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Phablet competition in India: $258 Micromax-MediaTek-2013 against $360 Samsung-Broadcom-2012

Allwinner in mainland China moved first to quad-core Cortex-A7 with the A31 SoC introduced with the launch of the first two tablet products, Onda V972 and V812, on December 5, 2012 (and delivered from December 24, 2012 on in mainland China). That prompted a direction only reaction that Qualcomm quad-core Cortex-A7 SoCs with Adreno 305 and 1080p coming for the high-volume global market and China [Dec 9, 2012]), with sampling just planned for Q2’13 and only now publishing a completely redesigned 2013 roadmap according to Qualcomm moving ahead of Allwinner et al. in CPU and GPU while trying to catch up with Allwinner in Ultra HD [Jan 12 – Feb 20, 2013]. The #2 SoC vendor MediaTek from Taiwan had already plans to move to Cortex-A7 so was able to react much more quickly with MediaTek MT6589 quad-core Cortex-A7 SoC with HSPA+ and TD-SCDMA is available for Android smartphones and tablets of Q1 delivery [Dec 12, 2012]. Such a delivery first happened with Micromax A116 in India (from February 14, 2013 on) which targeted the delivery of Samsung Galaxy Grand (from January 21, 2013 on) based on a very much ‘2012 vintage’ SoC from Broadcom still using a dual core Cortex-A9 driven CPU.

So here we have an interesting possibility of comparing a ‘2013 vintage’ (quad-core Cortex-A7 at 28nm etc.) phablet solution with a ‘2012 vintage’ (dual core Cortex-A9 at 40nm LP etc.) one. In addition from a vendor (MediaTek) trying to agressively conquer the global market after the Greater China one by going against the global #1 heavyweight Samsung. Such an analysis would, no doubt, reveal quite interesting facts not only about the current state of the market but about the future market as well.

First here is an overall comparison video from India:
Micromax Canvas HD A116 VS Samsung Galaxy Grand – Gaming, Benchmarks, Camera, Performance, Display [intellectdigest YouTube channel, Feb 16, 2013]

See also: ‘Micromax Canvas HD A116 Detailed In Depth Video Review And Comparison With Galaxy Grand’ at http://www.intellectdigest.in/micromax-canvas-hd-a-116-price-and-review-583/

Next there is a detailed specification comparison is in the table somewhat below.

Before that, however, note that to do such a comparison one needs to invest more than one day of time which shows quite well that in the consumer computing space customers will hardly be able to recognize the really deciding differentiators(in the same way as this happens with consumer products in general). I am particularly dismayed by the fact that even from such a table one will hardly recognize the most important differentiator that from power consumption point of view the Galaxy Grand is ways better that the Micromax A116 (440 hours of standby time vs. 174 hours, and 10 hours 10 minutes of talk time vs. 5 hours).

Then the display quality difference discussed first in the above video is far less than one would conclude from the below table (TFT LCD at 800×480 resolution on Grand and IPS at 1280×720 on Micromax A116) as evidenced by the excerpted video image included below (taken az [1:15] with A116 on the left and Grand on the right, for both the brightness set to maximum for the comparison). One of the reasons for that is the mDNIe (mobile Digital Natural Image engine) technology from Samsung going back to 2003 with TVs. In fact MediaTek just now came up with a kind of similar technology of its own (see in the end of Section 1) called MiraVision. Immediately after that (in the whole Section 2) I included all available material about both the mDNIe and its “parent from TVs”, DNIe in order to make possible to understand the maturity of Samsung solution vs. the MediaTek one. And there are definitely other “tricks” (additional layers etc.) which are also essential for making the Grand screen a true masterpice of display engineering.

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Click on the image below or this link in order to go to a clickable version of the table!image
            Click on the image above or this link in order to go to a clickable version of the table!

Finally, in addition to the already mentioned first two sections of the detailed analysis there is a Section 3 in the end devoted to the Broadcom SoC technology used in the Samsung Galaxy Grand

More information for this introductory part:
Micromax Canvas HD A116 [Micromax microsite, Feb 13, 2013]
MediaTek High Performance Quad Core Solution Empowers Micromax A116 Canvas HD [MediaTek press release, Jan 22, 2013]
Micromax Canvas HD demo Video [micromaxtube YouTube channel, Feb 19, 2013]

Micromax launches Canvas HD to strengthen phablet leadership [Micromax press release, Jan 21, 2013]

… it is the ideal phone for the young generation who is always on the lookout for better, faster and savvier smart phones on the go!

Commenting on the launch and association with MediaTek, Mr. Deepak Mehrotra, Chief Executive Officer, Micromax said, “At Micromax, we constantly strive to innovate and develop  great technological experiences for our consumers. Today’s launch marks our association with MediaTek to bring forth our first quad core phone in this segment, offering consumers a great user experience with latest features and added functionality.” He further added, “We are excited with the success of Canvas 2, which has clearly established Micromax as number one player in the new 5” phablet category in India. We are looking forward to similar success with the new phone being unveiled today.”
Speaking at the occasion,  Dr. Finbarr Moynihan, General Manager  – Business Development at MediaTek, said, “In less than 2 years of launching our first smartphone chipset, MediaTek’s shipments in this category have grown more than ten times, with 110 million units in 2012. As the world’s first commercialized quad-core Cortex-A7 SoC, the MT6589 is an innovative solution that accelerates product development, simplifies differentiation, and offers the best possible experience that mid to high-end smart device owners desire. Micromax shares our core philosophy of pushing the bar on innovation and bringing it within the reach of the masses. We are delighted that India’s leading youth mobile brand has chosen MediaTek to power its top-end mobile smartphones.”

About Micromax [the 12th largest handset manufacturer in the world]:
Micromax started as an IT software company in the year 2000 working on embedded platforms. In 2008, it entered mobile handset business and by 2010 it became one of the largest Indian domestic mobile handsets company by offering unique affordable innovations. … The brand’s product portfolio embraces more than 60 models today, ranging from feature rich, dual – SIM phones, 3G Android smartphones, tablets, LED televisions and data cards. The company has many firsts to its credit when it comes to the mobile handset market including the 30-day battery backup, dual SIM phones, QWERTY keypads, dual reception mode handsets, universal remote control mobile phones etc. Micromax has presence in more than 500 districts through 100,000 retail outlets in India. The company has global business presence spread across Hong Kong, Bangladesh, Nepal, Sri-Lanka, Maldives, UAE, Kingdom of Saudi Arabia, Kuwait, Qatar, Oman, Afghanistan and Brazil.

Samsung Galaxy Grand (i9082) full review hands on video [mobiscrub YouTube channel, Feb 4, 2013]

[2:06] The display of the Grand is a 5 inch Super Clear LCD with a resolution of 480 x 800 pixels. When compared to the Super AMOLED screen in the Galaxy Note II or the S III, the screen does look less saturated, however, color rendition is great & looks very natural. Wide viewing angles & good outdoor visibility lets you watch movies & read content easily. [2:42]
The Galaxy Grand camera is an 8 MP sensor with autofocus & LED Flash. The camera also features BIS (Backside Illumination Sensor) which basically takes great shots even in low light condition. The shutter speed of the Galaxy Grand camera is quite nice as well but not as fast as the Note II or the S III.
Much of the smart features in the Galaxy Grand resemble to those found in the S III & Note II such as: Multi window, Smart Rotation, Smart Stay, Smart Alert, Direct call & pop up play. Obviously there is no S Pen included with the Galaxy Grand, that differentiates from the smartphone beast, the Note II.

Samsung GALAXY Grand [Samsung Mobile Press announcement, Dec 18, 2012]
Samsung Unveiled GALAXY Grand [Samsung Tomorrow Global, Dec 18, 2012]
Galaxy Grand GT-i9082 [Samsung India microsite, Jan 22, 2013]
Samsung Galaxy Grand Redefines Smartphone Experience for All [Samsung India press release, Jan 22, 2013]

Even though it supports a massive 5.0″ screen with WVGA TFT display powered with mDNIe [mobile Digital Natural Image engine]technology, the device is incredibly slim and comes with an ergonomic design which makes is comfortable to hold. The vivid display provides an expansive viewing experience rendering messaging, multimedia and Web content in brilliant color and clarity.

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Samsung GT-i9082 Galaxy Grand [Duos]

Micromax Canvas HD A116 Detailed In Depth Video Review And Comparison With Galaxy Grand [Intellect Digest, Feb 17, 2013]
List of Top 5 Phablets under Rs 20k – Feb 2013 [My PhoneFactor.in, Feb 20, 2013]
Micromax A116 Canvas HD performance review vs. other quad-core phones [Thinkdigit, Feb 15, 2013]


Section 1   MT6589
Quad-Core Cortex-A7 1GHz+CPU Smartphone Platform [MediaTek product page, Dec 27, 2012]

Overview

The world’s first commercialized quad-core SoC available for mid to high end smartphone and tablets market
The Coolest quad core solution- MT6589 is the world’s first commercialized quad-core SoC (AP+BB) available for mid to high end smartphone and tablets market, the MT6589 integrates a power-efficient Cortex™-A7 CPU subsystem from ARM, PowerVR™ Series5XT GPU from Imagination Technologies, and MediaTek’s advanced multi-mode UMTS Rel. 8/HSPA+/TD-SCDMA modem. The MT6589 is delivered in advanced 28nm process technology, creating a universal platform that delivers powerful performance at a very competitive price.

Features

Innovative, Advanced Dual-SIM solution
    • Dual-SIM and Dual-Active functionality frees users to seamlessly make and receive calls on two SIM cards at the same time.
      High-end Multimedia Capabilities
        • 13MP camera with integrated ISP, 1080p playback and recording at 30fps, and enhanced image processing for DTV-grade image quality
        • Full HD (1920×1080) [1080p] LCD support for razor sharp visuals
          Best-in-class MediaTek Technology
            • Integrated leading 4-in-1 connectivity combo, providing 802.11n Wi-Fi, BT4.0, GPS and FM radio

            MT6589 – The Coolest Quad-Core SoC Platform – Thermal Benchmark [mediateklab YouTube channel, Dec 28, 2012]

            MediaTek MT6589 -The World’s First Commercialized Quad-Core Cortex-A7 SoC Available for Mid to High End Smartphone and Tablets Market.

            See also:
            MediaTek Strengthens Global Position with World’s First Quad-Core Cortex-A7 System on a Chip – MT6589 [MediaTek press release, Dec 11, 2012]

            MediaTek Inc., a leading fabless semiconductor company for wireless communications and digital multimedia solutions, announced the launch of the MT6589, the world’s first commercialized quad-core System on a Chip (SoC), available for mid to high-end Android smartphones and tablets worldwide. The new quad-core SoC integrates MediaTek’s advanced multi-mode UMTS Rel. 8/HSPA+/TD-SCDMA modem, a power-efficient quad-core Cortex™-A7 CPU subsystem from ARM, PowerVR™ Series5XT GPU from Imagination Technologies, and is delivered in 28nm process technology. As a leader in Dual-SIM technology, the MT6589 is also the world’s first HSPA+ smartphone platform supporting Dual-SIM, Dual-Active functionality to address increasing multi-SIM demand around the world. The integration of these compelling features makes the MT6589 a universal platform that delivers premium multimedia capabilities with extremely low power consumption for an outstanding user experience. It also enables handset makers to reduce time to market, simplify product development and manage product differentiation in a more cost effective way, for any market worldwide.
            The MT6589 also supports Miracast™ technology for multi-screen content sharing and pre-integrates MediaTek’s leading 4-in-1 connectivity combo, which supports 802.11n Wi-Fi, BT4.0, GPS and FM.
            The MediaTek MT6589 is currently being incorporated into smart devices by MediaTek’s leading global customers, and the first models based on this new chipset are expected to ship commercially in Q1 2013.

            Lenovo S3000 uses MediaTek quad-core ARM Cortex-A7 [Charbax YouTube channel, Feb 26, 2013]

            Lenovo announces the Android tablet market has overtaken the iPad market, with 53% worldwide market share for Android and 43% for iPad. Lenovo is the biggest tablet brand in China, with a tight relation to MediaTek, here’s Lenovo’s latest quad-core 7″ 1024×600 IPS tablet.

            MediaTek Powers Lenovo’s Premium Multimedia IdeaTab S6000 Tablet [MediaTek press release, Feb 25, 2013]

            This year, at Mobile World Congress, MediaTek’s quad core SoC will be powering three new Android tablets launched by Lenovo, led by the Lenovo IdeaTab S6000. Built on the Android 4.2 Jelly Bean operating system, the S6000 is a sleek (8.6mm) and light (560g), 10” tablet which leverages quad-core processing to deliver performance, connectivity, and clarity.
            Jeffrey Ju, GM of Smartphone Business Unit of MediaTek. “Our aim is to democratize the smartphone market by enabling the smart ecosystem to make high performance products at affordable prices for the mainstream market.  This in turn will be the catalyst for the smart age as customers will demand greater device integration to share and view their entertainment and information seamlessly across multiple screens – requiring a sophisticated smart ecosystem that only MediaTek’s SoC total solutions can drive.”

            How MediaTek helps lower mobile device power consumption? [mediateklab YouTube channel, Feb 24, 2013]

            MediaTek is continuously making technological breakthrough with each new generation of smartphone solution. Through high levels of hardware and software integration and the efforts of system optimization, the CPU power saving for MT6589 allows for up to 11 extra hours of operation with a typical battery. Watch the video to learn more…

            MiraVision makes Full-HD support for mobile devices a reality to everyone [MediaTek press release, Feb 25, 2013]

            MediaTek Inc., a leading fabless semiconductor company for wireless communications and digital multimedia solutions announced today the availability of “MiraVision,” the world’s most comprehensive suite of display picture quality technology, for its smartphone and tablet platforms.
            The joint hardware and software suite of display picture quality technology – MiraVision – aims to strengthen Mediatek’s leading position in the smart age, where consumers can expect the same, high quality of the visual experience across various display resolutions. Leveraging MediaTek’s leading display picture quality technology developed in digital TV (DTV), MiraVision is designed to deliver seamless full high-definition display picture quality on mobile devices. It empowers handset and tablets makers to provide the best visual quality on the mobile platform with reduced time to market, simplified product development and differentiation for consumers everywhere.
            MiraVision is equipped with specific features that enable users to enjoy DTV-grade display picture quality on their mobile devices. With MiraVision, contents will be displayed more vivid and saturated with more details, providing a far richer and more colorful viewing experience previously only available on a high-end DTV. Furthermore, specifically tailored for mobile devices, the all-important power efficiency has been addressed and boosted through the Ambient-Light Adaptive Luma (AAL) technology, which intelligently adjusts the panel backlight in response to the ambient light intensity and the displayed contents to simultaneously optimize battery life and viewing experience. The combination of enhanced sharpness, richer color and adaptive Luma technology means true seamless quality across multiple devices is closer than ever before.
            “The future is more than just TVs or smartphones alone,” commented Jeffrey Ju, GM of Smartphone Business Unit of MediaTek, “our focus is on innovative solutions that enhance the chip, driving speed to market at premium performance up for our customers while ensuring the seamless cross-screen experience across the array of devices through which users are consuming entertainment and information. We are proud to be the one who can truly integrate technologies of DTV and mobile phones/tablets in the smart age, making the premium cross-screen experience real to everyone in every market.”

            This background technology from MediaTek is also available to the MT6589 as evidenced by [2:00 – 3:00] time fragment of this recorded video (at [0:56] it is explicitly said: “Miravision engine which has been included in the new MT6589 quad-core SoC”):
            MiraVision: world’s leading digital TV-grade picture-quality engine for mobile devices [mediateklab YouTube channel, Feb 24, 2013]

            With advanced algorithms, the Miravision picture-quality engine can calculate the optimal level of backlighting for any given environment, while also ensuring that the backlighting is optimized by the content. This kind of flexible optimization for backlighting and pixel intensity gives the user a level of screen brightness that is most comfortable and pleasing for the eyes.


            Section 2 Samsung mDNIe [mobile Digital Natural Image engine]

            Into the New Wave – the Samsung Wave S8500 [samsungwave YouTube channel, Feb 14, 2010]

            Samsung Wave S8500 is the first mobile handset to be released on Samsung’s new, open mobile platform, Samsung bada. … Display: 3.3 WVGA (800×480) Super AMOLED with mDNIe (mobile Digital Natural Image engine) technology. DNIe technology is proven display technology which was incorporated to Samsung’s LCD TV and LED TVs lineups. It boosts an even sharper and crisper viewing experience for photos, videos, and e-books than the Super AMOLED by itself.

            Mobile Digital Natural Image Engine – mDNIe [Read a tech, June 12, 2010]

            Samsung Wave display features Samsung’s mDNIe – mobile Digital Natural Image engine technology, borrowed from Samsung’s latest LCD TV and LED TV products, says the company. The mDNIe technology is said to offer better viewing angles and “super fast response.” The Wave’s display is also touted for its tempered glass and anti-smudge surface.

            From http://tvtonight.televisionshop.info/samsung-hl-s5087w-50-inch-1080p-dlp-hdtv-on-sale/

            The Samsung Digital Natural Image engine (DNIe) Video Enhancer refines all analog NTSC and wideband video inputs for an overall improvement in picture quality. DNIe improves contrast, white level, picture detail and incorporates digital noise reduction to improve lower quality video inputs. The 3-line digital comb filter constantly analyzes the three dimensions of picture height, picture width, and picture changes-over-time to dramatically reduce edge image artifacts while improving transition detail. Samsung’s Cinema Smooth 3:2 pull-down film mode corrects for the artificial frames created when films are converted to DVDs. The result is a clearer image without the subtle motion artifacts caused by 24-to-30 frames per second video conversion.

            Samsung’s DNIe™

            Samsung’s DNIe™ technology offers digital perfection in naturally presented, crystal-clear images that uncover even the most minute detail.


            Motion Optimizer: The visual data are automatically broken down into signal and noise and adjusted through a combined spatial/temporal process to eliminate noise and blurring without the slightest damage to the original signal. This guarantees the viewer a picture of astounding sharpness, whether the scene is still or moving.


            Contrast Enhancer: DNIe has done away with the unwanted side-effects that conventional contrast enhancement can produce, such as noise boost-up and flicker by developing an algorithm that recognizes over 1 million criteria for applying contrast. Its detail contrast enhancement technology can automatically analyze up to 70,000 local images within a frame, treating the viewer to a picture rich in contrast even in the tiniest details.


            Color optimizer: For each scene the color optimizer calculates the saturation of red, green, and blue in the input signal and adjusts it to the shades that the human eye accepts as natural. Even a conventional process like white tone enhancement produces more striking results when when used with DNIe. The end result is a palette of vivid hues and pure white tones to satisfy the most discerning viewers eye.


            Detail enhancer: Many viewers complain of the unnatural effect that conventional uniform detail enhancement produces by relying on artificial amplification of the input signal. In contrast, DNIe automatically analyzes the portion to be amplified, detecting and re-processing any noise or defect to bring the viewer a startlingly sharp and lifelike image.

            Samsung DNIe ‘Pixel’ [sangafilms YouTube channel, Dec 5, 2007]

            “Nature created DNA, but SAMSUNG developed DNIe.” Samsung Electronics Unveils New “Natural Image” Technology for Digital TV [Samsung press release, April 2003]

            – Digital TVs with new DNIe technology are being put on the world market. DNIe technology can be applied to all digital TV typesLCD, PDP, projection or CRT.
            – The cleanest and most natural images are produced under all viewing conditions.
            – Samsung, which leads the world market in color TVs, TFT-LCDs, and color monitors, aims to do the same with digital TVs.
            Samsung Electronics has developed the Digital Natural Image engine (DNIe) that greatly improves the clarity and detail of images reproduced by color TVs. The company expects its technology breakthrough to elevate the Samsung brand the top of the rapidly growing world digital TV market.
            On April 29, Samsung Electronics held a briefing on the new DNIe technology and digital TV business strategy. On display were PDP, LCD, projection and cathode ray tube (CRT) models supported by DNIe, which offers far greater image detail than conventional digital TVs. Samsung Electronics began its research project to improve picture quality back in 1996 and implemented it in stages. The first prototype digital TV with DNIe was ready last December. The technology can be used with all types of digital TVs to re-create natural colors that truly please. Last year, Samsung sold more color TVs than any other manufacturer, and now the company is ready to do the same in the digital TV market.
            DNIe technology optimizes the moving picture image and color, while the contrast ratio and fine details are amplified. These four processes automatically and precisely capture broadcast signals in all formats, from analog to high definition. This high clarity, high detail image technology provides the best possible picture quality under all conditions.
            Last December, Samsung Electronics completed development of the four processes. The next four months were applying the new technology to CRT TVs (29”-32”), DLP projection TVs (43” to 61”), CRT projection TVs (43” to 52”) PDP TVs (42” to 63”) and LCD TVs (32” to 40”) and commercializing the new products.
            Significance of New DNIe Technology
            Samsung Electronics’ high clarity, high detail image technology is the product of a determined effort to improve picture quality. This approach is far more than a simple picture improvement based on analog signal reception. Rather, the new technology produces complete image quality; any signal input comes out cleaner and more natural.
            DNIe can completely eliminate blurring from movement or image prolongation. A deep contrast can also be achieved. What is more, the finest detail appears sharp, while the vivid natural color is most pleasing to the eye.
            The Samsung Electronics briefing clearly demonstrated the superiority of the company’s latest technology over conventional technology. The company has received 85 foreign and domestic patents related to DNIe, including a basic technology patent for contrast reproduction.

            DNIe Technology in a Nutshell

            Samsung’s unique DNIe technology encompasses four functions that analyze all signal input, from analog to high definition, in stages. The volume of noise in the signal is detected and the signal level is classified according into analog, SD or HD and then optimized accordingly.
            Motion Optimizer: Processes Noise More Completely than Ever Before
            This noise processing technology integrates temporal and spatial concepts to ensure clear images even when the motion is very fast.
            Contrast Enhancer: For a Deeper Contrast
            This technology employs a contrast ratio of one million or more and a new algorithm that can reproduce the optimal contrast to provide a deep and rich image quality.
            Detail Enhancer: Complete Images, True to the Finest Detail
            A vastly improved technology for automatically analyzing the picture signal reproduces images in amazing detail, resulting in more lifelike video.
            Color Optimizer: Vivid, Natural Colors
            The video signals being generated are analyzed and the quantities of reds, greens and blues are calculated to provide the colors most natural to the human eye.

            Samsung DNIe [tnbtsingapore YouTube channel, Aug 12, 2010]

            FAQs: What is DNIe [Samsung, Oct 10, 2012]

            Samsung’s Digital Natural Image engine (DNIe TM) is a set of four advanced image processing technologies that makes digital TVs, including various types of displays such as LCD, PDP, projection, and CRT, produce the clearest, most detailed, and yet most natural-looking images ever.
            The four technologies used by DNIe are:
            • Motion Optimiser: eliminates noise, even in moving pictures
            • Contrast Enhancer: increases the contrast
            • Detail Enhancer: sharpens pictures and makes details visible
            • Color Optimiser: provides natural and vibrant colours
            The secret of DNIe TM begins with an Intelligent Analyser that analyses any kind of input signal to optimise the picture quality. By analysing the frequency characteristics of the input signal, the Analyser automatically detects the amount of noise in the signal, identifies the source level as analogue, SD, or HD, and even determines whether it has been scaled.
            Through this analysis of the input signal at the first stage of the DNIe TM process, the Intelligent Analyser ensures that the optimal adjustments is made throughout the remaining four stages to the production of the final output.
            DNIe technology is not only suitable for all usual input signals for television reception today, such as analogue, cable, satellite and digital, it also works with the input signals of DVD, camcorders and game computers.
            DNIeTM R&D History
            Progress in picture quality enhancement has been achieved through sustained research and investment at Samsung, beginning in 1996 with an independent project. In 1997, Samsung’s project developed a noise reduction function for the image enhancement of CRT TVs.
            In 2000, Samsung embarked on a new picture quality enhancement project and confirmed its potential for production. By 2001, the fruits of these research efforts had laid the technological foundations for the birth of Samsung’s full-fledged image enhancement algorithm.
            In March 2002, the basic version of Samsung’s unique DNIe technology was ready. At last it was possible to obtain optimal picture quality with signals ranging from RF all the way up to HD. The development of DNIe was completed by 2002, and early 2003 this radical new technology caught the eye of the world in a successful demo at a show in Las Vegas.
            For more information on (DNIe) Digital Natural Image engine click Here

            DNIe – Digital Natural Image engine [Birds-Eye.Net, Apr 3, 2011]

            DNIe, or Digital Natural Image engine, is a “natural image” technology introduced by Samsung in 2003. Originally developed as part of a concerted effort by Samsung to improve television picture quality on non-high-definition-televisions, the DNIe chip is now used in Samsung’s plasma and high definition televisions (HDTV). DNIe makes input signals sharper, clearer and more lifelike. Its advanced image processors help to create true-to-life colors and high contrast, while pretty much eliminating digital artifacts.
            DNIe offers better detail than conventional televisions by using four proprietary processes that optimize and enhance image quality and sound: a Motion Optimizer that is a noise processing technology used to eliminate blurring and noise in fast moving images and thus producing a more natural-looking motion; a Contrast Enhancer that offers rich details and image quality through brightness and contrast levels that are enhanced for deeper, richer blacks with greater detail, and more natural whites; a Detail Enhancer that automatically analyzes the picture signal elements in order to produce sharper detail, clearer image separation and more natural edge transition; and a Color Optimizer that analyzes the video signals being generated so that the quantities of reds, greens, and blues are calculated to provide colors with a more lifelike realism, where whites are more accurate, and skin tones are given a more natural hue. DNIe also offers Samsung’s patented “My Color Control” technology that the user to control specific colors without affecting the whole screen, providing six color-control selections: white, red, pink, yellow, green and blue, so the user can adjust a color to their liking.
            Other Related Definitions for DNIe
            “The secret of DNIe TM begins with an Intelligent Analyzer that analyzes any kind of input signal to optimize the picture quality. By analyzing the frequency characteristics of the input signal, the Analyzer automatically detects the amount of noise in the signal, identifies the source level as analogue, SD, or HD, and even determines whether it has been scaled.” [Samsung]
            “The SAMSUNG DNIe vision is an image enhancement algorithm with remarkable engines that work in tandem and individually to improve the visual quality. This technology from SAMSUNG that spells the end of conventional television.” [Samsung]
            “SAMSUNG’s DNIe Pro (Digital Natural Image engine) ensures the clearest, most natural images imaginable. Colour and motion are optimised and the contrast and detail are enhanced to ensure unprecedented image quality.” [Samsung]
            “Samsung’s proprietary technology, DNIe – Digital Natural Image engine – is the secret to stunning HDTV picture quality. DNIe optimizes six different elements of image quality such as color balance, sharpness, and motion to reproduce the most life-like and vibrant picture throughout Samsung’s broad portfolio.” [Samsung]
            “DNIe generally improves most HD and DVD content with a few exceptions, but it’s a mixed bag with NTSC sources. Many HD and DVD images are made sharper with DNIe, contrast is improved, and color accuracy is enhanced in many scenes.” [Extremetech.com]
            “DNIe is Samsung’s image “enhancement” engine…On the surface these claims sound great, but on closer examination most of these features are either impossible (6 times density enhancer) or undesirable (dynamic contrast ratio). For every image DNIe makes better there are two images that it makes worse. There is no way these sets can hold a calibration with DNIe enabled. If accuracy is desired DNIe should be turned off and left off. On the HLP DNIe can be easily disabled in the user menu. It should be noted that there are a few models of Samsung DLPs (notably the HLR series) that have DNIe permanently enabled. Before purchasing a Samsung display I would make sure that DNIe can be toggled from the user menus.” [Gadgetbench.com]
            “DNIe is a video enhancer that makes the picture more colorful and lifelike. You can tell too. In the DNIe product demo, the screen is split – one side shows natural footage, the other shows DNIe enhanced footage. The difference is remarkable. The natural footage is boring and robbed of color while the DNIe footage is bright and crisp. The user controls when DNIe is used, which is good because not everyone will want enhanced video all the time – like an editor previewing footage to see what color correction is required.” [Matthew Torres]
            Links Related to DNIe
            Nature created DNA, but SAMSUNG developed DNIe – Samsung Electronics Unveils New “Natural Image” Technology for Digital TV
            What is DNIe? – Digital Natural Image engine

            Technical Resources for DNIe

            Feel the DNIeVideo demo of DNIe and Technical Information

            Blogs about DNIe
            Samsung Village – Official Samsung blog for news and inside stories
            Books about DNIe
            Digital Video and HD, Second Edition: Algorithms and Interfaces (The Morgan Kaufmann Series in Computer Graphics) – by by Charles A. Poynton
            Global Marketing Management – by Kiefer Lee and Steve Carter
            Other DNIe Related Books

            Section 3

            Smartphone HSPA+ Platform (from 2013 Products of Broadcom [Feb 8, 2013]):

            • BCM28145: 720p 4G HSPA+ Smartphone Processor
            • BCM28155: 1080p 4G HSPA+ Smartphone Processor

            Broadcom CEO Discusses Q4 2012 Results – Earnings Call Transcript [Seeking Alpha, Jan 29, 2013]

            Scott A. McGregor – Chief Executive Officer, President and Director

            Samsung launched the Galaxy Grand, Grand Duos, and Galaxy S2 Plus, leveraging our complete Android platform, which includes our 3G cellular SOC and wireless connectivity.

            We also have more than 40 designs in process in China on our turnkey reference platforms. Our technology mix is trending to HSPA+ dual core application processors and additional connectivity, features which command a meaningful ASP premium.

            The Galaxy Grand, for example, includes Broadcom’s dual core SOC NFC controller, connectivity combo with built-in WiFi, Bluetooth and FM, RF transceiver, power management, and GPS.

            From Broadcom Corp. – Analyst/Investor Day, December 6, 2012 (slides from here)

            Robert Americo Rango, Executive Vice President and General Manager of Broadcom’s Mobile and Wireless Group:

            image

            Broadcom’s focus is on 3G and 4G. The reason we’re focused on 3G is because we see the 3G market continuing to grow. We see it being very important for emerging markets. And we see the 3G market taking over the feature phone market going forward. So for emerging markets, our focus is on 3G. And then the 4G market, of course, for developing regions like the U.S. Big investment in 4G, a lot of progress to report, and I’ll get into this in my presentation. So focused on both because these — this is where the growth is, and this is where the action is in the market.

            So 2 years ago, we had one 3G smartphone SoC. That was the 21553. And you can see that’s the 7.2-megabit modem, single-core device. It could address screen sizes, say, from 3 to 3.5 inches. And this was the device that last year I talked about that powered the Samsung GALAXY Y, which was one of the most popular smartphones in India. Now, over the last year, we added 2 chips that we announced earlier this year, the 21654 and the 28145. We switched from 65-nanometer to 40-nanometer, and we went from single core to dual core. So — and you can see that it helped us address a bigger part of the market. We were able to move up to the 4- to 5-inch phone screen size.

            Now today, with the announcement of the 21664 and extension of the 28145 to the 28155, we now have a full family of solutions on 3G. We can cover anything from 3 inch, all the way up to 7 to 10-inch, which would be a tablet. More interesting actually is the 5 to 7-inch category, because the phablet is growing at a 93% compounded average growth rate. And phablets turn out to be one of the biggest growth areas for phones in Asia, okay? So Broadcom has the ability now to address this entire market. And again, why is that important? Because once a customer invests in one of these chips and picks up the Broadcom software suite for one, it can quickly be applied to an entire family of products.

            Now, again, 3G market is very competitive. We all know that 3G is probably the most competitive segment out there. The reason that we can win is because we have a family of devices here that offer different feature points, different cost points and allow us to make money at these various cost points, okay? So a full range of 3G for all of the segments is now complete.

            Now, let me highlight one other point. So 82% of the volume is in this 5-inch and below, but I did mention the phablet being an important segment.

            image

            Now, let me highlight our multimedia capability. I just wanted to compare the 28155 on the right to the HTC One X on the left. So HTC One X is a phone you can buy today. HTC One X is the phone that has been touted to have a lot of multimedia capability, world-class imaging, world-class image signal processing. This is the post-processing that goes on, on the pictures to make the pictures look good. A console gaming capability, good browsing experience, a 720 HD screen, Miracast capability that I just described to you, this ability to beam videos from your phone to a TV as well as Wi-Fi Direct. All these are the multimedia capabilities touted by the HTC One X.

            Now last year, I talked about the economics of the chips that we were announcing. For those of you who were here, I talked about how Broadcom’s ability to integrate with — change the economics of the smartphone business. And here’s a perfect example of how it changed it, okay? So HTC One X, tear it apart, what do you see inside? Three different chips. A thin modem chip, a quad-core application processor, discrete application processor, and a discrete ISP chip.

            Tear apart one of our 28155 phones, what do you see inside? One chip, integrated modem, application processor, graphics and ISP. Okay. So I told you I would exemplify the power of the 28155, and I wanted to talk today about Samsung’s — Samsung is going to be announcing a series of phones based on Broadcom’s 28155 dual core HSPA+. I’m holding the first one in my hand. This is the GALAXY S II Plus, okay? And again if you look go back and look at the GALAXY S II, you’ll see a similar architecture, GALAXY S II Plus, based on 28155, is based on the Broadcom chip, the integrated chip. So those economics that I was talking to you about, they come to play right here with the Samsung GALAXY S II Plus. And in fact, there’s a series of phones that Samsung will be putting out based on the 28155 over the next couple of quarters.

            image

            So and then beyond that, what have we done in 2012? We’re working on customer diversity. And in order to achieve customer diversity in today’s 3G market, you need what’s called a turnkey device, a turnkey design. And you might ask what’s the difference between a turnkey and a reference design? Well, a turnkey is something that can quickly be put into production by a customer. So I’m holding up Broadcom’s 28155 turnkey design. And you can see it’s very thin, it’s very light, it’s the kind of phone that you’d want to carry with you. We have a design file that we can offer a customer. And it can reduce their investment from 6 to 9 months of time, down to 30 to 60 days. Where it used to take 200 to 300 engineers to put a design in production, now it’s something like 20 to 30 engineers because we’ve done the turnkey design. And this design is so complete, we have second-sourced the major components, the panel, the sensor, the memory, and we picked suppliers that are favorite suppliers for companies in China who are really building, taking advantage of these turnkeys. So what we’re doing is we’re enabling our handset companies to focus on what they do best, brand and distribution, and we focus on what we do best, which is engineering execution, okay? And we now have turnkeys for 21654, which is our single-core device, 40-nanometer single core; 21664, which is the part we just announced yesterday, which is our low-cost dual-core device, HSPA+ capable; and our 28155, which is what I’m holding up right now, which is our high-end dual core HSPA+ device. Okay.

            image

            So a lot of activity has been spawned by this — by these turnkeys and, again, this is a capability we’ve put in place in 2012. So it’s hard to measure the progress yet, but I tried to do that with this chart. And you can see, even in the short time that we’ve had the turnkey capability in place, the number of designs have gone up significantly, almost threefold. So significant number of designs that are currently going on, 15 from last year to 44. So you can see the power of the turnkey design because it enables companies — handset companies, to quickly adopt our platforms.

            image

            So talk some more about our expanding cellular SoC share. If you focus on that first row now, those are the phones that I’d like to highlight. Of course, I just mentioned the Samsung GALAXY S II, and I mentioned that there’ll be a series of phones based on Broadcom’s 28155 dual core HSPA+ coming from Samsung. The other phones you see here, GALAXY Chat, GALAXY Music, GALAXY Pocket Plus, are the beginning of a series of phones that are coming out on our single core HSPA+ device. And I’d also like to point to some of these interesting carrier-branded phones, okay? Kind of a blessing our 3G technology in the world’s biggest carriers: T-Mobile, with Concord, this is our first 3G phone in the U.S. market; Vodafone, with the Smart II and Orange. All phones based on Broadcom 3G SoCs, okay? And then all the phones in the bottom row, all in production still, all rolling along with our first 3G SoC, that’s the 21553 that I talked to you about last year. Samsung GALAXY Y is still selling like gangbusters along with a number of these Samsung smartphones in the developing countries, okay? So a lot of progress on 3G. And you can see a number of Chinese vendors on the chart, TCL, ZTE, G’FIVE, Sprocomm. Those are all customers and certainly, there’s other customers in China now working on our turnkey designs.

            imageSo exemplifying that growth we have in the 3G space, this chart shows that from Q3 2011, Q3 2012, we grew our 3G business 500%. Pretty big growth. More important to me though, is the market share that we command. You can see that Strategy Analytics has now recognized that Broadcom has 15% of the 3G/4G Android smartphone SoC ecosystem, okay? 15%. And we haven’t started shipping our 4G LTE solution yet, okay? So again, significant market share gains over the last 24 months in the most important ecosystem for us, which is Android, 15% market share.

            … roughly 15 different customers that make up that 44. And if you talk about when products hit the market, I mean, I think, they’re starting — they’re going to start hitting the market in — over the next 3 months.  …

            … you’re asking, should I worry about the vertical integration at Samsung? And I think anything Samsung does on vertical integration only applies to one segment of their business. I mean, if you look at Samsung’s business, it’s very broad. Everything from entry-level smartphones, midrange 3G smartphones, 4G smartphones, they have a very broad portfolio. In order for them to make money in all these areas, they need chips that are optimized for each one of those segments. And I think I exemplified that with the 28155 for the GALAXY S II Plus. So I think the risk of vertical integration is kind of overblown because you just need to apply the best solution to the particular class of product you’re building. …

            … we see Wi-Fi changing very rapidly and it will change even in the China market. So we don’t see the need to go integrate it. We believe the idea of having a connectivity island and a SoC island with app processor graphics and cellular modem, is the right partitioning for the next couple of years. …

            My question is, I guess, is do you think your timing — it seems like now, you’ll really going to hit the market, 2014 is when you get any significant revenues. Is that — are you going to really miss out on the profit pools while you’re fighting it out at the — with MediaTek at the midrange and low-end, meanwhile your good buddies in Southern California capture all this profit and then use that to attack you elsewhere?

            … if you look at the 3G space, it’s a lot more than just China. Right? I mean, I just showed you all the different phones from Samsung that are still coming out on 3G. So I do not believe that there’s not money to be made in 3G. Okay? Having said that, a big investment in 4G, absolutely recognize the importance. We’re moving very fast we have a big R&D investment in 4G. We think we’re going to get there in time to hit the sweet spot of the 4G market. And 4G will last for many years to come.

            Can you talk a little bit about your position on the RF side of the equation? You’re building full turnkey solutions now, there’s a lot of complexity on the RF side of the handset and whether you have the applicable tool kit to do more integration on that side.

            That’s an easy question because we have one of the world’s most capable RF teams in Broadcom. Broadcom pioneered CMOS RF, implementing RF in CMOS. And you can — as witnessed by our patent portfolio, which is second to none. We have a very capable team. The team has built RF chips for all of our devices. And I mentioned earlier that we sell more wireless chips with integrated RF than any company on the planet. So I’m very confident in the capabilities. They are doing the RF for all of our complete platforms that I showed you. So whether it’s 21553, 21654, 21664, 28155, those are complemented with Broadcom RF internal, 100% Broadcom IP. And again over the course of time, we can integrate all these IP into a single chip. That’s the reason these big OEMs, these big handset OEMs want to work with Broadcom because they know eventually all these connectivity pieces will integrate into a single connectivity island, and same thing with the baseband island.

            As it relates to the wins that you had earlier this year with the single-core platform like let’s say for example going into Samsung, I think the rough dollar content is about $10 to $12. Because you’re not only supplying the baseband, you’re supplying the power management, RF, integrated connectivity. And I think you’ve told us before that as the team moves to the dual-core platform, very similar to the GALAXY S II plus announcement today, that it’s roughly about a $7 to $9 increase in dollar content. So first question is, is that still the case?

            I think you’re asking is can our dual core — our 28155, for example, which is our high-end dual core, okay. As I mentioned, this is part that has integrated ISP. That’s the same ISP engine that Nokia used for their 41-megapixel camera that’s on board our 28155 device. We also have very high-end graphics on that device. The graphics on Broadcom 28155 rivals lot of the 4G SOCs that are out there. In fact, it surpasses a number of them, okay. So when you compare the price of that to the single core, absolutely the price delta would be in the range that you mentioned, okay, the ASP uplift.

            And then the second question is, as a team rolls out the turnkey solution, my sense is that there is still a lot of customization that has to be done on the software and the firmware set for your customers.

            … the idea behind the turnkey is not to have a lot of customization. The way that a company — a handset company could take advantage of our turnkey is to perhaps change the color, perhaps change the idea a little bit, but not change it. And that’s really what’s important. So there isn’t a lot of customization needed. We do all of the Android integration, all the tests. And we make sure all of the Android certification tests pass when we deliver that turnkey design. So if somebody wanted to put their own skin on top of it, we could do that, but would really prefer when it comes to the turnkey that they don’t touch anything, that they use this as their experience phone, if you will.

            12 months from now, most of the growth of the smartphone market is coming from emerging markets, much lower-end mix, can you help me understand how that impacts the content, the pricing, the competitive landscape, the profitability? Is that China market really going to be it’s a Broadcom turnkey solution or it’s a MediaTek turnkey solution and whoever has that turnkey solution wins it all?

            … first of all, every handset company, any smartphone handset company is — are spinning their 3G offerings today. So in order to — for them to take advantage of the growth in 3G, they’re all having to reduce their costs. They are all having to move to more integrated solutions. So I don’t see it as just a China play, okay. So I see it’s a worldwide event. And that certainly in China, I think the turnkey does help significantly because if you look at Tier 2s and Tier 3s in China, they don’t have as much engineering resource. So I do think it’s a big swing, an advantage to have a full turnkey and be able to supply this multi-sourcing capability to those Chinese customers. But again, the 3G turnover is going to happen across the world, not just in China.

            SUPPLEMENTAL CONTENT:

            image
            Source: Broadcom 2012 Analyst Day Supplemental Content, Dec 6, 2012

            BCM28145/28155
            Dual Core 720p/1080p HSPA+ Baseband Processors [Broadcom product page, Feb 24, 2012]

            The BCM28145/BCM28155 HSPA+ baseband processors are highly integrated high-performance dual-core CPUs implemented in a cost effective 40 nm LP process that squarely targets today’s power-conscious mobile platforms. These devices, combined with their complete reference platform, provide system designers with everything needed to bring next-generation mobile devices to market while also providing an extremely flexible platform for application, video, and multimedia developers.
            BCM28145/BCM28155 devices integrate high performance dual-core ARM® Cortex-A9 processors, each with a NEON floating-point SIMD processing engine. A powerful 2D/3D graphics engine, the latest audio codecs, and advanced video and image processing capabilities are all delivered by the integrated Broadcom VideoCore-IV® technology.
            Features
            • Advanced 2G/3G modem with support for 21/5.8 Mbps HSPA+ and Class 33 EDGE
            • Advanced applications processing subsystem
              – Dual ARM cortex-A9 processors with NEON extensions, up to 1.2 GHz per core
              VideoCore-IV multimedia and imaging processor
              – Support for 20-Mpixel imaging, 720p (28145) /1080p (28155) video capture and playback, and accelerated 2D/3D graphics
              – Full integration of audio subsystem
            • High performance memory and peripheral interfaces
              400 MHz LPDDR2 memory interface (single-28145, dual-28155)
              – High-speed e.MMC/SD/SDIO and NAND interfaces
              – CPI and MIPI® CSI-2 and MIPI DPI-2, DBI-B and DBI-C DSI serial camera and display interfaces

            image

            image
            Source: Broadcom 2012 Analyst Day Supplemental Content, Dec 6, 2012

            See also:
            Broadcom Introduces New Platforms Optimized for Android ‘Ice Cream Sandwich’ Smartphones [Broadcom press release, Feb 27, 2012]

            Single and Dual Core Processors with VideoCore® Technology Provide Premium Android Experience
            Broadcom’s new family of 3G platforms will enable handset OEMs to affordably deliver a premium Android 4.0 user experience across multiple smartphone product tiers. The Broadcom® BCM21654G features a 1 GHz ARM Cortex A9 processor, an integrated 7.2/5.8 Mbps HSPA modem and low-power VGA video support. The BCM28145 and BCM28155 include dual ARM Cortex A9 cores up to 1.3 GHz, 21/5.8 Mbps HSPA+ modems and HD 720p and 1080p, video respectively. All three chips were developed in an advanced, low power 40 nanometer process technology and are complemented by radio frequency (RF), power management unit (PMU) and an advanced connectivity suite for a complete system solution.

            All three platforms are sampling to customers and expected to be in production in the second half of 2012.

            Optimized for Superior Android 4.0 ICS Smartphones:
            • Broadcom’s industry-leading VideoCore technology offers a ‘third processing core’ to offload the application processor, enriching the Ice Cream Sandwich user experience with the industry’s lowest power HD playback and camcorder capabilities up to 1080p.
            • Low latency memory and bus architecture boosts overall system performance for a highly responsive user interface.
            • Highest quality imaging is provided by Broadcom’s latest Image Signal Processor (ISP) that supports cameras up to 42 megapixels, with very low light capabilities and wide dynamic range for the sharpest images.

