion of Zune, its digital entertainment service. This fall, Zune will expand its music and video footprint and bring the free Zune software, Zune Marketplace online store, Zune Pass1 music subscription service and enhanced features on Zune.net to new markets, providing a comprehensive entertainment experience on Windows-based PCs, on the go with Windows Phone 7 and in your living room through Xbox LIVE.2

“The integration between Zune, Windows Phone 7 and Xbox LIVE is an exciting expansion in our entertainment offerings,” said Craig Eisler, corporate vice president, Interactive Entertainment Business Group at Microsoft. “Zune enables users to access the entertainment they want, wherever they want it — and now, more people than ever will be able to enjoy the freedom and flexibility that the Zune service offers.”

Zune software has been upgraded with new features and functionality and will serve as the Windows Phone 7 synchronization client. The new software (version 4.7) will be available to download for free in more than 20 countries, including the U.K., France, Italy, Germany and Spain, to easily manage your personal collection of movies, music, podcasts and pictures. Zune software continues to set the standard for entertainment software, providing best-in-class experiences to organize, discover and enjoy digital media with a variety of exclusive features. For example, the Quickplay menu enables immediate access to recently played content and personal favorites, and Smart DJ 3 automatically creates playlists from your personal music collection and takes the extra step of mixing in suggested music from the Zune Marketplace. The updated Zune software will also enable instant streaming of high-definition movies, allowing you to watch some Zune Marketplace movies in HD, with no download time, directly on a Windows PC.

Zune Marketplace online store is accessible from within the Zune software and offers the ability to purchase millions of individual songs or albums from its catalog, all in MP3 format. Here, consumers can also subscribe to Zune Pass,4 which provides unlimited downloads and music streaming capabilities from the Zune music library, including content from major music labels such as Universal Music Group, Sony Music Entertainment, EMI Music and Warner Music Group, as well as thousands of independent labels. Zune Marketplace also has a large library of videos from major studios such as Paramount Pictures and Warner Bros. Digital Distribution for purchase or rental. Video purchases will be accessible through Xbox LIVE and Windows-based PCs, and can also be added to a Windows Phone 7. Simply buy your favorite video from Zune Marketplace and watch it on the screen of your choice.9

Zune.net is the perfect resource for consumers as it allows them to download the software and set up a Zune account with a new or existing Windows Live ID.5 Zune.net will also provide Web access to Zune Marketplace so you can purchase music or use a Zune Pass to stream music directly through an Internet browser,6 as well as purchase video content.7

Zune Expansion to New Markets

As Zune expands internationally, its music and video service will be tailored for each market. Genre experts will custom program Zune Marketplace and feature the top songs, videos, movies and unique promotions for each country.

The fall 2010 international expansion of the Zune music and video service includes the following:

Zune Marketplace will extend services to several markets in Europe and beyond.

Zune Pass (U.K., France, Italy and Spain). The monthly music subscription service will be available for 9.99 euros /8.99 pounds per month for unlimited download and streaming access to the Zune music catalog and will be accessible on Windows-based PCs, Windows Phone 7 and Xbox LIVE. The offer in the U.S. will remain at $14.99 per month for unlimited downloads and streaming access, with the ability to keep 10 MP3s per month.8
Music purchase (U.K., France, Italy, Spain and Germany). Expansion to these markets will enable consumers to purchase MP3s and listen on their Windows-based PC, Windows Phone 7 or any other device that supports MP3 format. Users will also be able to purchase music videos to enjoy on Windows-based PC, Windows Phone 7 and Zune on Xbox LIVE.
Video purchase (U.K., France, Germany, Canada, Australia and New Zealand). Consumers will now be able to purchase movies to download and watch anywhere — on the big screen in the living room with Xbox LIVE or their Windows-based PC as well as sync it to their Windows Phone 7 to enjoy on the go.9
Movie rental (U.K., France, Italy, Spain, Germany, Austria, Belgium, Ireland, Netherlands, Switzerland, Mexico, Canada, Australia and New Zealand). In addition to Zune video on Xbox LIVE, consumers in these countries will now be able to rent movies for viewing on their Windows-based PC or choose to sync the rental to their Windows Phone 7.

The global expansion of the service is the latest step in a series of milestones for Zune, including powering Bing music search results, the added ability to purchase music and video on Zune.net, and the forthcoming integration with Xbox LIVE and Kinect for Xbox 360. By continuing to integrate Zune across the most important screens to consumers, Zune provides an all-in-one music and video service for users to discover, enjoy and experience their entertainment wherever they want.About Zune

Zune is Microsoft’s music and video entertainment service that provides an integrated digital experience across Zune devices, Windows-based PCs, Xbox LIVE and Windows Phone 7. The Zune platform includes a line of portable digital media players, elegant software, the Zune Marketplace and Zune.net online stores, the Zune Social online music community created to help people discover music, and the ZuneOriginals.net online media player customization store. More information can be found online at http://www.zune.net/en-us/press.

About Microsoft

Founded in 1975, Microsoft (Nasdaq “MSFT”) is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.

1 Zune Pass available in U.K., France, Italy and Spain.

2 Zune Pass on Xbox 360 requires an Xbox LIVE Gold membership and a Zune Pass subscription.

3 Only available with Zune Pass.

4 Zune Pass is a music subscription; some Zune Marketplace songs and content are not available via Zune Pass. Available content may vary over time.

5 For cross-screen functionality, the same Windows Live ID needs to be used on the Zune software, Windows Phone 7 and Xbox LIVE accounts.

6 Internet browser support for Silverlight required.

7 Service features may vary based on market availability.

8 Keep 10 MP3s per month feature available to U.S. Zune Pass subscribers only, on their PC or Windows Phone 7.

9 Content available for download on multiple devices may vary over time. Availability of content and video resolution will vary by device.

On Windows Phone 7 history:

Thoughts on Windows Phone 7 Series (BTW: Photon is Dead)[Feb 17, 2010]

The real Windows Mobile 7, that is, Photon as it once was called, is dead. Windows Mobile 7 was supposed to be an evolution of Windows Mobile 5 and 6. It was supposed to be built on the paradigm that previous generations of Windows Mobile had been created from: a Start-menu centric application experience, two soft keys on bottom, and applications that acted as they would on the desktop (often with a close button). Well Photon was scrapped, probably around 2008 when the Mobile division of Microsoft saw a big reorganization. With that, Microsoft started from scratch to build the next generation of Windows Mobile, or Windows Phone as they began calling it in 2009. Also at that time, they decided to extend the life of Windows Mobile 6 to buy some time, and a year later we saw 6.5. And despite rampant criticism, 6.5 shipped on a lot of really awesome devices like the HTC Touch Pro2 and HD2, Acer neoTouch, and Samsung Omnia II.

Back in 2007, as you may or may not recall, I wrote about Windows Mobile 7 after having seen it at a Microsoft event. If you want to go back and see the text, it’s still available at MobilityToday. I contended that what Microsoft had in store for the next version of Windows Mobile was awesome, and that it could succeed. But I also warned that if they didn’t bring the product to market before the target late 2009 launch, it would fail. It would fail because by that time, two years later, iOS, Android, and other mobile platforms would be wildly evolved, and that Photon would seem like more of the same, instead of a breakthrough new operating system that the market would so desire.

I also saw Photon two years prior to 2007. Back then, it was pretty much the same as we know Photon to be today. It’s very possible that work began on Photon as early as 2004, which begs the question: how could a company with such vast resources and fantastic human talent take nearly half a decade to roll out a product? The answer could come down to mismanagement or lack of investment. My guess is that Microsoft didn’t truly understand how big the mobile category would grow, and how fast it would happen.

Behind the scenes: Windows Phone 7 [June 17, 2010]

… The launch of the new phones is critical for Microsoft, which is trying to play catch-up with Apple and Google. Despite having been in the phone business far longer than either of those two rivals, complacency, lack of focus, and bad bets have left Microsoft an afterthought in the cell phone business. It now has just a single-digit percentage market share among smartphone operating systems, trailing Symbian, RIM’s BlackBerry, Apple’s iPhone, and Google’s Android, according to Gartner. Windows Phone 7 is the big bet to reverse years of decline, assuming it’s not too late.

Leading that effort is vice president Terry Myerson, the 37-year-old former head of the Exchange Server development team. Myerson is the rare Microsoft exec who knows what it’s like to be an underdog. He came to Microsoft in 1997 through the acquisition of his own Web analysis company [Interse’ see Terry Myerson [Duke Pratt School of Engineering, Oct 16, 1998]] and went to work on Exchange back when it was badly behind IBM’s Lotus Notes software.

… Myerson, who agreed to take on this job in October 2008, has picked up the pieces on a next-generation mobile operating system that Microsoft has been developing in fits and starts for several years now, switching leadership and approaches several times along the way.

Despite its long and winding road to fruition, Windows Phone 7 has a chance, Myerson says with a quiet conviction that sounds more like an engineer sure of his work than a salesman looking to close the deal. Myerson is convinced that Microsoft can get back in the game if Windows Phone 7 really nails the set of things that it does tackle–merging personal and work contacts, integrating Xbox Live games and Zune music and video, including mobile versions of Office and aiming to bring together photos from various social networks.

What they’ve already done hasn’t been easy. Although it retains Windows CE at its core, Windows Phone 7 has a completely new look and interface. The overhaul was so significant, that when it was first outlined in early 2009, the project’s leaders handed out a bottle of Pepto Bismol to the several hundred people on the development team. “The entire user experience of Windows Phone 6 was built on a certain graphics framework,” Myerson said. “We decided to change that to a different one. We sort of decided that top down and teams just had to digest that, so it was sort of a joke that people were given that.”

“I think we are going to have something very high-quality and different this holiday,” Myerson said. “We won’t be better on every dimension and we won’t be better on a feature point on all of the dimensions we wish we could… I think about this really as a first release, a first release for this team.”

A blunt assessment

Catching up with the market leaders, Myerson figures, is a multiyear project, something he warned both executives and colleagues when he took over the project. “We’re going to reset, but it is going to take us five years to build a product we all want to have,” he said.

Myerson’s less-than-rosy assessment scared off more than a few people. “There were people that looked in the mirror a year ago and said, well, if we aren’t going to win next year, I am out of here,” he said. “There were people that looked in the mirror and said what a great fun project to spend the next three to five years of my life on and kind of buckled down for it…Those are the people you want because that’s how long it is really going to take. The company has that level of commitment.”

If anything, Myerson hopes that is what he is bringing to the team–clarity, along with enough resources to get the job done.

“If you invest in people as craftsman and give them great tools, I think they will build great products.” Myerson said. “Probably the most important thing we can give these guys is a clear plan. If the plan changes every three months, it’s hard to do great engineering.”

With that in mind, the company decided more than a year ago to start over yet again, with a new approach and a firm target–holiday 2010–to have the all-new Windows Phone on the market. “I think when we look back on the release five years from now, this was a foundational release, not the release that broke through,” Myerson said. “We’ve got some tough competition.”

In particular, Microsoft will need to make a good impression with carriers–the companies like AT&T, Verizon, Sprint and T-Mobile–who decide which phones will get the prime shelf space and the big ad campaign, and which will not make the cut at all.

“They take all the burden of support calls and all the burden of selling it,” he said. Given that “they want it months ahead of time so they can learn how to sell, learn how to support it.”

Having to coordinate among chipmakers and Microsoft and hardware makers and carriers is a lot of work, Myerson acknowledges. It requires a lot more companies working together than is the case with Apple, which now even designs the iPhone’s main processor.

“The OEM partnership model we have is more complicated,” Myerson said. “We aspire to have the same level of end-user finish as Apple, but getting that level of user finish requires a level of partnership.”

The idea of partnering with phone makers like Samsung and HTC is to get the benefit of their ideas as well as have more models than Microsoft could if it built the hardware itself. But add that to a business model that also includes 180 different carriers across the country as well as other components and it’s a lot to juggle.

“Between Qualcomm and Broadcom and Samsung and LG and HTC, AT&T and T-Mobile, it’s just very partnership-complex, it just is,” Myerson said. “I don’t know any other way to describe it.”

Microsoft has considered but rejected the idea that it should go it alone in the phone business, building its own hardware to better take on Apple. Among other reasons, it’s just how the company prefers to do business. Although it makes the Xbox and Zune, the company prefers to build software that is used a wide range of hardware makers.

“We’ve made it work many times in the past and as you know, there’s times in the past where it hasn’t worked out so well,” Myerson said. “We’re aspiring to do it well, which unfortunately does take more time.”

But time is running out for Microsoft, which needs to get the first devices to carriers soon if it wants the devices to be on sale by the holidays. Hence, the conference rooms inside Microsoft this day are filled, not just with folks from Microsoft, but also from its many partners.

As the work day draws to a close, the hours-long meeting between Qualcomm and Microsoft engineers beaks up. Myerson meets in his office with Torrey Harmon, a Qualcomm senior vice president. The conversation is informal–a mix of some subtle salesmanship and small talk and venting about some of the project’s more challenging aspects and people.

Between trading jabs at various partners and competitors, the two turn their attention to their own companies’ partnership, discussing how they might further reduce the amount of friction between the teams working on the chips at Qualcomm and those working on the software at Microsoft.

“We want you to see us as an extension of your team and we’re trying hard to figure out how to do that,” Harmon said. Qualcomm recently hired one of the members of the Windows 95/98 development team to help the company in that effort. “We’ve made a lot of progress and still we’ve got a ways to go. We’d like just to look like another one of your technology groups, that’s our goal.

As the conversation continued, they talked about the battery life issues on a particular prototype. “Usually it runs out by about 2 o’clock,” Harmon said, although, that’s better than before a recent software build. “It was running out at about 11 o’clock when I first got it. It’s better already than it was.”

As it often does, Myerson’s mood this day shifted quickly between optimism and pessimism. “I just want to survive this launch,” Myerson told Harmon. “If I can get out there and get some respect, for lack of a better word, from consumers, everything will get easier. Right now things are hard.”

Windows Phone 7: A Fresh Start for the Smartphone[Microsoft feature story for the press, Oct 11, 2010]

The goal for Microsoft’s latest smartphone is an ambitious one: to deliver a phone that truly integrates the things people really want to do, puts those things right in front of them, and either lets them get finished quickly or immerses them in the experience they were seeking.

“When you first get the phone, the stuff that’s more obvious makes you smile,” says Andy Lees, Microsoft’s Mobile Communications Business president. On the phone’s Start screen, “live tiles” show users real-time content, such as social media updates and contacts. “The features sort of scream out at you,” says Lees. “But the other thing that is even deeper for me is the elegance of the experience, which you only appreciate if you’ve used the phone for some time.”

Learn more about Windows Phone 7 The result is Windows Phone 7, which will make its debut in some European markets on Oct. 21 and in the U.S. Nov. 8. The phone uses an elegant operating system that is very different from the current trend toward app-focused phones. Instead it provides active and configurable interface elements called tiles that update on the fly with real information, allowing users to place the tiles that interest them most where they want on their Start screen. Facebook photos, music and contacts are pulled into the phone and distributed appropriately across Hubs. It also brings together many of Microsoft’s popular offerings from other platforms, including Xbox, Zune, Office and Bing.

The new phone is an important step for Microsoft in three ways. To begin, it is a completely fresh start for Microsoft in smartphones. Second, it represents a new approach from Microsoft toward integrating products and services from across the company into the phone to create a richer experience and greater productivity. Hence the presence of Office, Zune and Xbox LIVE and their integration within the Hub model. And finally, the new phone approach is critical to Microsoft’s efforts to make new gains in the huge smartphone market, which despite the success of the iPhone and Android is still relatively untapped globally.

As people use their phones, they’ll discover lots of thoughtfully designed features and perks. Holding down the camera shutter button, for example, lets the user take a picture even if the phone is locked – as Lees says, “unlocking your phone can sometimes mean the difference between missing the moment or not.”

The phone’s interface features Hubs for categories such as People, Music and video, Photos, Games and Office. These Hubs are never more than a few screens away, no matter how deep the user navigates within the phone. The People Hub, for example, pulls in Facebook status updates from friends as well as providing the more obvious contact information and phone numbers. Users can take actions like responding to updates or sending a text message right from the People Hub rather than having to find and launch a particular app. The Hubs also update live, pulling in pictures and information so that in many cases a glance and a couple of clicks will be all that users need to bring themselves up to date with phone messages, e-mail and what is happening with friends and colleagues.

“We think people want to get updates from their social networks, they want to get contact information, they want to get e-mails from a variety of different places, they want to share music — but they want control over it,” says Lees.

Plus, says Lees, “They want one thing that they can access their work e-mail on and then put in their bag and go to the party, and they want it to be easy to use. That’s exactly what we’re delivering.”

Applications will be available for the phone as well via a Hub called the Marketplace. But, unlike other smartphones, they won’t be required for the majority of everyday tasks.

Smartphones are increasingly a part of our lives. It is incredibly seductive to be constantly connected, to be able to communicate with and interact with friends and associates at any time. Or to be able to dive into the sea of information on the Internet at any time. But the current smartphone designs aren’t helping. People either take too long to find what they need on their phones or they get distracted and drawn in to unproductive activities simply because they have to click in and open apps to see things.

To highlight the problem, the company is launching a provocative advertising and marketing campaign, showing how Microsoft’s new phone is different. The new Windows Phone 7 is designed to help users connect with the people and information they care about most, then let them return to the real world as fast as possible.

Terry Myerson, corporate vice president of Windows Phone engineering at Microsoft, led the development group for the new phone. “We had this list of things we knew we wantede-mail, a browser, games, a music player,” says Myerson. The team knew that they wanted the phone to be versatile and deliver exactly what the customer wanted out of a phone. But its greatest asset is something less tangible than a single feature or access to a program. “Using this phone is truly a delightful experience,” says Myerson.

Creating this ease of use was one of the design team’s primary goals. “We talked a lot about smart design when we talked about this phone,” says Joe Belfiore, corporate vice president of Windows Phone program management. Belfiore joined the project shortly after Myerson and oversaw, among other things, user experience. “We wanted this phone to be able to anticipate what you want and give it to you before you ask for it.”

New phones in a variety of hardware designs will be available from Samsung, HTC, LG and Dell.

Microsoft is so committed to the new phone that it has arranged for every full-time employee worldwide to be able to switch to the new phone as soon as it launches in their market. And while executives say they are thrilled with the final product, they also acknowledge there is a lot more to be done. When the phone is released, they plan to enjoy the moment – but not for long. “There’s so much more of Microsoft we’ve got to bring out in the phone,” says Myerson. “We’ve got a lot of work to do.”

Exclusive: AT&T’s Ralph De La Vega on Which Smartphones Are Winning [June 4, 2011 — Excerpt 2]

Nokia has made this huge bet on Windows Phone. One of the reasons, they have said, is to have a bigger presence then they have had in many years in North America. How interested are you in adding them to your lineup?

De la Vega: We already have Windows Phone 7 in our lineup. We actually like that software very, very much. It hasn’t sold as well as Microsoft or we would want it to, but I think having the Nokia hardware capability with the Microsoft software capability is a really good combination. They have to prove it by bringing some great devices to market. But I would love to have a great Nokia device with Microsoft Windows Phone 7.

Windows Phone 7, is it a hard sell, or are their features that are missing?

De la Vega: Keep in mind this is the first product that Microsoft has come out with since Microsoft redid their OS. I think for the first thing out of the chute it is pretty good. I think they just need to make it better. If you listen to what Steve Ballmer is saying (Mango, the next version), is going to add about 500 features. I think they are going to make it a lot better. Giving customers more application choices, having a bigger app store with more functionality on the phone, I think that is all that it needs.

Actually, I loved Windows 8. That looks a lot like a Windows Phone screen, with the tiles. I think that’s a huge win for Microsoft. Now they have their same look and feel on their PCs and tablets as they have on their smartphones.

Building the Next Great Mobile Software Developer Opportunity [by Terry Myerson, Feb 14, 2011]

On Friday Feb 11th our two companies announceda partnership that we believe will shake up the mobile phone market. Together Nokia and Microsoft are bringing to bear significant and complementary strengths in global smartphone and mobile phone market reach, hardware, software and services. Based on these strengths, we will build a new, global ecosystem that creates a wealth of new opportunities and innovative experiences.

However, we can’t do it alone. We need you: our developers. Over the years, you, our developer communities, have created great experiences for your customers. You’ve also given us feedback that you want new opportunities, accelerated innovation, and access to more consumers. We are going to realize this future based on a shared set of principles about what developers want and deserve:

  • Opportunity: a large number of customers with unparalleled global reach
  • Feedback: so that you can improve your applications and games
  • Ovi Store and Windows Phone Marketplace: a great shopping experience, where your creativity can be discovered
  • Flexibility: in how you are compensated for your work– in dollars or notoriety
  • Amazing tools: to take creativity from idea to sale
  • Structure: a prescriptive roadmap that balances opportunity and diversity while maintaining the stability of the platform
  • Innovation: combining services assets to drive innovation including putting Nokia’s Ovi Maps at the heart of key Microsoft assets like Bing and AdCenter

We appreciate that applications and games are many peoples’ livelihoods, and that developers deserve respect and transparency. We further understand that choosing a mobile platform is a serious commitment of time and energy that we must earn. This new conversation is just starting and we would like it to be an open and continuing dialogue.

To that end, we want to make clear that our alliance represents a long-term commitment to developers. Nokia developers working with Qt or Java will continue to do so and enjoy healthy demand for those. Nokia has an installed base of 225 million Symbian devices, and plans to sell 150 million more, and Series 40 has an addressable market of 600 million devices today. Nokia continue to enhance and innovate on those platforms and in Qt tools. Nokia, and now Microsoft, are committed to making sure that your contributions to and investments in the Nokia ecosystem will be worthwhile. In the coming weeks we will provide more information about programs that will help you access the Symbian and Qt opportunities more effectively.

Nokia’s Windows Phone portfolio will support the existing, free Windows Phone Developer Tools. Nokia and Microsoft will support Symbian developers wishing to port their application to Windows Phone. Both Nokia and Microsoft manage rich application and game commerce platforms in Ovi Store and the Windows Phone Marketplace. We believe that both platforms bring distinct strengths to the alliance, and we are planning to combine these strengths into a single great commerce experience for developers and consumers alike.

We still have much work to do and we will provide you, our developers, with more details in the weeks and months to come. We will ensure that developers can count on timely and prescriptive guidance on the implications and opportunities of this new alliance. For now, we hope that you are as excited about the long-term potential of this alliance as we are, and that you are already thinking of new application and games that you’ll bring to market to take advantage of the significant volumes of Nokia Windows Phones, as well as the existing and future Symbian and Series 40 devices from Nokia.

If you’re interested in learning more about developing for Windows Phone, please visit http://create.msdn.com. For the latest guidance to Nokia developers, visit http://forum.nokia.com. Sincerely Tero Ojanpera, Executive Vice President, Services, Nokia Terry Myerson, Corporate Vice President, Windows Phone Engineering, Microsoft

Reindeer Antlers and Reykjavik: How Microsoft and Nokia Are Getting Down to Business Together[July 11, 2011]

“We’ve spent the last couple months working really closely together to get first products really materializing,” Nokia’s Jo Harlow, who is in charge of Smart Devices at the phone giant, said in an interview. “We all feel confident about where we are.”

… Nokia CEO Stephen Elop has been boasting for a while that he is carrying something along those lines, and a recently leaked video shows him with an early version of the hardware.

Harlow declined to comment on that leak, but says she is increasingly confident in the first product that will arrive this year, and that the company may yet have multiple devices for sale before the end of the year. The first Nokia phones are expected to arrive this fall alongside Mango, the first major update to Windows Phone 7.

“I’m committed to one model this year,” Harlow said. “More would be great.” For next year, though, Harlow said there will be a steady stream of releases — something that Microsoft badly needs as it tries to keep up with rivals, particularly Android devices, which are released on a constant basis.

If Microsoft was close to the latest hardware when it released the first Windows Phones last fall, it is fair to say that its models now look dated when stacked up against the latest Android models, some of which boast 3-D screens, dual-core processors, high-definition video recording and other features. “I’m hoping that won’t be an issue next year,” Myerson said. Harlow said her goal is that Nokia will have more frequent hardware updates, keeping the company, and by extension Windows Phone, front of mind with phone shoppers.

… For its part, Microsoft said it has shifted its priorities to make sure that Nokia’s needs are being met first. The company has increased its focus on going global more quickly, as Nokia counts on Windows Phone to quickly fill a gap created by the rapid decline in its existing Symbian phone business. “We had been focused on North America and Western Europe,” Myerson said of the company’s early efforts. That, he said, has now changed.

Although Microsoft is also working with its other partners, Myerson isn’t shy about saying that he is pouring more energy into his partners in Finland. After all, while HTC and Samsung build Windows Phones, they also make phones running Google’s Android software. Nokia, meanwhile, has pledged to make Windows Phone the core of its smartphone strategy. “We are prioritizing work proportionate to Nokia’s commitment to Windows Phone, which is unlike anything we have had before,” Myerson said.

On Andy/Andrew Lees’ promotions:

Microsoft Announces New, Expanded Roles for Key Executives[Feb 14, 2008]

Microsoft Corp. today announced a series of executive promotions — seven new senior vice presidents and seven new corporate vice presidents — reflective of the company’s commitment to build and maintain a strong and dynamic management team across its unique portfolio of businesses.

… “Along with attracting world-class talent from outside the company, one of my top priorities is growing Microsoft’s existing leadership team,” said Steve Ballmer, chief executive officer of Microsoft. “Each of these executives will play a critical role in leading Microsoft into the future. Today’s promotions are a result of their ability to think strategically on a global scale, the respect they’ve earned from their peers, customers and partners, and their significant contributions to the company.”

Andy Lees, senior vice president, Mobile Communications Business. Previously corporate vice president of the Server & Tools Marketing and Solutions Group, Lees will oversee the development, marketing and sales of software and services that power mobile devices for business and consumer customers worldwide. Lees will fill the role previously held by Pieter Knook, who made the decision to leave Microsoft to pursue new opportunities.

Steve Guggenheimer, corporate vice president, Original Equipment Manufacturer Division. Previously general manager, Application Platform Marketing, Guggenheimer will move to a new role leading the group that manages Microsoft’s relationships with the makers of personal computers and other devices.

Scott Guthrie, corporate vice president, .NET Developer Platform. Previously general manager, Guthrie will continue to oversee several development teams responsible for delivering Microsoft Visual Studio developer tools and Microsoft .NET Framework technologies for building client and Web applications.

Microsoft Announces Retirement and Transition Plan for Robbie Bach [May 25, 2010]

Underscoring the strength of the leadership teams in place for the entertainment and mobile businesses, the company announced that Senior Vice President Don Mattrick will continue to lead the Interactive Entertainment Business and Senior Vice President Andy Lees will continue to lead the Mobile Communications Business. Each will report directly to CEO Steve Ballmer effective July 1.

… Bach will remain with Microsoft through the fall, working with Ballmer and his leadership team to ensure a smooth transition. …

… Lees has led the Mobile Communications Business since February 2008 and has been instrumental in reinvigorating Microsoft’s mobility efforts, bringing in new business and development talent and overseeing the creation of both KIN and Windows Phone 7. A 20-year Microsoft veteran, he previously served as corporate vice president for Server & Tools marketing and sales, led a variety of worldwide sales and marketing functions, and began his career in Microsoft’s U.K. subsidiary. “One measure of a leader is the team he assembles around him, and Robbie built an incredible team.

Don and Andy are exactly the right leaders to carry our entertainment and mobility efforts forward,” Ballmer said.

Microsoft also announced that J Allard, senior vice president of Design and Development for E&D, will be leaving Microsoft after 19 years, and will take an official role as an advisor in a strategic role for Ballmer and his leadership team. “J has brought a game-changing creative magic to Microsoft for years, from Windows to Xbox, from Zune to KIN,” Ballmer said. “He was one of the key drivers in our early work on the Web, and we’re absolutely delighted that J’s role with the company will evolve in a way that lets all of Microsoft benefit from his business insight, technical depth and keen eye for consumer experience.”

Microsoft Announces New Leadership Promotions[Oct 1, 2010]

Microsoft Corp. today promoted Kurt DelBene to president of the Microsoft Office Division, Andy Lees to president of the Mobile Communications Business, and Don Mattrick to president of the Interactive Entertainment Business. … As President of the Mobile Communications Business, Lees, 45, will continue to oversee the overall marketing and product development for Microsoft’s mobility efforts. Lees, a 20-year Microsoft veteran, has led the Mobile Communications Business since February 2008 and was at the center of the company’s efforts to rebuild the mobile business, including the development of the upcoming Windows Phone 7 to be released this holiday season. Windows Phone 7 is designed to make every-day tasks faster by doing more in fewer steps and providing timely information in a “glance and go” format.

Microsoft Mobile Communications Business is now the Windows Phone Division[June 16, 2011]

Microsoft’s Mobile Communications Business (MCB) is no more. The group itself still exists, but is known officially, as of this week, as the “Windows Phone Division.” I noticed the change on the bio page for the division President Andy Lees. (Until yesterday, Lees was listed as President of MCB. He’s now President of the Windows Phone Division.) A Microsoft spokesperson said that only the name of the unit has changed and that there’s no change in the unit’s responsibilities or charter.

Say it ain’t so — not only is a phone not delayed, it’s actually planning to come out earlier than its quoted launch window? This particular miracle is the exception much more than the rule, but Microsoft’s latest Windows Phone OS (nicknamed “Mango,”) might come out prior to the anticipated fall release. According to Nikkei, Fujitsu will offer the very first Mango device, a waterproof phone called the IS12T, on KDDI “as early as late next month.” The phone is to be sold for 30,000 – 40,000 yen ($378 – 505), a reasonable amount of coin for what will likely be a higher-end device. And — if it’s the same handset showcased at this week’s Worldwide Partner Conference — a pink version will be on sale. So, what’s more enticing: a Hello Kitty-flavored Windows Phone, or a Samsung Galaxy S II lookalike running Mango? It’s a tough call.

Nokia N9 UX [?Swipe?] on MeeGo 1.2 Harmattan

Update as of August 10, 2012: After acquiring the Qt commercial licensing business in March 2011 from Nokia, the Helsinki based, ~1000 people strong Digia, with 2011 sales of 121.9 million Euro,yesterday acquired all the rest of the Qt business from Nokia. More details in the Digia extends Its commitment to Qt with plans to acquire full Qt software technology and business From Nokia [Digia’s Qt Commercial Blog, Aug 9, 2012] and Digia Committed to Thriving Qt Ecosystem [KDE.NEWS, Aug 9, 2012] posts from Digia’s R&D director Tuuka Turunen. With this all pre-Windows Phone software platform commitments except the Java based S40 (evolved in the new Asha range) have strategicallybeen revoked by Nokia.

Nokia N9 Journey [Oct 24, 2011]:
A story about the making of the most beautifully simple smartphone.

Follow-up:
Designing smarter phones–Marko Ahtisaari (Nokia) and Albert Shum (Microsoft) [Nov 23, 2011]

Updates:
3 Minutes with Nokia CEO Stephen Elop [YouTube, Oct 27, 2011]

[About N9 and Qt:] Elements of N9. The things that really define that product you will see continue on. The reason we continue with N9 is because we believe we could learn a lot about certain things that actually make the N9 unique in the way that it is. … What remains unanswered, and will remain unanswered for today, is when I say ‘elements of the user experience’ or ‘the Qt environment’. What does that mean? That’s still something you’ll see ahead from Nokia.

Goodbye MeeGo, Hello Tizen [Sept 28, 2011]

By now, you may have read that The Linux Foundation, with the support of several other companies, announced a new project, Tizen [tizen.org], to build a new operating system for devices. This new project is first and foremost open source, and based on Linux. So it begs the question: why not just evolve MeeGo? We believe the future belongs to HTML5-based applications, outside of a relatively small percentage of apps, and we are firmly convinced that our investment needs to shift toward HTML5. Shifting to HTML5 doesn’t just mean slapping a web runtime on an existing Linux, even one aimed at mobile, as MeeGo has been. Emphasizing HTML5 means that APIs not visible to HTML5 programmers need not be as rigid, and can evolve with platform technology and can vary by market segment.

More info [meego.com]

there is not mentions of Qt in the article 😦

Limo Foundation And Linux Foundation Announce New Open Source Software Platform [Limo Foundation press release, Sept 28, 2011]

 LiMo Foundation™ and the Linux Foundation today announced a new open source project, Tizen™, to develop a Linux-based device software platform. Hosted at the Linux Foundation, Tizen is a standards-based, cross-architecture software platform which supports multiple device categories including smartphones, tablets, smart TVs, netbooks and in-vehicle infotainment systems. The initial release of Tizen is targeted for Q1 2012, enabling first devices to come to market in mid-2012.

Tizen combines the best open source technologies from LiMo and the Linux Foundation and adds a robust and flexible standards-based HTML5 and WAC web development environment within which device-independent applications can be produced efficiently for unconstrained cross-platform deployment. This approach leverages the robustness and flexibility of HTML5 which is rapidly emerging as a preferred application environment for mobile applications and the broad carrier support of the Wholesale Applications Community (WAC). Tizen additionally carries a state-of-the-art reference user interface enabling the creation of highly attractive and innovative user experience that can be further customized by operators and manufacturers.

About LiMo Foundation
LiMo Foundation™ is a dedicated consortium of mobile industry leaders working together within an open and transparent governance model—with shared leadership and shared decision making—to deliver an open and globally consistent handset software platform based upon mobile Linux for use by the whole mobile industry. The Board of LiMo Foundation comprises ACCESS, Panasonic Mobile Communications, NEC CASIO Mobile Communications, NTT DOCOMO, Samsung, SK Telecom, Telefónica and Vodafone. A full description of LiMo Foundation can be found at www.limofoundation.org.

LiMo & Tizen FAQs

How does Tizen relate to MeeGo and LiMo?
Tizen builds upon best practices and technologies from MeeGo and LiMo to deliver a complete cross-device open source software platform and will result in broader, stronger ecosystem support from leading service providers and OEMs. Intel will be working with partners to help them transistion from MeeGo to Tizen. In order to enable successful transition, sustainng engineering support will continue for MeeGo v1.1 and v1.2 releases into 2012. Intel will fold its ongoing MeeGo development efforts into the new Tizen project.

What are the key differences between MeeGo, LiMo and Tizen?
The key differences are Tizen’s comprehensive, standards-based HTML5 application solution, broader industry support and a hardened mobile device stack.

Nordic System Integrators Welcome Open Source Initiative Tizen [Sept 28, 2011]

According to Pasi Nieminen, CEO of Nomovok, the leading MeeGo integrator, “For the past two years Nomovok has been working on Steelrat, a commercially optimised version of MeeGo, and today we are pleased to join with this industry-lead project to help make Tizen a commercial reality.”

Notes taken on Qt Dev Days 2011 in Munich [Oct 24-26, 2011]

Nomovok has a stand there. I discussed with the guy and he confirmed that they are providing the integration of Qt into Tizen. They see Tizen as MeeGo + the HTML5 additional overlay, and clearly not as MeeGo minus Qt. To them,
there is no reason why things we were able to do with MeeGo should not be feasable with Tizen. They meet every second week with Intel to work about the integration of Qt into Tizen. Looks damn promising!

Talk by Marco Argenti (SVP Developer Experience, Nokia) about “Qt and the broader strategy”.
– 100 millions Qt-enabled smartphones on the market.
– Strong emphasis on N9 being the best ever device for developers.

– Big opportunities for developing apps for the “next billion”
– ex[ample]: India: 800 millions mobile suscribers => those users will mainly experience the web through apps => Qt is core to achieve this!

“Qt Roadmap, Open Governance and Qt5”, by Lars Knoll, Qt Chief Architect:
– Nokia definitely is backing up Qt! That has been said and hammered extensively during this talk.
– Nokia has a growing interest in Qt, increasing its investment into it. Plus, there are job openings.
– Transition from Qt4 to Qt5: will not be as painfull as the transition from Qt3 to Qt4, as most of the stuff is implemented all right. Basically a matter of running a script for adapting header files and minor tweaks to the build system.
– Qt5 to be split into “Essentials” and “Add-on odules” (including widgets, Qt Webkit, part of Qt Mobility,…
– Qt Quick 2 built and optimized for OpenGL, with dramatic performance improvements
– Qt5 timeline:
>> Feature freeze by early 2012
>> Beta by March/April 2012
>>  Done by 1st half of 2012
– Qt Widgets supported in Qt5 (but to some extent, development on widgets is shifting towards community efforts, through Qt-Project)
– After Qt5: plan is to release twice a year, at fixed time periods (more predictable)
– In response to a question about Symbian and MeeGo:
>> Symbian STAYS on Qt 4.8 = Symbian NOT supported on Qt5!
>> MeeGo: tests done, works well so far, so shouldn’t be a problem. (He would not tell more than this)
– Development opportunities:
>> Desktop: yes, clearly in the focus
>> Mobile: You will see something coming… This is all Nokia is ready to say now! (Seems clearly to indicate some big announcement by tomorrow at the Nokia World event!!)

[Later the same person:] Apparently nothing as of yet. The Nokia World has been sharply focused of the Lumia (WP7) and Asha (S40) launches.

Session about developing with MeeGo on N9, by Yoann Lopes. Quote: “N9 is awesome, but it misses one thing: you, your apps”. 75 minutes is a too short time to go very deep, but the guy basically showed the whole process, step by step, and some of the possibilities (demoed: applications “MeeSpot”, “Trafikanten”). A few security-related questions were raised (about preventing an app sending over-priced SMS’s), which didn’t lead anywhere, by lack of enough informations about the topic. Again, question asked about the incentive for developing for a “dead platform”: “Can’t say anything about this, but if you develop for MeeGo now, you definitely will be able to reuse your skills.” (not quoting exactly, just what I remember from it). He mentioned also again “next billion”…

Tizen Summit Asia 2011 coming! [Oct 27, 2011]

Nomovok organizes Tizen Summit Asia 2011 at Beijing Marriott Hotel City Wall 8-9 December. The event gathers together Open Source Vendors, OEMs, operators and other Tizen project contributors, together with local Open Source contributors in China. Check the event website and register here!

Dear Intel & Samsung, Can Tizen have some Qt ? [Oct 24, 2011]

So Qt Developer Days is kicking off in Munich today and I feel sad. As if something is not right. Something is missing. Tizen has recently began its Qt-less journey and this does not seem like a sensible move to me. Many would argue that Qt is supported in the Netbook version and yes it is for now, but there are no guarantees that it will survive for the future.

Is alienating a whole group of Developers that bought into the MeeGo dream the best way forward? These are Developers that have invested time, money and effort into the integration of MeeGo and Qt and now are floating away to develop for Android / Symbian and possibly iPhone. Surely having YOUR developers developing for the already established competition a bad thing ?

Is banking everything on HTML5/JS/CSS3 the best way forward ? I think Not. Could we not have HTML5 + Qt Support in Tizen ? Already Nomovok have announced that they will provide Tizen with integrated Qt, but for this to work we need it to be adopted by the project as a whole. If we lose Qt then we Lose a lot of Developers that believe in it and NOT in HTML5 and have not bought into being able to make the move to HTML5. For the wholesale of applications HTML5 seems like the one, but for more specialist applications Qt is a Development Framework that a lot of development companies prefer and that is a fact that you can’t get away from.

Tizen launched with it trying to appeal to the same target audience as MeeGo, Everyone, So shouldn’t we also try to appeal to as many developers as we can ?

With Tizen we also now get Samsung which has been the silent giant in all of this and that makes us all nervous. Very nervous. No press releases, Nothing actually stating what Samsungs vision / Intentions are for Tizen. Samsungs existing Linux Platform uses EFL (http://www.enlightenment.org) and Tizen will also use this. Is there an issue with trying to support both EFL and Qt / QML on Tizen? Surely it can be overcome.

When Nokia Dropped MeeGo on Feb 11 it caused major rifts between them and several companies including intel but now with the recent move of Qt being an Open Source Project with Open Governance can we not overcome issues of the past ?

There are many that are fighting the Qt cause in Tizen. I wish them good luck and hope Tizen has a Qt future.

….

sleeve says: October 26, 2011 at 10:33 pm

@uncle steve: now intel says no to qt?

no, samsung says no to qt as it is open source LGPL and any improvement or deployment would help Nokia tiny 1% – Samsung afraids. Samsung is happy with its vaporware BSD-licensed englightement without even one stable release in 11 years because the license allows to close any single bit if needed. If enlightenment fails samsung will use the backup tech aka HTML5 as already plans and no qt at all. Again, because in their flawed perception that would give nokia a point. All in samsung’s SLP/Limo – 4 bloody years without even single flawed release. The korean giant is strong in pushing hardware that’s all about it. Otherwise bada would be such a success for them.

Yeah Intel apparently HAPPILY supports qt on its part of tizen on its hardware and in AppUp stores. Intel wants apps SO qt will give what enlightenement wont.

Marko Ahtisaari’s speech about ‘Patterns of Human Interaction’ at Copenhagen Design Week [Sept 8, 2011] EXCELLENT!

– Very detailed summary of the above presentation: Video Marko Ahtisaari On N9 – I know We Have Out Simplified The iPhone [Sept 9, 2011] EXCELLENT!
– N9 is becoming available on Sept 30 for ~ US$700 list price
as per Предварительный заказ на Nokia N9 [excerpted on Aug 17, 2011]
See also the PDF copy (in case when the page is not available anymore):
N9 with Swipe in Kazakhstan — 17-Aug-2011
(99.999 Kazakhstani Tenge is US$683 as of today’s exchange rate. Samsung Galaxy R is advertised for the same price, note that Galaxy R is currently available in Sweden for US$634)

Nokia Styles Comeback Plan [Aug 30, 2011]

With the release of its first Windows-based smartphone coming soon, Nokia Corp. is making a big bet: that the innovative design of its new phone will help it stand out and draw attention away from software problems the company has faced as it struggles to compete in the lucrative market.

Anyone interested in the look and feel of Nokia’s future handset design should examine the N9 launched in June—the first smartphone to replace the traditional home button with a swipe of the hand. It is made from a colorful polycarbonate material and although it appears rectangular, it has a curved glass screen.

The N9 features the MeeGo operating system, in which Nokia has already lost interest. But Marko Ahtisaari, Nokia’s head designer, says the design is an indication of where the company is headed. “We will drive this trend toward reduction and more natural forms. Compare that to the black, grey and metallic rounded-corner rectangles you are seeing in the market,” Mr. Ahtisaari says during an interview.

Mr. Ahtisaari says today’s touch-screen phones are inappropriately immersive, and that he would like to design in a way that allows users to keep their heads up again.

“When you look around at a restaurant in Helsinki, you’ll see couples having their heads down instead of having eye contact and being aware of the environment they’re in,” he says.

Designing for true mobility…makes it easier for people to have more eye contact and be aware of their environment, and is an example of what people would not explicitly ask for but love when they get it,” Mr. Ahtisaari says.

For Mr. Ahtisaari and his design team, which numbers several hundred people in Finland, China, the U.K. and the U.S., innovation is about designing better and more natural ways to use a phone through careful observation of users and their environments. Mr. Ahtisaari adds that frequent prototypes, from paper sketches to 3-D wax models to real phones, are crucial to achieve the simplicity and precision needed.

Nokia’s hardware success stems from distinguishing features that often depend on the types of materials used in handsets. Polycarbonate with inherent color is key to the company’s current designs. “The inherent color in the polycarbonate allows us to do color in an interesting way, and that will continue to be important as a simple symbol of choice,” Mr. Ahtisaari says.

Customers can expect more touch-screen phones with physical keyboards, such as the E6 and C3 handsets. “It’s a very rich area for Nokia to innovate in years to come, as many people still want keyboards,” Mr. Ahtisaari says.

He also plans to add value by “linking the phone experience to maps and information about where you are, mapping the world in a way that we have not even imagined possible.”

End of Updates

The Nokia N9: a unique all-screen smartphone [June 21, 2011]

Nokia today announced the Nokia N9, built for people who appreciate a stunning blend of design and the latest smartphone technology.

The Nokia N9 introduces an innovative new design where the home key is replaced by a simple gesture: a swipe. Whenever you’re in an application, swiping from the edge of the display takes you home.

The three home views of the user interface are designed to give fast access to the most important things people do with a phone: using apps, staying up to date with notifications and social networks, and switching between activities.

So, going to Windows Phone 7 or not it has happened as communicated back in last December:
Nokia to enter design pattern competition for 2011 smartphones with MeeGo [Dec 9, 2010]


Note: Version 1.2 of MeeGo OS is scheduled for April 2011 but the smartphone product won’t happen, either on Intel or ARM until around June 2011. See my post on Intel Oak Trail to beat ARM with MeeGo specific prices [Nov 25]

This is all according to its SVP Design and User Experience, Marko Ahtisaari [the indicated timing is for the video record of his plenary speech at LeWeb 2010 on Dec 8, also linked later on]:

1. [2:25] Elegant, simple, extremely blown out – the iOS design pattern. Essentially a screen or screens full of apps and a physical homekey like the mouse key. You click it, you take your hand off the screen to do something on the screen, then may leave to go home. Beautifully elegant, extremely simple to learn with a few steps. And think of a forefront of a house where if you want to go from the kitchen to the dining room you know how you go to the front door. And if after dinner you want to go to the living room you again know how to do that, you go to the front door. Of course the physical button is this mouse click has been loaded with more and more functionality, but essentially a beatifully elegant system that is fantastically constrained. [3:18]. 2. Multiple personizable homescreens where the bet is that the process of personalizing (filling out these home screens) is so simple and organic that it just happens over time and you end up using the device by these home screens – the pattern shared by both Symbian and Android, also the fastest growing pattern. There is not only one physical button but there are many, in fact there are many different configurations that are quite fragmented, as many people commented. And there is some way to flip to where you launch apps, but essentially it is about these personalizable home screens for both shortcuts and live information, or using tabs or so on those widgets. [4:08]
3. [4:20] Windows Phone 7 has introduced an interestingnew pattern, too early to tell [how successful it will be]. But it just shows that there is demand for other patterns. [4:26]One important remark by Sofpedia’s Nokia Poised to Change Mobile UI Approach with MeeGo Devices [Dec 8] report: “Marko Ahtisaari suggests that the future would bring different UI patterns to devices, and that one of them would be based on notifications.Microsoft’s new Windows Phone 7 OS was built based on notifications.” 4. [4:28] This is basically what is the design team in the Nokia Design Studios is spending most of its time on doing: is introducing a new pattern. This will be launched with MeeGo in 2011. … [To give the idea:] … If you look at touchscreen immersive experiences, so most touchscreen devices, and what you start thinking is this way: you will see this at every single moment – so you walk in Paris, you see in cafe, [where] you see a couple [who] have been together for 10-15 years – they will be there head down, pitching and zooming. Touchscreen interfaces are immersive, they require our full attention. [5.15]I think we are missing a trick and also we are not doing good enough design unless we give people their head up again. What do I mean by that? Better one-handed use, better ways to use the devices, without them demanding our full attention. This means more eye contact, more ability to be present both with the people you are around, with right now the physical environment, as well as when you are navigating the physical environment and using maps. I think this giving people their head-up again is extremely important. [5:45]

This is how Stephen Elop, CEO of Nokia talked about Nokia’s smart phone strategy on the Nokia Connections 2011 event in Singapore (from a 3d party video record [June 21, 2011]):

[0:05] I’am going to jump right in and talk about our progress and talk about the progress and advances in smart devices. As we’ve shared our primary smartphone platform strategy is the focus on Windows Phone. I have increased confidence that we will launch our first device based on Windows Phone platform later this year. And we will show our products in volume in 2012.

Now I’ll tell you we have these devices in hand now, we have them working and those who have viewed our early work are very optimistic about the devices Nokia will bring to market. In fact — to quote — the CEO of a leading retailer, and I quote, this device is an absolute beauty with a very fast user interface. The combination of a best of Nokia with a great user interface will have a tremendous impact on the market. [1:00, then in the record comes Marko Ahtisaari with N9 intro, but in reality Marco Argenti was preceding him with Qt [cute] related announcements which are well expressed on the following post on the Nokia Developer]

The future of Qt: Bringing apps to the next billion [June 21, 2011] (emphasis is mine)

Exciting news for the developer community today, and in particular for those who are focused on Qt: At the Nokia Connection 2011 event in Singapore, Nokia Senior Vice President, Developer Experience Marco Argenti confirmed that Nokia will “make Qt core to bringing applications to the next billion,” and he reassured developers that investments made in Qt today will live on in the future with Nokia.

During his presentation, “Qt and the Next Billion”, Argenti noted the following:

  • “Qt-powered Apps have serious momentum on Ovi Store. Our consumers are downloading more Qt-written apps on over 100 million devices worldwide. And today I’m happy to announce that we will make Qt core to bringing great applications to the next billion.”
  • “Why did we pick Qt? Qt is a great cross-platform framework. Qt is modern and efficient. Qt Quick bridges the design phase with the production phase – making it incredibly easy to design, prototype and develop new applications. With QML, the interface markup language, web developers can feel right at home creating great UI’s.”
  • “Qt is widely supported by an active community of over 1/2 million developers. And Nokia will continue to invest in Qt, as we’ve recently released Qt SDK 1.1, and we’re actively involved in contributing to Qt 5.”

This means developers will have both a large existing audience to target with Qt-based mobile apps (100 million Symbian-based phones, plus our first-ever pure touch smartphone, the Nokia N9).

Argenti also noted that: “We will disclose further details in due time; today we want our developers to see the opportunity that the future of Qt brings as part of our mobile phones strategy.”

Learn more about developing for the Nokia N9 and developing with Qt.

And before Ahtisaari was invited by Elop to introduce N9 he actually said according to the official webcast (emphasis is mine):

[42:23] When we’ve determined that that we will shift our strategy we’ve assessed we could bring our innovation and technology to the market three times faster than we’ve had in the past. … [now he says that Symbian Ana, Windows Phone, dual SIM products are showing that] … But we are also breaking through with new forms of innovation. As we’ve said on February 11 we intend to launch an exciting experience around user interface, the industrial design and the developer platform. As part of that work we’re exploring technology to create a better phone. [43:10, after which Ahtisaari is invited on the scene and delivers what could see from the already mentioned 3d party video record from 1:00]

Then, at another event [for the employees] after N9 introduction by Marko Ahtisaari and before the first Nokia Windows Phone 7 has been shown (from a 3d party video record, the 2nd embedded into Engadget’s Nokia’s first Windows Phone: images and video, codenamed ‘Sea Ray’ [June 23, 2011]):

So, I have to say a special thank you as Marko did to everyone working in and around the MeeGo effort. It’s been a challenging time for that team as well. And yet look at the quality of work that’s been done.

Now one of the big questions we get is, yes you’re launching this device but we know you are transitioning to Windows Phone, what’s the point? What is the point?

The point is this. There’s a whole collection of innovation available in the N9 that is going to live one. So — for example — Marko talked about the work in and around Qt [cute] and the development of Qt applications [see between 13:20 and 13:55 in the N9 announcement video record embedded below], and as we’ve already said  yesterday, Qt lives on and actually strengthenes because of its engagement in the next billion. So that’s really good. Innovation in that device lives on.

Another example is the user interface and user experience. We’re not saying precisely what device, and when and how. The user experience you see here is something that will live on as well.

A third example of innovation that will live on is the beautiful industrial design. So now I’m going to just ask everybody to put away your cameras, turn off all of the recording devices. I’am serious because I’m going to share with you something … because this is something that is super confidential and we do not want to see out in the blogosphere, wherever it is. We think it is important for all of you to understand how this innovation lives on, and how well we as a company are today executing.