            From Broadcom Corp. – Analyst/Investor Day, December 14, 2011

            Robert Americo Rango, Executive Vice President and General Manager of Broadcom’s Mobile and Wireless Group:

            Broadcom has been investing for many years, actually, since 2004 when we did an acquisition, in graphics. In fact, we call it VideoCore, and that, it’s maybe a misnomer, it should be called MediaCore because this dedicated IP block does graphics, it does image signal processing. When your image comes off the camera, you need to post-process it, that’s called image signal processing, okay? And it does video. So you can’t do those functions well with standard application processors. You need to do that with dedicated hardware, dedicated customized hardware, and that’s called VideoCore.

            image
            Source: Broadcom 2011 Analyst Day, Dec 14, 2011

            Now let’s see how we do versus the industry’s competition. One of the most recognized benchmarks that’s out there is called Taiji. It’s the OpenGL ES 2.0 benchmark most people will recognize as benchmark, as a very important benchmark. And what you see here is Broadcom versus Qualcomm versus TI. In fact, this TI chip, I think, is running the latest version of some of Ice Cream Sandwich phones that are out there. And you can see that Broadcom’s VideoCore is able to render over 50 frames a second while some of the competition can barely get to 30. And in fact, just another data point comparing Broadcom VideoCore 4, all this — again, this is a fair comparison because it’s comparing what’s in production to what’s in production. Our VideoCore 4 is in production in many different Nokia phones, smartphones. And Nokia’s multimedia experience is widely considered to be one of the best. Now comparing VideoCore 4, which again is in production, to one of Imagination’s latest IP cores, we’re 1/2 the power and 2x the performance.

            So some of our competitors don’t have this IP. They go often license it from a company like Imagination. It sounds good on paper until you have a problem. And a customer calls you up and says, “Hey, this game, this Modern Warfare 3 won’t run,” and that company has to go call Imagination. Okay, Broadcom doesn’t have to do that. We’re a one-stop shop. All this IP that I’m talking about is owned and within Broadcom so I can walk down the hall, knock on the engineer’s door and say, “What were you thinking when you designed this?” and I usually get an answer very quickly. And I think that’s the respect we have with our customers, okay? We have the IP in-house. Okay, so the industry’s best graphics performance and power consumption. …

            Broadcom Announces 1080p Multimedia Processor with Breakthrough Mobile Power-Performance [Broadcom press release, Dec 15, 2009]

            New Broadcom® BCM2763 VideoCore® IV Processor Features 1080p Video, 20 Megapixel Photos and 1 Gigapixel Graphics in an Ultra-Low Power 40 Nanometer Design
            Broadcom Corporation (Nasdaq: BRCM), a global leader in semiconductors for wired and wireless communications, today announced its next generation multimedia processor that delivers industry leading performance and lower power in the top multimedia categories for mobile devices. Using 40 nanometer (40nm) CMOS process technology, the new Broadcom® BCM2763 VideoCore® IV multimedia processor provides even higher integration, smaller footprint size and lower power consumption than 65nm designs.
            With the higher integration and significant power savings from 40nm CMOS process technology, the BCM2763multimedia processor features the most advanced mobile high definition (HD) camcorder and video playback, up to 20 megapixel digital camera and photo image processing, and 1 gigapixel 2D/3D graphics rendering for a world-class gaming experience. HD video, 3D games and high resolution 20 megapixel pictures can be displayed at top quality on full-sized HD televisions and monitors using an on-chip industry standard HDMI interface. Additionally, the BCM2763‘s highly integrated architecture reduces bill-of-materials (BOM) cost to help drive sophisticated multimedia features into more affordable handsets.
            Highlights/Key Facts:
            The breadth and quality of Internet multimedia content is rapidlyimproving, with sites such as YouTube now supporting full HD 1080p video sharing. Consumers are also increasingly using cell phones as their primary digital camera and camcorder, which is driving demand for higher resolution and more sophisticated image processing which is currently only available on advanced standalone camcorders and cameras. Additionally, newer graphics-oriented user interfaces and mobile games now require enhanced graphics capabilities.
            The new Broadcom BCM2763 VideoCore IV multimedia processor enables best-in-class performance in the following areas:
            • Full HD 1080p camcorder capabilities in a cell phone with significantly improved quality over current generation handsets (which generally have VGA or lower resolution camcorders). 
            • Up to 20 megapixel digital camera with advanced features such as multiple shots per second, image stabilization, face and smile detection and panorama mode.
            • The ability to render mobile games natively at up to 1080p resolution, which in combination with an on-board HDMI output, allows a console-quality gaming experience on large screen HDTVs.
            In addition to providing these capabilities on new handsets, the BCM2763 has improved power savings using a 40nm process without draining the battery or significantly reducing talk time. Additional ultra-low power consumption features include:
            • 20% to 50% power reduction in comparison to the prior generation Videocore III multimedia processor.
            • 4 to 6 hours of 1080p video recording and 8 to 10 hours of mobile playback, with up to 16 hours of full HD playback over HDMI given sufficient handset storage.
            • Only 490 mW of chip power is required for 1080p camcorder H.264 High Profile encoding and only 160 mW for 1080p playback.
            • Only 160 mW of power is required for mobile game graphics processing, supporting up to 1 gigapixel per second fill rates and improves graphics performance by a factor of 4x to 6x in comparison to the prior generation Videocore III multimedia processor.
            The BCM2763 processor integrates the key functionality and components needed to drive advanced multimedia capabilities in new handsets. As a result of this high integration, the BCM2763 enables a lower overall BOM cost, enabling manufacturers to pass these lower costs on and introduce advanced features to lower tier phones than previously possible.
            • The BCM2763 integrates the functions of eight chips including GPU and graphics memory, image signal processing (ISP) and ISP memory, video processing and video memory, HDMI and USB 2.0. 128MB of LPDDR2 graphics memory is stacked in a single package. 
            • The 40nm process enables reduced power, improved performance and reduced handset board space.
            Benefiting from an existing VideoCore software code base and legacy architecture, manufacturers of phones and other consumer electronics devices can easily add these new VideoCore IV multimedia features to their products, allowing faster time-to-market.
            The BCM2763 is currently sampling to early access customers (pricing available upon request). Handsets utilizing this new 40nm VideoCore IV multimedia processor technology are expected to reach the market in 2011.
            Supporting Quotes:
            Mark Casey, Vice President & General Manager, Broadcom’s Mobile Multimedia line of business.
            VideoCore IV is setting new benchmarks for performance, power consumption and affordability and is poised to drive advanced multimedia capabilities into new tiers of handsets. Supported by our comprehensive line of complementary cellular and connectivity solutions, our multimedia processor technology is the right choice for next generation mobile designs.”
            Subscribe to RSS Feed: Broadcom Mobile Platforms Group
            About Broadcom
            Broadcom Corporation is a major technology innovator and global leader in semiconductors for wired and wireless communications. Broadcom products enable the delivery of voice, video, data and multimedia to and throughout the home, the office and the mobile environment. We provide the industry’s broadest portfolio of state-of-the-art system-on-a-chip and software solutions to manufacturers of computing and networking equipment, digital entertainment and broadband access products, and mobile devices. These solutions support our core mission: Connecting everything®.
            Broadcom is one of the world’s largest fabless semiconductor companies, with 2008 revenue of $4.66 billion, and holds over 3,650 U.S. and over 1,450 foreign patents, more than 7,750 additional pending patent applications, and one of the broadest intellectual property portfolios addressing both wired and wireless transmission of voice, video, data and multimedia.
            A FORTUNE 500® company, Broadcom is headquartered in Irvine, Calif., and has offices and research facilities in North America, Asia and Europe. Broadcom may be contacted at +1.949.926.5000 or at www.broadcom.com.

            Linux client market share gains outside the Android? Instead of gains will it shrink to 5% in the next 3 years?

            The Linux Foudation quite proundly referred to ReadWriteMobile: The ‘Year of the Linux Desktop’? That’s So 2012 [Feb 3, 2013]

            For those Linux enthusiasts still pining for the mythical “Year of the Linux Desktop,” the wait is over. In fact, it already happened. In 2012 Microsoft’s share of computing devices fell to 20% from a high of 97% as recently as 2000, as a Goldman Sachs report reveals [”Clash of the titans” downloadable from here, dated Dec 7, 2012]. While Apple has taken a big chunk of Microsoft’s Windows lead, it’s actually Google that plays Robin Hood in the operating system market, now claiming 42% of all computing devices with its free “Linux desktop” OS, Android.

            Read more at ReadWriteMobile.

            from which I will include here the following chart:

            image

            for which Goldman Sachs commented as:

            The compute landscape has undergone a dramatic transformation over the last decade with consumers responsible for the massive market realignment. While PCs were the primary internet connected device in 2000 (139mn shipped that year), today they represent just 29% of all internet connected devices (1.2bn devices to ship in 2012), while smartphones and tablets comprise 66% of the total. Further, although Microsoft was the leading OS provider for compute devices in 2000 at 97% share, today the consumer compute market (1.07bn devices) is led by Android at 42% share, followed by Apple at 24%, Microsoft at 20% and other vendors at 14%.

            Note from Goldman Sachs: Microsoft has gone from 97 percent share of compute market to 20 percent [The Seattke Times Dec 7, 2012]:
            I asked Goldman Sachs about what happened in the 2004-2005 time frame — as seen in the above chart — that made Apple’s vendor share jump, Microsoft’s share plummet and the “other” category to go from zero to 29 percent. Goldman Sachs replied that it has to do with more mainstream adoption of non-PC consumer computing devices but declined to elaborate beyond that.

            Microsoft was put into the “Challenged” category (along with Google BTW) by Golmann Sachs noting that:

            … we estimate that Microsoft would have to sell roughly 5 Windows Phones or roughly two Windows 8 RT tablets to offset the loss of one traditional Windows PC sale, which we estimate has an overall blended selling price of $60 for business and consumer.

            but a kind of more positive than negative outlook was predicted for the company by

            … we expect the recent launches of Windows Phone 8 and Windows 8 tablets to help the company reclaim some share in coming years.

            Apple, at the same time, was into the “Beneficiaries” category (along with Facebook and Samsung BTW) by Goldmann Sachs for the reason of:

            … we believe loyalty to the company’s ecosystem is only increasing and this should translate into continued growth going forward. In particular, we see the potential for Apple to capture additional growth as existing iOS users move to multiple device ownership and as the company penetrates emerging regions with new devices such as the iPad miniAAPL and lower priced iPhones. As a result, we believe Apple’s market share in phones has room to rise much further, and that its dominant tablet market share appears to be more resilient than most expect. We expect these factors to continue to drive the stock higher.

            This is, however, not going to happen if taking a judgement from the stock market reflections since then with 13.7% drop in Apple’ share price vs. that of Dec 7 (the report publishing date) and a whopping 34.5% drop vs. its last peak on Sept 19, 2012 (at $702.1):image 
            source: Yahoo! Finance

            Why Did $AAPL Stock Go Down After Beating Earnings Estimates And $AMZN Stock Go Up After Missing? [Techcrunch, Jan 29, 2013] had the following explanation:

            The moves in different directions for Amazon and Apple have been about expectations and guidance. Wall Street has higher expectations for Apple and ‘different’ expectations for Amazon. Wall Street wants Apple’s ‘gross margins’ to grow. They don’t expect Amazon’s ‘profits’ to grow. It sounds silly, but if Apple has reported lower profits and a huge gross margin increase the stock might have shot up. If Amazon had reported record profits today on decreasing margins, Wall Street might have panicked.

            Wall Street has stopped caring about Apple’s profits today. They were displeased with forward guidance. Growth rates have slowed measurably at Apple which is understandable for a company of its’ size. Wall Street is worried that growth is slowing and competition from Google and Samsung are taking a toll. Apple has given Wall Street so many wonderful surprises so magic has become the norm. Now that Apple is boring, they have run for the hills.

            That moode didn’t change even after Apple CEO Tim Cook was trying to assure investors at the Goldman Sachs Internet and Technology Conference on Feb 12, just a week ago. Read the Wrap up: Apple CEO Tim Cook’s Goldman Sachs Conference keynote [AppleInsider, Feb 13, 2013] from which I will quote only the following excerpts as the most notable ones:

            Cook went on to say that introducing a “budget device” was not something Apple would be comfortable with, and instead pointed to the strategy seen with the iPhone lineup. In that model, new variants like the iPhone 5 are sold at the highest price while preceding versions like the iPhone 4S and iPhone 4 are sold at discounted rates.

            According to Cook, the iPad is “the poster child of the post-PC revolution” and has driving the push to tablets since its introduction in 2010.

            While Apple’s tablet has been the downfall for a number of PC alternatives, such as netbooks, the device is also said to be hurting the company’s own Mac computer sales. During the last quarter of 2012, Mac sales dropped 22 percent year-to-year on low demand and supply constraints. Apple’s iPad business, however, grew by nearly 50 percent over the same period.

            The cannibalization question raises its head a lot,” Cook said. “The truth is: we don’t really think about it that much. Our basic belief is: if we don’t cannibalize, someone else will. In the case of iPad particularly, I would argue that the Windows PC market is huge and there’s a lot more there to cannibalize than there is of Mac, or of iPad.”

            Cook noted that burgeoning markets like China and Brazil will be major players in future growth, and the company is banking on its ability to draw customers in to the Apple ecosystem with “halo products.”

            “Through the years, we’ve found a very clear correlation between people getting in and buying their first Apple product and some percentage of them buying other Apple products.”

            At the same conference Microsoft, similarly to Apple, declared a ‘no change’ strategy despite of the obvious failure of its Windows 8 and Windows Phone efforts so far. In the No “Plan B” for Microsoft’s mobile ambitions: CFO [Reuters, Feb 13, 2013] report one can read:

            “We’re very focused on continuing the success we have with PCs and taking that to tablets and phones,” Microsoft’s Chief Financial Officer Peter Klein said

            “It’s less ‘Plan B’ than how you execute on the current plan,” said Klein. “We aim to evolve this generation of Windows to make sure we have the right set of experiences at the right price points for all customers.”

            Gartner estimates that Microsoft sold fewer than 900,000 Surface tablets in the fourth quarter, which is a fraction of the 23 million iPads sold by Apple. Microsoft has not released its own figures but has not disputed Gartner’s.

            Windows phones now account for 3 percent of the global smartphone market, Gartner says, which is almost double their share a year ago but way behind Google’s Android with 70 percent and Apple with 21 percent.

            To grab more share, Klein said Microsoft was working with hardware makers to make sure Windows software is available on devices ranging from phones to tablets to larger all-in-one PCs.

            “It’s probably more nuanced than just you lower prices or raise prices,” said Klein. “It’s less a Plan B and more, how do you tweak your plan, how do you bring these things to market to make sure you have the right offerings at the right price points?”

            So the last 3 months went against Goldmann Sachs’ November 2012 predictions. The only question now remains whether those 3 months brought any changes in the non-Apple and non-Microsoft territories which would question other parts of the Goldmann Sachs’ forecast as well?

            There were no negative changes just strengthening of the already established dominant position against both Apple and Microsoft:

            1. Mainstream tablets 7-inch at US$199, say Taiwan makes [DIGITIMES, Feb 19, 2013]

            Google’s Nexus 7 and Amazon’s Kindle Fire HD have reshuffled the global tablet market and consequently 7-inch with a price cap of US$199 has become the mainstream standard for tablets, according to Taiwan-based supply chain makers.

            Cumulative sales of the Nexus 7 have reached six million and are expected to reach eight million units before the expected launch of the second-generation model in June 2013, the sources said. The Nexus 7 and Kindle Fire have driven vendors to develop inexpensive 7-inch tablet models instead of 10-inch ones, the sources indicated.

            In order to be as reach US$199, 7-inch tablets are equipped with basic required functions such as access to the Internet and watching video, the sources noted. While Google, Amazon, Samsung Electronics and Asustek Computer are competitive at US$199 for 7-inch tablets, white-box or other vendors need to launch 7-inch models at lower prices such as US$149, the sources said. Fox example, China-based graphics card vendor Galaxy Microsystems has cooperated with Nvidia to launch a 7-inch tablet in the China market at CNY999 (US$160).

            2. Digitimes Research: 68.6% of touch panels shipped in 4Q12 from the Greater China area [DIGITIMES, Feb 19, 2013] meaning that in supply chain terms there is a growing concentration on suppliers not only from Greater China but especially from mainland China:

            Taiwan- and China-based touch panel makers held a 68.6% global market share for touch panels shipped during the fourth quarter of 2012, according to Digitimes Research.

            China-based panel makers saw the biggest share in the handset touch panel market during the fourth quarter due to smartphone demand in China, while Taiwan-based panel makers only held a 27.5% share in the market largely due to lower-than-expected sales of the iPhone 5, said Digitimes Research.

            In terms of touch panels used in tablets, Taiwan-based panel makers saw a drop in their global market share to 59.9% during the period largely due to the iPad mini using DITO thin-film type touch screens provided from Japan-based touch panel makers. China-based panel makers meanwhile held 18.6% in the market due to demand for white-box tablets in China, added Digitimes Research.

            Meanwhile, Digitimes Research found that Taiwan-based TPK provided 70.9% of all touch panels used in notebook applications in 2012.

            3. Touch Panel Market Projected for a 34% Growth in 2013 from 2012 [Displaybank, sent in a newsletter form, Feb 19, 2013] published to promote Touch Panel Market Forecast and Cost/Issue/Industry Analysis for 2013 [Jan 30, 2013]

            The touch panel market is growing rapidly due to the increasing sale of smartphones and tablet PCs. The touch panel market size in 2012 was 1.3 billion units, a 39.4% growth over 2011. The market is projected to grow 34% in 2013, growing to more than 1.8 billion units.

            Touch Panel Market Forecast (Unit: Million)image(Source: Displaybank, “Touch Panel Market Forecast and Cost/Issue/Industry Analysis for 2013”)

            Smartphone and tablet PCs, major applications that use touch panels, are expected to continue to grow at a high rate. In addition, most IT devices that use display panels have either switched to or will start using the touch panels soon. Therefore the touch panel market will show a double digit growth annually until 2016, by unit. The market size is expected to reach more than 2.75 billion units by 2016.
            With the explosion in the sale of smartphones and tablet PCs during the past few years, our lives have changed dramatically. They are now common place in our lives, and have a huge influence in the IT industry in general. With the introduction of Windows 8 OS in October 2012, upsizing of touch panels has begun. The impact of this event on the immediate growth of the touch panel market and the long-term effect is so immense that it cannot be estimated at the moment.
            The financial crisis that started in 2008 left much of the IT industry hobbling worldwide. But only the touch panel market is enjoying a boom. Many new players are pouring into the industry, and those on the sidelines are waiting for the opportune moment to enter. As more players enter the competitive landscape, touch panel prices are falling rapidly. In addition, to gain competitiveness and to differentiate itself in the market has led players to develop and improve structure, technique and process, and seek out new materials.
            The introduction of Windows 8 is leading the increase in touch capable Notebook and AIO PCs. It is still too early for the touch interface to completely displace keyboard and mouse, but the touch functionality does add convenience to some operations. We are sure to see an increase in specialized apps that capitalize on such functions. Therefore, touch functions will complement traditional input methods. As the technology is still in early implementation stages, it is used only in select high-end Ultrabooks. But it’s only a matter of time before touch functions make its way to mid-end products.
            Forecasting the future of touch panel industry is not only difficult, but also outright confusing in the current landscape due to the rapid expansion; the increase in number of devices that use touch panels; more players in the market; and rapid development of new products and new processes. In serving clients, Displaybank has released “Touch Panel Market Forecast and Cost/Issue/Industry Analysis for 2013” to provide industry outlook by application, product, and capacitive touch structure. The report also includes the supply chain of set makers and touch panel manufacturers; and cost analysis of major capacitive touch panels by size and type. This report will serve as a guide to bring clarity and understanding of rapidly transforming touch panel industry.

            4. Cheaper components could allow 7-inch tablets priced below US$150, says TrendForce [DIGITIMES, Dec 14, 2012]

            Viewing that Google and Amazon have launched 7-inch tablets at US$199, other vendors can offer 7-inch tablets at below US$150 only by adopting cheaper components, according to Taiwan-based TrendForce.
            As panels and touch modules together account for 35-40% of the total material costs of a 7-inch tablet, replacing the commonly used 7-inch FFS panels with 7-inch TN LCD panels accompanied by additional wide-view angle compensation could save over 50% in panel costs, TrendForce indicated. In addition, replacing a G/G (glass/glass) or OGS (one glass solution) touch module with a G/F/F (glass/film/film) one, although inferior in terms of transmittance and touch sensitivity, can cut costs by about 70%. Thus, the adoption of a TN LCD panel and a G/F/F touch module for a 7-inch tablet could reduce material costs by about US$25, TrendForce said.
            Given that the type of DRAM affects standby time only as far as user experience is concerned, costs can be reduced through replacing 1GB mobile DRAM priced at about US$10 with 1GB commodity DRAM priced at about US$3.50, TrendForce noted. As for NAND flash, 8GB and 4GB eMMC cost US$6 and US$4, respectively, and therefore the latter should be the preferred choice to save costs.
            For CPUs, China-based IC design houses, including Allwinner Technology, Fuzhou Rockchip Electronics, Ingenic Semiconductor, Amlogic and Nufront Software Technology (Beijing), provide 40-55nm-based processors at about US$12 per chip which could be alternatives to chips used in high-end tablets which cost about US$24, TrendForce indicated.
            While the sales performance of tablets below US$150 is yet to be seen, such cheap models are expected to put pressure upon China-based white-box vendors, and in turn intensify price competition in the tablet market in 2013, TrendForce commented.

            5. Strong demand from non-iPad tablet sector to boost short-term performance of IC vendors [DIGITIMES, Jan 28, 2013]

            Demand for IC parts from the tablet industry in China has been stronger than expected in the first quarter of 2013, which could help boost the short-term performance of IC design houses, while offsetting the impact of slow demand from China’s smartphone sector caused by high inventory levels, according to industry sources.

            Entry-level tablets meet market demand in terms of pricing and functionality, particularly in China, said the sources, adding that demand for entry-level tablets in China and other emerging markets could top 4-5 million a month in 2013 compared to 2-3 million in the second half of 2012.

            MediaTek, while seeing demand for its handset solutions from China decrease in the first quarter of 2013, has also enjoyed emerging IC demand from the tablet sector, with plans to release chipset solutions for the segment in the second quarter of the year, the source revealed.

            Since the growth momentum for tablets in 2013 is expected to come from non-iPad vendors in China and other emerging markets, Taiwan-based suppliers of LCD driver, analog and touch-controller ICs as well as those of Wi-Fi, audio and Bluetooth chips will benefit from the trend thanks to cost advantages and strong business ties in these markets, the sources commented.

            6. Allwinner A31 SoC is here with products and the A20 SoC, its A10 pin-compatible dual-core is coming in February 2013 [Dec 10, 2012] and The upcoming Chinese tablet and device invasion lead by the Allwinner SoCs [Dec 4, 2012], both from my own separated trend tracking site devoted to the ‘Allwinner phenomenon’ coming from mainland China and having the potential of drastically altering the 2013 device market (not taken into account at all by Goldmann Sachs report):

            Allwinner Tech tell us about the new features of their A31 product targeted for tablets, smartphones and smart TVs. Based on quadcore ARM Cortex-A7.

            that already resulted in huge growth of the mainland China Android tablet manufacturing in 2012, as well shown by this chart:which has already fundamentally affected the worldwide tablet market in 2012:

            7. What Allwinner started in 2012 with the single core A10/A13 SoCs and which was further boosted by the quad-core Cortex-A7 A31 SoC on Dec 5, 2012 with the release of Onda V972 and V812 tablets (for US$ 208 and US$144 respectively) is an incredible strategic inflection point for the whole ICT industry, which ALL SoC vendors should compete with. Rockchip shown as the #2 on the mainland China market just followed the suite:

            Rockchip’s new RK3188 chipset: quadcore ARM Cortex-A9 and quadcore ARM Mali-400, 28nm HKMG process. Plus an update on Rockchip’s involvement with products for the education market.

            8. Now the most ambitious external challenger Marvell Announces Industry’s Most Advanced Single-chip Quad-core World Phone Processor to Power High-performance, Smartphones and Tablets with Worldwide Automatic Roaming on 3G Networks [press release, Feb 19, 2013] which is going to add to the competition the integrated on the SoC 3.5G modems:

            Marvell’s PXA1088 is the industry’s most advanced single-chip solution to feature a quad-core processor with support for 3G field-proven cellular modems including High Speed Packet Access Plus (HSPA+), Time division High Speed Packet Access Plus (TD-HSPA+) and Enhanced Data for GSM Environment (EDGE).

            The Marvell PXA1088 solution incorporates the performance of a quad-core ARM Cortex-A7 with Marvell’s mature and proven WCDMA and TD-SCDMA modem technology to provide a low-cost [elsewhere stated by Marvell that this SoC is for the phones space in the “$100 range”] 3G platform for both smartphones and tablets. The advanced application processor technology of the PXA1088 enables a breakthrough end user experience for multimedia and gaming applications with universal connectivity. Marvell’s complete mobile platform solution includes the Avastar® 88W8777 WLAN + Bluetooth 4.0 + FM single-chip SoC and the L2000 GNSS Hybrid Location Processor, and an integrated power management and audio codec IC.

            Marvell’s PXA1088 is backward pin-to-pin compatible with its dual-core single-chip Unified 3G Platform, the PXA988/PXA986, enabling device partners to upgrade their next-generation mobile devices to quad-core without  additional design cost.

            Currently, the PXA1088 platform is sampling with leading global customers. Products based on this platform are expected to be commercially available in 2013 [elsewhere stated by Marvell thatWe’ll start seeing PXA1088-based phones in the first half of this year”].

            9. Yesterday we had two significant advancements described in the Ubuntu and HTC in lockstep [Feb 19, 2013] post here. Especially the Ubuntu related part is remarkable as first time we had a new platform which can span the whole spectrum of devices: from smartphones, to tablets, to desktops, to TVs – actually all from a smartphone capability expanded via docking and other means to a screen, to a TV, a keyboard, and a mouse. This is certainly an extreme case of the new Ubuntu capability which can have implementation in different devices as well. Even in that case, however, the source and binary codes could be the same. This is also cleverly using the already well established Android drivers and Android Board Support Package (BSP) infrastructure of the most cost-efficient ARM SoC vendors. Note that this is furthest from any “license violation” attacks as the original OHA terms and conditions are stating the Apache V2 licencing which:

            The Apache license allows manufacturers and mobile operators to innovate using the platform without the requirement to contribute those innovations back to the open source community. Because these innovations and differentiated features can be kept proprietary … Because the Apache license does not have a copyleft clause, industry players can add proprietary functionality to their products based on Android without needing to contribute anything back to the platform. As the entire platform is open, companies can remove functionality if they choose.

            10. Finally today came Google Glass: showing how radically the user experience might be changing in the next 2-3 years:

            Want to see how Glass actually feels? It’s surprisingly simple. Say “take a picture” to take a picture. Record what you see, hands free. Even share what you see, live. Directions are right in front of you. Speak to send a message, or translate your voice. Get the notifications that matter most. Ask whatever’s on your mind and get answers without having to ask. All video footage captured through Glass. Welcome to a world through Glass. See more athttp://www.google.com/glass/start “New Lipstick” by The Kissaway Trail on Google Play -http://goo.gl/v4dUf

            More information: Google Glass – Home [Feb 20, 2013] where it is also possible to grasp its wonderful, non-intrusive seign like this:

            image

            Conclusion: There are even more uncalculated by Goldmann and Sachs advancements in the non-Apple and non-Microsoft spaces than in Apple and Microsoft ones. Just in these 3 months! Therefore it would be ridiculous if Goldmann and Sachs’ “consumer compute platform share” forecast as shown in the chart above will be fullfilled!

            Lumia 920 vs. iPhone 5 (and vs. Android, Galaxy S3, HTC One X+)

            András Velvárt suggested to me an excellent customer review available on Amazon of Lumia 920 vs. iPhone 5. It is really amazing that Lumia 920 is winning against iPhone 5 in so many respects. I checked on the web and there is nothing surprising about that as according to a widely watched/read technical media source iPhone 5 vs HTC One X+ vs Lumia 920 (Gadget Show) [thegadgetshow YouTube channel, Dec 3, 2012]:

            Giving out verdicts on three of this Christmas’ hottest smartphones:

            – iPhone 5: image

            [4:31] The iPhone 5 gets just 3 Gs. No innovation. The battery life is terrible. It is still expensive and the build quality is poor. [4:40]

            – HTC One X+: image nearly 5
            Read also: HTC One X+ [review] [the Gadget Show, Nov 9, 2012]

            [4:40] The HTC wins 4 Gs, nearly 5. Its processor is super powerful, and the only thing that holds it back it’s ugly and it is not 4G ready. [4:50]

            – Nokia Lumia 920: image nearly 5

            [4:51] The Nokia also snaps 4 Gs, nearly 5. The user experience and the wireless charger are ace, but it lacks apps and too heavy [5:01]

            But, according to the reviewer on Amazon, Lumia 920 loses in the most heavy way in terms of “Current Fashion Index”with ‘0’ against ‘11’. This is even more amazing considering the fact that design is one of the core competencies of Nokia and the man in charge of that, Marko Ahtisaari, is a globally recognised leader in that, and he is as well an executive member of the Nokia Leadership Team. You can assess his talent and expertise in that from my yesterday’s blog titled Marko Ahtisaari from Nokia and Steven Guggenheimer from Microsoft on the Internet of Things day of LeWeb Paris’12 [Nov 6, 2012].

            Here I would add, before the otherwise excellent customer review (reformatted for a better appearance), his very recent video interview:
            Nokia Lumia 920 – Marko Ahtisaari, Nokia Design Team [nokia YouTube channel, Nov 22, 2012]

            Marko Ahtisaari, Head of Nokia Design, talks about the design approach behind Nokia’s latest flagship phone.

            Customer Review on Amazon [Nov 14, 2012] 5.0 out of 5 stars

            By b. Weiss This review is from: Nokia Lumia 920 4G Windows Phone, Black (AT&T) (Wireless Phone)
            Having used the phone for a while now, I’d like to provide a more objective assessment. I give ratings below first, followed by detailed explanations. The rating numbers are on a scale of 10. A score of “10” means it is not only the best but also has no apparent need to improve, and a score less than “10” just means there is room to improve but does not necessarily mean another product is better.
            # comment
            RATINGS Lumia 920
            vs. iPhone 5
            1.
            Call Quality
            10
            8
            Uncompromising call quality from Nokia, a true phone company
             
            Instant Messaging
            10
            10
            Big improvement over WP7; group messaging and MMS
            2.
            E-Mail
            9
            7
            WP8 has the best enterprise-ready e-mail client
            3.
            Skype and VoIP calls
            9
            7
            International VoIP calls a reality with on WP8
            4.
            Contact Management
            9
            5
            WP8’s multi-contact aggregator and integrator the best
             
            Entertainment
            10
            10
            Too much already, what more could you want
             
            Social Networking
            9
            8
            Facebook integration is an edge
             
            Web browsing
            9
            8
            IE10 is outstanding
             
            Shopping
            7
            9
            Comes from Apple’s apps edge
            5.
            Productivity
            6
            3
            Not there yet, but at least WP8 can do some work
            6.
            Navigation
            9
            6
            Apple’s first Maps is actually impressive, but see discussions
            7.
            Screen
            10
            8
            Lumia 920 has the best looking screen consumers have ever seen
            8.
            Camera
            9
            7
            In its own league
            9.
            Build quality
            10
            8
            You might have trouble to say goodbye to Lumia 920 two years later
            10.
            Thermal performance
            8
            8
            Competitive
            10.
            Battery life
            5
            5
            All need improvement badly in this area
            11.
            OS apps ecosystem
            6
            9.5
            iOS rules for now
             
            OS reliability
            9.9
            9.5
            WP8 never even freezes, much less crashes
            12.
            OS fluency
            9.5
            9
            Ice-skating with WP8, and floor dancing with iOS, I much prefer the former
            13.
            OS flexibility/customization
            8
            8
            Android is the king
            14.
            OS refinement
            7.5
            9.5
            Microsoft is still no Apple on refined details
             
            Current Fashion Index
            0
            11
             
            The numbers in the parentheses are for iPhone 5 as a reference.
            1. CALL QUALITY [10 (8)]
            It is a phone after all. The call quality of Lumia 920 is absolutely top-notch. The voice is so clear it puts my landline cordless phone to shame. Nokia knows how to make phones. They are the true phone company. The HAAC microphones (Rich Recording Mic) are not your ordinary microphones on cell phones. A different league. The speakerphone is pretty good too, quite loud and clear. In fact I once had a conference call using the speakerphone with several people on my side, and it worked out fine.
            2. E-MAIL [9 (7)]
            Overall, WP8 has the best mobile e-mail. Windows Phone has an inherent advantage in e-mail, especially work e-mails. Apple does not own a popular e-mail service, and can only support third-party e-mails. Android enjoys the excellent Gmail, but Gmail does not have a strong foothold in the workplace.
            WP8 has deep integration of Exchange, Office 365’s Outlook e-mail, Hotmail and Live Mail on Windows Phone. WP8 further has excellent integration with the popular Gmail and Yahoo Mail. All this results in an e-mail client that is more capable and efficient than other platforms. To name a few, contact management, contact synchronization, message management, message synchronization, file management, attachment management, folder management, conversation thread management, and e-mail search, are significantly better on Windows Phone e-mail. The difference is far deeper than appearance. If you handle e-mails with some degree of sophistication, you will appreciate the difference.
            I travel with both my iPad and Windows Phone. Unless I am using my computer, I usually reach out for the Windows Phone for e-mails instead of the iPad, despite the fact that the e-mails on iPad have so much better readability. To just read a recent e-mail, the iPad is an obvious choice. But you don’t just read a recent e-mail. Work e-mails have history and threads, and they need to be searchable, and fully synchronized with your computer, and that’s where the Windows Phone shines.
            For example, if you just read or deleted an e-mail on you phone, you want the read status or deletion to synchronize with the server and other devices. This is important because otherwise you end up paying attention to the same e-mail too many times and having to delete the same e-mail multiple times, and often even get confused because you thought you have deleted it already but the same e-mail still appears on other devices. WP8 performs this flawlessly. On iOS, this type of backward synchronization is spotty. It seems to work with Gmail, but not with Outlook mail, Hotmail and Live Mail.
            For another example, if you need to search to find an older e-mail which is not stored on your phone (due to memory conservation, mobile devices do not download and keep a copy of every e-mail in the past), you want your mobile e-mail to give you an opportunity to search e-mails on the server. WP8 does this perfectly.
            I also like the fact that Windows Phone has a separate live tile with a customized icon for each e-mail account. I don’t like the idea of mixing my work e-mail and personal e-mail in the same box, or even under the same icon. I need a clean definition of territories. Of course, if you intend to combine e-mails, you can do that as well. Flexibility.
            3. SKYPE AND NON-CELLULAR SERVICE DEPENDENT PHONE CALLS [9 (7)]
            Skype, owned by Microsoft now, is an important function on WP. If you use Skype Pro and/or Skype Out, you can actually make phone calls anywhere in the world as long as you have Wi-Fi or cellular data connection. I’m not talking about Skype-to-Skype online calls. I’m talking about calling real phone numbers. (This works only with Skype Pro; the free Skype account can only make online Skype calls). No cellular phone connection is required with Skype Pro on Windows Phone. Microsoft also makes a Skype app for iOS though. But the app is still not as nearly good as the integrated Skype on the Windows Phone.
            Take an international trip you will understand what I’m saying. Being able to call home and work at international airports *without* a SIM card for the local service is a major convenience. Even if you already have got a local SIM card, using Skype Pro on Windows Phone to make calls on the 3G/4G data service is still a great convenience because it costs only two cents a minute, less than 1/20 of the cost for international calls made on a regular cell phone. It also works other way around. You can make international calls from the US using Skype Pro on your Windows Phone for two cents a minute.
            Cheap international calls anywhere on your cell phone (and enjoying the integrated phone contacts) – I hope this concept registers with you.
            4. CONTACT MANAGEMENT [8 (5)]
            The People Hub on the Windows Phone deserves a separate mentioning. This is by and large the best contact management on a cell phone (WebOS users might have an issue with the statement). It automatically integrates all the contacts from different sources (e-mails, Skype and Facebook) and provides the best accessibility and connectivity on a mobile device.
            This significantly betters iOS, which has a pretty address book and good editing capabilities, but very little beyond that. When it comes to multi-source contacts integration, accessibility and connectivity, the People Hub on WP is much superior to iOS’s contact management.
            For example, iOS address book has links to internal phone numbers (the ones that you entered directly into the iPhone) and e-mail addresses, but basically that’s it. It does not have active links to external phone numbers (contacts pulled from e-mail accounts), Skype contacts, and Facebook friends, etc.. In the People Hub, all these have active links, meaning that they provide a single click connection. In addition, People Hub pulls contacts from Skype, which iOS does not do at all. If you use Skype, especially Skype Pro (which you should if you use Windows Phone), you will suffer a disconnection on iOS.
            5. PRODUCTIVITY [6 (3)]
            Nokia with Windows Phone 8 wins this important area hands down, not because it is so good, but because others are so bad. One major thing is that Microsoft’s Office 365 and SkyDrive integrate with Microsoft Phone perfectly. If you or your company subscribe to Office 365 and use the cloud versions of the OneNote, Office, Outlook, TeamSite and SharePoint, the Windows phone can do the most essential things you can do using a laptop, with obvious limitations on a small user interface of course. The iPhone and Android simply cannot provide that kind of productivity. Even if you don’t use Office 365, getting the Windows Live and Skydrive (which is very much underrated) would already be an excellent productive user experience because of the integration with the Web version of Office.
            Overall, if documents and e-mails are just different ways of casual “instant messaging” to you, the iPhone is fine. But if documents and e-mails are a work tool to you, Windows Phone is the way to go.
            On the other hand, one should realize that these mobile devices are still quite limited in productivity. Potentially, a lot more work could be done using these devices despite the tiny screens, so there is still a large room to improve. It just happens that WP8 is way better than others in this respect.
            6. NAVIGATION [9 (6)]
            First of all, for those who miss Bing Maps, your Windows Phone still has it. It’s only two taps away: tap the Bing search button (every Windows Phone has a Bing search button on the right side at the bottom), and then tap the “Local Scout” button (on the left side of the three).
            But I honestly don’t miss it. Nokia Maps, Nokia Drive, Nokia Transit, and Nokia City Lens, together offer excellent navigation, much better than Bing Maps alone, and also better than what iOS has to offer.
            I’m actually very impressed by Apple’s first map. It has some very good features. But as Google has said, doing maps is hard. Currently, Apple maps does have a problem. The reports of Apple’s terrible map performance seems to be related to map data inaccuracy. Those Apple fans who repute such reports by claiming that they haven’t experienced any problems are missing the point. Unlike other software in which a test is usually universal, your map test results only have to do with the location you tried, and only proves that the map is OK in at least one location. When there is a problem at a certain location, there is a problem. And Apple has a lot of such problems reported. The company acknowledges it. They’re not fools. I don’t know how fast Apple can improve on that. Data is far more than just doing some programming.
            Regardless, I don’t think Apple can match the level of usability of Nokia’s navigation set even after it has fixed the data inaccuracy problems. In addition to data, the feature integration and map search are also important and Apple currently lacks on that. These are also very hard things to do, and it takes experience and time, plus very hard work on algorithms. Apple is apparently not taking any sleep on this. I’m curious of its upcoming updates.
            Compared to the excellent Google Maps, Nokia’s navigation solution is mixed. It’s better in some ways, but worse in other ways. Google Maps is excellent. Google shines on map data, especially in the North America segment, there’s no question about it. Google’s supremacy in search is also reflected in its maps. But I think Nokia has comparable map data (although arguably slightly inferior North America segment data), but better user interface with Drive, Public transit Transport [Transit], shopping and city places guide [i.e. Nokia City Lens].
            Although Nokia’s navigation solution comes with several separate apps (in comparison, Google puts everything under Google Maps), I feel Nokia paradoxically has better user interface in actual use. If you use Nokia Drive, you have Nokia Maps automatically integrated with it; if you start with Nokia City Lens, you have both Nokia Drive and Nokia Maps automatically integrated with it. This all make sense, because if you want a pure traditional GPS, you just use Nokia Drive; if you just want to search for specific address on a map, you use Nokia Maps; but if you simply have no idea of what address it is but instead want to explore the city, you start with Nokia City Lens (and have the power of Nokia Maps and Nokia Drive come along with it automatically, integrated).
            Potentially, Nokia’s approach could directly put you at the best leveraging angle depending on your actual situation, and uses a specific app with the most suited user interface to maximize the user experience. Unfortunately, the current level of integration is still lacking and has not reached its full potential. But Nokia takes navigation seriously on their mobile phones. Considering that they jumped on the WP ship only recently, I’m confident that they will make this whole thing even better in a quite fast pace.
            An often overlooked but significant feature Nokia offers is downloadable maps segmented according to regions. Once downloaded to your phone’s local storage, the maps are fully functional off-line even when you don’t have any cellular network or WiFi access. That could be a matter of getting or not getting to the destination timely sometimes. If you don’t think this is important, I don’t know what is. Even when cellular network is present, the off-line GPS map means big savings on your data usage.
            With the downloaded maps, the navigation on Lumia 920 may have come to a point to replace standalone GPS units. It has vastly better user interface for one thing. Its address search, although not as good as Google Maps’, is vastly better than that of standalone GPS (address search is probably the most frustrating thing on standalone GPS units). It probably lacks a few features, but the overall user experience is superior. Of course, if you need a dedicated GPS unit to be mounted at a fixed position in the car for convenience, you will find that irreplaceable. But personally, I don’t think I’ll buy another GPS.
            If you happen to be at a place without a car (hello, Americans, have you traveled to other places in the world? People don’t always drive), you can use Nokia Transit. Nokia Transit provides detailed guide for public transportation of cities around the world, including lines and schedules. Nokia Transit is relatively new, and I don’t think it is as good as the Google’s counterpart yet. But it is certainly better than iPhone, because with the iOS 6, this is entirely lacking on the iPhone. Do you need it? Well, Americans don’t seem to think this is a big deal, but this is of great importance in Europe and many other Asian cities. Those who travel to Europe and Asia should not ignore the importance of this function.
            7. THE SCREEN [10 (8)]
            Both Lumia 920 and iPhone 5 have gorgeous screens, but the Lumia is still better. The viewability under direct sunlight is noticeably better on Lumia 920. Both are extremely clear for text and webpage rendering, but Lumia 920 works much better in the portrait mode because of its greater viewing dimension.
            And Lumia 920 has touchscreen capability when you wear gloves. This may come handy in very cold winter outdoors. But for me, the usefulness is more than during the winter. I like to wear one glove on my right hand while I’m doing air traveling to protect my hand, or I would have painful skin and split fingernails. Lumia 920 is the only phone that I can use wearing a glove. It is not a gimmick at all.
            8. THE CAMERA [9 (7)]
            Lumia 920 has the best cell phone camera on the market, leading by a significant margin, except for Nokia’s own PureView 808 which is a different type of device. I say this very objectively. Those who don’t see the difference either didn’t test it under right conditions, or simply can’t tell the differences in photo quality. Lumia 920 is the only smart phone camera that can take decent concert (or party) photos and videos. Its lowlight performance is at least two ISO stops (that’s 4 times) better than the iPhone 5. This is primarily due to Nokia’s unique pixel binning technology further combined with image stabilization. Neither Nokia nor Apple makes the camera sensors (Sony does), but the photo quality is not only about the sensor itself. Nokia has a tremendous advantage in this area, and they have a strong patent portfolio protecting that position.
            By the way, stop comparing which camera has more megapixels. This is one of the saddest things in digital camera industry in which companies advertise the number of megapixels as if that was the hallmark of the camera quality. They do so to take advantage of the mass consumers’ lack of understanding of digital sensor image forming. If they had focused on real performances on 2-4MP sensors that are of a sensor size as large as possible for smartphones, we would have now had much more useful cameras on these gadgets. This is because for any given chip technology and a given sensor size, an increase of the number of pixels comes at the expense of lowlight performance. (Please, I hear you sneering. I actually know what I’m talking about. I’m not saying that a smaller pixel number is always a good thing in itself. On the contrary, I’m just saying that for a given sensor size and a given chip technology, pixel number is the best sacrifice to make if the goal is to take better pictures. With an improved sensor chip technology or an increase in the sensor size, they usually have the options of either increasing the lowlight performance and dynamic range by keeping the same MP count, or increasing the MP count by withholding the real performance, but unfortunately they usually choose the latter because the MP count is a much more marketable gimmick.)
            On cell phones in particular, because of the very small sensor sizes, low light performance is a far bigger problem than resolution (MP count). Generally, photos taken by smart phones are only used for screen viewing instead of making large prints. For that reason, even 2MP would be plenty. For web posting, a high-quality 1MP photo is far better than a lousy 10MP photo. But instead, we now have the madness of smartphones reaching and going beyond 10MP with little meaningful result but unnecessarily bad lowlight performance, poor dynamic range, and a big waste of storage, data usage and processing time.
            So in this regard, Nokia is doing great in spite of (not because of) joining the megapixel race, again thanks to its pixel binning technology and image stabilization.
            9. BUILD QUALITY [10 (8)]
            Nokia 920 is a marvelous piece of engineering and manufacturing. Both Nokia 920 and iPhone 5 have a premium appearance, only very different flavors. But the Nokia is without question tougher. I say this not because Nokia is heavier. They use different materials. In choosing materials, these two companies have very different philosophies. Apple always goes after materials that enable extremely slim and light products, while Nokia has always been concerned of durability.
            Well, if you are already conditioned to update your phone every year, you are an ideal Apple-kind person already any way. But still, hold your iPhone dearly and don’t drop it. I have an iPad 3 that was accidentally dropped from a sofa sidetable to a hard floor head-down. I was completely shocked by the amount of damage it caused. I was expecting a dent on the edge or at worst a crack on the screen, but the whole thing was smashed like glass (that’s when I discovered that the iPod 3 uses a glasslike material even for the frame, which looks great, but, well, just don’t drop it).
            Many use a case for their iPhones. I never understood the utility of that until I dropped my iPad, which is made of very similar materials. So you might actually need a case for your iPhone. Not so for Lumia 920. It does not need a case for protection. In addition, I can’t imagine a case for Lumia 920 without ruining its gorgeous appearance.
            10. THERMAL BEHAVIOR [8 (8)] AND BATTERY LIFE [5 (5)]
            The Nokia 920 does not run hot, thankfully. This is one thing I was particularly worried, after the bad experience with the Dell Venue Pro which had disastrous thermal performance and power management.
            Battery life is good, although not excellent, comparable to other top performers such as iPhone 5. Lumia 920 will last a busy day of frequent use, but daily recharging is recommended if not necessary. Again, this is comparable to other smart phones.
            If there would be an improvement that could persuade me to change my phone again, it would be a new phone that could last at least a couple of busy days without recharging. I am not a heavy mobile user, but I’m out on a trip quite often. The battery life of my cell phone is among the biggest mental burdens while traveling. Unfortunately, it looks like battery life is not what these companies are focusing on at this time.
            11. APPS [6 (9.5)]
            iPhone wins by a large margin in terms of app number. Vast majority of apps are junk on both systems. It is hard to understand why people would waste their time downloading those apps, much less developing them. Some people argue that Windows Phone 8 has better quality apps even though they are fewer in number, but I don’t know how they measure that.
            Nevertheless, both systems do have some great apps; iOS just has more due to its sheer larger base. So it seems clear that most people will need to sacrifice a few apps by choosing Windows Phone platform for now. I’m missing quite a few useful apps on the Nokia 920, and make up the deficiency by using the iPad.
            The most important app I miss on the Windows Phone is a decent PDF reader. Microsoft rushed out its own PDF reader, which works for basic reading but has some serious limitations. I hope Adobe release a better PDF reader on WP8. And help from the third party developers is also needed. This is a big pain point.
            Windows Phone has some very good apps that are missing on iOS too (in addition to Nokia apps and Microsoft apps), although not as critical as something like PDF reader.
            However, none of these missing apps has the kind of importance that even remotely approaches that of navigation and productivity. To me, the choice is clear. I think it’s misleading to do “bean counting” to compare just the number of advantages of each system. You’ve got to have priority. If you have one feature that has a dominating priority, then one million less useful “apps” would simply no longer matter.
            Also, Windows Phone 8 has got a much better foundation in the program architecture than WP7, despite the relative minor changes in appearance. With the Windows NT kernel and 90% source code compatibility with Windows RT, the app future looks good.
            12. FLUENCY AND EFFICIENCY OF THE OPERATING SYSTEM [9.5 (9)]
            Windows Phone 8 on Lumia 920 actually beats iOS on iPhone 5 in terms of fluency and efficiency. WP has a hardware “Back” button in addition to the Home button, while iPhone has just a Home button. This has a significant impact on the flow of operation. I know this is rather subjective, but one thing that particularly bothers me on the iOS is that its flow is designed to require the user to always go back to the home button. You can’t directly go back to another place you have just visited. You always have to go back home and start from there again. I remember Steve Jobs proudly making a big point out of it. Theoretically, going back home and then to the last app takes only two steps, but problem is that when you have multiple pages of apps, it causes a bit of hesitation to locate the last app.
            When you come to think of it, that is probably one of the reasons why the iOS is so intuitive for beginners, but less efficient for more experienced users. On user interfaces, these two things often conflict. I can see why many like the flow design of iOS, but I prefer WP8’s flow much better.
            Another thing that impacts the efficiency is the management of installed apps. The iOS manages installed apps in a simplistic way with much emphasis on the appearance not the functionality. Windows Phone has a much more sophisticated way. The installed apps are directly searchable (there is a dedicated search button for installed apps, in addition to the general search and the app marketplace search), and are also automatically organized under alphabetical categories that can be quickly accessed through a single page grid (which is accessible by a single swipe). If you have less than 20 installed apps, you will see no difference. If you have about 20-50, the difference would start to show. With 50-100, it becomes apparent, and beyond 100, the difference would be huge. The more apps you install, the greater the difference would be. So again, power users will find this an advantage for Windows Phone.
            13. CUSTOMIZATION [8 (8)]
            It almost sounds silly that one of the biggest improvements WP8 has over WP7 is adding some smaller sized tiles. Hardly innovative, but it makes a big difference, largely speaking against the old design. I don’t like those big sized tiles. I simply don’t think any app deserves that much attention, especially in such a uniquely precious small room. I customized my start page to have all tiles in quarter size except for the phone button. Thank you, Microsoft, for allowing such basic freedom. My start space is now much more efficiently used and no longer a victim of the almost tyrant “less is more” so-called clean design philosophy.
            The level of customization further down is mostly on par with the iOS, but Android would still have an edge over both. I think this is got to a very reasonable level already, except for one big complaint I have against Windows Phone:
            With WP8, you still can’t turn off that stupid screen auto-rotation. You simply can’t so far. No user settings has that. No app that does that. Even unlocked phone can’t do that. Forgive me to call auto-rotation feature stupid. But it is one of those tech-things that made no sense on a mobile phone, precisely because a mobile phone is just so, mobile. The problem is that these device designers fail to understand that the proper (or desired) orientation of the screen simply cannot be determined by an orientation sensor. The sensor determines the orientation using gravity and the earth as the reference, not your body. As a result, the sensor can only detect the phone’s orientation itself, not its relative orientation to the user’s body posture, which is what actually matters. So it works properly only when you are standing straight, not when you are inclined or lie down. In fact, it always turns to the wrong orientation when you are inclined or lie down, so you have to fight it.
            In practice, the non-switchable autorotation causes much more annoyance than any utility. It is OK if they just want to use it as a gimmick to attract shallow feature counters, but it is not OK to have it permanently implemented and cannot be turned off. It’s simply stupid.
            I think the best solution is iPad 3’s combination of autorotation plus a hardware-based button for a mechanical lock. It combines the best of both worlds. The iPhone has autorotation plus user manual options in the settings and apps, which is not as good as the iPad, but still much better than Windows Phone’s autorotation only, whenever and wherever.
            The reason why I make this auto-rotation issue such a big deal is just to make a point, NOT because the thing itself is so life-threatening. I can live with the annoyance. But the failure or overlook of such issues after all these years is very telling of the level of ergonomics Microsoft understands or is willing to make an effort to.
            14. REFINEMENT OF THE OPERATING SYSTEM [7.5 (9.5)]
            When it comes to very fine details, Apple wins. WP8 has improved over WP7, but I think it is still a far cry from the iOS in its refinement of details. Company wise, and culture wise, Microsoft simply has not learned this art yet. Let me name a few:
            (1) You can’t quickly do a “select all” to copy and paste a text. It requires a painful maneuver to do so, many times more difficult than doing the same on iOS which gives you a selection in an automatically pop-up menu. Oh please, they struggled with this copy and paste thing from the very beginning and received a disproportionately great amount of criticisms, so you would think that they would have jumped all over it to not only improve it, but in fact over-improve it. Not at all. It’s still a half cooked solution, compared to what Apple has. The team that is responsible for this feature needs to be examined.
            (2) The network status indicators on the top of the screen don’t stay. They show up shortly and then disappear to leave a blank and unused space for you to stare at and be uncertain about. You have to touch the screen in a particular manner to bring them back. And there is no way to change that in the settings. (No, I’m not talk about the common automatic screen lockout, which is necessary for battery conservation.) What’s the utility of making these essential indicators disappear transiently? I see none. The network status indicators don’t occupy extra space at all when they are displayed, and in most situations their disappearance does not result in any benefit but just makes the whole system unnecessarily busy and less certain. My basic assertion is that when you are away from home, your cell phone’s network status is a constant concern, and being able to glance at these essential indicators any time to quickly learn about the network status gives you peace of mind, and is a good part of the harmonious “handset environment”. Having to always struggle for such a simple thing is nonsense especially when the sacrifice is made for no purpose.
            I think what happened at Microsoft was like this: One day, someone from Microsoft management shouted in a meeting: “Less is more! Less is more! Look at Apple, we need to learn from them!” And shortly after that, a Microsoft engineer came up with this idea of hiding the network status indicators…
            Those are just several among many small details. Microsoft has done the hard part of building a very promising mobile OS, why is it so difficult for them to do these very basic and simple things right? It is obviously not an engineering issue. It is a product management issue. It is a company culture issue. Microsoft’s level of paying attention to user experience details still has a long way to go to match that of Apple. Why didn’t Nokia fix those deficiencies? They probably don’t have a license from Microsoft to do so.
            Anyway, despite some wanting, I am in love with my Lumia. I hesitated when Lumia 800 came out, knowing that it would be incompatible with WP8. Now Lumia 920 is such an attractive package. I don’t think I’ll change my phone anytime soon, although I do hope that there would be some nice updates from both Microsoft and Nokia to make this phone even better.