Let me show you another new device from Nokia. … So what is it? It’s sort of looking at it and then say that is what Marko has shown us. Beautiful design, Gorilla glass … Carl Zeiss” 8mpixel camera … you notice there is as one extra button on the top. So you notice that is not the same device. … What this is, is a product that is code-named Sea Ray, and it is Nokia’s first Windows Phone device. [2:34, then comes a quite detailed WP7 part, until 21:45]

So from all these it is quite obvious that with February 11 decision the only thing which Nokia immediately had thrown out of the boat was the MeeGo operating system itself. And indeed in an interview to Helsingin Sanomat on Thursday Elop delivered a a quite clear message: Nokia CEO Stephen Elop rules out possible comeback of MeeGo [June 3, 2011]

Finnish mobile phone giant Nokia’s CEO Stephen Elop promised that the company will soon introduce a range of new inventions and innovations, with which it will improve the competitiveness of its mobile phones.

As an example of new inventions, Elop mentioned the brand-new N9 handset launched in Singapore on Tuesday, which will come on sale in the autumn, a year behind the original schedule.
“The N9 features many new breakthroughs related to its usability, design, and materials, which we will be utilising and developing further in our upcoming models. I cannot speak of them more specifically just yet, but they will soon become apparent”, Elop said.
According to Elop, the N9 is a handset that relies more on the Qt application framework than its MeeGo operating system. Thanks for the Qt environment, the used applications can be programmed to work with three of the platforms used by Nokia, though not with the Windows Phone system.
In Elop’s words, there is no returning to MeeGo, even if the N9 turns out to be a hit.

The switch to the software giant Microsoft’s Windows Phone operating system has frustrated many of the Nokia staffers.
Some are afraid that the company will turn into a mere equipment manufacturer and a Microsoft subcontractor.
Elop roundly rejects this interpretation.
“Nokia will continue its research and development on the software side, as well as in services and equipment design. We will build inventions for our Windows phones that will make us stand apart from our competitors and bring significant additional advantage to our application developers”, he declared firmly.
According to Elop, in recent months Nokia has launched several different software development projects.
“Those working within the software R&D sector are more and more motivated thanks to our achievements. I am continuously in touch with them. I constantly receive emails that tell me how the pace of problem-solving has quickened.”

Nokia N9 details

Nokia N9 Design Story [June 20, 2011]

In this video, Marko Ahtisaari, Nokia’s SVP of Design, talks about the design of the Nokia N9 http://nokia.ly/iGrtvJ. It only takes a swipe to get to what you want with the Nokia N9, and it all floats beautifully on the large, curved display. Stay in touch with people, news and events. And browse the web. Quickly. Get around with free maps and navigation. And take great pictures with the 8MP camera. The Nokia N9 makes it all smooth, effortless and gorgeously stylish. Learn more about the new Nokia N9, visit: http://nokia.ly/jUnOCP.

Nokia N9: the designer’s story [June 22, 2011] (in paragraph emphasis is mine)

I love sitting down with Nokia’s designers. There’s not one square millimetre of each phone that doesn’t get refined and revised a hundred times. They always have a mind-blowing story to tell about each aspect of the design. It’s never, “We chose blue cause that would be cool”; it’s always like, “We chose cyan, not blue, because the design is pure, so colours need to be pure, and…” at which point, my head explodes. I sat down with the Nokia N9′s lead designer, Anton Fahlgren, for a chat about his epic two-year project

How did the Nokia N9 begin?

I headed up a team in Copenhagen during the summer of 2009, and that’s where it began. The brief was to evolve the story from the previous Nokia Nseries/Eseries devices, and define it moving forward. We chose to work with an Nseries product as it was interesting times at Nokia – things were bumpy in the high-end market. Extreme numbers on a spec sheet was not the way to win. We knew we needed innovation at every level.

I’ve had the option to do this before, but those occasions didn’t feel so very exciting: here we had a blank canvas. I wanted to define what high-end means today and take a more software-driven approach, and show people it’s not just the hardware that makes a great phone: it’s the UI and platform and how it all works together.

Did you know you’d be creating for something other than Symbian?

The MeeGo stuff had started bubbling, but we hadn’t seen it. We tried to simplify and distil the existing story, because there was a lot of good in the work that was done. That was the starting point – no compromises. We tried different styles; we did a range of devices like slide-and-tilt; we did a couple different sizes, but they were all based on the same design family. But the one that made it to the market was the Nokia N9.

What makes the Nokia N9 unique?

Above all, it’s the continuity that you feel from the shape of the glass continuing to the side profile. It just feels right. The basic concept is that seamless continuity of the form, and I think it was something we refined with the UI. It’s just something nice about interacting with a device that has a gentle curvature. Once you have something that’s more continuous in your hand, it’s just more pleasant to interact with it, all the way to the edges. Try to swipe stuff on other phones, and you’ll soon see that the edges will bother you.

When you see it in three dimensions, there’s not a single straight surface on the product. It’s actually really difficult to model in CAD. It’s almost like a pillow. In concept, a pillow is a simple form. It’s not hard to understand. But if you have to build those surfaces on a computer, you’ll realize how complicated they are. So the concept is simple, but as a piece of geometry, it’s quite elaborate.

No buttons! Just swipe!

Once you’ve got a flavour of life without buttons, it’s hard to go back. I find myself with other devices trying to swipe, but I can’t. Phones with keys feel old now, in some respects.

Last question, how would you like consumers to feel when they first pick up a Nokia N9?

That’s a good question. What’s important for us is that if this becomes a hardware story, we’ve failed. It needs to be in context with the UI. I hope the first point of delight will be about the interface, the button-less navigation. I hope it’s not only about the hardware design. The idea was to create a canvas for the UI and the user to shine. When you watch TV, you don’t want a frame, you just want the content.

The Nokia N9 Announcement by Marko Ahtisaari at Nokia Connection 2011 [June 21, 2011]

In this video, Marko Ahtisaari, Nokia’s SVP of Design, announces Nokia N9 http://nokia.ly/iGrtvJ.

The related press release: The Nokia N9: a unique all-screen smartphone [June 21, 2011] (emphasis is mine)

Singapore – Nokia today announced the Nokia N9, built for people who appreciate a stunning blend of design and the latest smartphone technology.  To learn more about the design of the Nokia N9 visit: http://swipe.nokia.com

One swipe and you’re home
The Nokia N9 introduces an innovative new design where the home key is replaced by a simple gesture: a swipe. Whenever you’re in an application, swiping from the edge of the display takes you home.

The three home views of the user interface are designed to give fast access to the most important things people do with a phone: using apps, staying up to date with notifications and social networks, and switching between activities.

The industrial design of the Nokia N9 is an example of extreme product making and craft. The body is precision-machined from a single piece of polycarbonate and flows seamlessly into beautiful curved glass. The laminated deep black display means that the user interface just floats on the surface of the product.

The Nokia N9 also packs the latest in camera, navigation and audio technology for a great all-round experience.

“With the Nokia N9, we wanted to design a better way to use a phone. To do this we innovated in the design of the hardware and software together. We reinvented the home key with a simple gesture: a swipe from the edge of the screen. The experience sets a new bar for how natural technology can feel,” said Marko Ahtisaari, Nokia’s head of Design. “And this is just the beginning. The details that make the Nokia N9 unique – the industrial design, the all-screen user experience, and the expressive Qt framework for developers – will evolve in future Nokia products.”

Innovative all-screen design
With no need for a home key, the all-screen Nokia N9 makes more room for apps to shine. The 3.9-inch AMOLED screen is made from scratch-resistant curved glass. The polycarbonate body enables superior antenna performance. This means better reception, better voice quality and fewer dropped calls.

Camera, maps and multimedia
The 8-megapixel Carl Zeiss autofocus sensor, wide-angle lens, HD-quality video capture and large lens aperture enable great camera performance even in lowlighting conditions. This makes the Nokia N9 one of the best camera-phones ever produced.

The Nokia N9 features free turn-by-turn drive and walk navigation with voice guidance in Maps. With the new dedicated Drive app, you can get in your car and start navigating to your destination right away.

You can watch videos in true 16:9 widescreen format. And because the Nokia N9 is also the world’s first smartphone with Dolby® Digital Plus decoding and Dolby Headphone post-processing technology, you get a surround sound experience with any set of headphones.

Touch just got better
Fitted with the latest in wireless technology, Near Field Communication (NFC), the Nokia N9 allows you to easily share images and videos between devices by touching them together.  Pair it with Bluetooth accessories like the new NFC-enabled Nokia Play 360° wireless music speaker only once, and you get a great surround sound music experience with just a tap.

Colors and Memory
The Nokia N9 will be available in three colors – black, cyan, and magenta with storage options to accommodate plenty of content: 16GB and 64GB. The Nokia N9 is scheduled to be in stores later this year, with availability and local pricing to be announced closer to the sales start.

More information about the Nokia N9 can be found at: http://swipe.nokia.com.

Video: Diving into the Nokia N9 UI and specs [June 21, 2011]

The Nokia N9 is fresh out of the oven and we think it’s pretty hot. We’ve received quite a few questions from our readers about this newcomer’s technical profile and user interface. To give you a better idea of how the product works, we grabbed Marketing Manager Jussi Mäkinen and asked him to give us a guided tour of the Nokia N9 UI on video.

Nokia Marketing Manager Jussi Mäkinen walks us thru Nokia N9. Nokia N9 is designed around the things people typically use the most.

Here is some geeky data on the technical specifications:
– Networks: Pentaband WCDMA 850, 900, 1900, 1700, 2100, Quad band GSM/EDGE 850, 900, 1800, 1900
– Speed: HSDPA Cat10: 14.4Mbps, HSUPA: Cat6 5.76Mbps
– Display: 3.9” WVGA (854×480) AMOLED display with curved Gorilla glass, no air gap, anti-glare polarizer
– OS: MeeGo 1.2 Harmattan
– Memory: 1024MB RAM, 16GB/64GB storage
– Camera: 8Mpix auto-focus Carl Zeiss, wide-angle lens, 2x LED flash, Video capturing MPEG-4 SP 720p @ 30fps, 2nd camera for video calls
– Size / Weight: 116.45 mm x 61.2 mm x 7.6–12.1 mm (L x W x T) / 76 cm3/ 135 g
– Connectivity: BT 2.1, GPS, A-GPS, WLAN 802.11abgn, NFC, 3.5mm AV connector,  micro USB connector, USB charging
– Processor: ARM Cortex-A8 OMAP3630 1 Ghz, PowerVR SGX530
– Audio: MP3 player, Audio jack: 3.5mm, Supported codecs: mp3, AAC, AAC+, eAAC+, WMA, FLAC.
– Battery: 1450 mAh

Operating Times
– Talk time: (GSM/WCDMA) up to 11 h / up to 7 hours
– Standby time: Up to 450 hours (WCDMA), up to 380 hours (GSM)
Video playback (720P): up to 4.5 hours
– Music playback: up to 50 hours

Other information from the official Nokia blog:
Introducing the Nokia N9: all it takes is a swipe! [June 21, 2011]
Nokia N9 – photo taking and sharing [June 22, 2011]
Nokia N9: what would you like to see? [June 22, 2011]
Getting up close, with NFC on the Nokia N9 [June 23, 2011]
Nokia N9: Drive & Maps [June 23, 2011]
Blogbite: let’s talk Nokia N9 [June 24, 2011]

Nokia’s N9: Cool, Cruel and Unusual [by Randy Arnolds, June 23, 2011]

source: http://swipe.nokia.com

Unlike many friends and former Nokia colleagues, I have not had the pleasure of fondling a sexy new N9 so this won’t be a product review as much as a process and philosophy review.  That means something a little less structured than usual and loaded with unabashed opinion, pontificating and ranting.

So buckle up, this should be a ride that would do Tomi Ahonen proud.

We have ignition…

Maemo and MeeGo community advocates didn’t begin with high expectations for the Nokia Connection 2011 event in Singapore on June 21.  Lacking the presentation pizzazz of Apple or even Microsoft, Nokia has a mixed history with this sort of thing and has too often bombed when it needed to blow something up.  So when we were bored with a Symbian Anna demo followed by an even more tiresome spiel on S40, the peanut gallery in a freenode.net IRC webchat augmented Nokia’s endless warm-up with the usual locker room antics.  CEO Steven Elop had promised a disruption; we were just distracted.

Then Marko Ahtisaaricalmly and quietly claimed the stage.

Speculation had run rampant over who would more likely stun us with the allegedly disruptive device, but the consensus had correctly pinned Marko as the man.  He sealed the deal by very quickly getting down to business.

A presenter’s presenter, the well-spoken Ahtisaari peeled away layers of the slick N9 with the deftness of a professional magician.  I can’t speak for anyone else but our little web gathering was enthralled.  The catcalls and comic relief abruptly ceded to what amounted to geek sexting.  That’s the magic of what Nokia has pulled off here, with impeccable industrial design and a clever UI just begging to be swiped.

That’s also the problem.

The MeeGo Mambo

When Elop announced Nokia’s head-scratching new strategy (and I use that last term extremely loosely) back in February of this year, there was the promise of an undescribed MeeGo device to be produced at some point, to be followed by an anticlimactic year-long ramp-down of the project once hailed as Nokia’s high-end salvation.   Never mind that the N9 isn’t running pure MeeGo (but rather a mish-mash of Maemo 6 and MeeGo parts now curiously labeled as MeeGo 1.2 Harmattan).  To any end user, it’s MeeGo enough.

But the question becomes: why?

Why release something designed to run what is, for Nokia, a dead-end OS?  Elop says this otherwise-seductive N9 is intended as a test-bed for future Windows Phone 7 devices.  But how many consumers tolerate being tested? Those few who fell in with Nokia’s steps 1 through 4 with Maemo can be forgiven for feeling too defeated to step up for number 5.  That would make the N9 a profit sink at a time when Nokia’s stock (NOK) is severely depressed.

Is this just a stopgap until Windows Phone 7 graces similar Nokia hardware?  If so, will enough purchasers succumb in the meantime to this obviously alluring work of art to at least cover its costs?

Conspiracy theorists are having a field day with this, pointing to admittedly mind-boggling statements and steps that, like the pieces from different puzzle sets, do not fit together.  One of the more prevailing and extreme speculations is that the N9′s strange release is actually a deliberate move by Microsoft-via-Nokia to torpedo the prospects of MeeGo– not just within Nokia’s domain, but in toto.  The old Fear/Uncertainty/Doubt (FUD) machine grinding up another competitor.  I’m resisting this line of thought, but… but…

The Maemo Legacy

Nokia struggled with its last Maemo device, the N900 mobile computer, both in terms of consumer adoption and reliability issues.  Can the company afford to repeat that with the N9?  And will the life of the typical N9 exceed Nokia’s willingness to support it?  The track record isn’t good there.

It’s all… bewildering.

Back to the device unveiling.  Again, Elop referred to this little beauty as disruptive.  He even went so far as to invoke his favorite word, ecosystem, although the N9 doesn’t appear to come with one.

So what could the N9 disrupt?  Well, so far it’s done a number on the MeeGo and Maemo communities, particularly the latter.  maemo.org members are largely polarized on included or excluded features like hardware keyboards, Adobe Flash support and HDMI.  Nothing new there.  But this is likely the last time the Maemo community could survive a foundation-fracturing device.  It’s already on shaky ground as legacy Maemo devices and long-standing community leaders run out of steam or just plain run out.

Long Limbs, Thin Ice

Many Maemo/MeeGo fans are looking at the glossy N9 with a glint of hope.  Maybe, just maybe goes the logic,  success for the N9 could change Elop’s mind on MeeGo.  Maybe the Linux-based operating system really is a Plan B– one that advances to Plan A under the right circumstances.  If Windows Phone 7 falters, and that’s a reasonable conjecture based on current sales, what else is Nokia going to do?  Stay with Symbian, which it tossed over to Accenture?  Elevate S40?  I don’t think even bringing Qt to S40could happen fast enough.  If the N9 sells out completely, or close enough, will that trigger a slow-down in Nokia’s ramp-down?  If so, does Nokia have the ready staff for it, or have too many abandoned the wayward ship?

Detractors are saying this is all pointless, that there’s no room for MeeGo in a two-horse Android-plus-iOS world. How selective amnesia can be; there wasn’t room for them, either, a few years ago when Symbian owned the playing field.

MeeGo could actually succeed with a similar approach to Apple’s: highly target a select demographic comprised of, say, fifteen to twenty percent of a given population and please them to no end.  But instead of the same demographic, cater to those at the complete opposite end of the open-closed spectrum.  In other words, the Maemo/MeeGo crowd in addition to those largely invested in Android because it isn’t iOS.  Then let Android, WP7, and the rest battle for the middle.  Select markets generate higher margins than mass markets, as Nokia has learned the hard way.

Summing Up

I found the Singapore event a crude juxtaposition of a lethargic Singapore (and similar) market address awkwardly combined with a brief, exciting N9 reveal.  This was the wrong venue to introduce this device.  The better one would have been the MeeGo Conference 2011, which sorely needed it.

Those who read here regularly will expect me to be completely candid, so I won’t disappoint.  There are aspects of the N9 I don’t like.  Sealed-in battery, lack of memory card slot, last year’s CPU, and a few others.  But I’m not the type to lose the forest for the trees.  From a big picture perspective, I love the Nokia N9.  Yes I drooled over its renderings.  Yes I find that uniquely-curved screen to be cool enough to touch.  Yes I want one NOW.  I will forgive the known shortcomings.  Heck, even Engadget likes it.

And as for MeeGo: it still enjoys strong support from Intel and partners.  It just needs a high-profile, lust-inducing handset to improve its consumer recognition prospects.  The N9 shows it can be done in spades, despite Elop’s disputable claims to the contrary.

My disagreement with Elop on MeeGo [by Felipe Contreras, working in Nokia (Maemo), June 21, 2011]

Some time ago I received a private email directly from Elop (just me, nobody else in CC, I am not going to go into details as to why), in which he explained that the biggest problem was the small amount of MeeGo devices in the years immediately ahead.

This is simply not true.

Before explaining why, I’ll quickly say that I actually work on hardware adaptation, so if somebody knows the amount of effort needed to adapt MeeGo to different hardware platforms, it’s us. Plus, I closely follow Linux related mailing lists (linux-arm, linux-omap, linux-media, etc.), and know a lot of people in different companies that work precisely in this area. I have quite a few years of experience doing this, so I know what I’m talking about.

Update: To avoid confusion, I am a mere software engineer. And when I say “us” I’m talking about the bigger team I am part of.

Nobody I know believes what Elop said, and let’s keep in mind that Elop is not an expert in this area, we are. So my guess is that he got his information from some upper management guy who didn’t know what he was talking about either.

As I explained Elop, if we wanted to ship 10 devices with OMAP 3 (the same platform of the Nokia N9) today, there is absolutely no problem from the software point of view: all the UI software remains the same, and the hardware adaptation would probably require few modifications, if any.

The problem is when porting to an entirely new hardware platform, say Snapdragon. Suppose only 3 devices are planned on the “years immediately ahead”, well, then it makes sense to have 3 different hardware platforms, and each one of those requires work from the hardware adaptation team, not from the upper layers, though. However, that’s not a technical limitation, it could very well be 30 devices instead of 3, it’s basically the same amount of work for us. IOW; what matters is the hardware platform, not the number of different devices.

Note: all these are merely examples, not actual plans

Funnily enough, Windows Phone only supports one hardware platform: Snapdragon (and in fact only certain chips). So MeeGo alreadyhas an advantage over Windows Phone; you could ship more devices on more hardware platforms. All we need is the word.

Not to mention the fact that most of the hardware adaptation is already done by hardware vendors. They do it because it’s the easiest way to demo their hardware (it’s Linux). I tried to explain that on an earlier post where I show many examples of people porting MeeGo to a plethora of devices(it’s easy and fun).

Another advantage of course is that MeeGo is already here (Nokia N9).

Not to mention the fact that MeeGo is open source, and Linux is a synergetic endeavor; there’s man more than one company (Microsoft) working on it, in fact, almost everybody else is.

Elop’s answer? “I am simply going to choose to respectfully disagree on multiple fronts”. He didn’t even bothered to mention exactly what was the disagreement.

So there you have it, if there’s a reason for ditching MeeGo, it’s certainly not a technical one, and most likely not a good one either. I hope the people out there like what we did with the Nokia N9 and ask the though question “Why exactly did you leave MeeGo, again?”, specially when there are no signs of any Windows Phone device.

Note: as usual, this is my own personal opinion, and it’s based on publicly available information

Texrat the Crypticum Keepersays:

June 21, 2011 at 20:03

As a former engineer (for Nokia Maemo devices) and product designer (elsewhere) I can vouch for everything Felipe says. Elop’s comments about MeeGo device development are disingenuous and simply designed to reinforce his decision to go with Microsoft. Maemo was run on a shoestring budget yet managed to make incredible progress– put serious resources behind MeeGo and Nokia or any other company would outperform competitors in device innovation. The retreat from MeeGo points to the success of FUD more than anything. Sad that we have allowed that and risk aversion to stifle innovation.

another adaptation guysays:

June 22, 2011 at 10:01

I’m not a big fun of Elop or WP7 either, but …

It’s not only about the number of platforms or number of devices made on particular HW platform. There is important factor – time to market. You have to be on time to the market to sell your stuff.
MeeGo Harmattan OMAP3 adaptation work is brilliant. It is also late. And who needs OMAP3 devices anymore? Market is looking forward… Tegra, OMAP4/5, Snapdragon.

If Nokia would start working on adaptation of a new HW platform that’d mean another 1-2 years from now (and there isn’t any decent adaptation layer from chip makers available on the market yet). By the time they are done existing UI would go out of fashion, so they would have to change it too to stay competitive. Once again Nokia would end up in situation as in all OSSO/Maemo/MeeGo – changing the HW platform AND the whole SW stack. And being late to the market by years.

WP7 was chosen simply because they believe MS adaptation layer closer to the completeness on their HW platform of the choice than Nokia would be with MeeGo in 1 year. Is that right ? Intel’s chip is far from ready… MeeGo on ARM SoCs is a joke^Wdemo.
Nokia needs LOTS of new devices on the market ASAP. Or it will be too late.

Ready application frameworks, SDK, ecosystem and services – all this comes as a bonus. Of course this might be pretty far from reality, but check how cool it all looks on paper. Too good offer to pass.
IMO the real mistake they made by going with WP7 is the choice of business model and ecosystem structure. Closed, royalties based SW. Last century.

“Not to mention the fact that most of the hardware adaptation is already done by hardware vendors. ”
Name a single decent one ? Sure they try, but they are not quite there yet.
Ability to boot linux on your SoC doesn’t count as “adaptation”. Besides that’s only for SoC, without peripherals. Just adding a new USB transceiver to your device can generate some man/months of SW work in adaptation. Let’s not even start talking about power management.

“Another advantage of course is that MeeGo is already here (Nokia N9).”
MeeGo ? Yeah, right. Common ppl, for the 100th time N9 != MeeGo.

“…MeeGo is open source, and Linux is a synergetic endeavor”
From Nokia experience – synergy was seen only in a handful of open source components in OSSO/Maemo/MeeGo Harmattan. Adaptation contributions went mostly one way – upstream.

FelipeCsays:

June 22, 2011 at 14:04

@another adaptation guy The hardware adaptation in Nokia has been ready since a looong time. The problem has always been the UI. Maybe not perfectly, but in a competitive level compared to current Android devices.

And no, WP7 is not closer to completeness. What makes you think so? See the list of chips supported by WP7, it’s basically only QSD8250, which is 2008 technology. That should make you think how easy it is to support different chips, forget about platforms, or architectures.

Sure, hw vendors don’t have perfect adaptation for Linux, but they have something which is better than what WP7 has; nothing. There’s no OMAP4, Intel, Tegra, Sh-Mobile, or anything else, not even booting. Not to mention the fact that Android kernels are already shipping, and most of that work can be re-used, as it’s still Linux.

I’m sure it would have been easier and faster for Nokia/Qualcomm to finish up the adaptation of a Snapdragon chip that it is for Microsoft to provide OMAP4 support, or even worst: Intel support.

FelipeCsays:

June 22, 2011 at 16:59

I never bought that story, and I am kind of shocked that elop (and the other management) actually believes that this is a legitimate argument. Maybe this is just what they say to you? There are of course other, more relevant reasons for the adaption of wp7.

@oli Yes, that’s also my thinking; whenever the official reasons don’t make sense from any point of view, there’s probably some secret reasons. However for now that’s speculation.

What I am interested to see is how much people like the Nokia N9, and how much pressure does Nokia gets to continue working on MeeGo. I don’t know if anything will change, but we in the Maemo/MeeGo team did all we could to make the Nokia N9 a success, now it’s the turn of the consumers :)

Although i love maemo/meego and the n9. its the ecosystem that elop is worried about, and one of the key factors why its so limited at this stage.

@Anthony Well, that’s another reason that can also be debunked. For starters, “ecosystem” seems to me more like an invented term from Elop rather than something consumers are actually looking for, so it’s hard to tell exactly how important such a thing is, or even what exactly does that mean. Also, you have to remember that a few years ago Android didn’t have any “ecosystem”, which is exactly how all platforms start.

I believe MeeGo’s “ecosystem” would have been bigger than Windows Phone’s, in fact, if the “ecosystem” is supposed to be that important, why does WP7 has so small marketshare?

It just doesn’t make sense from any point of view.

FelipeCsays:

June 23, 2011 at 15:28

Does WP7 support multicore?

@Guest It doesn’t. I heard there’s a new WP release that does support it, but that hasn’t shipped on any phone yet (AFAIK).

It is amazing that 95% or comments do not understand basic market(ing) facts. Today, we are not buying phones because they are great. At least smartphones. We are buying them, because other smart people can write amazing apps for them and there is big existing market of these great applications. It is called ecosystem.

@Dantius Palpatine I call bullshit on that. For the ecosystem to matter, first you need good phones. If your assertion was true, WP7 would be gaining market, not loosing it as it is.

sorry but another adaptation guy is right. First and foremost, Harmattan has nothing to do with MeeGo, and I’m still wondering how this marketing trick went through.

@crowbar MeeGo, Maemo, Harmattan, who cares? The software is good. What I want is to see the consumers buying the device like crazy. Sure, it would have sold much more if it wasn’t the last of its kind, and there was a believable developer story, but it’s still a great device (specially if you compare to others in the market).

FelipeCsays:

June 24, 2011 at 3:03

When Elop said that Nokia wouldn’t be able to produce many Meego devices before 2014 I’m sure he was correct.

@jii Great, a statement without any argumentation. What makes you think so? How difficult do you really think it would be to take the software of the Nokia N9 and put it into another device? I’ll tell you how; not at all, it can be done in a few months.

FelipeCsays:

June 24, 2011 at 3:53

@Son of a Finn

Seems like so many posters here are children. Does anyone really believe that Elop does not want to see Nokia succeed?

Of course he wants Nokia to succeed, but he wants it to succeed based on his own decisions. Do you really think he would say “you know what, I was wrong, this WP stuff is not going to work”? That’s not going to advance his career.

Most of what people call “conspiracy theory” can be explained in systemic terms. Maybe Elop truly never thought on crashing Nokia so it can be sold cheaply to Microsoft, but humans are social creatures, we rarely make big decisions without talking to other people — I’m sure he talked with some friends in Redmond, and they tried everything they could to sell the idea of WP7. They might have thought about the possibility of Nokia crashing, and they didn’t care, they pushed Elop to make the move that benefits Microsoft the most, even though it’s the most risky for Nokia.

At the end of the day Elop’s intentions don’t really matter, what matters is what he does, which is most likely influenced by a lot of hidden agendas of other people.

The real question you have to answer is: what happens if Windows Phone fails?

Really, what would happen to Nokia? The stock price is already in ruins, and that’s just because of lack of good news, imagine what would happen when really bad news arrive. What would happen to Finland?

It is rarely a good idea to go “all-in” like Nokia is doing with Windows Phone. It only makes some sense when you are completely sure, but look around, everyone is asking the same question — Why WP7 when you have MeeGo? — that alone should raise some questions regarding the “all-in” position, and then the next question arises — Why not try both?

Let’s suppose Elop is right and I’m wrong; it would only be possible to develop a few MeeGo devices in the next coming years. Well, even if that’s the case there’s nothing wrong with that, it would be a good backup plan if WP fails. Somebody might say, but it takes too many resources, but that’s not true, the Maemo team never took that many resources (it’s kind of efficient), and with a reduced scope, resources could be decreased.

Nokia's Investment

Microsoft is all about partnerships. They do not make hardware or very many end products. Microsoft’s success has come from partnering with many many companies and enabling them to be successful. Every PC manufacturer and 93% of VARs are Microsoft partners. Every PC peripheral or PCI card vendor needs to be a Microsoft partner to succeed.

You call that “partnership”? Then I guess mafia bosses “partner” with their debtors, and when somebody becomes somebody else’s bitch on jail, that’s also a “partnership”.

Strictly speaking they are partnerships, but that’s not what everybody would consider a good partnership.

FelipeCsays:

June 24, 2011 at 12:59

What’s your opinion about needing more than the 3 devices in 3 years that Elop claimed was the problem? Apple has been doing well with an average of 1 new iPhone model a year. I look at the N9 and can’t figure out what hardware would be outdated before 2014. Maybe a next model with a sliding keyboard, but what beyond that?

@Pat That’s a good point, I think Nokia could have done the same as Apple, and concentrate on a few excellent phones. Regarding hardware I would add a sliding keyboard, but also a camera button, and micro HDMI, probably with a dual-core Snapdragon. Something more interesting would be to have a docking station like the Motrola Atrix, but helped with the fact that MeeGo already runs on laptops and so on.

FTR I didn’t claim Elop said 3 devices in 3 years, that was just an example.

Do you know if the number of N9 devices will be limited or it will depend on sales?I hope Nokia promotes this phone with operators because the biggest amount of sales comes from operators, with that in mind, if N9 is promoted the same as N900 it’s impossible it will be a big hit.

It’s hard to make a great phone, but it’s easy to destruct its sales.

@Fran Excellent question! That is something everyone should ask Elop.

FelipeCsays:

June 24, 2011 at 19:41

@Son of a Finn

Read my postings carefully, you will see that I agree with you that Nokia should continue to invest in Meego (as Elops R&D chart shows). I would love Meego to succeed, though I have doubts based on the mobile operators not wanting another platform to support (regardless of the OS being great or not).

Operators want a counterweight against Android. I don’t think they care if it’s WP7, or MeeGo, but something.

Where I differ from most posters here is that I believe if Nokia is not successful with WP7 then they will not survive. Yes, it is an “all in” bet. Success with WP7 will generate the cash to support investment in Meego, failure leaves no hope for Meego at Nokia.

Let’s concentrate on the idea that WP7 fails. If that happens either Nokia starts from scratch, or somebody buys it (for cheap BTW), and given that Nokia already transitioned to WP7, it would be an interesting option for Microsoft. BTW, I do believe that a merge between Nokia and Microsoft would produce decent WP7 phones, because all the traditional barriers for collaboration typical of Microsoft would disappear.

Also, my definition of partnership is when the parties work together and mutually depend on each others success for their own. The examples I gave fit that. PC vendors can and do make PC’s with Linux variations, they can choose to work without Microsoft if they wish. Microsoft would die if no PC vendors used Windows. The truth is that they need each other and are partners.

Nokia and Microsoft’s Windows Phone division (the new name for the Mobile Communications Business division) also need each other and are partners. Nokia has a strong position in this relationship and I expect them to use that to their advantage.

Do you seriously believe that if WP7 fails, Microsoft would be in serious trouble? Nokia is betting the house, but Microsoft is not risking anything; WP7′s humble marketshare is already decreasing. Not that their mobile division is that important, they can survive comfortably without it.

A too early assesment of the emerging ‘Windows 8’ dev & UX functionality

Update on the recent craze in mass media to call the new era “post-PC” by Frank X. Shaw Microsoft Corporation [19 Aug 2011 3:37 PM]:

Where the PC is headed: Plus is the New “Post”

In the past year, and again in the past few weeks, I’ve seen a resurgence of the term “post” applied to the PC in a number of stories including The Wall Street Journal, PC World and the Washington Post. Heck, I even mentioned it in my 30th anniversary of the PC post, noting that “PC plus” was a better term.

… eReaders, Tablets, Smartphones, Set top boxes, aren’t PC killers, but instead are complementary devices. They are each highly optimized to do a great job on a subset of things any PC can also do. …

I’ll be the first to admit that these new “non-PC” objects do a great job at enabling people to communicate and consume in innovative and interesting ways. That’s not surprising, because they were expressly designed for that purpose. But even their most ardent admirers will not assert that they are as good as PCs at the first two verbs, create and collaborate.  And that’s why one should take any reports of the death of the PC with a rather large grain of salt. Because creating and collaborating are two of the most basic human drives, and are central to the idea of the PC.  They move our culture, economy and world forward. You see their fingerprints in every laboratory, startup, classroom, and community.

At Microsoft, we envision a future where increasingly powerful devices of all kinds will connect with cloud services to make it all the more easier for us social beings to create, communicate, collaborate and consume information. I encourage you to tune into our BUILD conference in mid-September where our vision for this world of devices will become clearer.

Update on development timeframe by Steven Sinofsky  Microsoft Corporation [17 Aug 2011 11:48 PM]:

@TrooperKal — we finished Windows 7 in July of 2009 and had started our long lead work on Windows 8 a little before that.  That’s similar to how we worked on Windows 7 relative to the previous release.

[Re: TroperKal’s question: “It is pretty obvious from your team structure and the already discussed features of v.8 that work has been underway for some time. Just for curiosity’s sake, when did work properly begin on this new version?” ]

June 20-24:
Windows 8 for software developers: the Longhorn dream reborn? [by Peter Bright, June 23, 2011]

Windows 8 will ship with a pair of runtimes; a new .NET runtime (currently version stamped 4.5), and a native code C++ runtime (technically, COM, or a derivative thereof), named WinRT. There will be a new native user interface library, DirectUI, that builds on top of the native Direct2D and DirectWrite APIs that were introduced with Windows 7. A new version of Silverlight, apparently codenamed Jupiter, will run on top of DirectUI. WinRT and DirectUI will both be directly accessible from .NET through built-in wrappers.

WinRT provides a clean and modern API for many of the things that Win32 does presently. It will be, in many ways, a new, modern Win32. The API is designed to be easy to use from “modern” C++ (in contrast to the 25 year old, heavily C-biased design of Win32); it will also map cleanly onto .NET concepts. In Windows 8, it’s unlikely that WinRT will cover everythingWin32 can do—Win32 is just so expansive that modernizing it is an enormous undertaking—but I’m told that this is the ultimate, long-term objective. And WinRT is becoming more and more extensive with each new build that leaks from Redmond.

WinRT isn’t just providing a slightly nicer version of the existing Win32 API, either. Microsoft is taking the opportunity to improve the API’s functionality, too. The clipboard API, for example, has been made easier to use and more flexible. There will also be pervasive support for asynchronous operations, providing a clean and consistent way to do long-running tasks in the background.

DirectUI is built around a core subset of current WPF/Silverlight technology. It includes support for XAML, the XML language for laying out user interfaces, and offers the rich support for layouts that Win32 has never had. This core will give C++ programs their modern user interface toolkit and, at its heart, it will be the same toolkit that .NET developers use too. (DirectUI is a name Microsoft has used before, internally, for a graphics library used by Windows Live Messenger. The new DirectUI appears to be unrelated.)

Jupiter is essentially Silverlight 6; a fully-featured, flexible toolkit for building applications. The exact relationship between DirectUI and Jupiter isn’t entirely clear at the moment. It’s possible that they’re one and the same—and that DirectUI will grow in functionality until it’s able to do everything that Silverlight can do. It’s also possible that DirectUI will retain only core functionality, with a more complete framework built on top of its features. Another option is that Jupiter refers specifically to immersive, full-screen, touch-first applications.

XAML and the WPF-like, Silverlight-like way of developing GUIs are going to be absolutely central to Windows development in the future. Testament to their new importance is a reorganization that occurred at the start of this week. Instead of operating under DevDiv’s roof, the XAML team has been broken into three parts. The group working on XAML and related technology for use in Windows has moved to WinDiv, and the group working on it for Windows Phone, Xbox, and the browser plugin has moved to Windows Phone. Only the group that works on the developer tools—including Visual Studio and Expression Blend—is staying behind in DevDiv. The internal Microsoft e-mail announcing the change notes that the XAML team has been working with the Windows team for the duration of Windows 8’s development; this move simply makes them a formal part of the UI team.

What of HTML5 and JavaScript? They’ll be an option too. Microsoft has ventured down the HTML application path before, with its HTAtechnology. HTAs—HTML Applications—are packages of HTML, JavaScript, CSS, and other resources that run in a special trusted mode. The normal constraints that regular HTML webpages are governed by—for instance, an inability to access local resources—don’t apply to HTAs: HTAs can write to the file system, access arbitrary network resources, and more. In other words, they’re webpages stripped of some of the limitations that make webpages unsuitable replacements for desktop applications.

New-style HTML5 immersive applications won’t be distributed as HTAs, but many of the same principles are likely to apply. Like HTAs before them, they’ll gain greater access to operating system functionality than regular webpages—so they’ll be able to call Windows APIs and have a user interface that feels less like a webpage, more like a native application. Feature-wise, they should be at the same level as .NET and native programs. It’s just that they’ll use an HTML5 programming model and JavaScript. The net result should be something that’s familiar to Web developers, but without the functional deficits that Web applications normally suffer.

Far from being a developer disaster, Windows 8 should be a huge leap forward: a release that threatens to make development a pleasure for native, managed, and Web developers alike. The unification of the .NET and native worlds; the full hardware acceleration; the clean, modern APIs; Avalon as the primary solution for creating Windows UIs—this is what Longhorn’s WinFX promised all those years ago, and this time around it looks like it might actually happen.

Microsoft splits up its XAML team: What’s the fallout? [June 23, 2011] (emphasis is mine)

… Microsoft on June 20 split up its XAML team, sending part of it to Windows, part to Windows Phone and leaving part in the Developer Division, according to an e-mail from Developer Division chief Soma Somasegar dated June 20. …

From: S. Somasegar
Sent: Monday, June 20, 2011
To: Client and Mobile Team
Cc: Developer Division FTE; Steven Sinofsky; Julie
Larson-Green; Terry Myerson; David Treadwell
Subject: Bringing together client platform efforts

MICROSOFT CONFIDENTIAL

Over the last couple of years, our Client and Mobile team has done a fantastic job of building a number of XAML related technologies that have been a huge value add to the Microsoft client platforms and an instrumental part of delighting our developer customers. The agility and customer focus that the team has demonstrated over the years has been a pleasure to watch.

Today, we are making some organization changes to bring our platform technologies under a single management structure. These changes are centered around three focus areas:

• The team working on XAML technologies for Windows will move to Windows.

• The team working on XAML technologies for Windows Phone, Xbox and browser plugin will move to Windows Phone. [Microsoft Mobile Communications Business is now the Windows Phone Division [by Mary Jo Foly in ZDNET, June 16, 2011]]

• The Client and Mobile tools teams, including Windows Phone tools and XAML tools, will stay in DevDiv.

These changes are all effective immediately. From a performance review perspective, we will do this year’s performance review underthe DevDiv organization model.

Microsoft -- Kevin Gallo general manager on Silverlight I want to thank Kevin Gallo [publicly so far: General Manager on Silverlight, he was originally writing the graphics engine of WPF but by 2007 was already product unit manager for Silverlight, now he has been moved to the Windows Phone where the Silverlight heritage will continue to live] and the team for all the great work that they have done over the years. Moving forward, I’m  very excited to bring the client platform efforts closer to the platform teams. There is a lot of very exciting and critical work underway as part of our next wave of platform releases and I am very eagerly looking forward to seeing the team’s work in the hands of our developers and customers.

The follow-up emails will provide more details on thechanges to those impacted.  Please join me in wishing Kevin and the  team all the very best as we move forward.  If you have any questions about this change, please let your manager or me know.

-somasegar

Please welcome the XAML platform team to Windows! [by Scott Barnes, June 24, 2011] (emphasis is mine)

From: Julie Larson-Green Sent: Monday, June 20, 2011 9:35 AM To: Grant George; Jon DeVaan; Julie Larson-Green; John Cable; Yves Neyrand; Craig Fleischman; Bambo C. Sofola; Scott Herrboldt; Greg Chapman; Julie Bennett; Jeff Johnson; Ales Holecek; Mohammed El-Gammal; Chuck Chan; Michael Fortin; Eric Traut; Jensen Harris; Linda Averett; Alex Simons (WINDOWS); Gabriel Aul; Dennis Flanagan; Iain McDonald; Samuel Moreau; Dean Hachamovitch; Michael Angiulo; Antoine Leblond; Tami Reller; Chris Jones (WINDOWS LIVE); Jonathan Wiedemann; Ulrike Irmler; Adrianna Burrows Cc: XAML Team; Kevin Gallo; S. Somasegar; Terry Myerson; Sharman Mailloux Sosa; Brad Fringer; Steven Sinofsky

Subject: Please welcome the XAML platform team to Windows!

We’re pleased to announce the transition of the XAML platform team from the Developer Division to the Windows team. While the team has been working side-by-side with the Windows team for the entire project, this step brings them into our team formally.

The team will continue their work on Windows 8 as planned and will join our Developer Experience (DEVX) team. This transition allows us to bring together our platform development team in a single-management structure.

The dev, test, and pm leaders who will be leading the team reporting to AlesH, YvesN, and LindaAv are:

  • Sujal Parikh, Development Manager
  • Eduardo Leal-Tostado, Test Manager
  • Joe Stegman, Group Program Manager

The leads and individuals joining our team are receiving this mail and have received communication on next steps.

These changes in leadership and organization are effective today. For the purposes of finishing out the fiscal year and the performance review process the team will operate under the existing management structure.

There will be an informal Q&A session today to welcome everyone and answer any questions that folks might have.
– XAML team welcome – 2:00-3:00 in building 37/1701Please join me in welcoming these folks to our organization! Julie

Somewhat may be related: Non-iPad tablet vendors likely to launch new Wintel-based models to compete with Apple in 2012 [June 24, 2011]

Intel and Microsoft are jointly touting a new Wintel-based platform for tablet PCs, raising hopes among non-iPad tablet PC vendors that they may be able to compete more effectively with Apple in the segment in 2012 with models other than ARM/Android-based products, according to industry sources.

Most non-iPad table PC vendors have been frustrated recently due to lower-than-expected performance of their tablet PCs built with ARM/Android. While attributing the slow sales to the instability of Android and the strong brand image that Apple enjoys, some vendors have also begun mulling new strategies to strengthen their competitiveness.

Knowing the demand from tablet PC vendors, Intel and Microsoft have recently revealed a roadmap for their Wintel platform to production partners, said the sources, noting that the new platform will come with a less than 5W low-power CPU from Intel paired with Microsoft’s Windows 8 OS.

While Intel is also expected to lower prices for its new CPUs, tablet PC vendors also hope that the new Wintel platform will help them tackle the compatibility issues found between Android 3.0 and 3.1.

June 14-21:
Premature cries of Silverlight / WPF skill loss. Windows 8 supports all programming models [by David Burela, June 14, 2011]

A few people have been digging into the Windows 8 Milestone 3 leak and peeking into the UI framework and .dlls that exist. The most vocal of these have been @JoseFajardo and people in this forum thread http://forums.mydigitallife.info/threads/26404-Windows-8-(7955)-Findings-in-M3-Leak

What people have found so far is that while yes it is possible to create applications using HTML + Javascript, there is a whole new framework laying underneath that can be programmed against by almost any language / framework.

The first piece of the puzzle comes from the new application model for creating applications. There are a number of codenames here that need to be sorted out

  • DirectUI: The underlying framework that creates, draws the visual elements on the screen.
  • Jupiter: The new packaging format of applications on Windows 8. Allows apps to be written in language of choice.
  • Immersive applications: Current theory is that these are apps that execute within the ‘new shell’ in windows 8. And are aware of being split paned and resized. Like was shown with the RSS feed reader.

Direct UI

Direct UI has been around since Windows Vista days. Previous is seemed to be focused around UI basics for the OS such as theming app windows in the ‘new vista style’ vs. classic theming in WinXP. http://blog.vistastylebuilder.com/?tag=directui

Now it seems that Direct UI is being overhauled to have additional functionality to load XAML applications, new animations, etc.

Jupiter

interesting rumor fact : WP8 rumored to be codenamed Apollo, and Apollo is the son of Jupiter :) Jupiter being the new UI framework of Win8
http://twitter.com/#!/josefajardo/status/78826337250451457

…Jupiter is shaping up to be a very very lean SL/WPF implementation
http://twitter.com/#!/josefajardo/status/79423110755008512

…your SL/WPF skills will be invaluable for DirectUI apps, and you get a new framework that is seriously lean!!!
http://twitter.com/#!/josefajardo/status/79425349938712577

DirectUI.dll is basically Silverlight (agcore.dll) ported to Windows/WinRT
http://forums.mydigitallife.info/threads/26404-Windows-8-(7955)-Findings-in-M3-Leak?p=441627#post441627

Jose Fajardo has been a great source of information on Windows 8 leaks. From information he has dug up, as well as information on the forums, it seems that the new Jupiter programming API is a mashup between WPF & Silverlight.

While the new Jupiter programming model may not be a direct continuation of WPF or Silverlight it does seem to have a lot of code from both technologies. Jupiter instead seems to be a ‘Next generation’ XAML based framework. A framework that can be targeted against by all main current languages used by the typical .Net developer (C#, HTML, etc)

*speculation* This could be because of the calls from the development community to make WPF & Silverlight more aligned. Perhaps we’ll see an updated ‘Silverlight’ framework when Windows Phone 8 is released that is compatible with Jupiter.

Creating applications with Jupiter

As further evidence that Jupiter applications can be created with your language of choice, and that it has roots in Silverlight, here are some examples of how to create applications.

C# & XAML

Here is an example of using C# to invoke a new Jupiter based application. The really interesting thing to notice here is that the loading screen has the iconic Silverlight loading animation!

C++

Example of an application being created in C++ with a single call to CreateImmersiveWindowFunc

HTML + Javascript

There are some initial attempts at getting HTML working with the new frameworks. The apps and manifests have been created, but a few more hooks may be required to get a fully working version
http://forums.mydigitallife.info/threads/26404-Windows-8-(7955)-Findings-in-M3-Leak?p=446552&viewfull=1#post446552

There are mentions that you can hooks into Direct UI through the COM hooks from Javascript. And also that you may be able to use Direct UI XAML + Javascript. Similar to how Silverlight was done in the original Silverlight version 1.

Immersive applications

There is some confusion over the distinction between a “Jupiter app” and an “Immersive app”. Immersive apps require a call to CreateImmersiveWindow and can make calls to the new immersive namespace

Immersive applications are ones that were shown to live inside of the new Windows 8 shell. Examples of functions that an immersive app can do can be seen with the RSS reader app. When it was docked and resized, it knew to display its data in a different format.

  • Classic / Jupiter applicationswill run in the ‘classic windows’ desktop view that was seen when they fired up excel
  • Immersive applications will be embedded within the new shell

Will this work for existing applications?

There is evidence that existing applications can be wrapped up in the new packaging format.

WindowsStore is basically written in C++ and leverages Windows Runtime. HTML5/JavaScript is just a (very very) thin layer for the interface
http://forums.mydigitallife.info/threads/26404-Windows-8-(7955)-Findings-in-M3-Leak?p=442463&viewfull=1#post442463

So while existing applications may not run with the new Direct UI framework, it seems they will still be able to be packaged and distributed through the Windows 8 App store. This was discovered by Long Zheng a few months ago.

The AppX format is universal enough so it appears to work for everything from native Win32 applications to framework-based applications (WPF, Silverlight) and even *gasp* web applications. Games are also supported.
http://www.istartedsomething.com/20110405/first-look-at-the-future-of-application-deployment-on-windows-8-appx/

Conclusion

While Microsoft only showed off the HTML hooks into Jupiter, I am a LOT more excited about the upcoming XAML based framework.

If you are an existing WPF, Silverlight or Windows Phone 7 developer, it seems that your XAML based skills will carry across fine to the new development framework on Windows 8.

My thoughts are that Microsoft announced that applications can be created in HTML in the same way that they announced it in WindowsXP with active desktop, and then again in Vista with “HTML based sidebar gadgets”. It was a way of saying “hey you can use your existing web skills to create applications on Windows 8.
And that Microsoft plans on unveiling the new Jupiter SL/WPF hybrid framework for all of the “Real developers” at BUILD in 3 months.

riagenic [Scott Barnes, the harsh critic being a previous insider, see much below] Says:
June 14, 2011 at 7:13 pm

Hmmm… my memory is flooding mah brain with “remember…” moments… Before I left the team etc I remember hearing the windev teams wanted to put a 3rd Animation framework on the market. At first we laughed and ignored it with “oh great, what well need…a third option to confuse the already converted..”

Now thinking on it more, me thinks its this mystery framework coming to haunt us all. Now, i’m thinking this concept has existed but was already ported across to the XAML way of life around Windows 7 timelines (memory is sketchy on this one). If that’s correct then i think this is an official code-reset on WPF/Silverlight but with reduced capabilities (ie less the bloat).

Question is how mature is it compared to the two? it’s all well and good to throw a FILE->NEW->UX Platform onto the table, but if it lacks parity with the existing? what have we gained?….performance?…i’ll wait until i see how the fundametals found in most photoshop effects filters gets applied here and performs under what i call “developer-art load”….lots of glows, dropshadows and crazy ass animations..

Win8 M3 (7955) findings relevant to Managed .net & WPF/SL developers [[Jose Fajardo] June 14-17, 2011]

[Forum discussion on comparing WPF UIElement, Silverlight UIElement, WP7 Silverlight UIElement and WinMD(DirectUI)]

@vbandi András Velvárt
Don’t worry abt Silverlight! Jupiter has dep props, similar API & layout logic, RenderTransform, UIElement, etc http://bit.ly/mdL06i [Win8 M3 (7955) findings relevant to Managed .net & WPF/SL developers]
16 Jun via MetroTwit

@vbandi András Velvárt
After analysing http://bit.ly/mdL06i , Jupiter SEEMS to me like a customized Silverlight for Win8. Much like SL 4 WP7, but more custom.
16 Jun via MetroTwit

jmorrill Jeremiah Morrill
@josefajardo @markmacumber The other hard part is these guys are reverse engineering, so they might be looking at some private impls.
16 Jun

josefajardo Jose Fajardo
@jmorrill @markmacumber exactly, they could be doing things with the beta bits that it was never intended to do. Wrong assumptions 😉

16 Jun
@vbandi András Velvárt
@josefajardo @jmorrill @markmacumber Still better than burying an entire technology based on half a sentence. 🙂
16 Jun via MetroTwit

Continuation of that: Win8 M3 (7989) findings relevant to Managed .net & WPF/SL developers [[Jose Fajardo] June 19-24, 2011]

SilverlightWPF [Jose Fajardo] 21 Jun 2011 11:27 AM

Quote Originally Posted by NaiveUser View Post

  • God, this article got so many things wrong, or I should say I beg to differ so here is my take
    http://www.zdnet.com/blog/microsoft/…-trenches/9738 [Under the Windows 8 hood: Questions and answers from the trenches [by Mary Jo Foly in ZDNET, June 20, 2011]]
  • I guess there are two possible meanings for ‘Jupiter’, it could be the DirectUI.dll, or, it could be the whole api framework that exposed by WinRT/WinMD, includes DirectUI.dll and Windows.*.dll and some more. so basically Jupiter == DirectUI eitherway.
  • essentially Windows Runtime is just ‘Modern COM’, which is just an interface for exposing code. its not an actual ‘runtime library’ like CLR. I think you can expose code written with any ‘runtime library’ as WinRT components, just like you can write COM components in C/VC++/VB6/Delphi/.NET/etc.
  • DirectUI applications live in a HWND with a class called ‘JupiterWindowClass’ and a caption ‘Jupiter Window’, personally I think this IS strong ‘correlation’ betwwen Jupiter and DirectUI. and, as far as I can see there is ‘no direct correlation’ between DirectUI.dll and the old ‘DirectUI’ in dui70.dll which uses the ‘duixml’ markup.
  • and I have never seen any connections between SLR/WCL and ‘everything else’. wcl*.dll exposed as WinRT ? where ? Windows Runtime is the marketing name for the SLR ? where does that come from ?

[Jose Fajardo:]

Jupiter could be an entire ecosystem too, could be the tooling + api that goes into creating jupiter apps.

Jupiter could be the next marketing buzz world, like “Silverlight” was!

Who the hell knows! I know I’m not confident enough to say that Jupiter==DirectUI!

Nor am I confident in saying WindowsRuntime is COM version next..

Regardless it’s all interpretation until MS come out and explain themselves.

Power to you if you can conclude all this, personally I only talk about things i know are factually correct that I’ve chased down to registry settings, code in exe’s/dll’s, or reproduced in code myself.

June 1 – June 3 and 6:
TINY FACTUAL INFORMATION FROM MICROSOFT
(say just HTML5 for now, not a bit more)

ilyen világos megfogalmazásokban én ezt mondanám:

– amit láttunk és hallottunk a demókban az olyan UX funkcionalitás, ami HTML5 és JavaScript ALAPÚ fejlesztési környezetből érhető el

– azt is láttuk, hogy amikor “az Interneten végzendő teendőkhöz nincsen ehhez az új UX környezethez szabott (“tailored”), új stílusú (“new style”) alkalmazásunk”, akkor az IE9-hez képest “touch first”-re áttervezett IE10-et használjuk

– ebben ugyanúgy vannak “odatűzött” webhelyek (“pinned sites”, vagyis URL-ekkel azonosított webalkalmazások vagy webhelyek), de vagy a Start Screen csemperendszerében vagy egy teljesen új kialakítású, amennyire meg tudom ítélni dinamikusan megjelenő (pl. “Frequent” illetve “Pinned” listák a képernyős billentyű felett) task bar-on helyezkednek el

– az új UX környezethez szabott (új stílusú) alkalmazások a Windows eszközökhöz (facilities) — tehát a natív platform eszközökhöz — is hozzáférhetnek, tehát nincsen két shell, csak egyetlen shell

– ugyanakkor arra a kérdésre, hogy miért nem írja át az Office részleg alkalmazásait erre az új UX környezetre, a konkrét válasz: “Valamit lehetséges, hogy tesznek a jövőben, most azonban az volt a célunk, hogy megmutassuk, nem kell az embereknek a meglévő alkalmazásaikat, melyeket jól ismernek, feladniuk ahhoz, hogy egy mobilabb form factorhoz jussanak. Vagyis az embereknek egy billentyűzetet kell csatlakoztatniuk és használhatják [régi alkalmazásaikat] ugyanúgy, mint eddig.”

The factual details:

Metro styled new entertainment experience on Xbox 360 [June 6, 2011]

Next-generation cloud client experiences based on the Metro design language [Jan 24, 2011]

Metro Design Language of Windows Phone 7 [on-line tutorial from Microsoft, Dec 5, 2010]

Building “Windows 8” – Video #1 [June 1, 2011]

– related press release: Previewing ‘Windows 8’ [June 1, 2011

… a few aspects of the new interface we showed today:

  • Fast launching of apps from a tile-based Start screen, which replaces the Windows Start menu with a customizable, scalable full-screen view of apps.
  • Live tiles with notifications, showing always up-to-date information from your apps.
  • Fluid, natural switching between running apps.
  • Convenient ability to snap and resize an app to the side of the screen, so you can really multitask using the capabilities of Windows.
  • Web-connected and Web-powered apps built using HTML5 and JavaScript that have access to the full power of the PC.
  • Fully touch-optimized browsing, with all the power of hardware-accelerated Internet Explorer 10.

… also talked a bit about how developers will build apps for the new system. Windows 8 apps use the power of HTML5, tapping into the native capabilities of Windows using standard JavaScript and HTML to deliver new kinds of experiences. These new Windows 8 apps are full-screen and touch-optimized, and they easily integrate with the capabilities of the new Windows user interface. There’s much more to the platform, capabilities and tools than we showed today.

… we have much more to reveal at our developer event, BUILD (Sept. 13 – 16 in Anaheim, Calif.)

Microsoft’s Steven Sinofsky, live from D9 [June 1, 2011]

… Oh yeah, we built these in house, but we’re giving devs APIs and an SDK based on HTML5 and Javascript that allows them to create apps like this. We have lots of new tools, but still you can connect to our file tools, etc. … Apps can connect to each other. It’s not just apps alone, it’s applications connecting to each other. … You design for touch, and then we translate the touch commands to mouse and keyboard. …

Microsoft’s Windows 8 Demo From D9 (Video) [June 1, 2011]

Microsoft Unveils ‘Windows 8’ to World on 2011 Computex in Taiwan [June 2, 2011]

– the same with Silverlight Smooth Streaming video: Microsoft Unveils “Windows 8” to World
– the related Microsoft press release on 2011 Computex in Taiwan: Microsoft Previews ‘Windows 8’

Windows 8 NUI GUI Preview Video Shoots Past 2 Million Views the First Day [June 3, 2011]

… everything that users see in the demo videos will actually make it in the RTM Build of Windows 8, otherwise, Steven Sinofsky, President, Windows and Windows Live Division would not have allowed it to be made public, per the translucency communication strategy he implemented even before Windows 7.

In the end, I think it’s a safe bet to expect Sinofsky to underpromise and overachieve with Windows 8, just as he did with Windows 7.

Office and other apps:

Why not the Office team will rewrite the Office into that kind of aproach?
[Walt Mossberg, [6:45-6:51]]

They may do something in the future but we don’t think people should give up everything they know online just to get to a more mobile form factor. So people can plug-in a keyboard and use just like they would use otherwise.
[Julie Larson-Green [6:51-7:06]]

Windows 8: It’s the Applications, Stupid! [June 3, 2011]

It’s a huge question. While Larson-Green said that the current version of Office would behave in touch-friendly fashion in Windows 8, it’s obvious that it’s not going to feel like it was written for the new interface. (You could tell that when she fumbled with Excel as she tried to drag it off-screen with her fingertip.)

I imagine that the real answer to Walt and Kara’s queries is that yes, of course, Microsoft is going to reimagine Office for Windows 8.  But even then, it’s not obvious whether the company is going to give Office a truly touch-centric interface as the default. (Sounds hugely risky and probably impossible to do well–all the Office apps are rife with features that will never work well without a mouse and keyboard.) Or mirror what it’s doing with Windows 8 and give Office two different interfaces. (That also sounds extremely tricky.) Or do something akin to what Apple did with its iWork suite, and build a separate version of Office with fewer features and a wholly new interface. (That sounds like it could make sense.)

Every other significant software developer is going to have to deal with similar questions. It’s not yet clear what the right answers are–it’s possible that Windows’ new look will be a bust and it’ll be silly to invest energy in supporting it. And the right answers will be different for different companies. But ignoring Windows 8 won’t be an option.

Could You Turn A Windows 8 Smartphone Into A Windows 8 Computer? [June 2, 2011]

I caught Sinofsky after his D9 talk and asked — would Windows 8, the full-blown operating system, be running on future phones?

Sinofsky smiled, and smiled big, but he only said that’s not something Microsoft has announced yet. So, we wait to see.

What if it happens? Getting to that unification “first” doesn’t necessarily mean that Microsoft somehow “wins” in doing so. For one, would it really run that well on phone-sized devices? That remains to be seen.

For another, it also means that Windows 7 Phone users would be upgrade-orphaned. The apps they have for that platform probably wouldn’t run on Windows 8 devices.

BUILD:

Does this [BUILD] event replace PDC this year and in the future?
Dr. Know said on June 2, 2010

BUILD isn’t a replacement of the PDC but a new event that takes a broader view of a developer community that now extends far beyond the realm of just “pro developers”. From hardware, to the web, to software and the PC … BUILD is the key developer event you should attend in 2011 (there won’t be a PDC this year).
Jennifer Ritzinger [Microsoft] said on June 3, 2010

BUILDing a bright future [June 1, 2011] (emphasis is mine)

… At BUILD, Microsoft will show off the new app model that enables the creation of web-connected and services-powered apps that have access to the full power of the PC.

The conference name, BUILD, reflects a call to action for the more than one hundred million developers driving the pace of technology: build experiences with the next version of Windows that will transform the computing experience for billions of people across the globe.  …

Today, everyone can be a developer; the most tech-savvy generation we’ve ever seen is fueling demand for new tools and technologies.  Many of the developers building web sites and apps that make an impact have no formal education in computer science or engineering.  BUILD will be a gateway to new opportunity for all developers.

The professional developer community continues to be a vital part of the Microsoft ecosystem.  We value the longstanding and deep relationship with this group and will continue to engage with this important audience in a way that best meets its needs. For these developers, BUILD connects Microsoft’s past to Microsoft’s future.

June 1 – June 6:
UPHEAVAL OF ENORMOUS PROPORTIONS (or more questions than answers)

  • Food for harsh criticism because of absolutely no communication for the previous dev stories [ENORMOUS LENGTH]
  • From a quite opinionated but quite unsatisfied previous insider: http://twitter.com/#!/MossyBlog[ENORMOUS LENGTH]

    Food for harsh criticism because of absolutely no communication for the previous dev stories:

    Windows 8: A missed opportunity. [June 3, 2011]

    So the rumors were true. Microsoft was planning to radically reimagine Windows as we knew it. It would feature a modern, fluid touch interface, it was to be heavily inspired by Metro on Windows Phone, and it was to have an app store.

    Good. Right? Not exactly. Its a bitter sweet outcome, because another rumor ended up being true. This one started by Scott Barnes, the sometimes controversial, seemingly always right former Silverlight PM. This rumor said that there was an internal struggle inside Microsoft, and the factions at war were the .NET/Wpf/Silverlight heads versus the Windows division heads.

    The war is over. We lost. In an ironic, but telling turn of events, hot of the heels of the Mono guys forming a start up based around .NET, the inventors of the technologies themselves have seemingly given up on the platform.

    Sounds dramatic, even outlandish right? Well so did the rumors about Silverlight, WPF, et all’s death. Yet here we are, and its sad because it represents a monumental missed opportunity.

    Consider the following:

    Microsoft had rare opportunity to throw backwards compatibility to the wind and make a clean cut. A fresh start. A new Windows.

    Microsoft had the chance then to simplify and unify their developer story. Slim down .NET, remove the legacy cruft (Winform, older depreciated APIs) and simply call it “Silverlight”. Make it the de facto development platform on Windows, like it is on Windows Phone.

    Say to developers: Here’s our Windows App store. The ONLY way to get published on the app store is to write a cross platform Silverlight application. This application will work on x86, x64, and ARM based environments. Its resolution independent, completely hardware accelerated, and secure.

    You do many things at once: You simplify, unify, and move forward your developer story. You ensure a verifiable, secure execution environment on Windows 8. You solve the cross platform problem. You KEEP YOUR DEVELOPERS HAPPY. People who have invested years into your technologies do not appreciate being essentially shown the door.

    Its fine to embrace HTML5/JS, if web developers want to cause themselves pain, then hey, thats them. Do NOT subject your loyal, devoted, armies of developers to the horrors of the web platform.

    Microsoft: WTF?

    We dont just need to #fixwpf, we need to #fixwindows8.

    Microsoft refuses to comment as .NET developers fret about Windows 8 [Tim Anderson, June 3, 2011]

    There is a long discussion over on the official Silverlight forum about Microsoft’s Windows 8 demo at D9 and what was said, and not said; and another over on Channel 9, Microsoft’s video-centric community site for developers.

    At D9 Microsoft showed that Windows 8 has a dual personality. In one mode it has a touch-centric user interface which is an evolved version of what is on Windows Phone 7. In another mode, just a swipe away, it is the old Windows 7, plus whatever incremental improvements Microsoft may add. Let’s call it the Tiled mode and the Classic mode.

    Pretty much everything that runs on Windows today will likely still run on Windows 8, in its Classic mode. However, the Tiled mode has a new development platform based on HTML and JavaScript, exploiting the rich features of HTML 5, and the fast JavaScript engine and hardware acceleration in the latest Internet Explorer.

    Although D9 is not a developer event, Microsoft did talk specifically about this aspect. Here is the press release:

        • Today, we also talked a bit about how developers will build apps for the new system. Windows 8 apps use the power of HTML5, tapping into the native capabilities of Windows using standard JavaScript and HTML to deliver new kinds of experiences. These new Windows 8 apps are full-screen and touch-optimized, and they easily integrate with the capabilities of the new Windows user interface. There’s much more to the platform, capabilities and tools than we showed today.

    Program Manager Jensen Harris says in the preview video:

        • We introduced a new platform based on standard web technologies

    Microsoft made no mention of either Silverlight or .NET, even though Silverlight is used as the development platform in Windows Phone 7, from which Windows 8 Tiled mode draws its inspiration.

    The fear of .NET developers is that Microsoft’s Windows team now regards not only Silverlight but also .NET on the client as a legacy technology. Everything will still run, but to take full advantage of Tiled mode you will need to use the new HTML and JavaScript model. Here are a couple of sample comments. This:

        • My biggest fears coming into Windows 8 was that, as a mostly WPF+.NET developer, was that they would shift everything to Silverlight and leave the FULL platform (can you write a Visual Studio in Silverlight? of course not, not designed for that) in the dust. To my utter shock, they did something much, much, much worse.

    and this:

        • We are not Windows developers because we love Windows. We put up with Windows so we can use C#, F# and VS2010. I’ve considered changing the platform many times. What stops me each time is the goodness that keeps coming from devdiv. LINQ, Rx, TPL, async – these are the reasons I’m still on Windows.

    Underlying the discussion is that developers have clients, and clients want applications that run on a platform with a future. Currently, Microsoft is promoting HTML and JavaScript as the future for Windows applications, putting every client-side .NET developer at a disadvantage in those pitches.

    What is curious is that the developer tools division at Microsoft, part of Server and Tools, has continued to support and promote .NET; and in fact Microsoft is soon to deliver Visual Studio LightSwitch, a new edition of Visual Studio that generates only Silverlight applications. Microsoft is also using Silverlight for a number of its own web user interfaces, such as for Azure, System Center and Windows InTune, as noted here.

    Now, I still expect that both Silverlight and native code, possibly with some new XAML-based tool, will be supported for Windows 8 Tiled mode. But Microsoft has not said so; and may remain silent until the Build conference in September according to .NET community manager Pete Brown [response #1 to the Silverlight Forum discussion [06-02-2011 6:44 PM]]:

        • You all saw a very small technology demo of Windows 8, and a brief press release. We’re all being quiet right now because we can’t comment on this. It’s not because we don’t care, aren’t listening, have given up, or are agreeing or disagreeing with you on something. All I can say for now is to please wait until September. If we say more before then, that will be great, but there are no promises (and I’m not aware of any plans) to say more right now. I’m very sorry that there’s nothing else to share at the moment. I know that answer is terrible, but it’s all that we can say right now. Seriously.

    While this is clearly not Brown’s fault, this is poor developer communication and PR from Microsoft. The fact that .NET and Silverlight champion Scott Guthrie is moving to Windows Azure is no comfort.

    The developer division, and in fact the whole of Server and Tools, has long been a bright spot at Microsoft and among its most consistent performers. The .NET story overall includes some bumps, but as a platform for business applications it has been a remarkable success. The C# language has evolved rapidly and effectively under the guidance of Technical Fellow Anders Hejlsberg. It would be bewildering if Microsoft were to turn its back on .NET, even if only on the client.

    In fact, it is bewildering that Microsoft is being so careless with this critical part of its platform, even if this turns out to be more to do with communication than technical factors.

    From the outside, it still looks as if Microsoft’s server and tools division is pulling one way, and the Windows team the other. If that is the case, it is destructive, and something CEO Steve Ballmer should address; though I imagine that Steven Sinofsky, the man who steered Windows 7 to launch so successfully, is a hard person to oppose even for the CEO.

    Update: Journalist Mary Jo Foley has posted [June 6] on what she “hears from my contacts” about Jupiter:

        • Jupiter is a user interface library for Windows and will allow developers to build immersive applications using a XAML-based approach with coming tools from Microsoft. Jupiter will allow users a choice of programming languages, namely, C#, Visual Basic and C++.

    Jupiter, presuming her sources are accurate, is the managed code platform for the new Windows shell – “Tiled mode” or “Tailored Apps” or “Modern Shell – MoSH”; though if that is the case, I am not sure whether C++ in this context will compile to managed or unmanaged code. Since Silverlight is already a way to code using XAML, it is also not clear to me whether Jupiter is in effect a new Windows-only version of Silverlight, or yet another approach.

    Microsoft needs to tell Windows 8 developers now about ‘Jupiter’ and Silverlight [Mary Jo Foley, June 6, 2011]

    I’ve blogged before about the XAML layer that Microsoft is building for Windows 8 as part of its “Jupiter” initiative. Yes, it still exists, I hear from my contacts. And yes, this will enable support of native Silverlight applications. (Does this mean Windows Phone apps written using Silverlight will be able to run on Windows 8 with no/few tweaks? I don’t know.)

    Microsoft is still going to support Silverlight with Windows 8, and not only as a browser plug-in, my sources say.

    At the 50,000-foot level, Microsoft wants to find a way to reinvigorate the Windows-development ecosystem. (I believe that’s one reason the Internet Explorer team has been talking all that “native HTML” nonsense. They really mean they’re trying to get developers to write HTML/JavaScript apps that use IE’s hardware acceleration for the “best” HTML experience.)

    At the more granular and immediate level, Jupiter is the way that Microsoft is planning to get developers to write new “immersive” applications for Windows 8 that will use the IE 10 rendering engine while using the .Net and Silverlight technologies they already know. Jupiter is aiming to provide these developers with a managed code XAML library, so that developers can access the sensors, networking and other Windows 8 elements in a way to which they’re accustomed.

    Applications built using Jupiter won’t be targeting the “classic” mode/shell that Microsoft showed off last week during its Windows 8 preview, I hear. They’ll be the same class of immersive apps targeting the new Modern Shell (MoSH) that Microsoft will be writing itself and/or trying to convince others to write using HTML5 and JavaScript.

    It definitely seems Microsoft’s ultimate goal is to wean developers off Silverlight and to convince them to use HTML5 and JavaScript to write new apps for Windows, going forward. But until there’s better tooling for HTML5 (beyond what Microsoft provides via the F12 HTML tools in Internet Explorer), it seems the Softies are going to support .Net and Silverlight via new versions of Visual Studio, the .Net Framework and Expression.

    I believe Jupiter is key to enabling Microsoft to continue to insist that Silverlight’s not dead (as far as a development platform) — at least for now. But anything that’s not a new Windows 8 “immersive,” modern application, going forward, is now going to be considered “legacy,” from what I can tell.

    All of what I’ve said here is from sources who have asked not to be identified, not from Microsoft officials associated with Microsoft’s Windows or Developer Division. Like many devs I’ve heard from, I don’t believe Microsoft can’t afford to wait three more months to let its developer base know what its intentions are. So far, however, ill-advised silence seems to be the Softies’ plan….

    [Pete Brown had a numerous other responses on that thread [Windows 8 apps going html5, wtf [from 06-01-2011 8:06 PM to 06-03-2011 3:23 PM when locked by Pete Brown] as until 3 days later having enormous visibility of 10,030,100 views] but being just kind of moderation responses, including – not a usual thing – editing responses by other for “non-civil” words, and finally closing the first thread and responding to another one with same topic [Windows 8 apps going html5, wtf – part 2 [from 06-03-2011 3:46 PM still on] as until 3 days later having large visibility of 1,118,657 views].

    Besides Pete Brown’s responses the enormous bad publicity caused by that huge developers visibility will cost Microsoft quite a lot as Steve Barns nicknamed MossyBlog [See also his other responses after Pete Brown’s responses] remarked quite well on twitter:

    @MossyBlog Scott Barnes: 900k views of just “Microsoft you suck” forum warfare.. thats over 500k eyeballs that Microsoft has to repair in min 2 years.. #fail   8 hours ago via web

    replies ↓
    josephcooney Joseph Cooney by rickasaurus @ @MossyBlog The stats on this page say it’s 9M going on to 10M http://forums.silverlight.net/forums/17.aspx?PageIndex=3 8 hours ago

    rickasaurus Richard Minerich @ @MossyBlog We had an internal meeting today to discuss if we should discontinue all Silverlight development. It’s that bad.

    rickasaurus Richard Minerich @ @MossyBlog Oh yeah, plus all of the Kinect hate they’re getting from E3  8 hours ago

    @MossyBlog Scott Barnes @rickasaurus oh? i’ve missed reading the E3..on my afternoon todo list… whats the gist of it? 8 hours ago via web

    replies ↓

    rickasaurus Richard Minerich @ @MossyBlog Mostly just that hardcore gamers don’t give a toot about Kinect 🙂 8 hours ago

    MossyBlog Scott Barnes @ @rickasaurus i’d prefer to see more info around Kinect beyond gaming and into windows market(s)..well whats left of it post win8 lol 8 hours ago

    MossyBlog Scott Barnes  @  @rickasaurus well Kinect as a game platform is really a wii style approach to it.. hardcore gamers arent really a good mkt for it  8 hours ago

    @rickasaurus Richard Minerich @MossyBlog Sure, but E3 is a hardcore gamer conference, and MS was all Kinect! Kinect! Kinect! Kineeecccttttttt! 8 hours ago via TweetDeck

    replies ↓

    MossyBlog Scott Barnes @  @rickasaurus heheh well in Microsoft you ride the new shiny object until it loses its appeal..so they are in the peak of the kinect orgy  8 hours ago

    rickasaurus Richard Minerich @ @MossyBlog That’s the MS navel gazing culture for you. They’re so myopic and it drives me insane to watch. 8 hours ago

    in reply to ↑

    @KristoferA KristoferA  @MossyBlog @rickasaurus I presume there will be a JavaScript library for Kinect integration shipping with Win8… HTML + Kinect = Win 🙂 9 hours ago via web

    replies ↓

    MossyBlog Scott Barnes   @  @KristoferA @rickasaurus i can’t wait to combine jQuery and Kinect..it will be awesome… yay.. #celebratemediocrity   8 hours ago

    rickasaurus Richard Minerich   @   @KristoferA Why not :). That could make for some cool surfing.   8 hours ago


    @MossyBlog Scott Barnes Sinofsky’s team need to be fired. thats my thoughts. 8 hours ago via web

    replies ↓

    VicKlien Vic Klien @ @MossyBlog – Any counterweights to team-Sinofsky internally? Assuming ScottGu and Soma would have other ideas, I guess they’re outranked. 7 hours ago

    MossyBlog Scott Barnes @ @VicKlien well i always thought @scottgu and team-sinfosky were two dueling titans internally anyway..but bobmu left, scotts in azure..so.. 7 hours ago

    VicKlien Vic Klien @  @MossyBlog – The current when-to-reveal issue aside, do we really know Soma and ScottGu don’t also support promoting HTML5/JS above .NET?  7 hours ago

    MossyBlog Scott Barnes @ @VicKlien Of course they support it… just like i support <insert your belief system> when you have a gun to my head 🙂 7 hours ago


    @MossyBlog Scott Barnes   9 million is more than that site gets in a year almost… HOLY FUCK… 9 million people all seeing “Silverlight is kinda dead” undercurrent 8 hours ago via web

    replies ↓

    traskjd John-Daniel Trask  @ @MossyBlog Bet all the advertisers paying per impression on the SL forum are getting great ROI… 8 hours ago

    josephcooney Joseph Cooney @  @MossyBlog plus the follow-up post (which is presumably what you saw) is nearly at 1M. That’s a lot of discontent. 8 hours ago

    Pete_Brown Pete Brown  @  @MossyBlog @josephcooney And there’s an open letter thread with 100k views. Smaller threads too, mostly OT, but I’m letting them stay  8 hours ago

    in reply to ↑

    @MossyBlog Scott Barnes   I feel for guys like @Pete_Brown who later have to clean this shit up. Pete needs to clone himself fast… /cc @josephcooney

    @MossyBlog Scott Barnes

    I am so glad I’m not a Microsoft Evangelist still.. i mean..fark me.. talk about walking into the lions den. 8 hours ago via web

    @MossyBlog Scott Barnes     10 million pageviews so lets assume 50% of that is uniques5 million ppl around the world seeing “HTML5 vs JS is the future” undercurrents   8 hours ago via web

    replies ↓

    malcolmsheridan Malcolm Sheridan @ @MossyBlog I think you should stop computing and take up gardening! 8 hours ago


    @MossyBlog Scott Barnes      There goes 3 years+ of hard work around Silverlight branding… nice one Sinofsky you jackass   8 hours ago via web

    replies ↓

    jcdickinson Jonathan C Dickinson  @  @MossyBlog the whole Win8 + HTML5 thing is easily fixed: <object data=”data:application/x-silverlight-2,”… 🙂  7 hours ago


    @MossyBlog Scott Barnes       windows internal politically objectives was to make Silverlight / .NET fail.. Mission accomplished.. you just undid 3 years of work in ~1wk 8 hours ago via web

    replies ↓

    jtango18 Justin Taylor  @  @MossyBlog I think you overestimate the liklihood of MS devs walking away from the platform.  8 hours ago

    mstrobel Mike Strobel  @  @MossyBlog the Windows team really doesn’t have the clout to effect change of this magnitude; devs aren’t going to abandon .NET for HTML. 8 hours ago

    @MossyBlog Scott Barnes   @mstrobel well that and lets just say we just sized the market of who they have to convince..5 million devs need to believe HTML5  8 hours ago via web

    @MossyBlog Scott Barnes 5million+ is now your baseline for html5 convince metrics msft in 2yrs need to say They have more than this in adoption  8 hours ago via Twitter for iPhone


    @MossyBlog Scott Barnes      What if the Blend team were working on a HTML5 design tool… what would you all say… 😀    8 hours ago via web

    replies ↓

    shrage Shrage Smilowitz    @  @MossyBlog Html 5 design tool? yea and they’re going to call it Microsoft FrontPage?   7 hours ago

    SilverlightMan Noah Addy  @  @MossyBlog I would love that idea!!! Spitting out Javascript code for HTML5 development is no fun!   7 hours ago

    lazycoder Scott Koon    @   @MossyBlog “Please stop” 8 hours ago

    KristoferA KristoferA   @  @MossyBlog If the new Win8 UI instead was C# + HTML5/MSHTML instead of HTML5+JS then I would be less sceptical about it8 hours ago

    kitron kitron   @   @MossyBlog They better be working on something like that.   8 hours ago

    mstrobel Mike Strobel  @   @MossyBlog Same thing I said to Blend: no thanks.    8 hours ago

    KristoferA KristoferA    @  @MossyBlog .net is strong on the language and framework side. UI design tools is only a tiny part of the dev story…  8 hours ago

    KristoferA KristoferA   @   . @MossyBlog HTML5 and the HTML DOM is *not* the weak part. JavaScript is. A C# compiler that emits JS would be a different story.   8 hours ago

    @MossyBlog Scott Barnes   @KristoferA its possible 😉 …but to what gain? XAML out..HTML5 in? ..what gain?  8 hours ago via web

    replies ↓

    KristoferA KristoferA  @  @MossyBlog You know that SL and WPF sucks performance wise. If IE can supply a rendering engine that can be used from .net then it is a Win   8 hours ago

    KristoferA KristoferA   @   @MossyBlog A good app framework (.net fx), a solid language (C#), and a good rendering engine is all I ask for. JS is not a C# replacement.   8 hours ago

    KristoferA KristoferA  @   @MossyBlog XAML to HTML5 would be status quo. Maybe better performance. But what I am saying is: the UI rendering is a tiny part of apps.  8 hours ago

    —————-

    mstrobel Mike Strobel  @  @MossyBlog Same thing I said to Blend: no thanks.  8 hours ago

    mabster Matt Hamilton   @   @mstrobel I was shocked at the number of hands (including mine) that went up at #mvp11 when asked who hand-codes XAML. /cc @MossyBlog     8 hours ago

    in reply to ↑

    @MossyBlog Scott Barnes   @mabster @mstrobel i stopped being shocked and it grew into frustration.. “if only there was a tool that did that for you?” hmmm.. 8 hours ago via web

    replies ↓

    mstrobel Mike Strobel   @ @MossyBlog @mabster I mean, would you use a tool that wrote C# code for you? I loathe Blend. Hand-coding w/ R# is so much better IMO.   8 hours ago

    mabster Matt Hamilton   @  @MossyBlog I’ll try Blend at some point I guess. Hand coding works really well for me. /cc @mstrobel   8 hours ago


    @MossyBlog Scott Barnes   Heh sinofsky gets on stage and suddenly 10m voices all vanish at once – starwars / sl forum joke Tehehehe  5 hours ago via Twitter for iPhone

    replies ↓

    redboltsnz Guy Robinson  by MossyBlog  @MossyBlog bottom line is D9 was about the end UX. Should never have talked about the technology unless they wanted to engage with devs3 hours ago

    in reply to ↑

    @MossyBlog Scott Barnes   @redboltsnz that’s actually a great insight… i agree! ..they should of just said “this is purty win8”..  3 hours ago via web

    Back to Pete Brown’s real responses: I will consider his first non-moderating response on that as his real response #2 (almost a whole day passed between those, he probably got permission from the above to really respond):]

    Pete Brown’s #2 response [06-03-2011 4:30 PM] (Microsoft Community Program Manager – WPF, Silverlight, XNA, Windows Phone, more) (emphasis is mine)

    That first link is a gizmodo article [Windows 8 and Its Incredibly Cool New Touch Interface [June 1, 2011]]. Nowhere in there is a microsoft person saying that HTML/Javascript are the exclusive way to write applications. It’s a new way, it’s an exciting way, and, let’s face it, a way that is likely to be hugely popular with web developers.

    News outlets make assumptions. I can’t respond to that, neither does MS PR for reasons I don’t entirely fathom.

    The press release shows only what we showed that day and is carefully worded to state as much. It doesn’t speak to Windows 8 as a whole.

    I’m not a PR person. I don’t know why we word things the way we do, or why we show certain things. I’m just asking folks not to make assumptions here (one way or the other) based on information we haven’t actually shared.

    We can’t say anything else until September. Trust me that the previous thread was visible at some of the highest levels inside Microsoft (one reason I edited to remove the trolls and insulting that was a problem and obscuring the message the thread was sending)

    To be very clear: I’m not saying anything here other than “wait for //build/” and our press release is the official word until you hear otherwise from PR or top Microsoft leadership. There are no promises being made here. I’m not stating support or lack of support for any specific technology or group of technologies.

    Pete Brown’s #3 response [06-03-2011 5:33 PM] (emphasis is mine)

    Guys, don’t make it personal. It’s heading down the same road as next time.

    Keep it to issues on topic. Keep it civil. Don’t be mean. Be respectful. Remember, we’re all peers here, not enemies.

    Pete Brown’s #4 response [06-03-2011 6:32 PM] (emphasis is mine)

    g.t.:

    We spent 2 years developing a WPF project, and after all what I have seen, I am defiantly going html5 + JavaScript.

    This makes zero sense to me and seems reactionary rather than a well-thought-out architectural decision.

    You saw that you can write WPF apps for Windows 8. “Existing apps will run”. TBD if they can use the new shell, but they do run in classic mode at a minimum.

    While I’ll be happy to be proven wrong, I’m going to go out on a limb here and say the majority of internal business applications are not going to make use of the new tile interface in a big way. Why? From my own informal surveys and 15 years in consulting (I’ve been at Microsoft just over 1.5 years), most business users, developers, and managers, are still stuck in “500 fields and a 100 column datagrid” mode when designing apps. It’s rare to find a team with a real UX pro involved up-front and who have the capability, skill, desire (and time/funding) to move beyond that. In addition, many businesses still run XP, or they run Windows 7 and will continue to do so for a long time. Windows 8 won’t be released for some time, and 7 is a very good OS with long legs. I’ve even seen businesses that require their users to stick with the classic Win2k style shell no matter what OS.

    That all said, we’re squarely targeting WPF at ISV type applications, and Silverlight at business developers. I’ve been saying that one for a while now. That has no bearing on what we’re doing for Windows 8. Whether or not you can target the tile interface using anything beyond HTML/JS/CSS is a question for the //build/ conference to answer.

    Silverlight 5 is still in progress. WPF v.next is still in progress. Both are scheduled for release. Both are real products with real features that real developers find really useful 🙂

    Finally, we don’t have the full story. Making future architectural decisions based on assumptions from demos is irresponsible. Saying we should tell you more does not change the fact that you are making a decision based on a very minimal amount of evidence.

    Pete

    Pete Brown’s #5 response [06-05-2011 1:52 AM] (emphasis is mine)

    GOD_G:

    In september I expect to see in Pete’s blog articles like “The Present of  Silverlight and WPF!” and “A lap around HTML5!”

    I’m not a good Javascript developer. I dabble from time to time just with my site, but I have other people on my team who are currently doing an awesome job covering that side (Jon and Joe). Plus, if you knew me or my history in the WPF and Silverlight community (I doubt you do given your newness here), I’m not really one for party-line messaging.

    History will be the only thing that shows what I do in September. Anything else is just additional speculation.

    Until then, fire away. Going after me is easy at the moment (as a community guy, I expect this), but unfortunately that’s doing nothing to further your purposes. I’m not offended, but I feel like if you’d apply that energy to a different approach, you might accomplish something.

    FWIW, With the exception of the few posts that came in after the thread lock in the old thread (*I* think there was a race condition there, but the site dev team doesn’t quite agree<g>), I haven’t deleted posts criticizing me or Microsoft, just those attacking other members, and none in this new thread so far.

    Pete Brown’s #6 response [06-05-2011 2:02 AM] (emphasis is mine)

    HephaistosX:

    “The interface is so new that applications will have to be re-written for it from the ground up, just like DOS applications had to be re-written for Windows. These new applications will have interesting qualities. For example, they’ll be written in either HTML5 or JavaScript”

    Unless it came directly from the mouth of Microsoft – specifically through our press releases, it’s not “fact”. It’s “speculation”.

    Unfortunately, that’s what news outlets do – it helps to pull in readers when they appear to be offering additional detail. They don’t have access to any more detail than the rest of the public.

    Pete Brown’s #7 response [06-05-2011 2:48 PM] (emphasis is mine)

    Light Crystal:

    I invested 3 years of my life to study C#, XAML and Silverlight framework, MVVM pattern to build games. 2 Years ago, it was a party, was all super happy times, just before the damn iphone take foot along the market. And now “ipèd” too. Apple and Google have no dev tools, so they leverage the standard one just to not be pitiful, and they have had success, unfortunately.
    Now, i’m ready to start a new company with a huge project, and i’m BLOCKED until September.

    Why are you blocked? Why does an operating system your customers won’t have for years block you from using tools that are out *now*? Silverlight 5 will be released before end of year, as promised. Nothing has changed there.

    While I know direction is very important for long-term planning, as developers we need to stop chasing the shiny ball and instead use what best serves us and our customers today. Keep an eye to what is in the future, but don’t block your current projects because of that.

    It’s like buying PC components. I’ve built every PC I’ve owned since my last and only boxed purchase: an IBM PS/1 286 (which itself followed the Commodore 128 I got for Christmas). Each time I do that, I have to make a decision as to what CPU/memory/motherboard etc. to purchase as there is *always* something better coming down the pike. Those better chips often mean different memory architectures and lots of other things. However, if I waited each time instead of using the best of what I had right then, I’d still be running that 286 I had before I built my first computer, a 486dx33.

    This is by no means a comment on how the message is being handled, nor am I downplaying the impact here. I totally understand what’s going on; I haven’t had enough Kool-aid to lose that 🙂

    As a former consultant for 13 years (where I did VB4,5,6, SQL Server, .NET, WPF, Silverlight and more) and internal IT guy for 4 years before that (doing lots of projects in a mix of VB3, Powerbuilder, Delphi, dBase, FoxPro, QBasic, and Borland C++ – when was the last time our portfolios were that diverse?), I’m just hoping to offer a little perspective. We should work with what we have today, and with what we know for sure is coming short-term, especially when all we have to go on otherwise is speculation.

    At its core, last week’s questions, votes, threads and more come down to:

    • What can we use to write Modern / Immersive applications in Windows 8
    • What’s going to run on tablets

    I’m not sure that either of those impact that vast majority of business developers in a real day-to-day way other than peace of mind (which is important, but not business critical). For sure there will be lots of app developers targeting the new stuff, but for most, it won’t come for quite a while. There’s the Windows release schedule, then the adoption schedule, then the internal IT adoption schedule (which is always way behind), then the ramp up on taking advantage of the new features of the OS.

    For a bit now, we’ve been saying “Silverlight for high-end media and business applications, HTML for broad reach and consumer-oriented stuff, Silverlight/XNA on phone, and WPF for ISV (big shrinkwrapped apps)”. I haven’t heard/seen anything that would make me change that recommendation.

    For the people who are quick to jump on “Silverlight is dead” at companies, I can’t help you there. Those folks were looking for any excuse. Every nugget of news that comes out gets reinterpreted as that, despite Microsoft having come out and explicitely stated several times that these technologies aren’t dead. We had a Silverlight firestarter 7 months ago, and despite the HTML-heavy messaging at MIX, we also had a bunch of Silverlight 5 sessions *and* the release of Silverlight 5 beta.

    And when things do change sometime in the future (eventually, everything has to change – nothing is forever, this is not a comment about anything short-term) you and your management should take a measured approach to transition to the new technology. This is no different than many other migrations. Heck, I’ve been trying for a while to get people to move from Windows Forms (a technology which is being maintained, but not enhanced) but folks want to stay there. When I give Silverlight talks at events like Tech Ed, the vast majority of the room is still doing Windows Forms projects, many on Windows XP or Vista. That’s the reality of what’s actually out there in businesses. You will have plenty of time to adapt as necessary (or not, as appropriate) and make reasonable and educated decisions about where you want to take your skills personally, and your company as to where it what it wants to leverage.

    I have to question any time I hear rumors about projects being canceled or put on hold based on a rumor of where we may take a technology several years down the road. While some of those are certainly sound, the rest seem like either knee-jerk reactions, or the management wasn’t sold on the technology to begin with.

    I don’t think anyone here has been wasting time learning these skills.

    And while I don’t agree with the extremes on either side of this debate (the “nothing is wrong, why are you complaining” and the “I’ve wasted my career” sides) I do think that, as developers, diversifying your technology portfolio is always a good idea. Specialization can be good, but just like with stocks, if you invest too much in just one thing, your results are going to have lots of peaks and valleys instead of being more even. Of course, the person saying that has spent the last 4+ years deeply specialized, so take that as you will 🙂

    Pete Brown’s #8 response [06-05-2011 2:53 PM] (emphasis is mine)

    .netdan:

    Why doesn’t the Silverlight.net home page get updated as often as it used to?

    The blogs keep coming, but what about the News, Community Samples?  There used to be loads of samples now theres about 5 a month if were lucky.

    The showcase hasn’t been updated for ages, there used to be 10+ new showcases every 2 weeks or so, what’s happened to that?

    Silverlight has a future I’m sure, I just wonder what exactly it is.

    I curate a fair bit of this stuff. Here’s an explanation

    Community Samples: They need to be written by the community. They’re just not coming as quickly as they used to. This is both because what’s there already covers almost all the easy scenarios, and because many Silverlight devs are doing WP7

    Showcase: I took it upon myself to start weeding out old stuff, and to raise the bar for new submissions. Showcase needs to be showcase-level material, not a dumping ground. While I’m not yet where I want to be there, we have certainly rejected a lot more things than we had before. If the submission doesn’t meet the bar and they’re willing to include source code, I ask them to submit to the community samples.

    Even blogging has slowed down. That’s partially because it’s the summer, partially because folks are waiting for the next release, and partially because many Silverlight devs are doing WP7 work.

    FWIW, we’re also working on the next version of this site. Check it out at http://beta.silverlight.net

    Just some insight 🙂

    Pete Brown’s #9 response [06-05-2011 3:29 PM] (emphasis is mine)

    SilentObserver:

    ray reymond:

    Lure disheartened SL/WPF/.Net folks to Android world, “Look Java and C# are almost the same so there’s not much transition pain, and we are serious about supporting Android. We will not back-stab you guys like Microsoft just did.

    And it’s working for them. My team needs to kick off building a relatively simple app for tablets during this and next month. Since Microsoft is giving us the silent treatment until September, I’ve started watching the android dev videos here: http://developer.android.com/videos/index.html#v=Oq05KqjXTvs . We will be evaluating the platform while waiting for clarifications from Microsoft. It’s a familiar concept for every SL developer. Their tools aren’t as good and C# has surpassed Java, so it would be a step down for us. But not as big of a step down as moving to javascript. The back-stabbing argument is probably the most important of all. We need to be able to trust our OS vendor and Microsoft has lost a tremendous amount of developer loyalty.

    I’m with you all in that we could have/should have handled this better. However, I don’t think we’ve back-stabbed anyone. No one at Microsoft said HTML is the only way to go here, it’s just an approach we’re highlighting at the moment.

    Unfortunately, we have a long-standing policy of not responding to press rumors and whatnot, so we can’t say anything about the interpretations the press has put out based on this small demo. I’m not even supposed to be posting about this here, but as the community guy for SL/WPF etc., I can’t help myself.

    Yeah, “Wait until September” sucks for people who want to know *now*, but it’s not backstabbing. Remember, most other companies simply tell you nothing until the product is launched. We tried to give some info about something that we know will excite a segment of the community. I’m very concerned that the backlash is going to lead to silence being SOP in the future. 😦 I’m not blaming anyone, just pointing out a possible outcome.

    Pete Brown’s #10 response [06-05-2011 3:43 PM]

    Just a quick reminder for folks to keep it civil. I’ve seen a few posts that are starting to lean a little too far over the edge. Let’s keep language wars out (you won’t resolve anything), and no personal attacks.

    Thanks.

    Pete Brown’s #11 response [06-05-2011 3:57 PM] (emphasis is mine)

    SilentObserver:

    If the above is true, there is nothing to be gained by keeping it secret. So we must conclude that it isn’t true, at least as of now.

    We know we can get the “legacy desktop” experience. However, our customers are doctors who own the lastest Apple gadgets.  They expect us to deliver the same experience on their medical devices. If we are confined to the legacy desktop, we won’t be able to do that.

    If you’re planning to develop for Windows 8 tablets, you have plenty of time. The wait until September is pretty short in comparison.

    You’re also making an assumption based on the absence of information. “I didn’t hear from Joe, so he must be dead.” seems far less logical than just keeping it unknown – well, until some reasonable period passes anyway. There’s something about a box and a cat that applies here, but I’m not going there 🙂

    I know it’s going to be a long summer now, and I know this is very frustrating and has everyone on edge, but I encourage you to reserve judgment until //build/. Then, once we’ve come forth with a good and full picture of Windows 8 plans, rather than just a quick consumer-focused preview, make your informed decisions.

    Pete Brown’s #12 response [06-05-2011 4:59 PM] (emphasis is mine)

    SilentObserver:

    I appreciate you trying to calm everybody down . You’ve been given an impossible task by your PR people.

    Thanks. Not anything that was given me. In fact, we’re supposed to just be quiet. That’s not in my genes, though.

    I’m not so much interested in calming folks down as I am interested in getting to the core issues here and getting folks to keep any criticism on target (not attacking HTML devs or Silverlight devs, for example). And, of course, to remind folks that we’ll be talking much more about Windows 8 at //build/

    Pete Brown’s #13 response [06-05-2011 5:00 PM]

    SilentObserver:

    A more accurate analogy would be : “I know Joe and Jim were fighting in the parking lot, and Jim just showed up very happy, so Joe must be badly bruised.” 🙂

    lol. You win that one 🙂

    Pete Brown’s #14 response [06-05-2011 5:06 PM] (emphasis is mine)

    brosner88:

    A pretty, elegant or easy to use shell UI is can be a nice selling feature to end users. It does nothing for developers.

    And here we get to the crux. That demonstration video was not for developers. //build/ is for developers. HTML was mentioned as pretty much everyone gets it, even non-developers. And, quite frankly, that’s pretty cool that we’re doing that; a company that has gotten (in some cases, deserved) flak for not adopting standards is now incorporating one into the heart of their flagship product.

    Yes, we mentioned HTML, but no one showed code. If it was meant for developers, you *know* we’d have had someone up there with an IDE open.

    So: that demo, the walk-through video, and the related press release were all for non-devs, //build/ is for devs.

    Pete Brown’s #15 response [06-05-2011 5:16 PM] (emphasis is mine)

    jackbond:

    Psychlist1972:

    know it’s going to be a long summer now, and I know this is very frustrating and has everyone on edge, but I encourage you to reserve judgment until //build/.

    What if we say no, and that that’s simply unacceptable? I for one am willing to withdraw my app from the marketplace. Anybody else?

    That’s entirely your right. I just don’t think it’s a particularly savvy move given that it is based on speculation and rumor which themselves are based on a consumer-focused demo of an unreleased operating system and the related consumer-focused press release.

    Pete Brown’s #15 response [06-06-2011 1:11 AM] (emphasis is mine)

    kimsk112:

    Anyone knows if the Prism group (patterns & practices) is now working mainly on this Silk project (HTML5/JQuery) instead of Silverlight/WPF Prism?

    If they stop committing to Silverlight/WPF Prism, I think we know what Microsoft is thinking now.

    P&P is a peer team to mine (although much larger), in the same side of devdiv, called EPX. I believe they’re still working on Silverlight/WPF prism; I haven’t heard anything to the contrary. They’ve been beat up a bit in the past, however, for not having enough web guidance. Silk is part of the effort to make up the difference there.

    That said, I’m not sure what else there is to add to prism. I haven’t looked at the backlogs, but it has to be getting pretty mature by this point.

    The prism book was one of the hottest things at the Developer Guidance/P&P booth at Tech Ed 🙂

    Pete Brown’s #16 response [06-06-2011 3:44 PM] (emphasis is mine)

    FWIW, we don’t use third-party media outlets to announce things or do damage control unless it’s a quoted interview or video of MS folks. Even then, it’s rare not to have the real annoncement on our PR site.

    Pete Brown’s #17 response [06-06-2011 9:29 PM] (emphasis is mine)

    In case you haven’t seen this, Hanselman’s “Don’t give bile a permalink” is a good read.

    [Why? For things like that: “If you’re a nudist and you give your technical talks on C# naked, I likely won’t be there to watch your talk. You may feel REALLY strongly about nudism, and I wish you well. You may believe in the legalization of drugs and prefer to give your technical presentations high, and I say, kudos, but I and others may not show. There are some social norms, and you should know what they are and know how strongly you feel about them when you take your message to a larger audience. ”]

    From a quite opinionated but quite unsatisfied previous insider: http://twitter.com/#!/MossyBlog

    Scott Barnes

    @MossyBlog Brisbane
    Former Product Manager (Silverlight/WPF) Microsoft Corp, UX Specialist, The guy leading the mob on FIXWPF.org and blogging dude behind RIAGENIC.com
    http://www.riagenic.com

his response to the on going debate on Silverlight Forum

MossyBlog response #1 [06-06-2011 10:03 PM] (emphasis is mine)

A few points if I may:

  • Not saying anything is one thing admitting it… dear god why. This isn’t directed at Pete to all staff members, if you can’t get involved in the discussion then avoid the discussion completely. Jumping into the fray and asking all to calm down while at the same time not offering answers is not wise. It only fuels further conspiracy theories for one and secondly it creates a focused point of frustration for all to increment geek-rage at.  Either join the discussion or don’t but not half-way.
  • Perception vs Reality. The amount of times when we use to deal with constant battles around Silverlight mainly from a perception base vs the reality was a daily occurenceso Microsoft Staff, while I admire your bravery here by jumping into the fray with “probably” correct is a diasterous way of handling the corporate communication(s). You’re actually doing more harm that way and if i was still in the Silverlight team i’d be making moves to put a gag order on you for it – its not your motivates aren’t righteous but you are actually now validating some of the speculation by keeping it half-yes half-no.
  • New Joins vs Trolling. On one hand its great to see new members whilst on the other hand its sad under these circumstances. The point of order here is this, Corporate Comms 101 is a tire fire right now, people are frustrated and having an outlet like this to voice such concerns is a beast that well – staff – you created. If people are joining to either remain anonymous and voice their rage or so on, so be it all you can all do is reallly just sit and listen …that..or join the conversaton and start squashing some of the rumous / speculation mentioned earlier. Time to get involved.
  • Moderation. If you have a situation whereby the villagers are going to storm your gates, its better to marshall them into an area you can control more to the point you can isolate. Having such a firm strict hand on a forum such as this isn’t smart as what you’re really saying to the hordes of both positive & negative emotion is “take your fight elsewhere”.  You don’t want that, you want this isolated and pocketed to one area of the web as much as possible as when you do finally do your reveal in September you can then provide a much more sturdier platform to voice your smackdowns. Right now this is just plain stupid.

Pete. Personally I am fan of your work and will often support you even when I think you’re wrong because at the end of the day you work very hard to make a difference to communities like this. My personal advice to you is step aside, don’t take this bullet as the Windows team have some damage to fixand as some managers in the Silverlight team used to say “If you going to break up a fight, be prepared to be punched in the face”.

Let the horde vent their rage, its fast creating a marshalling point for you to provide some much needed corporate communication(s) to down the track.

To the masses here on this thread: You can argue amongst yourselves all you want, to what end? all you’re really doing is seeing who can bark the loudest.. the reality is this won’t have impact as the decisions around this entire messaging framework if you want to call it that goes much higher than those who moderate / read these forums. At best all staff like Pete can do etc is provide a thread or snippet of quotes to execs in a “quoted” format with “Please help me help you” call to action. It’s more than likely that email will be ignored.

My advice – wait this HTML5 bubble gum pop idea out as it’s one thing to say “all devs will create HTML5 apps” and its entirely another to have it happen. This is about the 4th time Windows team have tried to kickstart the HTML pipedream and what they fail to realise is that folks who do adopt Microsoft tech enjoy .NET [while] folks who don’t, just don’t like Microsoft as a brand and it mainly has nothing to do with technology discussion. Can’t imagine why they loose faith in the brand though? can you 😉

Scott Barnes
Former Product Manager (well 1yr ago lol) for Silverlight/WPF 🙂

Scott Barnes
Anti-Evangelist

To which came the following:
npolyak1 reminder [06-06-2011 11:29 PM]

And here is an article by Scott Barnes written last September warning everyone about what is coming (would we all listen to him)

http://www.riagenic.com/archives/363

npolyak1 addendum #1 [06-06-2011 11:40 PM] (emphasis is mine)

Excerpt from Scott’s article:

I’m simply about highlighting the disconnect here and if the Windows 8 / IE teams of today think that Silverlight / WPF is something they can deprecate because they dislike people in DevDiv or its current model then think again, as this is one of those rare moments in time where you have a hung jury in terms of which of the two is really the best bet.

npolyak1 addendum #2 [06-06-2011 11:41 PM]

Apparently Windows 8 / IE teams decided that they indeed can deprecate WPF and SL. Moreover, MS seems to allow them to get away with it.

npolyak1 addendum #3 [06-06-2011 11:48 PM]

Windows team seem to have gotten what they wanted – they destroyed the developer tools division, but they are also destroying a large part of Microsoft – in my estimate this crazy idea will cost at least $50 billion in market capitalization.