            As even Android is coming up in the above customer review first see a brief:
            iPhone 5 vs Galaxy S3 vs Lumia 920 [cnetuk YouTube channel, Sept 13, 2012]

            We compare the Apple iPhone 5, Samsung Galaxy S3 and Nokia Lumia 920 in this 4G phone fight video.

            Then individually from a widely watched/read technical media source:
            The Gadget Show – iPhone 5 Review [thegadgetshow YouTube channel, Sept 21, 2012]

            Read also: Apple iPhone 5 review [the Gadget Show, Sept 24, 2012] Rating: image

            Samsung Galaxy S3:
            Samsung Galaxy S3 review [the Gadget Show, June 11, 2012] Rating: image
            Samsung Galaxy S3 4G [the Gadget Show, Nov 8, 2012] Rating: image

            The Gadget Show – Windows Phone 8 Handsets [thegadgetshow YouTube channel, Nov 20, 2012]: Windows Phone 8 – Nokia Lumia 920 – HTC Windows Phone 8X – Samsung ATIV S

            Nokia Lumia 920, HTC Windows Phone 8X and Samsung ATIV S

            Read also:
            Nokia Lumia 920 [review] [the Gadget Show, Nov 21, 2012] Rating: image
            Windows Phone 8X by HTC [the Gadget Show, Oct 29, 2012] Rating: image

            And when the same widely watched/read technical media source compared iPhone 5 vs Lumia 920 and HTC One X+ (instead of Galaxy S3 because One X+ is a quad-core unit):
            iPhone 5 vs HTC One X+ vs Lumia 920 (Gadget Show) [thegadgetshow YouTube channel, Dec 3, 2012]

            Giving out verdicts on three of this Christmas’ hottest smartphones:

            The Gadget Show looks at what flagship smartphone you should hope to find in your stocking on Christmas morning; an iPhone 5, an HTC One X+, or a Nokia Lumia 920?

            Ratings:
            – iPhone 5: image

            [4:31] The iPhone 5 gets just 3 Gs. No innovation. The battery life is terrible. It is still expensive and the build quality is poor. [4:40]

            – HTC One X+: image nearly 5
            Read also: HTC One X+ [review] [the Gadget Show, Nov 9, 2012]

            [4:40] The HTC wins 4 Gs, nearly 5. Its processor is super powerful, and the only thing that holds it back it’s ugly and it is not 4G ready. [4:50]

            – Nokia Lumia 920: image nearly 5

            [4:51] The Nokia also snaps 4 Gs, nearly 5. The user experience and the wireless charger are ace, but it lacks apps and too heavy [5:01]

            Then let’s see a couple of Lumia 920 specific advantages mentioned in the large customer review from Amazon that could be read in the beginning:

            Nokia Lumia 920 Drop Test [PhoneBuff YouTube channel, Nov 11, 2012]

            Lumia 920 Hammer & Knife Scratch Test:http://youtu.be/yDEahsoa_N4 Lumia 920 Destruction: http://youtu.be/E3c8il_Q6SU

            Work on the go with the Nokia Lumia 920 and Microsoft Office [nokia YouTube channel, Nov 26, 2012]

            Nokia Maps for Windows Phone 8 [nokia YouTube channel, Nov 6, 2012]

            Download the latest Nokia Maps from Windows Phone Marketplace for your Lumia Windows Phone 8: http://bit.ly/PPFNLx

            Nokia City Lens for Nokia Lumia: Augmented Reality Browser [nokia YouTube channel, Sept 10, 2012]

            Nokia City Lens http://nokia.ly/QeAOiK instantly connects you to all of the places you’re looking for—and even more importantly—gets you there exactly when and how you want to. Now available on Windows Phone Marketplace. Just landed in town and looking for a good restaurant? Interested in checking out the local museum or theater? Time to hit the nearest transit station to catch a ride uptown? No longer is finding your chosen destination a hassle—whether you’re in a new city or your hometown. Now you can simply launch Nokia City Lens on your phone to easily find all the places you want to go. Nokia City Lens instantly reveals what you’re looking for on your phone’s camera display, no matter if it’s down the street or just around the corner. You simply tap your chosen destination on your screen to conveniently access walking directions, make a reservation, or learn more detailed information about the locale.

            As Nokia rebranded all of its location based services under a new HERE brand as so called “location cloud” you can find all the details that in:
            Nokia HERE by Michael Halbherr [JB Su YouTube channel, Nov 15, 2012]

            Nokia Lumia 920 vs iPhone 5, Camera video image stabilization [NewsTechChannel YouTube channel, Sept 26, 2012]

            And now two reviews for each from a highly visited tech source on the web:

            Nokia Lumia 920 Review – Engadget [engadget, Nov 2, 2012]

            Check out our video review of the Nokia Lumia 920. It’s been almost a year to the day since we reviewed Nokia’s first Windows Phone and now we’re staring at its second-generation flagship, the Lumia 920. We’ll be frank: Nokia has crafted one substantial smartphone. After experiencing the curves and lightness of HTC’s Windows Phone 8X (4.5 ounces), the Lumia 920 makes the scales tremble at 6.5 ounces. Read our full review here: http://goo.gl/DKRfi and subscribe to Engadget: http://goo.gl/FZmRo. Engadget provides the web’s best consumer electronics & gadgets coverage. Launched in 2004 by former Gizmodo editor and co-founder Peter Rojas, Engadget now covers the latest mobile devices, computers, and every gadget under the sun. Engadget’s video property is a part of the AOL On Network, which includes great video from Autoblog (http://goo.gl/A8FXw), AOL Autos (http://goo.gl/bYgCz), Moviefone (http://goo.gl/3ou9d), Techcrunch (http://goo.gl/g63nk), The Huffington Post (http://goo.gl/1iQE0), AOL On Entertainment (http://goo.gl/W1fG3), AOL On Food (http://goo.gl/EjE3g), and many other video properties. At Aol, we’re in the business of making the internet better by producing high quality content that connects you with the best journalists, artists, and musicians. Leave a comment on any Aol video with your thoughts, feedback, and perspective! Get more Engadget: Read: http://www.engadget.com/ Like: http://www.facebook.com/Engadget Follow: https://twitter.com/engadget

            iPhone 5 Hands On Review – Engadget [engadget, Sept 18, 2012]

            This is it. Check out our video review of Apple’s iPhone 5! Thinner. Lighter. Faster. Simpler. The moment the iPhone 5 was unveiled we knew that it was checking off all the right boxes, folding in all the improvements and refinements people have been demanding over the past year — yet plenty of folks still went to their respective social networks to type out their bitter disappointment. Read the our full review here http://goo.gl/3VD1s and subscribe to Engadget:http://goo.gl/FZmRo. Engadget provides the web’s best consumer electronics & gadgets coverage. Launched in 2004 by former Gizmodo editor and co-founder Peter Rojas, Engadget now covers the latest mobile devices, computers, and every gadget under the sun. Engadget’s video property is a part of the AOL On Network, which includes great video from Autoblog (http://goo.gl/A8FXw), AOL Autos (http://goo.gl/bYgCz), Moviefone (http://goo.gl/3ou9d), Techcrunch (http://goo.gl/g63nk), The Huffington Post (http://goo.gl/1iQE0), AOL On Entertainment (http://goo.gl/W1fG3), AOL On Food (http://goo.gl/EjE3g), and many other video properties. At Aol, we’re in the business of making the internet better by producing high quality content that connects you with the best journalists, artists, and musicians. Leave a comment on any Aol video with your thoughts, feedback, and perspective! Get more Engadget: Read: http://www.engadget.com/ Like: http://www.facebook.com/Engadget Follow: https://twitter.com/engadget

            $99 Android 4.0.3 7” IPS tablet with an Allwinner SoC capable of 2160p Quad HD and built-in HDMI–another inflection point, from China again

            [This is a huge, compiled collection basically finished in September, 2012. Contains updates till November, 2012. It was published in early December, 2012. A new USD 99 Allwinner blog was launched on Nov 30, 2012 based on this compilation. Please read the two entry posts of that as well: The upcoming Chinese tablet and device invasion lead by the Allwinner SoCs and $40 entry-level Allwinner tablets–now for the 220 million students Aakash project in India in order to understand very quickly that  It’s a Strategic Inflection Point of enourmous consequences, and not only for the ICT industry.]
            Or it is first time that we can see globally that China is on a different, significantly more effective price/performance/functionality trajectory of its own than anybody else. Even the latest challengers to the already fading Wintel empire will be affected by this. We should therefore understand: 1. The new challenge—2. The learnings from similar fundamental shifts in the history of ICT—3. The current market for this new industry trajectory—4. The initial advantage that made possible this trajectory—5. The most significant new customer value which will assure its global victory in the end—6. The current way of thinking of the established client device players.—7. Possible further hardware advances sustaining this new trajectory.
            Inside PRC the situation is even more dramatic. Below you could see 3 market leading products on the mainland China market as was indicated on Sept 25 by vast and quite sophisticated marketplace information of PConline, the largest portal in the PRC specialising in IT product-related content, in terms of advertising revenue. The type of SoC used in those products is shown in blue ink. A13 and A10 are from Allwinner Technology, while RK3066 is from Fuzhou Rockchip Electronics. Both are quite successful SoC companies founded in China. Information about these tablets will be given in section 3. The Teclast & Window tablets shown below are also available globally for $120 and $215 respectively.

            image

            Update: All three tablets essentially have kept their position up to now (Dec 3). The price of Teclast P75D even went down to ¥499 i.e. $80 at one of the dealers, three of the dealers have price between ¥594 and ¥599, i.e. between $95 and $96, while 5 others still selling it for ¥699 i.e. $112 by today’s exchange rate. This is showing clearly that the $99 pricing for the HAIPAD i7 is realistic even in terms of the hottest tablet of such kind on the mainland China market which has ¥646 i.e. $104 across all of its dealers on PConline.
            At the same time the unchanged ¥259 i.e. $41.5 price of Andorra A713 clearly shows the fact that for a non-IPS 7” tablet with the Allwinner A13 SoC, essentially a constrained to 512M RAM version of A10 with no HDMI output, there is a well established entry-level price in China. Note that the A713 tablet has a capacitive multi-touch (5-point touch) screen, so it is not a kind of cheap resistive screen variety of tablets.
            This whole story will end in section 7. with the even more dramatic development of a PCMCIA card (or as was renamed PC Card) format package called EOMA-68 (see: Embedded Open Modular Architecture), which contains a whole computer with an Allwinner A10 SoC, 1GB of RAM, 1 to 16 GB of NAND Flash etc. All this for a target price of $15. Almost all interfaces available of the Allwinner A10 SoC have been made available on the 55x85mm credit-card-sized card, including both Transport Streams, SIM Card, PATA, the 24-pin Camera Interface, both 24-pin LCD Interfaces, VGA, Composite Video (CVBS), SPDIF, AC97, I2S, GPS, CAN-Bus, Infrared, and many more. This is in addition to the standard EOMA-68 Interfaces of Ethernet, I2C, SATA, LCD 24-pin RGB/TTL, USB2 and 16 GPIO pins.
            While this is a FLOSS-related initiative rooted in UK, the hardware part is fully based on mainland China companies, including Allwinner Technology. What is the benefit for the FLOSS-people could be much more for the Chinese industry network already moving along a much faster and more effective trajectory than the outside world. To me it can go as far as a SoC vendor like Allwinner Technology will be able to produce these type of cards as well which will significantly enhance the possibilities and worldwide competitiveness of the hundreds of independent manufacturers is Shenzhen, Zhuhai and elsewhere in PRC. As a consequence the consumer equipment prices could go down even more and/or functionaly, as well as quality, could be risen even more.
            Meanwhile the SoC and subsequent Android tablet competition is intensifying very-very fast inside PRC as evidenced by this latest Overview of the latest/best 7″ Tablets out of Shenzhen China [Charbax YouTube channel, Oct 28, 2012]:
            Here’s my overview video showing some of the latest best value 7″ Android tablets that I have found in Shenzhen on this trip. At least the samples that I was able to buy. [IN BULK PRICES, i.e. in 1K orders at least:] $40 A13 800×480, $65 RK3066 1024×600, $80 Nufront NS115 1024×600 IPS, and there’s also the sub-$50 VIA 8850 (which can run a Windows RT clone UI on top of Android), and I compare these with the $199 Kindle Fire HD
            Finally there is an even stronger newcomer, Nufront already on the Chinese SoC market, also posing the greatest challenge to Allwinner for the next year as it stands on Nov 1. We are talking about the Taishan platform with:
            The NS115 mobile computing chip, a dual-core ARM Cortex™-A9 MPCore™ processor up to 1.5GHz and Mali™-400 MP GPU implementation, features 1080P HD encode/decode and support of Android 4.0
            which justifies a whole section of its own to describe the whole strength of:
            8. The Nufront challenge coming from inside

            All those finding are compiled into this very large composite post on my trend-tracking blog here, which has the following sections with final names reflecting better the individual section contents as:

              1. The new challenge
              2. A proper recollection of what happened to Intel’s memory business
              3. The market and industry situation reflecting this new inflection point
              4. The Allwinner advantage 全志
              5. The wireless display and 2160p (“Quad HD”/4K) outlook
              6. Are the established client device players recognizing this strategic inflection point or not?
              7. Possible further hardware advances sustaining this new trajectory
              8. The Nufront challenge coming from inside

                Please go through those compiled sections at least by reading the emphasized texts which I’ve put everywhere to make fast reading possible.

                Note as well that section 2. is also on a new blog of mine, USD 99 Allwinner, as an expanded version standing on its own and made accessible from every post there via It’s a Strategic Inflection Point page.

                Finally, on this new blog you will find the USD 99 Allwinner page as well which, besides providing the rationale for the naming and the existence of that blog, will summarize my current (Dec. 1) opinion about the mobile device market for 2013, especially the threat which may force Microsoft and Intel to adjust their current strategies radically.


                1. The new challenge

                HAIPAD I7 IPS 1024*600 Multitouch Screen with Android 4.0 Dual Camera 1080P HDMI [Merimobiles.com, Sept 10, 2012]

                List Price: $269.99   Your Price: $99.99  [with free shipping worldwide]
                [when it became available in April’12 it was briefly $137.99 already]
                [more tablets of this kind coming to the market too, e.g. the $99 Dragon]

                Haipad i7 Android ICS 7” capacitive IPS Thin Tablet Review – Allwinner A10 Merimobiles ColonelZap [SchlumpfiHB YouTube channel, April 15, 2012]
                The only cons are that the cameras are “really, really bad”

                TECH SPECS:

                Warranty:
                – 1 Year, click here for details
                CPU:
                Allwinner A10 1.2 GHz
                OS:
                – Android 4.0.3
                Memory:
                1GB DDR3 Ram, 8GB Nandflash built in
                – Extend Memory up to 32GB via micro sd card
                Screen:
                – 7 inch IPS 5 points Capacitive Multitouch
                – 1024*600
                Audio:
                – Stereo Speaker
                – 3.5MM headphone jack
                – Supports: AAC, AAC+, eAAC+, AMR-NB, AMR-WB, QCP, MP3, WMA, WAV, MIDI, M4A
                Video:
                1080P,WMV/ASF/MP4/
                3GP/3G2M4V/AVI/MJPEG/RV10/DivX/
                VC-1/MPEG-2/
                MPEG-4/H.263/H.264
                – 1280*720P HD 30 fps, 1080P,720*480 D1 30fps
                – Real-time Video decode
                Camera:
                Front 0.3MP camera,
                back 2.0MP
                Battery:
                – 3600mAh
                Features and highlights: – Allwinner A10
                – 8GB Nandflash
                – 3D G- Sensor
                – 802.11b/g,support WAPI
                – Capacitive touching panel multi-point( 5 point touch)
                – OTG and host expand
                – USB2.0 data transfer
                – Micro 5pin USB
                – Supports mouse, external keyboard
                HDMI output
                – Multilanguage support
                – Excellent Ebook reader
                – Weather on line
                – Web Browser
                – Slim body
                – Sound Card:AC97
                – 196.3*122.3*8.5mm
                – standby time:36 hours
                – working time:4~5hours (play video online)
                Package Content:
                  • HAIPAD I7
                  • Earphone
                  • USB Cable
                  • Charger
                  Color:
                    • Gray
                    Language:
                    • English
                    Regarding the multimedia capabilities I will suggest to go through a review of a similar tablet: MPMan MID74c (NATPC Primatab 7″) tablet review part 3: multimedia and HD video playing capabilities (Boxchip Allwinner A10) [ARCHTABLET NEWS, May 25, 2012]. Two videos are included there as well!

                    As you can see this process was well visible much earlier, in the beginning of Q2 2012 at the latest. Besides the September milestone of reaching the $99 cost with such a high-quality IPS tablet, another impetus for me to write this post was a last Sunday’s article titled Hardware is dead [VentureBeat, September 15, 2012]:

                    I go to China every four or five months for work. I have to visit all the corporate headquarters in Beijing and Shanghai, but the highlight of every trip is the day I spend at Hua Qiang Road North in Shenzhen. Pretty much every piece of electronics we use today is sourced and manufactured within 100 miles of Shenzhen, and Hua Qiang is the city’s electronics shopping district.
                    On my last trip, in July, I met a ‘procurement’ consultant, and he told me which of the 50 mega malls in the area to visit to buy tablets.
                    In the US, when we talk about tablets we usually mean the iPad and increasingly the Kindle devices, but beyond that there is not much else in the market. I had heard that tablets in China had already reached low price points. You can buy a reasonable Android phone for $100 retail, and I wanted to see if I could find a $150 tablet. This consultant pointed me to a mall filled with hundreds of stalls selling nothing but tablets. I walked into the middle of the scrum to a random stall. I pointed to one of the devices on display and asked, “How much for this one?” 300 kuai. My Mandarin is a bit rusty, so I had to ask again. Slowly, the stall owner repeated renminbi 300 yuan.
                    If this were a movie, the lights would have dimmed and all the activity in the room frozen. 300 renminbi is US $ 45. And that was the initial offer price given to a bewildered foreigner in China, no haggling. I felt a literal shock.
                    I bought the device and did some more research. This was a 7-inch tablet, Wi-Fi only with all the attributes of a good tablet. Capacitive touchscreen. Snappy processor. Front facing camera. 4GB of internal memory and an expandable memory slot.
                    I later found out that these devices are now all over the supply chain in Shenzhen. At volume, say 20,000 units, you can get them for $35 apiece. My device ran full Android 4.0 Ice Cream Sandwich and had access to the full Google API, including Gmail, Maps, YouTube and Google Play (not quite sure how that works either).
                    Once my heart started beating again, the first thing I thought was, “I thought the screen alone would cost more than $45.” My next thought was, “This is really bad news for anyone who makes computing hardware.”
                    My contacts in the supply chain tell me they expect these devices to ship 20 million to 40 million units this year. Most of these designs are powered by a processor from a company that is not known outside China — All Winner [Allwinner]. As a result, we have heard the tablets referred to as “A-Pads.”
                    When I show this tablet to people in the industry, they have universally shared my shock. And then they always ask “Who made it?.” My stock answer is “Who cares?” But the truth of it is that I do not know. There was no brand on the box or on the device. I have combed some of the internal documentation and cannot find an answer. This is how far the Shenzhen electronics complex has evolved. The hardware maker literally does not matter. Contract manufacturers can download a reference design from the chip maker and build to suit customer orders. If I had 20,000 friends and an easy way to import these into the US, I would put my own name on it and hand them out as a business cards or Chanukah gifts.
                    I think this leads to an important conclusion: No one can make money selling hardware anymore. The only way to make money with hardware is to sell something else and get consumers to pay for the whole device and experience.
                    Postscript
                    I thought discovering the A-Pad was pretty exciting. So I was dismayed to find that the week after I got back from China, a device that looks a lot like my A-Pad was on sale at Fry’s Electronics for $79. No brand listed. The process has already begun.
                    Jay Goldberg is a financial analyst with an investment bank. He has been working with tech companies for ten years. Prior to that he lived and worked in China for almost 10 years.

                    A morale of this story is not the one written in the title of the article, i.e. it is not true at all that “hardware is dead”, rather we are witnessing again an old phenomenon first discovered by Intel’s Andy Grove back in the 80’s and coined with a term “[strategic inflection point]”. With no proper representations in places like Wikipedia (don’t confuse with mathemetical concept only included there) you better search the web with the phrase:

                    “Andy Grove” “inflection point” Japanese “memory chips”

                    For me the best quote for my initial purposes here is from the permitted excerpt of Andy Grove’s famous Only the Paranoid Survive [Sept 1, 1996] book, reformatted for more immediate recognition of the intended meanings as follows:

                    I’ll describe what a strategic inflection point is a bit later in this book. For now, let me just say that a strategic inflection point is a time in the life of a business when its fundamentals are about to change.  That change can mean an opportunity to rise to new heights.  But it may just as likely signal the beginning of the end.
                    You can be the subject of a strategic inflection point but you can also be the cause of one. Intel, where I work, has been both
                      • In the mid-eighties, the Japanese memory producers brought upon us an inflection point so overwhelming that it forced us out of memory chips and into the relatively new field of microprocessors.
                      • The microprocessor business that we have dedicated ourselves to has since gone on to cause the mother of all inflection points for other companies, bringing very difficult times to the classical mainframe computer industry
                        Having both been affected by strategic inflection points and having caused them, I can safely say that the former is tougher.

                        Next I should give a brief explanation for “changing fundamentals of a business”. As is obvious from the recollection given below (section 2.) there were certain assumptions on which Intel’s original DRAM business was based upon. These assumptions were questioned by its Japanese competitors entering the lucrative DRAM market, first time winning against Intel in 1979 with better manufacturing yields and then by 1982 in terms of overall manufacturing competence as well. Equally important was that Intel was not able to remedy the situation although the symptoms were well recognized and seemingly effective actions were taken as well.

                        Please study that recollection first and then the sections which follow after that and which describe the observable facts about this very latest strategic inflection point. You will be able to both understand the current situation properly (unlike the investment analyst quoted above) as well as to predict the possible outcome of this inflection point for the ICT industry as whole (with the highest probability possible at all). I wish you good reading!

                        From the brief understanding of the new challenge as given above I should also paraphrase my remaining points of study as:

                        2. A proper recollection of what happenned to Intel’s memory business
                        3. The market and industry situation reflecting this new inflection point
                        4. The Allwinner advantage
                        5. The wireless display and 2160p (“Quad HD”/4K) outlook
                        6. Are the established client device players recognizing this strategic inflection point or not?
                        7. Possible further hardware advances sustaining this new trajectory


                        2. A proper recollection
                        of what happened to Intel’s memory business

                        Exerpts about the factual evidence are taken from the following scientific article:
                        A PROCESS MODEL OF STRATEGIC BUSINESS EXIT: IMPLICATIONS FOR AN EVOLUTIONARY PERSPECTIVE ON STRATEGY [Robert A. Burgelman, Strategic Management Journal, Vol. 17, 193-214 (1996)] (available here for download)

                        Table 1. Key events in the evolution of DRAMs at Intel: 1970-85
                        1970
                        E1. Intel introduced the first 1K (kilobit) dynamic random access memory (DRAM) in volume. The product used the new metal-oxide semiconductor (MOS) process technology. This process technology was relatively slow but less power consuming than the standard bipolar process technology. Intel was the first successful mover in DRAMs.
                        1972-74
                        E2. Intel introduced 4K DRAMs. Intel captured more than 80% of the 4K DRAM market in 1974.
                        E3. The first competitive challenge came from Mostek, a new startup. Mostek focused on user-friendliness of DRAMs in the 4K DRAM generation.
                        1976-77
                        E4. Intel introduced a standard 16K DRAM. Intel captured more than 35% of the 16K DRAM market in 1976.
                        E5. The competitive challenge from Mostek and others continued. By 1979, Intel’s market share in standard 16K DRAM was less than 5%.
                        E6. High demand for EPROMs created a shortage in Intel’s manufacturing capacity. For the first time, DRAM manufacturing capacity was shifted toward the higher-margin EPROM products.
                        1979
                        E7. Intel introduced the first 5-volt ‘single-power-supply’ 16K DRAM. Single-power supply greatly simplified the user’s design and production tasks. In 1979, Intel was the only supplier of single-power-supply 16K DRAMs and captured a price premium of double the industry average for three-power-supply 16K DRAMs.
                        E8. Intel expected the 64K DRAM generation to be introduced later and to be based on single power supply. Fujitsu introduced a standard 64K DRAM in 1979 and captured a large market share.
                        E9. The single-power-supply 16K DRAM remained a small-niche product.
                        E10. Intel fell behind in manufacturing yields relative to top Japanese producers of DRAMs (Prestowitz, 1988: 46).
                        1982
                        E11. Intel’s 64K DRAM with ‘redundancy’ entered production. Redundancy involves adding an extra column of memory elements so that, in the event of a process-induced defect, the auxiliary column could be activated. This allows a defective memory chip (at testing) to be reprogrammed before shipment and to increase yields. Intel expected that ‘redundancy’ would help overcome its disadvantage in manufacturing yields relative to the Japanese, and that the 256K DRAM generation would be based on the redundancy process technology.
                        E12. However; Fujitsu and Hitachi entered with a standard 256K DRAM in 1982 and captured a large market share.
                        E13. Intel was now far behind in manufacturing competence relative to the Japanese.
                        March 1985
                        E30. COO Andy Grove felt strongly that the burgeoning logic (microprocessor) business needed to get more resources
                        Summer 1985
                        E34. The General Manager of the Components Group stepped down and was reassigned to another business area. Andy Grove assumed direct operational control over the DRAM exit process. He assigned two senior managers to immediately and fully implement the DRAM exit decision.
                        October 1985
                        E35. The decision was reached to close Fab 5 for DRAM production. Fab 5 was to be transformed into a process technology site for microprocessors. Animosity and mistrust between manufacturing and process technology personnel flared at Fab 5.
                        E36. Andy Grove went to Portland to speak to the group: ‘Welcome to the Mainstream Intel’. That is, Intel the ‘microcomputer company’.

                        Intel’s initial success in the 1K (kilobit) DRAM (1971-73) was due to the ability of its technologists to come up with a process technology that allowed production yields sufficiently high to beat magnetic core memory, which was the industry standard of the day, in the market (E1). Process technology was therefore viewed by Intel management as the firms’ ‘distinctive competence’ (Selznick, 1957) on which its ability to differentiate its products and get a premium price depended (E7, E11, E18, E22). Having maintained leadership in the 4K DRAM generation (1972-76) (E2, E3), Intel’s process technologists came up with the first 5-volt single-power-supply 16K DRAM in 1979. Intel process technologists decided to focus on the single-power-supply 16K DRAM because they projected a relatively long life cycle for the 16K generation due to the technological challenges posed by the 64K generation (E18). They also believed that the single-power-supply process would eventually dominate the memory industry. They considered it too risky to tackle both the 64K DRAM generation and the single power supply in the same product.
                        While it is usually difficult to observe distinctive competence independent of the successful product with which it is associated, and the risk of tautology is high, Intel’s pattern of strategic actions offers the opportunity to make independent observations. When changes in the DRAM industry structure shifted the basis of competition from process technology to largescale precision manufacturing, Intel continued to rely on process technology to compete in four successive product generations. The first independent observation concerned the 16K DRAM generation. But, as documented below, inertial deployment of process technology competence was also observed in the 64K, 256K, and 1 Meg (megabit) product generations. Paradoxically, the distinctive competence that provided Intel with its initial competitive advantage became a source of failure later on.
                        Falling behind reinforces the impetus process
                        Falling behind in the market made it difficult for the DRAM business managers to compete with Intel’s other businesses for resources. Business managers had tried to reposition Intel’s single power-supply 16K DRAM as a niche product that would fetch a higher unit price (‘2x’). They had expected that eventually the whole 16K market would have to go for single-power-supply. This did not happen for the 16K generation, however, and further impetus for exit was gained when the strategy to reposition Intel’s DRAMs as niche products failed (E9; Cogan and Burgelman, 1990).
                        Repositioning
                        Intel was already late in the 64K generation and Japanese companies had entered the DRAM market in 1979. In addition, Intel’s 64K product design was flawed and expected to result in uncompetitive low manufacturing yields (E10). The DRAM process technology group responded by introducing a new process technology called ‘redundancy’, as a way to overcome the low yield problem (E11). This new process, however, had a major defect which showed up late in its development. Intel introduced its 64K DRAM with redundancy only in 1982. These delays were fatal for Intel’s strategic position in the 64K generation. A former General Manager of the Memory Components Division (during the early 1980s) said that he took a 1-week trip to see the Intel sales engineers and explain that Intel would be late. He said (Cogan and Burgelman, 1990: 15):
                        The sales force was very disappointed in the company’s performance. Any sales force wants a commodity line. It’s an easy sell and sometimes it’s a big sell. That trip was perhaps the most difficult time in my whole career. When I announced we would be late with the product, the implication was that Intel would not be a factor in the 64K generation.
                        Having assessed that they were behind in the 64K generation, the DRAM process technology group took another gamble. They had come up with yet another innovative process technology—complementary metal-oxide semiconductor (CMOS)—which was to eventually supersede the standard n-channel MOS (NMOS) technology. They decided to apply the CMOS technology to a new 64K DRAM product as well as in the 256K generation (E16). This raised the difficult question for the memory components division about how to effect the transition from NMOS to CMOS. The NMOS products had been made at the Chandler (Arizona) facility, but that capacity had been shifted to microcontrollers based on the maxmize margin-per-wafer start rule. In early 1984, the decision was made to phase out the NMOS line (E17).
                        The former General Manager of the Memory Components Division (during the early 1980s) said that the new business strategy was to reposition Intel in DRAMs. The idea was to create a niche market with premium pricing for 64K and 256K CMOS products, so that Intel could maintain a memory presence while accelerating back into an overall leadership position at the 1 Meg (Megabit) generation. But for both the 64K and 256K DRAM products, the innovative solution did not produce competitive advantage. The large majority of customers for the 64K generation were looking for standard products of high quality (few defect devices) at low prices. Japanese companies provided what customers wanted at very low prices. The Japanese had introduced standard 256K DRAMs in 1982 (E12), and Intel had fallen far behind the Japanese in manufacturing yields (E13). Intel entered with its CMOS 256K product only in 1984, and it remained a small niche product. The former General Manager of the Memory Components Division (during the early 1980s) said that standard DRAMs were being sold at less than half of the price Intel was asking, and the improved performance of the CMOS chips just wasn’t worth it to most customers. Intel’s repositioning effort resulted in completely losing strategic position in the DRAM market. Intel’ s market share shrunk from more than 80 percent in the 4K DRAM generation in 1974 to less than 1 percent in the 256K DRAM generation in 1984 (Cogan and Burgelman, 1990). Repositioning thus failed to reestablish Intel as a key player in the industry. Also, prices for the niche products were lower than expected, making it harder for DRAMs to compete with other products for Intel’s scarce manufacturing resources.
                        The Director of Technology Development observed that Intel’s DRAM business had entered a ‘death spiral’. In the face of strong competition from Japanese manufacturers, business managers’ focus on the more profitable products and technology development’ s preoccupation with leading-edge processes contributed to missing the
                        DRAM mainstream market. This led to cutbacks in manufacturing capacity and budgets which made it even more difficult to compete. This manager, in an interview in October 1988, anticipated a similar vicious circle (‘death spiral’) for EPROMs, which had also become a commodity product, and correctly foresaw the decision to exit from EPROM manufacturing, which happened in 1991.
                        Strategic context
                        For Intel’s top management, the strategic context of DRAMs had always been very clear. DRAMs had very strong legitimacy. DRAMs was the business that ‘made Intel’, as one senior manager put it, and some top managers, including the CEO, viewed DRAMs as a core business and one that served as technology driver on which the learning curve of the company depended. It was not easy for top management to admit that the legitimacy of DRAMs was vanishing. And it was difficult to decide to exit from DRAMs even though objective analysis seemed to suggest that this was the appropriate course of action in light of Intel’s strategic alternatives.

                        3. The market and industry situation
                        reflecting this new inflection point

                        Let’s see first the latest market data by one global analyst companies, IDC:image 
                        Source: IDC Expects Smart Connected Device Shipments to Grow by 14% Annually Through 2016, Led by Tablets and Smartphones [IDC press release, Sept 26, 2012]

                        According to the latest information from China the tablet market is quite underestimated by IDC:

                        How many tablets does China make, how big is the Chinese market?
                        80 percent of media tablets made in China are exported
                        Unit: Million of units
                        S
                        ource: Chinese industry estimates

                        as China alone will be delivering 50 million tablets this year and the overall Chinese estimate is 155 million units vs. 120 million per IDC:

                        By volume, the Android tablet sector has grown to an estimated 80 million units, outpacing the 75 million iPads sold by Apple thus far, according to estimates by Rockchip [marketing] vice president Feng Chen.

                        as reported by Junko Yoshida, ex-editor in chief of EE Times who now has a strong emphasis on China as “a roving reporter”: 

                        in China Fabless: Rockchip rattled by Android tablet wars [Sept 25, 2012]
                        Just nine months ago, Fuzhou Rockchip Electronics, a developer of apps processor for tablets, looked almost invincible. …
                        … since then, the Android-based media tablet market has gotten far more competitive. By volume, the Android tablet sector has grown to an estimated 80 million units, outpacing the 75 million iPads sold by Apple thus far, according to estimates by Rockchip [marketing] vice president Feng Chen.
                        At the beginning of 2012, the target price of a 7-inch capacitive screen media tablet featuring Cortex-A8 was $99. That price has since dropped to around $65, due largely to Allwinner, a red-hot Chinese fabless company that has flooded the tablet market with its own turnkey system. … Rockchip’s situation vividly illustrates the challenges most Chinese fabless chip companies now face.

                        During a recent interview with EE Times here, Rockchip’s Chen said, “This is a new world war we’re fighting.” … Indeed, nearly every apps processor [sic, SoC] vendor here is in a rough spot because “the time-to-market requirement has gotten much shorter,” he noted. “Worse, catching the market rhythm or cycle — at the right time – has become much harder.”

                        “… now, as end-product cycles get shorter, we do everything from designing a chip to developing a board and software that goes around the hardware — literally within a couple of months,” he explained. In March, for example, Rockchip started to design its RK3066, a dual-core Cortex A9 chip with a quad-core Mali-400 GPU. By April [15], it hustled to showcase sample tablets based on the chip at the Hong Kong Electronics Fair. By May, the company began shipping the new apps processor to its customers.

                        Note regarding the timing of RK3066 SoC development:
                        – The initial version of RK3066 datasheet brief is dated Oct 30, 2011. the 1.0 version of it February 15, 2012.
                        – The RK30xx platform was announced on Feb 27, 2012 with information that “Dual-core ARM Cortex-A9 processor with up to 1.4GHz speed, implemented with Artisan Processor Optimization Pack (POP)” and that “Samples of the Rockchip RK30xx platform will be available in March 2012.”

                        Unlike other startups here, Rockchip has been profitable from the start. But as the tablet battle heats up, it also needs to find a way to move to the next level. “We are fighting a world war. We need the world’s top talent.”
                        The company also needs access to capital. Without it, Rockchip can’t even think about mergers or acquisitions. Organic growth alone won’t get it to the next level, Chen acknowledge, saying he expects consolidation in the Chinese fabless sector but “no Chinese companies want to give up.” 
                        Lastly, Chen said, “We need to be clear on the market” so that Rockchip can choose its battles.