Drzog response to npolyak1 [06-06-2011 11:51 PM] (emphasis is mine)

Interesting article – it explains much, and is very disconcerting. Call it conspiracy theory, but I’ve noticed a number of HIGHLY VISIBLE Silverlight marketing links are not functional on the following prominent Microsoft websites:

(1) http://www.microsoft.com/silverlight/   This is the entry point URL for anyone inquiring about Silverlight, and ranks first or second when searching on “Silverlight”.  Guess what? Click the first thing you see — the “Play” button — and then “Launch Demos” and sadly, none of the first three video streaming examples work. SHAMEFUL.

(2) http://www.microsoft.com/silverlight/future/  This is Microsoft’s “The Future of Microsoft Silverlight” page. Click the first call to action button “Watch the Silverlight Five Announcement” — guess what? NO VIDEO. Then try the “High Quality WMV” link. Guess what — staggered and strobed pixelation. SHAMEFUL.

These are Microsoft’s leading URLs for Silverlight information. Go figure.

Scott Barnes response to the erietta [user experience designer. news hound. art lover. in Sydney] 10 hours ago [vs 06-07-2011 11:00 CET]

UI experts upbeat on Windows 8 preview itnews.com.au/News/259674,ui… via @itnews_au what say you @MossyBlog ?

So copied here: UI experts upbeat on Windows 8 preview [June 6, 2011] (emphasis in bold is mine)

But are icons more effective?

User interface experts have expressed surprise at the re-design of the Windows OS interface, giving Microsoft the thumbs up for touch-based gestures and use of web app development standards.

The new interface, previewed late last week, replaces menu bars and icons with tiles akin to Windows Mobile 7.

A panel of Australian user interface gurus told iTnews the preview was significant.

Whereas web applications were once developed to mimic richer desktop applications, users now prefer the simplicity and ease of navigation of web applications.

Today, the desktop OS attempts to mimic the web.

“Hallelujah, at last, someone got it!” said Anthony Colfelt, Creative Director at web user experience firm, Different.

Microsoft’s tiles “take the best from informational web-design and applies it to the main computer UI,” he said.

He was particularly impressed that Microsoft has chosen to run applications developed with HTML 5 and Javascript, to prepare for an “inevitable shift toward light-weight terminal computers that rely on web-served applications.”

Colfelt said Microsoft was “finally attempting to lead in the area of UI and experience, rather than following Apple.”

“It has always been to Microsoft’s advantage to open up their system (for a reasonable fee) to the masses of developers and hardware manufacturers,” he said.

”Lots of programmers and machines equals lots of cheap programs and computers, and that means lots of accessibility for the consumer.”

Richard Edwards, Principal Analyst at Ovum said the preview proved Microsoft is still a “viable market-maker.”

Made for tablets

Shane Morris, director at UI specialists Automatic Studio said the interface “shows that Microsoft is serious about embracing touch and slate-based modes of use within Windows itself – as it should be.

Clearly Microsoft has thought hard about how to integrate the casual consumption model of tablet devices with ‘real’ operating system features like multi-tasking, file system access and rich applications that require extensive user input, like Office.” he said.

“Why abandon the power and familiarity of Windows if they can possibly help it?

The use of scrolling panels of tiles is a natural extension of the use of tiles and panning ‘panoramas’ in Windows Phone 7, which are proving popular with users,” he said.

Swiping left and right to scroll through choices is a very natural action, and leverages both spatial memory and muscle memory to help users find and re-find what they need.”

But Morris pointed out that the preview did not reveal any on-screen cues to users to show them how swiping in from the edge of the screen could activate operating system features like task switching. This could prove a sticking point until users grew used to the concept, he said.

Colfelt also noted that many of these same interactions would “feel clumsy using a mouse.

“That could cause RSI if the user gets too excited about using them,” he noted.

The only point on which the experts disagreed was the use of tiles on the home page. Whilst Colfelt felt it was a solution to what he calls “information spelunking” (areas of a site easy to fall into and hard to find your way back out of), Morris felt Microsoft was abandoning icons that have historically proven far more effective.

Tiles, Morris said, are difficult to differentiate and can crowd the screen.

“The use of larger, consistently sized tiles containing dynamic content has the potential to create a vista that ‘yells’ at the user – and the demonstrated use of bright, saturated colours might actually make it difficult for users to discriminate between tiles and to focus on individual tile content,” he said.

“We know that people use various cues to search the visual field. Outline shape is one of the primary prompts to help people discriminate and identify objects visually. The dominant and consistent rectangular shape of the tiles themselves means Windows 8 users cannot use this outline shape as the primary cue. They must instead rely on colour and the actual tile contents. Compare that to the carefully designed icons in Microsoft Office products. Those icons present unique outlines – for good reason.”

Morris raised concerns as to whether Microsoft would continue to support stylus and other pen-based input as well as touch.

MossyBlog Scott Barnes @erietta @itnews_au UI Experts? hah.. thats like saying “Lifecoaches enjoy windows 8” 🙂 9 hours ago

in reply to ↑ @MossyBlog Scott Barnes @erietta @itnews_au the only expert in that conversation was @shanemo and he nailed his remarks well.. wouldn’t say it was upbeat tho 9 hours ago

erietta erietta @ @MossyBlog is your microsoft bias shining through? Anthony is a well qualified UX designer (& my boss you ratbag!) @colfelt @itnews_au. 7 hours ago

MossyBlog Scott Barnes @ @erietta @colfelt @itnews_au he is? so am i? so is everyone.. UX Expert is an oxymoron imho 🙂 7 hours ago

erietta erietta @ @MossyBlog @colfelt @itnews_au and I was after YOUR thoughts as you are on the record of sledging microsoft UX design. What say you? 7 hours ago

in reply to ↑ @MossyBlog Scott Barnes @erietta @colfelt @itnews_au i personally think the Tiles Windows8 concept is still unproven firstly & secondly it’s lazy design that furthermore, I don’t think as much thought as one is lead to believe has been put into the science behind it..  the design behind current MS Metro is a state of confused schizo ver of Intrinsic & Extraneous cognitive load. 7 hours ago

in reply to ↑ @erietta erietta  @MossyBlog @itnews_au @colfelt This is the Scott I was looking for! Will be interesting to see if the process behind design is revealed. 7 hours ago

replies ↓ MossyBlog Scott Barnes @ @erietta @itnews_au @colfelt yeah i mean i feel like a crack record though on my metro insighs..basically i like its attitude not execution 7 hours ago

——————————–

colfelt Anthony Colfelt  @MossyBlog @erietta @itnews_au having worked alongside a few MS UX team members, I know PLENTY of thought went into the design.  9 hours ago

in reply to ↑

@MossyBlog Scott Barnes   @colfelt @erietta @itnews_au pink had potential and there were far better ideas on the table early on

@MossyBlog Scott Barnes   @colfelt @erietta @itnews_au it’s principles are great it’s execution is lazy   9 hours ago via Twitter for iPhone

colfelt Anthony Colfelt  @MossyBlog @erietta Isn’t it a tad insulting to them to suggest otherwise? 9 hours ago

in reply to ↑

@MossyBlog Scott Barnes  @colfelt @erietta so? Want to play in the big leagues be prepared to backup the science behind it all 9 hours ago via Twitter for iPhone

@MossyBlog Scott Barnes  @colfelt @erietta this execution panders to making engineers I to designers without context or personality  9 hours ago via Twitter for iPhone

@MossyBlog Scott Barnes   @colfelt @erietta current metro designs are what I call shoplifting for designers

@MossyBlog Scott Barnes  @colfelt @erietta it’s in my view the same as buying ui art from a $1 or less store

colfelt Anthony Colfelt  @MossyBlog @erietta I doubt most those reading @itnews_au cares abt the science. But next time, maybe they’ll ask a REAL expert to comment9 hours ago

in reply to ↑ @MossyBlog Scott Barnes @colfelt @erietta @itnews_au let me know if u meet one. I watched $1m usd research try and find one and it failed :$

MossyBlog Scott Barnes @ @colfelt @erietta @itnews_au btw i’m not looking to attack you per say, just the concept of “UX Experts say..”.. its kind of “wtf?” is my pt 8 hours ago

brettatitnews Brett W @  @colfelt @erietta @itnews_au I’m guessing if I’d included @MossyBlog there would be no argument on using the word “expert”.  7 hours ago

MossyBlog Scott Barnes  @ @brettatitnews @colfelt @erietta @itnews_au wanna take that bet ? 🙂 .. The word expert is an alt word for Life Coach in my vocab 🙂 7 hours ago

brettatitnews Brett W  @  @MossyBlog @colfelt @erietta @itnews_au how would you rather be addressed Scott?  7 hours ago

in reply to ↑

@MossyBlog Scott Barnes @brettatitnews @colfelt @erietta @itnews_au Me? why would you address me.. i’m just a developer who designs.  7 hours ago via web

replies ↓

erietta erietta  @  @MossyBlog @brettatitnews @colfelt @itnews_au What have I started here?! </flamewars> 7 hours ago

MossyBlog Scott Barnes  @ @erietta @brettatitnews @colfelt @itnews_au haha 🙂 no.. its just that article came up light..i want more meat on the bone..  7 hours ago

brettatitnews Brett W  @ @MossyBlog @erietta @colfelt @itnews_au I’ll be sure to include you next time Scott. 6 hours ago

MossyBlog Scott Barnes  @ @brettatitnews @erietta @colfelt @itnews_au hah.. that’d be funny. 6 hours ago

MORE FROM SCOTT BARNES

@MossyBlog Scott Barnes Blog Post:: Understanding “Why would Microsoft do that?” http://bit.ly/m8lRiL  8 hours ago via RIAGENIC Blog

China Mobile repositioning for TD-LTE with full content and application aggregation services, 3G [HSPA level] is to create momentum for that

Follow-up: – Good TD-LTE potential for target commercialisation by China Mobile in 2012 [July 13, 2011]

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

China Mobile to accelerate TD-LTE commercialization [June 10, 2011] (emphasis is mine)

China Mobile reportedly has decided to accelerate its investment in TD-LTE technology aiming to push the commercialization of TD-LTE networks one year ahead of its original schedule, according to industry sources.

The affects of poor sales on the commercialization of its 3G TD-SCDMA networks has pushed China Mobile to move forward into the 4G segment, the sources indicated.

The move by China Mobile has attracted attention from a number of chipset makers including Qualcomm, Sequans Communications, MediaTek and VIA Technologies as well as China-based Spreadtrum Communications, Hisilicon Technologies and Innofidei, as they have all been eyeing the 4G chipset market in China, the sources noted.

MediaTek has decided to expand its R&D team for the development of LTE and WiMAX chips in Taiwan and China, with plans to raid talent from other wireless chipmakers as well as from HTC, said the sources, noting that MediaTek also does not rule out the possibility of acquiring related LTE R&D teams at home and abroad later.

Global opportunities for LTE TDD [Ovum, February 2011]

Quite often, LTE TDD (also known as TD-LTE) is wrongly presented as a Chinese technology. … However, unlike TD-SCDMA, which was originally a Chinese technology that was subsequently adopted by 3GPP, LTE TDD has been part of the 3GPP standardization effort since its inception. … China Mobile learned at its cost with TD-SCDMA that being a 550 million customer mobile operator helps to attract vendor attention but is not enough to make a technology a global success. The operator consequently built a strategy to position LTE as the next GSM, making LTE the de facto global standard for mobile broadband – something most cellular operators would welcome for cost reasons.

China Mobile is facing several challenges with TD-SCDMA. One of the most acute relates to the smaller economies of scale associated with a weaker device ecosystem compared to UMTS/HSPA. This is why China Mobile quickly oriented its long-term mobile broadband strategy towards LTE TDD. … In terms of LTE TDD network expansion, we believe that it could be faster than TD-SCDMA as the network will leverage many aspects of the current TD-SCDMA network including cell site facilities, backhaul, and even parts of the base stations. … Despite the large scale of the trials, the drawback of a 1H12 launch is the impact it may have on the development of the LTE TDD ecosystem. Fortunately for the technology, another significant market, India, may launch commercial LTE TDD services before the end of 2011.

It is Ovum’s view that LTE TDD will become widely adopted in the global market, but this will take time, as exemplified by our forecasts. There will be a delay of 12–18 months between the take-off of the two LTE variants. For LTE FDD take-off should be around 2012–13, while it is expected that this will be around 2013–14 for LTE TDD. We forecast 89 million LTE TDD connections by 2015, representing roughly 25% of total LTE connections.

First Pre-commercial LTE TDD/FDD Uni-Mode Single Chipset USB Dongle to be Launched in June [June 9, 2011]

In June 2011, the world’s first pre-commercial LTE TDD/FDD uni-mode, multi-band, single chipset USB dongle supporting LTE TDD/FDD idle mobility (cell reselection) will be launched by Huawei Hisilicon. Successful completion of the IOT tests with all of the 10 infrastructure vendorsindicated that it had fully satisfied the Uu IOT and terminal test requirements of MIIT and CMCC.

Detailed  design parameters are as follows:

The TD-LTE USB Dongle makes an unprecedented advance in functionality, performance, form factor, and interoperability. Prior to the launch of this pre-commercial TD-LTE dongle, 3 other critical development stages were completed:

  1. The first release of TD-LTE single-mode USB dongle test samples were released at the Shanghai World EXPO in mid 2010. All the terminals were custom-designed for the trial/ demonstration with the 65nm chipset design. Most of them passed the IOT tests with 1-2 infrastructures.
  2. The first release of LTE TDD/FDD dual-mode Single Chipset USB (65nm design) dongle test samples were released at GSMA MWC 2011 in February 2011. The USB dongles provided by Huawei Hisilicon and Qualcomm can support TD-LTE and LTE FDD in a single chip. The dongle is designed to support TD-LTE or LTE FDD based on the software that is loaded.  IOT tests with 3-4 infrastructrues were passed during this phase.
  3. The pre-commercial TD-LTE single-mode multi-band USB dongles (45nm design) were launched during the GTI 1st workshop in April 2011. These were targeted for trial applications and installations. More than 20 TD-LTE USB dongles from ZTE provided problem free services during the two-day GTI workshop. The DL peak data rate reached 80Mbps and the average single user DL data rate reached 4Mbps. The dongle demonstrated the commercial readiness, stable performance and rapid development of the TD-LTE dongle.

The development quickly progressed from a 65nm test sample to a pre-commercial, Full IOT, Uni-mode, 45nm solution in less than a year. TD-LTE Large Scale Trials in China and commercial deployment in India and Japan will speed up its commercial readiness. The TD-LTE dongle will be commercially available in 2011.

Spreadtrum Communications Acquired Stake in MobilePeak Holdings, Ltd., a Leading UMTS/HSPA+ Modem Chipset Designer [June 9, 2011] (emphasis is mine)

Spreadtrum Communications, Inc. (NASDAQ: SPRD; “Spreadtrum” or the “Company”), a leading fabless semiconductor provider in China with advanced technology in both 2G and 3G wireless communications standards, today announced that it has acquired approximately 48.44% of the total outstanding shares of MobilePeak Holdings, Ltd. (’MobilePeak’), a privately held fabless semiconductor company based in Shanghai and San Diego that specializes in the design of highly integrated UMTS/HSPA+ modem chipsets.

Spreadtrum acquired approximately 48.44% of MobilePeak’s total outstanding shares, and provided a short-term loan to MobilePeak for the repayment of MobilePeak’s outstanding convertible bridge loans, for an aggregate cash consideration of approximately US$32.58 million. Spreadtrum intends to purchase all of MobilePeak’s issued and outstanding shares, and expects to complete the acquisition in the third quarter of 2011. Thanks to MobilePeak’s efficient operations, Spreadtrum expects the acquisition to have a minor impact on its earnings per share in Q2 and the remaining quarters in 2011, and Spreadtrum maintains its Q2 2011 guidance in terms of revenue, gross margin, and operating expenses as a percentage of revenue.

Commenting on the transaction, Spreadtrum’s Chairman, President and CEO, Dr. Leo Li, said, ’We are very pleased and excited to welcome the MobilePeak team. The synergies between the two companies and the opportunities created by this transaction are clear. With MobilePeak’s complete UMTS/HSPA+ solution, we will broaden our portfolio of worldwide wireless handset technologies, and make inroads into the WCDMA feature phone, smart phone and tablet markets.

“Utilizing our advanced 40nm technology, mature GSM/GPRS/EDGE and TD-SCDMA platforms, and working closely with MobilePeak’s Shanghai and San Diego teams, we will be well equipped to expand our international market shares. These capabilities are also a solid foundation for developing the next generation multi-mode FDD-LTE/WCDMA and TDD-LTE/TD-SCDMA technologies over the next two years.”

Mr. Qiuzhen (Joe) Zou, Chairman and President of MobilePeak, said, ’ We are eager to work with the Spreadtrum team. Since MobilePeak’s inception in 2005, our team has developed world-class baseband chipsets with support for 3GPP Standard through Release 7, including HSPA+ technology up to Category 14 with 21Mbps maximum downlink speed and 11Mbps maximum uplink speed. MobilePeak has more than 100 patents granted or pending worldwide, and its solutions have passed GCF tests and top-tier handset makers’ strict in-house tests. We are confident to roll out the first 40nm HSPA+ solution platform for feature phones and smart phones by 2012.’Mr. Zou will assume the role of Chief Technology Officer at Spreadtrum.

Mr. Zou founded MobilePeak in 2005 and has since served as MobilePeak’s Chairman. He served as MobilePeak’s Chief Technology Officer from 2005 to 2010 and assumed the position of President in 2010. Mr. Zou has more than 18 years of experience in the wireless communications industry. From 1993 to 2003, Mr. Zou held various positions with QUALCOMM, Inc., where he became a Vice President of Engineering in 2000. At QUALCOMM, Mr. Zou led various semiconductor design projects, including multiple generations of CDMA baseband chipsets. Mr. Zou received a BSEE from Southeast University in Nanjing, China in 1992, followed by an MSEE from Stanford University in 1993.

China market: 3G network investment totals CNY289 billion [June 14, 2011]

China Mobile, China United Telecommunications and China Telecom have cumulatively invested a total of CNY289 billion (US$43 billion) in setting up 3G networks consisting of 697,000 base stations around China, China-based http://www.xinhua.com has cited Ministry of Industry and Information Technology officials as indicating.

The three carriers had 67.57 million 3G subscribers in total as of the end of April 2011, the report indicated.

Goal for domestic 3G network set at 50m users [June 9, 2011]

The Chinese government has set a target of achieving more than 50 million third-generation (3G) mobile users by the end of 2011 for its homegrown telecommunication standard, but analysts predict the technology may not be the biggest winner in the 3G era.

Zhao Bo, deputy director of the electronics and information department with the Ministry of Industry and Information Technology, said on Wednesday that China should continue to push forward its TD-SCDMA (Time Division-Synchronous Code Division Multiple Access) 3G technology.

“The TD-SCDMA technology should realize its strategic target of acquiring at least one-third of China’s market, and grab 50 million users by the end of this year,” Zhao said.

He said he is confident that China Mobile Ltd, the world’s biggest telecom carrier by users, will achieve the goal within the schedule.

China Mobile is building the TD-SCDMA 3G network in China, while its domestic rivals, China Unicom Ltd and China Telecom Corp Ltd, adopted the WCDMA and CDMA2000 3G technologies.

Ye Lin, an official from the technology department of the Ministry of Industry and Information Technology, said since the three Chinese telecom operators obtained 3G licenses in early 2009, China has made major progress in 3G network development.

The three carriers have invested a total of 289 billion yuan ($44.6 billion) in 3G network construction in the past three years, Ye said. More than 697,000 3G base stations have been set up in the same period, he added.

The ministry recently announced that the number of 3G users in China reached 67.6 million by April.

China Mobile topped the list with 29.4 million, and China Unicom followed with 20.4 million. The smallest telecom carrier, China Telecom, had 17.8 million by April.

The great leap forward: How the world’s largest operator aims to jump one generation [Ericsson Business Review, June 10, 2011] interview with Bill Huang, GM of the China Mobile Research Institute (emphasis is mine)

China Mobile is pushing the time division (TD) flavor of LTE hard. Why is it necessary to have more than one kind of LTE, and what benefits does TD offer end users?

To understand, you must look back at what caused this technology evolution. There was an understanding that to go digital we must have a global standard. There were many candidates but they fell apart. GSM was a very good effort and succeeded in becoming the first real global standard. Then came 3G. In retrospect, 3G was a questionable development. It optimized voice capacity and quality but data traffic was kind of an afterthought. GSM did the job just fine. The best example is China Mobile. We deployed the world’s largest GSM network with the lowest tariffs, and never saw the need for a better voice service. 3G was a solution looking for a problem. And indeed, WCDMA did not take off until HSPA was developed. So from a historical perspective, HSPA was the only killer application for WCDMA, and internet access is the only reason HSPA took off.

Mobile internet is the only growth area for mobile communicationLTE carries the heritage of GSM and WCDMA with it … the selection of TD technology as a strong candidate in the evolution of LTE gives us an internet advantage. Historically, mobile communication has been symmetrical, dominated by voice. Internet traffic is not symmetrical. Downlink is typically 10 times faster than uplink, and addresses this. TD is unique in the way you can adjust the uplink and downlink ratio. And that’s why TD has become very useful – not only does it allow operators to use spectrum more efficiently, it also offers consumers a better user experience and lower costs.

How will China Mobile use 3G?

We will accelerate. For China Mobile 3G is an important licensing issue, and we are building a 3G infrastructure to create the momentum [with 3G HSPA level?] with which we move towards 4G.

Isn’t that a long way off in the future? Don’t you need to develop mobile broadband now?

Completely wrong! We are targeting commercialization next year, not in five years. In fact, operators in India and Japan plan to go commercial this year, but we are not that aggressive. So you see: 4G is not being pushed by the vendors, like 3G was. 4G is being pushed by the carriers. LTE is the only standard in the industry where, if you have a product, people will buy it right away. It’s  the reverse of how things used to be, and very interesting. LTE is being developed fast, but not fast enough.

Instead of looking at data volume, we can charge for downloading a movie, regardless of size, or a song or a book. We have all of that already in place. But frankly I don’t think consumers are used to content based billing, so we need to educate them – in many cases. … China Mobile’s strategy is that we will be a content and application aggregator, therefore becoming a smart pipe – not a dumb pipe that just provides access without aggregating anything. So we become the Walmart of information.

Instead of charging for content or traffic we can create a club. People are familiar with that concept. You pay one monthly charge and everything is free. It’s very effective; Netflix is a good example of a subscription based service that I think has a very good future as a business model. At China Mobile we can do anything with scale, but we can’t do everything in a niched or personalized way. So, if we provide a club we get to leverage that scale. We have 600 million subscribers. If only 10 percent sign up, that’s already 60 million members. If just 1 percent sign up, that’s 6 million members.

How do you handle the threat from the over-the-top (OTT) players, the internet companies?

It is a very real threat: OTT services can now replace almost any communications service imaginable. ott services are usually free, so this business model is based on backward billing. … What we hope to entice the user with is the quality of service – that’s our most important competitive advantage. … we must also look to reduce the cost of our services, potentially making them free as well. If we use other ways to generate revenue – like advertising or the club concept, and the user subscribes to a bandwidth bundle – we could provide the voice club service for a fixed fee, while guaranteeing the quality. Then I think we could kill off OTT very easily.

What do you expect from the cloud?

For mobile internet we have established a three-front strategy: LTE; the smartphone (operating Ophone, which is based on Android plus); and cloud computing. Only by combining all three can we create a really competitive and successful mobile-internet business.

We believe the cloud is an infrastructure technology that can address the cost of computing, reduce energy consumption and become a common platform for society, consumers and companies. Historically telecom operators have been reluctant to embrace it, but this was a mistake. In the US, I think carriers have already given up. They allow Google, Amazon and Microsoft to run cloud computing. But there are opportunities for China Mobile. If anything, we can do infrastructure on a large scale, data centers and so on. We do not have to develop all of the internet services in the world to compete with Google or Facebook. What we could do is build a cloud-computing infrastructure and invite all the internet companies to partner with us.

The most important phenomenon that will drive change in the mobile communications industry today is the evolution of smart phones. What used to be a communications device is now an all-purpose computing device. Today, fewer than 20 percent of our subscribers use smartphones. We think that in three to five years over 80 percentof our subscribers will use smartphones.

Have tablets changed this picture?

No, I see them as just bigger smartphones. In fact, Microsoft and others have tried for many years to introduce tablets and failed. But when Apple introduced the iPad, which is just a big iPhone, everybody loved it. So, this proves that a successful tablet is a big smartphone. The look and feel is very similar to that of a phone.

How do you work with the app store concept?

We embraced it completely and the way we differ from Apple is that we support all operating systems – including iOS if Apple wants us to. … We hope to create a platform that is independent of operating systems. … The reason China Mobile chose Android was that we need the flexibility to differentiate. We need to add components, APIs and functionality to Android. That’s why we call it Android plus.

I don’t know if video is going to be a major revenue stream, but I am sure it’s going to be a major application. I say that because making video calls on IMS [IP Multimedia System]will become an internet application, so it depends on how we charge for it. It opens up the potential for more creative billing strategies. We would be able to deliver a level of quality that would be very difficult for an ott player to achieve.

We studied what kind of apps users download and you’d be surprised how similar people’s tastes are. The top 1,000 apps have a 99-percent share of the market. That’s very good news for operators. We are not very good at long tail, but we are definitely good at short tail.

We want a mobile phone to be able to transmit TV to a large screen – so you can watch the program on your phone’s small screen or your computer screen, but also take it with you when you visit someone and watch it together on a large screen, in high definition. You won’t need the DVD. The mobile becomes the set-top box. So China Mobile doesn’t need a three-screen strategy – we only need a one-phone strategy. We are working on a wireless multimedia transmission technology called WiMo for this, and expect it to be available in two to three years.

Are you ready for mobile banking?

To be frank, we have not figured out which technology’s the right one to get the credit card or the payment mechanism into the phone. The most viable one for phones would be near-field communication (NFC). We have already established our architecture for mobile commerce and an account system with connections to all the banks, so from a service point of view we already have everything in place. What we need right now is for more phones to have the capability to carry the mobile payment and transaction engine – the right chip and components to support it, along with NFC.

Is banking a comfortable area for operators?

We don’t necessarily have to compete with the banks. We can rather just be the wallet and charge a monthly fee for the service. In other words, the banks can issue the cards and put them into our phones. We will make our platform open for all the banks. We don’t have to issue our own cards; all we have to do is to become the channel for the credit cards. And then we can make money. It is a great service – to sign up you don’t have to fill in a lot of forms; we have all the customer data that is needed.

How China institutional changes influence industry development? The case of TD-SCDMA industrialization [May 25, 2011]

… in view of that China state capitalizing on different SOEs and accompanying institutional changes, we further break framework into two time-periods:
– During stage 1 (2002- 2008) that China central government started to support Datang Group, aiming to commercialize TD-SCDMA technology into products. State also assigned Datang to lead TDIA [TD-SCDMA Industry Alliance designed to function as the platform of TD-SCDMA development, involving the activities of setting standard, sharing IPR, organizing supply chain, and coordinating among members] for TD-SCDMA industrialization.
– In stage 2 (2009-present), China state turned to mandate China Mobile to promote TD-SCDMA, not only responsible for networking building and service providing, but also for organizing of mobile handset supply chain (Wang and Tsai, 2010).

The R&D capacity of Datang Group as a whole is questionable, despite that Datang set home-grown TD-SCDMA standard (interview ES1). Since 1992, CATT had received national grant to undergo the earliest home-grown standard (SCDMA, 2G), but failed to commercialize due to weak R&D capacity in commercialize large-scale system development (Chen, 2005; Soh and Yu, 2010)11. Second, Datang XiAn, founded in 1993 and specializing for telecommunication equipment manufacturing for digital automatic switching (SPC) product, can not compete with local minying enterprise Huawei and mixed enterprise ZTE since late 90’s to early 2000’s (Fuller, 2005: 201; Harwit, 2007; Liu, 2008).

… the Datang Group is state-owned enterprise spin off from CATT, and they didn’t directly confront market and no pressure for survival(interview ES1and IS1). Although state continuously channeled national resources to compensate the loss (cf. Table 1 2004 negative profit) from developing TD-SCDMA and that Datang Mobile indeed deployed on R&D and accomplish some patents, Datang Group as a whole can not develop innovation capacity in designing parts and testing whole TD-SCDMA network system. One of the reason is that Datang Group lacked of associated knowledge and experience before (Soh and Yu, 2010).

The same situation occurs in TD-SCDMA mobile terminal products. The joint ventures IC design firms of Datang and MNCs, such as T3G or Commit, launched none of TD-SCDMA products to the market and ended up merged by ST-Ericsson or bankrupted. Likewise, Datang Mobile fruited no complete TD-SCMDA handset, so the state turned to university and public-sector research institutes to support the development of TD-SCDMA (Liu, 2008, 2009).

TDIA also confronted frustration in knowledge sharing and organizing of supply network. There’s no patent license-out or cross-license among member (Sumtttier et al., 2006; Whalley et al., 2009), except occasional license out from Datang to ZTE and Putian (Soh and Yu, 2010). Theoretically, Datang supposed to invite and global companies, such as Huawei and ZTE, into the supply chain of TD-SCDMA and leverage on their experience. But Datang, as the father of TD-SCDMA, tried to protect and guard their child (interview ES1). On the other hand, the R&D capacity of Huawei and ZTE outperformed Datang, so Huawei and ZTE won’t bother to join Datang on patent sharing and further on TD-SCDMA technology/product (interview RS4 and RS6).

State pick winner [and looser] SOE as national team

By contrast to Datang, the state evolves to pick China Mobile as the new national team by assessing past performance as selection criteria. First, China Mobile has near 500 million (end of 2008) users, making it as the largest telecom operator worldwide (BMI, 2010). So it’s a feasible path to migrate most China users from 2G (GSM) to home-grown standard (Interview, ES1). Second, China Mobile is most profitable and potential operator in China that China Mobile had the capacity and capital to promote TD-SCDMA (Interview ES1, SS2, ES1).

… the state threatens China Mobile: TD-SCDMA or none of 3G licenses. Coupled with impact on Mr. Wang’s political career, China Mobile has no choice but to promote TD-SCDMA (Interview ES1). On the other hand, the state also subsidizes RMB$10 billion (SinoCast, 2009) to compensate for potential loss estimated RMB $30 billion each year (Interview RS5).

In short, China state changes institutional means of supporting core SOE by both subsidies and threat, rather than carrot without stick. The state also changes to assess SOE’s past performance for prospects of TD-SCDMA. Despite the mandatory mission, China Mobile indeed starts to recruit R&D staff with high salary (Interview RS5) and experiments several innovations on TD-SCDMA network deployment, mobile phone launch, and service package to users (Interview IS1).

For the particular case of TD-SCDMA development, this paper contributes to discover that China state experiments and adapts institutions, along with the mentality adjusted from ‘standard matters’ to ‘R&D capacity rules’. More, the macro-level institutional learning also leads to meso-level institutional adaptation in the telecommunication industry. China Mobile acts as a mediator between state and network of firms, with the resources re-distribution and demand for collective action through the whole supply chain. Therefore, China Mobile not only managed to offer users with innovative service and networking build through in-house R&D, but also to organize the preliminary formation of TD-SCDMA production networks.

China Mobile, as a customer rather than rival of equipment manufacturers, had invested RMB$148 billion during 2008 to 2010 through four stages bids of infrastructure construction (BMI, 2010; IEK, 2010). Both local and global firms, such as SOEs Datang and Putian, minying Huawei and MNCs Nokia-Siemens, all compete for TD-SCDMA network building (Wang and Tsai, 2010). The final winners are Huawei and ZTE, for their cheaper but good product quality than MNCs’ and SOEs’ (Interview ES2). It indicates that China Mobile also selects their cooperating partners basing on market performance as the foremost criteria. This is different from the previously protectionism signal that Datang sent, since the SOE was targeted to dominate China market under the umbrella of MIIT, and which formulated the national industrial policy.

China Mobile also realizes that the biggest problem of TD-SCDMA industrialization is the shortage of TD-SCDMA handsets in the market. Under the pressure from mission and profit, China Mobile urges their current partners (e.g. Nokia and Motorola) to produce TD-SCDMA products through replicating the same incentives tools that state imposed upon China Mobile. That is, China Mobile, basing on their market significance, threatens their main suppliers (e.g. Nokia and Motorola): TD-SCDMA products or none of other business (Interview IS1). On the other hand, China Mobile first offered RMB$ 600 million to three chipsets designers and nine handset suppliers, to induce these leading firms to offer cheap products to penetrate China market. Thus, Nokia, HTC, Samsung and some local firms started to launch TD-SCDMA handsets. Most of all, China Mobile plays as a coordinator to integrate the supply chain, from upstream IC design firms to downstream  manufacturers (Interview IS1).

China Mobile awards 12 companies TD-SCDMA research grants [May 17, 2009] (p. 4, emphasis is mine)

China Mobile will provide funding of RMB 600 million ($87.77 million) to 12 mobile phone and chip manufacturers for the research and development (R & D) of terminal devices based on the homegrown TD-SCDMA standard, China Mobile announced on May 17.

According to the announcement, the 12 companies include nine mobile phone manufacturers, namely Motorola Inc., Samsung Corp., Yulong Computer Telecommunication Scientific Co. Ltd., Dopod Communication Corp., LG Electronics (China) Co. Ltd., ZTE Corp., Hisense Group, Guangzhou New Postcom Equipment Co. Ltd. and Huawei Technologies Co. Ltd. along with three chip makers, namely T3G Technology Co. Ltd., MediaTek Inc., and Spreadtrum Communications Co. Ltd.

As China Mobile stipulated that chip makers and mobile phone manufacturers pair up in the R & D project, T3G will work with Motorola, Samsung, Dopod and Huawei while MediaTek will work with Yulong, ZTE and LG. Spreadtrum will collaborate with Hisense and New Postcom.

Motorola, Samsung, Yulong, Dopod and LG, together with their chip maker partners [T3G and MediaTek], will receive combined funding of RMB 310 million ($45.35 million) from China Mobile for R & D of high-end TD-SCDMA mobile phones. The remaining mobile phone manufacturers [Huawei, ZTE, Hisense and New Postcom], together with their chip maker partners [T3G, MediaTek and Spreadtrum], will be responsible for R & D of low-end TD-SCDMA mobile phones and will receive combined funding worth RMB 290 million ($42.42 million) from China Mobile, the announcement said.

China Mobile Reveals TD-SCDMA Handset Subsidy Bidding Results [May 17, 2009] (emphasis is mine)

On May 17, China Mobile (NYSE: CHL; 0941.HK) held a signing ceremony for subsidies targeted at joint TD-SCDMA handset R&D, with nine handset manufacturers and three chip manufacturers signing a “cooperative R&D” agreement. China Mobile will invest RMB 600 mln in the subsidies, driving total investment of over RMB 1.2 bln in TD-SCDMA R&D, with the remaining contributions coming from participating vendors.

6 joint bids won subsidies for China Mobile’s “Flagship Broadband Internet Handset” project: Motorola and 3G chip manufacturer T3G; Samsung and T3G; mobile handset manufacturer Yulong and TD-SCDMA chipmaker Leadcore Technology; Smartphone manufacturer Dopod and T3G; LG Electronics and Leadcore; and ZTE and Leadcore. China Mobile will invest approximately RMB 310 mln in the project.

For the “Low Cost 3G Handset” project, the five successful bids were ZTE and Leadcore; LG and Leadcore; Hisense and wireless baseband chipset provider Spreadtrum Communications (Nasdaq: SPRD); Guangzhou New Postcom and Spreadtrum; and handset manufacturer Huawei and T3G. China Mobile will provide approximately RMB 290 mln of funding for this project.

7 months later these 11 handsets were shown [as per China Mobile’s Dec 17, 2009 press release in Chinese

China Mobile‘s 200 Models of TD Mobile Phone Listing This Year [March 18, 2011]

Recenly Li Yue, president of China Mobile, attended the Results Announcement said that China Mobile has an adequate supply in the 3G mobile phones. Currently, 50 companies are available to TD phones, and another 200 models will be able to supply soon.

At the end of last year, China Mobile has conducted 6 million low-end TD mobile phones tender. And in February this year, China Mobile has conducted 12.2 million high-end TD mobile phones procurement, of which, about 150 million units flagship Internet terminals, 30 million units dual card dual standby terminals, 320 million units multimedia intelligent terminals, 400 million units fashion and entertainment terminals and 320 million units universal intelligent terminals.

Xue Taohai, vice president of China Mobile, said the group will control the handset subsidies in 17.5 billion yuan. It is reported that China Mobile set a new goal for 25 million 3G users this year, and the current 3G network has covered 656 cities.

China Mobile Changes Strategy in Terminal Procurement [April 22, 2011]

Foreign mobile phone makers that has been disappointed in the bidding invitation of China Mobile Ltd. (SEHK: 0941 and NYSE: CHL) for centralized procurement of 6 million TD-SCDMA terminals last year, have turned things around in this year’s first round of centralized procurement kicked off by the leading telecommunications carrier.

Reporters find out that foreign mobile phone makers have won more than half of the share in recent centralized procurement, indicating that China Mobile has adjusted its philosophy in terms of the development of TD-SCDMA terminals, pointed out an insider who declines to reveal his name, saying that the company is not satisfied about current situation for the distribution of TD-SCDMA mobile phones.

A top executive of China Mobile opens out that the sales volume of TD-SCDMA terminals is small, indirectly confirming the report, saying that TD-SCDMA mobile phones have bad quality and high prices.

In the opinion of a researcher of iSuppli, China Mobile has changed its strategy to snatch market share and enlarge user base through low-end TD-SCDMA terminals and will improve the brand influence and boost the sales volume of TD-SCDMA mobile phones through the promotion of flagship terminals.

At the end of 2010, a domestic TD-SCDMA chipmaker has begun preparing for the next year’s centralized procurement of TD-SCDMA mobile phones by China Mobile, since the distribution of TD-SCDMA terminals completely relies on telecom carriers.

The top management of the chipmaker has been determined to win the centralized procurement. However, in February 2011, the announcement of China Mobile about the result disappointed them.

China Mobile has focused on medium- and high-end mobile phones in this year’s first round of centralized procurement while bid winners were all domestic TD-SCDMA terminal makers last year.

The changing philosophy of China Mobile is unfavorable to domestic mobile phone makers, which are mostly oriented to the manufacturing of medium- and low-end TD-SCDMA terminals.

Take the example of upstream chipmaker Leadcore Technology Co., Ltd., its shipment of TD-SCDMA chips topped 13 million in 2010. In last year’s centralized procurement, the company took over half of the share.

In contrast, US IC designer Marvell Technology Group Ltd. (Nasdaq: MRVL) that is oriented to the medium- and high-end TD-SCDMA smart phone market is likely to snatch more than half of the share in the latest centralized procurement.

Whatever strategy China Mobile adheres to, its aim will not change. That is to attract more customers for TD-SCDMA mobile phones. A top executive of Leadcore Technology believes that high-end TD-SCDMA terminals will help China Mobile improve its brand influence. But, to boost sales volume, the company still has to rely on medium- and low-end mobile phones.

(1 USD = CNY 6.51) Source: http://www.nf.nfdaily.cn (April 22, 2011)

Muted group procurement result of TD smartphone in May, indicating backend loaded demand with low SP mix in 2011 [May 24, 2011]

Leadcore, Huawei, and Borqs indicated that China Mobile (CM) procured only 1.2mn TD smartphone (SP) with a minimum order of 200,000 for each model, well below the market expectation of 12mn units with minimum guaranteed order of 800,000 per model. CM has selected six models (three Ophone, two Android, and one feature phone) from Huawei, ZTE, Samsung, Lenovo, Motorola, and Coolpad. They attributed the disappointing central procurement result of TD smartphone to relatively poor quality of phones. That said, Leadcore believes that MIIT has required CM to add 30mn TD-SCDMA subs in 2011 and TD terminal or chipset shipment is likely to be 53mn in 2011. Leadcore is hopeful that feature phone and SP could represent most of the TD phones with fixed wireless terminals at only 3-4mn in 2011. Leadcore expects CM to shift to open channels, which also receives a subsidy through contracts with provincial or local CM subsidiaries; and we predict the mix of open channel and central procurement to increase from 30% and 70% in 2011 to 70% and 30% in 2012, respectively. Similarly, Spreadtrum also expects TD chipset market to reach 45-50mn in central procurement (fixed wireless 35%, feature phone 50%, smartphone 10-15%), and 60mn-70mn units in total (including the open channel). Spreadtrum has seen strong recent demand from open channel. We note that open channel tends to sell more feature phones and fixed wireless phones.

Leadcore and Spreadtrum aim to gain TD market share in 2011

Leadcore believes that it has 50% of TD market share together with Mediatek. Marvell has relocated some of its R&D resources to China and is getting support from OEM. CM would like to give 60% of its SP orders to Marvell. However, in a recent stability test by CM, Leadcore scored at 95% pass rate, with T3G at 93% and MRVL at only 65%.

Rumor: China Mobile Establishes National Handset Procurement Arm [May 27, 2011]

An industry source said recently that China Mobile (NYSE: CHL; 0941.HK) has circulated a memo internally announcing the establishment of a terminals center, to be announced officially in August, that will operate as a national-level handset procurement subsidiary. The operator is currently making necessary internal adjustments in order to transfer staff to the new center.

The new terminals center will be operated like a division of China Mobile, overseen directly by China Mobile headquarters, and will focus on terminal procurement and sales. The center will be comprised of several departments, including products, procurement, marketing, channels, systems support, general services, and finance. While it is being referred to internally as the “mobile terminals center,” externally it will operate like a company.

Previously, the source said, China Mobile’s headquarters had been separate from provincial-level procurement operations, which it will now unify under the new terminals center. If a handset manufacturer is not on the center’s supplier list, it will be unable to promote its handset through provincial subsidiaries.

Earlier reports claimed that China Mobile had planned to transform handset distributor Topssion, which it acquired in March, into a terminal sales subsidiary.

Borqs Unveils Latest OPhone Handsets at 14th China Beijing International High-tech Expo [May 20, 2011] (emphasis is mine)

With the coming of the World Telecommunications Day, the 14th China Beijing International High-tech Expo (the Expo) opened at China International Exhibition Center from May 18th to 22nd, 2011. This Expo was co-organized by several state departments of China, including the Ministry of Science and Technology, Ministry of Commerce, Ministry of Education, and Ministry of Industry and Information Technology. Many innovative enterprises participated into the Expo with their innovation achievements. Borqs, one of the members of China’s National Special Key Projects, were also invited and exhibited the new serial of TD smartphones running on OPhone OS 2.0 or higher.

From “Made in China” to “Created in China”, and then to “China Standards”, enterprises based in Zhongguancun have always been committed to innovation and development since their establishment. As technology advancement and industry transfer are seen everywhere around the world, China Mobile developed and launched the first 3G standard in China, TD-SCDMA, a decade plus ago. As of today, China Mobile has maintained 61.9 million 3G mobile users as well as 26.99 million TD-SCDMA users. Recently, Mr. Jianzhou Wang, the Chairman of China Mobile, pointed out that TD system was no longer a test network but a commercial one covering 656 cities around China with the joint efforts of China Mobile and its industry partners from within and outside the country. Especially, the TD-SCDMA industry chain has emerged in recent years,, consisting of near 50 telecommunication enterprises, including many manufacturers and providers of network, terminals and chips, in and outside China.

OPhone OS is closely related to TD. Up to now, OPhone smartphones account for 50% of TD smartphones. At the Expo, a wide range of TD terminals are exhibited, including many new OPhone-based models. Following its receiving recognition from the state officials at the prior 11th Five-year Plan Major Science & Technology Achievements Exhibition, OPhone OS continued to be all the rage and attracted many visitors at the Expo.

TD-LTE Industry Briefing – May 2011 by China Mobile [May 27, 2011]

TD-LTE Large Scale Trial in China Update –All 6 Cities Have Launched Base Stations

  • All 6 cities have launched base stations. The number of launched Base Stations has reached 20% of the planned ones.
  • The planning of continuous coverage in hot spot areas has been completed in all 6 cities. The constructions are under way:
    – 78% supporting facilities modification accomplished
    – 69% equipments arrived
    – 35% equipments installed
      • Transmission tests have been completed in several cities
      • EPC and Security tests initiated in several cities in April 2011
      • RANtests are planned to start in the end of May 2011TD

GTI Official Website: http://www.lte-tdd.org

The GTI official website was launched during the 1st GTI Workshop [on 27-28 April 2011 in Guangzhou, China]. The website shares the latest information about TD-LTE related News, Events, Reports and Statistics. GTI operators have the rights to access the Working Space on GTI website for technical presentations and further deliverables of GTI.

China Mobile Almost Finishes Pilot TD-LTE Network Deployment [June 7, 2011]

China Mobile, one of the Big Three telecom operators in the country, has completed deployment of a pilot TD-LTE network in most of the cities selected for a planned test, disclosed people familiar with the matter today.

Most of the system equipment makers have completed the first TD-LTE call in cooperation with the branches of China Mobile, according to one of the people, noting that additional telecom equipment makers are expected to make a presence in the program for an expansion of the test.

The TD-LTE network test, kicked off on March 24 with the releasing of document from the Ministry of Industry and Information Technology (MIIT), has been going on smoothly reflected by a group of telecom equipment makers’ success in TD-LTE call.

Huawei Technologies Co., Ltd., one of the top-ranking telecom equipment makers in the country, helped launch the first TD-LTE wireless connection in Shenzhen on April 6, facilitating the rollout of high-speed download service and high-definition video service based on the TD-LTE data card.

TD LTE to revolutionize wireless broadband [May 31, 2011] (emphasis is mine)

During the second international LTE conference held in New Delhi, the industry said that it has become imperative to deploy LTE technology to set standards. With numerous benefits of TD LTE, the industry is graping with deployment challenges while early availability of devices has become another area of concern. Bharti Airtel is conducting trial in Chandigarh. The deployment of TD LTE at right time as well as availability of devices will be a challenge, and it is coming out with a lot of hope.

Speaking at the event, J Gopal, Advisor (Technology), DoT said that they are looking forward for this technology to bridge digital divide and facilitate economic growth. With various consumer-centric advantages, TD LTE is becoming an important tool for every operator today while some of them have already begun trials.

“Eventually we see migration from WiMax to TD LTE and significantly there is a global initiative to promote it. India and China are the leading contenders of this technology, which is mature now,” said Sujit Bakre, head, 4G business development and product management (APAC), Nokia Siemens Networks. Large investments have already been done on 2G/3G and now we should leverage voice onto TD LTE, he added. Bakre reiterated that they bagged two commercial deals in Middle-East and Latin America but however couldn’t name the operators.

Puneet Garg, VP, Networks, Bharti Airtel said that TD LTE is a next step towards broadband wireless and is the fastest BWA technology and has become a realty now. “It will make high speed wireless broadband affordable to urban and rural consumers. This technology facilitate low TCO”, he added.

Rajan S Mathews, director general, Cellular Operators Association of India said that broadband is the single big imperative for the country. “As we are poised to be the largest economy by 2050, therefore we couldn’t afford to miss the broadband bus,” he said. Mathews said that the government is aggressively implementing the national policy on broadband and TD LTE is a great opportunity for the country to get into building standards.

20 Operators Have Joined GTI [May 19, 2011]

Following the 1st GTI Workshop, GTI has gained strong momentum. Till May 19th, 20 operators from Europe, Asia, America and Oceania have formally joined GTI.

These 20 GTI operators are:

Aero2, Belltell, Bharti Airtel, China Mobile, Clearwire, Datame, E-Plus, FarEastone, First International Telecom Corp,KT, Omantel, Nextwave, Packet One, Smoltelecom, SoftBank, Tatung Infocomm, Vividwireless, Vodafone, Voentelecom, Woosh.

GTI was formed to promote the TD-LTE ecosystem as a major standard in mobile broadband technology and drive the early development TD-LTE networks. Seven operators including Aero2, Bharti Airtel, China Mobile, Clearwire, E-Plus, Softbank Mobile and Vodafone jointly kicked off GTI activities in February during Mobile World Congress in Barcelona.

GTI objectives are:

1) Energizing the creation of a world-class and a growth-focused business environment;

2) Delivering great customer experience and bringing operational efficiencies;

3) Promoting convergence of TD-LTE and LTE FDD in order to maximize the economy of scale;

4) Facilitating multilateral cooperation between and/or among operators.

GTI has started preparing the 2nd Workshop and initiated the discussions on the technical areas which will be investigated among GTI operators.

Vividwireless joins global TD-LTE promotion initiative [May 19, 2011]

vividwireless a Seven Group Holdings Limited [media-related] company, owns and operates Australia’s first 4G wireless broadband network. vividwireless launched in Perth in March, 2010. The network has since been expanded to cover select parts of metropolitan Sydney and Melbourne, Adelaide, Canberra and Brisbane.

Vividwireless – which presently operates mobile WiMAX networks in capital cities – has joined the Global TD-LTE Initiative (time division long term evolution) launched at Mobile World Congress in Barcelona in February.
GTI, which held its first working meeting in Guangzhou earlier this month, was formed to promote the TD-LTE ecosystem as a major standard in mobile broadband technology and drive the early development TD-LTE networks. Its founding members were ChinaMobile, Bharti Airtel, Softbank Mobile, Vodafone, Clearwire, E-Plus, and Aero2. Vividwireless says it was invited to join at the launch.

Commenting on the launch of GTI at the time, Julien Grivolas, principal analyst at Ovum said: “A certain scale for LTE TDD was guaranteed by strong support from China Mobile, the largest operator in the world. However, as TD-SCDMA [China’s 3G mobile standard] proved to its cost, this is not necessarily enough to make LTE TDD technology a global success. China Mobile consequently considered it strategically vital to garner support from other key players.”

He added: “This LTE TDD evangelism started years ago, often behind the scenes, and finally came to fruition with the creation of the GTI. As a consequence, the main merit of the GTI announcement really lies in the official support for LTE TDD (and better harmonisation with LTE FDD) from a number of international players.

“With heavyweights such as China Mobile, Bharti Airtel, Softbank Mobile, and Vodafone Group – serving more than 1.1 billion subscribers in total at the end of 2010 – the GTI is certainly heading in the right direction. However, to further contribute to the virtuous cycle that the GTI aims to fuel, the organisation remains fully open to all operators and technology vendors interested in promoting LTE TDD.”

Vividwireless said that the GTI would “organise a series of activities to bring TD-LTE operators and vendors together to share development strategies and technology know-how, expediting the development of terminals and fostering global roaming and low-cost terminals.”

Vividwireless trialled LTE in Sydney earlier this year and says “The trials…demonstrated that TD-LTE can deliver wireless broadband that is faster than ADSL2+, with peak speeds as high as 128Mbps and consistent ‘real world’ speeds between 40 – 70Mbps.”

Following the trial the company said it was sufficiently impressed to consider using TD-LTE rather than WiMAX for its planned major east coast network rollouts. CEO Martin Mercer said “The technology is far more mature than we had expected. The Huawei SingleRAN solution [used in WiMAX mode in Vividwireless’ networks today] is basically ready to go today and is at a price point that would enable us to take service to market at prices comparable to what we offer today.

“We could deploy this technology in our east coast rollout and provide customers with services superior to those we provide today and equivalent prices. The question for us now based on the results of the trial is: do we rollout TD-LTE on the east coast…and do we deploy it in other markets as well?

vividwireless First To Trial 100Mbps Broadband TD-LTE In Australia [Nov 10, 2010] (emphasis is mine)

Leading 4G wireless broadband provider, vividwireless, today announced the first
Australian trial of superfast mobile wireless broadband – TD-LTE – (Time-Division
Duplex Long Term Evolution) which can deliver peak speeds of more than 100Mbps.
vividwireless CEO Martin Mercer said the trial with technology partner Huawei Australia
was part of the company’s continuing technology roadmap assessment.

“vividwireless is trialing the advanced TD-LTE technology to evaluate and determine the
very best mobile voice and broadband service to meet our customers’ future needs.
vividwireless is determined to ensure that it retains its ranking as Perth’s fastest wireless
broadband provider,” he said.

Huawei’s global experience with the technology has found TD-LTE can deliver wireless
broadband that is much faster than ADSL2+, with peak speeds of more than 100Mbps.
The trial will cover the market readiness of TD-LTE, including the technology’s capacity,
coverage and ‘real world’ performance.

“Demand for high speed wireless connectivity is increasing rapidly. Customers want fast,
reliable HD video streaming, gaming, communications, transactions and other
entertainment to be available wherever they are,” said Mr Mercer.

“Our current network satisfies this demand and this trial will help us to ensure that we
continue to be Australia’s leading wireless broadband provider,” he added.

The trial will commence in December 2010 in inner-city Sydney around Redfern, as well
as Western Sydney around Horsley Park. These locations will allow vividwireless to test
the performance of the technology in high demand, high density, inner city conditions
such as apartments and cafes, as well as suburban conditions.

Huawei Australia Chief Technology Officer Peter Rossi said, “Having worked with
vividwireless in rolling out its Perth network and the initial footprints in Sydney,
Melbourne, Adelaide, Canberra and Brisbane, we are delighted to be working on this
TD-LTE trial.

“Huawei’s SingleRAN solution allows vividwireless to make a smooth transition from
WiMAX to TD-LTE to suit its network requirements, and with Huawei holding the title of
the world’s number-one LTE essential patent holder
, vividwireless will always have a
cutting-edge mobile network,” he concluded.

Ovum encourages operators in developed countries to be pragmatic [May 6, 2011] (emphasis is mine)

Ovum has highlighted the potential of LTE TDD on many occasions, but has also pointed out the various challenges it faces. In particular we have highlighted that the current status of the device ecosystem may negatively impact the pace of rollout. Devices are always a crucial success factor for any kind of technology, but for LTE TDD they are even more important. This is largely due to the fact that most of the operators that have announced aggressive LTE TDD plans are based in emerging markets (China, India, and Russia).This means that low-cost devices will have to be made available quickly to serve these markets. In that sense, the creation of the Global TD-LTE Initiative at Mobile World Congress 2011 is a step in the right direction.

Launch of the GTI accelerates ecosystem development

In February 2011, China Mobile, Bharti Airtel, Softbank Mobile, Vodafone, Clearwire, E-Plus, and Aero2 officially launched the Global TD-LTE Initiative (GTI). The organization will focus on promoting the fast development of LTE TDD technology, promoting the convergence of LTE TDD and FDD modes to maximize economies of scale, and sharing the ecosystem with other TDD technologies, such as the Japanese eXtended Global Platform (XGP) technology.

In the mobile telecoms industry, scale is vital – something that WiMAX can testify to. A certain scale for LTE TDD was guaranteed by strong support from China Mobile, the largest operator in the world. However, as TD-SCDMA proved to its cost, this is not necessarily enough to make LTE TDD technology a global success. China Mobile consequently considered it strategically vital to garner support from other key players (as stated in our report TD-LTE, China Mobile’s long-term engagement with ‘TD’, OVUM051850). Attracting vendors’ interest was the easy part given China Mobile’s size, but making sure that other operators would consider the LTE TDD option required more imagination. This LTE TDD evangelism started years ago, often behind the scenes, and finally came to fruition with the creation of the GTI. As a consequence, the main merit of the GTI announcement really lies in the official support for LTE TDD (and better harmonization with LTE FDD) from a number of international players. With heavyweights such as China Mobile, Bharti Airtel, Softbank Mobile, and Vodafone Group – serving more than 1.1 billion subscribers in total at the end of 2010 – the GTI is certainly heading in the right direction. However, to further contribute to the virtuous cycle that the GTI aims to fuel, the organization remains fully open to all operators and technology vendors interested in promoting LTE TDD.

China Mobile will not be the first to launch commercial LTE TDD services

The GTI launch event in Barcelona confirmed what we expected (see the report Global opportunities for LTE TDD, OT00063-016): with a launch expected in 2012, China Mobile will not be the first operator in the world with commercial LTE TDD services. However, it is true that the operator’s large-scale trial networks to be deployed in seven cities in 2011 will be much bigger than the majority of LTE (TDD and FDD) commercial networks available at that time.

Among the LTE TDD frontrunners, the GTI event confirmed Aero2 from Poland as a candidate to become the first with commercial services, in as early as May 2011. The operator will use equipment from Huawei to construct a converged LTE FDD/TDD network. Softbank Mobile also unveiled plans to commercially launch LTE TDD services in Japan before the end of 2011. Like Aero2, the Japanese operator will use the 2.5GHz spectrum band. Softbank Mobile recognizes that the timeline set for its LTE TDD project is aggressive, but claimed that it has full confidence in vendors to overcome the various challenges. In Softbank’s opinion, LTE TDD is better suited to handle mobile data services. This is because the technology’s asymmetric nature fits well with mobile broadband data usage patterns and because of the greater technical efficiency of LTE TDD versus LTE FDD in terms of smart antenna systems. Finally, the official support of LTE TDD by Bharti Airtel means that there are now three 2.3GHz broadband wireless access spectrum owners committed to rolling out the technology in India. Speaking at the event, the CEO of Bharti Airtel, Sanjay Kapoor, stated that support from operators in India and China will ensure scale for LTE TDD and definitely signals the end of WiMAX’s hopes.

Ovum encourages operators in developed countries to be pragmatic

So far, operators have continued to favor the FDD variant of LTE, especially in developed markets. However, we recommend that these operators, which sometimes own unused TDD spectrum, closely monitor the development of the LTE TDD market. The reason is simple: given the rise of data traffic, all spectrum is valuable. They should continue to adopt a very pragmatic approach to LTE TDD. This consists of ensuring LTE FDD/TDD integration into network equipment now and into devices once the LTE TDD device ecosystem is sufficiently mature. If LTE TDD becomes widely adopted, by 2014-15 LTE FDD operators may well be tempted to leverage LTE TDD cost benefits to add extra capacity to their networks.

The E-Plus Group, China Mobile and ZTE sign a MOU for TD-LTE field trial in Germany [Feb 14, 2011]

The E-Plus Group, China Mobile Communications Corp. and ZTE will work together to launch a TD-LTE field trial in Germany in Q1 2011. The trial is based on 2.6 GHz spectrum that E-Plus acquired in the German spectrum auction. China Mobile, with its leading position and rich experience in the operation and maintenance of TDD networks, will empower this trial. ZTE will provide base stations developed on the advanced SDR platform and co-siting solution of LTE FDD/TD-LTE, which is a breakthrough in the industry.

The E-Plus Group is the third largest mobile network operator in Germany. The E-Plus Group has been one of the most innovative mobile operators during years. After revolutionizing the mobile voice market for larger user groups E-Plus is now opening the mobile data market for the masses with low-priced data tariff schemes and the roll-out of a HSPA+ network with speeds up to 21.6 Mbps. On top of the high speed mobile data network roll out, E-Plus will now test TD-LTE in the field. The E-Plus Group is one of the founding members of the Next Generation Mobile Networks (NGMN) Alliance.

The E-Plus Group and ZTE agreed and scheduled a field trial program for 2011 consisting of several streams to investigate the capabilities of ZTE’s commercial SDR equipment and best utilisation of the spectrum holdings of E-Plus in 1.8 GHz, 2.1 GHz and 2.6 GHz, both TD-LTE and LTE FDD.

China Mobile claims the largest number of mobile subscribers in the world. From TD-SCDMA to TD-LTE, China Mobile is devoted to promoting TDD industry being equipped with rich experience in TDD network deployment. Furthermore, China Mobile is pro-active in TDD technology globalization and convergence of TD-LTE and LTE FDD industry by seeking cooperation with overseas operators in Europe, Asia, America and Australia.

With joint effort of the E-Plus Group, China Mobile and ZTE, this trial will not only demonstrate the latest progress of TD-LTE/LTE FDD convergence in standards and industry development, but also lay an excellent ground for the full commercialization of TD-LTE.

About the E-Plus Group
The E-Plus Group is the challenger on the German mobile communications market. Simple services tailored to customer needs and a major reduction in call and data charges can be traced back to the initiative of the third-largest mobile network operator in Germany. After revolutionizing the voice market for larger user groups now the company opens the mobile data market for the masses by its massive network roll-out and highly attractive low-priced data tariff schemes. As a result of innovative business models, modern structures and strong partnerships the E-Plus Group was able to significantly strengthen its market position and show a more dynamic and profitable development than the market. Since 2005 E-Plus Mobilfunk GmbH und Co. KG has developed into a family of brands offering target group-specific services and thus breaks new ground in mobile communications in Germany. More than 20 million customers are using the network of the E-Plus Group to make calls and send text messages or data. The Group generates an annual revenue of €3.2 billion (2010) and employs more than 2,500 people (FTE) in Germany.

326 Million Dual-Mode 4G Devices to be Activated by 2016 [May 31, 2011]

326 Million Dual-Mode (3G + LTE) Devices will be Activated by 2016 according to Maravedis’ latest research titled “Global 4G Device Forecast 2011-2016”.

“All LTE devices activated during 2010, including USB data cards, modems and notebooks, were single-mode,” said Cintia Garza, author of the report. “However, LTE+3G smartphones have emerged during 2011 as more LTE operators begin to add LTE to their device offering, in particular smart phones whose adoption will be key to LTE uptake.”

In the United States, Sprint’s early success with WiMAX smart phones suggests a very promising uptake for LTE smart phones. Many other carriers around the world are also looking at introducing smart phones in their LTE device portfolio by the end of 2011, such as NTT DoCoMo (Japan), and Yota (Russia).

“By 2013, more than 50% of LTE devices activated worldwide will support both FDD and TDD duplex modes, once TD-LTE deployments consolidate in China, India, Malaysia, Korea and other APAC countries,” continued Garza. “On the other hand, 75% of the LTE devices will support legacy systems (2G/3G) and 9% will support WiMAX technology; these devices will mainly include smart phones, tablets and USB dongles”.
Tablets are also one of the most promising devices in the 4G device market. Maravedis’ report predicts tablet shipments will grow from 46 million in 2011 to nearly 150 million by 2016. Apple iOS is expected to remain the most popular tablet for the coming years, reaching 46% market share by 2016.

Additional Research Findings: 

  1. 260 million dual-mode (TD LTE + FDD LTE) devices will be activated by 2016
  2. Android will account for 48.5% of the smart phone market, Windows 21% and iPhone (iOS) 16.5% by 2016.
  3. APAC and Europe will account for the largest number of smart phones and tablets activated by 2016.
  4. By 2016, 95% of the tablet installed base will be 3G/4G enabled.

Source:Maravedis

LTE Subscriptions to Experience Growth of over 3,400% Between 2011 and 2015 [June 9, 2011]

Between mobile applications, data, voice, and streaming and broadcast video, global wireless bandwidth usage has increased ten-fold since 2008, and there are no signs of it stopping. This obsession to connect anywhere, any time, on any device, viewing any type of digital content is about to have a very real and sudden impact on the wireless world. In-Stat (www.in-stat.com) forecasts that LTE subscriptions will experience a 3,400% explosion of growth between 2011 and 2015.

“Although there are regional variations in the adoption of cellular services, due in part to current available technology, LTE will clearly be the 4G service of choice moving forward,” says Chris Kissel, Analyst.  “3G will remain the predominant service subscription, also with robust growth, but over the next 5 years things will trend toward LTE as 4G service availability is ramped up.”

Recent research by In-Stat found the following:

  • North American FDD-LTE subscriptions are set to increase roughly 2100% from 2011 to 2015. In 2015, the ratio of North American FDD-LTE subscribers to TDD-LTE subscribers will be almost 14 to 1.
  • 3G subscriptions remain dominant with WCDMA technology capturing 26% of 3G subscriptions.  CDMA Rev B will be the smallest segment of the 3G technologies based on subscriptions.
  • 2G service subscriptions will peak in 2012, then they will begin a slow decline during the remainder of the forecast period.
  • More than half of all new deployments are LTE.

Mobile broadband subscribers overtake fixed broadband [June 7, 2011] (“in the text” emphasis is mine)

Market research firm Infonetics Research today released excerpts from its latest Fixed and Mobile Subscribers market forecast report

ANALYST NOTE

“As we predicted, mobile broadband subscribers surpassed wireline broadband subscribers in 2010 (558 million vs. 500 million). Fixed-line services are not dead, though, especially with China giving a boost to the worldwide wireline broadband base with its massive fiber-based program led by the Chinese government, which has set a 20Mbps benchmark for all broadband subscribers, where most today receive 2Mbps to 3Mbps at best,” notes Stéphane Téral, Infonetics Research’s principal analyst for mobile infrastructure.

FIXED AND MOBILE SUBSCRIBERS MARKET HIGHLIGHTS

  • Infonetics forecasts the number of mobile phone subscribers to grow to 6.4 billion in 2015 (the current global population is 6.9 billion)
  • In 2010, Asia Pacific accounted for nearly half of all mobile subscribers
  • The number of cellular mobile broadband subscribers jumped almost 60% in 2010 to 558 million worldwide and should top 2 billion by 2015
  • Access lines (residential, business, and wholesale PSTN, POTS, and ISDN connections) are forecast to continue declining, falling to 759 million worldwide by 2015
  • As access lines disappear, new forms of wireline broadband continue to thrive; the number of wireline broadband subscribers (DSL, cable, PON, Ethernet FTTH, FTTB+LAN) hit 500 million worldwide in 2010
  • WiMAX, in high demand in many regions with inadequate wired infrastructure, remains modest in scale but not growth: despite the global recession, the number of WiMAX subscribers grew 75% in 2010, with more strong growth ahead, reaching 126 million in 2015
  • The number of VoIP subscribers (including VoIP over access lines and over other broadband lines, such as cable) is forecast to grow from 157 million in 2010 to 264 million in 2015
  • While growth in the number of video subscribers is being challenged by over-the-top (OTT) and free-to-air services, telco IPTV subscribers are forecast to triple between 2010 and 2015, and digital and satellite cable subscribers will see healthy annual growth as analog cable video subscribers continue their inevitable decline

REPORT SYNOPSIS

Infonetics’ report provides worldwide and regional market size and forecasts through 2015 for access lines and fixed and mobile subscribers, including cable broadband, DSL, PON and Ethernet FTTH, residential and SOHO VoIP, telco IPTV, cable video, satellite video, mobile (GSM, W-CDMA, TD-SCDMA, cdmaOne, CDMA2000), cellular mobile broadband (W-CDMA/HSPA, CDMA2000/EV-DO, LTE, WiMAX, phone-based, PC-based), WiMAX (802.16m, 802.16e, 802.16d), and IMS subscribers. See report prospectus for details.

The report includes customizable pivot charts and analysis comparing subscriber types, regional service provider subscriber highlights, fundamental drivers of the market, technology developments, excerpts from Infonetics’ service provider capex reports, and analysis of overall market conditions for service providers, enterprises, subscribers, and the global economy.

Gartner: media tablets are the new segment next to mobile PCs and desktops, as well as web- and app-capable mobile phones

Between March 30 and April 13 Gartner delivered quite new research on the IT spending forecasts till the year 2015. This presents a radically changed market outlook best viewed via the following April 5 Gartner webinar slide (warning: Gartner distinguishes between “media tablets” and “mobile PCs” while other sources are referring to “tablet PCs” in general which are including Microsoft legacy tablet PCs and upcoming Windows slates in addition to Gartner’s “media tablets”):

Gartner on PC and Media Tablet Forecast -- 5-April-2011

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 IHS iSuppli’s recent mobile broadband device forecast with constituents of Apple’s dominant position in media tablet space as well as serious technical and market problems with the original version of Honeycomb up to now

Update: Consumer Education on Unique Use Cases Remains Largest Barrier to Media Tablet Adoption, According to Survey [ABI Research, June 13, 2011] (emphasis is mine)

It has been suggested by some that media tablets are slowly killing the netbook market, and that both device types are “cannibalizing” sales of personal computers. But results of a survey of 1,142 consumers conducted by ABI Research in March, 2011 reveal that netbooks and media tablets are actually neck-and-neck in terms of consumer interest. 25% of respondents rated themselves as either “extremely” or “very” interested in acquiring a netbook, while for media tablets, the number was 27%. Purchases of these companion devices are likely to result in a prolonged PC lifecycle and delay replacement.

But according to mobile devices group director Jeff Orr, “Nearly half of those surveyed, however, report that they are either ‘not very’ or ‘not at all’ interested in purchasing a media tablet. The most common reason for the lack of interest is ‘I don’t see the need’, selected by 60% of this group.”

Although media tablets are grabbing today’s headlines, they still face some challenges to adoption. “What activities can media tablets perform that are not already well-addressed by laptop/netbook PCs or smartphones?” Orr asks. “This remains the single largest barrier to consumer interest.”

A little more than half believe that the primary use for the media tablet will be entertainment. In line with this result, entertainment-related applications are the ones that most people report they would likely use on the media tablet:

•       82% intend to use email
•       71% expect to use a web browser
•       57% plan to watch TV or download movies
•       56% intend to use social networking
•       55% plan to play games
ABI Research conducted a similar survey on netbooks in 2009, when interest levels were shown to be higher. Moreover, the netbook use-case appears to be changing, from a focus on productivity applications towards the consumption of entertainment content. Orr says, “This change is consistent with potential buyers realigning expectations to match modern netbook capabilities.”

End of Update

Suggested associate and/or prelimary reading from this trend-tracking blog:
China Mobile repositioning for TD-LTE with full content and application aggregation services, 3G [HSPA level] is to create momentum for that [June 18, 2011]
Acer repositioning for the post Wintel era starting with AMD Fusion APUs [June 17, 2011]
Barnes & Noble NOOK offensive [May 25, 2011]
Microsoft on five key technology areas and Windows 8 [May 24, 2011]
E Ink and Epson achieve world-leading ePaper resolution [May 23, 2011]
Chromebook / box with Citrix Receiver going against Microsoft [May 12, 2011]
Amazon Tablet PC with E Ink Holdings’ Hydis FFS screen [May 3, 2011]
E Ink Holdings EPD prospects are good [April 30, 2011]
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]
Acer & Asus: Compensating lower PC sales by tablet PC push [March 29, 2011]
ASUS Eee Slate based Windows marketing from Microsoft [March 21, 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]
Kinoma is now the marvellous software owned by Marvell [Feb 15, 2011]
Marvell to capitalize on BRIC market with the Moby tablet [Feb 3, 2011]
Changing purchasing attitudes for consumer computing are leading to a new ICT paradigm [Jan 5]
CES 2011 presence with Microsoft moving to SoC & screen level slot management that is not understood by analysts/observers at all [Jan 7]
Android 2.3 (Gingerbread) and 3.0 (Honeycomb) [Dec 30, 2011]
Hanvon – E-Ink strategic e-reader alliance for price/volume leadership supplementing Hanvon’s premium strategy mostly based on an alliance with Microsoft and Intel [Dec 21, 2011]
Intel’s industry position and prospects for years ahead [Dec 9, 2010]

For surrounding details on the new Gartner research see the presentation from the IT Spending Forecast, 1Q11 Update [April 5, 2011] Gartner webinar.

Regarding the bright prospects of the media tablets one should consider the following Gartner press releases and related blog posts as well:

Gartner Says Apple iOS to Dominate the Media Tablet Market Through 2015, Owning More Than Half of It for the Next Three Years [April 11, 2011]

Despite mounting competition from other operating systems (OSs), Apple’s iOS will continue to own the majority of the worldwide media tablet through 2015, according to Gartner, Inc. Due to the success of Apple’s iPad, iOS will account for 69 percent of media tablet OSs in 2011, and represent 47 percent of the media tablet market in 2015.

Gartner analysts said Apple iPad did to the tablet PC market what the iPhone did to the smartphone market: re-invented it. A media tablet is not just a different form factor to perform the same tasks that can be done on a PC. Tablets deliver a richer experience around content consumption, thanks to the ecosystem they support. The richer the ecosystem, the stronger the pull for consumers.

“Seeing the response from both consumers and enterprises to the iPad, many vendors are trying to compete by first delivering on hardware and then trying to leverage the platform ecosystem,” said Carolina Milanesi, research vice president at Gartner. “Many, however, are making the same mistake that was made in the first response wave to the iPhone, as they are prioritizing hardware features over applications, services and overall user experience. Tablets will be much more dependent on the latter than smartphones have been, and the sooner vendors realize that the better chance they have to compete head-to-head with Apple.”
Google’s Android OS is forecast to increase its worldwide share of the media tablet market from 20 percent in 2011 to 39 percent in 2015 (see Table 1). Analysts said Google’s decision not to open up the Honeycomb, its first OS version dedicated to tablets, to third parties will prevent fragmentation, but it will also slow the price decline and ultimately cap market share.

“Volume will be driven by support from many players, the ecosystem of applications for tablets getting more competitive and some platform flexibility allowing lower price points,” said Roberta Cozza, principal analyst at Gartner. “The new licensing model Google has introduced with Honeycomb enables Google to drive more control, allowing only optimal tablet implementations that don’t compromise quality of experience. This might mean that prices will drop at a slower pace than what we have seen in the smartphone market.”

Table 1
Worldwide Sales of Media Tablets to End Users by OS (Thousands of Units)

 OS 2010 2011 2012 2015
iOS   14,766   47,964    68,670   138,497
Market Share (%) 83.9 68.7 63.5 47.1
Android 2,502 13,898 26,382 113,457
Market Share (%) 14.2 19.9 24.4 38.6
MeeGo 107 788 1,271 3,057
Market Share (%) 0.6 1.1 1.2 1
WebOS 0 2,796 4,245 8,886
Market Share (%) 0 4 3.9 3
QNX 0 3,901 7,134 29,496
Market Share (%) 0 5.6 6.6 10
Other Operating Systems 234 432 510 700
Market Share (%) 1.3 0.6 0.5 0.2
Total Market 17,610    69,780    108,211    294,093

Source: Gartner (April 2011)

With the migration of Blackberry devices to QNX – the OS used on the Blackberry PlayBook – in 2012, RIM will be able to offer users a consistent experience across its whole product portfolio and create a single developer community. While QNX is a strong platform that delivers on performance, graphics and multitasking features, Gartner analysts said success in the media tablet market will be driven by richness of ecosystem.

“It will take time and significant effort for RIM to attract developers and deliver a compelling ecosystem of applications and services around QNX to position it as a viable alternative to Apple or Android. This will limit RIM’s market share growth over the forecast period,” Ms. Milanesi said. “It will be mainly organizations that will be interested in RIM’s tablets because they either already have RIM’s infrastructure deployed or have stringent security requirements.”

Gartner analysts said platforms such as MeeGo and WebOS, which currently have a weak presence in the smartphone market, will have a limited appeal unless they can grow that business.

“Smartphone users will want to buy a tablet that runs the same operating system as their smartphone. This is so that they can share applications across devices as well as for the sense of familiarity the user interfaces will bring,” Ms. Milanesi said. “Vendors developing on Android should be prepared to see more cross brand ownership as some users might put OS over brand when it comes to the purchasing decision. Improvements on usability and brand recognition are the strongest differentiators they can focus on.”

A media tablet is a device based on a touchscreen display (typically with a multitouch interface) whose primary focus is the consumption of media. The devices have screens with a diagonal dimension that is over 5 inches and may include screens that are as large as is practical for handheld use, roughly up to 15 inches. The media tablet runs a lightweight OS such as Android and iOS that is more limited than, or a subset of, the traditional fully featured OS such as Windows.

Gartner’s detailed forecast is available in the report “Forecast: Media Tablets by Open Operating System, Worldwide, 2008-2015.” The report is available on Gartner’s website at http://www.gartner.com/resId=1624614.

Gartner Says Media Tablets Help Drive Worldwide IT Spending Up 5.6 Percent in 2011 [March 30, 2011]

Gartner has added media tablets, such as the iPad, to its computing hardware spending estimates beginning this quarter. Including media tablets has increased Gartner’s computing hardware growth outlook from 7.5 percent to 9.5 percent for 2011 (see Table 1). Worldwide media tablet spending is projected to reach $29.4 billion in 2011, up from $9.6 billion in 2010. Global spending on media tablets is forecast to increase at an annual average rate of 52 percent through 2015.

The addition of media tablets, reinforced by an expected additional decline in the value of the dollar, accounts for the increase in top-line growth,” said Richard Gordon, research vice president at Gartner. “Absent the addition of media tablets, the forecast would have slightly declined in constant-dollar terms; however, with their addition, there’s virtually no change in underlying forecast growth at the level of overall IT.”

Gartner analysts said this stable forecast outlook comes despite political unrest in the Middle East, while the impact on IT markets of the recent natural disasters in Japan is yet to be fully understood.

How much will be spent on Media Tablets in 2015? [March 30, 2011] (emphasis is mine)

Our latest global IT spending forecast is released today and for the first time we’ve included Media Tablets in our spending estimates.

Big deal you might think … what took you so long? And anyway, what difference would a few Media Tablets make to the overall numbers?

The trouble with forecasting the market for new electronics devices is that we need to beware of the hype; for every gadget that achieves market success there are dozens of failures. That said, sometimes it becomes clear early on that a new product is going to live up to expectations of rapid market adoption and that’s the case with Media Tablets, whose time has definitely come.

In our latest forecast update, the 1Q11 iteration, we estimate that about $10B was spent on Media Tablets last year – that’s about 18 million units at an average priced of $550 each. In 2015, we forecast that close to 300 million (!) units will ship with an average price of $250 each– I’ll do the math for you; that’s nearly $80B in annual spending on Media Tablets!

We recently downgraded our PC forecast through 2015, partly because we assume some substitution of PCs by Media Tablets. Nevertheless, spending on PCs and Media Tablets combined is forecast to be about $400B in 2015, with Media Tablets taking a 20% share.

For more detail of our latest global IT spending forecast, including an early assessment of the impact of the recent natural disasters in Japan and the political unrest in the Middle East, check out IT Spending, Worldwide, 1Q11 Update

Most recent IT spending forecasts are always available here: www.gartner.com/quarterly-it-forecast

Then Gartner delivered its next webinar on the iPad and Beyond: The Media Tablet in Business [April 13, 2011]

Here the company took an extended look to the market as best represented by these two slides from the attached to the webinar presentation:

Gartner on Common Target Devices -- 13-April-2011

Gartner on Media Tablets in the Larger Scheme -- 13-April-2011

So what is the story?Here Gartner’s message is the following (extracted as text from the slides which follow the above two):

    1. Computing Behavior Changes, as reported by mobile salesforce workers per:
      – laptop/smartphone scenarios:
      >>> 7 sessions with 24.0 mins duration for laptops
      >>> 26 sessions with 1.5 mins duration for smartphones
      – laptop/[media] tablet/smartphone scenarios:
      >>> 4 sessions with 36.0 mins duration for laptops
      >>> 12 sessions with 7.0 mins duration for [media] tablets
      >>> 19 sessions with 1.2 mins duration for smartphones
    2. Tablets and Smartphones Will Be Elements of Other Products and Systems
    3. Apple iOS: The Bechmark:
      – Consumer first, enterprise second
      – Third Party Management Tools
      – Weak in integrated collaboration, social application support, cloud services
      Recommendation for Enterprise CIOs: Consider to meet user demand and for near-term projects
    4. Google Android: Momentum
      – Fast innovator, not afraid to experiment
      – Surpasses Apple in overall features
      – Fragmentation is a major threat
      – Weak app validation
      Recommendation for Enterprise CIOs: Consider with enterprise-aware supplier
    5. RIM QNX: Enterprise Focus
      – QNX: stable OS but with new UI
      – Catch-up on apps and ecosystem
      Recommendation for Enterprise CIOs: Consider if already a Blackberry shop; Watch app availability, Android support
    6. Microsoft Windows 7: Legacy
      – “Heavy” OS in cost and resource requirements
      – Tablet OS on ARM not due until 2012
      Recommendation for Enterprise CIOs: Consider for traditional tablet PC hardware refresh, hardened legacy apps and meeting endpoint security demands
    7. HP WebOS: Coming from Behind
      – Focus on sync across platforms
      – Potential as strong enterprise player
      – Major work required to build apps store and ecosystem
      Recommendation for Enterprise CIOs: Watch ecosystem and apps
    8. HTML 5 Gets Strong Support
      – APIs include:
      >>> Offline Web applications
      >>> Canvas tag for 2D drawing
      >>> Offline storage database
      >>> Document editing
      >>> Drag and drop
      – Will the OS be relevant in the future?
      >>> Backing from Apple, Google, Nokia and others
      – JavaScript performance becomes important
      – Expect HTML extension and browser incompatibilities; Mobile Enterprise Application Paltforms can help

The press release Gartner Says There’s No Reason to Delay, CIOs Should Be Experimenting With Media Tablets in Business [April 5, 2011] provided these encouragement for enterprise IT (emphasis is mine):

Media tablets are presenting a variety of new opportunities for businesses, but they are also requiring a new set of policies, technologies and skills for enterprises, according to Gartner, Inc.

CIOs are determined not to make the same mistakes they made with smartphones, which were often written off early as expensive and frivolous toys, or executive status symbols— which then left room for more inventive leaders who saw the competitive advantage that mobile applications would bring,” said David Willis, research vice president at Gartner. “They are also more willing to see that they don’t need to supply and manage every device that employees use at work: Consumerization is here to stay, and moving very fast. If you can think of an application for tablets, your competition may well be thinking in the same way — and acting on it. It is time to explore the use of media tablets in business.”

The impact of the media tablet in the eyes of the public is much greater than would be believed from the number of units shipped. Gartner expects media tablet shipments to be approximately 69 million in 2011, which is only a small fraction of the total number of application-capable mobile devices, such as smartphones. Yet already the impact of the device on other forms of computing is great.

The media tablet device itself is only part of the story. Gartner analysts said the packaging of hardware and software that Apple created with the iPad, along with the ecosystem of applications and media that surrounded it has made the real difference. Media tablets present a variety of new opportunities for business, while supplementing traditional uses of notebooks and smartphones.

The iPad, and the larger wave of media tablets, has captured the imagination of business leaders. Some companies have issued them to business and IT leaders in the spirit of exploration. Others see areas in which they can use media tablets to bring computing into settings that were not practical or were too cumbersome to use traditional approaches,” said Mr. Willis. “For the consumer, the iPad brought a casual but rich experience into the living room, or the train, or while waiting in line at the bank. In turn, IT organizations are finding new places where tablets can deliver information and media in new ways.”

Mr. Willis pointed out that companies that had already recognized the flood of consumer devices coming into business, and had figured out a way to leverage it rather than fight it, have been more-prepared to support media tablets. Those who embraced “managed diversity” and figured out how to manage and secure iPhones, were developing strategies to manage and keep iPads within weeks of its launch.

Gartner has long maintained that media tablets are neither “better laptops,” nor “better smartphones,” but complement both. When compared with laptops, media tablets activate instantly, allowing a user to get right to what he or she needs, immediately, without long and frustrating startup times. They have exceptional battery life and are responsive, tactile and inviting. However, in a common mobile-worker scenario, employees may travel with a media tablet during the day, but then return to their laptops in the evening for heads-down data entry or content creation.

“Sales leaders are clamoring to adopt media tablets with their sales teams, as a more engaging way to share sales collateral and promotional materials. And it won’t stop there: Next will come customer relationship management systems, and order entry and sales configuration applications. For sales managers, media tablets will be a natural platform for business analytics and performance dashboards,” said Mr. Willis. “In other settings, the intimacy of using a media tablet supports more personal interactions. Doctors, nurses and medical technicians find they can sit down with a patient and help that patient understand a diagnosis, walk through a medical procedure and describe a therapy with them. Retail clerks can use tablets to display customized clothing for a customer. Conference attendees can take surveys on their own, with no training required. The opportunities are huge.”

However, just as media tablets won’t replace PCs, Gartner does not believe that they will replace mobile phones as voice devices, even in the smaller form factors, such as those with 7-inch displays. Nevertheless media tablets still have enormous potential in the workplace, although who stands to benefit most from the phenomenon remains to be seen.

“Fundamentally, the market battle will not hinge on features and specifications; on the fit and finish of a given device; or even on a device at all. The platform that will prevail will have a strong supporting ecosystem of developers producing a wide range of applications. And in this area, Apple is far ahead of any competition,” Mr. Willis said. “Not only does it have a first-mover advantage in the device itself, but it has built a curated application distribution mechanism in the App Store that is notable both for how users hold it in high regard and how detractors see it as a limitation. In the end, Apple’s lead will be very difficult to beat.”

Mr. Willis will provide more detailed analysis during the upcoming Gartner webinar “iPad and Beyond: The Media Tablet in Business” on Wednesday April 13 at 10:00 a.m. and 1:00 p.m. Eastern time. To register for the complimentary webinars, please visit http://my.gartner.com/portal/server.pt?open=512&objID=202&mode=2&PageID=5553&ref=webinar-rss&resId=1586614&prm=WB_IPD11R.

Additional information is provided in the Gartner Special Report ” iPad and Beyond: The Media Tablet in Business.” The Special Report highlights Gartner’s research and advice to customers on best practices for business uses of iPad and other media tablets. The report is available on Gartner’s website at www.gartner.com/technology/research/ipad-media-tablet.

Gartner’s media tablet forecast is included with the latest IT spending forecast and can be found on the Quarterly IT Spending Forecast page www.gartner.com/technology/research/quarterly-it-forecast/index.jsp.

Returning to presentation attached to the webinar on the iPad and Beyond: The Media Tablet in Business [April 13, 2011] there are three slides worth to include here with an additional one used by Gartner for its Strategic Planning Assumption (SPA):

Gartner on New App Stores Delivery Model -- 13-April-2011 Gartner on Apple App Store Lead Retention -- 13-April-2011 Gartner on Mobile App Dev Tools through 2012 -- 13-April-2011 Gartner on Drive to Rapid Tablet Adoption in businesses -- 13-April-2011

Here an earlier Garner blog post comes in handy as well:

Curated App Stores, Security, And Why The Next Kindle Will Be An Android Device [March 23, 2011] (emphasis is mine)

We have been having some interesting discussions internally about the recent Android malware fiasco and how things need to be improved if Android ever wants to be taken seriously as an OS fit for use in an enterprise environment.

There has been some serious rhetoric against Apple’s “walled garden” approach in recent months but, like it or not from a philosophical standpoint, it certainly provides more protection for users than the Android Market. Some claim that the Apple approach stifles innovation. Pah! (Yes, I said “pah” – add to that a “pish and twaddle”, if you will.) One needs look no further than the sheer number of apps to shoot holes in that argument. Granted far too many of them are designed to emulate the passing of gas – some of us might argue that more controls are required, not fewer!

At the other end of the spectrum there are some truly excellent apps. Evernote, PDF Reader, TeamViewer, WebEx, GoToMeeting, Pages, Numbers, Keynote, QuickOffice, DocsToGo, SoundNote – these are all apps on which I rely daily. And for sheer awesomeness look no further than GarageBand and iMovie. No shortage of innovation and quality there then.

And from the point of view of the user – particularly the non-computer savvy user – all of this just works. Couple of clicks to search for your app. One click to purchase, download and install. And – most important of all – Trojan-free once it arrives. Curated app stores are essential to the well-being of the ecosystem.

Google needs to emulate that experience with its Market, though its very credo seems to suggest that will never happen. Yet without it the store will descend into anarchy, with users scared to purchase for fear of what new and terrible piece of malware they might be introducing to their phone or tablet.

So along comes Amazon from nowhere, and in one fell swoop it might have beaten Google at its own game. Amazon has the position of trust. It has the customer review infrastructure in place. It already has our credit card details (who hasn’t bought anything from Amazon?) And now it has an Android Appstore (TM) to go with it. Now all it has to do is make sure that the stuff it sells is safe.

It has promised to do that, by applying both quality control and security vetting to the app review process. So why wouldn’t you buy from there rather than the Google Android Market? Well, I would – I already have. But my Auntie Edna probably wouldn’t. It is way more difficult than the Apple process, and right now requires a multi-step process just to get the Appstore app on your phone. It is not that difficult, but it is certainly a sub-optimal user experience compared with the “It Just Works” approach of Apple.

So what needs to happen for the Amazon Appstore (TM) to succeed? Simple – it needs to arrive pre-installed on Android devices. Lots of them.And while I am sure Amazon is probably in discussions with a bunch of carriers to achieve that objective, what better way to make sure it happens than to ship it in huge numbers on Amazon’s very own Android tablet – The Kindle IV?

Give us that great Kindle experience with Android flexibility at a super-low price point, and you might just have your iPad-killer… I certainly haven’t seen one among the devices announced so far.

Don’t forget to follow me on Twitter (@bwalder) to be kept informed of new research.

UPDATE: For those interested in all things tablet-related, Gartner has a special report out entitled iPad and Beyond: The Media Tablet in Business. The Apple iPad and its competitors in the coming media tablet wave have captured the imagination of business leaders. This special report highlights Gartner’s research and advice to customers on best practices for business uses of iPads and other media tablets.

Amazon’s “iPad-killer” opportunity with Android is especially an interesting observation by Gartner as in another press release it has been stated:

Gartner Says Android to Command Nearly Half of Worldwide Smartphone Operating System Market by Year-End 2012 [April 7, 2011] (emphasis is mine):

Egham, UK, April 7, 2011— Worldwide smartphone sales will reach 468 million units in 2011, a 57.7 percent increase from 2010, according to Gartner Inc. By the end of 2011, Android will move to become the most popular operating system (OS) worldwide and will build on its strength to account for 49 percent of the smartphone market by 2012 (see Table 1).

Sales of open OS* devices will account for 26 percent of all mobile handset device sales in 2011, and are expected to surpass the 1 billion mark by 2015, when they will account for 47 percent of the total mobile device market.

By 2015, 67 percent of all open OS devices will have an average selling price of $300 or below, proving that smartphones have been finally truly democratized,” said Roberta Cozza, principal analyst at Gartner.

“As vendors delivering Android-based devices continue to fight for market share, price will decrease to further benefit consumers”, Ms. Cozza said. “Android’s position at the high end of the market will remain strong, but its greatest volume opportunity in the longer term will be in the mid- to low-cost smartphones, above all in emerging markets.”

Table 1
Worldwide Mobile Communications Device Open OS Sales to End Users by OS (Thousands of Units)

 OS 2010 2011 2012 2015
Symbian 111,577 89,930 32,666 661
Market Share (%) 37.6 19.2 5.2 0.1
Android 67,225 179,873 310,088 539,318
Market Share (%) 22.7 38.5 49.2 48.8
Research In Motion 47,452 62,600 79,335 122,864
Market Share (%) 16 13.4 12.6 11.1
iOS 46,598 90,560 118,848 189,924
Market Share (%) 15.7 19.4 18.9 17.2
Microsoft 12,378 26,346 68,156 215,998
Market Share (%) 4.2 5.6 10.8 19.5
Other Operating Systems 11,417.40 18,392.30 21,383.70 36,133.90
Market Share (%) 3.8 3.9 3.4 3.3
Total Market 296,647 467,701 630,476 1,104,898

Source: Gartner (April 2011)

Gartner predicts that Apple’s iOS will remain the second biggest platform worldwide through 2014 despite its share deceasing slightly after 2011. This reflects Gartner’s underlying assumption that Apple will be interested in maintaining margins rather than pursuing market share by changing its pricing strategy. This will continue to limit adoption in emerging regions. iOS share will peak in 2011, with volume growth well above the market average. This is driven by increased channel reach in key mature markets like the U.S. and Western Europe.

Research In Motion’s share over the forecast period will decline, reflecting the stronger competitive environment in the consumer market, as well as increased competition in the business sector. Gartner has factored in RIM’s migration from BlackBerry OS to QNX which is expected in 2012. Analysts said this transition makes sense because RIM can create a consistent experience going from smartphones to tablets with a single developer community and — given that QNX as a platform brings more advanced features than the classic BlackBerry OS — it can enable more competitive smartphone products.

Gartner predicts that Nokia will push Windows Phone well into the mid-tier of its portfolio by the end of 2012, driving the platform to be the third largest in the worldwide ranking by 2013. Gartner has revised its forecast of Windows Phone’s market share upward, solely by virtue of Microsoft’s alliance with Nokia. Although this is an honorable performance it is considerably less than what Symbian had achieve in the past underlying the upward battle that Nokia has to face.

Gartner analysts said new device types will widen ecosystems. “The growth in sales of media tablets expected in 2011 and future years will widen the ecosystems that open OS communications devices have created. This will, by and large, function more as a driver than an inhibitor for sales of open OS devices,” said Carolina Milanesi, research vice president at Gartner.

Consumers who already own an open OS communications device will be drawn to media tablets and more often than not, to media tablets that share the same OS as their smartphone,” Ms. Milanesi said. “This allows consumers to be able to share the same experience across devices as well as apps, settings or game scores. At the same time, tablet users who don’t own a smartphone could be prompted to adopt one to be able to share the experience they have on their tablets.”

Note *: An open OS makes a software developer kit (SDK) available to developers, who can use native application programming interfaces (APIs) to write applications. The OS can be supported by a sole vendor or multiple vendors. It can be, but does not have to be, open source. Examples are BlackBerry OS, iOS, Symbian, Android, Windows Phone, Linux, Limo Foundation, WebOS and bada.

Gartner’s detailed forecast is available in the report “Forecast: Mobile Communications Devices by Open Operating System, Worldwide, 2008-2015.” The report is available on Gartner’s website at http://www.gartner.com/resId=1619615.

Finally there are two Gartner press releases on the state of legacy PC market which were also behind of the above reasoning:

Gartner Says Worldwide PC Shipments in First Quarter of 2011 Suffer First Year-Over-Year Decline in Six Quarters [April 13, 2011]

Worldwide PC shipments totaled 84.3 million units in the first quarter of 2011, a 1.1 percent decline from the first quarter of 2010, according to preliminary results from Gartner, Inc. Although the first quarter is traditionally a slow one for PC sales, these shipment results indicate potential sluggishness, not just a normal seasonal slowdown. These figures are below Gartner’s earlier forecast for 3 percent growth in the first quarter of 2011.

“Weak demand for consumer PCs was the biggest inhibitor of growth,” said Mikako Kitagawa, principal analyst at Gartner. “Low prices for consumer PCs, which had long stimulated growth, no longer attracted buyers. Instead, consumers turned their attention to media tablets and other consumer electronics. With the launch of the iPad 2 in February, more consumers either switched to buying an alternative device, or simply held back from buying PCs. We’re investigating whether this trend is likely to have a long-term effect on the PC market.”

Steady growth in the professional PC sector, driven by the replacement cycle, was a bright spot for the global PC market. Without the professional segment growth, the PC market could have experienced one of the worst declines in its recent history. Replacement sales will generally continue into late 2011 or the start of 2012, with some variations between different regions and market segments.

HP performed below the worldwide average, but maintained the No. 1 position, accounting for 17.6 percent of worldwide PC shipments in the first quarter of 2011 (see Table 1). HP was impacted by weak consumer PC demand, as well as growing issues in Asia/Pacific. Acer continued to face challenges as the mini-notebook market was impacted by media tablets, and its shipments declined 12.2 percent.

Table1
Preliminary Worldwide PC Vendor Unit Shipment Estimates for 1Q11 (Units)

1Q11 Shipments 1Q11 Market Share (%) 1Q10 Shipments 1Q10 Market Share (%) 1Q11-1Q10 Growth (%)
Company
HP 14,797,299 17.6 15,312,468 18 -3.4
Acer Group 10,893,793 12.9 12,412,859 14.6 -12.2
Dell 9,984,370 11.9 10,210,766 12 -2.2
Lenovo 8,137,904 9.7 6,976,683 8.2 16.6
Toshiba 4,821,600 5.7 4,580,746 5.4 5.3
Others 35,615,953 42.3 35,686,995 41.9 -0.2
Total 84,250,918 100 85,180,518 100 -1.1

Note: Data includes desk-based PCs, mobile PCs, including mini-notebooks but not media tablet such as the iPad.
Source: Gartner (April 2011)

In the first quarter of 2011, Dell experienced a shipment decline year-over-year for the first time in six quarters. Dell underperformed in the U.S., Europe, the Middle East and Africa (EMEA) and Latin America, but it achieved strong growth in Asia/Pacific. Lenovo experienced the strongest growth among the top five vendors (16.6 percent) as it continued to price its products very competitively in both the consumer and professional sectors. It achieved strong growth across all regions.

In the U.S., PC shipments totaled 16.1 million units in the first quarter of 2011, a 6.1 percent decline from the first quarter of 2010. “As with the worldwide market, the U.S. PC market was affected by the hype surrounding media tablets. This was the third consecutive quarter of mobile PC shipment declines in the U.S.,” Ms. Kitagawa said. “The U.S. professional PC market showed steady growth across all sectors. However, the public sector showed more than the normal seasonal weakness due to budgetary issues.”

HP continued to lead the U.S. market with its market share increasing to 26.2 percent, despite a shipment decline of 3.5 percent in the first quarter (see Table 2). While HP struggled in the consumer PC market, it also encountered tough price competition in the professional segment, especially in the midmarket.

Dell faced tough competition in both the U.S. consumer and professional markets. The challenge for Dell arose in the midmarket, where more vendors tried to squeeze in to benefit from professional PC refresh cycles. Apple maintained strong shipment growth, even after the holiday season. The MacBook Pro refresh at the end of February accelerated already strong Mac growth.

Table 2
Preliminary United States PC Vendor Unit Shipment Estimates for 1Q11 (Units)

Company 1Q11 Shipments 1Q11 Market Share (%) 1Q10 Shipments 1Q10 Market Share (%) 1Q11-1Q10 Growth (%)
HP 14,797,299 17.6 15,312,468 18 -3.4
Acer Group 10,893,793 12.9 12,412,859 14.6 -12.2
Dell 9,984,370 11.9 10,210,766 12 -2.2
Lenovo 8,137,904 9.7 6,976,683 8.2 16.6
Toshiba 4,821,600 5.7 4,580,746 5.4 5.3
Others 35,615,953 42.3 35,686,995 41.9 -0.2
Total 84,250,918 100 85,180,518 100 -1.1

Note: Data includes desk-based PCs, mobile PCs, including mini-notebooks, but not media tablet such as the iPad.
Source: Gartner (April 2010)

PC shipments in EMEA totaled 26.1 million units in the first quarter of 2011, a 2.8 percent decline from the first quarter of 2010 (see Table 3).

Table 3
Preliminary EMEA PC Vendor Unit Shipment Estimates for 1Q11 (Thousands of Units)

Company 1Q11 Shipments 1Q11 Market Share (%) 1Q10 Shipments 1Q10 Market Share (%) 1Q11-1Q10 Growth (%)
Hewlett-Packard 5,019 19.2 5,532 20.6 -9.3
Acer Group 4,939 18.9 5,557 20.7 -11.1
Dell 2,318 8.9 2,500 9.3 -7.3
ASUS 1,950 7.5 2,186 8.1 -10.8
Lenovo 1,325 5.1 1,236 4.6 7.2
Others 10,567 40.5 9,856 36.7 7.2
Total 26,119 100 26,867 100 -2.8

Note: Data includes desk-based PCs, mobile PCs, including mini-notebooks but not media tablet such as the iPad.
Source: Gartner (April 2011)
“The PC market in EMEA had not exhibited decline since the third quarter of 2009 when the market declined 8.9 per cent,” said Ranjit Atwal, research director at Gartner. “The excess inventory accumulated at the end of the fourth quarter of 2010 was reduced slowly, especially as some of the delayed Sandy Bridge products entered the market in March. The seasonal trend was also weaker than expected, indicating that the downward trend seen at the end of 2010 continued into the first quarter of 2011.”
Western Europe remained the main area of weakness in EMEA, as consumers continued to delay spending disposable income on PCs or other products like media tablets, especially after the launch of the iPad 2. This is extending current PC life cycles.

In Asia/Pacific, PC shipments surpassed 28.2 million units in the first quarter of 2011, a 4.1 percent increase from the first quarter of 2010. PC purchases by consumers remained weak, especially in China and Taiwan. PCs were not high on consumers’ shopping lists during the Chinese New Year holiday. In India, consumers were distracted by the Cricket World Cup. They also preferred to upgrade or purchase new TVs or other home electronics.

The PC market in Lain America grew 5.4 percent in the first quarter of 2011, as shipments totaled 8.1 million units. Brazil accounted for over 40 percent of Latin America’s PC shipments. As PC vendors’ interest in Brazil grows, so does competition. Local PC vendors are particularly vulnerable, as their strength lies in the production of desk-based PCs. Multinational vendors are making inroads by selling less-expensive mobile PCs.

PC shipments in Japan declined 13.1 percent in the first quarter of 2011, with shipments reaching 4 million units. The earthquake and tsunami on March 11 reduced PC shipments, and Gartner analysts are still investigating the scale of the impact on the market in first quarter. The impact of the disaster was most evident in the professional PC market, where the second half of March is the year’s busiest procurement period.

These results are preliminary. Final statistics will be available soon to clients of Gartner’s PC Quarterly Statistics Worldwide by Region program. This program offers a comprehensive and timely picture of the worldwide PC market, allowing product planning, distribution, marketing and sales organizations to keep abreast of key issues and their future implications around the globe. Additional research can be found on Gartner’s Computing Hardware section on Gartner’s website at http://www.gartner.com/it/products/research/asset_129157_2395.jsp.

And this was preceded by earlier Gartner Lowers PC Forecast as Consumers Diversify Computing Needs Across Devices [March 3, 2011] press release:

Gartner, Inc. is lowering its PC unit forecast for 2011 and 2012, based on expectations of weaker demand for mobile consumer PCs. Worldwide PC shipments are forecast to reach 387.8 million units in 2011, a 10.5 percent increase from 2010, according to Gartner’s preliminary forecast. This is down from Gartner’s previous projection of 15.9 percent growth this year.

Gartner expects worldwide PC shipments to total 440.6 million units in 2012, a 13.6 percent increase from 2011. This is down from Gartner’s previous outlook of 14.8 percent growth for 2012.

“These results reflect marked reductions in expected near-term unit growth based on expectations of weaker consumer mobile PC demand, in no small part because of the near-term weakness expected in China’s mobile PC market, but also because of a general loss in consumer enthusiasm for mobile PCs,” said Ranjit Atwal, research director at Gartner.

Gartner analysts said that consumer mobile PCs have been the dynamic growth engine of the PC market over the past five years, averaging annual rates of growth approaching 40 percent. For much of this period, mobile PCs remained consumers’ platform of choice for bringing the Internet into their daily lives. However, due to the spread of low-cost embedded Wi-Fi modules, Internet access is now available through a multitude of mobile devices that allow consumers to engage in virtually all their favorite online activities without the need of a mobile PC.

“We expect growing consumer enthusiasm for mobile PC alternatives, such as the iPad and other media tablets, to dramatically slow home mobile PC sales, especially in mature markets,” said George Shiffler, research director at Gartner. “We once thought that mobile PC growth would continue to be sustained by consumers buying second and third mobile PCs as personal devices. However, we now believe that consumers are not only likely to forgo additional mobile PC buys but are also likely to extend the lifetimes of the mobile PCs they retain as they adopt media tablets and other mobile PC alternatives as their primary mobile device. Overall, we now expect home mobile PCs to average less than 10 percent annual growth in mature markets from 2011 through 2015.”