                        Another of her observation:

                        Yoshida in China: How Nokia failed, MediaTek won [Sept 26, 2012]

                        Earlier this month when I sat down for breakfast here with Feng Chen, vice president of China fabless company Rockchip, he abruptly asked if I knew the “80-3-2 rule.” I had never heard of it.
                        The subject came up as we were discussing the global media tablet market. Chen, who noted that this is his personal theory, not Rockchip’s, explained: If you design a system (or chip) with performance of at 80 percent compared to the best-in-class product on the market, and if you offer it at one-third the price, you can double the sales volume of your system (chip).
                        Chen used the media tablet market as an example. Many Android-based tablets with relatively less performance than Apple’s iPad, will eventually exceed sales of iPad in volume, he argued.
                        In other words, don’t over-engineer it.
                        Android, along with outsourcing and faster product turnarounds are the key elements that make the 80-3-2 rule possible. The rule also offers a mechanism for getting products in the hands of consumers.
                        Source: IHS iSuppli
                        Does the 80-3-2 rule make sense? Sort of.
                        The chart above illustrates the theory’s flaw: While Apple gets all the profits generated by the iPad, sales revenue for the Android camp is divvied up by many me-too Android tablet and chip suppliers.  Presumably those companies, all subscribing to the 80-3-2 rule, are fiercely undercutting one another, further reducing their margins.
                        So, the 80-3-2 rule is simplicity itself, but it doesn’t look sustainable to me.
                        Chen’s theory reminded me of something else. The Economist carried a story about “frugal innovation.” The article cited companies like General Electric and India’s Tata Consultancy Services (TCS) that developed new products like a hand-held electrocardiogram (by GE) and a water filter (TCS).
                        “Instead of adding ever more bells and whistles, they strip the products down to their bare essentials,” embarking on “frugal innovation,” or as it is sometimes called, “reverse innovation,” the Economist explained.
                        According to the Economist, “Frugal innovation is not just about redesigning products; it involves rethinking entire production processes and business models. Companies need to squeeze costs so they can reach more customers, and accept thin profit margins to gain volume….”
                        Therein are the dots we can use to connect to Chen’s theory. His 80-3-2 rule also addresses the issue of how a company finds a way to develop a product and a business process to squeeze costs, gain volume and reach millions of new customers.
                        (Full disclosure here. The Economist article was first pointed out to me by a U.K.-based engineering executive who works for Taiwan’s chip giant MediaTek. He was explaining how MediaTek’s recent success has a lot to do with “frugal innovation.” MediaTek, virtually unknown 10 years ago, is now a power house with huge market share in the Chinese smartphone  and media tablet markets.)
                        MediaTek has fundamentally changed the playbook for the chip industry here, especially for smartphones and tablets. More chip suppliers for smartphones and tablets who are competing with MediaTek are now expected to provide similar “turnkey systems” that MediaTek delivers, rather than just reference designs.
                        Technology development, especially in the electronics industry, has historically been one-dimensional. It all pretty much comes down to how your engineering team makes a system operate faster, run more apps and features, while consuming less power.
                        Frugal, or reverse, innovation and the 80-3-2 rule both suggest that it’s time to rethink innovation in more in multi-dimensional terms.
                        I can think of two good examples for how ignoring reverse innovation costs companies. … Nokia … Japanese LCD TV manufacturers like Sharp …

                        Her latest report continues with Yoshida in China: ‘Shanzhai’ clouds tablet data [EE Times, Nov 8, 2012]

                        NEW YORK – The global tablet market may be a lot bigger — perhaps as much as 50 percent bigger — than previously thought depending on how you measure the increasing numbers of “Shanzhai” tablets produced in China.
                        Loosely translated, “Shanzhai” means white box, as in, no label. These tablets manufactured in China are distinguished from “knockoff” products, which the original Chinese term “Shanzhai” suggests.
                        Earlier, I wrote about the global market for tablets during the third quarter of this year. According to estimates, shipments reached 27.8 million units.
                        Several industry sources based in Beijing and Shenzhen responded with notes  saying that the math behind the industry estimates didn’t add up. The Chinese observers argue that most estimates ignore the size of the white box tablet market. 

                        Factoring in the number of apps processors shipped by Chinese fabless companies and tablet displays from its panel vendors, the number of white box tablets made in Shenzhen during the third quarter could total as high as 18 million units, Chinese sources claimed. 

                        Add those to the branded tablets sold by Apple, Samsung, Amazon, Asus and Lenovo and the global tablet market in the third quarter jumps to 42.5 million units. That’s 52 percent more than the global total estimated by IDC in 3Q.
                        This huge gap makes me wonder what other Chinese consumer electronics products are uncounted or under-counted.

                        One thing to take into account is Chinese fabless chip company Allwinner Technology — how it operates and and how it has taken advantage of the growing white box market.

                        The  applications processor vendor has substantially expanded its market share over the last 18 months, primarily based on the strength of its turnkey system that has been described as “super easy to use” by Chinese industry sources. The solution allegedly makes it a snap for practically any white-box vendor to make media tablets and ramp up production in a Shenzhen minute.

                        According to sources in Shenzhen, Allwinner holds as much as 60 percent of the white box market and shipped 3.5 million apps processors in August alone. Allwinner is said to have shipped 5 million apps processors in October, generating $30 million revenue (at a $6 average selling price). If true, wow!

                        The momentum behind white box tablet production in Shenzhen is building. Chinese sources now believe shipments have climbed from 6 million units in August to 9 million in October.

                        Who’s buying all these tablets?

                        A source in Beijing describes them as “tablets shipped by no-name brands at about $50.” The end market is not necessarily China, but “mostly emerging economies including Southeast Asia, the Middle East, Eastern Europe, South America and Africa, etc.” He added that Chinese consumers “have similar tastes and demands as those living in the developed world. They don’t really buy these low-end tablets. They buy iPad or Samsung.”

                        If true, we may need to rethink not just the size of the booming tablet market, but the consumer revolution triggered by the tablet market well beyond China’s border.
                        The lack of recognizable brand names makes it that much harder to track unit shipments. Plus, chip shipment figures can be inflated or double-counted. Then there is China’s vast gray market.
                        Even taking all of those factors in account, the explosion of tablets in emerging markets is no mirage – and it might be spreading much faster than any one imagined.
                        For example, one source in Shenzhen estimates that  annual shipment of white box tablets this year could hit 50 million units.

                        With all that she (Junko Yoshida) came closest from the West to understand the new ICT phenomenon rooted in China. Now let’s look at what others have come to so far:

                        The overall tablet market trend is illustrated by IHS iSuppli via the tablet display shipments as follows: 

                        image

                        then it is described in Global Tablet Display Shipments to Soar by 56 Percent in 2012 [IHS iSuppli press release, Sept 17, 2012] as:

                        … [the first part of the press release is essentially giving information which is represented by the diagram above] …

                        LG and Samsung Dominate Tablet Display Shipments
                        LG Display and Samsung Display were the main suppliers of tablet displays in the first quarter with 42 percent and 38 percent shipment market share, respectively. Both are market leaders because they make the liquid crystal display (LCD) panels that are used in the iPad, which continued to dominate the media tablet space with a commanding 58 percent of all tablets shipped in the first quarter.
                        [LG Display holds 70% of iPad panel shipments [DIGITIMES, Sept 20, 2012]: while Samsung Electronics, Sharp and Chimei Innolux (CMI) have all been seeing decreasing shipments … CMI will make up less than 5% of overall iPad panel shipments by the end of the third quarter in 2012.]
                        Aside from supplying Apple, LGD also furnishes display panels to Amazon and Barnes & Noble, while Samsung provides panels to its internal tablet division. Investments are being made by the two major tablet panel suppliers in capacity allocation and technological improvements to supply high-performance tablet panels and to develop wide-viewing-angle technologies like in-plane switching (IPS) and fringe-field switching (FFS). Both LGD and Samsung Display are also looking to convert amorphous-silicon fabs into making oxide silicon panels to help improve tablet panel resolution, power consumption and overall performance.
                        Panel Manufacturers Enter the Tablet Panel Fray
                        Other LCD panel suppliers also are jumping into the fast-growing tablet market. In particular, Japanese suppliers such as Sharp, Japan Display and Panasonic are actively targeting the tablet panel market by dedicating capacity at their Generation 6 and Generation 8 fabs in order to make tablet panels.
                        Together the capacity allocation this year for small and medium displays by the Japanese is expected to increase 164 percent from last year’s levels, reaching 5.5 million square meters in 2012. Of particular interest is the oxide silicon capacity at Sharp, which has been supplying panels from its G8 fab for the latest iteration of the iPad—also called the new iPad. Another company, Panasonic, is likely to produce 7.x-inch and 8.x-inch tablet panels during the second half of this year.

                        For their part, LCD suppliers based in Taiwan, such as AU Optronics and ChiMei Innolux, reportedly are adjusting their business models—some to focus on tablets for the education sector, and others to supply tablets for the white-box market in China.

                        It is believed that AUO may be one of the suppliers qualified to supply the smaller iPad’s 7.85-in panels.

                        But unlike Tier 1 tablet display makers LGD and Samsung Display, Taiwanese panel suppliers primarily target the Chinese market that is geared more toward lower-priced tablets. To meet lower price points, display specifications are usually dialed down compared to Tier 1 products. Displays targeted at the white-box tablet market in China mainly employ the more basic twisted nematic (TN) LCD, not the wide-viewing-angle LCD technologies of IPS and FFS.

                        Regardless of the display technology and market segment, display suppliers are making sure they align their strategies to serve this fast-growing market.

                        Chimei Innolux to Win 40%-50% Share of White-brand Tablet PC Touch-panel Market [CENS, Aug 15, 2012]

                        Chimei Innolux Corp., the largest thin film transistor-liquid crystal display (TFT-LCD) panel manufacturer in Taiwan, is expected to win a 40% to 50% share of the global market for white-brand tablet PC applications, according to the company.

                        Some 40 million to 60 million white-brand tablet PCs are expected to be shipped this year, similar to the total shipments of Apple`s iPad.

                        Major market research firm DisplaySearch recently forecast that some 121 million tablet PCs would be shipped worldwide this year, and the annual volume would increase to 416 million units in 2016, in conjunction with a compound annual growth rate (CAGR) of 28% over next five years. Apple would continue to be the market leader in next five years with a market share of 60%, while white-brand counterparts are expected to enjoy high growth due to their advantageous pricing.
                        Jeff Hsu, Chimei Innolux`s vice president, pointed out that demand for white-brand tablet PCs from emerging markets has been quite strong this year. In addition to sales in China, many Chinese white-brand tablet PC makers also export products to other nations. So, the annual demand for touch panels for white-brand tablet PCs this year is expected to reach some 60 million units, with 7-inch models as the mainstream and followed by 10-inch ones. Chimei Innolux aims to ship more than 25 million touch panels for white-brand tablet PCs, accounting for 40% to 50% of the application market, Hsu said.
                        Hsu also added that this year, the mainstream touch-panel type in tablet PC application has shifted from resistor to capacitive, which is expected to benefit many Taiwanese suppliers with more advanced technology. Jtouch Corp. of Taiwan, for example, is stepping up boosting production capacity of its new touch-panel factory in Hunan Province of China. The firm`s large-sized touch panels are expected to account for more than 20% of its revenue this year. Mutto Optronics Co., Ltd. recently also won big-ticket orders for tablet PC touch panels, and expected to see a 30% sequential revenue growth in the third quarter.
                        Google recently pushed its Nexus 7 tablet PC priced for only US$199, and the company immediately sold out one million units. A white-brand tablet PC with 7-inch screen is often priced for about US$100 only, and such more affordable device has won very hot market responses in Latin America, Southeast Asia etc. Currently, monthly tablet PC shipments in China are between three million and four million units.

                        However in Tablet PCs will have good sales in the third quarter [Micdigi from China, July 19, 2012], from a knowledgeable source in Shezhen:

                        In the first quarter of 2012, the manufactures have good business, but in the second quarter they have so worse business.
                        As they have produced so many products in the first quarter, they have large stock of goods that they have to mark down price to sell them.
                        In the second quarter of 2011, the tablet PCs has good sales. But in this year, it is so cold.
                        In the third quarter, tablet market will rebound.
                        VIA chips was the winner in all the chip manufactures last year.
                        But in this year, Allwinner with high cost/performance chips gets the winner.
                        Most of Shenzhen tablet manufactures export to other countries. Because Chinese do not like knock off tablet PCs or SurperPad tablet PCs, they like brand ones.
                        In the third quarter, the tablet market will rebound and the fourth quarter will be the boom season.
                        I think the manufactures must get ready for the fourth quarter.
                        They had better prepare products with high cost performance.

                        This is one of the reasons why Nexus 7 not yet allowed to enter China market [Sept 11, 2012]:

                        While the Nexus 7, the tablet co-developed by Google and Taiwan-based vendor Asustek Computer, has been witnessing booming sales in major markets around the world, it is difficult for the model to be available for sale in the China market because the China government has not yet approved its import, according to industry sources in Taiwan.
                        The China government’s negative attitude is interpreted as a response to Google’s announcement of withdrawing from the China market in March 2010, the sources pointed out. It is difficult for the Nexus 7 to enter the China market, even through sale of Asustek’s marketing network there, the sources indicated.
                        Without the Nexus 7 in the market, China-based white-box vendors of tablets are under much less competitive pressure, the sources indicated. This is because the Nexus 7 has the advantage of Google’s and Asustek’s brand image with commensurate product quality and is expected to be strongly competitive with 8GB Android 4.0 tablet models in the 7- to 9-inch range launched by China-based white-box vendors, including Ainol, Onda, Teclast and Cube, at US$149, the sources pointed out. In addition, the Nexus 7 will bring competitive pressure on tablet PC models of equal specifications offered by Samsung Electronics and China-based vendors Lenovo and Hasee Computer in the China market, the sources indicated.
                        Without the China market, the cumulative global sales volume of Nexus 7 will reach an estimated 3.5 million units at the end of 2012, the sources noted.

                        Tablet Shipments to Surpass Notebook Shipments in 2016 [NPD DisplaySearch press release, July 3, 2012]

                        Total Mobile PC Shipments Exceed 800M Units by 2017
                        Tablet PCs, such as Apple’s iPad, are expected to be the growth driver for the mobile PC market over the next few years. Tablet shipments will surpass notebook shipments in 2016, according to the latest NPD DisplaySearch Quarterly Mobile PC Shipment and Forecast Report. Overall mobile PC shipments will grow from 347M units in 2012 to over 809M units by 2017.
                        While notebook PC shipments are expected to increase from 208M units in 2012 to 393M units by 2017, tablet PC shipments are expected to grow from 121M units to 416M units in this period, for a compound annual growth rate of 28%. A key driver for tablet PC growth is adoption in mature markets (including North America, Japan and Western Europe), which will account for 66% of shipments in 2012 and remain in the 60% range throughout the forecast period. Tablet PC shipments into mature markets will grow from 80M units in 2012 to 254M units by 2017.
                        Figure 1: Worldwide Mobile PC Shipment Forecast (000s)

                        Source: NPD DisplaySearch Quarterly Mobile PC Shipment and Forecast Report
                        “Consumer preference for mobile computing devices is shifting from notebook to tablet PCs, particularly in mature markets,” said Richard Shim, senior analyst at NPD DisplaySearch. “While the lines between tablet and notebook PCs are blurring, we expect mature markets to be the primary regions for tablet PC adoption. New entrants are tending to launch their initial products in mature markets. Services and infrastructure needed to create compelling new usage models are often better established in mature markets.”
                        Figure 2: Emerging and Mature Market Tablet Shipments (000s)

                        Source: NPD DisplaySearch Quarterly Mobile PC Shipment and Forecast Report
                        Building upon convenience-oriented features including instant-on capability, long battery life and extreme portability, tablet PCs are expected to evolve in form factor and performance, making them a compelling alternative to notebook PCs. Tablet PCs are expected to incorporate multi-core processors, increasingly stable operating systems, growing app libraries and higher resolution displays.
                        In addition, notebook PCs are also evolving to meet the challenge from tablet PCs. Thinner form factors, higher resolution displays and touch functionality features are expected to increase. The notebook PC market will remain the largest part of the mobile PC market during the forecast period, accounting for 60% of mobile PC shipments in 2012, declining to 49% by 2017.

                        Digitimes Research: China tablet SoC developers enjoy robust shipment growth in 2012 [DIGITIMES Research, Nov 20, 2012]

                        There has been a surge in demand for tablet-use SoC solutions in the China market thus far in 2012, benefiting local IC design companies such as Allwinner Technology, Rockchip Technology and Amlogic, according to Digitimes Research. The tablet-IC market in China is dominated by local SoC developers, which mainly adopt the ARM architecture enabling a low-cost and easy-to-design platform.

                        Shipments of China makers’ branded and white-box tablets destined for the local market are forecast to reach about 15 million units in 2012, while those destined for overseas will climb to as high as 44.15 million, Digitimes Research said. In total, shipments of China makers’ branded and white-box tablets are estimated at nearly 60 million units in 2012, Digitimes Research indicated.

                        China’s white-box tablet companies will account for 81% of the overall units shipped in 2012, Digitimes Research said. Shipments of China’s brand-name tablet companies are set to reach only about five million units in 2012, Digitimes Research added.

                        Europe, the Middle East, Southeast Asia and South America are the key markets which China-based tablet exporters will target in 2012, Digitimes Research noted. The exporters, mainly white-box makers, have their products sold through local distributors and telecom carriers in the target markets. [8%]

                        Allwinner will unseat Rockchip as the top developer of tablet SoCs in 2012. Allwinner is forecast to ship a total of 22 million chips in 2012 [37%], while Rockchip‘s shipments will total 12.5 million units [21%], Digitimes Research said. Amlogic will rank third with shipments of 5.5 million units [9%],  followed by Taiwan-based VIA Technologies with 4.5 million units [8%], according to Digitimes Research.
                        Source: Digitimes Research, November 2012

                        Non-Apple tablets to drop to US$150-200 upon release of upcoming 7.85-inch iPad [DIGITIMES, Sept 18, 2012]

                        Tablets priced US$199-400 are expected to drop in price to US$150-200 in order to help non-Apple tablet makers stay competitive when Apple releases its reported 7.85-inch iPad, according to industry sources.
                        The sources are predicting that Apple will have a big influence on the 7-inch tablet market just like it currently has with its 9.7-inch iPad series and competitors will need to drop their tablet prices as well as provide more value-added features for the devices, said the sources.
                        If major tablet makers were to drop product prices they would most likely not incur losses as many makers make a substantial amount of profits from 3G plans with telecommunication providers, added the sources.
                        The sources still haven’t confirmed an exact release date for Apple’s 7.85-inch iPad but are expecting it will be early in the fourth quarter.

                        MediaTek’s Q3 sales expected to beat company’s guidance [Focus Taiwan, Sept 16, 2012]

                        … Bill Lu, a Morgan Stanley analyst in Hong Kong, expected MediaTek to ship over 200 million smartphone chips in 2013 by offering a more complete solution to Chinese handset. …

                        Another upside factor for MediaTek is growing interest in “white-box” tablets in emerging markets, which could approach 100 million to 150 million units in 2013 and drive up MediaTek’s revenue if the company can tap into the supply chain, Lu said.

                        A white-box tablet is a model without a registered brand name, which is usually sold more cheaply than branded tablets to gain traction among price-sensitive consumers.

                        Global shipments of white-box tablet PCs to reach 40 million units in 2012, say chip designers [DIGITIMES, July 25, 2012]

                        Forecast global shipments of white-box tablet PCs in 2012 have been upward adjusted from 30 million units originally to 40 million units due to growing demand in emerging markets including China, India, Thailand and Latin America, according to Taiwan-based design houses of ICs used in tablet PCs.

                        An estimated 10 million white-box tablet PCs were shipped globally in 2011, and shipments increased to 18 million units in the first half of 2012, the sources indicated.

                        Vendors/makers of white-box tablet PCs currently cluster in Shenzhen and Dongguan, southern China, the sources noted. A large portion originally made netbooks and have stepped into tablet PCs as chips and the Android operating systems have matured, the sources said.

                        White-box tablet PCs are primarily competitive in price with models launched by own-brand vendors, with retail prices standing at US$59 for 7-inch models and US$149 for 10.1-inch models, the sources indicated.

                        China white-box vendors showcase tablets at HK fair [DIGITIMES, April 16, 2012]

                        Many China-based white-box vendors are showcasing 7.0-inch tablet PC models at shipment prices of US$65-80 and 10.1-inch models at US$100-110 at the 2012 Hong Kong Electronics Fair (Spring Edition) taking place during April 13-16.
                        These white-box vendors include Dream Technology, Aocos, PCTX, HKC, Onn and Onda.
                        These tablet PC models are equipped with chipset solutions mostly developed by China-based Allwinner Technology, Android 4.0, Wi-Fi modules, 4GB built-in memory, 800×480 or 1,024×600 16:9 touch screens, plastic casings. In addition, 9.7-inch tablet PCs equipped with IPS touch screens and metal casings are priced at US$130-140.
                        If these tablet PC models are also equipped with 3.5G modules, shipment prices will increase by US$45 on average, according to white-box vendors.
                        White-box vendors indicated that they have reached combined shipments of three million tablet PCs a month.

                        China-based white-box tablet PC makers ramping up shipments, say sources [DIGITIMES, April 13, 2012]

                        China-based white-box tablet PC makers have ramped up their combined shipments to three million units a month recently, and total shipments of tablet PCs by all makers are expected to top 50 million units in 2012, market research firm eMedia Asia has estimated.
                        In Guangdong province alone, hundreds of small- and medium-size businesses have entered the development and production of tablet PCs on an OEM, ODM or OBM basis, according to industry sources.
                        With the availability of Android 4.0 platform, white-box makers have rolled out tablets in 7-, 8-, 9.7- and 10.1-inch sizes with specifications catered to customer’s demand, said the sources, adding that the models target markets in the Middle East, Southeast Asia and Latin America.
                        The white-box makers are able to deliver a 10.1-inch model, which runs on Android 4.0 and has a display resolution of 1024 by 600 and 4GB built-in storage, at FOB prices of about US$100-110, indicated the sources.
                        Shipments of tablet PCs by China-based makers totaled 14 million units in 2011, eMedia Asia said.

                        Suggested further reading: Here is a recent set of briefing documents produced by Seasize Technology Co., Ltd, formed in 2007 in Shenzhen China with roots in trading of electronic goods for export as early as 2005, see: Support [Seasize, Aug 20, 2012] 

                        Download Free
                        CHINA TABLET PC SOURCING GUIDE (English) [Aug 8, 2012]
                        This is a guide to purchasing (“sourcing”) from China, and working with Chinese factories. It will probably be most helpful to people like me – entrepreneurs developing a new product or starting a new business that need to obtain parts and raw materials from China. It is written humorously, but hopefully there is some useful advice.
                        CHINA TABLET PC WHOLDSALES MARKET 2012(English) [Aug 7, 2012]
                        This article is provided by Seasize Technology- professional tablet PC manufacturer in Shenzhen,China, exclusively to customers. You may share this information to your friends and colleagues. Seasize should not be held responsible for any information that may be misleading or incorrect.
                        CHINA TABLET SOLUTIONS INTRODUCTION(English) [Aug 8, 2012]
                        This article is provided by Seasize Technology- China popular tablet pc solutions:chips company&chips introduction. The performance of a tablet model is determined by the tablet solution. To select and source the right tablet products, you have to know the difference among tablet solutions and identify the right tablet designers and manufacturers.
                        which are giving a kind of industry insider’s view into the complex world of the Chinese ICT goods market.
                        How relevant is it? A year earlier Company Introduction [Sept 5, 2011] described Seasize Technology’s business as:
                        After years of development, Seasize technology already has a strong domestic procurement and export capacities. We are committed to provide affordable and quality digital video and GPS navigation products. Our company persist the principle of: Customer first, quality first not only meets the needs of customers and has been recognized by customers.
                        Since its inception, the company mainly engaged in two major product lines: digital audio playback systems and GPS navigation devices,
                        Digital audio and video aspects of the products covered MP3/MP4/MP5 players, digital TV set-top box, digital television etc.
                        GPS navigation devices contain : GPS navigator, GPS tracker, networking version of GPS, GPS navigation and digital TV combo products, and the recently launched GPS navigation function with Internet personal terminal device (MID).
                        Based on trade in the same time, has been developing its own brand and own technology products, after years of effort, the company has filed multiple patents in the country, and has registered the brand. Dependent on many years of trading experience and technology accumulation Seasize Technology already has more advanced ability to enter  this industry. It can be  expected in the near future that we will get a place in the relevant fields, and access to long-term development.
                        Its new profile [May 27, 2012] stated a subsequently changed description as:
                        After years of development, we have grown up into a strong company which enjoys many advantages from procurement, production and export. We have passed ISO9001:2008 certificate in year 2011 and established a standard quality system that will ensure our delivery of quality product to our customers. Our product lines include two areas: digital audio&video products and GPS-related products. We are committed to provide our customers with cost-effective solutions, whose value has been seriously balanced against its prices.
                        and then there is a SOURCING GUIDE-Android Tablet pc,tablet pc,wifi tablet pc,google tablet pc,tablet pc review,wholesale tablet pc [Aug 8, 2012] page which was quite probably the marketing campaign page for the above documents with leads generated via registrations for each, with more direct indication of the China Tablet Solutions Introduction [Aug 8, 2012] as well as another one of Risks of Doing Business in China.
                        Seasize therefore is definitely trying to expand its purchasing business as well, so its documents could be valuable, even sufficiently authentic for those people who are potential partners of Seasize. As such these documents might describe the purchasing situation over there for everybody else as well. For Seasize’s track record of activities see: Seasize Technology Co., Ltd.: Newsletter Archive [May 31, 2011 – Aug 7, 2012 and beyond].

                        4. The Allwinner advantage 全志

                        image珠海 Zhuhai 全志科技 Allwinner Technology (150 ~ 499 employees) — 148 campus hirees only for 2013 (click here for a full content) recruited with a roadshow held in:
                        – 西安 Xi’an: at 西安交通大学 Xi’an Jiaotong University (XJTU) on Sep 18; at 西安电子科技大学 Xidian University on Sept 21
                        – 哈尔滨  Harbin: at 哈尔滨工业大学 Harbin Institute of Technology on Sept 25
                        – 武汉 Wuhan: at 华中科技大学 Huazhong University of Science & Technology (HUST) on Sept 22.
                        – 广州 Guangzhou: at 华南理工大学 South China University of Technology (SCUT) on Sept 17, at 中山大学 Sun Yat-sen University TBD
                        – 成都 Chengdu: at 电子科技大学 University of Electronic Science and Technology of China (UESTC) on Oct 11.

                        image

                        From jobyun.com:
                        = US$ 1,113

                        Company Overview of AllWinner Technology Co., Ltd.
                        [Bloomberg Businessweek]

                        AllWinner Technology Co., Ltd. engages in mixed-mode SOC technology research and VLSI design. The company’s products are used in high-definition television and digital photo frame markets. It also provides support services. The company was founded in 2007 and is based in Zhuhai [Guangdong province], China.

                        From: AllWinner Technology Selects ARM Cortex CPU and Mali GPU Technologies To Bring Integrated SoC To Android OS-Based, Connected Consumer Devices [ARM press release, April 12, 2011]

                        AllWinner Technology Co., Ltd was founded in 2007, and is engaged in mixed-mode SOC technology research and VLSI design.  AllWinner Technology is dedicated to be the major leader in the HD media field, to excel in low-power VLSI design, advanced technology and innovative architecture; to be the pulse of the consumer market, with a unique understanding of self-developed core technologies.  Through functionality, performance and cost advantages of integrated products and the industrialization of the operational capabilities of the market to provide customers with leading designs and services from SOC products to comprehensive solutions. 

                        From: Zhuhai sez daily: Gan Lin investigated in high-tech zones “two little two two high” enterprise [Allwinner press release, June 10, 2010]

                        Gan LinParty Secretary of Zhuhai city … accompanied by director of the CMC Qiu Shi, successively investigated the Kingsoft Park (Jinshan Software Park) project site, Xuan Garment Co., Ltd. Design Center, BOXlight (Po Wright) Medical Technology Inc., Tin Shui Power Technology Limited, Allwinner Technology Co., Ltd. and Bioenergy Limited. …
                        Zhuhai Allwinner Technology Limited is committed to becoming a leader of application requirements in the area of key technologies for HD multimedia and communication networks, radio and television networks, and the Internet “triple play”; specializes in low power VLSI design capacity of independent research and development of core technologies, has completely independent intellectual property rights. According to the General Manager [Chairman and CEO] of the company, Zhang Jianhui (张建辉), the Allwinner company was established in 2007. In the first two years to April 2009, the company had been working hard on technology R & D and did not earn a penny, then launched two categories for the introduction of a series of nine full HD network integrated smardescriptiont chips in order to become one of the leading manufacturer of ultra-large-scale system-on-chip and embedded software technology.

                        The roots of the Allwinner Technology:

                        May I ask [about] Zhuhai [珠海] Victory Technology [全胜 科技] – How can I like it? [http://laoyaoba.com in Chinese, Oct 23, 2010]  

                        Looking for a job, this company has come to our school, a little want to go, but I don’t know how on Earth is this company, [since there is] almost no information on the Internet, looking for an insider look, appreciate it!

                        The entrepreneurial team of Zhao Guangmin[赵广民先]’s [Zhuhai] Actions Semiconductor Co., Ltd. was brought over after Zhao’s unfortunate, untimely death. The Zhang Jianhui[张建辉]-led team, however, is still very strong in the Chinese semiconductor industry. It began to grab the PMP [Personal Media Player >>> MP3 etc.] market share last year, and it is estimated that [its] revenue this year should be around $ 30 million ….

                        The life and spiritual heritage of the legendary Chinese IC design industry leader Zhao Guangmin [Baidu in Chinese, Aug 27, 2007]

                        … In early 2006, Zhao Guangmin left Actions, where had been working for a number of years, and with a number of like-minded partners co-founded Victory (Zhuhai) Microelectronics Co. as chairman with aspirations to win a new peak. …

                        Actions pass the sudden departure of founder, investors have been excluded [VentureData.org, April 4, 2006], the picture of Zhao Guangmin below is from this source which is the Chinese origin of this material below:

                        Led the company successfully landed on the Nasdaq after 4 months, founder of Zhuhai Actions Semiconductor Co., Ltd. (hereinafter referred to as “Actions”), Zhao Guangmin [then vice chairman of the company] suddenly announced his resignation.

                        Zhao Guangmin the early 1980s graduated from Xi’an Jiaotong University, has a number of Semiconductor companies in the office. Zhao Guangmin founded in December 2001 and served as general manager [not CEO] of Actions. Actions a total investment of $ 10 million, primarily engaged in the development of VLSI design and test production. Taiwan-funded by the holding of shares in which Zhao Guangmin unknown.
                        Under Zhao Guangmin leadership, relying on keen to capture the opportunity to MP3 chips, Actions to achieve rapid development. In 2002, Actions Semiconductor sales only 1.08 million yuan [US$ 130K]; in 2003 sales increased to 4,000 million [US$ 4.3 million – see the chart later]; in 2004 sales soared to more 460 million [US$ 55.5 million], net profit up 200 million yuan [US$ 24.1 million].
                        At the same time, Actions also introduced more than a dozen proprietary chip. In 2004, the company was selected as the China Semiconductor Industry Association, the annual top ten IC design companies. To the fourth quarter of 2004, Actions in the global chip market share in the first MP3.
                        November 30, 2005, to Actions as the main Action Semiconductor Co.Ltd (Nasdaq: ACTS) in the U.S. Nasdaq market, the first phase of financing $ 72 million. Since listing, the market responded well to the Actions, and there have been investment banking analyst cut its rating to “buy.”
                        Actions with the same period of rapid development and to the patent dispute. Zhao Guangmin issue in the mail two days before departure, the U.S. International Trade Commission a preliminary ruling, Actions part of the audio processor infringes two U.S. SigmaTel’s patents. SigmaTel is the world’s leading mobile phones and digital audio players, chip vendors, the company early last year to the U.S. District Court in Austin, sued Actions Semiconductor infringed its patents.
                        “Now I can not say anything, but to leave and certainly nothing to do with the lawsuit.” Zhao Guangmin side of the phone hesitantly.
                        Zhao reasons for leaving, Actions official answer is “retired.” One of the company staff responsible for media relations, said, “Although less than the retirement age, but Zhao fame in this industry has made the decision to retreat is also very natural.”
                        However, close to Zhao Guangmin the industry does not think so. He said that Zhao’s departure and the investors.
                        The source said, as early as Actions Prior to listing, to facilitate investment in the idea of ​​a replacement company executives. Public information, Zhao Guangmin general manager of the term of Actions of August 2005, is the company going public push. Zhao’s successor as general manager, is working with many years experience in the semiconductor industry, China Taiwan nationals Yenan Hong.
                        On this course, after listing a media interview, Zhao Guangmin stunned: “In order listed, and sometimes take their cut first!”
                        According to Zhao said, in order to make more in line with investors Actions taste, Actions update prior to listing a number of board members and executives. Most of these people in the chip industry has a deep background and is familiar to foreign investors, including former vice president of operations SMIC Chiu Tsz Wan.
                        Interestingly, in the Actions of the prospectus, as the founder of Zhao Guangmin not appear in the list of shareholders, executives, Zhao’s team did not name.

                        Further explanation is given here, only two sentences are important to quote (the picture of Zhao Guangmin below is from this source which is the Chinese origin of this material below):

                        … [Till] June 2005 Zhao Guangmin has been Actions’ general manager, [then] since June to become vice president, and in November the company officially listed [that] Zhao Guangmin had [been] transformed into a vice chairman. … In fact, although Zhao Guangmin since 1993 as was general manager of Zhuhai Actions, but he has had no control of the company, the company has had been in a firm grip on the hands of equity investment in Taiwan.

                        Note that Actions is a still existing company keeping its description as under Zhao Guangmin’s leadersip: About Actions [Sept 6, 2005]

                        … Actions has successfully put into market some products, such as digital audio/video SOC chip and its total solution, a series of IC for digital potential meter, SOC chip for TV entertainment products and its total solution, … etc, since the first day it was found. All Actions’ products are under the protection of intellectual property law, and have been gradually showing their competitive power after directly joining the international market.

                        With management and techniques accumulated, high-tech and product positioning, precise market position, strong innovative power, Actions sustains fast improvement and development. In 2003, Actions was identified as one of the top 10 fastest growing IC design companies within the China area by the China semiconductor association; the same situation will happen again in 2004 as well.

                        Actions’ latest product developed under his leadership: Actions Introduces New Video Technology — Advanced Media Video (AMV) [Actions press release, April 10, 2006]

                        … provides comprehensive mixed-signal system-on-a-chip solutions for portable consumer electronics, today introduced a new generation of video technology, Advanced Media Video-AMV3.0.  This new technology supports a higher degree of picture resolution (QCIF i.e. 176 x 144), a better display of motion picture than the AMV1.0 and 2.0 technologies, and is capable of converting SWF files and other regular movie formats.  This technology was developed specifically to be the video engine for Actions’ new 9 series SoCs.
                        The history of Actions’ audio and video technology can be traced back to 2004, when Actions introduced two video technologies, MTV1.0 and MTV2.2, ahead of a majority of its competitors. This breakthrough innovation of Actions had risen the technology playing field of the entire digital music industry to a higher level.
                        “Although our current 9 series SoCs require conversion software to enable playback, our next generation of SoC products, embedded with a MIPS core, will support direct streaming video playback.  With the benefits of a MIPS core, the data processing speed will be much faster,” continued Mr. [John] Lee [Senior Product Manager of the company].
                        “The advancement of our MIPS core technology will remain consistent with our development in AMV4.0.  Furthermore, based on the MIPS platform, both the design house and the manufacturer will be able to freely take full advantage of their expert technology, thus providing them with a favorable position in a fiercely competitive market,” concluded Mr. Lee.
                        Here is the “Proven Management Experience and Expertise” slide (#11) from the May 2006 Corporate Overview of Actions presentation. Note that this was immediately after the departure of Zhao Guangmin and there were three managers from the original founding team, neither of them with executive power (as evidenced by EDGAR submissions), and only Shao Chuan (Shawn) Li is still with Actions as a director of the board (since September 2005) but more importantly as Chief Technology Officer (since the establishment of Actions in December 2001), while Zhang Jianhui was the head of Multimedia Division and as such he was the topmost manager with core innovation competency, and it was no surprise that he left Actions when Zhao Guangmin established his next venture, Victory (Zhuhai) Microelectronics Co. which after his death became the current Allwinner managed by Zhang Jianhui. (There is no information about Gong Hui.) Note as well that at the time of that presentation Actions had 280 employees; 210 engineers with IC, system, and software capabilities.
                        image
                        imageIt is quite remarkable that after Zhao Guangmin’s departure Actions went into decline as visible from the chart showing the revenues generated by the company. With $150M in 2005 Actions was the second-largest China-based fabless company. Employing not less than 280 people in 2006 the new Taiwanese executive duo of Nan-Horng Yeh as CEO and David Lee as CFO (both educated in the United States) have completely failed. This is all despite of their strategy to move into midrange products by developing mobile TV SoCs via licensing core technology from U.S.-based Mavrix Technology. See: SoC firm finds fertile ground in China [EDN, Aug 22, 2006]. This licensing decision led only into an industry sideline with stronger external reliance on MIPS processor cores (originally selected by Zhao Guangmin in July 2005 as the vice president, but for fast internal development) and a subsequent, necessary acquisition of Mavrix as licensee in 2010. Paradoxically Mavrix’s CEO, Dr. Zhenyu Zhou became even the CEO of Actions in December 2011. Only David Lee has still a high-level position with the company as chairman of the board. The future outlook for Actions is also rather uncertain as only a single analyst had any interest in the company’s Q2 2012 Results Call [Aug 7, 2012].

                        What a contrast with Zhao Guangmin’s new company which became after his death today’s Allwinner. Here is the Commemorate [what] Zhao insisted: a win-win situation, team together and do things realistic [Aug 24, 2007] by his deputy (??) and effective successor in charge of his Victory Microelectronics Co., Ltd., Zhang Jianhui:

                        Zhao went away from us, the circle of friends chatted about Zhao, and so far we are still unable to accept that this is a fact. Remembered Zhao, in addition to in the legendary entrepreneurial experience at Actions, we talk about the most, is the insistence of Zhao and low-key.
                        Speaking of the insistence of old Zhao, when Zhao won the Zhuhai Special Economic Person of the Year in 2004, in an interview he said: “As long as you choose the right direction, be sure to persist in walking, did not insist on was not successful.” It is this insistence on belief and perseverance of action which created Zhao’s unusual success story.
                        First, Zhao insisted on the concept of win-win, through the development of core IC products to add value for the customer, and industry chain downstream supporting enterprise vertical and horizontal, building win-win business model among enterprises, resulting in overall lead between the company and the customer.
                        Zhao served as general manager of Actions by virtue of more than 10 years accumulated of IC design and enterprise operating management experience. He led there a well-trained professional operating team to share common goals, to carry out efforts with hard work, to get global semiconductor industry attention via achievements. This made Actions from an unknown small company, in just a few years, China IC design industry’s  first to become a globally known enterprise. The MP3 multimedia master chip R & D accounted for more than 50% of the world market share. This led to billions of dollars via the quick formation of the MP3 industry chain in China, prompting mainland China to become world’s major export base of MP3 which has brought tremendous development and benefits to the consumer electronics industry [here].
                        This was for the first time as a mainland China IC design company established itself in the field of global consumer electronics products, mastered and mass provided the core technology products with international advanced level. Actions’ operating income grew significantly from a few million yuan in 2002 to 1.2 billion yuan in 2005, [thus] creating rapid growth of more than 100 times for the Actions Semiconductor in three years only, and [then] eventually prompting the success of Actions to be listed on NASDAQ.
                        Second, Zhao insisted on the need to uphold the integrity of the fundamental values [which] can be established between the team and the customer, [on the] long term sustainable growth of business culture, [that] the strength of the team is always greater than the power of any individual.
                        In the early venture days of Actions Zhao personally wrote a column for the internal publications, talked about the issues of development ideas and the reform of corporate culture, and also to encourage other executives to write articles for publication. Fixed each Wednesday [?his?] commuting leadership talked about the exchange of business issues, to develop common thinking habits and language of communication – because every time before this would open, the kitchen will cook a pot of noodles as participants of dinner, affectionately called “noodles will”.
                        This will sometimes be open until two o’clock at night, and the truth is argued more and more out; companies and departments use the monthly regular meeting with employees face-to-face communication. After a year passed, not only everyone has made great progress, but he also formed a fully functional teamwork of high degree of homogeneity and quality, great combat effectiveness of entrepreneurial backbone of the team, and subsequently laid a very good foundation to the success of the company.
                        Third, Zhao insisted on doing anything seriously, down-to-earth. He used to say that a 99.99% working IC is still not working. Design paradoxes are in place, it is where the BUG. In 1995 I and old Zhao did cooperative research and development projects for the first time. I was responsible for the system design, Zhao for the circuit design. There was no RTL coding method as now, the circuit was built by human hand structures. Zhao’s design adhered to repeated scrutiny and carefully optimized design logic based on clear, simple drawing. Sometimes he explained to me where is the circuit of the collar, which is the heart of the circuit and the limbs, old Zhao could meander, and the favorite circuit design is input ready.
                        It is quite unfortunate that China’s IC design industry has lost an outstanding leader, and friends lost an honest, down-to-earth best friend. However, true to Zhao’s spirit, I believe in increasing prosperity and burgeoning growth of Chinese IC design, offering useful lessons and inspirations, and I believe this will also correspond to Zhao’s heartfelt wishes and expectations.
                        Mr. Zhao Guangmin may rest [in peace] .
                        Author: Zhang Jianhui, Victory Microelectronics [全胜] Co., Ltd. (Zhuhai), general manager, for the friends and colleagues of Zhao Guangmin years
                        For more information see Mr. Zhao Guangmin Memorial page [Aug 29, 2007] of eMedia Asia Global resources. Note from there that he entered the university in 1977 which is the first year of entry after the Cultural Revolution when only exceptional people were able to enter the universities. More explanation about that phenomenon see in Yoshida in China: Cultural rev survivors leap forward [EE Times, Oct 1, 2012]

                        Allwinner’s close cooperation with ARM Holdings started with Victory Technology selects ARM processor for ultra-low-power high-definition network video applications [joint press release available only in Chineese on eetrend.com and elsewhere, Feb 9, 2010]

                        ARM926EJ-S processor to achieve high-definition video processing while reducing power consumption by up to 50%.
                        Zhuhai Victory Technology Co., Ltd. (referred Victory Technology) and ARM [(LSE: ARM); (Nasdaq: ARMH)] today jointly announced: Victory Technology licensed the ARM926EJ-S ™ processor for its IC design for ultra-low-power high-definition network video applications. These applications include: home Internet video streaming via the Internet, cable television and wireless network high-definition video player and other network video equipment.applications include: home video streaming via the Internet, cable television and wireless network high-definition video player and other video devices on the network.
                        Victory CEO Zhang Jianhui said: “In addition to the well known high-performance and low-power characteristics, another important feature of the ARM ® processors is versatility, they can bring better scalability, reducing the workload and difficulty of development, and shorten time to market. These features help us design IC products for the fast-changing Internet video applications, and are very important. ARM has always spared no effort to promote innovation through its strong product planning, which provides an opportunity for us to further cooperation in the future. The resources required to design the system is very rich around the ARM ecosystem, and we are very confident in each other’s cooperation capability that it will be successful.”
                        With more and more Chinese consumers having broadband access at home or on the move, China’s Internet video applications market is developing very rapidly. With rich experience in the field of video processing technology, as well as a deep understanding of the market, combined with ARM’s top high-performance, low-power processor technology Victory Technology has the capability to meet the standards and local consumer demand to develop IC products for the high-definition Internet video equipment. Through the use of excellent performance at low power consumption of ARM926EJ-S processor as well as Victory Technology’s ultra-low-power design techniques, the company hopes that its new chip can achieve 50% of energy consumption savings versus the similar products on the market, without sacrificing performance needed for HD video streaming on the Internet.

                        Brief English content appearing about the same on Sept 26, 2012:
                        Gan Lin, Party Secretary of Zhuhai, Visited Allwinner Technology

                         

                        全志科技

                        全志科技

                        Gan Lin, Party Secretary of Zhuhai, accompanied by several other leaders, visited Allwinner Technology on June 10, 2011.
                        During the visit, Gan gave Allwinner Technology credit for its independent R&D and spirit of leadership in technology. He pointed out that Allwinner Technology should continue embracing innovation to boost its competitive edge and accelerate the development of strategic emerging industry.

                        A10 won “The Most Promising Award” on the Sixth “China Chip” Ceremony [Allwinner press release, in Chinese: Dec 31, 2011, reproduced in English: Sept 26, 2011]

                        Allwinner Technology A10, xPad SoC of High Integration and High Definition, has won “The Most Promising Award” in China IC Industry Promotion Conference 2011, also the sixth “China chip” ceremony held in Jinan on December 16th.
                        The China Chip hosted by the Software and Integrate Circuit Promotion center (CSIP) of Information Industry Ministry, is a rather influential ceremony among domestic IC enterprises, experts, as well as other manufacturers involved in the industry chain. More than three hundreds enterprise representatives attended this ceremony.
                        On the basis of striking video codec technology, DVFS, multi-core multiplexing technology, and advanced 55nm process, A10 outruns other competing solutions in its high integration, and outstanding multimedia and network processing capability. It supports 3D video playback, 2160P ultra-HD video decoding and 1080P HD H.264 video encoding, multi-screen, and integrates full-format audio codec engine, rich A/V outputs such as HDMI, LVDS, VGA, TVOUT, etc, and memory interfaces such as DDR3, DDR2, LPDDR1, NAND flash, etc, plus its edge in BOM and power consumption, it becomes one of the most favored solutions after marketing for several months, and is honored “the most promising” solutions in this ceremony.
                        Zhang Jianhui, General Manager of Allwinner Technology, said that this award bears testimony to the efforts Allwinner has made in the past few years, and will definitely encourage Allwinner to come up with better solutions to meet customer demand, and carry forward the IC industry.