The professional market is expected to continue to exhibit double-digit growth in 2011 and 2012, as aging PCs are replaced across all regions of the world. “However, even in the professional market, media tablets are being considered as PC substitutes, likely at least delaying some PC replacements,” said Raphael Vasquez, senior research analyst at Gartner.

The dramatic rise in the popularity of alternative devices and the limitations of the PC are two of many dynamics that played a significant role in Gartner’s revised outlook for the PC industry.

Media Tablets Causing Hesitation Among Potential PC Buyers
Consumer enthusiasm for media tablets is a key factor in Gartner’s forecast that the consumer mobile PC market will remain weak in mature markets. Consumer substitution of media tablets for mobile PCs already appears to be impacting mobile PC shipments in mature markets. However, a bigger issue seems to be that consumers are taking a “wait and see” attitude toward PCs as they anticipate the arrival of new media tablets during the rest of 2011.

PCs’ Limitations Are Exposed
Not too long ago, PCs were a “fashion accessory” in mature markets with vendors linking themselves to fashion designers and even creating PCs specifically for women. The current “cool” device is the smartphone, and now PCs will soon have to do battle with media tablets when they are launched in large numbers in the second quarter of 2011. Up to now, the appeal of mobile PCs has been their portability. But mainstream mobile PCs have not shed sufficient weight, and do not offer the all-day battery life, to substantiate their promise of real mobility. These limitations have become all the more apparent with the rapid spread of social networking, which thrives on constant and immediate connections. In short, all-day untethered computing has yet to materialize, and that has exposed the “mobile” PC as merely a transportable PC at best.

More information is available in the report “Forecast Alert: PC Forecast Is Lowered as Consumers Diversify Computing Needs Across Devices,” which can be found on Gartner’s website at http://www.gartner.com/resId=1558714.

Larry Page to boost Google even more as becoming CEO again

Choose any of the thousands (if not tens of thousands) mirrored reports by AP that Google founder hopes to prove he’s ready to be CEO [April 1, 2011] to learn the hopes and worries of the fans and anxious investors about the return of Larry Page [38] as CEO of Google after 10 years of Eric Schmidt’s [55] leadership.

Warning update: Google as an evil enterprise: the perception changes as vital APIs are shut down  [June 1, 2011]

An update from the Chairman [Eric Schmidt, Jan 20, 2011] (emphasis is mine)

Google -- Eric Schmidt with Sergey Brin and Larry Page in 2001

When I joined Google in 2001 I never imagined—even in my wildest dreams—that we would get as far, as fast as we have today. Search has quite literally changed people’s lives—increasing the collective sum of the world’s knowledge and revolutionizing advertising in the process. And our emerging businesses—display, Android, YouTube and Chrome—are on fire. Of course, like any successful organization we’ve had our fair share of good luck, but the entire team—now over 24,000 Googlers globally—deserves most of the credit.

And as our results today show, the outlook is bright. But as Google has grown, managing the business has become more complicated. So Larry, Sergey and I have been talking for a long time about how best to simplify our management structure and speed up decision making—and over the holidays we decided now was the right moment to make some changes to the way we are structured.

For the last 10 years, we have all been equally involved in making decisions. This triumvirate approach has real benefits in terms of shared wisdom, and we will continue to discuss the big decisions among the three of us. But we have also agreed to clarify our individual roles so there’s clear responsibility and accountability at the top of the company.

Google - Larry Page in the European Parliament -- 17-June-2009 Larry will now lead product development and technology strategy, his greatest strengths, and starting from April 4 he will take charge of our day-to-day operations as Google’s Chief Executive Officer. In this new role I know he will merge Google’s technology and business vision brilliantly. I am enormously proud of my last decade as CEO, and I am certain that the next 10 years under Larry will be even better! Larry, in my clear opinion, is ready to lead.

Sergey [Brin, 37] has decided to devote his time and energy to strategic projects, in particular working on new products. His title will be Co-Founder. He’s an innovator and entrepreneur to the core, and this role suits him perfectly.

As Executive Chairman, I will focus wherever I can add the greatest value: externally, on the deals, partnerships, customers and broader business relationships, government outreach and technology thought leadership that are increasingly important given Google’s global reach; and internally as an advisor to Larry and Sergey.

We are confident that this focus will serve Google and our users well in the future. Larry, Sergey and I have worked exceptionally closely together for over a decade—and we anticipate working together for a long time to come. As friends, co-workers and computer scientists we have a lot in common, most important of all a profound belief in the potential for technology to make the world a better place. We love Google—our people, our products and most of all the opportunity we have to improve the lives of millions of people around the world.

Then watch this Perspective from Google: Eric Schmidt & Larry Page – Zeitgeist Europe 2010 [May 19, 2010] to understand the quite subtle differences between the two leaders. Note that Larry Page is introverted vs. the typical extroverts as business leaders. Note as well (from reply to a question) that Google is not doing the typical business planning exercise but Larry and Brin ideas are simply financed because the operation is generating sufficient revenues for that. This is giving them a unique competitive advantage of moving along innovative things while all the rest of the industry is loosing time with planning.

From Zeitgeist 2010 Google Partner Forum Europe held 17-18 May 2010. Featuring Eric Schmidt (Chairman of the Board & CEO, Google) & Larry Page (Co-Founder & President, Products, Google).
[from 1:20 he is talking about how much he was struck by captioning and translation …]
Note: Switch on the caption and try also the translation on this video. Generally it is a great experience (although not always perfect, since it depends on the clarity of the speech). More information on the technology is available under the Captions tag on the YouTube blog. Best to start is probably here: The Future Will Be Captioned: Improving Accessibility on YouTube [March 4, 2010] and here: Happy Birthday Automatic Captions! Celebrate with more videos and higher quality [Nov 19, 2010]

For detailed analysis – however – of the possible effects of Larry Page becoming CEO again it is better to turn to Fast Company’s earlier 7 Ways Larry Page Is Defining Google’s Future [March 16, 2011] article (quite long). Here is the essence:

The company line on Page’s ascension is that it does not mark any effort to “fix something” at Google. After all, the company reported stellar earnings the day it announced that Page would replace Eric Schmidt. It generated more than $29 billion in revenue in 2010 and 24% annual growth. Page has been part of what has been an unusual but effective ruling troika with Schmidt and fellow cofounder, Sergey Brin.

And yet Page is becoming CEO at a crucial inflection point in Google’s history. The company is beset by rivals everywhere — Apple and Facebook, both of which are closing off chunks of Internet activity beyond Google’s reach; Amazon, Microsoft, Netflix, and others that compete fiercely against it in multiple markets; and even the U.S., the EU, and other governments that want to curtail Google’s ambition. Lately, Google has had more and more public whiffs (see Google Wave, Google Buzz, Google TV).

It’s true that Page is not stepping into a dire situation as Steve Jobs did at Apple in 1997. Page doesn’t need to be a turnaround artist. Yet he has to do something potentially harder: make changes to a winning formula in the face of intense scrutiny, when momentum appears to be against him. To borrow a sports aphorism, winning your first championship is easy compared with trying to repeat.

To outsiders, Page might seem an odd choice to be CEO. He’s personally reserved, unabashedly geeky, and said to be introverted. We won’t be seeing him keynoting A-list conferences with grand vision statements or sitting down for intimate conversations with the press (Google declined to make him available for this article). But after talking to high-level Google executives who work closely with Page, as well as ex-Googlers and other outside observers, a picture begins to emerge of how the search company will change under him. Here’s our seven-part guide to the Google of today — and tomorrow.

  1. A Little Top-Down Leadership Goes a Long Way
  2. Spur On Your Frenemies [encourage your “enemy friends” to do something]
  3. When in Doubt, Check the Data
  4. When in Creative Mode, Don’t Start With Data
  5. A Social Life Is Overrated
  6. Listen Up: Talk Is Cheap
  7. No Goal Is Too Big (And Some Are Too Small)

1. A Little Top-Down Leadership Goes a Long Way

Google - 20% delivering 50% which worked well till 10000 employees For much of its early life, Google reveled in its bottom-up culture. The governing philosophy was “Let’s hire lots of really smart people and let them do whatever they want,” says Brian Kennish, a Google engineer from 2003 to late 2010. Employees — especially engineers — were given unparalleled leeway in deciding what they wanted to work on and encouraged to use 20% of their time to come up with new ideas.

The archetypal product of this era was Gmail, which was born when engineer Paul Buchheit hacked it up in a single day in the summer of 2001. He showed the prototype to his colleagues, and when they expressed interest, Buchheit pulled other promising engineers onto his team. This kind of thing happened time and again at Google; among other products conceived deep within the company’s ranks were Google News, search suggestions, and AdSense, the contextual advertising system that accounted for nearly $9 billion in revenue in 2010.

Kennish, echoing several other former Googlers, adds, “This system worked really well until the company reached about 10,000 workers. After that, things started to break down.” (Google now has 24,000 employees and plans to hire another 6,000 in 2011.)

Android represents a new order, one that Page, who has long played a role in product strategy, will accelerate. … Page and Brin pushed Google into mobile, buying Android when the project was an eight-person startup in 2005. (Schmidt later joked that they didn’t tell him about it until after the deal.) At the time, Google’s mobile strategy was a hodgepodge effort to install its apps on lots of different mobile phones. Page realized that game would never scale. Eustace says it would have required “5,000 people, each one trying to port apps to all the different phones.” For Google to truly benefit from the transition to mobile phones, it would need to shoot for something bigger. Page gave Andy Rubin, Android’s indomitable chief, the resources to run the division as an autonomous unit. Their ambition helped Google settle on a course to release an entire operating system, rather than a single phone. What’s more, Google made Android free and allowed phone manufacturers and carriers to tinker with the software.

Google Andy Rubin (center) with major early partners HTC CEO Peter Chou and Christopher Schlaeffer T-Mobile -- 8-Oct-2008

Android, then, is as much a marvel of management as it is of engineering. “It wasn’t that Larry handed down his vision on stone tablets,” Eustace says. (In other words, he’s not Steve.) But Page had the founding idea that “what was necessary was an ecosystem,” and Android wouldn’t be where it is today if he hadn’t pushed for Google to do something more ambitious. Google - Android Patrners in Open Handset Alliance -- 6-Nov-2007

Page has done this elsewhere. Google’s recent success with YouTube in the face of an unrelenting stream of criticism can be chalked up to a similar management tactic: Page empowered YouTube CEO Salar Kamangar in much the same way he has Android’s Rubin. … As Page takes over, he’ll still find product seedlings everywhere. Google’s product lineup is replete with services that offer overlapping, needlessly duplicative functionality. Android’s triumph should serve as a sweet reminder of the value in imposing just enough discipline before letting the kids chase the ice-cream truck.

See also:
Google Buys Android for Its Mobile Arsenal [Aug 17, 2005]: “The 22-month-old startup, based in Palo Alto, Calif., brings to Google a wealth of talent, including co-founder Andy Rubin, who previously started mobile-device maker Danger Inc.
CrunchBase on Android

In July 2005, Google acquired Android, a small startup company based in Palo Alto, CA. Android’s co-founders who went to work at Google included Andy Rubin (co-founder of Danger), Rich Miner (co-founder of Wildfire), Nick Sears (once VP at T-Mobile), and Chris White (one of the first engineers at WebTV). At the time, little was known about the functions of Android other than they made software for mobile phones. This began rumors that Google was planning to enter the mobile phone market, although it was unclear at the time what function they might perform in that market.

Introducing Android [Nov 5, 2007]

[2:19] The creators of Android talk about their new open platform for mobile phones and the Open Handset Alliance. To learn more, visit: http://www.openhandsetalliance.com

Where’s my Gphone? [Andy Rubin, Nov 5, 2007]

Google Android chief Andy Rubin Android is the first truly open and comprehensive platform for mobile devices. It includes an operating system, user-interface and applications — all of the software to run a mobile phone, but without the proprietary obstacles that have hindered mobile innovation. We have developed Android in cooperation with the Open Handset Alliance, which consists of more than 30 technology and mobile leaders including Motorola, Qualcomm, HTC and T-Mobile. Through deep partnerships with carriers, device manufacturers, developers, and others, we hope to enable an open ecosystem for the mobile world by creating a standard, open mobile software platform. We think the result will ultimately be a better and faster pace for innovation that will give mobile customers unforeseen applications and capabilities.

Google, Bidding For Phone Ads, Lures Partners [The Wall Street Journal, Nov 6, 2007]

Among the handset makers that have signed on to the initiative are Taiwan’s HTC Corp., Samsung Electronics Co. and Motorola Inc. Operator partners include Deutsche Telekom AG’s T-Mobile, Sprint Nextel Corp. and Japan’s NTT DoCoMo Inc. (See the entire list of Google’s partners.) …

But until new handsets based on Android come to market, it won’t be clear how far operators have gone to satisfy Google’s desire for open mobile software. Some carriers have said they still want to make sure Android doesn’t allow sensitive user information to fall into the hands of rogue third-party developers, leading to invasions of privacy and security risks. Those issues partly explain why large U.S. operators such as AT&T Inc. and Verizon Wireless, a joint venture of Verizon Communications Inc. and Vodafone Group PLC, have yet to sign on to Google’s initiative.

Verizon Wireless is still weighing whether to join, a person familiar with the company’s thinking said. AT&T, in part because it exclusively carries Apple Inc.’s iPhone in the U.S., is restricted from partnering with Google, people familiar with the matter say. …

Sprint hasn’t agreed to carry a Google-powered phone yet, but signed on to the Android alliance while it continues talks. John Garcia, the carrier’s senior vice president of product development, said using Android in phones would make it easier to get a variety of mobile applications to consumers. Mr. Garcia said mobile-game makers routinely have to test their applications on an array of Sprint phones, writing specific programming code for each one. That could become a thing of the past if an open platform becomes widespread.

Android Open Source Project [Oct 20, 2008]

[4:26] An introduction to Android Open Source Project. Android is the first free, open source, and fully customizable mobile platform. Android offers a full stack: an operating system, middleware, and key mobile applications. It also contains a rich set of APIs that allows third-party developers to develop great applications. Learn more at source.android.com.

From this (my own) blog:
OPhone OS (OMS) 2.0 based on Android 2.1 [July 5, 2010]
Android 2.2 (Froyo) excitement is just the tip of the iceberg for the current Android momentum [July 9 – Sept 10, 2010]
Android 2.3 (Gingerbread) and 3.0 (Honeycomb) [Dec 30, 2010 – Feb 4, 2011]

What’s behind Android’s race to No. 1? [March 8, 2011]:

It’s no longer the era of the BlackBerry — or the iPhone. According to a market research report released this week, Google’s Android operating system now is the most popular smartphone platform in the United States.

The first phone running Android, the T-Mobile G1, wasn’t announced until September 2008. Only 2½ years later, the research firm comScore says Android is No. 1 in the U.S. with 31.2% of the market, compared with 30.4% for BlackBerry’s business-friendly operating system and 24.7% for the iOS from Apple, which powers the seemingly omnipresent iPhone.

What accounts for this meteoric rise? Here’s a summary of what makes Android popular, based on conversations with smartphone experts, buzz on the tech blogs and reader responses to our query posted on the @cnntech Twitter feed.

  • Consumers like choices
  • There’s basically one iPhone
  • There are dozens of Android options
  • Integration with the internet
  • Openness of the Android Market
  • Apps that do what you need, not what you don’t: In terms of app numbers, Android is losing big to Apple. Google’s Android Market has 150,000 apps. Apple has more than 350,000. But Gikas said the Android apps pretty  much cover everything an average consumer would want a phone to do, so having more apps isn’t necessarily the best selling point.
  • Stealing the best of everything and then giving it away

Platform Versions [Android Developers site, extracted on April 1, 2011]

Google Android Platform Versions - Historical Distribution -- 1-April-2011

Platform API Level Distribution
Android 1.5 3 2.7%
Android 1.6 4 3.5%
Android 2.1 7 27.2%
Android 2.2 8 63.9%
Android 2.3 9 0.8%
Android 2.3.3 10 1.7%
Android 3.0 11 0.2%

2. Spur On Your Frenemies [encourage your “enemy friends” to do something]

2009.04.30. [2:33] What is a browser? was the question we asked over 50 passersby of different ages and backgrounds in the Times Square in New York. Watch the many responses people came up with.

Less than 8% of people who were interviewwd on this day knew what a browser was.
[But most of them knew Google, and most of them considered Google a browser.]

Two years ago, Google sent a camera crew to Times Square, in New York, and asked passersby a simple question: What is a web browser? “A browser’s a search engine,” said one guy. Another respondent was pretty sure that “it’s what I search through — like, to find things.” When asked which browser they use, most people said Google, while a few renegades stuck to Yahoo and AOL. None of these, of course, are browsers.

So if you’ve ever wondered why Google needed its own web browser, called Chrome, here’s why: It needed Chrome to goad Microsoft, Apple, and other browser makers into reigniting innovation in what had become a moribund market. Everyone’s efforts collectively improve the web as a whole, which is good for Google and its ad business. Even if its rivals merely copied Chrome’s advancements — superfast, stable, and, thus far, impossible to hack — Google saw that it could achieve its larger goals.

Expect Page to launch even more initiatives that may seem futile when considered alone but that are, in fact, designed to wake up drowsy competitors. Think about such “puzzling” Google moves as releasing its own branded phones — the Nexus One and Nexus S — and competing against the handset makers and carriers that it’s supposed to be courting. Or about Google’s initiative to wire America with fiber-optic lines, as its plan to roll out superfast Internet to several cities suggests. Google really wants Verizon and others to pick up the pace. And when those rivals do, Google will benefit from the innovations that result.

See also: Sun Valley: Schmidt Didn’t Want to Build Chrome Initially, He Says [July 9, 2009]
Comment: Chrome came out in September 2008.

3. When in Doubt, Check the Data

Deciding questions by data is to Google what eye-catching design is to Apple, or what global supply-chain management is to Walmart. It forms the spine of every major decision, and nearly every minor one. Data’s preeminence in Google’s culture helps prevent anyone at the company from pulling rank. It also wards off resistance to change. This will only become more important as Page takes over as the top decision maker at a company whose core search algorithm, PageRank, is named for him.

… Even Page has proved willing to reverse himself if the numbers don’t bear him out. …

Google’s devotion to data isn’t always an asset (as we’ll explore momentarily), but there’s likely no other way for the company to conceive of itself because that’s how Page operates. “I was talking to Larry on Saturday,” says Nikesh Arora, Google’s chief business officer, when we sit down to talk the following Tuesday. “I told him that I’d gotten back from nine cities in 12 days — Munich, Copenhagen, Davos, Zurich, New Delhi, Bombay, London, San Francisco. There’s a silence for five seconds. And then he’s like, ‘That’s only eight.’ “

4. When in Creative Mode, Don’t Start With Data

… As Google grows into more arenas where engineering alone can’t carry the day, most notably in social and handheld interfaces, Page will have to tweak this data-driven mind-set to embrace more creative types if the company is to thrive. Google has never invested heavily in hiring classically trained designers, and insiders say that due to a constant shortage of creative staff, engineers sometimes decide the look of their own products. …

And yet, despite Page’s personal inclinations, there are signs that Google is pushing itself to transcend its design deficiencies. Matias Duarte joined the company’s Android team last year from Palm, where he was lauded for creating the well-regarded user interface for its mobile operating system called WebOS. Duarte admits that since signing on, he has come to rely on data as a tool in the design process — but not, he insists, as a crutch. Whereas the look and feel of Apple’s software and hardware are kept secret and revealed to just a few people, Duarte’s designs are shared widely inside Google and with other partners and testers. (Google routinely tests products this way before sharing them with the world, calling the process “dogfooding,” as in the company eats its own dog food. Or, in Duarte’s case, “Droid-fooding.”)

Duarte points out that this openness has led to novel insights into what users want. Honeycomb, Google’s new tablet-specific version of Android, includes an eye-catching interface to show people all the recent applications they’ve been using. It’s a feature that the iPad sorely misses — and it came about only because of extensive statistical analysis of usage patterns. The lesson: Google can succeed in more creative pursuits if it pushes the limits of its data-centric culture but still relies on that culture to enhance creative solutions. “We don’t design by committee; we don’t design by focus group,” Duarte says. “But we do verify everything we’re trying to do with our design with stringent, large-scale user testing.” …

5. A Social Life Is Overrated

Page’s apparent lack of personal interest on the web’s major social sites creates a convenient narrative for Google’s dreadful record in the space — a string of failures that include Dodgeball, Jaiku, Lively, Buzz, and Wave. Orkut, the social network that Google engineer Orkut Büyükkökten launched in 2004, is still alive (it’s big in Brazil), but few Googlers consider it a success. Meanwhile, Google has had several social-networking savants in the ‘plex and let them slip away to found other companies, among them Evan Williams (Twitter) and Dennis Crowley (Foursquare). …

… “There’s an EQ — an emotional intelligence — around social software, and it just might be out of Google’s reach,” says Jason Shellen, who spent four years as a business-development exec at Google after it acquired Blogger and who now works at AOL. …

… But that’s not to say Google is giving up on social. Far from it. Its success relies on understanding how the web works, and the web is getting more social all the time. Google has continued to acquire social startups — most recently Slide for $228 million (not to mention its rumored interest in buying Twitter for $10 billion). According to sources, Google isn’t planning a Facebook clone but rather it intends to roll out new social features across all its products. Its ultimate aim seems to be to collect and analyze the social activity that’s going on across the web, beyond Facebook’s walls. …

… If Google can’t compete with Facebook directly, perhaps it can render Facebook moot by making everything else on the web feel like Facebook. Still, building a fun web-based community turns out to be harder than building a great smartphone (witness the utter failure that is Apple’s Ping). Don’t be surprised if this is one arena where Page is happy merely to have a credible offering.

6. Listen Up: Talk Is Cheap

The company became the biggest search engine in the world because it built a better product, not because it created better TV ads than Yahoo.

Google’s build-it-and-they-will-come naïveté seems almost cute in the age of Apple. Many of Google’s advances go unnoticed by the public because nobody hears about them. Do iPhone owners know that Android lets you dictate email by voice? Imagine the marketing fun Apple would have there. Or that Google Voice rings all your phones when someone calls you, and transcribes your voice mail to boot?

With its new CEO an introvert, perhaps Google will never tap its inner Apple. But maybe, in the bigger picture, that’s a trade-off worth making. Page is not a CEO out of central casting, despite the fact that Wall Street and the media tend to prefer extroverts as leaders: the superhero who puffs out his chest and delivers bold, motivating pronouncements. According to some surprising forthcoming research from management professors at Harvard Business School, the University of North Carolina, and Wharton, though, introverts can be more successful leaders — particularly in dynamic, uncertain, and fast-changing environments like the tech industry. “They tend to be less threatened by others’ ideas,” says Adam Grant, a Wharton professor and coauthor of the study. “And they’ll collect a lot of them before determining a vision.” Because introverts spend more time listening than talking, they hear more ideas.

The hallmarks of Google culture, including the weekly TGIF [Thank God It’s Friday] sessions where Page and Brin take questions from employees, are precisely about creating dialogue. Even if the company relies less on 20% time for unfettered product development, Page’s personal style is likely to keep new ideas flowing. The key for Page is to “surround himself with some extroverts,” Grant says. “Extroversion and introversion are the only personality traits where you need a balance between the two to be an effective team.” As the success of the Bing sting indicates, Page seems to be listening to his extroverts in embracing a bolder public profile — not for himself, but for Google.

Google TGIF in 2006 with new Googlers wearing propeller heads

See also: What’s it like to work in Mountain View? [Google]

Transparency is a staple of Google’s working environment – all voices matter and Googlers enjoy a variety of opportunities to share information and voice questions and opinions. For example, every Friday we host a “TGIF” [Thank God It’s Friday] event in Charlie’s Cafe, where Googlers can learn about the company’s latest news and ask their tough questions in live Q&A sessions.

7. No Goal Is Too Big (And Some Are Too Small)

That audaciousness — the ambition to tackle a seemingly unsolvable problem with deep reservoirs of money and data — is the ultimate insight into what makes Google Googley. “When people come to Larry with ideas, he always wants it bigger,” says one ex-Googler. “His whole point is that only Google has the kind of resources to make big bets. The asset that Larry brings is to say, ‘Let’s go and make big things happen.’ ” (This may explain why Page isn’t interested in a Facebook killer: “With social, there isn’t a problem for Google to solve,” says the former Googler Shellen.)

That’s what’s thrilling about Page taking the helm at Google right now. You get the sense that under his leadership, Google could try its hand at anything. More than anything else during my interviews with people who know Page, one comment stands out: “I don’t care what you put in the article,” says David Lawee, Google’s head of acquisitions. “To me, this is the real story: Larry is a truly awesome inventor-entrepreneur. My aspiration for him is that he becomes one of the greatest inventors-entrepreneurs in history, in the realm of the Thomas Edisons of the world.”

The example used in the above article to prove the point is the Statistical Machine Translation research applied in Google’s machine-translation system:

[Franz] Och oversees Google’s machine-translation system, a spectacularly ambitious effort that analyzes text found on the web to create statistical models that can transform one language into another. Machine translation is far from perfect, but Google’s project, which began in 2004, has succeeded far beyond what most experts thought possible. Including Och. Google spent a year trying to recruit him; each time, he explained to Page and other execs that what they were asking for couldn’t be done. “They were very optimistic, and I tried to tell them to be cautious,” he says. “It’s really complicated, extremely expensive, and you need very large amounts of data.”

The company hired Och despite his skepticism, and today, machine translation (along with speech recognition) is one of Google’s best-known artificial-intelligence projects. It’s also a key competitive advantage. Even on the iPhone, you’ll use Google’s software to help you read that French road sign or to transform your voice commands into text searches. Och now seems bemused by this success. Google, he says, simply had far more resources — more data, more computing power, more money — than he ever thought possible. Google can now translate 58 different languages. “When I started at Google, if you told me that five years later we’d be able to translate Yiddish, Maltese, Icelandic, Azerbaijani, and Basque, I would have said, That’s just not going to happen,” he says. “But [Page and Brin] didn’t believe me. And I guess they were more right than I was.”

Inside Google Translate [July 9, 2010]

Let’s see for more details a presentation by Franz Och who oversees that work:
Google Faculty Summit 2009: Statistical Machine Translation [Oct 5, 2009]

Google Tech Talk, July 30, 2009 [49:50] Most state-of-the-art commercial machine translation systems in use today have been developed using a rules-based approach and require a lot of work by linguists to define vocabularies and grammars. Several research systems, including ours, take a different approach: we feed the computer with billions of words of text, both monolingual text in the target language, and aligned text consisting of examples of human translations between the languages.

Google - Static Machine Translation improvements for languages launched recently -- 30-July-2009[13:28 – 14:24] … some of the languages we’ve launched recently, Hindi, Thai and Hungarian … It is quite challenging for some of the languages to find data …

Doubling Up [Franz Josef Och, Sept 29, 2008]

Machine translation is hard. Natural languages are so complex and have so many ambiguities and exceptions that teaching a computer to translate between them turned out to be a much harder problem than people thought when the field of machine translation was born over 50 years ago. At Google Research, our approach is to have the machines learn to translate by using learning algorithms on gigantic amounts of monolingual and translated data. Another knowledge source is user suggestions. This approach allows us to constantly improve the quality of machine translations as we mine more data and get more and more feedback from users.

A nice property of the learning algorithms that we use is that they are largely language independent — we use the same set of core algorithms for all languages. So this means if we find a lot of translated data for a new language, we can just run our algorithms and build a new translation system for that language.

As a result, we were recently able to significantly increase the number of languages on translate.google.com. Last week, we launched eleven new languages: Catalan, Filipino, Hebrew, Indonesian, Latvian, Lithuanian, Serbian, Slovak, Slovenian, Ukrainian, Vietnamese. This increases the total number of languages from 23 to 34.  Since we offer translation between any of those languages this increases the number of language pairs from 506 to 1122 (well, depending on how you count simplified and traditional Chinese you might get even larger numbers). We’re very happy that we can now provide free online machine translation for many languages that didn’t have any available translation system before.

So how far can we go with adding new languages in the future? Can we go to 40, 50 or even more languages?  It is certainly getting harder, as less data is available for those languages and as a result it is harder to build systems that meet our quality bar.  But we’re working on better learning algorithms and new ways to mine data and so even if we haven’t covered your favorite language yet, we hope that we will have it soon.

See also:
Statistical machine translation live [April 28, 2006)]

Google Translate adds 10 new languages… [May 15, 2008]: “We’ve recently added translation capabilities for 10 new languages to Google Translate, bringing the total to 23 languages. The newly featured languages include Bulgarian, Croatian, Czech, Danish, Finnish, Hindi, Norwegian, Polish, Romanian and Swedish.

Translate between 41 languages with Google Translate [Feb 26, 2009]: “recently added Turkish, Thai, Hungarian, Estonian, Albanian, Maltese, and Galician to the mix. The rollout of these seven additional languages marks a new milestone: automatic translations between 41 languages (1,640 language pairs!). This means we can now translate between languages read by 98% of Internet users.

51 Languages in Google Translate [Aug 31, 2009]: “we’ve added 9 new languages to Google Translate: Afrikaans, Belarusian, Icelandic, Irish, Macedonian, Malay, Swahili, Welsh, and Yiddish, bringing the number of languages we support from 42 to 51.”

A new look for Google Translate [Nov 16, 2009]:

Translate instantly: Say goodbye to the old “Translate” button. Google Translate now translates your text right as you type.

Read and write any language: Want to say “Today is a good day” in Chinese, but can’t read Han characters? Click “Show romanization” to read the text written phonetically in English. Right now, this works for all non-Roman languages except for Hebrew, Arabic and Persian.

Text-to-speech: When translating into English, you can now also hear translations in spoken form by clicking the Speaker Icon.

Giving a voice to more languages on Google Translate [May 11, 2010]:

One of the popular features of Google Translate is the ability to hear translations spoken out loud (”text-to-speech”) by clicking the speaker icon beside some translations, like the one below.

We rolled this feature out for English and Haitian Creole translations a few months ago and added French, Italian, German, Hindi and Spanish a couple of weeks ago. Now we’re bringing text-to-speech to even more languages with the open source speech synthesizer, eSpeak.

By integrating eSpeak we’re adding text-to-speech functionality for Afrikaans, Albanian, Catalan, Chinese (Mandarin), Croatian, Czech, Danish, Dutch, Finnish, Greek, Hungarian, Icelandic, Indonesian, Latvian, Macedonian, Norwegian, Polish, Portuguese, Romanian, Russian, Serbian, Slovak, Swahili, Swedish, Turkish, Vietnamese and Welsh.

Five more languages on translate.google.com [May 13, 2010]: “In 2009, we announced the addition of our first “alpha” language, Persian, on Google Translate. Today, we are excited to add five more alpha languages: Azerbaijani, Armenian, Basque, Urdu and Georgian — bringing the total number of languages on Google Translate to 57.

Poetic Machine Translation [Oct 5, 2010]: “A Statistical Machine Translation system, like Google Translate, typically performs translations by searching through a multitude of possible translations, guided by a statistical model of accuracy. However, to translate poetry, we not only considered translation accuracy, but meter and rhyming schemes as well. In our paper we describe in more detail how we altered our translation model, but in general we chose to sacrifice a little of the translation’s accuracy to get the poetic form right.”

Franz Josef Och site
Google Translate blog

Google Technology RoundTable: Human Language Technology [Aug 21, 2008]

Human language technology experts at Google, Franz Josef Och and Mike Cohen discuss their exciting research in machine translation and speech technology with Alfred Spector, Google VP of Research and Special Initiatives.

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
Growth
1 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.

Acer founder Stan Shih -- 15-Oct-2009

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).

===============================================================
*******************************************************************************
===============================================================

Stan’s Smiling Curve

Acer -- the Stan Shih Smile 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

  1. Global wage arbitrage is not just about manufacturing
  2. The US has no intrinsic brainpower advantage
  3. 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]

===============================================================
*******************************************************************************
===============================================================

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 Gianfranco Lanci with Dadi Perlmutter head of Intel Architecture Group at Computex 2010

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:

Acer chairman JT Wang -- 31-May-2010 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.

Gartner 630 with Ballmer at Gartner Symposium ITxpo Orlando 2010

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.

Gartner 630 #2 with Ballmer at Gartner Symposium ITxpo Orlando 2010

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].

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.

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.

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.

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 Marvell TD-SCDMA Smartphone -- 24-Feb-2011

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).

Marvell PXA920 Block Diagram -- 17-Feb-2011

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

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 PointsBlue Ocean Strategy book by W. Chan KIM and Renée Mauborgne

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.

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.

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.

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.

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.

Follow @Newsy_Videos on Twitter

Get more multisource video news analysis from Newsy
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.

ASUS TD Pad -- 24-Feb-2011

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]

OPhone OS roadmap by Borqs -- 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.

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!

Update as of August 10, 2012: After acquiring the Qt commercial licensing business in March 2011 from Nokia, the Helsinki based, ~1000 people strong Digia, with 2011 sales of 121.9 million Euro, yesterday acquired all the rest of the Qt business from Nokia. More details in the Digia extends Its commitment to Qt with plans to acquire full Qt software technology and business From Nokia [Digia’s Qt Commercial Blog, Aug 9, 2012] and Digia Committed to Thriving Qt Ecosystem [KDE.NEWS, Aug 9, 2012] posts from Digia’s R&D director Tuuka Turunen. With this all pre-Windows Phone software platform commitments except the Java based S40 (evolved in the new Asha range) have strategically been revoked by Nokia.

Here is the shortest and still very comprehensive way to understand the essence of Nokia’s decision to radically change its strategy – Engadget’s video interview with Stephen Elop [Feb 15, 2011], the CEO of Nokia:

 

STATEMENTS IN THE ABOVE VIDEO YOU WILL FIND NOWHERE ELSE:

[00:48]: As it relates to the low-end we think regardless of how far we can push down Symbian and/or Windows Phone, which will rapidly come down in price as well, in price points, we believe there is always going to be this layer below, i.e. the absolute lowest level, highest cost-optimized approach. So Series 40 and its successors, and new work that we’ll do in that area, we think will continue to be an important part of the strategy going forward. [1:13] … [1:17] We call those ’mobile phones’ [i.e. not feature phones]. In our strategy, the Nokia strategy has three pieces to it: the smartphone strategy, which is about Windows Phone, it has what we call ’the next billion strategy’ which is about taking those first mobile experiences … at the very lowest of the price continuum, and the third part of our strategy is what we call ’the future disruptions’. Investing today to plan for to lead the next disruption beyond all the current activities we are doing today. [1:45]

[1:58]: Part of the specific relationship between Nokia and Microsoft is for us to contribute the expertise to planning, design and everything else, so that the Windows Phone product is not only a premium product but in the same way that Symbian has been pushed way down the price continuum, you’ll see us to do that very aggressively with Windows Phone as well. [2:16]

[08:07]: Our Plan B is to make Plan A successful. Just to be clear. What we’re doing is not thinking of MeeGo as the Plan B. We’re thinking about MeeGo and related development work as what’s the next generation. So to the extent that today there is a three horse race – Windows Phone, Android, Apple, and so forth – what comes next, what is the next major wave of business and technological disruption. We want to make it sure that we’re leading through that as well, and so the efforts will focus further into the future. [8:35]

Update: Nokia N9 UX [?Swipe?] on MeeGo 1.2 Harmattan [June 24, 2011]

Update: Open Letter from Purnima Kochikar to Developer Community [March 25, 2011] (emphasis is mine):

First, let’s recap what it is we announced; the three main areas of our strategy:

  1. Plans for a broad strategic partnership with Microsoft on Windows Phone
  2. Connecting the Next Billion
  3. Future disruptive technologies

What about Symbian? What about Qt?

Understandably, these are the first questions that come to mind. Although Windows Phone will become our primary smartphone platform, we will continue to deliver a great deal of value from Symbian. We’re making investments that will help us to engage and attract existing and new Symbian users and allow us to launch new competitive smartphones.

Over the past weeks we have been evaluating our Symbian roadmap and now feel confident we will have a strong portfolio of new products during our transition period – i.e. 2011 and 2012. These devices will take advantage of the strong integration of devices and services as well as our strength in areas such as imaging and location-based services. They will also include improvements in hardware performance such as GHz+ processing capabilities and faster graphics speeds.

To further enhance the competitiveness of these products we will deliver updates to the current Symbian user experience. The first major update will arrive in summer, delivering a new home screen, new flexible widgets, new icons, a faster browser, new Navbar and a fresh look and feel to Ovi Store and Ovi Maps, including integration of social media services in Ovi Maps….

I’ve been asked many times how long we will support Symbian and I’m sure for many of you it feels we have been avoiding the question.  The truth is, it is very difficult to provide a single answer. We hope to bring devices based on Windows Phone to market as quickly as possible, but Windows Phone will not have all language and all localization capabilities from day one.

In many markets, including markets where Symbian is currently the lead smartphone platform with significant market share such as China, India, Russia and Turkey, we will continue to make our Symbian portfolio as competitive as possible while we work with Microsoft to introduce Windows Phone. For that reason certain markets will play a more significant role in selling the 150 million Symbian devices than others and we will be selling devices long after Windows Phone devices from Nokia have already started to appear in other markets. That is why we cannot give you the date when Symbian will no longer be supported.

Qt, the development platform for Symbian and future MeeGo technology remains critically important and Nokia is committed to investment in Qt as the best toolset for those platforms and we are focusing on future developments in part by our plan to divest the commercial licensing business [“by the end of March 2011” Digia to acquire Qt commercial licensing business from Nokia [March 7, 2011]], used mainly by developers of embedded and desktop applications beyond the mobile market. [“Qt is actively used by around 3500 desktop and embedded customer companies which will be transferred to Digia upon closing. The commercial customers represent a broad range of industries, e.g. consumer electronics, finance, aviation, energy, defence and media.”]

Additionally we are readying app analytics, in-app advertising, in-app purchasing, a new browser and hardware enhancements. There are a lot of new things for developers to take advantage of in these soon-to-be-released APIs. We are continuing to explore Qt for use in other strategic investment areas as well.

WHAT IS NOT CLEAR AT ALL FROM THE VIDEO is the global market situation in all its details and nuances which forced Nokia to make such a radical change in its alltime strategies of going alone. From simple news articles it is also not clear to outsiders whether it was the best decision for Nokia or not, specifically considering the current favorite of the market, the Google Android platform. And to have a clear picture on both is more the essential. For everybody who is doubting that please first read Nokia’s radical CEO has a mercenary, checkered past [Feb 14, 2011] and after being confused with that (especially with the comments part) get yourself familiar with (emphasis is mine):

Shanzai [alt. sp. shanzhai or Shan Zai] literally means “Mountain Bandit or Fortress” [here is a very detailed wikipedia explanation] in Mandarin Chinese. It is a phenomenon that goes far beyond the simplistic view of “copycat products” and in popular Chinese cultural usage is used to describe a vendor who operates a business without observing traditional rules or practicesoften resulting in innovative and unusual products or business models. Reading the stories on this website will open your eyes to a whole new business phenomenon that is affecting all of our lives whether we realize it or not.

from the Shanzai.com opened in July 2009, when it became obvious to Timothy James Brown, an IT executive working in Asia for the past 13 years, that Shanzhai (I will use rather this form as it is more general in referenced sources used below) is indeed a new business phenomenon which will start to influence the non-Chinese speaking world of the global technology in an big way. In the last two years another new name also came out for part of Shanzhai: white-box vendors, to reflect the fact that they were hard pressed (by the government) to leave the gray-market, thus to become legitimate in all respects, as well as naturally becoming larger scale operations capable of entering the international markets.

It is also worth to look at China Gray-Market Cell Phone Shipments Slow in 2011 [iSuppli press release, Dec 16, 2010] (emphasis is mine):

China’s gray-market cell phone shipments will amount to 255 million units in 2011, up 11.8 percent from 228 million in 2010. This compares to a rise of 43.6 percent in 2009.

Gray Market Handset Shipment Forecast by iSuppli -- Dec-2010

Gray-market handsets are cell phones manufactured in China that are not recognized or licensed by government regulators. Makers of these products generally do not pay China’s value-added taxes and, therefore, profit illegally from their participation in the market.

“The object of a nationwide government crackdown, the gray cell phone market in the world’s most populous country is facing some trepidation as official scrutiny focused on illegal handsets and as consumers are starting to lose some interest in the devices,” said Kevin Wang, director of China research at iSuppli. “This created particular challenges for white-box handsets – on which gray-market dealers can put their logos. These types of phones use smuggled chips, carry no certification from China’s Ministry of Industry and Information Technology, sport fake international mobile equipment identity codes and are smuggled to Hong Kong to avoid value-added taxes.”

What growth there is in 2011 will be driven by demand from emerging countries as well as by falling average selling prices for gray handsets.

After growing in 2011, the gray market will begin to decline in 2012. This is because gray market cell phone suppliers will be unable to cut prices any further – even if they wish to win more new customers in emerging countries. Suppliers also will find themselves competing with an increasing number of locally branded original equipment manufacturers (OEMs) that provide better quality and after-sales service, iSuppli believes.

The market for gray handsets

Aside from serving domestic demand in China, gray handsets command sizable sales in other countries in the Asia-Pacific region, an area that includes Thailand, Vietnam, Indonesia and the Philippines – as well as Pakistan, a neighbor to China. And while gray-handset shipments in 2010 within China will fall to 24.2 million units, down from 33.2 million in 2009, gray-handset shipments to other Asian countries during the same period will rise to 154.4 million units, up from 110.2 million.

The market for non-gray handsets

Meanwhile, shipments from Chinese non-gray handset makers will grow by 36.4 percent in 2010 and continue to climb during the next five years. Not only will Chinese OEMs improve their global market sales – especially in the emerging countries – China’s white-box handset shipments also will keep growing. Furthermore, Chinese handset makers will win more orders from international carriers and from locally branded OEMs in the emerging markets.

Within the domestic market, China’s 3G handsets are poised for dramatic expansion – reaching 51 million units in 2010 and maintaining growth in the next five years, thanks to the continued decline of both 3G handset prices and service fees. By 2014, local 3G handsets are projected to reach 134 million units.

Read More > China’s Gray Market Handset Shipments Continue Expanding in 2011

Update: China’s innovation drive in “post-Shanzhai” era [Xinhua, March 11, 2011] (emphasis is mine)

The “Shanzhai” industry, which churns out electronic goods that imitate well-known brands, is declining even in its hotbed and birthplace in south China’s Shenzhen City.Signs that say “Shop to Let” adorned many electronic stores along Shenzhen’s Huaqiangbei Road. About one-third of Huaqiangbei’s estimated 3,000 sellers of “Shanzhai” cell phones have left the business, said Tang Ruijin, the secretary general of Shenzhen Mobile Communication Association.

The price cut of branded cell phones and the public’s growing intellectual property protection (IPR) awareness contributed to the decline of “Shanzhai.” But the heaviest blow came from China’s determination to enhance IPR protection and develop indigenous innovation, Tang said.

Sociologist Ai Jun noted that the “Shanzhai” phenomenon is a period that China and other developing countries must go through in fostering their companies’ innovative capacities. “It is a natural process to first imitate and then innovate.”

So it might quite well be the case that big name legacy businesses will need leaders like Stephen Elop to compete with the new, legalized (non-gray) “mountain bandits”, i.e. Shanzhai, if the bad-mouthing about Elop referred above is indeed true. If this is not true, then a very impressive leader, like Steve Elop is in the above video again, will be needed either.

You will understand this in all details when coming through the sections below:

  • Stir in the “old boys” camp: Nokia, Microsoft, Intel, and Apple
  • Earthquake like changes in the mobile phone market: numbers from IDC
  • Radical strategy shift/reorg at Nokia
  • White-box (Shanzhai) vendors
  • MediaTek as the catalyst of the white-board ecosystem
  • ZTE et al.

(If you don’t like such long readings you can finish with a quite literary type story of how Nokia’s Flirtations Put the Fear of Google Into Microsoft [WSJ, Feb 18, 2011]. The “only” thing you will miss will be the real understanding of the deal.)

Stir in the “old boys” camp: Nokia, Microsoft, Intel, and Apple

Nokia sees Windows phone prices dropping fast [Feb 18, 2011] (emphasis is mine)

Prices of smartphones using Microsoft’s Windows Phone software platform will fall fast, Nokia’s chief executive Stephen Elop said on Friday.

Last week Nokia, the world’s largest phone maker by volume, said it would adopt Microsoft’s software across its smartphones, raising fears the firm would miss out during the transition on surging demand for cheaper smartphone models.

Elop said one of the key topics in the talks on doing a deal with Microsoft was convincing Nokia that it could reach “a very low price point.”

We have become convinced that we can do that very quickly,” Chief Executive Stephen Elop said in a meeting with Finnish business journalists.

Trying to better compete with Apple’s iPhone, Microsoft has so far had tight hardware requirements for phone models using its software — pushing up handset prices and limiting the potential market.

As part of the push to a wider market and lower prices, Microsoft plans to open its mobile platform to other chipset suppliers beyond Qualcomm.

Nokia’s shares dropped more than 20 percent after it announced the Microsoft deal, but industry executives have said the new alliance will be good for competition and innovation.

Elop said the final agreement between Nokia and Microsoft would be signed in the next few months.

“The conclusion of the agreement will happen, we think, quite quickly, measured in a couple of months, it may be a bit longer, it may be shorter,” he said.

ELOP SELLS MICROSOFT, BUYS NOKIA

Elop, who joined Nokia from Microsoft last September said he sold all his Microsoft shares on February 17 and has bought 150,000 shares in Nokia. The Canadian is the first non-Finn to head the firm.

Shares in Nokia were up 0.7 percent at 6.76 euros by 1038 GMT.

Now it is worth to watch a 7-minute highlights video of Microsoft’s (Steve Ballmer’s) keynote from the Mobile World Congress 2011 to understand the enhanced version of Windows Phone 7 which will be introduced quite probably in fall of this year with the new WP7 Nokia devices:

Especially follow when Joe Belfiore, Corporate Vice President, Windows Phone Program Management, is showing the three most important enhancements for WPF7: the effect of hardware accelleration from IE9 added to the WP7 (demoed vs. iPhone 4 using the well known FishIE page demo), multitasking demoed by a combined phone and gaming scenario, and the new user interface element to have a task-switching view from the Back button.

Stephen Elop has summarized the significance and the benefits of this new strategic partnership as follows (during Steve Ballmer’s keynote at the Mobile World Congress 2011 [Feb 14, 2011]): (emphasis is mine)

It’s truly a pleasure to address you here today at a moment that we think is pretty significant in how we see the evolution of the mobile industry evolve.

You’ve heard me talk about it in a number of forums, that the world is shifting from a battle of devices to a war of ecosystems. And with the announcement that we made jointly with Microsoft just a couple of days ago, it’s very clear the selection we’ve made as it relates to that war.

As you read all of the press and the analyst commentary, of which there’s been a little bit over the last couple of days, it is the case that there’s a common theme emerging that I want to focus on, and that is that Microsoft and Nokia together represent a natural partnership. People are getting it, and they’re getting it for a variety of reasons.

First of all, if you think about the device experience, Nokia brings iconic hardware, incredible industrial design, and we’re matching that up and bringing that together with a leading operating system platform for the future, with an amazing amount of capability that you saw demonstrated here today, and between the two of us we have the understanding of what it means to take it from where it is today, even more broadly down through the pricing continuum so that we have the opportunity to deliver an entire portfolio and range of devices the world over. So, that’s an incredible bit of symmetry and the complementary nature of the relationship, a very powerful element.

A second point of symmetry relates to the area of our global reach, our distribution, the power of our brand, the volumes that we bring, and what we can do to strength the Windows ecosystem, while at the same time getting the support from Microsoft to help us address some of our challenges, which, of course, relates to reentering the U.S. market in a compelling way where Windows Phone has already had a strong start, so there’s an opportunity there.

And, of course, the third point of symmetry relates to the services area that Steve referenced here a few moments ago. We bring mapping, location-based services, the capability to do local advertising, and a variety of other things, together with things like Bing search, Office for productivity, Xbox, and a variety of other things, and thereby form that third ecosystem, because again what our consumers are purchasing today is a combination of all of those things, a single user experience that is a combination of all of those pieces, and together we’ve been able to bring those together to create that third ecosystem.

But if you were to sum it all up, what we’re able to do through this relationship is to ensure that we deliver products that are more competitive, which, of course, is what it’s all about.

Now, it is our belief that this is good news for operators. It’s good news for operators because we’re in a situation where we can actually create that third ecosystem and create an entirely different dynamic than that which was appearing to be forming as it relates to the actions of those other ecosystems, and you understand what I mean in terms of the importance of that balance, because that balance also allows operators to deliver more choice to the ultimate consumer, which is important.

It is also the case that for operators Nokia has had a longstanding relationship with operators all over the world. We understand what it means to be the most friendly partner to operators, we know what we have to do, and this is an area where we will be contributing our strength and our knowledge, our engineering and other assets to allow the Windows Phone ecosystem to be unquestionably the most operator-friendly ecosystem that exists today, because that’s clearly part of it.

We also think this is very good news for developers. It’s good news for developers because we can bring a scale operation, a large number of devices and opportunities to reach customers all over the world through what Nokia will deliver to this partnership through our broad reach and distribution.

Microsoft has a very modern collection of tools to help developers move in that direction. Nokia contributes things like operator billing and other forms of monetization that are not available through any of the other ecosystems. So, we bring those pieces together.

And, of course, finally and most importantly, we think this is great for consumers: iconic hardware, stellar software, combined with unique services, the third ecosystem. We’re thrilled to have this opportunity.

So, there’s been a lot of news, a lot of things going on. Our focus today shifts to delivering those first devices, and changing the industry.

The upcoming new features of the WP7 are not limited to the ones demonstrated by Joe Belfiore in the previous video. Here is another benefit the combined Windows Phone 7, Xbox and Kinect experience [Feb 14, 2011]:

The technology shown in the video is real and is intended to demonstrate the types of experiences Microsoft will be bringing to market. This is just one example of what’s possible as the company explores new ways to interact with Microsoft technology.

How Microsoft was summarizing the benefits of that strategic partnership? The shortest but still essential presentation of that was given on Microsoft financial analyst briefing at the 2011 Mobile World Congress [Feb 14, 2011] by Andy Lees, President of Microsoft Mobile Communications Business (emphasis is mine):

The other thing that we announced at Mobile World Congress is the partnership with Nokia. Our ecosystem is very important for the success of the phone. Nokia sold about 100 million smart phones over the last 12 months, and they are putting Windows Phone as their primary smart phone platform going forward. They’ll still continue to sell Symbian during a transition period. So, it will carry on in parallel for a while, but nonetheless, it’s a strong commitment to the ecosystem.

And that’s going to have a big acceleration for us. That’s going to have benefits for Microsoft, and actually for the ecosystem – that includes operators, ISVs, developers, and even, in many respects, the other OEMs. When speaking with the other OEMs, they’re excited about the competition in many respects, because it will broaden the overall size of the market, and <it will broaden> the adoption of Windows Phone by users and, therefore, the breadth of the ecosystem that supports it.

It’s a very good arrangement for ourselves, and it’s also good for Nokia. Nokia does a wide variety of things, not just the handset; they innovate in lots of different ways. And they’re going to be able to bring those <innovations> to the Windows Phone ecosystem. For example, the agreement includes mapping. We will adopt Nokia’s core mapping technology, which really is second to none. Bing will be integrated across everything that Nokia does. Their location services will generate advertising revenue for Nokia, not only on their phones, but actually across where those same location services are used on other phones, and even on the PC and other devices.