                        Allwinner Technology and ARM working together to get to market quicker [ARM’s Multimedia blog, June 19, 2012in Chinese on Oct 4, 2012]

                        Attached ImageThe dynamics of the mobile device industry can be seen in the rise of tablets and in particular the growth in Android based tablets. This new form factor has grown to an expected 100M shipping volume in 2012 with this being projected to exceed 200M by 2016 – when Android tablet shipments is expected to be over 50% (Source: IDC). This new form factor and pace of change have opened up opportunities for new companies to offer specific System on Chip (SoC) businesses a chance to address this market. Allwinner Technology Co., Ltd.is one of these. Over the last 12 months Allwinner Technology has become one of the major China Android tablet SoC chip vendors, with many of the Android tablet OEM system makers adopting our chip and system solution. A key industry analyst in China expects 40M Android tablets to ship in the China grey market in 2012, and it is expected that 60% of the share will be from Allwinner Technology.
                        Attached ImageThis rapid time to market has been achievable through the close working relationship and usage of ARM Intellectual Property (IP). Allwinner Technology uses a combination of the ARM CortexTM-A8 and ARM MaliTM-400 MP. This combination enables Allwinner Technology to balance the required performance needs for tablet applications with the power consumption boundaries of a mobile device. By working with ARM for both CPU and GPU elements Allwinner Technology have been able to maximize the benefits of both high performance with low power consumption that ARMs years of knowledge in the mobile device market brings to new entrants to the market.
                        Allwinner Technology has gone from the licensing [in April 2011] of the Mali-400 to production silicon in 7 months . This speed of execution has been enabled by the close linkage between the CPU and GPU from a design perspective, the RVDS [toolchain, the legacy solution for software development on older ARM processors replaced by the new ARM Development Studio 5, DS-5] and ARM DS-5TM toolchain [comprises tools such as the best-in-class ARM C/C++ Compiler, a powerful Linux/Android™/RTOS-aware debugger, the ARM Streamline™ system-wide performance analyzer and real-time system model simulators, all conveniently packaged in a user friendly integrated development environment (IDE) based on the Eclipse] and the out-the-box quality software drivers which are all supported by localised support teams. All these elements combined have enabled Allwinner Technology to move swifter and in an agile way to address the needs of this market and we look forward to working with ARM going forward.
                        Attached Image
                        Guest Partner Blogger:
                        Jack Lee, CMO, Allwinner Technology Co., Ltd.

                        ARM gaining traction in GPU IP market [DIGITIMES, June 22, 2012]

                        … ARM has expanded its GPU licensee base at a fast pace, according to Kevin Smith, VP of strategic marketing at the firm’s media processing division. Taking the China market as an example, ARM’s Mali GPUs are currently shipping in over 70% of graphics-enabled digital TVs, 50% of Android tablet PCs and 20% of Android phones, said Smith.
                        ARM’s partners are forecast to ship more than 100 million Mali GPUs in 2012, up over 100% from 2011 levels, Smith indicated. The anticipated shipment rise – driven by brisk demand for Android smartphones and tablets, and China’s growing smart-TV market – will boost ARM’s presence significantly in the global GPU-IP market this year, Smith added.
                        ARM’s Mali GPUs are targeted at smart TVs, handsets and tablets, which require high-definition graphics and higher picture fluency, Smith stated. The product line has been enhanced to meet various customer needs such as high-resolution images, multi-game offerings and energy saving, Smith said.

                        Combining with ARM’s CPU platform, the Mali GPU technology comes with additional features such as power efficiency, Smith noted. The combination is able to generate a complete multi-IP solution, Smith said.

                        In addition, Smith indicated that ARM’s solutions are able to help system customers speed up time-to-market. For example, it took less than half a year for both China-based AllWinner Technology and Rockchip Electronics to launch their integrated CPU-GPU SoC solutions targeting the local tablet PC market, Smith said.

                        New ARM DS-5 v5.9 Toolchain Provides Developers With an Integrated Processor and GPU Software Optimization Platform For Mobile Gaming [ARM press release, March 5, 2012]

                        ARM today released the latest edition of the ARM Development Studio 5 (DS-5™ v5.9) toolchain with additional support for graphics analysis on ARM Mali Graphics Processing Units (GPUs). The toolchain can be downloaded by developers today, enabling them to achieve integrated optimization across the whole system, including both the applications processor and GPU. The ARM DS-5 v5.9 toolchain provides significant benefits to semiconductor suppliers and OEMs, as well as mobile application and game developers, by enabling improved system visibility and decreased time-to-market. In particular, the ARM Streamline™ Performance Analyzer, within the DS-5 toolchain, allows developers to design more interactive interfaces and immersive game play for end users whilst extending battery life. This will enable next generation user experiences for use on smartphones, tablets, smart-TVs and set-top boxes.
                        The launch of the updated toolchain addresses the increasing demand for high-performance graphics development. Such advanced visual computing capabilities will deliver next generation smartphone and tablet applications where console-like gaming graphics, 3D User Interfaces (UI) and Augmented Reality (AR) will be the norm. Multicore systems, such as these, benefit from optimization of intensive tasks where integrated applications processor, GPU and memory subsystem designs can be configured to achieve the highest levels of performance and energy-efficiency.
                        By using the ARM DS-5 v5.9 toolchain, developers can quickly and easily locate system performance bottlenecks across the Cortex processors, Mali GPUs and System IP, enabling the creation of faster applications and accelerating the software development cycle.
                        … [additional information: Developing Top Performing Graphics Applications for Android Made Easy [ARM’s Software Enablement blog, March 7, 2012] and

                        ARM Launches Free Toolkit For Android Application Developer Community [ARM press release of the DS-5 Community Edition, Nov 28, 2011]]

                        The first Allwinner A10 tablets came to the market from a number of vendors in November 2011. See just these reports by Micdigi from China:

                        In December more tablets of that kind came to the Chinese market as Micdigi reported:

                        The tablet based on Allwinner A10 processor and 5-point touch capacitive screen [Dec 7, 2011]

                        Recently, Allwinner tablet PCs are so popular. 7-inch capacitive screen tablet based on Allwinner [Cortex-]A8 solution sells for only $80.

                        Now I will introduce a tablet based on Allwinner A10 from Shenzhen HongYuXing.

                        Based on Allwinner A10 processor, Q780 is launched [Dec 8, 2011]

                        Allwinner A10 has so good cost performance that it is the most suitable chip for entry level tablet PCs.

                        Q780 from Shenzhen Xlong is launched.

                        Allwinner A10 tablet—PC741 [from Shenzhen Inote] [Dec 12, 2011]

                        Now the tablet chips are like a hundred flowers in bloom, like ten thousand horses galloping ahead. Allwinner A10 appeared late in the market but they came back. At present most of the tablet PCs from China are based on Allwinner A10 chips.

                        Q701 based on Allwinner A10 [Dec 16, 2011]

                        With cheap price and powerful performance for video playback, Allwinner A10 processor is popular in the world.

                        Q701 is introduced Allwinner A10 processor.

                        Then the events unfolded as follows:

                        Based on high cost performance, Allwinner A10 has good sales after the Spring Festival. The chips with high cost performance are welcome.

                        AMLogic based on A9 core is a high-end chip, which is introduced by SONY and Philips.

                        RockChip chips became cheaper and cheaper since Allwinner released A10.

                        As the first chip of Allwinner, A10 is released with cheap price, which makes it has good sales. Allwinner is a famous company in MP3 times so that Allwinner has a strong customer base.

                        In addition, A10 has few bugs since it is released. The performance of other chips is not stable in the beginning, such as RK2808 and VIA8505.

                        The agents who have ordered VIA chips go to order Allwinner A10. VIA will release VIA8850 next month [but mass production just started in June, see later] which is based on A9 core. The performance is not different from A10. It means that it does not have any advantage.

                        VIA8850 will be cheaper than Allwinner A10. Allwinner will release A13 to compete with VIA8850 so that VIA will get in a difficult position. [Was more expensive the the A13 when  mass production started in June, see later]

                        MTK will release MTK6575 which is the upgraded version of MTK6573, based on dual-core, 1GHz frequency and A9 core. The chip with excellent call function is mainly introduced by smart phone. It is also suitable for tablet PCs.

                        AMLogic will release AMLogic M6 and RockChip will release RK30XX. They are all dual-core chips.

                        [for RK30XX  and the earlier RK29XX and RK28XX see MWC 2012: Fuzhou Rockchip Electronics [this same ‘Experiencing the Cloud’ blog, March 13, 2012] where it is stated: Samples of the Rockchip RK30xx platform will be available in March 2012]

                        At present, there are few new products in the market, but many new products will be released in May.

                        As Allwinner A10 solution is so cheap, it is introduced by most of Chinese tablet PCs.

                        The Allwinner A10 PCBA from Shenzhen Crownho sells for about $27.

                        With this PCBA, the cost price of the tablet will be less than $64, such as DA701 [tablet] based on capacitive screen, which sells for about $63.5.


                        INSERT ABOUT THE CURRENT AND FUTURE SoC COMPETITION

                        Competitive SoCs from Chinese vendors that were available in March’12 or came soon after March’12:
                        Amlogic 8726-MX (dual core), 8726-M3; Rockchip RK3066(dual core), RK2918Source: http://www.eeworld.com.cn/xfdz/2012/0725/article_14042.html
                        (A10 $7, A13 $5)image

                        Among those competitors the Rockchip RK3066 (dual core) became a market leader in China on its own as was already shown in the very beginning by the example of Window N90 Dual Core II 2 (16G) leading the dual core market in China:

                        No surprise therefore that this is also a kind of leading product on the global market as shown by Merimobiles:
                        List Price: $399.99 Your Price: $214.99 (with shipping)

                        First Review – Window N90 Dual Core II 2 – RK3066 IPS – Purchase at: Merimobiles.com [MrTasselhof YouTube channel, May 24, 2012]

                        while the Benchmarks Review – Window N90 Dual Core II 2 – RK3066 IPS – Purchase at: Merimobiles.com [MrTasselhof YouTube channel, May 24, 2012] is:

                        Window N90 II – Dual Core – SlateDroid Forum: – http://www.slatedroid.com/forum/337-window-n90-ii-dual-core/ Window N90 Dual Core II – WiFi Benchmark Results – http://www.slatedroid.com/topic/33590-benchmarks-window-n90-dual-core-ii-wifi… Window N90 Dual Core II – Internal Components Pictures – http://www.slatedroid.com/topic/33614-window-n90-dual-core-ii-teardown-compon…

                        and the global dual-core competition represented by Merimobiles as follows:

                        Window N90 Dual Core 1.6GHz RK3066 9.7 Inch Comparison Chart

                        imageNote that for the 1.5GHz Windows N70 (as opposed to the above 1.6GHz version available globally) the AnTuTu v2.4 benchmark on the PConline is on the right (see also: AnTuTu Benchmark):

                        Since a multiple core Cortex ARM based Allwinner SoC will come just after those SoCs (“processors” – as named wrongly) shown in the table above, given the credentials of Allwinner presented in this post I dare to predict that the next-generation in the “A series” SoCs from Allwinner will beat the Rockchip RK3066 (or RK30XX in general) and others. There was just one concrete rumor recently: Ampe Allwinner Cortex-A7 Quad-core Tablet is Coming [ChinaEshops.com, July 12, 2012]

                        Rockchip and AMLogic dual-core tablet come out to snatch the tablet PC market while AllWinner dual-core tablet keeps in silence. Although Allwinner A10 & A13 still hot in the middle-low end market. Rockchip RK3066 and AMLogic AML8726-MX has already listed for two months from the beginning of May. Now these two chip still mainly occupy the china dual-core tablet PC market. Freescale’s quad-core tablet PCs begin to launch, even Tegra3 quad-core.  Obviously, allwinner may it is late for launch dual-core, but it doesn’t mean that Allwinner will give up dual-core tablet.  Allwinner will launch Quad-core chips in August. Latest news report that AMPE will launch a new 10.1 Inch IPS Tablet PC equipped with allwinner quad-core processor.
                        According to latest report the allwinner quad-core is using ARM Cortex-A7 structure. …
                        max says: August 8, 2012 at 8:43 pm
                        any news on this.
                        chinaeshops says: August 31, 2012 at 5:11 pm
                        Sorry, it is coming soon
                        .

                        As a matter of fact the Cortex-A7 was meant to be a companion ship for the Cortex-A15, all targeted for 28nm TSMC technology which is in extremely tighty supply at least till the end of the year. On the Cortex-A7 Processor—Related Products page we can find (among other things) that:

                        Physical IP

                        ARM Physical IP Platforms deliver process optimized IP, for best-in-class implementations of the Cortex-A7 processor at 40nm and below. A set of high performance Processor Optimization Packs (POPs) containing advanced ARM Physical IP for 28nm technologies to enable rapid development of leadership physical implementation supports the Cortex-A7 processor. ARM is also working early to assure a roadmap to 20nm optimizations. Optimization packs support ARM’s strategy of offering specifically targeted Physical IP to enable Partners to achieve tuned implementations of ARM cores. ARM is uniquely able to design the optimization packs in parallel with the Cortex-A7 MPCore processor architecture, enabling the processor and physical IP combination to deliver workstation class performance in a mobile power envelope while facilitating rapid time-to-market.

                        But according to the later ARM Expands Processor Optimization Pack Solutions for TSMC 40nm and 28nm Process Variants [ARM press release, April 16, 2012] Cortex-A7 PoP became available for both “TSMC 40LP” and “TSMC 40 LP high speed options” type of process technologies (where LP stands for “Low Power”). This practically means that Allwinner can indeed deliver by this time its next-gen SoC at 40nm.

                        Breaking news:

                        1. Quad-core tablets large chaos department: Allwinner quad-wide prototype will debut in November [Bolopad.com, Oct 3, 2012]

                        Before beginning I have to say to you: “I’m sorry”. Because last week we happily told everyone interested in quad-core prototype that it appeared in September, and it is not far from the days of mass production. But yesterday your editor suddenly received a mysterious call to be informed that the Allwinner quad-core prototype can’t come in September, it is estimated to be out in November to meet with you. I really wanted OOXX to be cursed to death (thought better of course).

                        2. Exclusive: Allwinner quad-core processors code-named A15X coming soon [Bolopad.com, Sept 18, 2012]

                        All right, now that the product finally appeared, we at Bolopad are also excited and highly interested in the quad-core chip code-named A15X (don’t get me wrong, this A15X has nothing to do with Apple A15 [rather Cortex A15 wrongly percieved by many to be in the A6 SoC of the iPhone 5]). Now the related PCBA layout began to take shape, the chip samples came out and so on. Last reportedly bounced because the Allwinner quad-core is dependent on [Cortex] A7 architecture build, but as 40nm and 32nm was short of the desired effect, the 28nm tapeout eventually came in to achieve the desired results.

                        END OF THE INSERT ABOUT THE CURRENT AND FUTURE SoC COMPETITION


                        NOW BACK TO THE CADENCE OF
                        ALLWINNER A10-RELATED EVENTS & INFORMATION:

                        An even bigger market push started when Allwinner A10 with the Android 4.0.3 Software Development Kit was officially launched on March 10, 2012. From the press release:

                        TSMC’s 55 nanometer “half generation” derivative of the 65-nanometer process technology directly miniatures 90%, including input/output and analog circuits, for customer provides competitive advantage with single die cost significantly reduced, while can also save power consumption by 8% at the same speed of operation.

                        As it was reported later in Taiwan: Allwinner Technology Introduces New SoC Platform on TSMC 55nm Process [CENS, March 29, 2012]

                        Allwinner Technology Co., Ltd., a leading supplier of high-definition media semiconductor solutions headquartered in Shanghai [Zhuhai, as the contact address is: Block 1 Software Park, Zhuhai City, Guangdong Province, B6, four], recently released a new system-on-chip (SoC) platform based on Taiwan Semiconductor Manufacturing Co.’s (TSMC’s) 55nm process technology.
                        The platform, codenamed A10, employs advanced SoC design technology to integrate central processing unit, graphic processing unit, high-definition multi-frame video engine, 3D multi-screen engine, and high-speed video interface module on a chip.
                        Equipped with Allwinner’s Android 4.0.3 Software Development Kit, A10 consumes fewer energy to achieve higher computing efficiency on mobile devices.
                        Using TSMC’s 55nm process technology, A10 is able to deliver quality dynamic voltage frequency scaling (DVFS) performance and brand new video management capability on mobile computing devices, and extend battery lifespan of the devices.
                        TSMC’s 55nm process shrinks geometry of integrated circuits, including I/O, on chips by 90% as compared with chips with 65nm process, considerably cutting down cost of every single chip and saving electricity on a chip by 8% relative to competing chips.
                        Allwinner General Manager Zhang Jianghui pointed out that TSMC has been a reliable partner supporting Allwinner in product production, quality and lead time.

                        Allwinner Technology-A10 [product page, April 13, 2012]    The full Jifh A10 chip

                        In A10 Allwinner used 55nm technology, the integrated chip has four times full HD [i.e. the 2160p “Quad HD”] video decoding technology, smart power management system CoolFlex, HD multi-screen display processing and output, efficient and high-speed system architecture, mixed analog-digital high-speed signal design and integration of advanced technology, and integrated, smart power balance, and more items of leading technology. A10 is mainly used in tablet PCs, high-definition players, smart phones, network set-top boxes, smart TV machines.
                        With A10, Allwinner Technology will drive SoC into a brand new era of connected Smart HD which can enhance the application of connected HD SoC as well as user experience of electronic multimedia products. A10 is offering MULTI-CHANNEL decoding and 1080p encoding, MULTI-CHANNEL display with independently developed advanced frame, as well as MULTI-CHANNEL Analog TV Decoder Interfaces. What’s more, power consumption can be much lower than its competitors during 1080p decoding process.
                        Features
                        • VPU
                          HD Video Decoding (Super HD 2160P/3D Film)
                          – Support all popular video formats, including VP8, AVS, H. 264 MVC, VC-1, MPEG-1/2/4, …
                          HD Video Encoding (H.264 High Profile) [datasheet: 1080p@60fps]
                          – Support encoding in H.264 format
                          [datasheet: 720p@100fps]
                        • Rich Connectivity
                          – USB2.0 Port
                          – CSI, TS
                          – SD Card3.0
                          10/100 Ethernet controller
                          CAN Bus, Built-in SATA2.0 Interface
                          I2S, SPDIF and AC97 audio interfaces
                          PS2 , SPI , TWI and UART
                        • DPU
                          MULTI-CHANNEL HD displays
                          Built-in HDMI
                          – YPbPr, CVBS, VGA
                          – LCD interfaces: CPU, RGB, LVDS up to Full HD
                        • Boot Devices
                          – NAND FLASH
                          – SPI NOR FLASH
                          – SD Card
                          – USB

                        • Powerful Acceleration
                          – Graphic( 2D/3D)
                          – VPU(Super HD)
                          – APU
                          – E-reader

                        Benefits
                          • High-performance processing and multimedia capabilities
                          • Outstanding Super HD 2160p/3D Film video decoder makes bunds of creative application possible
                          • High level of integration enables you to launch products in less time, with less effort and at a lower total system cost
                          • Further development Kits, including OS BSP( Android2.3.4, Linux2.6,WinCE6.0)
                          Typical Application

                          Pad
                          Integrated Smart TV
                          Internet Player
                          Vehicle Multimedia Center
                          HDMI Dongle
                          Projector

                          2160p [Wikipedia, excerpted on Sept 18, 2012]

                          2160p is the shorthand name for 4K UHDTV, a video mode planned to appear in future HDTV products.[1] It has a resolution of 3840×2160 (8.3 megapixels in the 16:9 aspect ratio) and is one of the levels of Ultra-high-definition television.[2][3][4][5] The number 2160 stands for 2,160 lines of vertical display resolution, while the letter p stands for progressive scan or non-interlaced. In a progressive image, the lines of resolution of the image go from the top of the screen to the bottom.
                          2160p is also called “Quad HD” since it displays four times the number of pixels of the highest HDTV standard resolution, 1080p (a standard which is also known as “Full HD“). The only planned higher definition format for television is 8K UHDTV.
                          Phillips has made a 3D Quad HDTV with a native resolution of 2160p.[6]
                          In June 2012, Toshiba launched the world’s first 3D TV without glasses with 9 parallax images which passed through special lenticular lenses to deliver 3D effect with glasses-free on a 55″ Toshiba Regza RZ1 Quad Full HD TV, 3840x2160p resolution.[7] Due to delivered 9 parallax images at the same time, so the 3D image will only be seen as HD 720p (1280×720) —> 3840×2160 = 9x1280x720.
                          Sony plans Quad HD TV to launch between 2012 and 2020. Holographic Versatile Discs and Blu-ray Disc may be used for 2160p video, since it theoretically has a storage capacity of up to 10 Terabytes.[citation needed]

                          The AllWinner A10 System on Chip Specifications [the alternative allwinner.com product page, July 20, 2012]

                          Overview

                          Using 55nm technology, Allwinner Technology’s A10 SoC chip integrates full HD video decoding technology, multi-screen display processing, various analog-digital I/O interfaces, and a high-speed efficient ARM core with intelligent power management. The A10 is used in a number of consumer products such as tablet PCs, high-definition players, smart phones, network set-top boxes and mobile media hubs but with the availability of excellent development tools, the A10 is positioned to expand that list.

                          Key Features

                          VPU
                          HD Video Decoding (Super HD 2160P/3D Film)
                          Support all popular video formats, including VP8, AVS, H. 264 MVC ,VC-1, MPEG-1, 2,4, …
                          HD Video Encoding (H.264 High Profile)
                          Support encoding in H.264 format
                          1080p @ 60 fps
                          720p @ 100 fps
                          DPU
                          MULTI-CHANNEL of HD displays
                          Built-in HDMI v1.3/v1.4
                          YPbPr, CVBS,VGA
                          LCD interfaces: CPU, RGB, LVDS up to Full HD
                          Rich Connectivity
                          THREE USB2.0 Port (OTG/HOST/UTI)
                          UTI Digital TV(TS over USB)
                          CSI(2), TS(2)
                          SD Card3.0(4)
                          10/100 Ethernet controller
                          CAN Bus, Built-in SATA2.0 Interface
                          • I2S, SPDIF and AC97 audio interfaces
                          PS2 (2), SPI (4), TWI (3) and UART (8)
                          Boot Devices
                          On board NAND FLASH
                          SPI NOR FLASH
                          SD Card
                          USB
                          Powerful Acceleration
                          Graphic( 2D/3D, Mali400 MP)
                          VPU(Super HD 2160P/3D)
                          APU
                          E-reader
                          Support text in EPUB, PDF, FB2, PDB, CHM, HTML, TXT
                          Support coding format in ANSI/ASCII, UTF-8, UTF16-BE, UTF16-LE, GB2312, EUC-KR, SHIFT-JIS, Windows-1250/1251, Support Chinese, English, French, Italian, Spanish, Dutch, Russian, Japanese, and Korea
                          CPU/GPU
                          ARM Cortex-A8 at 1.2 Ghz without cooling
                          • 32KB I-Cache/32KB D-Cache
                          256KB L2 Cache
                          MALI 400 MP GPU
                          ARM NEON general-purpose SIMD engine
                          Memory
                          DDR3 SDRAM, 32-bit 16G bits Memory Capacity
                          • SLC/MLC/TLC/DDR NAND
                          8 flash chips, ECC 64bits
                          Memory Capacity up to 64GB/chip
                          Security
                          Trustzone Technology and DRM
                          Supports DES, 3DES AES encryption/decryption
                          Support SHA-1, MD5 message digest
                          hardware 64-bit random generator
                          128-bit EFUSE chip ID
                          PMU
                          Flexible built-in power options
                          Intelligent Power Select allocates power safely and transparently among USB, external AC adapter, Li-battery and application loads
                          adaptive and USB-compatible PWM charger
                          Benefits
                          • Very high performance processing and multimedia capabilities
                          • Hardware acceleration enables very low power consumption for HD video and graphics
                          • High level of integration makes you can launch product in less time, with less effort and at a lower total system cost
                          • Optimized Standard Operation Procedure (SOP) creates high First Pass Yield (FPY) in mass production
                          • OS Board Support Packages for Android, Linux and WinCE

                          AllWinner A10 Datasheet V1.0

                          NEW Allwinner Technology-A10s [product page, Sept 26, 2012]

                          全志科技 A10s 芯片

                          Allwinner Tech has expanded its processor lineup to include a new ARM Cortex-A8 chip A10s which is even more competitive for HDMI Dongle with higher performance (ManyCore Structure), better compatibility of Streaming Video Protocol/local multimedia formats, lower power consumption, and lower total system cost. As the brains of Android 4.0.4, A10s makes multitasking smoother, apps loading more quickly, and anything you use responds instantly. What’s more important, A10s is available in BGA336 package with Audio Codec, and HDMI integrated.
                          Features
                          • CPU / GPU
                            – ARM Cortex-A8 Core
                            – 32KB D-Cache / 32KB I-Cache
                            – 256KB L2 Cache
                            – Mali-400 3-D Engine
                          • VPU
                            – HD Video Decoding
                            – 1920 * 1080 @ 30fps
                            – Support VP8/6, H.264/H.263, WMV9/VC-1, WMV7/8, MPEG-4/2/1, Xvid, etc
                            – HD Video Encoding
                            – Support encoding in H.264 format up to 1920 * 1080 @ 30fps
                          • HDMI
                            HDMI 1.4
                            1080P Output
                          • Boot Devices
                            – NAND Flash
                            – SPI Nor Flash
                            – SD Card
                            – USB
                          • Ultra-low System Power Consumption
                            15 ~ 20% lower than competitors
                          • DPU
                            – LCD Interfaces: CPU, RGB
                          • Memory
                            – DDR2/DDR3: Up to 533MHz
                            – 16 bits/32 bits Data Bus
                            – MLC / TLC / SLC / EF-NAND
                            – ECC 64-bit
                            – Support NAND of 4xnm, 3xnm, 2xnm …
                            – Support NADN of Samsung, Toshiba, Hynix …
                          • Peripherals
                            – USB2.0 OTG, USB2.0 HOST (OHCI / EHCI)
                            – SD Card V.3.0, eMMC V.4.2
                            – SPI, TWI and UART
                            TS Port
                            EMAC
                            – CSI
                            IIS
                          • Audio Codec
                            – integrated Audio Codec
                            – MIC/FM/LINEIN Input
                          • Powerful Acceleration
                            – Graphic (3D, Mali400 MP)
                            – VPU (1080P)
                            – APU
                          • Package
                            BGA336, 14mm*14mm
                          Benefits
                          Optimum multimedia and processing abilities
                          Lower power consumption of HD videos and graphics due to hardware acceleration
                          Lower power consumption of HD videos and graphics due to hardware acceleration
                          Total solution, including OS BSP (Android 4.0.4 UP)
                          Typical application

                          HDMI Dongle
                          Homlet (Android Box)

                          And A10s is definitely coming to the market as per this [Sept, 21, 2012] discussion thread

                          Today I found a seller on on a website selling new model of Android TV stick, it claims adopting new A10S chip & support DLNA function that is just what I want, is that a good deal?

                          Allwinner Technology-A13 [product page, April 13, 2012]

                          The full Jifh A13 chip

                          Allwinner Technology has expanded its processor lineup to include a new ARM Cortex-A8 chip A13 which is even more competitive for Android tablets with higher performance (ManyCore Lite), lower power consumption, and lower total system cost. As the brains of Android 4.0. 3, A13 makes multitasking smoother, apps loading more quickly, and anything you touch responds instantly. What’s more important, A13 is available in eLQFP176 package with Audio Codec, and 2 Points R-TP integrated.

                          Features

                          • CPU / GPU
                            – ARM Cortex-A8 Core
                            – 32KB D-Cache / 32KB I-Cache
                            – 256KB L2 Cache
                            – Mali-400 3-D Engine
                          • VPU
                            – HD Video Decoding
                            – 1920 * 1080 @ 30fps
                            – Support H.264, H.263, VC1, Mpeg1/2/4, Divx 3/4/5/6, Xvid, VP6 / 8, AVS etc
                            – HD Video Encoding
                            – Support encoding in H.264 format up to 1920 * 1080 @ 30fps

                          • Boot Devices
                            – NAND Flash
                            – SPI Nor Flash
                            – SD Card
                            – USB
                          • Ultra-low System Power Consumption
                            15 ~ 20% lower than competitors
                            – Smart Backlight: auto adjust backlight acc. to the image display

                          • DPU
                            – LCD Interfaces: CPU, RGB
                          • Memory
                            – DDR2/DDR3: Up to 533MHz
                            – 16 bits Data Bus
                            Memory capacity up to 512MB
                            – MLC / TLC / SLC / EF-NAND
                            – 2 flash chips, ECC 64-bit
                            – Support NAND of 5xnm, 4xnm, 3xnm, 2xnm …
                            – Support NADN of Samsung, Toshiba, Hynix …
                          • Peripherals
                            – USB2.0 OTG, USB2.0 HOST (OHCI / EHCI)
                            – SD Card V.3.0, eMMC V.4.2
                            – SPI, TWI and UART
                            – integrated Audio Codec
                            – CSI
                          • R-TP Controller
                            – 4-wire resistive TP interface
                            2 points and gesture detection
                          • Powerful Acceleration
                            – Graphic (3D, Mali400 MP)
                            – VPU (1080P)
                            – APU
                            E-Reader
                          • Package
                            eLQFP176

                          Benefits
                            • Optimum multimedia and processing abilities
                            • Lower power consumption of HD videos and graphics due to hardware acceleration
                            • Much faster, easier and cost efficient product launch due to the high integration
                            • Further development kits, including OS BSP (Android 4.0.3 UP)
                            Typical application

                            Pad
                            E-BOOK

                            Note that Allwinner is operating in a world-class environment as you could easily see from the below picture of their office building taken from their brief intro page [April 13, 2012]:

                            Jifh Southern Software Park Zhuhai

                            全志科技 Allwinner Technology has been committed to the IC design industry, is one of a handful of domestic enterprise engaged in system-level ultra-large-scale mixed analog-digital chip design the SoC and intelligent power management. Our main products are intelligent terminal application processor chip, smart power management chip.
                            With excellent R & D team and technical strength, the company’s products to achieve industry-leading levels of high-definition video codec, a high level of integration, low power consumption, rapid market expansion, has become a domestic Tablet PC application processor chip, high-definition player application processor chip as well as one of the mainstream supplier of intelligent power management chip market, has a clear lead.

                            New content replacing the above on Sept 26, 2012:

                            Allwinner Technology, one of the domestic companies in integrated circuit design industry, is dedicated to the design of mixed analog-digital VLSI SoC and smart power management SoC.

                            Depending on its excellent R&D capability, Allwinner Technology has been led the industry in terms of its HD video codec, high integration and low power consumption, etc. As a result, it is gaining more market share, and has become one of the domestic mainstream suppliers of tablet processors, HD player processors, as well as smart power management SoC.

                            Note therefore that Allwinner’s roots are in the video (multimedia) related chips as also shown by their latest pre-A10 SoC product (introduced in August’11) for that market, the F1C100 (another SoC, the more focussed F20 introduced in August’11 for portable video players, living room computers etc. has even better, 1080p full HD decode technology; as well as the very latest F10 introduced in April’12 for HD players and lower end –relative to A10—car multimedia), described on its product page as:
                            With advanced independently developed video decoding technique, F1C100 becomes the ONLY processor in the market that can decode video in all formats based on ONLY 4MB NOR FLASH and 16MB SDRAM. In the mass production of final products, NOR bootloader burning is much easier and faster compared with NAND FLAHS ‘. Last but not least, F1C100 supports two-point touch which can improve the using experience of end-users.

                            New F10 content replacing the above on Sept 26, 2012:

                            The F10 is an advanced HD video CODEC processor with unparalleled competitive edges in integration, video compatibility and cost efficiency, which have been widely verified by mass production of dozens of applications. End-users are overwhelmed by its capability to serve banquet for the eyes.

                            Typical Application

                            HD PMP
                            Student Computer
                            HD Media Player
                            Car MP5
                            HD AD Player

                            F1C100’s datasheet [initial version, March 31, 2011] is providing the following, more precise description:

                            image

                            and for the video engine of their own design in particular:

                            image

                            image

                            With this intellectual property they were able to upscale to a market leading 2160p functionality in the A10 (vs. the 720p in the above F1C100) while using a less upscaled IP for the 1080p in A13. So they can even have a scaleable video engine IP of their own.

                            In the A10 datasheet or here [initial version, Aug 22, 2011] the following description is giving some hint regarding the company’s strategic intent to remain in the forefront of video acceleration technology:

                            image

                            It is quite notable that neither on the product page nor in this datasheet Allwinner is giving further information about their video engine. Even in the functional block diagram of datasheet the video engine (VE) is simple put into a central box with Cartex-A8 and the Mali GPU:

                            image

                            The only available information is the CedarX wiki page [July 14 – Sept 16, 2012] on linux-sunxi wiki:

                            CedarX is Allwinner’s multimedia decoding technology. It is composed of several parts, including:

                              1. A hardware video decoding unit
                              2. Proprietary libraries to communicate with the hardware unit
                              3. Glue code to use those libraries on an actual system with video playback capabilities (e.g. Android)
                              Benefits
                                • Efficient use of system resources when decoding multimedia.
                                • Allows small ARM systems to playback high resolution/bitrate multimedia content, which wouldn’t be possible using software-only decoding.
                                    Disadvantages
                                      • The proprietary libraries have no clear usage license.
                                      • The android glue code is implemented as a “media player” (parallel to stagefright) instead of as OMX components.
                                      • This media player has limitations when it comes to playing back content pointed to by Android URIs and some web-based content.
                                      • There is no glue code for any other multimedia frameworks on GNU/Linux systems. The use of OMX would’ve rendered this a non-issue, with existing projects like GstOpenMAX.
                                          Integration
                                          Reverse Engineering
                                          On June 15 2012 Iain Bullard started reverse engineering the proprietary libraries.
                                          Some leading tablets (single core) as of April, 2012  per Merimobiles (with an office in Canada)
                                          (Haipad I7 is now $99, the price of Ployer Momo9 is unchanged, see: HAIPAD I7 IPS 1024*600 Multitouch Screen with Android 4.0 Dual Camera 1080P HDMI [Merimobiles.com, Sept 10, 2012],  Haipad’s latest 7-inch ICS tablet Haipad i7 gets FCC clearance [Merimobiles blog, March 6, 2012], from Shenzhen Haina Electronic Co., Ltd “founded in 2003 as a high-tech company specializing in laptops and other digital mobile devices”)

                                          comparison-chart-haipad-i7.png

                                          The Allwinner A10 based tablets came to the global market from quite a number of vendors as shown by the following table (=50) compiled from two related threads from SlateDroid.com (note that global arrival of A10-based product started in Jan’12):

                                          Comprehensive List of Allwinner A1X/A10 devices on SlateDroid.com, as of April 18, 2012 (first version: Feb 26, 2012)
                                          A10 Tablets with less than 1GB memory („1st generation”):
                                          AllDro Speed
                                          Ainol: Novo 7 Advanced, Novo 7 Advanced II
                                          OEM Novo 7 Advanced
                                          Allview AllDro Speed
                                          Audemars Piguet PC741 (w/ bluetooth)
                                          Aura LY-F1
                                          BRONCHO A710
                                          Bmorn: V9 plus, V11
                                          Dropad A8HD
                                          Eken: MB1001, T01A, t10a
                                          Eneoze 7 inch or 10 inch
                                          Hyundai A7
                                          ICOO: D70W, D90W
                                          LY-F1 (Netpad A10, TPGA-7AWN, A710)
                                          Leoxsys Leopad i7-1500
                                          Moonpad2
                                          Onda: VX610W, Vi20W, Vi10 deluxe edition, Vi20W deluxe (the original Vi20W is RK2918-based), Vi30W deluxe, Vx610w, VX580W Deluxe Edition (5” tablet)
                                          Ployer: Momo8 (8″ screen 800×600), Momo9 (C, Enhanced, etc), Momo15 (10” screen)
                                          Rexing V7
                                          Sanei N70 N71 N72 N73 N80 N81 (N7x is 7” and N8x is 8”)
                                          Saycool A710
                                          Scroll Excel
                                          Sigotech V700 (resistive touch)
                                          Skypad Alpha 2
                                          Teclast: P76 Resistive, P76ti
                                          Tracer OVO
                                          WoPad A7 (upcoming)
                                          „2nd generation” A10 tablets (with 1 GB or more):
                                          Ainol: Novo Elf, Novo Aurora
                                          Bmorn V11 Extreme
                                          Ampe A90
                                          Gemei: G9, Gemei G2
                                          Eken A90
                                          Ployer Momo11 Bird
                                          newman P81
                                          Onda: Vi40 (8g, 16g, 32g/ 10” screen), Vi10 elite, 1GB Ram, 8 GB Flash, 1024×600 LCD
                                          Teclast: P85 (8″ screen), A10
                                          Later/OTHER devices (not verified, just put on the thread, THOSE WITH LINKS are from the Adding new Allwinner A10 CPU Devices THREAD [Jan 19-Sept 17, 2012]):
                                          Ampe: A80, A85, A10
                                          Andtai FG-A97
                                          Benyi M8
                                          Coby Kryos 7042
                                          Gemei G3
                                          Haipad i7
                                          HKC M701
                                          ICOO: D50 deluxe edition, D80W
                                          iNote: V4, A8, A8-2, A-8-3
                                          Kliver MB9703
                                          MyAudio 908A
                                          Naviatec MD710
                                          Onda Vi40 Flagship
                                          Polaroid PMID701C
                                          Shimaro M5
                                          Sinvigo M7
                                          Sysbay s-mp99
                                          Treq A10C
                                          Trio Stealth Pro 7
                                          VISTURE 3
                                          Zonge M90
                                          Yarvik Xerios TAB464
                                          Xtouch X716
                                          Woxter Tablet PC 97

                                          Note that there were only couple of Chinese vendors with multiple Allwinner A10-based tablet offerings, namely: Ainol, Ampe, Bmorn, Eken, Gemei, ICOO, iNote, Onda, Ployer, Sanei, Teclast (i.e. just 11 out of 50).

                                          There is a much shorter and later started list of Allwinner A13-based tablets on SlateDroid.com, see: List of Allwinner A13 CPU Devices [from Aug 1, 2012]

                                          Then from April to August there were the following events unfolding in China as per Micdigi reports:

                                          A13 is cheaper than A10 with only 512M memory and 800×600 resolution but without Bluetooth and HDMI. Allwinner A13 can be only used for 7-inch tablet PC and 8-inch tablet PC, it does not support 10-inch tablet PC.

                                          Contrasted with VIA8850 and RK2906, A13 with low cost will have strong market competitive capability. The price of 7-inch tablet with A13 and capacitive screen will be less than $48 in May.

                                          Rockchip has released RK2906 chip to defeat Allwinner A10. The chip is not different from RK2918 but it can only used for 7-inch tablet and 8-inch tablet.

                                          The tablet based on RK2906 comes from Shenzhen DavidMid.

                                          The two sample tablet PCs from SMIT are based on slot-in screen and flat screen. The price of the slot-in screen is less $8 than the price of the flat screen.  

                                          The price of the PCBA sells for about $19, the tablet PC based on A13 solution, slot-in screen and capacitive control sells for about $47.

                                          … The slot-in screen does not have external glass and interaction sets that it is cheaper. But the experience is not different from the flat screen. …

                                          Remark: Embedded Touchscreen Technology and Market Analysis [Displaybank, March, 2010]

                                          The embedded touch technology is divided into In-cell and On-cell technologies. Conventionally, only the In-cell technology which was exclusively developed by panel makers drew attention, but it entailed issues in technology and cost regarding a mass production by satisfying the touch function demanded by customers and market. The on-cell technology lies at a grafting point between the conventional touch industry infra and LCD panel industry that it tends to mutually supplement the two industries in terms of performance and function.
                                          The embedded touch technology which includes above On-cell and In-cell technologies is ideal since it reduces thickness and weight as well as it overcomes shortcomings of the conventional add-on type: reduced transmittance, lowered readability due to contrast ratio decrease, and thick bezel width. Based on above advantages, related makers continue with the technology development. The market is yet insignificant, but it is expected to show high growth rate comparable to the Touch market’s growth.

                                          Latest info:
                                          On-cell Touch Screen Panel Slims Down Mobile Displays [Electronic Design, June 10, 2012]
                                          TOUCH TECHNOLOGY IN SMARTPHONES EXPLAINED [FlatpanelsHD, Sept 19, 2012]

                                          VIA8850 based on Cortex-A9 core is powerful than VIA8650. VIA8650 is so worse that some famous manufactures in China have not made their tablet PCs to introduce VIA8650 chip, such as Ramos, Window and TOBE.

                                          VIA8850 will come with cheap price and powerful performance. It will be mainly used for SuperPad tablet PCs. It is said that VIA will release another chip for big-brand companies.

                                          Actually it is same with VIA8850, but it has different name.

                                          As VIA8650 chip is so worse, Infotmic [X200] 7-inch chip, Allwinner A10, Allwinner A13 have got most of the market share.

                                          Could VIA8850 chip get more market share in this year?

                                          1.  There are so many Allwinner A10 tablet PCs that the competition is so fierce. Some manufactures do not make any money. They will not continue to release A10 tablet PCs. Maybe they will release VIA8850 tablet PCs.

                                          2.  VIA8850 based on Cortex-A9 core is [more] powerful than Allwinner A10 based on A8 core and A13 based on A8 core. With the resource of HTC, the system optimization of the VIA8850 tablet PC is excellent. It not only has powerful performance but also has cheap price.

                                          3. VIA is a famous chip company in the world. They have good marketing channel.

                                          Allwinner has released the A10 chip for about half a year. They have earned so much money including the investment cost and the profit.

                                          VIA must do their best to earn the investment cost. The cost of VIA8850 is [more] expensive than Allwinner A13.

                                          Allwinner has advantage in the price war.

                                          Configurations: Infotmic solution, 256M memory, 4G storage, 7-inch resistive screen with 800×480 resolution, front facing camera, Android2.3 OS.

                                          Infotmic X200 series are based on ARM11, 1GHz frequency, supports 1080P video decode.

                                          Recent examples of tablets:

                                          $39 AllWinner A13 Tablet (100K bulk) by Hott at IFA 2012 [Charbax YouTube channel, Sept 2, 2012]

                                          Hott presents one of their latest cheapest tablet to manufacture and they also have a new cheap bluetooth and cabled speaker.

                                          $46 AllWinner A13 by OMG at IFA 2012 [Charbax YouTube channel, Sept 2, 2012]

                                          I show a range of the latest tablets by OMG of Shenzhen China. $46-$48 (if buying 500) AllWinner A13, $55 VIA Cortex-A9 [VIA/WM8850], $110 AllWinner A10 with 3G modem (likely Huawei).

                                          $99 3G Allwinner A10 Eken G70 at IFA 2012 [Charbax YouTube channel, Sept 1, 2012]

                                          Here’s a sub-$100 (in bulk) 3G-connected Allwinner A10 7″ capacitive tablet.

                                          And here is an earlier $55 AllWinner Boxchip A13 Tablet Factory Tour [Charbax YouTube channel, May 27, 2012] to understand why and how the workforce is able to assembe the tablets at such a cheap price:

                                          See how they are assembling the $55 (soon $49) AllWinner Boxchip A13 7″ Capacitive tablet. This Shenzhen factory assembly line cranks out about 4000 such tablets in a day’s work. If you like this video, you should also watch my Shenzhen Speakers Factory video (http://www.youtube.com/watch?v=3fcmbHMnqbo) that I posted last month. I think that they are treated better than Apple/Foxconn workers, I think they make better money, they have better working conditions (for example they may wear their own clothes), they probably have more flexibility and the work may be less monotonous. Yet, of course I think working conditions can be improved for all Chinese consumer electronics factory workers. My suggestion is that consumers must have the choice to buy “vouchers that go 100% to the workers that made the devices”, for example, decide to pay $5 extra for your tablet, and know that the $5 goes 100% to the factory workers that build it meaning you double their salary (if 50% of all consumers decide to give an average of $5 each per device).

                                          AAPPAA Shenzhen JinPinXing Tablets [Charbax YouTube channel, Sept 2, 2012]

                                          Here they’re showing [on IFA 2012 in Berlin] their PCB and Tablet casing designs. They claim to have the worlds thinnest 9.7″ IPS tablet at 8.9mm.

                                          Some important information mentioned in the video:

                                          MID-971:
                                          – World’s Thinnest 9.7” [IPS] Pad
                                          – Only 8.9 mm
                                          – Built-in 3G (can be also without it)
                                          – WiFi + Bluetooth
                                          VIMICRO??? or Longcheer 2918/3066
                                          – the WiFi only version is US$115-120 depending on quantity

                                          MID-803:
                                          – 8” Pad
                                          – Built-in 3G
                                          – Dual Camera
                                          Rockchip 3066 dual core
                                          – US$172 with 8GB and 3G

                                          ?MID-973?: a 9” tablet with Allwinner A13 is said to cost US$73-74
                                          30K tablets sold per month, can sell upto 50K per month
                                          On their product microsite (see below) the tablets shown currently have the following SoCs and parameters:
                                          Allwinner A10 (Cortex A8@1.5GHz): MID-501 and MID-702 (both 512MB DDR3 and 7” 800×480 with Android 4.0.4)
                                          Allwinner A13 (Cortex A8@1.0GHz): MID-438 (7” 262×480 and Android 4.0.3), MID-703 (7” 800×480 and Android 4.0.4) both with 512MB DDR3
                                          VIMICRO882 (Cortex A8@1.0GHz): MID-706 (512MB DDR3 and 7” 800×480 with Android 4.0)
                                          – all the those are with capacitive touch screens, NAND FLASH 4GB/8GB/16GB / 32GB (optional), AMD graphics acceleration, full support for OpenGL ES2.0 (AMD Z340) and h.264 720P HD 1080i

                                          Jinpin Xing Technology Co., Ltd., Shenzhen – Tablet PC – Products – [as of Sept 18, 2012]
                                          深圳市金品兴科技有限公司 – 平板电脑 – 产品介绍


                                          MID-702


                                          MID-438

                                          MID-971


                                          MID-973


                                          MID-708


                                          MID-706


                                          MID-501


                                          MID-1001


                                          MID-703

                                          AAPPAA –About us [Aug 19, 2011]

                                          AAPPAA, founded in 2005, is an established manufacture of smart digital products with super perfect design in MP3/4/5, Mini Speaker products field. We design and produce super perfect quality products, many of them are original which we ship to wholesale customers all over the world. Given the wide array of geographic regions across which we distribute product, we work closely with our customers and retail partners to ensure the AAPPAA team remains innovative and competitive in a constantly evolving market sector.