It’s a multi-faceted agreement, and it includes royalty payments for our software. It includes joint marketing and, as I mentioned, significant revenue opportunities. Considering the size of the smart phone market is growing to being in excess of half a billion phones over the next few years as a run rate, and an install base that will very quickly reach over a billion smart phones, you can see how the opportunity for them not only to sell more devices through the differentiation that they provide and the collaboration that we do to enable that, but also to add-on through these individual services.

QUESTION: My question would be related to the Nokia licensing agreement. Do you see Nokia as a more important licensee to Windows Phone 7 than others? And are they going to have any special treatment when it comes to royalty fees? Thank you.

ANDY LEES: So, first of all, it’s a much broader agreement than being a licensee. It includes an element where they are a licensee but, as I described before, it incorporates a wide variety of things like mapping, location-based services, advertising, search, joint marketing, and joint development. Because of the footprint of Nokia, and the overall unit volume that they represent, the multi-faceted element of this agreement is unique.

Having said that, we do continue to support other OEMs. They’re excited about the impact that that’s going to have on the ecosystem. They also have the ability to differentiate and compete. So, yes, the agreement is very unique, because it’s multifaceted and very broad with Nokia, and that’s part of the reason why I think it’s going to be good for them. But also, we know that an important element is to have competition, and Nokia recognizes that, and it’s an important part for them that the ecosystem is healthy.

QUESTION: I was wondering if you could help us understand a little bit about the timeframe for the design cycle for a new Windows Phone?

ANDY LEES: It varies a lot by OEM. If you were to start completely from scratch, it takes a while, 18 months. But, you don’t often need to start from scratch. If you’re asking specifically with Nokia, Nokia has lots of components that they can use in order to get a much faster start. So, it depends on how far progressed you already are, and how much is transferable with that.

One of the things that we did in Windows Phone 7 is to design much more of the totality of the core system, which does improve overall quality, and the predictability of the experience, but it has a nice side effect of being a much faster operating system for people to come on stream with. So, that’s an advantage of Windows Phone versus other options.

QUESTION: Nokia said that Microsoft will transfer billions to kind of get this ecosystem going. I’m just wondering what your priorities might be in terms of jumpstarting the initiative, where those billions might be spent, and also if you now have feedback from carriers of what they might be saying about the combination?

ANDY LEES: So, in terms of the agreement, it’s a long-term multi-faceted agreement, as I’ve just said. It includes search revenue transfer, advertising revenue transfer, location-based services revenue transfer, royalty payments for software, and it includes joint marketing. There are lots of facets of the deal. We’re not going into the numbers for each one of those things. Given the size of the total market, there is very substantial opportunity both for Nokia and for ourselves in order to grow units, revenue, and margin. We’re not predicting that, obviously. So, we see it as a good opportunity for us.

And I think Nokia went through a very rigorous evaluation process. Certainly from the conversations we had with them, and being involved in the process in that way, they did an evaluation that included the technology, a strategic evaluation of long-term roadmap and differentiation that they can provide, assets that they have that they can apply, and then, of course, an economic return through our businesses. And they chose this. They could have chosen whatever one, so they must think it’s the best opportunity for them going forward having done that, and I would say it was a very, very rigorous evaluation done over actually a few months. And it was probably one of the most rigorous things I’ve been involved in in that way.

QUESTION: Just a quick one on sortre of skins and customization. I just wondered whether Nokia would be able to customize the devices that they offer with Windows Phone 7. And then related to that, whether there was an issue with Qt for Windows 7, or whether it wasn’t a problem, because I think Stephen Elop last night said that Qt wouldn’t be available for Win 7. Thank you.

ANDY LEES: So, the first question is about differentiation. Yes, we’ll enable differentiation. What we don’t want to do, though, is fragment the ecosystem. And fragment it for developers, or indeed for end users. So, we have a collaborative development process with OEMs, and in this case particularly with Nokia, to be able to listen to what it is they want to do and then make a joint decision. And what they know is fragmentation in the ecosystem is ultimately a significant problem. And so they don’t want that. And so having change for the sake of change, which is what does happen in other places, is sometimes a negative thing. So, yes, they can differentiate, yes they can add value, yes, they can enhance in that way. However, we want to make sure that we are consistent.

And then the second question was to do with Qt. Qt is a development part of Symbian. It is not a development part of Windows Phone. We will be helping developers with Nokia, who want to do that transition. But, they will be transitioning from Qt to Windows Phone. They will carry on development of Symbian for a number of ‑‑ quite a period of time. They have a huge install base and developers will want to go through and continue to address that.

So, they’ll continue to enhance and support Qt for quite some time. I think they’ve predicted that they will be selling, even from this day forward, about 150 million copies of Symbian over the next few years. So, it’s not that it’s a dramatic change over – it’s that there will be an evolution and we’ll help developers with that transition.

QUESTION: Can you summarize for us your message to the operators as Stephen Elop put it earlier today, the most operator-friendly ecosystem?

ANDY LEES: Yes, if you look at the choices that operators have in terms of fully fledged ecosystems, the conversations we’ve had with operators is that they have been ecstatic without exception, and I mean so much so that what they have said to us is that this is strategically important for us. They would like to have a balance of ecosystems. They want to bet on having a balance of ecosystems in their network and therefore, they will disproportionately work to help make sure this ecosystem is successful.

One of the things they are finding is that increasingly the other ecosystems appear more and more hostile, with the people that are working on those using it as a way to control revenue flow and to control relationships with customers. [Quite obvious reference to Apple and the way how AppleStore is set up, could be even a reference to Android ecosystem as well.]

That’s not our strategy and our strategy is to be a full-fledged ecosystem. We’re not trying to own the customer in the place of somewhere else, we’re not trying to stop other people from making revenue on the phone. An ecosystem is all about people working together and that means making money together and dealing with customers together. So, that really is our strategy. We are therefore very operator-friendly. So is Nokia. And that really helps us, I think, quite a lot in getting their support.

UPDATE 2-Intel says will find new MeeGo partners [Feb 17, 2011] (emphasis is mine):

Intel Corp (INTC.O) said its partner Nokia dropped the MeeGo operating system [not exactly true, see later] after Microsoft offered “incredible” amounts of money for the phonemaker to switch to Windows but it would find new partners for MeeGo.

Intel’s Chief Executive Paul Otellini said in a meeting with analysts in London, accessed by Reuters via conference call, that Nokia’s (NOK1V.HE) choice of Microsoft (MSFT.O) over Google’s (GOOG.O) Android platform was a financial decision. [ID:nLDE71A0DG]

Otellini said Nokia’s Chief Executive Stephen Elop received “incredible offers — money” from Google and Microsoft to switch.

“I wouldn’t have made the decision he made, I would probably have gone to Android if I were him,” he said. “MeeGo would have been the best strategy but he concluded he couldn’t afford it.

Microsoft was not immediately available for comment.

Google Chief Executive Eric Schmidt said at the Mobile World Congress in Barcelona on Wednesday that he had held extensive talks to try to woo Nokia. [ID:nLDE71F026]

Otellini said Nokia would find it hard to differentiate using the Windows platform: “It would have been less hard on Android, on MeeGo he could have done it.”

“We will find another partner. The carriers still want a third ecosystem and the carriers want an open ecosystem, and that’s the thing that drives our motivation,” he said.

MeeGo was created last year by the merger of Nokia and Intel’s Linux-based platforms Maemo and Moblin. [ID:nLDE61E0Z2]

Otellini said in Barcelona that open systems had the edge over closed systems: “Some closed models will certainly survive, because you can optimise the experience, but in general, if you harness the ability of all the engineers in the world and the developers in the world, open wins.”

Intel as the new champion of open systems? YES. Nokia’s decision is – however – representing the best interests of Nokia. There is certainly nothing left to Mr. Ottelini as represent his own company’s best interests which he does well, by championing open systems for example. Another proof is just that when President Obama Visited Intel’s Oregon Research and Manufacturing Site, Highlights Education, Jobs and Innovation [Feb 18, 2011] the simultaneous announcement was that Intel to Invest More than $5 Billion to Build New Factory in Arizona [Feb 18, 2011] (emphasis is mine):

The new Arizona factory, designated Fab 42, will be the most advanced, high-volume semiconductor manufacturing facility in the world. Construction of the new fab is expected to begin in the middle of this year and is expected to be completed in 2013.

“The investment positions our manufacturing network for future growth,” said Brian Krzanich, senior vice president and general manager, Manufacturing and Supply Chain. “This fab will begin operations on a process that will allow us to create transistors with a minimum feature size of 14 nanometers. For Intel, manufacturing serves as the underpinning for our business and allows us to provide customers and consumers with leading-edge products in high volume. The unmatched scope and scale of our investments in manufacturing help Intel maintain industry leadership and drives innovation.”

While more than three-fourths of Intel’s sales come from outside of the United States, Intel manufactures three-fourths of its microprocessors in the United States. The addition of this new fab will increase the company’s American manufacturing capability significantly.

Building the new fab on the leading-edge 14-nanometer process enables Intel to manufacture more powerful and efficient computer chips. The nanometer specification refers to the minimum dimensions of transistor technology. A nanometer is one-billionth of a meter or the size one ninety-thousandth the width of an average human hair.

“The products based on these leading-edge chips will give consumers unprecedented levels of performance and power efficiency across a range of computing devices from high-end servers to ultra-sleek portable devices,” said Krzanich.

Fab 42 will be built as a 300mm factory, which refers to the size of the wafers that contain the computer chips. The project will create thousands of construction and permanent manufacturing jobs at Intel’s Arizona site.

Considering that it was just last October as came the news Intel Announces Multi-Billion-Dollar Investment in Next-Generation Manufacturing in U.S. [Oct 19, 2010] (emphasis is mine):

  • Intel will spend $6-8 billion in manufacturing to support future technology advancements in Arizona and Oregon.
  • The investment supports the creation of 6,000-8,000 construction jobs and 800-1,000 permanent high-tech jobs, and also allows Intel to maintain its current manufacturing employment base at these U.S. sites.
  • The investment will fund a new development fab in Oregon, as well as upgrades to four existing fabs to manufacture the next-generation 22-nanometer (nm) process technology.
  • Intel’s next-generation, 22nm microprocessors will enable sleeker device designs, higher performance and longer battery life at lower costs.

Intel’s strategy – quite obviously – is to “outmanufacture” everybody else. See also my post: Intel’s industry position and prospects for years ahead [Dec 9, 2010 with updates till Jan 14, 2011]. In a longer term it is definitely the best representation of Intel’s own interests.

Parallel to that they are strengthening their software-related investments as well, see Intel Capital Investments to Help Expand the Mobile Ecosystem [Feb 14, 2011] (emphasis is mine):

MOBILE WORLD CONGRESS, Barcelona, Feb. 14, 2011 – Intel Capital, Intel Corporation’s global investment organization, today announced six new investments to drive continued innovation across the mobile hardware, software and applications ecosystems. The new deals total approximately $26 million and include open source mobile software solutions company Borqs; location-based mapping platform and tools provider CloudMade; QuantumFilm™-based image sensor vendor InVisage; open source online video platform Kaltura; online authentication provider SecureKey Technologies; and unified communications and collaboration service software provider VisionOSS Solutions.

The six companies each have developed innovative technologies to enhance the user experience across a continuum of devices, including handhelds, tablets and laptops, that run a variety of operating systems including MeeGo and Android*.

Borqs Ltd. (Borqs) (Beijing) is an Android software integrator for mobile devices. The company works with name-brand smart phone OEMs, semi-conductor companies, and mobile operators to enhance the Android system to meet their requirements. With expertise ranging from kernel, device-level drivers to top-level user interfaces, Borqs Android solution has been deployed in more than 30 Android mobile devices for W-CDMA networks and TD-SCDMA networks. Borqs Android solution is Google CTS compliant. The investment from Intel Capital, subject to the satisfaction of closing conditions, aligns with Intel’s port of choice strategy to support multiple operating systems across a variety of devices and will be used by the company for business development.

CloudMade (Menlo Park, Calif.) was founded in 2007 to enable developers to build location-enabled applications and services. The company provides application developers with a range of innovative tools and application programming interfaces to enable the creation of unique location-based applications across all major web and mobile platforms. Today there are more than 16,000 developers using CloudMade’s tools to create applications for mobile and Web consumers. The investment from Intel Capital will be used to further strengthen the platform and to work with developers to provide them with an unparalleled suite of tools designed for their specific needs. CloudMade will be certified under the Intel’s AppUp™ application store.

Kaltura (New York) provides a widely adopted open source online video platform. More than 100,000 media and entertainment companies, enterprises, small- and medium-size businesses, educational institutions, service providers, platform vendors and system integrators use Kaltura’s flexible platform to enhance their websites, Web services and Web platforms with advanced customized rich-media functionalities that are delivered through any connected device. Kaltura’s features and products enable the easy deployment of custom workflows involving video, photo and audio creation, ingestion, publishing, management, distribution, engagement, monetization and analysis. The investment will be used to enhance rich-media functionalities on tablets, mobile phones and other connected devices, with a special emphasis on supporting the MeeGo™ mobile operating system and Intel’s AppUp application store.

Software-wise Intel’s strategic bet is definitely the open-source as it was already shown in my earlier post Intel’s industry position and prospects for years ahead [Dec 9, 2010 with updates till Jan 14, 2011] by a single presentation excerpt of:

(where Nokia was already missing from the MeeGo design wins !) as well as by the another post of mine Intel Oak Trail to beat ARM with MeeGo specific prices [Nov 25, 2010]. Note that Android is high on Intel’s list as well since MeeGo is a quite new system. See Nokia, Intel release MeeGo 1.1; lacks support for tablets [Oct 29, 2010], For developers’ eyes only: MeeGo version 1.1 [Nokia’s own blog, Oct 28, 2010], MeeGo 1.1 Release [meego.com, Oct 28, 2010], MeeGo v1.1 for Netbooks (Google Chrome Browser) [meego.com], MeeGo v1.1 for Handset [meego.com] and MeeGo v1.1 for In-Vehicle Infotainment (IVI) [meego.com]. Nokia also had different plans for MeeGo from Intel back then platformwise as per Nokia Makes Qt its Sole App Development Framework [Oct 21, 2010], Nokia Focuses on Qt to Extend Reach for Developers, Make Mobile Experience Richer for Users [Oct 21, 2010] and Nokia further refines development strategy to unify environments for Symbian and MeeGo [Oct 21, 2010].

With the latest Nokia decision to select Windows Phone 7 as its primary operating system Nokia’s plans for MeeGo changed only in the sense that Qt has been dropped as the unified environment for developers but as per the Nokia outlines new strategy, introduces new leadership, operational structure [Feb 11, 2011]:

Under the new strategy, MeeGo becomes an open-source, mobile operating system project. MeeGo will place increased emphasis on longer-term market exploration of next-generation devices, platforms and user experiences. Nokia still plans to ship a MeeGo-related product later this year.

which is very painful for Intel as it practically should push MeeGo through the market alone while Nokia can pick the fruits of Intel’s effort practically free of charge when MeeGo becomes a factor on the market. Nokia’s biggest contribution to the MeeGo success will be just the advanced user experience as has been promised before, see my earlier post Nokia to enter design pattern competition for 2011 smartphones with MeeGo [Dec 9, 2010]. But that user experience wil be kept to Nokia, so Intel will not benefit from it elsewhere.

Whether Intel understands the upcoming threat to its business is still not clear from all that above.

Meanwhile Apple definitely needs to take the white-box vendors threat more seriously as indicated by two recent news below:

New York Times: Apple Is Not Making a Smaller iPhone [Feb 18, 2011]

The New York Times has poured cold water on a rumor that Apple is preparing to sell a smaller version of the iPhone.

The report conflicts with stories published earlier this week by Bloomberg and The Wall Street Journal, who both claim that Apple is making a smaller iPhone that relies heavily on cloud-based storage and media streaming.

Citing an anonymous source, NYT explained that Apple is working on methods to bring costs of the iPhone down, and a smaller iPhone wouldn’t necessarily be cheaper to produce, nor would it be easier to operate.

Two major publications say something is happening, and one major publication is saying it’s not. We’re inclined to believe NYT, however, because the explanation seems more rational. Reducing storage and size wouldn’t bring down costs much, and a different screen size would also cause fragmentation in the App Store.

Apples biggest plans to upset faster retail store progress in China [Shanzai.com, Feb 21, 2010]:

We’ve reported before that Apple was lagging on meeting its earlier commitments to open 15 or 25 retail stores in China this year but now it seems an effort to build its biggest store yet will slow things down further.

40,000 people/day apparently tromp through the few Apple retail outlets in China at the moment (I’m never sure but now I think there are 5 locations)… so bigger is probably a much welcome strategy for building an Apple shrine/store.

Since Apple revenue in China last year grew over 4x from the previous year, they’re probably needing to scout new locations that can handle higher retail traffic volumes.

Apple, which had all but neglected the China market for years, has recently stepped up efforts to expand outside the U.S. In its last earnings call, the company’s Chief Operating Officer Tim Cook said revenue from Greater China reached $2.6 billion, four times the company’s China revenue a year earlier.Source

Apparently Chinese Apple retail store traffic is also 4x larger than American retail traffic so I suppose they’ll also need to find 4x the geniuses to guide consumers through the buy and use process.

 

Earthquake like changes in the mobile phone market: numbers from IDC

According to CORRECTING and REPLACING Mobile Phone Market Grows 17.9% in Fourth Quarter, According to IDC [Jan 28] the phone market changed significantly in 2010:

Top Five Mobile Phone Vendors in 2010 by IDC

Considering the market changes in the 4th quarter 2010 the changes are even more significant:

Top Five Mobile Phone Vendors in Q4 2010 by IDC

IDC also released information about the smartphone part of the phone market. See Android Rises, Symbian^3 and Windows Phone 7 Launch as Worldwide Smartphone Shipments Increase 87.2% Year Over Year, According to IDC [Feb 7, 2011]. Here we can see even more troubling signs for four traditional phone vendors in the Top 5. Year-over-Year the situation is as follows:

Top Five Smartphone Vendors in 2010 by IDC

Here Research in Motion (the Blackberry vendor) is quite visiblibly in a trouble zone as its strong smartphone position is fast declining against such Top 5 challengers as Samsung and HTC. Even Apple should worry since it barely succeeded grow a little faster than the overall smartphone market but the upcoming challengers, Samsung and HTC grew by several times faster, 318.2% and 165.4% accordingly. This observation for all three Top 5 companies in trouble is even more proven by IDC’s 4th quarter 2010 numbers:

Top Five Smartphone Vendors in Q4 2010 by IDC

Here we can see that Nokia lost 27.5% of its quarterly market share in a year, Research in Motion (RIM) 27.1%, and Apple remained on the same quarterly market share as a year before which means that all the lost marketshare by Nokia and RIM, which is not less than 16% of the overall (10.6% + 5.4% subsequently) went to the other challengers. Samsung’s and HTC’s gains were “just” 10.3% of the overall (6.6% + 4% subsequently) which means that even vendors in the “others” category were able to pick 5.4% out of the Nokia’s and RIM’s 16% combined loss of marketshare. For Apple it is as much of a danger sign as the most obvious things for Nokia and RIM.

IDC’s additional verbatim assesment of the 4th quarter situation (from their press release indicated above, emphasis is mine):

Android continues to gain by leaps and bounds, helping to drive the smartphone market,” said Ramon Llamas, senior research analyst with IDC’s Mobile Phone Technology and Trends team. “It has become the cornerstone of multiple vendors’ smartphone strategies, and has quickly become a challenger to market leader Symbian. Although Symbian has the backing of market leader Nokia, Android has multiple vendors, including HTC, LG Electronics, Motorola, Samsung and a growing list of companies deploying Android on their devices.”

Adding to the competitive landscape is the entrance of two refreshed operating systems, Symbian^3 and Windows Phone 7 [wrong: WP7 is a completely new system, has nothing related to the previous Windows Mobile line]. “In their first quarter of commercial availability, both Symbian^3 and Windows Phone 7 ramped up quickly, just in time for the holidays,” added Llamas. “By the end of the quarter, Nokia had shipped five million Symbian^3 units while Windows Phone 7 vendors shipped more than 1.5 million units. Now, with the holiday quarter over, both platforms will need to sustain this initial growth in the quarters to come.”

Regarding Nokia IDC was even somewhat positive:

Nokia noted the positive progress of its new Symbian^3 smartphones during 4Q10: five million units combined from the N8, C7, and C601 worldwide, a strong showing given their recent introduction to the market. At the same time, Nokia’s volumes are largely comprised of older devices, while MeeGo-powered devices have yet to arrive on the market. In addition, Nokia continues to struggle in the North America market. The recent cancellation of the X7 smartphone at AT&T highlights Nokia’s challenges and a new device has yet to be revealed.

Regarding Apple and RIM IDC did not see any kind of problems worth to mention. Regarding the overal mobile phone market situation (as given in the first press release linked so far) their observations are (emphasis is mine):

It’s not just smartphone-focused suppliers that capitalized on the mobile phone market’s renewed growth last year. ZTE, a company that sells primarily lower-cost feature phones in emerging markets, moved into the number 4 position worldwide in 4Q10. It is the first quarter the Chinese handset maker finished among IDC’s Top 5 vendors.

“Change-up among the number four and five vendors could be a regular occurrence this year,” added Ramon Llamas, senior research analyst with IDC’s Mobile Devices Technology and Trends team. “Motorola, Research In Motion, and Sony Ericsson, all vendors with a tight focus on the fast-growing smartphone market who had ranked among the top five worldwide vendors during 2010 are well within striking distance to move back into the top five list.”

Regionally they were only indicating that (emphasis is mine):

Domestic brands in India like G-Five, Micromax, and Karbonn grew with aggressive advertising and branding activities for entry-level phones, while ZTE and Huawei worked closely with carriers to push low-cost Android smartphones in China. …

… In Western Europe, carrier smartphone promotions motivated more users to scrap their feature phones, resulting in strong smartphone sales. … In CEMA, quarterly volumes breached the 70 million unit threshold for the first time, marked by an influx of Chinese and unbranded handsets. Meanwhile, smartphones experienced brisk growth due to falling prices and more Android-powered devices.

The United States … [and] Canada, the focus was on smartphones. Android-powered devices from multiple players, along with incumbent vendors RIM and Apple, pushed shipment volumes to a new record level.

In Latin America, sustained user interest in smartphones drove the market, resulting in strong results for Nokia, RIM, and Samsung as well as relative newcomer Huawei. Smartphones, as well as QWERTY-enabled feature phones, helped boost social networking and messaging, two fast-growing trends in the market. Finally, Alcatel and ZTE once again thrived in the inexpensive entry-level device market.

The numbers as have been indicated by me on the above tables are however exceptionally worrying for Nokia as the leaked internal memo (Engadget, Feb 8) by their new CEO Stephen Elop has described to the employees (emphasis is mine):

In 2008, Apple’s market share in the $300+ price range was 25 percent; by 2010 it escalated to 61 percent. They are enjoying a tremendous growth trajectory with a 78 percent earnings growth year over year in Q4 2010. Apple demonstrated that if designed well, consumers would buy a high-priced phone with a great experience and developers would build applications. They changed the game, and today, Apple owns the high-end range.

And then, there is Android. In about two years, Android created a platform that attracts application developers, service providers and hardware manufacturers. Android came in at the high-end, they are now winning the mid-range, and quickly they are going downstream to phones under €100. Google has become a gravitational force, drawing much of the industry’s innovation to its core.

Let’s not forget about the low-end price range. In 2008, MediaTek supplied complete reference designs for phone chipsets, which enabled manufacturers in the Shenzhen region of China to produce phones at an unbelievable pace. By some accounts, this ecosystem now produces more than one third of the phones sold globally – taking share from us in emerging markets.

While competitors poured flames on our market share, what happened at Nokia? We fell behind, we missed big trends, and we lost time. At that time, we thought we were making the right decisions; but, with the benefit of hindsight, we now find ourselves years behind.

We thought MeeGo would be a platform for winning high-end smartphones. However, at this rate, by the end of 2011, we might have only one MeeGo product in the market.

At the midrange, we have Symbian. It has proven to be non-competitive in leading markets like North America. Additionally, Symbian is proving to be an increasingly difficult environment in which to develop to meet the continuously expanding consumer requirements, leading to slowness in product development and also creating a disadvantage when we seek to take advantage of new hardware platforms. …

At the lower-end price range, Chinese OEMs are cranking out a device much faster than, as one Nokia employee said only partially in jest, “the time that it takes us to polish a PowerPoint presentation.” They are fast, they are cheap, and they are challenging us.

And the truly perplexing aspect is that we’re not even fighting with the right weapons. We are still too often trying to approach each price range on a device-to-device basis.

The battle of devices has now become a war of ecosystems, where ecosystems include not only the hardware and software of the device, but developers, applications, ecommerce, advertising, search, social applications, location-based services, unified communications and many other things. Our competitors aren’t taking our market share with devices; they are taking our market share with an entire ecosystem. This means we’re going to have to decide how we either build, catalyse or join an ecosystem.

Note that Gartner’s numbers are diufferent, as descibed in Gartner’s 77 million shanzhai mystery [Nov 26, 2010]

Radical strategy shift/reorg at Nokia

As the result of Elop’s assesment on February 11 came the news that Nokia and Microsoft announce plans for a broad strategic partnership to build a new global ecosystem [Feb 11]. The line of thought behind this decision from Nokia’s part was clearly explained a couple of days later on the Mobile World Congress 2011 on the Stephen Elop’s Nokia Press Conference at MWC [Feb 14] as (emphasis is mine):

There were three possible options for Nokia’s future, he explained. It might pursue the internal route and rely on Symbian and MeeGo to see Nokia through to regaining its mobile crown through further and faster development. Second, the company could go to Google and become another licensee of the Android platform. Third, it could become a licensee of Microsoft’s Windows Phone.

Looking at the pace and performance of Symbian and MeeGo over recent years was enough to discount the first choice. Of course, he then talked to Google and Microsoft, the only two realistic external choices.

Both companies were keen. Nokia has a massive global footprint and retains an enormous market share. Nokia was, in Stephen’s words, “suited” by both companies.

So why choose Microsoft over Google? It’s all about how it affects the mobile ecosystem.

If Nokia had gone with Google, it would have been another Android licensee and handed Google massive share. The world of mobile phones would have become a “duopoly” – Google versus Apple.

Going with Microsoft might look counter-intuitive, given the lower market share and youth of that mobile operating system.

However the point, Stephen said, was exactly that. Microsoft has everything to gain by supporting Nokia’s venture in creating devices with its operating system. Windows Phone is a challenger in the mobile space, not one of the current incumbents.

Here’s the way the deal works: Nokia pays Microsoft royalties, it gives Microsoft unprecedented reach, it also gives them access to services such as Maps. Nokia’s hardware expertise creates devices that truly let the Microsoft’s new OS shine.

In return, Nokia gets a substantial reduction in its operating expenses; it gains a range of services to enrich its smartphone offering. There’s a new revenue stream for Nokia in the form of mobile advertising. It gets marketing support with a value of billions of dollars.

The real point is that there’s a co-dependency between Nokia and Microsoft – both partners need the other to fully succeed. That’s part of what makes it the right choice.

The other part of this is about new ecosystems. There are two flourishing apps and services ecosystems currently, Apple’s and Google’s. The combination of Nokia and Microsoft creates a third choice: that’s good news for consumers and good news for the whole of the mobile industry. More choice and more competition drives everything forward.

That means a complete overhaul of Nokia businesses which is best described in the Nokia provides financial targets and forecasts linked to new strategy [Feb 11] as (emphasis is mine):

Due to the initiation of Nokia’s strategic transformation on February 11, 2011, the full-year prospects for its Devices & Services business are subject to significant uncertainties, and therefore Nokia believes it is not appropriate to provide annual targets for 2011 at the present time. …

Nokia expects 2011 and 2012 to be transition years, as the company invests to build the planned winning ecosystem with Microsoft. After the transition, Nokia targets longer-term:
– Devices & Services net sales to grow faster than the market.
– Devices & Services non-IFRS* operating margin to be 10% or more.

During this two years transition there will be the following essential setup as per the Nokia outlines new strategy, introduces new leadership, operational structure [Feb 11]:

With Nokia’s planned move to Windows Phone as its primary smartphone platform, Symbian becomes a franchise platform, leveraging previous investments to harvest additional value. This strategy recognizes the opportunity to retain and transition the installed base of 200 million Symbian owners. Nokia expects to sell approximately 150 million more Symbian devices in the years to come.

Under the new strategy, MeeGo becomes an open-source, mobile operating system project. MeeGo will place increased emphasis on longer-term market exploration of next-generation devices, platforms and user experiences. Nokia still plans to ship a MeeGo-related product later this year.

In feature phones, Nokia unveiled a renewed strategy to leverage its innovation and strength in growth markets to connect the next billion people to their first Internet and application experience.

As of April 1, Nokia will have a new company structure, which features two distinct business units: Smart Devices and Mobile Phones. They will focus on Nokia’s key business areas: high-end smartphones and mass-market mobile phones.  Each unit will have profit-and-loss responsibility and end-to-end accountability for the full consumer experience, including product development, product management and product marketing.

Smart Devices will be responsible for building Nokia’s leadership in smartphones and will be led by Jo Harlow [she is a 49 years old American marketing executive who joined Nokia in 2003 as VP of North America Mobile Phones Marketing, then responsible for the same just globally as a SVP, then a few device specific roles like Symbian smartphones and finally appointed to her smartphones releated role in July 2010, before the arrival of Elop]. The following sub-units now in Mobile Solutions will move under Smart Devices:
– Symbian Smartphones
– MeeGo Computers
– Strategic Business Operations

To support the planned new partnership with Microsoft, Smart Devices will be responsible for creating a winning Windows Phone portfolio.

Mobile Phones will drive Nokia’s “web for the next billion” strategy [i.e. the feature phones as mentioned above]. Mobile Phones will leverage its innovation and strength in growth markets to connect the next billion people and bring them affordable access to the Internet and applications. The Mobile Phones unit will be led by Mary McDowell [she is a 46 years old American computer industry executive who joined Nokia in 2004 as an executive VP and GM of Enterprise Solutions, then leading the Corporate Development unit from 2008 until assuming her current role in July 2010, before the arrival of Elop].

Services and Developer Experience will be responsible for Nokia’s global services portfolio [i.e. location, messaging, entertainment and context-based services], developer offering, developer relations and integration of partner service offerings. Tero Ojanpera will lead the Services and Developer Experience unit in an acting capacity. [46 years old Tero Ojanpera has been with Nokia along his full carrier which started in research. He is said to be an oustanding radio engineer back then. In 2003-2004, he headed the Nokia Research Center, and was appointed chief strategy officer a year later. From 2006, Tero served as chief technology officer, responsible for corporate and technology strategy, strategic alliances and partnerships, research and intellectual property rights. He has been a member of the Nokia Leadership Team since 2005, and was appointed to his current position in 2009.]

NAVTEQ, an integral part of Nokia’s location and advertising business, will be headed by Larry Kaplan, and continue as a separate reporting entity.

Design, responsible for Nokia product and user experience design, will be led by Marko Ahtisaari. [Although not a member of the Leadership Team he is an equally important person on the new operational structure. Marko Ahtisaari re-joined Nokia in September 2009 to head the Design team within the new Solutions Unit and then becoming SVP Design and User Experience. Before he was the CEO and co-founder of Dopplr, the online social atlas for smart travel acquired simultaneously by Nokia. In 2006-2008, he was the Head of Brand & Design at Blyk, the free mobile service for young people. Previously, he worked at Nokia as Director of Design Strategy and held management positions in corporate strategy and venturing since 2002. In 1999-2001, he built and led the mobile practice at digital services company Satama.]

[as noted by ArcticStartup [Sept 29, 2009]: “Last time he stayed almost two years with the Finnish mobile phone giant pulling the Design unit from individual separate pieces into a well functioning shop before leaving in August 2006 to Blyk as a Head of Brand & Design.”]

Note that the above structure essentially means the dissolution of the previous Mobile Solutions unit with dropping the mobile computers focus for the next two years (just retained with MeeGo for longer term) as well as the focus on the “world-class suite of internet services under the Ovi brand” which is now moved into a joint services and developers unit responsibility. The previous structure was as follows:

Structure

July 1, 2010

Our organizational structure is designed to position us for a world where the mobile device, the Internet and the computer are fusing together.

Mobile Solutions is responsible for developing and managing our portfolio of smartphones and mobile computers. The team is also busy developing a world-class suite of internet services under the Ovi brand, with a strong focus on maps and navigation, music, messaging and media. Mobile Phones is responsible for developing and managing our portfolio of affordable mobile phones, as well as a range of services that people can access with them. Markets manages our supply chains, sales channels, brand and marketing activities, and is responsible for delivering our mobile solutions and mobile phones to the market.

Nokia Siemens Networks, jointly owned by Nokia and Siemens, provides wireless and fixed network infrastructure, communications and networks service platforms, as well as professional services to operators and service providers.

NAVTEQ is a leading provider of comprehensive digital map data and related location-based content and services for automotive navigation systems, mobile navigation devices, Internet-based mapping applications, and government and business solutions.

White-box (Shanzhai) vendors

While Nokia and Microsoft are talking about the need to have a third smartphone ecosystem (in addition to Apple’s and Google/Android’s) the fact is that within the Google/Android camp there is an absolutely threatening ecosystem in itself which is generally called the China-based white-box vendors. The Special Report: China’s white-box handset market (Jul 26) from Digitimes Research (Taiwan) describing this as follows (emphasis is mine):

In China, there is a specific form of business operation that has come to be called the white-box industry mostly targeting the vast low-income segment of the market. The white-box supply chain is a production system centered in southern China, with product designs relying on core component suppliers and with a supply chain working on a division of labor, high flexibility and a minimal amount of assets.China's white-box handset market

In more details this kind of model is described in Digitimes Research analyzes China white-box handset market in new report [Aug 10] (emphasis is mine):

While the mainstream business model for manufacturing and distributing mobile handsets remains leveraging the OBM/ODM/OEM/EMS model, a whole new paradigm has developed within China’s domestic market, according to a new report from Digitimes Research.

The local China-based industry called “Shanzhai,” but translated as “white box,” is based on small-scale or underground factories whose products are seldom sold through regular sales channels, but the scale of the market now rivals that of global top-10 brands or major Chinese brands in the domestic China market, Digitimes Research pointed out. The “white-box” industry currently accounts for more than 100 million handset shipments, and some players in the market, such as K-Touch (Beijing Tianyu Communication Equipment) and Gionee have made the leap to become recognized brands.

While accounting for about one-third of domestic handset shipments, the white-box industry in China has been working under the acquiescence, and even active encouragement in some cases, of the government and is proclaimed by its proponents as representing the success of China’s homegrown innovation and enterprise. The Digitimes Research special report examines the difference between the traditional ODM supply chain and the virtual organization used by white-box players, and highlights the advantages of the white-box business model.

Link: China’s white-box handset market

Next we should clearly understand What drove the shanzhai success? [Shanzai.com, Nov 13, 2009]:

Shanzhai players have gained a strong foothold in the local market in the last two years [i.e. in 2008 and 2009]. Although they started off with copied brands, nearly one third of them are now [i.e. Nov’09] becoming more and more innovative in their products.

… Five years back, none of us had even heard of shanzhai. Copy or fake products existed only in the grey market.

… why are we instantly attracted to shanzhai products?

Price is surely one major factor. While you get a shanzhaid version of an Apple iPhone in China for around USD 70, the real iPhone will cost you 5 to 7 times more. The shanzhai have given a new ray of hope to the lower middle classes to flaunt the features of branded phones.

… While established brands are cautious about trying something new, the shanzhai design their products according to customer demand. Netbooks with CD drives and dual SIM phones with TV streaming are common examples of shanzhai designing customized products for identified consumers.

The shanzhai option is also often the first way of getting a new product … er well, a version of a new model anyway, something Kiran [from shanzai.com] pointed out, “Since they are acutely aware of the need to cater to local needs, they have the inherent capability to produce a slew of new devices with the latest technology every one to two months. This innovative, flexible and cheap market strategy poses a huge challenge to legal branded manufacturers. For the branded manufactures, the gestation period of a new product is much longer than the shanzhai counterparts. If a new product is designed it takes approximately 6 months to release into the market as it passes through different safety and regulatory measures. By the time it enters the market, it is already out of date due to the early availability of its clone products devised by the shanzhai bandits.”

The shanzhai are also rebelling against established brands by promoting open source platforms, which cost less and offer similar features of other platforms. … The actual manufacturing cost of a phone is only 20% of the retail price of a phone; the rest is spent in designing, marketing, tax, regulatory checks, safety tests and post sales services. Shanzhai products save the funds spent in TV advertising and other marketing activities.

While price, specs and rebellion against established brands has contributed to the success of the shanzhai business model, another major factor responsible for the sudden boom of the shanzhai is the economic downturn of 2007-09. Although the impact of the financial crisis is less evident in countries like China and India, it has paralyzed foreign investments to a large extent. The recession has actually affected the spending power of people, so a person thinks twice even before making a small investment like buying a new phone. So when offered similar features at a much lower price, many people go for the cheaper option where they once might have stuck loyally with a big brand.

Shanzhai distribution channels work quite effectively and actually quite speedily too. In Shenzhen, a small group of workers have their own factories with R&D, software development and hardware manufacturing facilities. Go to any shop in Shenzhen in the morning and tell them the features you want in your mobile phone and collect your phone in the evening! Shanzhai prefers its marketing through its local channels; Chinese people also prefer their local brands over international products. If we take a look at tech building companies in countries like India and Brazil, the shanzhai lead there too. They export the hardware parts to save export duties, and then the completed products can be assembled easily in these countries.

[Another factor – in fact a major “catalyst type” force – is mentioned in the article as “the emergence of local silicon players like MediaTek” which – quite naturally – will be discussed in the next section separately: see MediaTek as the catalyst of the white-board ecosystem below.]

The attached diagramm (to the first news item above) of mainland China’s home market growth is clearly showing that there is essentially no forecasted growth for 2011 so there is no other way for the white-box vendors as enter the international market even more aggressively than before. Digitimes even reported that White-box handset makers gearing up smartphone and 3G handset production, MediaTek to benefit [Dec 3, 2010] also indicating the Chineses government increased support for that (emphasis is mine):

White-box handset makers in China are gearing up their production of in-house designed smartphones and 3G handsets, a trend which will benefit Taiwan-based IC design house MediaTek. China’s white-box handset industry in 2010, has begun to place more emphasis on upgrading specifications and added value to enter the high-end segment, and has allocated more resources on development of intellectual property.

Even the China government has voiced its support for the white-box industry. Yang Xueshan, Deputy Minister of the Ministry of Industry and Information Technology (MIIT), recently said that the government will support the white-box business model as long as there is no infringement of IP.

Yang pointed out that from imitation to innovation is a process white-box handset makers have to go through, citing China-based telecom equipment maker Huawei Technologies as a success story. Huawei’s foray into the handset sector began with low-cost products and the company now has research and development capability, he said.

Supporting the white-box business model, given that no patents are infringed, is a good way to protect intellectual property rights as well as provide the most cost-effective products to consumers, Yang added.

Two months later came out the news that Shipments of sub-US$150 Android handsets to reach 20-25 million units in 2011, says Digitimes Research [Jan 28] (emphasis is mine):

Shipments of entry-level Android handsets with a price tag of below US$150 are likely to reach 20-25 million units in 2011 which could affect Nokia’s performance, according to an estimate by Digitimes Research.

Shipments of sub-US$150 Android phones totaled only 2.5-3 million units in 2010, mostly shipped by China-based Huawei Technologies and ZTE. However, the number of sub-US$150 Android phones is likely to increase by 8-10 fold in 2011 resulting a substantial increase in shipments, Digitimes Research said.

Google’s efforts to push Android phones to emerging markets, strong demand from markets in China, India, South America, Southeast Asia, Africa, and Russia, and a shift of telecom carriers in mature markets from feature phones to smartphones all work to stir up shipments of Android phones.

In addition to Huawei, ZTE, white-box handset makers in China and Taiwan-based ODMs, Samsung Electronics, LG Electronics and Motorola are also likely to step up their presence in the entry-level Android segment, Digitimes Research said.

The increasing popularity of low-cost Android phones is expected to have a major impact on Symbian-based smartphones as Nokia is projecting merely a 10% sales growth rate for its smartphones, far below the 50% growth projected for the segment, Digitimes Research noted.

Two weeks later even more threating news were coming stating that China-based white-box vendors to offer below US$100 Android smartphones for emerging markets [Feb 9] (emphasis is mine):

China-based vendors are poised to offer Android smartphones priced at below US$100 for sale in China and other emerging markets including India, Indonesia and Brazil [so called BRIC] in 2011, according to Taiwan-based handset and component makers.

Such low-price Android smartphones are equipped with basic functions including dual-mode or dual-SIM, Bluetooth, Wi-Fi, FM radio, trackball and G-sensors, with other functions such as mobile TV and GPS available for additional choice, the sources noted.

The low price is based on non-customized turnkey solutions featuring the integration of chips, operating systems, software and user interfaces, the sources pointed out. Taiwan-based IC design houses MediaTek and Infomax Communication have offered such solutions at less than US$100 and US$80-90 respectively, while China-based Leadcore Technology and Fuzhou Rockchip Electronics have done so at US$80-105 and US$90-105 respectively, the sources indicated. Qualcomm, ST-Ericsson and Broadcom have also offered such solutions, but mostly for 3G and priced higher at US$100-120, the sources noted.

In an additional news it was indicated that FOB price of turnkey solutions for Android smartphones now under US$120, says Digitimes Research [Feb 9] (emphasis is mine):

FOB prices of turnkey chip solutions for Android-based smartphones are now under US$120, according to Digitimes Research.

Taiwan-based MediaTek and Infomax Communications are offering Android chip solutions at below US$100 and around US$80-90, respectively. China’s Leadcore Technology and Rockchip Electronics are quoting at US$80-90 and US$80-105, respectively. Even international players such as Qualcomm, ST-Ericsson and Broadcom have joined in the battle with solutions priced between US$100-120.

International chip providers are outsourcing their solution designs to handset designers and manufacturers. Qualcomm is working with Gsmart [Taiwan] and Thundersoft, [HQ in Beijing, branch in Tokyo, support centre in Seoul and Taipei], Marvell has partnered with Zoom Technologies [HQ in Beijing, mainly EMS for OEMs + ODM + own brand sales via Hong Kong, ownership via Delaware-BVI chain of holdings], Broadcom with Yuhua [rather Yuhua TelTech, an ODM in Shanghai, with ~$40M international ODM sales] and ST-Ericsson with Beijing Xuntong Antian (transliterated).

More background information:
Cheap chips off the old block [China Daily, Oct 31, 2008]
Decoding Shan Zhai Ji (Bandit cell phone) – the opposite side of brand chasing [Nov 17, 2008]
The phenomenon of Shan Zhai products and culture [Noc 19, 2008]
‘Shanzhai’: Faking it for money or fun? [China Daily, Dec 9, 2008]
MIIT: GSM Association Issues IMEI Numbers To Chinese Mobile Phones [Dec 25, 2008]
Copycat “Shanzhai” culture takes on life of its own [Xinhua, Dec 30, 2008]
Chinese Mobile Phones Lacking IMEI Numbers Face Death In India [April 7, 2009]
Mountain village handsets storm market [China Economic Net, July 19, 2009]
Experience the shanzhai market: video [Oct 6, 2009]

China’s ‘Bandit’ Cell Phones – The High-Tech Golden Egg with ‘Taiwan Inside’ [Oct 6, 2009]
India Starts To Block Chinese-made “Shanzai” Mobile Phones Without IMEI [Dec 3, 2009]
Chinese Shanzhai Mobile Manufacturers Will Move Production To India [Feb 23, 2010]
Egypt Will Ban Chinese Shanzai Mobile Phones [June 28, 2010]
Shanzhai grew by 43.6% in 2010, production cycle also cut by 25% [Shanzai.com, Feb 3, 2011]

MediaTek as the catalyst of the white-board ecosystem

Update: MediaTek to Launch Ultra Cheap Handset Chip Against Spreadtrum Communications [March 21. 2011.] (emphasis is mine)

MedaiTek Inc. has recently announced plans to introduce an ultra low cost multimedia system-on-chip for mobile handsets in a bid to rival a competing solution Spreadtrum Communications Inc. of mainland China will roll out in April.

According to MediaTek, the upcoming handset solution, codenamed as MT6252, supports serial flash memory and is cost efficient for handset makers as it uses lesser passive devices and smaller printed circuit board than existing solutions. Also, the MediaTek solution supports four-SIM, four-standby mobile phones, convincing the mainland`s home-grown handset makers including Gionee Communications Equipment, Ragentek Communication Technology Co., Ltd. and Leatek Technologies International Co., Ltd. to support it.

MT6252 is also designed to replace MediaTek MT6251, a provisional low cost solution to 2.5G mobile phone. Industry executives pointed out that the SOC-based MT6252 is crucial to whether or not MediaTek can dominate the mainland`s market for 2G chips.

The mainland`s market for low-end handset chips had been controlled by Infineon Technologies AG of Germany with its ULC2/3 solutions until the end of last year, when Intel phased out of the low-end business after acquiring Infineon`s handset chip asset.

The low-priced solution Spreadtrum will launch in April is named SC6610, which incorporates embedded SRAM into it.

Here it is worth to start with a historical detour of Shanzhai.  Quoting from MediaTek rides high in bandit territory [May 16, 2010] article (emphasis is mine):

MediaTek, which originally focused on making chips for DVD players [see: MediaTek Announces the MT1389S-DVD-Player single chip. To enable the best digital media experience [March 26, 2007]], switched to designing mobile-phone chips after recognizing that cheap locally made phones from China’s Ningbo Bird and DBTel of Taiwan could not match the functionality of Nokia and Motorola, which 10 years ago dominated the China mobile handset market.

MediaTek’s response was to create “complete solutions” for mobile phones – the so-called “system-on-a chip”. It integrated the handset’s motherboard with other major components and the software for practically any desired feature onto a single circuit board. Most important, the products were extremely cheap. According to industry insiders, a set of such systems sells for as little as 100 yuan (US$12.50) to 200 yuan.

Practically all that is then required to produce a mobile handset is the addition of a battery and a casing to hold MediaTek’s “semi-product”. The combination of innovative Taiwan technology and mainland China’s low-cost mass manufacturing makes such handsets available at less than a third of the price of branded rivals.

“MediaTek revolutionized how cell-phone handsets are made in China,” said Zhang, formerly a general manager of Motorola’s Mobile Software Solutions Group for Asia-Pacific and now president of Yostar.net. “It makes it possible for toy factories to manufacture mobile phones.”

Many of these phones are imitations of major branded products, with similar (or the exact) functionality and style. But a lot of innovative handsets are also produced – mobile phones with seven speakers, for students to reproduce dance floor or boom-box music environments; handsets with four bright LED lights to serve as a cell phone and a powerful flashlight. For senior citizens, devices have big displays, big keys and a loud sound. For people who work outside in the fields, there are handsets with longer battery life. There are handsets with two sim-card slots for people traveling between different cities – allowing use of, for example, both a Hong Kong number and a Beijing number. Some are even equipped with a reader to check whether cash is counterfeit. Others look like a pack of cigarettes, or have a built-in laser pointer, a global positioning system, or a TV signal receiver.

The adaptability of small manufacturers also means that whatever is the latest trend – a new iPhone design, for example – can be almost immediately matched by a bandit version.

Then what happened is that after purchasing Analog Devices’ cellular radio and baseband shipset operations [Sept 10, 2007], completed next January [Jan 11, 2008], and the company report that its approach to providing a total solution for customers resulted in a total shipment of mobile solution chipsets over 150 million in volume in 2007 [June 8, 2008] followed an even more effective step of introducing its first multimedia-rich GSM/GPRS single-chip [Feb 12, 2009] (emphasis is mine):

MediaTek, Inc., the leading fabless semiconductors company for wireless communications and digital multimedia solutions, today announced that its first GSM/GPRS single chip, the MT6253, has been adopted in mobile phones on the GSM/GPRS network. Integrating all essential electronic components, including DBB, ABB, power management unit and RF transceiver onto a single chip, the MT6253 can further reduce the materials costs of a complete mobile phone. Equipped with strong peripheral supports including camera, high speed USB and Class D audio AMP, MediaTek’s MT6253 is the most highly integrated chip in the market for mobile communication.

“Bringing together advanced multimedia technology, efficient manufacturing, system-level design tools and real-time support, MediaTek’s MT6253 sets a new standard for cellular SoCs ”, said JiChang Hsu, Executive Vice President of MediaTek. “To better address the needs of emerging market, where handset manufacturers care cost-performance ratio more than ultra low cost, MT6253 provides perceptual peripheral support to bring down costs and reduce space requirements greatly.”

In addition to MT6253, MediaTek also brings its multimedia expertise to its smart phone solutions. Supporting LCD resolution up to WVGA, MediaTek’s first smart phone solution – MT6516 is the first solution for smart phones in the market which is able to process MPEG-2 transport stream decoding without any co-processor. MediaTek’s MT6516 features multiple video codec to enable MDTV applications, including DVB-T, CMMB and DVB-H, all of which can be easily implemented without multimedia co-processor.

This was followed by the advanced single-chip all-in-one GPS solution, MT3329 [May 25, 2009], by three second generation IEEE 802.16e WiMAX chips, the MT7110 Series [June 1, 2009] which was found by an external benchmark to outperform its peer products [July 28, 2010] and thus laying a foundation towards IMT-Advanced (4G) via the WirelessMAN-Advanced route (see my earlier post: IMT-Advanced (4G) for the next-generations of interactive mobile services, China is triumphant [Oct 24, 2010]), as well as both types of LTE Advanced. It is said to be possible to base all these advanced protocols on the same chipset construction. Thus MediaTek has already all the foundations to continue its leadership as the Mobile Internet is going to be faster and faster every year, as well as well more and more accessible to everybody in this decade.

Then came the news that MediaTek to Obtain WCDMA License from Qualcomm [Oct 15, 2009] (emphasis is mine):

Taiwanese wireless semiconductor manufacturer MediaTek has announced that it will soon receive a license to produce Qualcomm’s WCDMA chipset.

Once the license agreement is finalized, MediaTek’s first WCDMA 3G chipset, the MT6268, is aiming for release late this year, with hopes of becoming a major earner for the Taiwanese manufacturer next year. Qualcomm will receive a 6% licensing fee on every 3G chipset produced by MediaTek [the arrangement obtained later was different, see below].

MediaTek says that its license agreement discussion with Qualcomm has entered its final stages. The broad framework and provisions are already agreed upon by both sides, with only minor technical issues still under discussion.

Because Qualcomm still holds the patent on WCDMA technology, any manufacturer that has a product involving WCDMA technology or wishes to produce WCDMA chips must first obtain a license from Qualcomm.

Although MediaTek has yet to officially obtain a license from Qualcomm, its MT6268 3G chipset has already entered small-scale test production by Taiwan Semiconductor Manufacturing Company (TSMC). The test production, which mainly utilizes a 65nm manufacturing process, has so far met with success, and full production can begin immediately upon receipt of the license agreement.

The agreement has been reached as per MediaTek and Qualcomm Enter Into Patent Arrangement [Nov 20, 2009]:

MediaTek’s customers do not receive rights to any of Qualcomm’s patents and such customers will need to obtain a separate license from Qualcomm in order to receive rights to any of Qualcomm’s patents. Qualcomm’s customers do not receive rights to any of MediaTek’s patents and such customers will need to obtain a separate license from MediaTek in order to receive rights to any of MediaTek\’s patents. The remainder of the terms of the arrangement are confidential.

This allowed MediaTek reaching out to 3G market with Multimedia Phone Solution MT6268 [Dec 10, 2010] as far as in India:

Grant Kuo, MD, MediaTek [India] said, “With MT6268 multimedia solution, MediaTek has started reaching out to 3G market. The 3G strategic layout of MediaTek will be significant for the industrialization and the future moment of the 3G market in India.”

With high level of integration, MT6268 which supports 3G is targeted for the feature-rich multimedia market. MT6268 offers key features such as support for Video Calling, 5Mpixel camera, High GPRS speed, integrated BT, Dual SIM and full html browser. In addition to it, MT6268 is intended to address the need of embedded devices for low power with its patented power saving technology. These chipset solutions are intended to revolutionalize the market and take the industry to the next level of mass market adoption.

On this year’s Mobile World Congress – quite naturally – MediaTek announced the MT6573 platform for mainstream 3G smartphones [Feb 11] (emphasis is mine):

The MT6573 platform incorporates a highly-integrated, core chipset, a full range of connectivity solutions and supports the latest versions of the popular AndroidTM operating system. The MT6573 platform supports a quad-band [i.e.: all 4 GSM bands, the 850 and 1900 MHz bands – used in Americas – and 900/1800, used elsewhere], 3G/HSPA modem with mobile broadband rates of 7.2Mbps in the downlink and 5.76 Mbps uplink, as well as quad-band EDGE. The integrated applications processing system combines a 650 MHz dedicated ARM®11subsystem for the Android operating system; support for advanced 3D graphics; multi-format video capture and playback up to FWVGA 30fps; high-resolution camera support to 8MP and a high-end FWVGA, touch-screen display. The platform chipset is completed with a full range of connectivity solutions for Bluetooth, WiFi, GPS, FM radio and Mobile TV from MediaTek.

The core chipset of the MT6573 integrates the modem, applications, multimedia subsystem and all necessary power management functions into a single SOC. Combined with a single-chip, multi-mode, multi-band transceiver, it enables extremely small footprints that allow for smaller, more innovative industrial designs and form-factors. Additionally, the integrated 3D graphics capability brings gaming and user interface capabilities that were previously available only to high-end smartphones. Finally, the platform provides advanced camera and multimedia features that include smile and face detection, panorama and burst shot, as well as high-resolution video capture and playback. The platform can be delivered as a full system solution consisting of hardware reference design and fully-tested, compliant software suite that can improve design efficiency and speed time to market for customers in the rapidly changing smartphone market.

… The MT6573 platform is currently sampling to lead customers and will be in mass-production by mid 2011.

Back to the MediaTek rides high in bandit territory [May 16, 2010] article (emphasis is mine):

Big-name Chinese phone-makers such as TCL, Lenovo and Konka are now using MediaTek chips for their products, followed more recently by foreign brands like Motorola and Sharp for their low-end products.

The local Chinese phone-makers made huge losses in 2005-06 due to the rise of shanzhai ji,” said Knock of JPMorgan, to the extent that the top 20 local Chinese brands have used MediaTek chips for their phones. “The mobile phone companies have outsourced their R&D [research and development] to MediaTek and now focus on marketing and manufacturing only.”

In 2008-09, US giant Motorola restructured its global operation, significantly cutting back its R&D department. “That is when Motorola started to use MediaTek chips,” said Knock, “In this way, Motorola only needs to keep a research team for cutting-edge technology, leaving MediaTek to work on the more mature or mainstream technology research.”

MediaTek has now captured about 30-40% of the branded handset market in China, estimates Knock. Moreover, demand for affordable phones in places such as India and Latin America has made it one of the top five global suppliers of all handset chips. Last year, only about half of the 360 million phone mobile chips made by MediaTek were shipped to China, with the remainder going to the rest of the world.

Now MediaTek Aims to become the Best Mobile Chipset Partner of Indian Mobile Manufacturers [Jan 27] according to MediaTek India (emphasis is mine):

We do believe that our latest single chipset solution- MT6253, and a customized Android platform for the India market that features many extremely popular applications will help sustain our leadership in the Indian market and the introduction of some of our new 3G solutions will help penetrate new segments”, says Mr. Grant Kuo, MD MediaTek India.

According to a recent Gartner survey, major handset manufacturers view India as a very attractive investment because it is projected to have the most rapid growth of mobile users worldwide: 660 million mobile users in India by end of 2010. This number is expected to cross the one billion mark by 2014 according to global consultancy firm PwC. Rural India is expected to drive this growth in mobile adoption including 3G handsets. PwC also predicts the 3G subscriber base to grow to around 107 million by 2015 out of which 24% will be rural subscribers.

At the forefront of this growth in rural India will be low cost mobile handsets. According to the Voice&Data100 Indian Telecom Survey, low cost Indian brands like Micromax, Spice and Karbonn strengthened their presence in the market in 2009-10, at the cost of well established MNC’s.

“India is a high potential market for our company. The consumers in semi urban and rural areas, who have been the traditional users of low cost handsets, now demand high end features at affordable rates. MediaTek has a proven track record worldwide and aims to leverage this to become the preferred chipset provider to indigenous Indian handset makers, thereby bringing high end applications within the reach of the Indian masses. We are planning to step up our marketing initiatives in India to create awareness about our products and enhance our brand value in the Indian market”, adds Mr. Arun Gupta, Business Development Director MediaTek India.

MediaTek’s technology and product innovation has also received a lot of recognition and awards from media and institutions around the world. In 2010, MediaTek is ranked top 10 among Asia’s 200 most-admired companies by “The Wall Street Journal” and ranked No. 12 among Global Top 100 High-Tech Companies by “Bloomberg Business Week. In addition, its highly integrated mobile single chip MT6253 has been honored with the EDN innovation award. In 2010 MediaTek also had five publications in the distinguished International Solid State Circuits Conference – highest record in the Taiwan semiconductor industry. MediaTek is also honored with the “Excellence in Corporate Social Responsibility Top 50” award every year since 2007 by Taiwan’s most prestigious Common Wealth Magazine.

And for this local manufacturers penetration strategy MediaTek has all the prerequisites via the earlier Shanzhai’s route.

Meanwhile International handset vendors align with Taiwan and China makers to take on local competition in emerging markets [June 24, 2010] (emphasis is mine) and by doing this they are essentially following Motorola’s route:

International handset brand vendors will likely step up cooperation with manufacturers in Taiwan and China to compete more effectively with local vendors in emerging markets that are sourcing white-box models and selling under their own brands.

India’s Micromax, Indonesia’s Nexian and i-Mobile of Thailand are some of the domestic brand vendors that have taken down global giants at home with current market share rankings at third, second and fourth, respectively, in their countries.

Their business models are sourcing handsets from white-box manufacturers to target the entry-level segment as well as niche opportunities that were neglected by larger international vendors, according to sources from Taiwan-based handset makers.

The low-end strategy is certainly effective since consumers in emerging regions are typically more price sensitive. For niche markets, Micromax introduced phones with long standby time of 30 days and models with dual-card, dual-band and dual-standby functionalities. Nexian heavily promoted devices with dual-card and dual-standby features and QWERTY keypads. i-Mobile launched dual-card and dual-standby phones and models with analog-TV features.

Besides entry-level products, local vendors have rolled out smartphones and begun to expand to markets overseas, the sources said.

Most of the local vendors are also well-known distributors with strong ties within domestic sales channels and are responsible for their own after-sale services, the sources pointed out. This solves two major issues white-box critics often bring up – low brand recognition and poor service. Combined with protectionism policies and consumer preferences for home-made brands, the local players still have plenty of room for growth.

Recently, several brand vendors ranked in the top-five globally have contacted manufacturers in Taiwan and China-based handset designers to outsource new models that are comparable in both features and price to those sold by local vendors, said the sources.

Taiwan handset manufacturers have previously produced for local players in emerging markets but gradually gave up orders to white-box makers, since those clients never provided long-term order commitment and often shopped around between seven to eight contract manufactures, the sources noted.

And just now came the news that MediaTek reportedly to secure new orders from Nokia and Samsung for 2011 [Feb 17] (emphasis is mine):

IC design house MediaTek will likely attract new orders for entry-level and mid-range handsets from Nokia and Samsung Electronics in 2011, in addition to its existing ones from Motorola and LG Electronics (LGE), according to market sources.

New contracts, as well as continued-strong demand from China’s white-box handset market, may assist MediaTek to fulfill its handset-chip shipment goal of 550 million units for 2011, the sources said.

Having grown its market share in China’s white-box handset market with 2.5G solutions, MediaTek finds it hard to gain a further larger presence in the white-box handset market. As a newcomer to the 3G and smartphone chip segment, MediaTek is facing strong competition from international chipset companies. Meanwhile, price cuts initiated by local China-based rivals have squeezed its 2.5G market share.

MediaTek now stands a chance of breaking into the supply chains of more brand-name handset companies in 2011, the sources pointed out. MediaTek is likely to grab orders mainly for entry-level and mid-range devices from four out of the global top-five handset vendors, the sources indicated. The orders could boost MediaTek’s handset-IC shipments to 600 million units in 2011, the sources said.

In addition, the sources pointed out that MediaTek is preparing the launch of its next-generation 2.5G single-chip solution, which will be built using 40nm process technology with more features integrated in the compact all-in-one package.

MediaTek's MT6253 - MT6516 - MT6268

Note that in 4Q10 at least one mainland China rival started to use heavily MediaTek’s major foundry – albeit at 65nm not the 40nm MediaTek is aiming for – as reported by TSMC to get 60% more orders from Spreadtrum in 4Q10 [Oct 15, 2010]. In fact MediaTek had two make two pricecuts in the second half of 2010 and smartphone chipsets MT6516 and MT6268 now down to under US$10 [Dec 3, 2010] (that price is without the WCDMA license which should be additionally paid to Qualcomm, see above). There is more information about that came in MediaTek to take on MStar with 40nm single-chip 2.5G solutions [Feb 17]:

MediaTek will take on rival MStar Semiconductor in the 2.5G handset chipset segment with single-chip solutions built using 40nm process technology soon, according to industry sources.

MediaTek aims to take back the service privilege in the 2.5G chipset sector with advanced manufacturing processes after MStar managed to boost its share in the segment in the China market from the original 5-10% to almost 30% in the second half of 2010, the sources noted.

MediaTek’s next-generation 40nm parts will integrate baseband, RF, Bluetooth, power amplifier and power management ICs into an all-in-one package, said the sources. In comparison, MStar’s 40nm chips, which are still in development, will come with only baseband and RF chips.

Having cut its chip prices drastically in the past few months to stop MStar from further denting its share in the 2.5G segment, MediaTek’s strategy to launch parts made with advanced technology will also force MStar to channel its newly earned profits into a technology race, the sources asserted.

Note: MStar is a Taiwan-based competitor of MediaTek as per MediaTek to see challenges in China market [Sept 9, 2009]

In this way the white-board ecosystem will expand not only outside mainlad China but also to the international brand vendors, and MediaTek will likely remain the major catalyst of that peculiar ecosystem for the years to come.

ZTE et al.

@ MWC: ZTE Goes For The High End With The Skate [Feb 14, 2011]:

ZTE, the Chinese handset and wireless equipment maker, epitomises a certain kind of new entrant in the mobile industry: very determined, very cheap, and very much on the rise. At an overheated stand crowded with competitors, partners and non-partisan observers checking out ZTE’s newest devices — led by the Skate Android-based smartphone—I retreated to a quiet, air-conditioned room with Zhang Xiaohong, ZTE’s VP for handsets, to talk cannibalization, me-too Android competitors and more.

North America is our fastest-growing market. ZTE’s home market of China, where it ships devices with the three major operators China Unicom, China Mobile and China Telecom, is the company’s single largest market. But North America, shays Zhang is growing the fastest. Shipments in that region went up four-fold in the last year, with ZTE signing distribution deals with the U.S.‘s four major operators (selling both handsets and data cards for mobile broadband). Europe also grew—by a rate of 100 percent, with notable increases also in Japan, Australia, Russia and Latin America.

ZTE has already made a crucial shift in the last year to exporting more devices than it sells domestically. Zhang says the current rate is 35:65. If you take IDC’s recent number that indicates that ZTE shipped 60 million units in 2010, that works out to 21 million in China and another 39 million everywhere else.

Is it all about the cheapest price? No, she says. ZTE has disrupted the market with devices like the Blade (which sold for under $200), but it looks like it is now trying to leverage that market share to expand into the more premium segment against higher-end competitors like HTC and Apple:

“We will continue to focus on low-cost solutions for developing and developed markets, especially developing markets” she says. “But it’s also about new devices like the Skate.” No prices have yet been revealed for the Skate, which features a 4.3-inch screen and runs using Android 2.3—but the device, when I tried it out, seemed a little slow and jerky in its graphics. The specs say it runs on a 800MHz processor, compared to some of the newer devices from other Android OEMs built on 1GHz chips. The device is set to debut in May 2011.

Who is your biggest competitor? No straight answer on this one. Zhang says ZTE splits their competitors into two segments: “established” companies like Nokia (NYSE: NOK) and Samsung and “new ones” like HTC and Apple (NSDQ: AAPL). “ZTE can produce devices that compete with both,” she says.

What makes you different from other Android device makers? Ultimately a lot of these devices start looking more or less the same as each other, I say.

We are good at customisation, according to different cultures and customs. We can differentiate.” ZTE says that it can and has developed devices for specific operators, making them unique in the marketplace. It also looks like ZTE is looking to take customisation to the software level, too: the company launched a new app store this week, to deliver services that complement those in the Android Market.

One other key area, says Zhang, is that, unlike a lot of the other Android OEMs, ZTE also sells network equipment: this means that ZTE can sell “total solutions”—at very competitive prices. She says that ZTE has such agreements with 28 of the top 30 operators worldwide.

What do you think of the Nokia/Microsoft (NSDQ: MSFT) deal, and do you have any plans for MeeGo? For now, Nokia’s choice to work on Windows Mobile phones “means the future does not look good for MeeGo,” she says. “Last week’s news may have been the last straw or it, and we have no plans to develop on it for now. But whether going with Microsoft will give Nokia advantages over the long term remains to be seen.”

http://www.shanzai.com/ remark on that article is that ZTE is still singing tried and true Shanzhai tune: “We are good at customisation” [Feb 11, 2011]

ZTE is a Shanzhai success story. Starting out small and then big in China, ZTE is now doing well in North America and is expected to increase market share there even more this year. When their VP was asked this week, why they have been so successful, their Shanzhai their Shanzhai roots showed through.

According to IDC, ZTE shipped 60 million products in 2010. Their exports were mainly to North America and also to Japan, Australia and Latin America.

Now what we have seen, time and time again, is that the successful Shanzhai make handsets that fulfill a local (rather than generalized global) market need. Sometimes that can lead to quirky products, like exchangeable solar batteries, cigarette lighters, or more practical factors like dual SIM support, etc. It turns out that even in “mainstream” North America, catering to the local audience is the key.

Zhang Xiaohong, ZTE’s VP for handsets at the Mobile World Congress said that ZTE’s success is because “We are good at customisation, according to different cultures and customs. We can differentiate”.

It’s ironic that the Shanzhai are often seen as strangers to differentiation because of the high profile of clone models, when actually it’s the Shanzhai’s adaptability that keeps their business strong.

But ZTE and Huawei are not alone. Here is another example, G’Five so far known only in India but expanding rapidly both in India and into the other parts of the world:

India Mobile Handset shipments grow 6.7%, to 101 million units in 12 Months ending June 2009 [IDC India, Oct 9, 2009]

Market intelligence firm, IDC’s India Quarterly Mobile Handsets Tracker, 2Q 2009, September 2009 release issued today states that in terms of units shipped Nokia had the largest share of 56.8%, followed by Samsung with a 7.7% share while LG stood third with a 5.4% share in the 12-month period ended June 2009.

New Vendors Make a Mark
A number of new vendors entered the India mobile handsets market in the last 12 to 18 months to carve a niche for themselves by offering feature-rich (dual SIM card, full QWERTY keyboard) and application-rich (IM enabled) mobile handsets at attractive price points. They also introduced entry-level models for the ‘price sensitive’ Indian consumer.

Figure 1: India Quarterly Mobile Handsets Market: New Vendor Shipments Growth

Source: IDC’s India Quarterly Mobile Handsets Tracker, 2Q 2009, September 2009 releasee

This development shows that even in a crowded market there is room for vendors to enter with the right product-feature-price mix.

IDC’s India quarterly mobile handsets tracker 2Q 2010 [Sept 28, 2010] (some emphasis is mine):

According to Mr. Anirban Banerjee, Associate Vice President-Research, IDC India, “In the recent quarters several new players successfully launched their own devices at significantly lower Average Selling Values (ASVs) in the price sensitive India market. Such handsets found ready acceptance amongst first time buyers, especially from small towns and villages.”

This influx of new brands led to a spurt in overall market and saw ‘emerging vendors’ corner as much as 33.2% of total India mobile handset shipments in 2Q 2010. The Finnish handset maker Nokia retained its No.1 spot with a market share of 36.3% in terms of units shipped. The Korean electronic giant Samsung retained the No. 2 position, while Chinese brand G’Five emerged as the No. 3 player.

According to IDC’s India Quarterly Mobile Handsets Tracker, 2Q 2010, September 2010 release, the number of emerging vendors in India’s burgeoning mobile handsets market grew to 35 in 2Q 2010 and they together garnered 33.2% of total shipments for the first time during the April-June 2010 quarter. This represented a manifold increase from five (5) new vendors representing a 0.9% combined share of units shipped in the January-March 2008 quarter.

During the last 6 months (January-June 2010) the top five mobile handset vendors in India were Nokia, Samsung, G’Five, Micromax and Spice.

Figure 1: India Mobile Handsets Market: New Vendor Contribution to Shipments, Q1 2008 to Q2 2010

Source: IDC India, 2010

July-September 2010 mobile phone shipments (sales) log 3.6% quarter-on-quarter growth to
cross 40 million units: ‘Emerging Vendors’ capture 41.2% combined share [IDC India, Dec 29, 2010] (emphasis is mine):

… the Finnish handset maker Nokia had the largest share of 31.5%* in terms of units shipped during 3Q 2010.
The Chinese brand G’Five emerged as No. 2 player in terms of unit shipments market share and Korean handset manufacturer Samsung stood at No. 3 in 3Q 2010.

The India mobile handsets market continued to grow in 3Q 2010 as well to record a quarter-on-quarter (3Q 2010 over 2Q 2010) growth of 3.6%* to touch 40.08 million units in the quarter, according to IDC India. The year is expected to end with total mobile handset sales of 155.9 million units.

The number of emerging vendors in India’s burgeoning mobile handsets market grew to 68 and they together garnered 41.2%* of total shipments (sales) for the first time during the July-Sep 2010 quarter.

Smartphone prices continued to drop through the year and as competition increased, devices were made available by vendors at successively lower price points. So, while 80%* of total India smartphone sales were below the ASV (Average Sales Value) of Rs. 18,000 in 2Q 2010, this proportion increased to 90%* in 3Q 2010.

Top G’Five mobile phones in India [Jan 13, 2011] (emphasis is mine)

Which are the top two cell phone brands today in India in terms of shipment volumes? Nokia and Samsung, many of us would like to think, right? Or maybe Sony…or LG…or Micromax which has been advertising quite a bit.

Not quite, folks. A recent report from leading market intelligence firm IDC India reaffirms the Finnish telecom giant’s status as the leading cell-phone player in the country, with Nokia accounting for 31.5% of the domestic cell-phone market during the July-September period last year. But, surprisingly, a little known Chinese brand called G’Five has made it to the second spot by capturing a 10.6% market share–with Samsung coming in third at 8.2%!

Sounds shocking, right? How can a Chinese player, without any big-ticket advertising campaign or any celebrity as its brand ambassador, manage to create such a big impact in the cut-throat Indian cell phone industry–without any fanfare? Well, the answer lies in G’Five’s strategy of rolling out a bevy of feature-rich phones at competitive prices (in the Rs.1,400-Rs.7,000 range), targeted exclusively at urban first-time buyers and those in semi-urban and rural areas looking to upgrade from basic phones.

So if you are looking to buy a G’Five mobile phone, here is a list of eight affordable (costing not more than Rs.5,000) models from around 26 G’Five phones currently available in India (in the order of ascending prices)– with each of them having their own USPs.

G’Five D10 Price: Rs.1,820 [US$40.4] … G’Five X5 Price: Rs.1,899 [US$42.1] … G’Five N92 Price: Rs.2,249 [US$49.9] … G’Five i310 Price: Rs. 2,400 [US$53.2] … G’Five M33 Price: Rs.2,499 [US$55.4] … G’Five L600 Price: Rs 2,700 [US$59.9] … G’Five X33+ Price: Rs.3,786 [US$83.9] … G’Five V60 Price: Rs. 4,490 [US$99.6] …

And these phones are not crap as you can even see from their pictures (for features info it is worth to go into the article).

G'Five D10 - i310 - V60

Note that to target the upper part of this range Social networking is Nokia’s latest mobile strategy [Feb 17, 2010] (which the above phones do not have):

The company’s latest launch on Nokia X2-01 mobile, at Rs 4,459 [US$99.2] is one such product. “QWERTY is one of the fastest growing mobile phone category in the world due to the rise in messaging and social networking. The Nokia X2-01 makes it easy to set up chat and email direct from the mobile phone,” said Nokia India General Manager-South T S Sridhar. “This means superfast access to your favourite Ovi Mail, Ovi Chat or other popular accounts.”

As young users want to stay connected with friends on the move, instant messaging is rapidly on the rise. With messaging devices like Nokia X2- 01, we are empowering the youth, he said. The handset also provides live updates from social networks such as Facebook, Orkut and Twitter directly from home screen. The Nokia X2-01 is Series 40 2G phone with VGA camera and FM radio. It has one click access the music player and has 3.5mm AV connector ideal for headphones or speakers. It also has Bluetooth and can support up to an 8GB micro SD memory card and has a standby battery time of up to 20 days, he claimed. For affordable access to internet, Nokia has also tied up with country’s largest mobile service provider Airtel which allows 100 mb of free data download per month for 12 months to its subscribers on this phone. Under this scheme one can access Face Book, and OVI Chat and Ovi Mail free of charges.

Gfive Mobile Phones (by Devika Rajpali)

The company of GFive is from China. The investors of the company are a syndicate named Zerone group that of the most esteemed OEM factories that boost of producing around 100 million mobile phones. The GFive mobile phones are the hottest running brand in indisputable imei china mobiles. The company has now established itself completely in the field of tech support, repairing and software installation. You will find the GFive mobile phone to be very stylish with large number of mobile phones to offer to its consumers. The company claims to have experience, confidence and data along with the in-depth insight of their Chinese mobile phones.

The KingTech Telecom (Shenzhen) Co Ltd. is behind the brand with KingTech Telecom (HK) Limited behind the export activities. As far as India is concerned the arrangement will be developed into a stronger local representation as Victor Infotech ties up with King Tech Telecom [Nov 11, 2010] (emphasis is mine):

Victor Infotech Ltd has tied up with King Tech Telecom Ltd (a Hong Kong-based telecom company) to form a joint venture company — Asian Telecom Ltd. The majority stake of 51% in the new company will be held by King Tech Telecom Ltd and the balance 49% equity will be held by Victor Infotech Ltd.

Asian Telecom Ltd., the new joint venture company, will come into being with immediate effect to launch the G’Five brand of mobile phones in the Indian market. The company plans to take the G’Five brand of mobiles to new heights in India and achieve 20% of the market share in the next two years.

As part of the collaboration, Kingtech Telecom shall manufacture the mobile phones and Victor Infotech will be responsible for distribution and marketing of the phone in India. Initially Kingtech Telecom will manufacture the Indian specific mobile phones in Hong Kong [rather in Shenzen] and gradually the same shall be manufactured in India.

The Indian mobile phone market is growing very fast. The company expects the sales of the mobile phones to grow 5 times in the next two years and plans to take advantage of this growth to gain the maximum market share. To achieve this, the company shall introduce many variations in its mobile phones, which shall be specific to the needs of the Indian consumer.

Meanwhile for other parts of the world a new sales and marketing operation has been set up: GLX mobile – G’FIVE Mobile’s Brother Company [Dec 14, 2010] (emphasis is mine)

A new member of Zerone Group called GLX mobile has been founded. With its full name as GLX International Limited, GLX mobile is dedicated in global distribution of GLX mobile phone.

Since G’FIVE is a member of Zerone Group, G’FIVE and GLX are brother companies. The new-founded GLX focuses on international markets, especially emerging markets. GLX mobile covers the whole range of mobile phone user market, from low-end to high-end with stylish and unique handsets.

GLX is aiming to create golden life for worldwide consumers with all ranges of mobile phones.

And the GLX company’s website indicates that it has taken over (almost all) the rest of the existing G’Five business network:

GLX Mobile initial business network

Kinoma is now the marvellous software owned by Marvell

A leading chip, even SoC company buying a leading software company and moving immediately with that into the heart of the Android software and solution market? It is not so strange if one is considering Marvell’s strategy as expressed in my posts: Marvell ARMADA with sun readable and unbreakable Pixel Qi screen, and target [mass] manufacturing cost of $75 [Nov 4, 2010] and Marvell to capitalize on BRIC market with the Moby tablet [Feb 3]

Follow-up:
– First real chances for Marvell on the tablet and smartphone fronts
 [Aug 21 – Sept 25, 2011]
High expectations on Marvell’s opportunities with China Mobile [May 28, 2011]

But, Kinoma as a marvellous software? Here is a video recorded yesterday at Mobile World Congress 2011 by IntoMobile in which Kinoma is demonstrated on the last year’s leading Android 2.1 based (now with 2.2 already) Nexus One by Google & HTC device, and this is the best proof of such judgement by itself (after that you can also follow the Android community responses on the Android Central’s Kinoma Play for Android beta):

IntoMobile:
“We take Marvell’s Kinoma platform for a spin with Kinoma Play. The third-party app runs on the Kinoma runtime, and beats out native apps in terms of performance and battery life. The demo speaks for itself.”
Truly amazing closing remark from Marvell’s Peter Hoddie in the video:
“Not just a bunch of application silos but you are really getting a suite of applications that works together and cooperates to give you the kind of user experience you expect to have.”
My own comment: a much needed enhancement for the whole Android world.

Some quotes from IntoMobile’s Hands-on: Kinoma Play – When third-party apps beat native app performance [Feb 14] article accompanying the above video (emphasis is mine):

What is Kinoma? Well, to put it simply, it’s an application platform that runs a virtual environment on your smartphone … But, unlike other runtime solutions (cough, Java, cough), Kinoma integrates with your phone at almost the hardware level, allowing it to optimize apps for speed and power usage. The end result are apps that run within Kinoma’s runtime that can outperform even the fastest native apps out there.

We got a chance to sit down with Kinoma’s Peter Hoodie at Mobile World Congress 2011 to see what the app runtime, recently acquired by Marvell, can do. We were amazed that Kinoma Play was able to load full-resolution pictures in it’s gallery in near real-time. In less than a second, full-res images were ready to zoom and pan in the Kinoma Play image gallery. We were also impressed by the super fast, but still smooth, scrolling capabilities of Kinoma. And, to top it all off, Kinoma Play apps were capable of cross-communication, allowing apps to share their data on demand with other apps.

The idea here is to get Kinoma out to market and get developers to start making apps using the Kinoma platform.

Then there is another article about Kinema by VentureBeat emphasizing another aspect: Chip maker Marvell debuts a cool mobile user interface with Kinoma Play [Feb 14] (emphasis is mine):

Kinoma Play is a user interface for smartphones, tablet computers, and other mobile devices. It can be built into a single application or become the user’s main interface for operating the multimedia apps on a phone. Kinoma Play is a beautiful, functional, fluid and fast interface. It works great with a touchscreen, letting you do tasks more easily, such as flipping through your music collection or zooming in on a face in a picture. Marvell acquired the small software company Kinoma with just 12 people a month ago.

Kinoma Play can move really fast. It loads a five megapixel photo in under one second, compared to three seconds for other software. You can put your finger on a touchscreen and hold it there. The software will zoom in on the spot in the photo where you are pressing. You can scroll through music or video collections as if you were looking at a carousel. And you can do that in either horizontal or vertical modes. If you run a video and then exit to the main menu, you can still see a video icon with the video imagery moving.

Founded more than eight years ago, the Kinoma team created software that ran on the Palm operating system and Sony’s original Sony Reader eBook device. Some 40 or 50 apps were built to work with Kinoma Play, which is not a full operating system but a subset of one, dubbed a user interface. Kinoma Play has been used on some phones in Japan and the Google Nexus One. It’s also being designed into phones that are coming out in the future.

And here Kinoma Play is shown on the Samsung Galaxy tablet as well in the accompanying video (from 3:58 on):

VentureBeat:
– “We’re a bunch of software guys who worked on things like the original Quicktime” media player, Peter Hoddie VP of the Kinoma Platform at Marvell said. “We have deep roots in software.”
Kinoma About our Team:
Peter Hoddie: For nearly a decade, Peter played a central role in defining, building, and promoting Apple’s trailblazing QuickTime technology.
Brian Friedkin: As a Principal Engineer at Apple, Brian was a member of the small engineering team that brought Quicktime to Windows. He also researched and developed prototype QuickTime software targeted at small devices.
Michael Kellner: At Apple Computer he was involved in open systems platforms, focusing primarily on developing multimedia infrastructure and core system software that was used in multi-platform QuickTime and became the basis for the development authoring platform Carbon in Mac OS X.

Marvell sells billions of chips each year for mobile devices. The combination of the two makes sense because Kinoma Play runs efficiently on both lightweight and heavy-duty hardware. This approach is called a “stack,” where Marvell provides not only the hardware but the software that makes the hardware functional.

Marvell is a hardware company that sees what software means,” [Peter] Hoddie [VP of the Kinoma Platform at Marvell] said. “It is working its way up the stack.”
[Note that the Kinoma like platform software is far the best for Marvell strategies indicated above. They can add Kinoma to whatever Linux distribution (or other OS like vxWorks, u-boot, Windows Mobile 6.1/6.5, Windows CE etc.) they generally and to Fedora 11 and above which particularly with OLPC are using, as well as the Android used by their Moby tablet effort or elsewhere.]

Hoddie said that Kinoma Play can work on phones with slow 150-megahertz processors because it is built into a very low level of an operating system. It has a performance advantage over software that sits on the highest level. It can thus flip through a collection of photos at a much faster speed than other photo viewers could. It works on either capacitive (multitouch) screens or resistive (single-touch) screens.

Kinoma Play can pretty much run on any operating system. Over time, Hoddie expects to make the platform available as open source software so that others can modify it for their own purposes. After all, Marvell wants to make money selling chips, not providing software. Users who learn how to use Kinoma Play on one device will find they can use it on another.

Hoddie said Marvell can take Kinoma Play’s user interface into new markets such as home automation controls and smart meters. In these markets, the hardware is often light years ahead of the software, which is often difficult to use because it has been designed by engineers who aren’t used to creating consumer software. The first phone with the new version of Kinoma is expected to launch at the end of February.

The press release from the new owner says not less than: Marvell Introduces Kinoma – Revolutionary Open Software Platform to Unify Applications [Feb 14] (emphasis is mine):

Marvell (Nasdaq: MRVL), a worldwide leader in integrated silicon solutions, today announced Kinoma®, a software platform that will dramatically transform the way consumers interact with the devices that fuel their digital lives. Kinoma is a new foundation for creating and delivering fast, simple user experiences for an unprecedented range of devices. Through its recent acquisition of Kinoma Inc., a visionary creator of mobile media software, Marvell now offers an experience and solution that is fully integrated from silicon to applications, creating new opportunities for original equipment manufacturers (OEMs) and manufacturers while freeing developers from traditional restraints.

“We are living in an exciting world of proliferating electronic devices.  They are becoming a key part of our lives. More than ever consumers demand great ease-of-use and seamless connectivity across all these devices,” said Weili Dai, Marvell’s Co-Founder. “I am very excited to bring the talented Kinoma team to Marvell – it is our mission to coherently integrate our industry-leading hardware solutions with beautiful software experiences to enable the entire ecosystem to address this emerging demand.  The addition of Kinoma – a simple, intuitive, easy to use software experience optimized for Marvell’s total silicon solutions – provides a unified look and feel across an array of products from handheld devices to smart appliances and smart furnishings. …”

To encourage broad industry adoption, Marvell will offer Kinoma under an open source license. Developers will be able to adapt Kinoma for any device they can imagine. Marvell will also provide two software development kits (SDKs). The first SDK is for application developers to fully integrate their content and services into Kinoma powered devices. The second SDK is for OEMs and manufacturers to port and customize Kinoma for their products.

Marvell will announce further information on developing with Kinoma and licensing in the coming weeks.

And here is the Kinoma value proposition video as released simultaneously by Marvell:

Kinoma Play for Android beta availability has been announced just on the forum of Kinoma, see Sign up for the Android beta NOW [Feb 13]. On their homepage (http://kinoma.com/) you can also signup for the Kinoma app developer SDK avaialbility. This was welcomed enthusiastically by Kinoma users, see Finally! [Feb 14]. Regarding Windows Phone 7 see what Kinoma said on that in the Some space for Kinoma on Windows Phone 7 [Nov 22, 2010] topic (emphasis is mine):

[as the issue has been raised by the creator of the topic]

I’m using Windows Phone 7 for 3 weeks. All I can say is that Zune is absolutely great as an audio player. Still I regret some Kinoma’s features, and all I can say is that, despite Zune, there is some space for Kinoma on WP7.

Indeed, we are missing a lot of features on Zune, and especially access to third party services (RSS, shoucast, Bing Images, Flickr, Last.Fm, Box.net, etc, etc, etc…)

Therefore the Last.fm team shall really reconsider the opportunity to join Windows Phone 7.
A Kinoma App to complete Zune would be fabulous.
WP7 is the future, but it would be even better with Kinoma.

[as the issue has been answered by Kinoma]

Regarding Windows Phone, there’s currently no official way to develop native apps for it, and so no way to consider bringing Kinoma Play to that platform. Once Microsoft provides an SDK for native apps, we’ll definitely take another look.
— Charles Wiltgen

There was a somewhat more detailed answer to that from the same person in the Possible update of Kinoma [July 22, 2010] as well:

Actually, we can’t support Windows Phone 7 because that OS doesn’t have the ability to support native apps. Mozilla has announced that they’re not supporting Windows Phone 7 for that and other reasons as well.
In the meantime, “Windows Phone Classic” support is going to be important to Kinoma for several years. It’s going to continue to be the Windows Phone OS of choice for emerging markets and enterprise, and emerging markets are very important to indie developers like Kinoma because that’s where the volume’s at.
— Charles Wiltgen

Kinoma’s Success Story before the acquisition by Marvell

Kinoma Play in fact has been first introduced two and a half year ago for Windows Mobile smartphones, see Kinoma Introduces Kinoma Play — the world’s first mobile media browser [Aug 25, 2008]:

With Kinoma Play, smartphones now have digital media capabilities that meet, and sometimes even exceed, what users can do on their personal computers. Kinoma Play goes beyond organizing and playing a user’s video, audio and picture files, by bringing in media from around the Internet through the built-in Kinoma Guide, the most comprehensive catalog of the freshest, most diverse mobile media available.

Kinoma Play provides on-demand access from your phone to an unparalleled range of content:

  • Media files – Play the music, video, pictures, panoramas and audio books on your phone
  • Media services – Share your Audible.com, Flickr, iDisk, Live365, and YouTube accounts between your phone and computer
  • Internet – Explore a terabyte of constantly updated, free streaming podcasts, music, radio stations, web-cams and audio books from thousands of providers including ClearChannel, CNN, NPR, Reuters, SHOUTcast, TUNED.mobi, and SomaFM
  • Home PC – Access the gigabytes of music, video and pictures on your home PC from your phone – both on-demand streaming and download

Among the key innovations in Kinoma Play:

  • Streaming podcasts – Instead of tediously downloading and syncing, podcasts stream on-demand, so users are always up to date
  • “Media First” user interface – User interface elements all-but-disappear when viewing photos, listening to music, or watching video to keep the focus on the media
  • High quality YouTube – Kinoma Play provides high quality YouTube video by playing the same feeds delivered to your PC, when bandwidth permits
  • Integrated search – Search your phone, your home PC and the Internet to find what you want
  • Menu Pod – A beautifully animated dynamic menu providing fast access to many powerful features

Pricing & Availability

Kinoma Play is available at the Kinoma web site (www.kinoma.com) for a one-time payment of $29.99. The software is compatible with Windows Mobile 5.0 and higher.

It was immediately recognized by The Wall Street Journal: “Kinoma Play desperately needed by Windows Mobile users” [Aug 27, 2008]

10 days later the company announced that the first post-launch Kinoma Play update now available [Sept 5, 2008] for a wide of devices from Samsung and HTC as well as a few from HP, ASUS and Dell.

No wonder that just 7 months later Kinoma Play chosen as anchor application for Windows Marketplace for Mobile [March 31, 2009]:

The recently announced application marketplace will be included with all Windows phones based on Windows Mobile 6.5 this fall.

“Enthusiasts have embraced Kinoma Play as a ‘must-have’ application that shows how powerful the Windows Mobile media experience can be,” said Peter Hoddie, co-founder and CEO of Kinoma. “Windows Marketplace for Mobile opens up users to a new experience where they can discover and experience dynamic applications, like Kinoma Play, on their Windows mobile device.”

“As a creator of mobile media software, Kinoma offers technology that is a great asset to the Windows Marketplace,” said Steve Hegenderfer, group product manager, Microsoft. “We look forward to making it easy for millions of Windows phone users to download Kinoma Play, one of the latest mobile media browsers available for finding and accessing video, audio and pictures.”

At the same time it came that Kinoma to preview Kinoma Play for Symbian/S60 at CTIA Wireless 2009 [March 30, 2009]:

Kinoma Play for S60, slated for launch on Nokia’s forthcoming Ovi Store, lets consumers see and hear their favorite media faster.

“Kinoma Play for S60 is a natural progression for us,” said Peter Hoddie, co-founder and CEO of Kinoma. “S60 on Symbian OS is the world’s leading mobile platform, and that’s appealing because we want the whole world to be able to enjoy the Kinoma mobile media experience. Through Forum Nokia, we get access to devices like the Nokia 5800 XpressMusic which is a great showcase for Kinoma Play, and we’re excited about the prospect of being able to connect with Nokia customers through Ovi Store.”

As well as the news that Kinoma Play to debut in Japan on SoftBank handsets [March 31, 2009]:

Kinoma Play for SoftBank is available immediately for users of the advanced SoftBank X04HT and SoftBank X05HT handsets by HTC.

Then another 2 months later the news came that Kinoma Play Debuts with World’s First “Snapdragon” Phone on NTT DOCOMO, Japan’s Largest Mobile Operator [May 20, 2009]:

“Sorry iPhone fans,” said Peter Hoddie, CEO of Kinoma. “The unbelievable combination of NTT DOCOMO’s network, Toshiba’s stunning T-01A, and our own Kinoma Play set a new bar for how cool a phone can be.”

A week later the actual functionality of Kinoma Play has been extended with social networking services like Twitter and Facebook integrated into it. See Kinoma Introduces World’s First Mobile “Social Media Browser” [May 28, 2009]:

With today’s release of Kinoma Play, the best way to find, play and share media on a mobile phone is now also the best way to find, play and share media across social networks and media services like Twitter, Facebook, YouTube, Flickr and Picasa.

  • Cross-social sharing – Kinoma Play’s unique approach to supporting social media services and social networks breaks down the barriers between them and is key to its “share everything with everybody” approach. Users can share YouTube videos on Facebook, share Facebook photos on Twitter, share tunes via SMS, and more — because everything’s a first-class citizen, they can do it in a way that would otherwise be clumsy or impossible.
  • Your mobile media home – Users can now create personal Home screens for fast access to their favorite stuff. Exclusive ZoomLinks let users jump instantly to almost anything — individual items, entire albums, even to specific features of any Kinoma Play application. They can make pages that collect friends’ Flickr photostreams, YouTube favorites and Twitter tweets, pages of “presets” to live radio streams and podcasts — the possibilities are infinite.
  • Twitter – Allows users to tweet about the music, videos and podcasts they love on the world’s largest microblogging site. They can update their status, and photo-blog their day for friends, family and followers all around the world with built-in TwitPic integration. There’s even built-in search so users can see what the world’s saying about breaking news, or about themselves.
  • Facebook – The world’s largest social network is also the world’s largest photo sharing site, and Kinoma Play is now the easiest, most convenient way for users to update their status and instantly share the pictures that tell the story of their life.
  • App stores — Kinoma Play’s built-in store allows users to download and update their Kinoma Play apps. With two clicks they can install the Mobihand Store app to buy Windows Mobile apps for their phone, check out screenshots and YouTube video demos before they buy, and even download free trials.
  • YouTube — Kinoma Play is now the world’s most comprehensive mobile application for YouTube, the world’s largest social video site. There’s an all-new user interface and tons of features — upload, browse, search, play, favorite, rate, comment, share and lots more.
  • Last.fm — It’s the music service that “learns what you love” and now Kinoma Play lets users share their love of music with the world. Users can automatically “scrobble” while they listen, see and read about favorite bands and artists, find more artists like the ones they love and connect with what their friends are listening to as well.
  • News Reader — Kinoma Play’s new built-in news reader application lets users read their favorite blogs and other news right within Kinoma Play, and play associated video, music, podcasts and pictures as well. By subscribing, they’ll automatically be notified about new posts as they become available.

  • Flickr and Picasa — They’re two of the world’s largest photo-sharing sites, and they’re built right in. With Kinoma Play, the phone is an “infinite photo album” of personal photos, photos from friends and family and the most interesting photos taken by people around the world. Even upload new photos on the fly in just seconds.

And finally, just over a year of the introduction of Kinoma Play the news came that the company was Introducing Kinoma Play for Symbian/S60 phones [Sept 15, 2009] (emphasis is mine):

“Nokia’s goal is to provide the best media experience possible on mobile, so we’re thrilled that Kinoma Play is now available for Nokia S60 phones,” said Purnima Kochikar, VP, Forum Nokia and Developer Communities, at Nokia. “It’s exciting and fun for consumers who want to play and share the world’s best entertainment content, and indispensible for business users who need constant access to the latest business and financial news. Innovators like Kinoma show that the only limit to Nokia platforms is their imagination.”

Kinoma Play for Nokia Symbian/S60 is available immediately (in 11 languages!) for supported phones [of Nokia 5000, 6000, E and N Series] running S60 3rd Edition, Feature Pack 1 or Feature Pack 2.

The platform story essentially has ended a week later by New Kinoma Play update: Twitter location, location, location (and more!) [Sept 22, 2009]:

Not only did we introduce support for a new mobile platform with the release of Kinoma Play for Symbian/S60, but we also released a very nice update for all of our Windows Mobile customers as well.

Kinoma Play’s Twitter app is now location aware. A new Set Location command in the Profile tab lets you enter a location, or use your phone’s GPS to choose your location from a list. A list of recent locations makes it super-quick to update your location.

twitter_set-location-100

Plus, a new Nearby search (GPS required) shows you nearby news, views and gossip. Who needs a watercooler when you’ve got Kinoma Play?

twitter_search_nearby

Plus:

  • If a message contains links to a YouTube video or Flickr image, Kinoma Play now opens them directly in its YouTube and Flickr apps rather than launching a web browser. It’s much faster, and (unlike a web browser) always works.
  • The Twitter app now shows the source (web, Kinoma Play, API, etc.) of individual tweets.

What came after this was “just” a great series of new content announcements with minor updates and a few reminders (sometimes via quoting 3d party reviews) of the values of the available features. There were just three anoouncements related to the “expansion/enhancement” of the platform:
Kinoma Play powers the media experience of another Snapdragon phone [Nov 12, 2009] the the dynapocket SoftBank X02T
See Kinoma Play on Nokia’s just-launched E72 [Nov 23, 2009] “how Kinoma Play turns the mild-mannered Nokia E72 (and other Symbian/S60 phones) into a mobile media monster.”
Kinoma FreePlay and Kinoma Player 4 updates now available [Apr 2, 2010] as “YouTube recently made some unannounced changes that broke YouTube support in some of our products”

Below you can find the headlines of not less than 53 posts describing quite well the richness and usability of Kinoma as a multimedia platform:

“A Life Well Wasted” [podcast] now available on mobile with Kinoma Play [Sept 24, 2009]

New! Listen to The New York Times on mobile with Kinoma Play [Sept 29, 2009]

Feature focus: Flights [Oct 1, 2009]

Celebrate 40 years of Monty Python (nudge, nudge) with Kinoma Play [Oct 5, 2009]

Feature focus: Yelp – Quick, easy local business search [Oct 21, 2009]

Halloween treats from Kinoma (Spooky radio, podcasts and more!) [Oct 30, 2009]

Listen to SKY.fm + Digitally Imported with Kinoma Play: 60+ stations, aacPlus [Nov 2, 2009]

We’ve just released a new Kinoma Guide update that adds all currently-available SKY.fm and DI.fm (Digitally Imported) stations in all available stream formats — including aacPlus.

AAC is the standards-based successor to MP3. It offers far higher-quality than MP3 at similar bitrates.

Kinoma Play is the only mobile player that supports not just AAC, but also the even more-advanced aacPlus and aacPlus v2 (a.k.a. HE-AAC and HE-AAC v2) formats.

New! Now Mac users can stream video, music and pictures from home to phone [Nov 19, 2009]

I love being able to stream my entire personal media library on-demand. Not just because my collection takes up more space than any SD card could ever hold, but also because I don’t have to worry about ”syncing” my phone every time I leave the house.

Our customers seem to agree, and that’s why we built support for Orb — a free personal media server that runs on your PC — into Kinoma Play, Kinoma FreePlay and Kinoma Player 4 EX.

The only problem? Until very recently, Orb was only available for Windows. Today I’m glad to share that Orb is now available for Mac OS X.

Orb - Home

If you’re a Mac users, it means that now you can enjoy the best way to play your entire library of movies, TV shows, music, podcasts, pictures and more while you’re out and about. Try it today!

Listen to SomaFM independent radio with Kinoma Play: 20 channels, commercial-free [Nov 24, 2009]

New! Listen to holiday music anytime, everywhere with Kinoma Play [Nov 29, 2009]

The Windows Mobile grade-and-pave (or, how to make your phone work like new again) [Dec 3, 2009]

New! Watch 500+ TEDTalks on your phone with Kinoma Play [Dec 15, 2009]

“Kevin Pollak’s Chat Show” now available on your phone with Kinoma Play [Dec 17, 2009]

New! 938 audiobooks from Project Gutenberg [Dec 30, 2009]

Can’t remember where you stopped? Kinoma Play does! [Jan 5, 2010]

How to play Zune Pass music on your WinMo and Symbian/S60 phone [Jan 8, 2010]

New! Learn HowStuffWorks [podcasts] on your phone with Kinoma Play [Jan 13, 2009]

PalmAddict readers: Kinoma Play best media app for Windows Mobile [Jan 21, 2010]

New! Stay on top of tech with 650+ videos from O’Reilly TV [Jan 29, 2010]

Watch, re-watch and share Super Bowl 2010 commercials [Feb 8, 2010]

New! The Muppets Muppets Muppets on your mobile mobile mobile [Feb 11, 2010]

Two ways to send a direct message with Twitter for Kinoma Play [March 8, 2010]

Kinoma Play one of “7 best and most gorgeous applications for Symbian” [March 16, 2010]

Enjoy “Maximum Fun” shows on your phone with Kinoma Play [March 24, 2010]

New! Watch FreeBe TV shows on your phone with Kinoma Play [March 25, 2010]

New! Catch shows by Scott Johnson and friends on your phone with Kinoma Play [April 5, 2010]

JAMM: “I am an app junkie…I bought Kinoma Play and haven’t looked back” [April 7, 2010] (emphasis in red is mine)

David Gray‘s published his review of Kinoma Play on Just Another Mobile Monday this weekend. We couldn’t have asked for a nicer Easter present!

“I tried it, was so impressed by it’s graphics, intuitive ease of use, and its inclusion under-one-roof of some functions I already had individual apps for, I immediately bought the pay-version, called Kinoma Play, and haven’t looked back. I was also able to un-install a bunch of those now unnecessary space/memory wasters.”

Adam Carolla’s ACE Broadcasting shows now available on your phone with Kinoma Play [April 12, 2010]

Chris Hardwick’s Nerdist podcast “now a thing!” in Kinoma Play [May 14, 2010]

The Really Mobile Project: Kinoma Play “a bloody good app” [May 20, 2010]

The site published an excellent review of Kinoma Play. … the author — mobile technology expert Ben Smith — gets to the heart of both the what and the why of Kinoma Play. To quote (emphasis mine):

So what is Kinoma Play? At heart it’s a media player, but that description sells it short. It’s an audio player, picture viewer, a video player, a podcast manager (and player), a YouTube client, plus it’s got interfaces to social networks such as Facebook and Twitter.

The trouble is, that longer description makes it sound like a mess — trying to be all things to all people… But it’s not. And that’s actually made me a fan. It’s the polish…the refinement, the usability.

I quickly re-produced my media library (normally on my iPhone) onto my now-ageing N82 — podcasts, audio in multiple formats (including non-DRM content from the iTunes Store) and RSS feeds were all viewable just as easily as the iPhone. It’s advanced enough to keep the geeks happy and I’d happily give it to a ‘non-geek’ to use too, it’s that good.

Kinoma Play YouTube app update now available [May 21, 2010]

Follow the FIFA 2010 World Cup on your phone with Kinoma Play [June 10, 2010]

Kinoma Play Flights update now available [June 12, 2010]

Enjoy TWiT.tv shows anytime, everywhere (now with video!) [June 15, 2010]

177 (live!) London traffic cameras now available for your phone with Kinoma Play [June 22, 2010]

Google Reader update for Kinoma Play now available — speedier, more compatible [June 24, 2010]

One of the apps we use every day is Kinoma Play’s Google Reader app. It’s a fast, easy way to keep up with your favorite sites, and the full-text searching makes it incredibly easy to find posts on the exact topic you want no matter what feed or folder they’re in.

The reason we keep the word “Beta” painted on is that Google hasn’t quite settled on its “API”, which is what software developers like Kinoma use to access your Google Reader feeds. That means that they can change it anytime without notice.

That’s exactly what just happened, and so today we have a shiny new update of the Google Reader app for you!

Celebrate Michael Jackson’s legacy with Kinoma Play [June 26, 2010]

New! AccuRadio comes to Kinoma Play [July 6, 2010]

200+ BBC podcasts, new in Kinoma Play [July 13, 2010]

New! Hear spellbinding stories and tales from “The Moth” on your phone [July 22, 2010]

New! 87 radio stations from 1CLUB.FM now available on your phone [July 30, 2010]

Loads of new PBS content now available in Kinoma Guide [Aug 26, 2010]

Next Best Thing to Being There: Burning Man 2010 in Kinoma Play [Sept 1, 2010]

San Francisco’s cool new pirate radio station now available on your phone with Kinoma Play [Sept 16, 2010]

New Kinoma Play and FreePlay updates bring improved YouTube support [Sept 17, 2010]

New! Play hundreds of Sesame Street videos on your phone with Kinoma Play [Sept 21, 2010]

(Way) Up, up and away with NASA and Kinoma Play [Sept 23, 2010]

The world’s best movie podcasts, now available in Kinoma Play [Sept 30, 2010]

New! Scary stuff to get you in a spook-tacular mood for Halloween [Oct 26, 2010]

Bring the spirit of the holidays everywhere you go with Kinoma Play [Nov 16, 2010]

Remember John Lennon’s life and music with Kinoma Play [Dec 9, 2010]

New! Slate and Slate V come to Kinoma Play [Dec 15, 2010]

Enjoy Podcast Awards’ best podcasts of 2010 with Kinoma Play [Jan 12, 2010]