                                          AAPPAA’s Success: AAPPAA’s success can be attributed to close collaboration with our global set of customers and partners combined with internal efforts to continually improve our productivity, design creativity and quality management initiatives. Through the years, AAPPAA has experienced tremendous growth while also enhancing the personal lives of our customers, and the well being of our loyal employee base. AAPPAA employs 60+ people with an average employment tenure of nearly 3 years a fantastic achievement amidst China’s explosive growth that has offered a continuous list of new opportunities of a young, energetic workers.
                                          AAPPAA’s Manufacturing Capacity: AAPPAA’s 1500 square meters of manufacturing space and 60+ workers are based in Shenzhen China. We operate multiple production lines with SMT machines, hot plastic packing machines as well as high & low temperature age and vibration testing units. Production capacity exceeds 110,000 units per month. In addition, AAPPAA’s products are CE, FCC, RoHS certified.
                                          Address: 5F, Nankeng No.2 Industrial Park Abuilding, Bantian Town, Longgang District, ShenZhen City 518129, China
                                          Tel : +86-755-83579180    Fax:+86-755-83579189    E-mail: sales@aappaa.com

                                          5. The wireless display and 2160p (“Quad HD”/4K) outlook

                                          Wi-Fi CERTIFIED Miracast™: Your Content – Now Showing on Screens Everywhere [WiFiAlliance YouTube channel, Sept 18, 2012]

                                          Wi-Fi CERTIFIED Miracast™ is a groundbreaking solution for seamlessly displaying video between devices, without cables or a network connection. Users can do things like view pictures from a smartphone on a big screen television, share a laptop screen with the conference room projector in real-time, and watch live programs from a home cable box on a tablet. Miracast connections are formed using Wi-Fi CERTIFIED Wi-Fi Direct™, so access to a Wi-Fi® network is not needed — the ability to connect is inside Miracast-certified devices. Miracast is an industry-wide solution, so the technology works well across devices, regardless of brand. Connections are easy to set up and use since the devices choose the appropriate settings automatically. Miracast supports premium content—like Blu-ray feature films, live television shows and sports, or any other copy-protected premium content—allowing you to watch what you want, where you want.

                                          What that means practically is currently best shown by a non-Chinese tablet SoC vendor:
                                          NVIDIA Tegra 3 Enhances Miracast Wireless Display [nvidia YouTube channel, July 26, 2012]

                                          Watch how NVIDIA’s Tegra 3 can enhance the experience of the WiFi Alliance’s new open standard for wireless display called Miracast. From the same organization that established the ubiquitous Wi-Fi standard, comes the ability to wirelessly beam the display contents of your mobile phone or tablet directly to the large HDTV screen in your home without a wireless router. See how the performance of Tegra 3 can deliver the ultimate Miracast experience by bringing super clear HD videos and console quality game play with Tegra Zone games

                                          What you see here is the Hardware + software optimization done by NVIDIA for Miracast. Since Allwinner is using its own video processing unit (VPU) which is said to be the fastest relative to the video engines of its Chinese SoC competitors (e.g. Amlogic) we can expect a similar to the NVIDIA’s kind of software optimization for the Allwinner VPU. (Take also into consideration “the company’s strategic intent to remain in the forefront of video acceleration technology” as it was proven in the “Allwinner Advantage” section before.)

                                          In other respect a separate 3d party WiFi chip is coming into the play, and there is already quite a number of those chips already to be designated Wi-Fi CERTIFIED Miracast:

                                          Easy-to-use, multi-vendor wireless display has arrived: Wi-Fi Alliance® launches Wi-Fi CERTIFIED Miracast™ [Wi-Fi Alliance press release, Sept 19, 2012]

                                          Wi-Fi Alliance® today announced the launch of the Wi-Fi CERTIFIED Miracastcertification program. Miracast devices provide simplified discovery and setup, so users can quickly transmit video content from one device to another. Industry analysts predict annual shipments of Miracast-certified devices to exceed one billion units within the next four years.
                                          Miracast users can do things like view pictures from a smartphone on a big screen television, share a laptop screen with the conference room projector in real-time, and watch live programs from a home cable box on a tablet. Miracast connections are formed using Wi-Fi CERTIFIED Wi-Fi Direct, so access to a Wi-Fi® network is not needed – the ability to connect is inside Miracast-certified devices.
                                          “Wi-Fi users around the world want to experience multimedia on the device of their choice – no matter what brand – and Miracast is the breakthrough they have been waiting for,” said Edgar Figueroa, CEO of Wi-Fi Alliance. “We have been delighted with the level of enthusiasm and support among our member companies for this new offering.”
                                          Miracast supports protected content streaming, enabling devices to stream feature films and other copy-protected materials. To protect premium content, Miracast uses a wireless adaptation of the trusted content protection mechanisms widely used today for cabled interfaces like HDMI® and DisplayPort. In addition, the latest WPA2™ security protections are automatically enabled on every device, making the transport of all multimedia content private.
                                          “Miracast builds on Wi-Fi Direct with a compelling application,” said Brian O’Rourke from IHS iSuppli Research. “This is a big step forward in a market migration from single-vendor display solutions, into an offering from a wide array of vendors. With more than 1.5 billion Miracast devices expected to ship in 2016, the program is poised to have broad adoption.”
                                          The technology underlying Miracast was developed in Wi-Fi Alliance by a diverse group of mobile and consumer electronics manufacturers and silicon vendors to standardize methods for simplified video sharing. Based on the Wi-Fi Alliance Display Specification, products bearing the Miracast brand interoperate across vendors, making it easy to enjoy video on screens throughout the home or office.
                                          The first products to be designated Wi-Fi CERTIFIED Miracast, and which form the test suite for the certification program, are:
                                            • Broadcom Dualband 11n WiFi
                                            • Intel® WiDi
                                            • Marvell Avastar USB-8782 802.11n 1×1 Dual-band Reference Design
                                            • MediaTek a/b/g/n Dualband Mobile Phone Client, MT662X_v1 and DTV Sink, MV0690
                                            • Ralink 802.11n Wireless Adapter, RT3592
                                            • Realtek Dual-band 2×2 RTL8192DE HM92D01 PCIe Half Mini Card and RTD1185 RealShare Smart Display Adapter
                                              The first consumer products certified since testing opened to vendors include the LG Optimus G smartphone, Samsung Galaxy S III smartphone and Samsung Echo-P Series TV.
                                              More information, including a list of Wi-Fi CERTIFIED Miracast products, the Wi-Fi Alliance Display technical specification, white paper, and more is available at www.wi-fi.org/miracast.  
                                              Broad industry support for Wi-Fi CERTIFIED Miracast
                                              “As a Wi-Fi market leader, Broadcom is honored to be one of the primary certification solutions for the Wi-Fi Alliance Miracast™ program and is committed to driving new Wi-Fi standards,” said Dino Bekis, Senior Director, Wireless Connectivity Combo Group at Broadcom. “The standardization of this technology will enable consumers to easily and seamlessly share content across the ever-growing landscape of connected devices.”
                                              “Users clearly expect that they should be able to move their content and applications freely at home, at work, in the classroom, and on the go,” said Joe Van De Water, Director of Consumer Product Marketing at Intel. “Intel has seen tremendous user enthusiasm for Intel® WiDi, and as a member of the Wi-Fi Alliance, we support enabling this usage more broadly and are excited to announce WiDi as one of the first Wi-Fi CERTIFIED Miracast solutions.’’
                                              “We celebrate the launch of the Wi-Fi CERTIFIED Miracast program,” said Hyunghoon Oh, Head of LG Mobile Communication R&D Division. “Miracast brings an exciting advancement in the way devices deliver display applications.”
                                              “The Wi-Fi Alliance’s Miracast certification program will allow for easy sharing of video content, regardless of vendor,” said Bart Giordano, Director, Wireless Marketing at Marvell Semiconductor, Inc. “We have included Miracast in our solutions, and are honored to have been selected for the program’s test bed.”
                                              “The video streaming applications enabled by Wi-Fi CERTIFIED Miracast™ are key to the growth of the Wi-Fi ecosystem encompassing Consumer Electronics, Personal Computing, and Mobile devices.” said Mr. SR Tsai, General Manager of Wireless Connectivity & Networking Business Unit at MediaTek. “We are honored to have our Android mobile platforms, Digital TV, as well as our connectivity solutions for Windows platforms selected for the Miracast test bed.”
                                              “Miracast on NVIDIA Tegra will bridge the distance between mobile devices and high-def TVs, providing customers a rich – and cable-free – multimedia experience,” said Matt Wuebbling, Director of Product Marketing at NVIDIA. “We have embraced Miracast and are working with our OEM partners to bring its amazing possibilities to market.”
                                              “We are happy to have been involved in developing the Miracast program and to be one of the first companies to receive certification,” said Jessy Chen, Vice President and Spokesman at Realtek. “The solution will greatly expand the market for easy-to-use interoperable wireless display connectivity.”
                                              “As a leader in N-screen technology, Samsung has introduced AllShare Cast (based on Miracast), which is incorporated into most of Samsung’s high-end smart mobile devices including the GALAXY S III, GALAXY Note 10.1, and GALAXY Note II, “ said Hankil Yoon, Senior Vice President of Product Strategy Team, Samsung’s Mobile Communication Business. “We will continue to support the program, and plan to offer more Miracast-certified devices to our customers going forward.”
                                              “Sony Mobile is pleased to support the Wi-Fi CERTIFIED Miracast™ certification program. We continuously strive to deliver new exciting user experiences and Miracast™ technology will enhance our ability to offer consumers seamless connectivity to move their content freely between smartphones and other screens,” says Nikolaus Scheurer, Director Marketing Planning for Sony Mobile Communications.
                                              “Miracast will play an important role in enabling true seamless media streaming, gaming and content sharing between mobile screens and large displays,” said Ram Machness, director of marketing, Wireless Connectivity Solutions, Texas Instruments Incorporated. “Our OMAP™ platform, DaVinci™ video processors and WiLink™ connectivity products will offer Miracast-certified source and sink solutions to provide a rich experience for our customers’ end products.”
                                              About the Wi-Fi Alliance®
                                              www.wi-fi.org
                                              The Wi-Fi Alliance is a global non-profit industry association of hundreds of leading companies devoted to seamless connectivity. With technology development, market building, and regulatory programs, the Wi-Fi Alliance has enabled widespread adoption of Wi-Fi worldwide.
                                              The Wi-Fi CERTIFIED™ program was launched in March 2000. It provides a widely-recognized designation of interoperability and quality and it helps to ensure that Wi-Fi-enabled products deliver the best user experience. The Wi-Fi Alliance has completed more than 15,000 product certifications, encouraging the expanded use of Wi-Fi products and services in new and established markets.
                                              Wi-Fi®, Wi-Fi Alliance®, WMM®, Wi-Fi Protected Access® (WPA), the Wi-Fi CERTIFIED logo, the Wi-Fi logo, the Wi-Fi ZONE logo and the Wi-Fi Protected Setup logo are registered trademarks of the Wi-Fi Alliance. Wi-Fi CERTIFIED™, Wi-Fi Direct™, Wi-Fi Protected Setup™, Wi-Fi Multimedia™, WPA2™, Wi-Fi CERTIFIED Passpoint™, Passpoint™, Wi-Fi CERTIFIED Miracast™, Miracast™, Wi-Fi ZONE™ and the Wi-Fi Alliance logo are trademarks of the Wi-Fi Alliance.
                                              All other company and product names mentioned are trademarks and/or registered trademarks of their respective owners.

                                              For Chinese vendors the WiFi-related MediaTek chips are the most accessible and affordable, so I am including the additional MediaTek press release as well:

                                              MediaTek Interlinks Mobile Devices and TVs for Wireless Display MiracastTM Applications [MediaTek press release, Sept 19, 2012]

                                              MediaTek Inc., a leading fabless semiconductor company for wireless communications and digital multimedia solutions, today announced that its 802.11a/b/g/n Dual-band Mobile Phone Client (MT662X), 802.11n Wireless Adapter (RT3592) and DTV Sink solutions (MV0690) have all been selected as part of the Wi-Fi CERTIFIED MiracastTM test bed. As the benchmark to drive interoperability testing for the newest Wi-Fi program, MediaTek’s Miracast-certified solutions allow mobile devices to wirelessly stream multimedia content, such as video and games, onto big screen DTVs without a connection to an access point.
                                              “We congratulate MediaTek on achieving selection to the Wi-Fi CERTIFIED MiracastTM test bed,” said Wi-Fi Alliance CEO Edgar Figueroa. “MediaTek’s participation in the development of this program has been instrumental in the achievement of industry-wide certification.”
                                              In a typical MiracastTM usage scenario, one device acts as the source (the transmitting device sending out the content) while the other becomes a sink (a receiving device displaying the content). Thanks to the new Wi-Fi test program and MediaTek’s proven technologies, interoperability and user experience of Miracast applications can be guaranteed.
                                              “We are partnering with MediaTek to provide consumers with high-performance, affordable smartphone solutions that incorporate the latest Miracast Wi-Fi display technology for the home and on the go, “ said Dr. Ji-Yang Wang, COO at TCL Communications Technology. “MediaTek’s industry-leading technologies, cross-platform advantages across home and mobile, and ‘hands-on’ approach to design and support, are essential in creating products that helps us deliver a compelling user experience and differentiated offering.”
                                              “The video streaming applications enabled by Wi-Fi CERTIFIED MiracastTM are key to the growth of the Wi-Fi ecosystem encompassing Consumer Electronics, Personal Computing, and mobile devices.” said Mr. SR Tsai, General Manager of MediaTek’s Wireless Connectivity & Networking Business Unit. “Having our Android Smartphone, Digital TV, as well as our connectivity solutions for Windows platforms selected for the MiracastTM test bed is a strong testament to the breadth and quality of MediaTek’s Wi-Fi technology.”
                                              MediaTek offers a broad portfolio of high-performance SoC and wireless connectivity solutions for the proliferation of smartphones, tablets, PCs, DTVs, Blu-ray players and AP/routers. The Wi-Fi CERTIFIED MiracastTM MediaTek solutions included in the test bed are:
                                              MT662X a/b/g/n Dual-band Mobile Connectivity Combo
                                              RT3592, Ralink 802.11n Wireless Adapter
                                              MV0690 DTV Sink
                                              The Wi-Fi CERTIFIED MiracastTM MediaTek solutions have entered mass production and are shipping in commercially launched devices.
                                              * Windows is a registered trademark of Microsoft Corporation in the United States and other countries.

                                              See also:
                                              Wi-Fi CERTIFIED Wi-Fi Direct™: Personal, portable Wi-Fi® that goes with you anywhere, anytime [Wi-Fi Alliance, Aug 15, 2010]

                                              As far as the 2160p (“Quad HD” or 4K) technology is concerned, which is already on our footsteps, I would first recommend to watch the below demo video available on YouTube in QUAD HD resolution. You should “simply” select the “Original” quality in full screen viewing mode, and if your monitor has sufficient resolution than you could get the proper experience (do not forget that your Internet connection should be sufficiently fast in terms of guarranteed dowload speed as well). If not than correspondingly less:

                                              IT005 QUAD HD 4K – Italy travel guide Bird watching [VOXLIBERTUM YouTube channel]

                                              Birdwatching in 4K on the River Adda. Natural Reserve maintained by Pro loco Villa D’adda – Footage courtesy by http://www.iris32.com – This 4K video is posted in original QUAD HD resolution. It has been produced with RED 16×9 HD with 4096 x 2304 pixel resolution. The color grading was done with REDCINE PRO X. It was mastered in FCP 7 with 4444 PRORES and than downscaled to 3840 x 2160 (QUAD HD) in PRORES 422 (LT) to reduce the file size under 20 GB. All original sequences used in this video are available on http://www.iris32.com. Should you require the 4444 PRORES original for maximum quality, please go to the IRIS32 website and mail a request. I hope you enjoy this little piece of birdwatching on the River Adda. Copyright 2012 – Frederick von Sulle, VOXLIBERTUM

                                              Then please watch another video which is showing what the leader in this TV technology, Toshiba was showing on the recent IFA 2012 fair in Berlin:
                                              Toshiba 4K Quad-HD 3840×2160 TVs with CEVO Engine upscaling/processing from 55″ to 84″ [Charbax YouTube channel, Aug 30, 2012]

                                              Toshiba is ramping up the production of their awesome Quad-HD screens, the 2D-only 55″ is awesome, but only for sale in Japan for now. But this year and the next, Toshiba is going to ramp up the manufacturing of these, I hope they lower the price of 55″ Quad-HD to sub-$2000 as soon as possible! The slideshows of 8 megapixel photos and 4K videos filmed with the Red camera videos look awesome on it!

                                              The reporter (Nicolas Charbonnier alias Charbax) did an excellent job with this video, as well as the Toshiba guy showing him around. Even his English is very good and enjoyable. Note that from [02:10] and “Glassless 3D” is shown and explained quite extensively, then highly zoomable Google Maps in 3D etc. Charbonnier is doing during all this an excellent job zooming with camera so one can really grasp the 4K and 3D experience quite well even in a normal viewing environment of your monitor. THANKS!

                                              More information:
                                              Toshiba unveils the first large-screen glasses-free 3D TV in Asia
                                              [Toshiba Singapore press release, May 3, 2012]
                                              Toshiba Brings New Generation of TVs and PCs to the Philippines Announces New Brand Ambassador [Toshiba Philippines press release, June 20, 2012]
                                              RZ1 SERIES NEW! Glasses-Free 3D TV [Regza Asia microsite, June 4, 2012]
                                              Toshiba Regza RZ1 [Toshiba Regza YouTube channel, May 31, 2012]

                                              Toshiba Regza RZ1 3D TV Review [gadgetguruindia YouTube channel, Aug 6, 2012]

                                              You can also watch Charbonnier’s shorter report about Sony 84″ 4K TV KD-84X9005 with 4K X-Reality Pro [Charbax YouTube channel, Sept 2, 2012] which came after Toshiba to the market and said to be widely available for Christmas.

                                              Finally: Status of the TV Display industry by Paul Gray, Director of European TV Research for DisplaySearch [Charbax YouTube channel, Aug 31, 2012]

                                              Here’s a 10-minute overview of the TV Display industry by Paul Gray, Director of European TV Research for DisplaySearch. Talking about Samsung, LG, Panasonic, Sharp, AUO, CMI, how they are losing money, how they are trying to bring new technologies like 3D and hopefully as soon as possible 4K to the market.

                                              6. Are the established client device players
                                              recognizing this strategic inflection point or not?

                                              Decide for your yoursel, dear reader:

                                              Ballmer trumpets Microsoft’s ‘epic year’ [The Seattle Times, Sept 15, 2012]

                                              Q: The iPad has the largest share of the tablet market, but its soft spot, it seems to me, is the price.With the Surface, are you planning to compete with the iPad on price or on features?
                                              A: We haven’t announced pricing. I think we have a very competitive product from the features perspective. …
                                              I think most people would tell you that the iPad is not a superexpensive device. … (When) people offer cheaper, they do less. They look less good, they’re chintzier, they’re cheaper.
                                              If you say to somebody, would you use one of the 7-inch tablets, would somebody ever use a Kindle (Kindle Fire, $199) to do their homework? The answer is no; you never would. It’s just not a good enough product. It doesn’t mean you might not read a book on it….
                                              If you look at the bulk of the PC market, it would run between, say, probably $300 to about $700 or $800. That’s the sweet spot.
                                              Q: Where do you see Microsoft’s position in five years, 10 years?
                                              A: First of all, I’d say: pre-eminent technology company. I think that in a back-looking view, people would say we were a software company. That’s kind of how we were born.
                                              I think when you look forward, our core capability will be software, (but) you’ll probably think of us more as a devices-and-services company. Which is a little different. Software powers devices and software powers these cloud services, but it’s a different form of delivery….
                                              Doesn’t mean we have to make every device. I don’t want you to leap to that conclusion. We’ll have partners who make devices with our software in it and our services built in. … We’re going to be a leader at that.

                                              Supply chain estimates x86 Surface Price at US$500-700 and RT below US$399 [DIGITIMES, Sept 18, 2012]

                                              Microsoft’s own-brand Surface tablets are expected to launch at the end of October with the related supply chain players estimating that the Surface RT’s hardware cost is at around US$300-400 and the end price will be less than US$399. However, the pricing is not confirmed by Microsoft.
                                              Microsoft’s pricing strategy for its own-brand tablets will relatively affect PC brand vendors’ pricing strategy and sales projections for their Windows 8 tablets. As the launch time at the end of October is approaching, PC brand vendors are keeping a close eye on Microsoft’s actions. With the related Surface pricing speculations having been floating around the market, Surface RT was previously rumored to be priced at only US$199, leaving the PC brand vendor in a cold sweat.
                                              Since CEO Steve Ballmer in a recent interview pointed out that a price level between US$300-800 will be the sweet spot for PC sales, some market watchers have interpreted the statement as a hint for Surface pricing.
                                              The sources revealed that the hardware cost of Surface RT is at US$300-400 and US$400-500 for the x86 version. Since the devices will not need to pay the licensing fee for the operating system. The RT version will be priced below US$399, while the x86 version is estimated to be US$100-200 higher based on hardware costs and priced at US$500-700.
                                              The PC brand vendors also pointed out that they will not be absent from launching x86-based Windows tablet products since Windows still has leadership position in the global enterprise market. If the x86 Surface’s end user price is at US$500-700, although they will feel the pressure from competition, the product line would still be profitable.

                                              Acer, Asustek Windows 8 tablet prices may be to high to attract consumers [DIGITIMES, Sept 20, 2012]

                                              Acer and Asustek Computer’s Windows 8 tablets are reportedly to be priced at above US$800, about the same price as the New iPad with the highest specifications, and market watchers are concerned that the high price may drag down consumer demand and impact the vendors’ performance.

                                              Although PC brands including Acer, Toshiba, Dell, Lenovo, Asustek, Samsung and Sony, have mostly unveiled or showcased their Windows 8 tablets publicly, their prices and specifications are still not yet to be officially revealed. However, some websites have recently leaked information about Acer and Asustek’s tablets including prices and specifications.

                                              Asustek is reportedly to release three Windows 8 tablet models and the 11.6-inch Vivo Tab will be priced at US$799.

                                              Acer reportedly will release two sizes of Windows 8 tablet – the 10.1-inch 64GB Iconia Tab W510 with Wi-Fi support only and priced at NZD999 (US$827), a keyboard accessory will raise the price to about US$993; and the 11.6-inch 128GB Iconia Tab W700 with Wi-Fi support only at NZD1,799 (US$1,490), and with a Bluetooth keyboard, the machine’s price will go up to about US $1,570.

                                              However, Acer and Asustek have both declined to comment on the leaked prices and only pointed out that they will host product launches in the near future. Intel has also recently sent out media invitations and will host a Windows 8 tablet conference on September 27 in the US to showcase tablets and convertibles from Acer, Asustek, HP, Lenovo, Dell, Samsung and ZTE to promote for the launch of Windows 8.

                                              Acer and Asus to Launch Windows 8 Tablet PCs in Q4 [CENS, Aug 22, 2012]

                                              Eying business opportunities created by the new Windows 8 operating system (OS), scheduled for release in October, Taiwan-based personal computer (PC) vendors Acer and Asus will soon launch Win 8 tablet PC models.

                                              Acer plans to launch two Windows 8 tablet PCs supporting keyboard input, and will soon launch several Android smartphone models, including the A9- and C-series in September. Acer`s CA and C1 smartphones will be demonstrated in pan-European market in the fourth quarter possibly in cooperation with some telecom carriers.

                                              Industry sources said that Asus` new tablet PC TF500T will be priced between its lower-end Transformer Pad TF300 and high-level model Transformer Pad Infinity TF700.

                                              Some institutional investors deem that after the Windows 8 products go to market, consumer response will decide how intensive PC vendors will promote compatible models.

                                              Lenovo has also announced to launch price-competitive Windows 8 tablet models priced from US$200 to US$300, with its IdeaPad Yoga notebook PC also to be announced in October.

                                              According to PC part and component suppliers, all major international vendors, including Dell, HP, Lenovo, Samsung, Acer and Asus, are actively developing Windows 8 products, leading to parts suppliers` revenue peaks in the fourth quarter.

                                              Compal Electronics Inc., a major contract notebook PC assembler, is reportedly developing Windows 8 notebook PC models for HP, which plans to unveil the new models in the fourth quarter to boost sales in the Christmas season.

                                              Acer to Keep Launching Netbook PCs: Chairman Wang [CENS, Sept 18, 2012]

                                              In the face of tablet PCs encroaching on sales of netbooks worldwide, J.T. Wang, chairman of Acer Inc., a Taiwanese, globally leading brand vendor of PCs, stated that his company will keep launching netbook models in the future.
                                              Since the launch of Apple Inc.’s iPad in 2010 ignited the market for tablet PCs, such emerging electronic devices have rapidly eaten into market shares of netbook PCs over the past few years. This forces most PC vendors, including Samsung, Dell and Lenovo, to consider giving up the diminishing market.
                                              Acer’s Taiwanese counterpart Asustek Computer Inc., which once rode on netbook PCs to achieve bigger shares of the global laptop market, also confirmed earlier that it will retire netbook PC production lines starting in the fourth quarter of this year, since such products, the company’s CEO Jerry Shen said, have already fulfilled tasks for the development of the global PC industry.
                                              Another factor prompting PC vendors to exit the netbook market is the lack of support from Microsoft and Intel. Accordingly, Microsoft doesn’t launch any starter edition of Windows 8 for netbook PCs, while Intel will focus the development of its Atom processors on tablet PCs and smartphones. This has made netbook PCs even more unworthy of development.
                                              But, Acer’s chairman Wang is still optimistic about the market for netbook PCs. He said that consumer demand for such devices will continue growing in emerging countries, not to mention that netbook sales in developed countries still make up a majority of the global total at present. Therefore, Wang said promotion of netbook PCs will remain part of his company’s product strategy in the short term.
                                              The latest statistics issued by International Data Corp. (IDC), a global PC market researcher, show that global sales of netbook PC totaled 8.913 million units in the first half of this year, with 26.2% of which supplied by Acer. The sales volume is estimated to reach between 15 million and 16 million units for the whole year.
                                              With most of its peers jumping out of the market, Acer, backed by strong brand recognition and huge outlets, is expected to take over most of the shares that they will leave to dominate this segment.

                                              Shares by Top 5 Brands in Global Market for Netbook PCs in Q2

                                              Ranking

                                              Brand

                                              Sales Volume

                                              Market Share

                                              1

                                              Acer

                                              1.182 million units

                                              26.2%

                                              2

                                              Asus

                                              1.019 million units

                                              22.6%

                                              3

                                              HP

                                              413,000 units

                                              9.2%

                                              4

                                              Samsung

                                              407,000 units

                                              9.0%

                                              5

                                              Canaima

                                              293,000 units

                                              6.5%

                                              Source: International Data Corp.

                                              Contract Manufacturers Make About Nine Out of 10 Media Tablets in 2012 [IHS iSuppli press release, Sept 21, 2012]

                                              Although your new media tablet may sport the logo of a familiar brand name like Apple or Amazon, there’s a 90 percent chance the device was actually made by a company with a much less famous moniker, such as Hon Hai or Quanta.
                                              That’s because the vast majority of tablets—including the iPad and Kindle Fire—actually are made by contract or outsourced manufacturers based in Asia, according to an IHS iSuppli Global Manufacturing & Design Report from information and analytics provider IHS. (NYSE: IHS). The percentage of tablets made by outsourced manufacturers is set to rise this year and beyond as brands seek to minimize operational risks and reduce costs.
                                              Outsourced manufacturers in 2011 were responsible for 87.5 percent of tablet production, compared to 12.5 percent that were made in-house. The percentage of outsourced tablets this year is expected to increase to 89.2 percent, with the portion claimed by in-house production projected to decline to 10.8 percent, as shown in the figure below. The years after that will see the share by outsourced manufacturing of tablets remain in the low 90 percent range, hitting a high of 91.1 percent by 2015 before settling back down at 90.4 percent in 2016.
                                              “The high percentage of outsourced manufacturing of tablets reflects the choice among tablet brands and original equipment manufacturers—even ones as big as Apple—to refrain from in-house production,” said Jeffrey Wu, senior analyst for OEM at IHS. “Tablet brands use outsourcing for many reasons, including faster time to market; the leveraging of capabilities, especially for firmware development and hardware integration; and asset flexibility that translates into reduced corporate expenditures and lower headcount.”
                                              Hon Hai Dominates Tablet Contract Manufacturing
                                              The biggest contract manufacturer of tablets is Apple partner Hon Hai, of Taiwan, also known as Foxconn. Hon Hai accounted for 62 percent of tablet shipments last year. The company’s position in the tablet space is unique—not only because it accounts for the majority of tablet shipments in 2011, but also because of its close relationship with Apple.
                                              Hon Hai is an EMS provider, a type of outsourced manufacturer that generally does not participate in designing product but simply offers manufacturing and supply chain management services. EMS providers for the most part control a smaller piece of the outsourced manufacturing space for computing products like notebook PCs—traditionally dominated by a rival group of makers known as original design manufacturers (ODM), which enjoy an advantage over EMS providers by being able to design products and offer manufacturing services alike. In the tablet production space, however, ODMs are the underdogs.
                                              This is because Hon Hai, with Apple as its main client, holds the coveted right to make the iPad, the industry’s best-selling tablet by a wide margin. The ODMs have then been left to scramble for what remains of the tablet market—making rival devices for the likes of Barnes & Noble, Amazon and Asus, none of whose product offerings matches the iPad’s soaring sales and unequalled clout.
                                              Android and Windows Power Rise of ODMs in Tablet Market
                                              With the emergence of Android—and soon, Windows-based tablets—ODMs will have a better chance of breaking Hon Hai’s near-impregnable hold on the market. If the Android and Windows tablets prove successful, ODMs could see their share of the tablet outsourcing market grow, expanding to as much as 53 percent by 2016, on the assumption that consumers will embrace iPad alternatives.
                                              Nonetheless, concerns for ODMs and Hon Hai alike could be in store.
                                              Currently sidelined in much of the dynamic tablet space, ODMs also have concerns about their prospects in future tablet production. Most ODMs make notebook PCs as well, and choosing to produce tablets for other clients could mean endangering their own stake in the PC market—much as tablets are now eating into the share traditionally enjoyed by notebook computers among consumers. However, strengthening their foothold in the tablet space is inevitable for ODMs, especially as tablets continue to gain momentum at the expense of notebook computers.
                                              ODMs also face potentially higher operating expenses and risks with the emergence of more tablet platform options—signified by the rise of Android and Windows—which would involve additional research and development costs in order for ODMs to maintain technical capabilities on those fronts.
                                              Hon Hai, the current champion among tablet producers, is likewise not entirely free of peril. Should Apple shift some of its tablet production to other contract manufacturers in an effort to diversify its contract manufacturing base, Hon Hai could suffer a blow.
                                              For other tablet brands like Samsung and Motorola that choose in-house production, their share of tablet manufacturing is not expected to exceed the 12.5 percent that the collective in-house space saw in 2011. Share of in-house production in the years ahead will stay in the 9 to 10 percent range, IHS  predicts, as ODMs and EMS providers battle fiercely among themselves for an increasing stake in the hotly contested tablet business.

                                              7. Possible further hardware advances
                                              sustaining this new trajectory.

                                              The current and already mature value proposition in brief is:

                                              the rhombus tech initiative, along with the EOMA-68 standard, has been designed to tackle the very problems that RockChip and other SoC vendors face. our strategy is very straightforward:

                                              a) invite SoC vendors to release EVBs in a standardised modular form which can go straight into mass-production, needing only a very simple 2 to 4 layer PCB for the main I/O of any matching product.

                                              b) standardise and therefore greatly simplify the software development. the advantage of having standard I/O boards (products into which the CPU Modules can fit) is that the software for those products will already have been written. porting a CPU Card to work in a range of existing hardware products is far, far simpler than forcing everyone to design complete products from scratch (including the software).

                                              the cost savings and time savings should be evident, and this is absolutely critical and will only become more so as the prices are driven down further by 28nm and beyond, as well as the product lifecycles becoming shorter and shorter.

                                              it’s quite complex to explain initially but very straightforward once it’s fully understood, and very exciting as well. would you be so kind as to mention to Mr Chen that we would love to work with him, especially to help introduce RockChip CPUs properly into the Free Software Community, which will result in considerable engineering cost saving for RockChip, apart from anything else? i am easy to find on the internet but here is my email address anyway: lkcl@lkcl.net

                                              Comment on 10/1/2012 by Luke Kenneth Casson Leighton, CTO at Rhombus Tech entered for China Fabless: Rockchip rattled by Android tablet wars [EE Times, Sept 25, 2012] 

                                              Latest information: A10 EOMA-68 CPU Card [luke.leighton | 24 Nov, 2012]

                                              hi folks, small update: wits-tech detected an ambiguity in how the usb
                                              interfaces work, which needed clarification from allwinner as well as
                                              a PCB layout alteration.  we'll have more details as-and-when they're
                                              available to us and as-and-when knowledge of the solution has been
                                              shared with is.  usual china "save face" thing is going on at the
                                              moment i.e. don't share details of the problem until a full solution
                                              has been found.
                                              
                                              what this translates into is at least another 2 weeks whilst the new
                                              PCB layout's done and the new sample PCBs are printed.  obviously
                                              that's an estimate, as it's beyond our control.

                                              Note: wits-tech = Shenzhen WITS Technology Co.,Ltd

                                              The original concept of a year ago:

                                              Embedded Open Modular Architecture/EOMA-68 [Embedded Linux Wiki, Sept 23, 2012]
                                              earlier: Embedded Open Modular Architecture/PCMCIA [Embedded Linux Wiki, Sept 5, 2011 – March 11, 2012]

                                              The Obligatory Tablet – a simple tablet motherboard which could potentially be developed as a very low cost single-sided 2-layer PCB. Components are chosen to reduce development cost and risk, as well as reduce manufacturing cost.

                                              Embedded Open Modular Architecture/EOMA-68/Tablet [Embedded Linux Wiki, Sept 21, 2011],
                                              note that what is excerpted below had not essentially been changed till Feb 12, 2012, the last date of change for this wiki page

                                              The Tablet Motherboard

                                              Popular by decree, but only successfully-sold when the price is stunningly low yet the feature-set rich, tablets are the “must-have” for all ODMs and OEMs who aspire to a chunk of the large apple pie. Key goals for this motherboard are therefore to be small, slim, low component count and based on a low-risk development strategy. Thanks also to the modular design, the board is sufficiently simple that it may even be possible to do as a single 2-layer PCB, thus reducing costs even further.

                                              Connectors and Components

                                              The connectors required are:

                                              • 1x USB2
                                              • PCMCIA Connector “inline” (signals conforming to EOMA/PCMCIA Standard)
                                              • 5V Power
                                              • 1x PCI Express “inline” (supporting USB Wifi, not PCI-e Wifi, such as RT2070 and RT8191)
                                              • 1x Stereo Speakers and Microphone
                                              • 1x RGB/TTL LCD Output (with LED Backlight)
                                              • 2x Battery Connectors

                                              Major components are:

                                              • An STM32F103RBT6 Embedded Controller (same as in the Micro Engineering Board)
                                              • A 4-port USB-2 High-speed Hub (e.g. FE11
                                              • 12.5Mhz XTAL (for the USB Hub)
                                              • Power Management ICs (Buck Converters for 3.8v Lithium to 5.0v; 3.3v LDOs)
                                              • Step-up DC-DC Converter for the LCD Backlight AP3029
                                              • An I2C EEPROM
                                              • An RT2070, RT8191 or Atheros ath9k USB-compliant MiniPCIe WIFI Module
                                              • An Antenna for the WIFI Module
                                              • A 7in LED-backlit LCD (e.g. AT070TN93)
                                              • A resistive or capacitive touchpanel (resistive: low-cost; capactive: expensive, often more expensive than the LCD)
                                              • A slim-line PCMCIA Ejector Assembly

                                              The estimated BOM is therefore around the $30 to 35 mark [Sept 21, 2011 !], excluding the EOMA/PCMCIA-compliant CPU Card, and including the batteries, case and WIFI module. The most expensive component is the LCD Panel, whilst the 2nd most expensive one is the batteries.

                                              Diagram of Tablet Motherboard Layout

                                              From this diagram, it can be seen that there is very little involved. Like the Odroid, it’s possible to have a product where the connectors and buttons define the size of the PCB more than the ICs and discrete components. In this case, many of the major connectors (such as USB-OTG, HDMI, Micro-SD and Headphones) will already be on the EOMA/PCMCIA-compliant CPU Card, leaving nothing left for the motherboard than to provide USB2 and Power connectors! An alternative revision is also shown which takes a USB 3G Modem, in PCI-e form-factor.

                                              image

                                              Diagram of Tablet Construction

                                              image

                                              Others:     Laptop                                               LCD Monitor (TV)

                                              File:A10 eoma pcmcia laptop.pngFile:EOMA Lcd tv motherboard.png

                                              Embedded Open Modular Architecture/EOMA-68 [Embedded Linux Wiki, Sept 23, 2012]
                                              earlier: Embedded Open Modular Architecture/PCMCIA [Embedded Linux Wiki, Sept 5, 2011 – March 11, 2012],
                                              note that the excerpts below are essentially as of Sept 21, 2011, image: Jan 16, 2012

                                              EOMA-68 Specification

                                              This page describes the specification of EOMA-68. The number of pins on the interface is 68; the physical form-factor is the legacy PCMCIA.

                                              Re-purposing of the PCMCIA interface and form-factor has been chosen to create portable Embedded Computing Modules (Computer on Module). Mass-volume “Lowest Common Denominator” interfaces have been chosen, all of which have existed for over a decade, but are low-power enough to be standard across virtually all mass-produced powerful Embedded CPUs.

                                              The interfaces are:

                                              • 24-pin RGB/TTL (for LCD Panels)
                                              • I2C
                                              • USB (Low Speed, Full Speed, optionally Hi Speed/480 Mbit/s and optionally USB3)
                                              • 10/100 Ethernet (optionally 1,000 ethernet)
                                              • SATA-II (optionally SATA-III)
                                              • 8 pins of General-purpose Digital I/O (GPIO).

                                              These interfaces are NOT OPTIONAL for CPU Cards. All CPU Cards MUST provide all interfaces. I/O Boards on the other hand are free to implement whichever interfaces are required for the device. For example: whilst all CPU Cards must have an SATA interface, devices such as tablets or laptops into which CPU Cards are plugged are not required to have an SATA hard drive.

                                              Future Versions

                                              … At the time of writing (2011), the interfaces in the 1.0 Specification are “Lowest Common Denominator” yet are still present across the majority of 2011’s powerful embedded SoCs (OMAP4440, Enyxos4210, Tegra 3, iMX53 etc.) However, in the future, the “Lowest Common Denominator” could well comprise MIPI instead of RGB/TTL, 2 lane PCI-express (or its successor), and USB-3 instead of USB-2 (perhaps even a faster version of ULPI).

                                              As of 2011 however, the total number of Embedded CPUs supporting all these newer interfaces and still keeping to a 1.5 watt budget is precisely zero. Support for these high-speed interfaces will therefore be re-evaluated in 2 to 3 years time, and a future version of this standard created when a large proportion of available embedded CPUs have these or other high-speed interfaces that are available at the time.

                                              The project had been initiated by a Crowd funding proposal [Rhombus Tech, Dec 25, 2011],

                                              note that Rhombus Tech website rhombus-tech.net started on Nov 18, 2011 as well as there was an earlier low-cost EOMA-PCMCIA CPU Card initiative (allwinner cortex a8) e-mail by Luke Kenneth Casson Leighton <lkcl@lkcl.net> on Dec 14, 2011
                                              To: opensuse-arm@opensuse.orglinaro-dev@lists.linaro.org, arm@lists.fedoraproject.orgmeego-community@meego.com,ubuntu-server-arm@lists.ubuntu.com,   maemo-developers@maemo.org, gentoo-embedded@lists.gentoo.orggeneral@lists.tizen.org,
                                              ARM <debian-arm@lists.debian.org>
                                              Cc: Linux on small ARM machines <arm-netbook@lists.phcomp.co.uk>

                                              Aim: Small (Free as in Speech) Linux device which can be upgraded

                                              In particular, a small CPU card which:-

                                              • Complies with GPL (Free as in Speech)
                                              • Powerful
                                              • Upgradeable
                                              • Cheap

                                              For example I can buy a tablet, after a few years the display, touch-screen and memory will be perfect. After a few years I may want to upgrade the CPU, or fix a software bug, or both – at the moment this is not possible.

                                              We are aiming for this CPU Card will have full GPL Source Code publicly available and will be suitable for many purposes including use as a Freedom Box, or as an embedded computer, or in the future to drive products such as Tablets, Laptops, IPTVs and Desktop PCs simply by plugging it in. These devices can then run a nice GNU/Linux distribution like Debian, Ubuntu or similar.

                                              Current Situation
                                              Not many tablets or small devices run a nice GNU/Linux distribution like Debian, Ubuntu or similar. They are either low powered, closed source, GPL violating or not cheap.
                                              The problem that if you want low-cost mass-produced hardware, you normally have to go with GPL-violating product. We then spend the majority of our time reverse-engineering before getting something useful. By the time we are done, the product is usually end-of-life: thus if it breaks, we are back to square one. If there is a security bug in the kernel supplied – again we are back to square one.
                                              The reason for the GPL violations is that the low-cost China-based Factories simply have zero software skill and a chain of about five business relationships between the seller and manufacturer. The manufacturer has got their money at this stage, so at this point we are asking the manufacturer for more effort in return for no extra income. Thus, we logically concluded that the only way to get non-GPL-violating product out there is to go directly to the factories and be the supplier of their software.
                                              Aim of this Funding Round
                                              To get funding, to deliver a stable CPU on a card:-
                                                • GPL: Full source code available.
                                                • Powerful: 1.5ghz
                                                • Upgradeable: A standard layout, which will allow the card to be ejected and replaced.
                                                • Cheap: Stable version at $30
                                                  Long Term Aim
                                                  High-volume production, then the costs will be $15. Yes $15 for GPL-Loving, powerful, packaged CPU Card.
                                                  So put this with :-
                                                    • 2000mAh battery $8,
                                                    • 7in 800×600 LCD $15,
                                                    • resistive touchpanel $5,
                                                    • main motherboard including WIFI module about $8,
                                                    • Case about $3

                                                      Total of $39. yes, really – $39. So basically, you can see that a mass-volume retail cost of about $80 for a 7in tablet with the Allwinner A10 and a resistive touchpanel would be quite reasonable. Running Debian, with a CPU upgrade only costing $15.

                                                      Progress So Far
                                                      Rhombus Tech has been established to serve Free Software Developers, entrepreneurs, enthusiasts and Engineers with access to affordable, modern and importantly GPL-compliant hardware. It is a Community interest company – designed for social enterprises that want to use their profits and assets for the public good.
                                                      Over the past two years we been contacting and vetting China-based factories, directly, to find at least one which is prepared to work with us. We found one.

                                                      We have also found an absolutely great CPU, called the Allwinner A10, which in mass-volume quantities is only about $7: that means that a PCB similar to the raspberrypi with similar features can be made for about $15 (not $25) and, because the Allwinner CPU is an ARM Cortex A8 not an ARM11 it is at least three times quicker than the raspberrypi’s CPU. (A 400-pin highly feature-rich 1.5ghz ARM Cortex A8 with a MALI400 GPU. )

                                                      We have full support of the Board of Directors of the Allwinner CPU: they released full source code to us in advance. We have made it available and found it to compile successfully.

                                                      We have selected a standard layout, which will fit within 55mm, which large number of pins can be removed by the user without damage. Which will be the cases are already available and which will have a trivial cost in low-volumes. A PCMCIA format.
                                                        • Complies with GPL – Yes
                                                        • Powerful – Yes
                                                        • Upgradeable – Yes
                                                        • Cheap – Not yet.
                                                          Next Steps
                                                          The primary reason for using a Community Interest Company for the sale of GPL-compliant products to Free Software Developers is that profits from sales will be re-invested directly into development of further products, with a primary focus of serving the Free Software Community yet at the same time leveraging mass-volume sales opportunities.
                                                          But this needs a kick-start. Then the end-product will get cheaper, then profits are re-invested and end-products get cheaper still. The snowball needs a little magic snow to get it started.
                                                          Magic Snow required: $13,500
                                                          To fund the three stages:-
                                                            • Unstable (Also know as Sid for all Debian lovers) : $3,500
                                                            • Testing Stage: $4,000
                                                            • Stable: $6,000
                                                            • Long Term Support: Self-funding
                                                              Unstable
                                                              5 CPU cards available at a cost of $3,500
                                                              A initial cost of $2000 per “board development change”. This is the non-recurring expense. This sets up the PCB tooling so further changes cost about $1500. The aim is to have a development board, tweak then have a second set of development boards.
                                                              This gives us the hardware only – about 5 development boards available. Time for the 15 Debian developers, already on board to start coding. (Bootloader, Kernel and main software).
                                                              Timeframe – AA months
                                                              Rhombus Tech to loan the boards to the developers, free as in beer, in return for help with coding.
                                                              Testing
                                                              100 CPU cards available at a total cost of $4,000 Timeframe – AA + BB months
                                                              We have a board, the bootloader work and the kernel is okay. No full Distribution images as yet. If you are a software developer and are basically happy to get involved doing u-boot, debian-installer, ubuntu images a board is suitable to play with at this point. Hard, but not impossible.
                                                              Rhombus Tech to loan half (50) CPU cards to developers, free as in beer, in return for help with coding. The other half of the board to be sent as premium rewards.
                                                              Stable
                                                              250 CPU cards available at a total cost of $6,000 Timeframe – AA + BB + CC months
                                                              Rhombus Tech to give 50 boards to developers, free as in beer who helped with coding. The remainder of CPU cards to be sent as rewards.
                                                              Long Term Support (Just for Ubuntu lovers)
                                                              Timeframe – AA + BB + CC + DD months CPU Cards at less than $30
                                                              The CPU cards can then be produced in mass-volume. Sold through Rhombus Tech, with profits used to seed further CPU upgrades.
                                                              Rewards
                                                              Total funds required for Unstable, Testing and Stable stages: $13,500
                                                                • Testing CPU Cards – $50 (Aiming for 50 = $2,500)
                                                                • Stable CPU Cards, with working OS image – $50 (Aiming for 50 = $2,500)
                                                                • Stable CPU Cards – $35 (Aiming for 200 = $7,000)
                                                                  Special Rewards
                                                                    • A Rhombus Tech Sticker sent world wide – $5 ($1.50 profit per sticker)
                                                                    • Mention in the source code – $5
                                                                    • A certificate mentioning your contribution to the Small (Free as in Speech) Linux device which can be upgraded. – $10
                                                                    • A testing CPU Card, with your choice of Debian Packages loaded by a Debian Developer – $250
                                                                    • You select the code name for the Unstable Board (legal, ethical names only) – $250
                                                                    • You select the code name for Testing CPU Card (legal, ethical names only) – $500
                                                                    • You select the code name for Stable CPU Card (legal, ethical names only) – $1,000

                                                                    Then more information came in the for of FAQ [Rhombus Tech, March 25, 2012]

                                                                    What’s the goal, again?
                                                                      • To create a synergy between the ultra-low-cost Factories and SoC vendors of China with their expertise in Hardware, and Software (Libre) Developers with their expertise in GNU/Linux and other OSes, with a view to leveraging the combination to create affordable and desirable mass-volume products that are GPL-compliant before they hit the Retail Hypermarket shelves;
                                                                      • For those products to be modular, versatile and open, so that they can be upgraded without the environmental waste of throwing away an entire device; for Retailers, Factories and users to be able to keep up with the rapid and increasing pace of technological development;
                                                                      • For anyone to be able to use the products for their original purpose as well as for Educational purposes, Research, Engineering and more.
                                                                        How will this goal be achieved?
                                                                        Very carefully, in small steps, having learned from the experiences of the OpenMoko and OpenPandora projects.
                                                                          1. Produce very simple EOMA-68-compliant CPU modules which can act as stand-alone computers in their own right (powered via USB-OTG) so that Software (Libre) Developers have something to start working on.
                                                                          2. Start designing IO boards.
                                                                          3. Software (Libre) Developers help develop the software to run on the products.
                                                                          4. Products go to market.
                                                                          5. Profit.
                                                                          6. Use profits to repeat the process, to the benefit of all parties, including the Software (Libre) Developers.
                                                                            And… a CIC? really? But those are for Social Clubs!
                                                                            The rules for CICs are “to not make a loss”, which makes sense for any business. There is no limit on the profitability of a CIC: it’s just that, at the end of each Financial Year, the profits have to be allocated to a charitable cause, or they have to have been ploughed back into the business. A Community Interest Company simply does makes more sense in the context of the goals of bringing Software (Libre) Developers together into this exciting technological area that has previously been dominated by vertical market sales strategies.
                                                                            Why is the price of the Allwinner A10 EOMA-68 Card $15?
                                                                            It damn well isn’t! We are getting a massive amount of misunderstandings about this. We have reported that based on estimates from the Reference Board supplied by the Manufacturer of the SoC that the MATERIALS COST is APPROACHING $15 in MASS VOLUME quantities of 100,000 units.
                                                                            That is excluding a case, power supply (which as the unit can be powered by USB-OTG is not needed), packaging, tax, customs duty, shipping and, most importantly, a profit margin.
                                                                            Any company has to make a profit, and a CIC is no different. Charities and Not-for-Profit Foundations can get away with not making a profit, but Rhombus Tech is not a Charity.
                                                                            Profits made will be used to fund Free Software Developers, as well as future CPU Cards and the creation of Reference Design Products: Laptops, Routers and so on, all of which will be done in an Open fashion.
                                                                            What is EOMA?
                                                                            It stands for “Embedded Open Modular Architecture”. The concept of modular architecture isn’t new: many companies have divided out CPUs into separate PCBs or modules, but it just hasn’t been done recently, not on a mass-volume scale and not on a user-controllable basis. See the elinux.org EOMA page for more information.
                                                                            Why re-use PCMCIA??
                                                                            It’s legacy – nobody makes PCMCIA cards any more: it’s all changed to the PCIe-based “PCI express” aka “ExpressCard” thing. However, it turns out that Satellite TV “Conditional Access Modules” are in PCMCIA form-factor, meaning that the connectors, housings and assemblies are all still mass-produced. So there’s less risk of having someone destroy their CPU card if they force-break the mechanical barriers (see specification for details) but the pricing on parts is still good in mass-volume quantities.
                                                                            What’s so special about the interfaces on EOMA-68?
                                                                            The interfaces that have been picked happen to have been around for at least a decade, and the number of pins, including 16 pins of GPIO and including enough GND pins to separate each of the high-speed signals, by a jammy coincidence comes to exactly 68 pins.
                                                                              • RGB/TTL: 28 pins
                                                                              • USB2: 2 pins
                                                                              • I2C: 2 pins
                                                                              • 10/100 Ethernet: 4 pins
                                                                              • SATA-II: 4 pins
                                                                              • GPIO: 16 pins
                                                                              • 5V Power: 2 pins @ 0.5A per pin
                                                                                The total comes to 58 pins, and there are 5 groups of GND pins to separate each group. Grand total: 68 pins. jammy or what? More information is available here.
                                                                                Whoa, wait, PCMCIA is 100ohms approximately!
                                                                                Yes, we know. It’s not all bad. By a coincidence, SATA-II is 100 ohms and USB-2 is 90 ohms. We think that’s close enough. Absolute absolute last resort: both SATA-II and USB-2 can be ramped down in speed. This would be a bugger, but at least product would work. Other than that: yes it is possible to adjust impedance through careful placement of tracks and ground planes etc.
                                                                                Bottom line: we’ll just have to pick the right PCMCIA connector supplier, that’s all.
                                                                                Why is the first CPU that RHT picked a China-based one?
                                                                                Cost and features – pure and simple. Consumers do not care about Software Freedom – they just don’t. Only Software (Libre) Developers care about Software Freedom. However, GPL Compliance is very very important to RHT, because we do not wish to be liable for GPL violations, and we do not wish our mass-volume Retail Hypermarket Clients to be liable for GPL Violations, either. So, RHT has spent the past two years negotiating with SoC vendors to find one that has the three critical factors of: 1) Cost 2) features 3) GPL Compliance. Amazingly, it was a China-based Fabless Semiconductor Company that first met the requirements. Yes we are looking for more.
                                                                                Which CPUs have you analysed so far, and why were they rejected?
                                                                                We have analysed dozens of CPUs. With the exception of the Allwinner A10, none of them really fulfil all of the criteria. This section turned out to be so large that it was moved to its own page: Evaluated CPUs.
                                                                                So what FSF Hardware-Endorseable options are there?
                                                                                  • The Ingenic MIPS jz4760 (700mhz) – $USD 7 in mass-volume
                                                                                  • The 600mhz ARM Cortex A8 OMAP 3503 ($19, 1k volumes)
                                                                                  • The 720mhz ARM Cortex A8 AM3357 – ($14, 1k volumes and $5 in 100k)
                                                                                    Sadly, none of these CPUs however fulfil the mass-volume criteria of being able to do 3D Graphics or 1080p video. Some of them can do 720p, but that is not enough for commercial mass-volume purposes: it really does have to be 1080p now. 4 years ago, 720p was acceptable: now it isn’t.
                                                                                    These CPUs are listed on the Evaluated CPUs page.
                                                                                    Is this an “Open Hardware” Project i.e. can I get the full schematics?
                                                                                    This is a misleading question: here’s some clarification. The EOMA-68 initiative is an “Open Specification. That means that anyone can create either CPU cards or motherboards that conform to it. Thus, it is possible for anyone to create an “Open Hardware” compliant CPU card or motherboard.
                                                                                    Rhombus Tech has chosen to work with a small, dynamic factory in China that loved the idea of the “we’ll do the software if you do the hardware” deal. It would be rather a different proposition for us to then ask them to release the full schematics.
                                                                                    Also in development is a 8mm-high (Type III) EOMA-68 CPU card with a AMD 64-bit x86 APU with Dual-core CPU, integrated Radeon 3D Graphics, with full Free Software support.
                                                                                    Bari also has an initiative to turn the Beaglebone or any other ARM SOC or AMD Fusion APU into an EOMA-68 CPU card, if enough people show interest in this happening. Given that the Beaglebone (and other systems like it such as the IMX53QSB, Origen, Pandaboard etc.) schematics are available under an Open Hardware License, the Beaglebone EOMA-68 CPU Card will be “Open Hardware”.
                                                                                    Additionally, given that the Leaflabs Maple is an “Open Hardware” Project, there exists the possibility for the creation of EOMA-68-compliant Motherboards based around the adaption of Leaflabs Maple Boards.
                                                                                    Summary of the above: it’ll happen. (update: 10jan12 – sooner than anticipated!schematics being developed here).

                                                                                    Rhombus-Tech/ allwinner a10/ news

                                                                                    24 Jul 2012: Casework for EOMA-68 CPU Card

                                                                                    Titoma Design is delighted to be involved with the EOMA-68 project and has a preliminary design for the first EOMA-68 CPU Card, using the Allwinner A10 SoC. Titoma Design specialises in casework and full product design, and will be more than happy to assist clients to develop products based around the time and cost saving benefits of the EOMA-68 upgradeable design strategy.

                                                                                    28 Jul 2012: GPIO and Expansion Headers for EOMA-68 CPU Card

                                                                                    A rework of the GPIO and Expansion Headers for the first Qimod EOMA-68 CPU Card has been carried out. Almost all interfaces available of the Allwinner A10 CPU have been made available on the 55x85mm Credit-card-sized CPU Card, including both Transport Streams, SIM Card, PATA, the 24-pin Camera Interface, both 24-pin LCD Interfaces, VGA, Composite Video (CVBS), SPDIF, AC97, I2S, GPS, CAN-Bus, Infrared, and many more. This is in addition to the standard EOMA-68 Interfaces of Ethernet, I2C, SATA, LCD 24-pin RGB/TTL, USB2 and 16 GPIO pins.

                                                                                    The rework involved adding an extra optional 45-pin FPC, which is in addition to the optional 44-pin FPC. The orders page has been updated to reflect the full pinouts, as well as the finalised selection for the 16 EOMA-68 GPIO pins.

                                                                                    The most current product information therefore is available on Preorders [Rhombus Tech, July 28, 2012, but preorders are listed from Dec 12, 2011 to Sept 23, 2012]

                                                                                    This is the preorders page for EOMA-68-compliant Allwinner Cortex A8 CPU modules. This product will have full GPL Source Code publicly available, and will be suitable for many purposes including Educational and R&D purposes, a USB-OTG-powered Thin Client, use as a Freedom Box, or as an embedded computer, or in the future to drive products such as Tablets, Laptops, IPTVs and Desktop PCs simply by plugging it in. Some options for hardware that is on the roadmap are described as example motherboards on the EOMA-68 page.

                                                                                    Features

                                                                                    The Allwinner EOMA-68-compliant module will have the following features:

                                                                                    • Approximately Credit-card size format (56mm x 90mm)
                                                                                    • An Allwinner A10, 1.2ghz ARM Cortex A8
                                                                                    • 1gb of RAM
                                                                                    • at least 1gb of NAND Flash (possibly up to 16gb)
                                                                                    • Operation as a stand-alone computer (USB-OTG powered)
                                                                                    • 2160p (double 1080p) Video playback
                                                                                    • MALI 400MP 3D Graphics, OpenGL ES 2.0 compliant.
                                                                                    • HDMI, Micro-SD, Headphones Socket,
                                                                                    • EOMA-68-compliant interfaces (RGB/TTL, I2C, USB2, SATA-II, 10/100 Eth)
                                                                                    • Expansion Header (similar to Beagleboard, IMX53QSB, Origen etc.)

                                                                                    These are the available interfaces on the 44-pin [Expansion Header’s interfaces] DIL:

                                                                                    • 2pins: 1x USB-2
                                                                                    • 8pins: 5-pin AC97 shared with 8-pin I2S Signals.
                                                                                    • 2pins: PWM0 (PB2)
                                                                                    • 4pins: TV-Out, VGA-Out
                                                                                    • 4pins: 4-wire Resistive Touchscreen
                                                                                    • 10pins: LVDS0 (multiplexed with LCD0)
                                                                                    • 10pins: LVDS1 (multiplexed with LCD0)
                                                                                    • 5V and 3.3V power

                                                                                    Due to multiplexing on the Allwinner A10, the following interfaces are also available on the PCMCIA connector via the 24-pin RGB/TTL pins (WARNING: non-EOMA-compliant).
                                                                                    • IDE (PATA)
                                                                                    • 24-bit Camera Sensor
                                                                                    • 20 External Interrupts
                                                                                    • 8×8 Keypad Interface
                                                                                    • 2 full UARTS with RX,TX,CTS,RTS
                                                                                    • CAN-bus
                                                                                    • 2 PS/2 interfaces
                                                                                    • SD/MMC 3.0 Ultra-High-Speed Class, UHC-I
                                                                                    Further multiplexing also allows the I2C interface to be switched over to two extra GPIO pins (WARNING: non-EOMA-compliant).
                                                                                    Also, the pins on the Micro SD/MMC interface can also be switched over to JTAG and a UART. With a special PCB with a Micro SD/MMC slot on the end it is possible to perform debugging of the device, live, without opening it up.
                                                                                    The Infrared Interface on the expansion header supports the following data formats:
                                                                                    • MIR FIR IrDA 1.1
                                                                                    • 0.576 Mbit/s 1.152 Mbit/s Medium Infrared (MIR)
                                                                                    • 4 Mbit/s FIR IrDA 1.4
                                                                                    • CIR
                                                                                    These are being considered:
                                                                                    • 2pins: 3.8v Battery Connection, on separate connector
                                                                                    • 3pins: Reset and Power, on separate connector
                                                                                    • 3pins: u-boot select, on separate connector
                                                                                    Pricing
                                                                                    Regarding pricing: the hardware NREs from the factory are $USD 2,000. Therefore, based on the number of committments so far (23 as of 2011Dec12), pricing looks set to be around $100. By the time the number of preorders reaches 30, that will be around $75 (30 reached as of 2011Dec17). (Update: as of 2012Mar01 the alpha units have reached 141 and it’s down to $41 per unit assuming NREs of $2,000 and component costs of $30. Please note: we do not yet know the unit cost! this is entirely preliminary!).
                                                                                    The mass-volume (100k units) cost will be somewhere around $15: the more committments received, the closer the price will get to that. One expression of interest has been received for 1,000 (stable) units: a pricing evaluation request is outstanding with the factory and will be reported as soon as it is received.
                                                                                    Please note: this cost excludes a case, power supply, packaging, shipping, tax, customs and import duty. and profit.
                                                                                    Software Freedom Information
                                                                                    Regarding Software Freedom: the caveat regarding this CPU is that it requires ARM-proprietary libraries for the 3D Graphics (as does virtually every single suitable consumer-grade embedded SoC on the planet with the almost exclusive sole exception of the Ingenic jz4760 and some of the TI ARM Cortex OMAP and Sitara SoCs). However, simply not using the proprietary MALI 3D GPU does not impact any other functionality in any way.
                                                                                    (update: MALI 400MP is being reverse-engineered)
                                                                                    Yet to be determined is how to program the proprietary 2160p MPEG decoder, but through a preliminary examination of the GPL Source Code it would appear that the drivers are publicly available. However, this CPU does have NEON, so can be used for Software Decode of Open CODECs.
                                                                                    Overall: if this module is not for you, an AM3357 module may be more suitable.

                                                                                    [committments so far:
                                                                                    – 23 as of Dec 12, 2011
                                                                                    – 30 as of Dec 17, 2011
                                                                                    – 141 alpha units as of Mar 01, 2012
                                                                                    large (=5 or more) number of units on preorder after Mar 01:
                                                                                    215= 43×5
                                                                                    762=9×10+1×15+1×18+3×20+1×30+1×49+2×50+4×100
                                                                                    3466=1000+1000+1000+466
                                                                                    75000=15000+50000+10000
                                                                                    so the whole project looks quite feasible from the point of view of achieving the $15 unit cost for which 100K units should be on order
                                                                                    ]

                                                                                    Rhombus-Tech/ allwinner a10/ news

                                                                                    6 Sep 2012: PCB design completed for EOMA-68 CPU Card

                                                                                    Many thanks to Wits Tech for completing the PCB design: the board layout and GERBER files are done. This brings the A10 EOMA-68 CPU Card one step closer to reality. The next stage is to get initial samples made up, the first script.fex created and a first boot completed.

                                                                                    [Wits Tech with products such as: MID and PCBA, e-book, smart MP4, 1080P high-definition MP4, 768P, 1080P harddisk player, IPTV, Google TV-BOX and so on]

                                                                                    Following on very very quickly from this, and driving a rather fast development schedule, is a commission from a client to convert an existing x86 laptop (1280×800) over to using the new A10 EOMA-68 CPU Card, and to provide 25 working prototypes for a Trade Show. Luckily, as the CPU Card is completely independent of the I/O Board, separate teams can focus on the development tasks.

                                                                                    Other news coverage:

                                                                                    Marketing Strategy [Rhombus Tech, May 1, 2012]

                                                                                    • TTM – Time to market lead
                                                                                    • Open versatile Common Platform
                                                                                    • EOMA One

                                                                                    Three ways EOMA helps to bring new products to market faster and save money

                                                                                    EOMA – From month to weeks TTM reduction
                                                                                    ODM
                                                                                    One platform, many Distros: Vanilla GNU/Linux, Android etc.
                                                                                    Software comes pre-flashed by default
                                                                                    One module, many applications
                                                                                    Instant upstream compatibility with Linux GIT tree
                                                                                    OEM
                                                                                    Need for software expertise is removed from OEM side
                                                                                    BOM reduction X 5
                                                                                    Access to bigger market platform
                                                                                    Readapting the design is as easy as changing one module
                                                                                    System Integrators
                                                                                    Quick access to many ODM designs
                                                                                    Plug and play
                                                                                    LOW TTM and high flexibility
                                                                                    Update process is made trivial and faster
                                                                                    Reasoning behind the Marketing Strategy
                                                                                    EOMA is platform for the whole industry that benefits the whole “food chain”.
                                                                                    Its good for ODM because they will have upstream support and they will be able to support their own clients better.
                                                                                    For OEMs the benefit is that they will no longer need to deal with software by themselves, it simplifies production and logistics, lowers production run times thus less cost of capital.
                                                                                    For integrators, the benefit is less obvious, but its also lower time to market, increased ability to reuse existing designs.
                                                                                    In general, the idea is that EOMA uses open source principles to increase efficiency across the industry. EOMA will be doing to computer hardware market the same thing what linux has done to server OS market.

                                                                                    Rhombus Tech Presentation [Rhombus Tech, March 12, 2012]

                                                                                    • what is the project.
                                                                                        EOMA is an initiative to separate the platform from the widget
                                                                                        EOMA module is System-On-Module that will come in standardized 68 pin package
                                                                                        It can utilize most of low cost SoC of your choice. At current stage, Allwinner A10 is the favoured chip.
                                                                                        The first EOMA-68 CPU Card is Cortex A8 based design
                                                                                        Module provides I2C, USB, Ethernet, SATA, 8 bit ttl rgb (display), and gpio on remaining pins
                                                                                        At current stage Rhombus plans to reinvest all profits into platform development and improvement
                                                                                        • what is the advantage and scenarios.
                                                                                            Rhombus facilitates upstream integration with linux and other major OSS projects.
                                                                                            OEMs receive standard platform that greatly reduces time-to-market.
                                                                                            OEMs no longer need to contract ODMs or have extensive software expertise to make a worthwhile product.
                                                                                            • what is the latest status of this project.
                                                                                                Rhombus is in process of getting pre-orders
                                                                                                lkcl [Luke Kenneth Casson Leighton] is working with manufacturers to start production

                                                                                              See also: Embedded Open Modular Architecture

                                                                                              This slideshow could not be started. Try refreshing the page or viewing it in another browser.


                                                                                              More background: British company looks to create cheap, open platforms [iTWire [Australia], Jan 10, 2012]

                                                                                              Luke LeightonA British community interest company, Rhombus Tech, is part of the way towards developing a micro-computer on a circuit board, much like the Raspberry Pi.
                                                                                              The man behind the effort, Luke Kenneth Casson Leighton, says his product will be much more powerful, having an ARM Cortex A8 CPU, which is 3x times faster than the 700mhz ARM11 used in the Raspberry Pi. The mass-volume cost target being aimed for is $US15 and it will be available for educational purposes as well as being a part of a retail product line.
                                                                                              Leighton (pictured above), who is a free software developer, is also attempting to bring together FOSS developers with Chinese hardware makers, so that each can use the other’s creation and benefit from doing so.
                                                                                              He has ambitious plans for Rhombus Tech to help build a number of devices, including a tablet, using the same method – harnessing the effort of free software developers and Chinese hardware manufacturers.
                                                                                              One thing he sees as a plus in the tablet effort is that it will create an Android system that conforms to the norms of the GPL and be easier for FOSS developers to deal with. At present, there is a plethora or tablets and many of the manufacturers, who are the vendors as well, are unaware of GPL requirements or else do not care.
                                                                                              “We are acting as the catalyst to invite other people to make such products by inviting them to participate, through the EOMA-PCMCIA initiative – simplified modular upgradeable hardware – and putting them in touch with Software (Libre) Developers,” Leighton says.  
                                                                                              “We’re not funding the products, we’re doing deals with factories and with SoC fabless semiconductor companies, offering them free access to free software developers, asking them in return that they not charge us for their hardware engineering time.”
                                                                                              Leighton says the efforts he is making are both altruistic and profit-oriented. “The fundamental principles behind Software (Libre) are more important to me than profit, but no profit gets you nowhere, so we’re setting out to do something rather unusual: merge both worlds.
                                                                                              “I’ve learned the lesson: you can’t make money from selling software (Libre) as a service in a world which has been Pavlov-trained to pay for boxed product and zero for the service. Patronage is dead – I’m the lead developer of – or have been the lead developer of – quite a number of free software projects, and the amount of money I’ve received through donations since 1996 is under $1000 in total. That’s under $65 per year, despite saving hundreds of thousands of businesses vast sums of money in proprietary software licence fees.
                                                                                              Instead, we’ve made the decision to profit from sales of hardware, with GPL-compliant software (Libre) pre-installed that actually does the job, masquerading as ‘yet another mass-volume product’ and beating the (GPL-violating) competition on price, convenience and usefulness.”
                                                                                              Leighton has been at this game for nearly eight years. “I started contacting companies to get the source code of Linux phones – the Shanghai-based E28 smartphone, for example – back in about 2004,” he says.
                                                                                              “It was a complete failure. I just had to let the GPL violations go. Instead I focused on reverse-engineering HTC’s smartphones. Then Android came along, some years later, and the situation has clearly got worse, not better.”
                                                                                              But there are some upsides to the plethora of Android devices out in the market. “At least the cost of hardware came tumbling down. However, because of Android and because of the endemic GPL violations surrounding Android, this fantastic hardware, which could potentially be used for so much more than it is, is basically stuck in dead-end roles such as ‘browsing uh few web pagiz’, ‘wotchin uh film’ and ‘playing a few gamez like angry burds’.”
                                                                                              Leighton has had some interesting early experiences trying to achieve his goal, learning through his own mistakes. “As the very first experimental ARM11 (non-x86) Linux-based (non-Android), laptop (non-tablet) hardware began to make its way out of China-based R&D companies, we reached out to them. The first was the Chitech CT-PC89E which turned out to be a complete nightmare, but an important learning curve.”
                                                                                              “Over the course of several months, and after 18 months of thinking about what the hell went wrong, empirical evidence tends to suggest that the development of the CT-PC89E was PRC Government-funded, and was supposed to be used for monitoring of PRC citizens, in a hardware-locked fashion, running an ARM-based PRC-Government-funded port of Red Flag Linux.”
                                                                                              Leighton says that he was “naively” intending to sell this ARM-based laptop in Europe and asked for versions of the laptop that would support European-based EDGE/3G modems. All that he was offered were China Telecom WCDMA modems that would only work in China.
                                                                                              Since source code could not be obtained, he took recourse to reverse-engineering. “We reverse-engineered the Linux kernel (discovering some very poorly-designed ‘security’ measures along the way), installed Debian on it, and an associate of ours took it along to their office and presented one of their machines running Debian/Lenny to them. They went extremely quiet.
                                                                                              “The poor girls at the Chitech factory in China, who have absolutely no software engineers but just ‘make hardware’, were so scared of what they learned, through us, that they pulled the product from their portfolio. We were the first – and last – people to ever order samples. That was over two years ago, now.”
                                                                                              Leighton was not put off, however, and persisted in trying to make headway. Next we decided that this was a ridiculous situation, and began a process of contacting more than 200 factories in China to find one that was willing to do a deal. Two years later, we found one. It actually took going over to China and having face-to-face meetings with over 30 companies even to find that one factory.”
                                                                                              His deal with the factory basically boils down to “we won’t charge you for software engineering if you won’t charge us for hardware engineering“.
                                                                                              “As these factories often have to pay large sums of cash upfront for BSPs (board support packages) and then have to also pay to have them customised so that the factory at least has ‘some’ unique selling point and they ‘still’ end up with a GPL-violating binary-only firmware blob, it’s a good deal for them,” he says.
                                                                                              The problems Leighton has faced make for interesting reading – though they were anything but interesting at the time when he encountered them.
                                                                                              “We’ve bought samples from factories, shipped some of them to potential clients, requested the GPL source code and been denied access to it, in direct violation of the GPL,” he says. “Often we were told that we had to place orders for 20,000 units in order to be given the source code; we told them absolutely not, why the hell would we place such a massive order for an untested product that didn’t do the job that the client needed? In the cases where product was shipped to potential clients prior to non-receipt of the GPL source code, this was incredibly embarrassing for us.”
                                                                                              What he has learned is that there is a long chain of people involved, with communication breakdowns and GPL violations in some cases beginning right at the start of the chain.

                                                                                              “The SoC (system on a chip) manufacturer provides a reference design including a BSP. The reference design is bought by original design manufacturers (ODMs), usually under NDA (which is the first GPL violation). The ODMs license their modifications to factories and give them binary-only distributions, a second GPL violation.

                                                                                              “The factories have absolutely no software engineers. They do not even know what source code is, let alone what an ‘Apache’ (licence) or a ‘GPL’ is. The factories sell product to importers; they in turn sell to wholesalers who sell to retailers and from there it is sold to end-users.”

                                                                                              Leighton says it is absolute hell to chase a GPL violation back through this chain, fighting ignorance and arrogance across international boundaries every step of the way. “After trying to be patient with this process, several times, we have concluded that it is a complete waste of time to pursue GPL violations just to do a deal, selling hardware product that is GPL-compliant: it’s too late by then.”

                                                                                              Instead, he has decided to do things a different way. “We are looking to work with the factories and with the SoC vendors, being involved right down the chain, keeping software (Libre) developers involved and informed along the way as well, such that the products, when they reach the shelves in Europe for example, are fully GPL-compliant before they even get there.
                                                                                              “That involves finding a SoC company, a factory and software (Libre) developers who will trust us, as well as finding a hypermarket retail store in Europe that will trust us!”
                                                                                              Despite all these issues, light is visible at the end of the tunnel. “We’re at a critical phase where we’ve managed to convince our first China-based factory of the value of a ‘we won’t charge you for software engineering time if you won’t charge us for hardware engineering time’ deal. The CPU that we’ve found is an ARM Cortex A8, it runs at up to 1.5ghz, it’s an absolute corker, and it’s only $7 in mass-volume. That means that a PCB that’s equivalent to the Raspberry Pi in size and features could be manufactured for a whopping 40 per cent less money – only around $15 instead of $25, and yet it would be at least 3 times faster than the Raspberry Pi (which uses only a 700mhz ARM11),” Leighton says.
                                                                                              We have the full support of the SoC fabless semiconductor company, Allwinner: they’ve given us full access to the GPL source code and the complete BSP; from a small-scale series of announcements (we’ve kept it to the debian-arm mailing list so far) we have more than 30 software (Libre) developers interested in buying first alphas of the ‘bare-bones’ EOMA-PCMCIA-compliant CPU card using Allwinner’s CPU card.”
                                                                                              While Rhombus Tech’s first product will be just a credit-card-sized PCMCIA CPU card that can run as a USB-OTG-powered computer, Leighton says that, provided there are sufficient advance orders, “for a 10-inch laptop, with Android, we’re looking at mass-volume pricing of around £90, retail, in the UK (and about £125 for a 12in one). For a 7-inch tablet (with the lower-quality but lower-priced resistive touch screen), we’re looking at around £50 retail.”
                                                                                              He says the only reason this is achievable is because there was no £250,000 to £500,000 up-front cost on development of the product – not on the cost of the hardware, and not on the cost of the software. The products will all be fully GPL-compliant.
                                                                                              “What’s even better is that when a new, or faster, or cheaper (or all three) CPU comes along, then rather than force people to throw away the entire device, we will be in a position to pay a factory to get a new EOMA-PCMCIA-compliant CPU card out in record time, and then just sell that through the same channels, as a user-installable ‘upgrade’ to their ‘existing’ laptop, tablet, desktop, internet TV, whatever it is that’s been designed to take EOMA-PCMCIA-compliant CPU cards at the time.
                                                                                              “With the embedded computing market moving so rapidly, we want to give both factories and users the opportunity to keep up-to-date without feeling guilty about land-fill. And, the GPL compliance and involvement of the free software community means that the devices will always be ‘unlocked’, and will serve both their original purpose as well as being a low-cost open educational and R&D platform.”
                                                                                              Rhombus Tech has just five people involved, all operating on a commissions-only basis. The relationships between the five go way back, with the company being set up just two years ago.
                                                                                              Luke Kenneth Casson Leighton, CTO at Rhombus Tech [LinkedIn]
                                                                                              Current: Rhombus Tech [since Nov 2011], Pyjamas, VizzEco Inc.
                                                                                              Previous: NC3A, iYonderBZflag
                                                                                              Education: Imperial College London

                                                                                              I’m a free software advocate, technology specialist and technology researcher.
                                                                                              My vocation is to seek out, understand, document and then explain all the archaic, esoteric and obscure technologies i come into contact with. So far, that has led me to network-reverse-engineering of Windows NT 4.0 Domains; reverse-engineering the High Tech Corporation’s Wince Mobiles in order to run Linux on them just for fun; Adopting Python as a core programming skill before it became fashionable; Writing an XML-based programming language before _that_ became fashionable.
                                                                                              The upshot of all this is that there really isn’t very much in Computing Technology that I would particularly find difficult – or if it _is_ difficult, I’ll be able to tell you why; and if I’ve not encountered a technology before, I’ll tell you so, up-front, and then go find out about it for you. So if you need advice on what technology can do for you, or if you need to know if something is possible, you only have to ask.
                                                                                              Also, I am able to advise on best working practices in Software Development, as I have done a significant amount of Software Engineering and Project Management in Free Software. Free Software leadership is a little different from traditional Project Management, in that the people you’re leading don’t actually have to listen to you! So if there is a delicate situation that needs handling, and your current approaches simply aren’t working and you still need to get results, you might want to consider asking for my help and advice.

                                                                                              Rhombus Tech preparing to launch a PCMCIA-sized computer module for tablets, notebooks, more [Liliputing, Sept 8, 2012]

                                                                                              Rhombus Tech is working on a project to develop a computer module that supports open source software and which can be used in a variety of devices.
                                                                                              The idea is that you’ll have a PC-on-a-board that works a bit like a Raspberry Pi or MK802 mini PC. But instead of using this as a standalone computer, you’ll be able to slot it into a wide range of devices including tablets and notebooks.
                                                                                              So instead of replacing your laptop when the CPU starts to feel outdated, you’ll be able to pull out the module containing the CPU and other vital components and slide in a newer model.
                                                                                              The first Rhombus Tech design is called the A10 EOMA-68, and it’s expected to be a PCMCIA card-sized PC module powered by an Allwinner A10 ARM Cortex-A8 processor.
                                                                                              That’s the same chip used in the Mela A1000, MK802, Mini X, and a number of other inexpensive Android tablets, TV boxes, and other devices.
                                                                                              In fact, members of the Rhombus Tech team were responsible for the first builds of Ubuntu Linux that were able to run on the Mele A1000… which led to a number of developers porting Ubuntu, Fedora, Puppy, and other Linux-based operating systems to run on Allwinner A10 devices such as the MK802.
                                                                                              Right now the A10 EOMA-68 is still in the planning stages, but Rhombus Tech announced that there’s now a PCB design in place, and the next step is to produce samples that can be used for testing and demonstration purposes.

                                                                                              Tom Cubie’s role in the initiative and elsewhere:

                                                                                              Tom Cubie’s Public Profile – Ushi

                                                                                              Tom Cubie cubieTech co-founder
                                                                                              China’s Mainland
                                                                                              Guangdong – Zhuhai >>>>>>>>>
                                                                                              Industry: Semi-conductor

                                                                                              Work Experience

                                                                                              嵌入式软件工程师 [Embedded software engineer]
                                                                                              珠海全志科技 [珠海Zhuhai全志科技Allwinner Technology] (100 ~ 499)

                                                                                              June 2011 – Present (1 year 3 months)
                                                                                              ARM Linux BSP 内核开发[Kernel development]

                                                                                              [Software] Design Engineer
                                                                                              Imagination Technologies Ltd.
                                                                                              August 2010 – June 2011 (10 months)

                                                                                              Education:
                                                                                              HUST [Huazhong University of Science and Technology]

                                                                                              CUBIETECH LIMITED or in more detail
                                                                                              方糖科技有限公司

                                                                                              Domicile: Hong Kong
                                                                                              Type: Private, ltd by shares
                                                                                              Formed: 29-Aug-2012
                                                                                              HK companies registry: 1793090

                                                                                              websites: 1. www.cubietech.com  2. http://cubieboard.org but the content is the same at the moment

                                                                                              Zhuhai [Wikipedia]

                                                                                              Zhūhǎi (Chinese: 珠海) is a prefecture-level city on the southern coast of Guangdong province in the People’s Republic of China. Located in the Pearl River Delta, Zhuhai borders Jiangmen to the northwest, Zhongshan to the north, and Macau to the south. Zhuhai was one of the original Special Economic Zones established in the 1980s. Zhuhai is also one of China’s premier tourist destinations, being called the Chinese Riviera.
                                                                                              Zhuhai became a city in 1979, a year before it was named as one of the first Special Economic Zones (SEZ). The neighboring city of Shenzhen became the first Special Economic Zones of the Special Economy Zone in 1978. The implementation of this policy is logical as Zhuhai is located on the strategic position facing Macau, in the identical fashion by which Shenzhen faces Hong Kong. This enabled the Chinese Central Government to open another “window” in front of Macau. Even though the city is situated at the southern end of the Pearl River Delta area, Zhuhai acts as one of the central cities in the Pearl River Delta according to the new general urban plan approved by the State Council. The implementation of Special Economy Zone means that the city will grow as a powerful modern port city, science and education city, scenic and tourism city, and as a regional hub for transportation.

                                                                                              Introducing the MK802 FreedomStick [FreedomBoxBlog, ]

                                                                                              Recently a whole range of cheap Android devices have become available, all powered by the Allwinner A10 SOC. Thanks to the way A10 devices boot they are very easy to hack. All that is needed is a bootable SD card. How to make such a card is no big secret, and there are now multiple SD card images available. You can boot for example Lubuntu or Debian instead of Android. One A10 device, the MK802 stick computer, is almost ideal for a small home server. I bought one to examine its potential for the FreedomBox.
                                                                                              What A10 devices are available?
                                                                                              The A10 is used in a whole range of products, from tablets to TV multi media boxes to stick computers. The most popular devices are:
                                                                                              The $70 Mele A1000. This is a complete computer. Some specs: 512 Mb RAM, SD slot, support for SATA Hard-disks, connectors for multiple types of monitor (VGA/HDMI/Analog video), 10/100 Ethernet connector, WIFI, Audio out and two USB host ports.
                                                                                              The $65 MK802. This is a stick sized computer (0.47 x 3.46 x 1.38 inch) that has (of course) less connectors than the Mele A1000. The specs are: 1024 MB RAM (older versions 512 MB), microSD slot, HDMI video out, WIFI, one USB host port and one USB-OTG port.
                                                                                              You will probably agree with me that the $70 Mele is a better deal – the MK802 is overpriced. It would not surprise me if the MK802 drops in price to about $40 in the near future.
                                                                                              Links.
                                                                                              Here are some links to start with if you are interested in A10 devices:
                                                                                              Much pioneering work on the A10 was done by Luke Kenneth Casson Leighton. Luke is the one behind Rhombus Tech. A Community Interest Company, which is developing an open hardware Computer-on-Module that uses the A10. Lots of info can be found at:
                                                                                              http://rhombus-tech.net/allwinner_a10/

                                                                                              A good place to buy an A10 device is “The Cubies hacker shop” at:
                                                                                              http://www.aliexpress.com/store/511685

                                                                                              from HERE: Tom Cubie Jul 15, 2012 +3 
                                                                                              Hi, i am Tom Cubie, i have a shop on aliexpress selling allwinner powered devices. I am also the developer who ported u-boot to A10 and contribute to the A10 kernel source code. Welcome to my shop: http://www.aliexpress.com/store/511685
                                                                                              Mele A1000 70$(A10, 512MB, 4G)
                                                                                              Mele A2000 75$(A10, 512MB, 4G)
                                                                                              Smallart uHost 70$(A10, 1GB, 4G)
                                                                                              [these are set-top boxes]

                                                                                              Tom Cubie (alias hipboi) is very actively involved in getting GNU/Linux working on the A10. Just like Luke he is planning to release open hardware based on the A10.
                                                                                              http://cubieboard.org/

                                                                                              Both the SD card images i used come from the miniand.com website. Miniand sells A10 devices and has a busy forum at:
                                                                                              https://www.miniand.com/forums/
                                                                                              MK802 images are available at:
                                                                                              https://www.miniand.com/forums/forums/development/topics/mk802-guides-and-images
                                                                                              Another company that sells the MK802 and other A10 devices is Rikomagic.
                                                                                              http://www.rikomagic.co.uk/
                                                                                              forum:
                                                                                              http://www.rikomagic.co.uk/forum/viewforum.php?f=2&sid=3c3ef83dd83af61f8af6a82c6b28cf47
                                                                                              Someone named gnexus has a very interesting site about A10 devices:
                                                                                              http://a10linux.org/
                                                                                              Last but not least – i enjoyed the info at Jeff Doozan’s site.
                                                                                              http://forum.doozan.com/list.php?6
                                                                                              Android-powered Cubieboard is already sold out [TG Daily, Sept 11, 2012]
                                                                                              We first covered [Sept 3, 2011 – bit the first public info was available from CNXSoft on Aug 31, 2012] the Android-powered Cubieboard – which is targeted at devs and modders – last week.
                                                                                              The uber-mini developer board is priced at a rather sweet $49, so one really can’t avoid drawing comparisons  between this little device and the wildly popular Raspberry Pi.
                                                                                              However, the little Cubieboard boasts a faster processor, more memory and integrated storage. The first Cubieboard prototypes were offered for $49 plus shipping (from China) on  AliExpress – but have already sold out. [e-mail address be given on a cubieboard page]
                                                                                              Here’s a quick rundown of the Cubieboard specs if you missed it the first time around last week. The device is powered by a a 1 GHz Allwinner A10 ARM Cortex-A8 processor paired with Mali 400 Graphics. Cubieboard also features 512 MB of RAM and 4 GB integrated flash storage. Unsurprisingly, a souped-up version of the board is reportedly in the works and will be loaded with a total of 1 GB of RAM.
                                                                                              The dev board is also equipped with an HDMI output, dual USB ports, an SD card slot for memory expansion, and other expansion pins and connectors for adding peripherals. Although the Cubieboard does sport an integrated Ethernet jack it lacks integrated Wi-Fi. As such, one of the available USB ports will have to be given up for a dongle – if wireless access is required. Soldering is a must if you want to use any of those header pins for additional accessories.
                                                                                              Originally, there was no indication that the bare-bones Cubieboard was equipped with 4 GB of flash storage,  a feature which will make the already attractive system even more appealing to devs and modders.
                                                                                              Cubieboard is capable of running Android (2.3 and 4.0), as well as multiple flavors of Linux.

                                                                                              There is a Cubieboard wiki page [Aug 4 – Sept 24, 2012] on linux-sunxi wiki from June 30, 2012. This wiki is:

                                                                                              dedicated to all software and documentation related to hacking sunxi based devices and to thedevices themselves and is maintained by the arm-netbook community.
                                                                                              sunxi represents the family of ARM SoCs made by Allwinner Tech. in Zhuhai (Guangdong, China). The most popular sunxi SoC model is the Allwinner A10 (aka sun4i) and the Allwinner A13 (aka sun5i). Their predecesor was an ARM9 named Boxchip F20 (sun3i) and their successor whose specs are currently unknown, will be the sun6i.
                                                                                              Main components of the A10 / A13:
                                                                                                The A13 is a cheaper version of the A10. It lacks HDMI and SATA and is primarily targeted towards tablets.[1]
                                                                                                Featured Community Hardware
                                                                                                EOMA68-A10

                                                                                                RhombusTech aims to create an Open Hardware EOMA68 compliant CoM with an Allwinner A10 CPU inside to be the user replaceable heart of different devices.
                                                                                                cubieboard

                                                                                                A mini (10x6cm), hacker friendly, extendable and very low-cost while powerful ARM board with A10.
                                                                                                Open Source Hardware
                                                                                                A13-OLinuXino

                                                                                                Open Hardware SBC with an Allwinner A13 CPU inside developed by Olimex with 512MB RAM, 4GB NAND Flash, VGA, Audio In/Out, WIFI, 3x USB Hosts, USB-OTG, LiPo, SD-card, 72 GPIOs, 6-16VDC power input

                                                                                                A10-OLinuXino

                                                                                                Open Hardware SBC with an Allwinner A10 CPU inside developed by Olimex with 1GB RAM, 4GB NAND Flash, VGA, HDMI, RS232, JTAG, SATA, 100MBit Ethernet, SD and micro-SD cards, 2x USB hosts, USB-OTG, LiPo, 132 GPIOs, 6-16VDC power input

                                                                                                CedarX wiki page [July 14 – Sept 16, 2012] on linux-sunxi wiki:

                                                                                                CedarX is Allwinner’s multimedia decoding technology. It is composed of several parts, including:
                                                                                                  1. A hardware video decoding unit
                                                                                                  2. Proprietary libraries to communicate with the hardware unit
                                                                                                  3. Glue code to use those libraries on an actual system with video playback capabilities (e.g. Android)
                                                                                                  Benefits
                                                                                                    • Efficient use of system resources when decoding multimedia.
                                                                                                    • Allows small ARM systems to playback high resolution/bitrate multimedia content, which wouldn’t be possible using software-only decoding.
                                                                                                        Disadvantages
                                                                                                          • The proprietary libraries have no clear usage license.
                                                                                                          • The android glue code is implemented as a “media player” (parallel to stagefright) instead of as OMX components.
                                                                                                          • This media player has limitations when it comes to playing back content pointed to by Android URIs and some web-based content.
                                                                                                          • There is no glue code for any other multimedia frameworks on GNU/Linux systems. The use of OMX would’ve rendered this a non-issue, with existing projects like GstOpenMAX.
                                                                                                              Integration
                                                                                                              Reverse Engineering
                                                                                                              On June 15 2012 Iain Bullard started reverse engineering the proprietary libraries.

                                                                                                              Allwinner A10 devices [XBMC Wiki for collaborative documentation of XBMC Media Center and related topics, May 19 – Sept 6, 2012]

                                                                                                              Set-top boxes

                                                                                                              Mele A1000/A2000
                                                                                                              Mele A2000.jpg
                                                                                                              Mele A1000 is the same hardware and specs as the Mele A2000. The case design is slightly different, and the A1000 only has 2GB of internal flash formatted, but still has 4GB of internal flash total (should be able to be reformatted to use full 4GB).
                                                                                                              The Mele units appear to have the most ports available of all the Allwinner A10 set-top/TV boxes, including SATA (normally accessible from a top “dock” for 2.5 HDDs, but can also be accessed from plugging an SATA cable to the main board inside.)
                                                                                                                Mele A100
                                                                                                                Same as the A1000/A2000, but lacks an SATA dock/connector.
                                                                                                                MK802
                                                                                                                MK802.jpg
                                                                                                                Some units have 512MB of RAM, while others have 1GB of RAM. Has a female mini HDMI port, but comes with a short miniHDMI to full sized HDMI cable. One USB B port, and one USB mini OTG port that can also act as a USB host port with included adapter, or be powered by the mini USB port. DC power connector. Internal wifi. MicroSD card slot.
                                                                                                                DX.com has a listing for a “AK802” that appears to be an identical unit to the 1GB RAM version.
                                                                                                                  Mini X
                                                                                                                  Pineriver H24.jpg
                                                                                                                  Might be called Mini X, H24, or even the Mini Xplus (for legal reasons, apparently). All three are the exact same hardware. Has HDMI and analog video (composite?), two USB ports, one microSD card slot, IR sensor (most should come with a remote), removable wifi antenna, DC power connector (5 volts). Can be powered by included DC adapter, USB to DC cable (not included) or a male-to-male USB cable on the USB OTG port. Similar to the MK802, some units have 512MB of RAM, while others have 1GB of RAM.
                                                                                                                    Smallart UHOST
                                                                                                                    Smallart UHOST.jpg
                                                                                                                    Comes with a motion activated remote. Male HDMI port is directly on device. Size: 120mm x 50mm x 13mm. 1GB RAM. Built-in wifi b/g/n. Has one USB host port, and another microUSB port that turns the device into a USB drive. This microUSB port also seems to provide power to the device. Micro SD card slot. Mic jack and what seems to be an on-board mic (?).
                                                                                                                    Also sold as “Oval Elephant” from Oval Elephant.

                                                                                                                      Other

                                                                                                                      Gooseberry Board
                                                                                                                      Gooseberry.jpg
                                                                                                                        HackBerry
                                                                                                                        Hackberry.jpg
                                                                                                                        1 GB RAM, 4GB internal flash, SDHC slot, 2 USB 2.0 ports, 10/100Mbit ethernet, wifi: 802.11 b/g/n, HDMI video out, composite video out, audio in minijack, audio out minijack, IR sensor.
                                                                                                                          Cubieboard
                                                                                                                          1G ARM cortex-A8 processor, NEON, VFPv3, 512KB L2 cache, Mali400, OpenGL ES GPU, 1GB DDR3 @480MHz, HDMI 1080p Output, 100M Ethernet, 4GB Nand Flash 2 USB Host, 1 MMC slot, 1 SATA, 1 ir, 96 extend pin including i2c, spi, lcd, sensors, ..

                                                                                                                          MeLE website: http://www.mele.cn/ (Chinese) or http://en.mele.cn/ (English)

                                                                                                                          Congratulation to Mele’s 8th Anniversary [Mele press release, Sept 4, 2012]

                                                                                                                          About Mele [Dec 20, 2012]:

                                                                                                                          Shenzhen Mele Digital Technology Ltd. is a global leader for design and manufacturing of internet High Definition (HD) multimedia terminals and a system solution provider for customers worldwide.
                                                                                                                          Shenzhen Mele has been leading the trend of introducing multimedia internet devices and applications into living rooms. Shenzhen Mele’s forward-looking market research, proven technological expertise and acumen, mature and efficient development process, ever-expanding manufacturing capacity and capability, rigorous quality assurance measures, enables Shenzhen Mele to win competitions by product innovation, feature differentiation, and time to market. Shenzhen Mele has a long history of successful track records of providing Original Product-planning Manufacturing (OPM) services and Original Design Manufacturing (ODM) services to our premium brand customers globally, and providing internet multimedia terminals with Shenzhen Mele’s own brand to our consumers in China.
                                                                                                                          Shenzhen Mele’s multimedia terminal products manifest the direction of digital evolution of future home. Shenzhen Mele’s products integrate internet applications, local area network (LAN) content browsing and sharing, data storage, data transport, HD multimedia playback and recording, HD digital TV playback and recording, multimedia home theater system, multimedia player and DVD combo, SoundBar multimedia player, camera and mobile phone etc. Shenzhen Mele’s system solutions include remote content distribution, device configuration and management, and product and feature customization for service providers, and remote data transport and content management service for end customers.
                                                                                                                          Shenzhen Mele is devoted to Complete Customer Satisfaction (CCS). We provide 7×24 around the clock services. We always solve customer issues by investigating root causes and addressing source of a problem. We strive for daily improvement and continuous progress in our course of pursuing perfectionism. Our corporate vision, our corporate social responsibility, and our down-to-the-earth working style of “starting from me” motivate our staff to work harder and smarter everyday. We sincerely believe that Innovations Enriches Quality Life.

                                                                                                                          8. The Nufront challenge coming from inside

                                                                                                                          Information about the latest tablet SoC contender Nufront, also posing the greatest challenge to Allwinner for the next year as it stands now (as of Nov 1, 2012):
                                                                                                                          Nufront Announces Taishan Platform Targeting Mobile Devices Market [Nufront press release, May 7, 2012]: “The NS115 mobile computing chip, a dual-core ARM Cortex™-A9 MPCore™ processor up to 1.5GHz and Mali™-400 MP GPU implementation, features 1080P HD encode/decode and support of Android 4.0.
                                                                                                                          NUFRONT NS115 dualcore chipset – ARM at Computex 2012 [ARMflixYouTube channel, June 14, 2012]
                                                                                                                          $81 Nufront NS115 ARM Cortex-A9 Dual-core 7″ 1024×600 IPS Tablet by Xusit [Charbax YouTube channel, Oct 28, 2012]
                                                                                                                          Nufront and ARM Extend Partnership to Provide OEMs with Competitive Solutions for Next-Generation Smartphones, Tablets and Smart-TVs [joint ARM and Nufront press release, Sept 24, 2012]: “Nufront licenses latest ARM Cortex-A15 Processor and Mali-T658 GPU technology to drive innovation and address consumer demand for advanced features
                                                                                                                          Nufront licenses cores from Ceva, Vivante [EE Times, Sept 8, 2011]
                                                                                                                          Interview with Nufront: “Windows RT will take away market share from notebooks” [ITProPortal, Oct 17, 2012]: “When do you expect Nufront to bring out (a) its first Cortex-A15/Mali Midgard products (b) products based on your Vivante/Ceva license? We are targeting the end of 2013.
                                                                                                                          Why is it that Nufront is not as popular as rivals such as AllWinner, VIA, Mediatek, Rockchip especially at the lower end of the market? We started from dual core system-on-chips, and dual core SoCs are going down to low end but not yet, it’s still single Cortex-A8 everywhere, while we believe the dual core A9 will go to the low end by the end of this year, and we will definitely be there, we are ready.”
                                                                                                                          ARM Technologies Power Nufront’s First Computer System Chip To Reshape Laptop Market [Nufront press release, Sept 14, 2010]: “NuSmart™ 2816 is the world’s first chip to integrate a 2GHz dual-core ARM Cortex-A9 processor, a multi-core 2D/3D graphics processor, 64bits DDR2/3-1066 memory controller, 1080p multi-format video engine, SATA2 controller, USB2, Ethernet, together with general I/O controllers. By leveraging the multi-layer hybrid interconnection technology, multi-level fine grain power management technology and advanced 40nm manufacture process, NuSmart™ 2816 is very energy efficient consuming less than 2 Watts when running at 1.6GHz.
                                                                                                                          Ubuntu Adds Sparkle to Nufront Laptops at CES [PCWorld, Jan 7, 2011]
                                                                                                                          – From ARM.com: POP™ IP > Cortex-A9: “Nufront was the first company to produce an SoC with the Osprey hard macro running at 2.0 GHz (typical conditions).” … Osprey: ARM Announces 2GHz Capable Cortex-A9 Dual Core Processor Implementation [ARM press release, Sept 16, 2009]: “The Cortex-A9 hard macros and the corresponding optimized physical IP used to develop the speed-optimized and power-optimized implementations are available for license today with delivery in the fourth quarter of 2009.” … Partnership in action > Nufront CSC: Vince Zhou, General Manager at NUFRONT CSC on their adoption of ARM’s Cortex-A9 processor and Mali multi-core graphics processor technology, and high-performance Physical IP “... For 2011, we have set a target that $250 laptops will be widely available in China and rest of the world, based on the NuSmart 2816. Together with our partners we have an opportunity to create low-cost laptops with low-energy chips that drive the new computing era.
                                                                                                                          ARM announces ‘Osprey’ A9 core as Atom-beater [EE Times, Sept 16, 2009]
                                                                                                                          Nufront released the second generation of NuSmart2816 series chip – NuSmart2816M [Nufront press release, Feb 13, 2012]
                                                                                                                          Nufront at Computex 2012 [Charbax YouTube channel, June 8, 2012] where both the 2nd gen NumSmart2816M and the 3d gen NS115 are shown, the latter introduced as a LP (Low Power) and improved architecture implementation with 40% less power consumption than the NS2816M, also targeted for the smartphone market (in the video also their baseband chip is shown to be shipped in 2-3 months) and to be shipped a month later. Towards the end they acknowledge that their big hope for the NS2816 and NS2816M didn’t become a reality, because the laptop market remained a niche one (I would add it was due to overwhelming success of Android in the tablet space vs. the envisaged by them Ubuntu on the laptops), so they are refocusing on the tablet market. They also acknowledge trying to work with Microsoft on the Windows RT opportunity (but Microsoft is NOT shown as a partner). It is also said that they have almost 700 people working for them. To the last question they say that they have been living so far on mobile TV systems for China only [not true considering that they lost the battle against CMMB in China as shown in the following]. Note from their website: “Our superior, patented T-MMB (Terrestrial- Mobile Multimedia Broadcasting) system” (see also the T-MMB Q&A), Enhanced Ultra-High Throughput (EUHT) SuperWlanUHT (Ultra-high Throughput Wireless LAN) and NUHT (Next UHT), and probably video search by “NuVideoTM supports hundreds of TV channels anywhere, anytime in any situation with real time catalog, automatic high-speed editing and processing.” as well.
                                                                                                                          – From Nufront’s own sponsored content on DIGITIMES [June 6, 2012]: “… Nufront was established in June 2004 with its first office located in Bejing, China. Through support from the government, Nufront began R&D of T-MMB systems. By 2006, Nufront’s T-MMB system had passed field tests conducted by the government. By November 2007, the firm had announced success in developing the first T-MMB chip called NF9001. In 2009, Nufront added two new branches, Beijing Pu Ji Xin Technology and Beijing Nufront Mobile Communication Technology. … The firm stated its goal is to become a comparable firm to Qualcomm and MediaTek. Nufront aims to create a unified platform that consists of both telecommunication and PC functions to meet the needs of various types of mobile smart products.
                                                                                                                          China Digital TV Transmitter Market Report, 2012 [Reportlinker.com press release, Oct 30, 2012]: “With respect to mobile devices, T-MMB was adopted as the national standard on April 3, 2008, but denied by the State Administration of Radio, Film and Television (SARFT) which has been actively promoting CMMB (China Mobile Multimedia Broadcasting) network construction. With investment in digital TV transmitter reaching approximately RMB600 million in 2010 and not less than RMB800 million in 2011, CMMB has become the major player with respect to signal coverage and user group.
                                                                                                                          2011 Mobile TV Development Report [Zhang Rui on Sina blog, Oct 15, 2012]: “.. by the end of 2011, CMMB network covered more than 336 prefecture-level cities, 885 economically developed county-level cities with signal coverage rate reaching 98.22%, covering a population of nearly 800 million, and as such CMMB has become the world’s largest mobile radio and TV coverage network. … as of the end of 2011, CMMB nationally more than 35 million users, paying subscribers reached 16 million. In 2011, through the widespread cooperation with China Mobile, they jointly promoted the development of 11.29 million bi-directional end users, creating a precedent for the conversion rate of mobile data services with a 73.3% conversion rate; with new users the one-way terminal user base increased in 2011 to 6 million. …” Note: CMMB… is based on the Satellite and Terrestrial Interactive Multiservice Infrastructure (STiMi), developed by TiMiTech, a company formed by the Chinese Academy of Broadcasting Science. Announced in October 2006, it has been described as being similar to Europe’s DVB-SH standard for digital video broadcast from both satellites and terrestrial repeaters to handheld devices. …
                                                                                                                          Mobile TV: at least three years to take to maturity, preliminary [coming in 20]08 [XINHUANET.COM, Aug 14, 2006]: “<nicely and broadly covering the STiMi story then TMMB as well: > … T-MMB standard was developed under the auspices of the Ministry of information industry, which is Korea DMB standard as the basis for in-depth research and development of a standard, part of independent intellectual property rights. It is a broadcast system, is also a one way system. T-MMB advantages: first, compatibility, compatible Korea T-DMB technology easier to implement roaming. …
                                                                                                                          – which is really shown by the below illustration from this Aug’11 Norvegian research paper:

                                                                                                                          – Then 3 years later came Tug of war [China Daily, April 14, 2008] between SARFT and MIIT: “The format (T-MMB) was not strictly tested or undergo necessary trials and the standardization was manipulated by a small group of people,” claims Wang Xiaojie, head of SARFT’s Science and Technology Department. “The result is not relevant to us and we will not adopt the standard.” which resulted in the current situation when still the old NF9001 is the only T-MMB chip and Nufront is not listed even as a mobile TV chip provider while some other providers are covering now several standards with a single chip. The current best example is DiBcom whose “Octopus2s [launched on Sept 5, 2012] … single die System-On-Chip … supports all the active digital TV formats available in the World such as ISDB-T one-seg, full-seg, and sb for Japan and South America; DVB-T for Europe, Africa, South East Asia and Columbia; DAB/DAB+ digital radio for Europe; T-DMB for Korea, CMMB and CTTB for China; ATSC and ATSC M/H for North America.
                                                                                                                          – Media report published on the Nufront website: Nufront: Technological innovation-oriented computing and communications develop simultaneously [April 27, 2012]: “… “In fact, as early as in 2005, began in-depth study of wireless LAN technology, developed a new generation of ultra-high-speed wireless LAN technology EUHT before the 802.11n standard in data throughput, spectrum efficiency and economy have done better than the existing WiFi technology, “said Yang Yuxin. Outdoor communications 3G/4G network in the room it will rely on the ultra-high-speed local area network. “The mentioned EUHT He is a new generation of communications technology specifically for the short-range wireless communication environment specifically optimized design can short distance (100 m coverage, expandable to 500 m) to support a large number of high-speed connection, and to ensure the business real-time requirements, the physical layer peak rates up to 3.86Gbps, about 90% of the efficiency of the system can be widely used in the Internet of Things, digital applications in the home, digital city, has obvious advantages compared with existing wireless LAN technology. …Note: MIIT in China announced on February 13, 2012 that it has approved the UHT/EUHT standard specification (click for Chinese announcement). The announcement reads that MIIT has finalized the previously discussed UHT and EUHT layer standards; the document for download is simply a table naming the two finalized standards. The actual text of the standards will be published by the Peoples’ Post and Telecoms Publishing House.

                                                                                                                          And the latest report about Nufront: China fabless: Nufront ventures beyond tablet chips [EE Times, Nov 6, 2012]

                                                                                                                          … Where Nufront differs from other up and comers, though, is that the company, founded in 2004, has already been around the block. Its eight years in the industry have cemented closer ties with the Chinese government agencies. With that comes government funding. Not everything has worked out in its favor, though, and the company has a few scars to show for it.
                                                                                                                          A case in point is China’s mobile TV standard. Nufront, in the mid-2000’s, dabbled with the nascent digital mobile TV market, throwing itself behind one of China’s home-grown mobile TV standards, Terrestrial-Mobile Multimedia Broadcasting (T-MMB). However, just before the Beijing Olympics, China’s State Administration of Radio, Film and Television (SARFT) ended up supporting — and institutionalizing — a rival standard, China Mobile Multimedia Broadcasting (CMMB).
                                                                                                                          Nufront is also known for its deep involvement in developing China’s national wireless technology, called Enhanced Ultra-High Throughput (EUHT) WLAN. With government funding, Nufront has been working on the national standard for more than several years. While the world is yet to see EUHT commercialized, Rock Yang, vice president of marketing at Nufront, stressed that the project is still on, and its ultra-high throughput wireless technology – 1.2Gbit per second throughput – will be deployed in China’s vertical market in 2013.
                                                                                                                          Nufront today has about 700 employees, with a team of 400 engineers. Two hundred are software engineers, while 150 are working on hardware systems, and 50 are specifically focused on chipsets, according to the company.
                                                                                                                          Nufront’s strategy doesn’t stop at the apps processor. The company is rolling out its first-generation GSM/WCDMA 3G baseband chip, TeLink 7619. Calling it a “dual-modem platform,” the new chip incorporates digital RF, power management and baseband, according to the company. How this will fare against other GSM/WCDMA baseband chips from competitors is unknown. But Nufront hopes to offer a “complete smartphone solution” in 2013, by adding its baseband chip to NS115.
                                                                                                                          Yang made it clear that Nufront, during the second quarter this year, acquired some essential IPRs on WCDMA. The Chinese company paid $9.0 million to InterDigital, a company with broad wireless patent portfolio. However, it remains unclear what exactly Nufront got. InterDigital only confirms the deal in vague terms: “We did enter into a set of agreements with Nufront, and those agreements included the transfer of a certain number of patents as well as other elements.” InterDigital’s spokesman added, “Our practice is not to offer any comment on the specifics of patent transfers with partners.”
                                                                                                                          Separately, in June, Intel cut a deal to buy about a host of wireless technology patents from InterDigital for $375 million.
                                                                                                                          The “Internet of Things” is also in Nufront’s sights. The company believes its 3G modules could be particularly useful in the vertical market for Internet of Things applications.

                                                                                                                          Boosting both the commodity and premium brand markets in 2013 with much more smartphones and tablets while the Windows notebook shipments will shrink by 2%

                                                                                                                          This is my conclusion after reviewing

                                                                                                                          • The ongoing trends in the commodity and premium brand ecosystems of Android devices:
                                                                                                                            – Smartphones
                                                                                                                            – Tablets

                                                                                                                          and

                                                                                                                          • The emerging new trends in the premium ecosystem of the Windows devices:
                                                                                                                            – Notebooks
                                                                                                                            – Smartphones

                                                                                                                          as reported by the most knowledgeable sources.

                                                                                                                          Updates: – ODMs see weaker profits from tablet business [DIGITIMES, March 26, 2013]

                                                                                                                          As Google and Amazon reportedly will release their next-generation 7-inch entry-level tablets in the near future, sources from the upstream supply chain have estimated that related ODMs’ profits from these tablets will be about 20% less than those from notebooks.
                                                                                                                          Since tablets have a simpler design than notebooks, the ODMs are only able to earn about US$9-10 for each tablet made, lower than US$13-20 for notebooks.
                                                                                                                          In addition, fewer components needed means that ODMs will have difficulties using their purchasing advantages to earn profits, and tablet brand vendors’ demand for specific components will also impact the makers’ profits, the sources noted.
                                                                                                                          Seeing weak growth in the notebook industry, most ODMs have turned to place their focuses on the tablet market and are competing aggressively for orders through price cuts, the sources said.

                                                                                                                          Wintel camp mulls measures to rekindle weakening notebook industry [DIGITIMES, Feb 21, 2013]

                                                                                                                          Suppliers within the Wintel camp are mulling to launch a series of measures, including price cuts for their products, in the second quarter of 2013 to rekindle the stymied notebook industry caused by growing popularity of tablets, according to industry sources.
                                                                                                                          The launch of Windows 8 has failed to ignite replacement demand for notebooks in the end markets, resulting in a prolonged inventory adjustment process at the supply chain that has been going on since the third quarter of 2012, the sources noted.
                                                                                                                          With market reports indicating that global tablet shipments are likely to reach 200-300 million units in 2013, including 150 million units in China and other emerging markets, notebook vendors will see their market share continue to be eroded by tablets, commented the sources.
                                                                                                                          While agreeing to the consensus that price-cutting will be the only way to stimulate notebook demand, related PC chip suppliers are urging the major players in the Wintel camp, mainly Intel and Microsoft, to take the lead in action so that the entire supply chain can follow.
                                                                                                                          The Wintel camp has always chosen to start cutting their product prices in the third quarter each year, noted the sources, but it would be too late to safeguard the notebook industry as well as its supply chain if Intel and Microsoft do not take actions till the third quarter this year.
                                                                                                                          Since Intel usually will cut significantly its CPU prices prior to the launch of new models, the planned launch of Haswell platform in June may persuade the chip giant to lower the quotes for its Ivy Bridge family CPUs earlier, the sources revealed.
                                                                                                                          But it remains to be seen if price cuts by Intel alone could stir up notebook replacement demand amid the squeezing-out effect triggered by the rise of tablets, mobile phones and other mobile Internet devices, commented the sources.

                                                                                                                          End of updates

                                                                                                                          Before reading the sections of this post corresponding to the above, do not forget to read my own analytical posts which are based on the new product directions and supporting SoC trends (and as such predicting the year 2013 market even better than the external analyses quoted here which are mainly based on supply chain trends and market changes observed already in 2012):
                                                                                                                          $48 Mogu M0 “peoplephone”, i.e. an Android smartphone for everybody to hit the Chinese market on November 15 [Nov 9, 2012]
                                                                                                                          Lowest H2’12 device cost SoCs from Spreadtrum will redefine the entry level smartphone and feature phone markets [July 26 – Nov 9, 2012]
                                                                                                                          The low priced, Android based smartphones of China will change the global market [Sept 10-26, 2012]
                                                                                                                          Unique differentiators of Nokia Lumia 920/820 innovated for high-volume superphone markets of North America, Europe and elsewhere [Sept 6 – Nov 13, 2012]
                                                                                                                          With Asha Touch starting at $83 and Lumia at $186 Nokia targeting the entry-level and low-end smartphone markets [Nov 1, 2012]
                                                                                                                          Boosting the MediaTek MT6575 success story with the MT6577 announcement  – UPDATED with MT6588/83 coming early 2013 in Q42012 and 8-core MT6599 in 2013 [June 27, July 27, Sept 11-13, Sept 26, Oct 2, 2012]
                                                                                                                          MT6577-based JiaYu G3 with IPS Gorilla glass 2 sreen of 4.5” etc. for $154 (factory direct) in China and $183 [Sept 13, 2012]
                                                                                                                          China’s HW engineering lead: The Rockchip RK292 series (RK2928 and RK2926) example [Oct 27, 2012]
                                                                                                                          Nexus 7: Google wanted it in 4 months for $199/$245, ASUS delivered + Nexus Q (of Google’s own design and manufacturing) added for social streaming from Google Play to speakers and screen in home under Android device control [June 28, 2012]
                                                                                                                          Giving up the total OEM reliance strategy: the Microsoft Surface tablet [June 19 – July 30, 2012]
                                                                                                                          ASUS: We are the real transformers, not Microsoft [Oct 17, 2012]
                                                                                                                          Microsoft Surface: its premium quality/price vs. even iPad3 [Oct 26, 2012]
                                                                                                                          BUILD 2012: Notes on Day 1 and 2 Keynotes [Oct 31, 2012]
                                                                                                                          Acer Iconia W510: Windows 8 Clover Trail (Intel Z2760) hybrid tablets from OEMs [Oct 28, 2012]
                                                                                                                          Microsoft Surface with some questions about the performance and smoothness of the experience [Nov 12, 2012]

                                                                                                                          Update: The sections of this post are somewhat taking into the account the most dramatic disruption in the whole history of ICT, what I am calling the ‘ALLWINNER PHENOMENON’ (all ‘Allwinner et al phenomenon’ sometimes when including Allwinner’s internal mainland China competitors such as Rockchip into account as well). EVERYBODY SHOULD BE AWARE of the fact, however, that even in the latest forecasts by bigname ICT market researchers the ‘Allwinner phenomenon’ is not taken into account at all. The two very recent updates from IDC given below should therefore be read with that in mind as the ‘Allwinner phenomenon’ will add hundreds of millions to those forecasts starting as early as in 2013. Especially the numbers for the tablets will be affected. To understand more about that please read my special posts given in a newly created blog about the ‘Allwinner phenonmenon’:
                                                                                                                          Allwinner A31 SoC is here with products and the A20 SoC is coming [Dec 10, 2012]
                                                                                                                          Is low-cost enough for global success? [Dec 5, 2012]
                                                                                                                          The upcoming Chinese tablet and device invasion lead by the Allwinner SoCs [Dec 4, 2012]
                                                                                                                          $40 entry-level Allwinner tablets–now for the 220 million students Aakash project in India [Dec 4, 2012] from this alone 220 million additional tablets would have been delivered from 2013 to 2016
                                                                                                                          USD 99 Allwinner [Nov 30, 2012]
                                                                                                                          It’s a Strategic Inflection Point [Dec 1, 2012]

                                                                                                                          Update: HTC 1Q13 smartphone shipments to grow slower than expected, say sources [DIGITIMES, Dec 18, 2012]

                                                                                                                          Affected by the launch of iPhone 5 and rapidly declining smartphone prices in China, HTC reportedly has revamped its product roadmap for 2013 and is expected to see its smartphone shipments rise 10-15% sequentially in the first quarter of the year compared to a 20-30% growth projected previously, according to industry sources.

                                                                                                                          HTC has suspended development of a number of new models for 2013, reducing the visibility of its orders for handset components, the sources revealed.

                                                                                                                          HTC declined to comment on market speculation.

                                                                                                                          However, the industry watchers believe that HTC is heading for a bumpy road ahead, since shipments of its Windows Phone 8-based smartphones have not been as strong as expected, while Apple’s iPhone 5 and Samsung Electronics’ Galaxy III have continued to enjoy brisk sales.

                                                                                                                          In China, HTC is facing cut-throat competition from local white-box smartphone vendors and has been forced to enter the sub-CNY2,000 (US$321) segment, which runs counter to its established policy focusing mainly on the high-end sector, said the sources.

                                                                                                                          Update: Worldwide Smart Connected Device Market, Led by Samsung and Apple, Grew 27.1% in the Third Quarter, According to IDC [IDC press release, Dec 10, 2012]

                                                                                                                          image

                                                                                                                          The worldwide smart connected device market – a collective view of PCs, tablets, and smartphones – grew 27.1% year-over-year in the third quarter of 2012 (3Q12) reaching a record 303.6 million shipments valued at $140.4 billion dollars. Expectations for the holiday season quarter are that shipments will continue to reach record levels rising 19.2% over 3Q12 and 26.5% over the same quarter a year ago. According to the International Data Corporation (IDC) Worldwide Quarterly Smart Connected Device Tracker, 4Q12 shipments are expected to reach 362.0 million units with a market value of $169.2 billion dollars. Holiday season growth will be driven by tablets and smartphones, which are expected to grow 55.8% and 39.5% year-over-year respectfully, while PCs are expected to decline slightly from this quarter a year ago.

                                                                                                                          From a vendor perspective, Samsung maintained the top position in 3Q12 with 21.8% market share based on shipments. Apple, which ranked second overall in shipments, led all vendors in value with a total of $34.1 billion in 3Q12 and an average selling price (ASP) of $744 across all device categories. Following Samsung’s 21.8% share and Apple’s 15.1% share were Lenovo (7.0%), HP (4.6%), and Sony (3.6%). While Samsung, Apple, and Lenovo have all grown share over the past year, HP, which is virtually non-existent in the mobile space, has dropped its share from 7.4% in 3Q11 to 4.6% in 3Q12 with shipments declining -20.5% during that time.

                                                                                                                          “The battle between Samsung and Apple at the top of the smart connected device space is stronger than ever,” said Ryan Reith, program manager, Worldwide Mobile Device Trackers at IDC. “Both vendors compete at the top of the tablet and smartphone markets. However, the difference in their collective ASPs is a telling sign of different market approaches. The fact that Apple’s ASP is $310 higher than Samsung’s with just over 20 million fewer shipments in the quarter speaks volumes about the premium product line that Apple sells.”

                                                                                                                          Looking forward, IDC expects the worldwide smart connected device space will continue to surge well past the strong holiday quarter and predicts shipments to surpass 2.1 billion units in 2016 with a market value of $796.7 billion worldwide. IDC’s research clearly shows this to be a multi-device era, although market dynamics are shifting in terms of product category. In 2011, PC’s – a combination of desktop and portable PCs – accounted for 39.1% of the smart connected device market. By 2016 it is expected to drop to 19.9%. Smartphones will be the preferred product category with share growing from 53.1% in 2011 to 66.7% in 2016. Tablets will also grow significantly with share growing from 7.7% in 2011 to 13.4% in 2016. The shift in demand from the more expensive PC category to more reasonably priced smartphones and tablets will drive the collective market ASP from $534 in 2011 to $378 in 2016.

                                                                                                                          “Both consumers and business workers are finding the need for multiple ‘smart’ devices and we expect that trend to grow for several years, especially in more developed regions,” said Bob O’Donnell, program vice president, Clients and Displays. “The advent of cloud-based services is enabling people to seamlessly move from device to device, which encourages the purchase and usage of different devices for different situations.”

                                                                                                                          Top 5 Smart Connected Device Vendors, Shipments, and Market Share, Q3 2012 (shipments in millions)

                                                                                                                          Vendor

                                                                                                                          3Q12 Unit Shipments

                                                                                                                          3Q12 Market Share

                                                                                                                          3Q11 Unit Shipments

                                                                                                                          3Q11 Market Share

                                                                                                                          3Q12/3Q11 Growth

                                                                                                                          Samsung

                                                                                                                          66.1

                                                                                                                          21.8%

                                                                                                                          33.5

                                                                                                                          14.0%

                                                                                                                          97.5%

                                                                                                                          Apple

                                                                                                                          45.8

                                                                                                                          15.1%

                                                                                                                          33.1

                                                                                                                          13.9%

                                                                                                                          38.3%

                                                                                                                          Lenovo

                                                                                                                          21.1

                                                                                                                          7.0%

                                                                                                                          13.2

                                                                                                                          5.5%

                                                                                                                          60.0%

                                                                                                                          HP

                                                                                                                          14.0

                                                                                                                          4.6%

                                                                                                                          17.6

                                                                                                                          7.4%

                                                                                                                          -20.5%

                                                                                                                          Sony

                                                                                                                          11.0

                                                                                                                          3.6%

                                                                                                                          8.7

                                                                                                                          3.7%

                                                                                                                          25.4%

                                                                                                                          Other

                                                                                                                          145.6

                                                                                                                          48.0%

                                                                                                                          132.7

                                                                                                                          55.6%

                                                                                                                          9.7%

                                                                                                                          Total

                                                                                                                          303.6

                                                                                                                          100.0%

                                                                                                                          238.9

                                                                                                                          100.0%

                                                                                                                          27.1%

                                                                                                                          Source: IDC Worldwide Quarterly Smart Connected Device Tracker, December 10, 2012.

                                                                                                                          Smart Connected Device Market by Product Category, Shipments, Market Share, 2012-1016 (shipments in millions) 

                                                                                                                          Product Category

                                                                                                                          2016 Unit Shipments

                                                                                                                          2016 Market Share

                                                                                                                          2012 Unit Shipments

                                                                                                                          2012 Market Share

                                                                                                                          2016/2012 Growth

                                                                                                                          Desktop PC

                                                                                                                          151.0

                                                                                                                          7.2%

                                                                                                                          149.2

                                                                                                                          12.5%

                                                                                                                          1.2%

                                                                                                                          Portable PC

                                                                                                                          268.8

                                                                                                                          12.8%

                                                                                                                          205.1

                                                                                                                          17.2%

                                                                                                                          31.1%

                                                                                                                          Smartphone

                                                                                                                          1405.3

                                                                                                                          66.7%

                                                                                                                          717.5

                                                                                                                          60.1%

                                                                                                                          95.9%

                                                                                                                          Tablet

                                                                                                                          282.7

                                                                                                                          13.4%

                                                                                                                          122.3

                                                                                                                          10.2%

                                                                                                                          131.2%

                                                                                                                          Total

                                                                                                                          2107.8

                                                                                                                          100.0%

                                                                                                                          1194.0

                                                                                                                          100.0%

                                                                                                                          76.5%

                                                                                                                          Source: IDC Worldwide Quarterly Smart Connected Device Tracker, December 10, 2012.

                                                                                                                          Update: IDC Raises Tablet Forecast for 2012 and Beyond As iOS Picks Up Steam, Android Gains Traction, and Windows Finally Enters the Market [IDC press release, Dec 5, 2012]

                                                                                                                          image

                                                                                                                          A strong competitive landscape—including surging Android tablet shipments and robust demand for Apple’s new iPad mini—has led International Data Corporation (IDC) to increase its 2012 forecast for the worldwide tablet market to 122.3 million, up from its previous forecast of 117.1 million units. In the latest forecast update of the Worldwide Quarterly Tablet Tracker, IDC also raised its 2013 forecast number to 172.4 million units, up from 165.9 million units. And by 2016 worldwide shipments should reach 282.7 million units, up from a previous forecast of 261.4 million units.

                                                                                                                          “Tablets continue to captivate consumers, and as the market shifts toward smaller, more mobile screen sizes and lower prices points, we expect demand to accelerate in the fourth quarter and beyond,” said Tom Mainelli, research director, Tablets at IDC. “Android tablets are gaining traction in the market thanks to solid products from Google, Amazon, Samsung, and others. And Apple’s November iPad mini launch, along with its surprise refresh of the full-sized iPad, positions the company well for a strong holiday season.”

                                                                                                                          In addition to increasing the unit totals for 2013, IDC also updated its operating system splits for the year to reflect Android’s growing strength in the tablet market. IDC now expects Android’s worldwide tablet share to increase from 39.8% in 2011 to 42.7% for the full year of 2012. During that same time Apple’s share will slip from 56.3% in 2011 to 53.8% in 2012. Long term, IDC predicts Windows-based tablets (including Windows 8 and Windows RT) will grab share from both iOS and Android, growing from 1% of the market in 2011 to 2.9% in 2012, on its way to 10.3% in 2016.

                                                                                                                          “The breadth and depth of Android has taken full effect on the tablet market as it has for the smartphone space,” said Ryan Reith, program manager for IDC’s Mobile Device Trackers. “Android tablet shipments will certainly act as the catalyst for growth in the low-cost segment in emerging markets given the platform’s low barrier to entry on manufacturing. At the same time, top-tier companies like Samsung, Lenovo, and ASUS are all launching Android tablets with comparable specs, but offered at much lower price points.”

                                                                                                                          Once again, IDC’s increase in tablet shipments comes at the expense of eReaders. IDC lowered its forecast for eReaders for 2012 and beyond. While the front-lit eReader offerings from Amazon and Barnes & Noble have captured the interest of a subset of consumers who prefer a dedicated eReader, most buyers are gravitating toward multi-use tablet products and finding a ‘good enough’ reading experience on these traditional back-lit tablets. IDC now expects 2012 eReader shipments to top out at 19.9 million units, down from the 27.7 million units that shipped in 2011.

                                                                                                                          Tablet Operating Systems, Market Share Forecast and CAGR 2012-2016

                                                                                                                          Tablet OS

                                                                                                                          2012 Market Share

                                                                                                                          2016 Market Share

                                                                                                                          CAGR 2012 – 2016 (%)

                                                                                                                          iOS

                                                                                                                          53.8%

                                                                                                                          49.7%

                                                                                                                          20.9%

                                                                                                                          Android

                                                                                                                          42.7%

                                                                                                                          39.7%

                                                                                                                          21.0%

                                                                                                                          Windows

                                                                                                                          2.9%

                                                                                                                          10.3%

                                                                                                                          69.2%

                                                                                                                          Other

                                                                                                                          0.6%

                                                                                                                          0.3%

                                                                                                                          7.7%

                                                                                                                          Grand Total

                                                                                                                          100.0%

                                                                                                                          100.0%

                                                                                                                          23.3%

                                                                                                                          Source: IDC Worldwide Quarterly Tablet Tracker, December 5, 2012

                                                                                                                          Table Notes:

                                                                                                                          • Windows shipments include Windows RT, Windows 8, and Windows 7 tablets.
                                                                                                                          • Shipments include shipments to distribution channels or end users. OEM sales are counted under the vendor/brand under which they are sold.

                                                                                                                          The ongoing trends in the commodity
                                                                                                                          and premium brand ecosystems of Android devices

                                                                                                                          Smartphones

                                                                                                                          Motorola likely to bid farewell to Taiwan handset ODMs after Google sells plants to Flextronics [DIGITIMES, Dec 17, 2012]

                                                                                                                          The partnerships between Motorola Mobility and Taiwan-based handset ODMs such as Foxconn International Holdings (FIH) will begin to fade away, as Google, the parent company of Motorola, has signed an agreement to hand over Motorola’s manufacturing operations in Tianjin, China, and Jaguariuna, Brazil to Flextronics International, according to industry sources.

                                                                                                                          After the deal between Google and Flextronics is completed in the first half of 2013, Motorola will completely withdraw from the handset manufacturing industry, and instead will transform to a brand operator targeting mainly the mid-range to high-end smartphone segment, the sources indicated.

                                                                                                                          While the streamlining of Motorola’s operations comes as no surprise to Taiwan handset ODMs, Google’s decision to sell Motorola’s plants to Flextronics, instead of its long-tern partner FIH, has raised concerns among the industry.

                                                                                                                          Flextronics is purchasing the plants in exchange for orders from Motorola since the Singapore-based EMS giant has made little progress in gaining handset orders from Apple or major players in the Android or Windows Phone camps, the sources commented.

                                                                                                                          It is also no longer necessary for FIH to buy plants in exchange for orders, as the company has transferred from handset EMS operations to focus on smartphone ODM business, indicated the sources, adding that FIH has also managed to establish partnerships with a number of major players in the smartphone sector.

                                                                                                                          However, a deepened cooperation between Motorola and Flextronics may affect the handset component supply chain in Taiwan, the sources warned.

                                                                                                                          Digitimes Research: Android phones to account for 70% of global smartphone market in 2013 [DIGITIMES Research, Dec 6, 2012]

                                                                                                                          Android will further solidify its market leadership in the smartphone operating system race in 2013, thanks to a broad support from smartphone vendors and the rollout of a wide range of low-priced models for sale in emerging markets. Shipments of Android phones are expected to top 600 million units or over 70% of global smartphone shipments in 2013, Digitimes Research estimates.

                                                                                                                          iOS will trail Android to take the number two position in the OS ratings with a 20% share, while other smartphone platforms will share the remaining 10%.

                                                                                                                          Shipments of Windows Phones, including 7.x and 8.x models, will grow 150% on year to 52.5 million units in 2013 for a 6.1% share, followed by RIM’s BlackBerry devices with a 3.7% share, Digitimes Research estimates. Other platforms, including Tizen and Firefox, will take up a portion lower than 1%.

                                                                                                                          Digitimes Research: Global smartphone shipments to grow 30% in 2013 [DIGITIMES Research, Nov 19, 2012]

                                                                                                                          Global smartphone shipments are expected to grow 30% to 865 million units in 2013, accounting for 43.9% of total handset shipments in the year, Digitimes Research has estimated.

                                                                                                                          Factors including relationships between platform providers and hardware makers, support from telecom carriers for new models, and key developments or decisions by some vendors will affect smartphone sales in 2013, Digitimes Research believes.

                                                                                                                          Google is expected to further strengthen its control over the Android ecosystem and its production partners, which may limit the development of other platforms or variant Android models.

                                                                                                                          Microsoft’s launch of own-brand smartphones may result in a reduction in support for the Window Phone platform by hardware vendors, which should otherwise serve as a key factor to push for the growth of the Window Phone to become a third major platform in the segment.

                                                                                                                          While Amazon is likely to enter the smartphone market, 2013 may be crucial a year for Nokia and RIM (Research in Motion) to make vital decisions concerning their smartphone businesses.

                                                                                                                          Demand for high-end smartphone models in Western Europe will be affected seriously by reduced government budgets and weak consumption in the region because of the prolonged financial crisis.

                                                                                                                          However, smartphones’ growing penetration in China, Russia, India, Indonesia, South America and other emerging markets will serve as a growth driver for global smartphone shipments in 2013, Digitimes Research believes.

                                                                                                                          Google, Amazon and other vendors in China to lead pricing in low-cost smartphone segment, say sources [DIGITIMES , Nov 5, 2012]

                                                                                                                          While sales of low-cost smartphones are expected to continue growing in the next few years, Google, Amazon and other Internet service companies in China may lead price competition in the segment, according to industry sources.

                                                                                                                          Shipments of low-cost smartphones, defined as models with a selling price of less than US$150, are forecast to double every year from 2010 to 2016, increasing from 4.5 to 311 million units, according to NPD DisplaySearch.

                                                                                                                          Most of the demand (60%) is from the Asia Pacific region, where a large majority of component suppliers and manufacturing factories are located – providing both time and cost savings, said DisplaySearch.

                                                                                                                          In China, the trend for telecom carriers to continue cooperating with chipset suppliers, handset design houses and handset vendors for the launch low-priced smatphone models will continue for a while, the sources noted.

                                                                                                                          Vendors including Huawei Device, ZTE, Lenovo and Coolpad have emerged as the leading group of the smartphone suppliers in China through the offerings of low-cost models, but most of vendors has suffered losses or seen the profits of their handset business decline due to fierce price competition in the segment, the sources revealed.

                                                                                                                          Lenovo’s handset business unit is still operating in red, and Huawei and Coolpad have seen their profits decline, while ZTE and TCL have seen their handset businesses swing from profitability to loss, the sources indicated.

                                                                                                                          In order to stemming losses, or improving profitability, most branded smartphone vendors in China have been trying to expand their share in the mid- and high-end segment, while pushing their sales through local retain channels or export sales.

                                                                                                                          But other China-based smartphone vendors such as Xiaomi Technology, Internet service companies including Baidu and Shada Interactive Entertainment, as well as online retail giant 360buy, are likely to continue to adopt aggressive price strategies to pushing sales of their own models, said the sources.

                                                                                                                          In the global market, the cooperation between Google and LG Electronics for the launch of Nexus 4 at prices ranging from US$299-349 is also expected to lead to the proliferation of more low-priced Android smartphone models, the sources indicated.

                                                                                                                          Amazon, which has been aggressive in the tablet segment, is expected to release its first smartphone model in 2013 with the same price tactics, which is likely to further drive down the prices of smartphones, commented the sources.

                                                                                                                          Digitimes Research: Nexus 4 to be popular in prepaid SIM card and telecom retail channels [DIGITIMES Research, Nov 7, 2012]

                                                                                                                          Google’s Nexus 4, which comes with a 4.7-inch 720p HD display and Qualcomm quad-core Snapdragon S4 processor, is expected to become a popular model in the prepaid SIM card segment as well as in telecom retail channels for unlocked subscribers, according to Digitimes Research.

                                                                                                                          With its high hardware specifications and pricing of US$299 for the 8GB version and US$349 for the 16GB version, the Nexus 4 will cause price pressure on other comparable models rolled by rival brands.

                                                                                                                          Sales of Windows phones are expected to grow 250% in 2013 due in part to support from telecom carriers which are seeking a third platform other than Android or iOS. However, Android will continue to lead the market with a wide margin, Digitimes Research said.

                                                                                                                          Google aggressive pricing for Nexus 4 smartphone to affect sales of other brands [DIGITIMES, Oct 30, 2012]

                                                                                                                          Google’s pricing of US$299-349 for its newly released 4.7-inch, quad-core Nexus 4 smartphone is lower than market expectations, and thus could affect the sales of Android-based smartphones launched by other branded vendors, according to industry sources.

                                                                                                                          Prior to the release of the Nexus 4 in cooperation with LG Electronics, Google had cooperated with HTC and Samsung Electronics, respectively, for the launch of three generations of Nexus smartphones with prices ranging from US$500-700.

                                                                                                                          The Nexus 4 will enjoy the advantage in pricing even compared to the latest quad-core Android models rolled out by other vendors, indicated the sources, noting that Asustek Computer’s 4.7-inch Padfone 2 is available for US$600, while China-based Xiaomi Technology’s second-generation Xiaomi phone is priced at CNY1,999 (US$320).

                                                                                                                          Other Android-based smartphone vendors, including HTC, Sony Mobile Communications, Huawei Device, ZTE and even Motorola Mobility, all are likely to adjust their price strategies, since chances are high that the Nexus 4 will make a strong impact on the smartphone market, commented the sources.

                                                                                                                          China market: Nexus 4 pricing to affect sales, prices of other brands, says report [DIGITIMES, Nov 7, 2012]

                                                                                                                          The aggressive pricing strategy adopted by Google for its Nexus 4 may affect sales of Xiaomi smartphones in China and may also force other brands including Samsung Electronics, Motorola and HTC to lower the prices of their offerings in China, according to a China-based 21st Century Business Herald report.

                                                                                                                          The price of US$299 (CNY1,890) for the 8G version of the Nexus 4 is more competitive than Xiaomi’s next-generation quad-core smartphone which is available at CNY1,999, the paper noted.

                                                                                                                          Xiaomi is selling its first quad-core model below its BOM of CNY2,350 and will limit initial sales of the model to 50,000 units only, said the paper, which added that Xiaomi aims to ramp up volumes to 250,000 units to bring down the BOM when it begins to offer the second round of sales in mid-November.

                                                                                                                          Although the Nexus is not yet available in China, consumers may hesitate to pick up the quad-core Xiaomi smartphones because they have to wait for several months before Xiaomi will begin delivering the devices, said the paper.

                                                                                                                          China market: Coolpad hopes to regain mid-range, high-end smartphone share [DIGITIMES , Nov 7, 2012]

                                                                                                                          China-based handset maker Coolpad hopes to re-enter the mid-range and high-end smartphone market in China by introducing smartphone products with China Mobile that will be priced above CNY5,000/unit (US$800/unit).

                                                                                                                          In the recent years, Coolpad has been focusing on smartphones at the price range of CNY1,000/unit by cooperating with China’s three telecom service providers. Entry-level and mid-range models have accounted for 85% of Coolpad’s total shipments. The firm recently introduced a new model, Coolpad 9960 (Da Guan HD), with a 4.7-inch screen, Nvidia Tegra 3 quad-core processor, and a 13-megapixel front camera. The model will be priced above CNY5,000/unit.

                                                                                                                          Currently, China’s mid-range and high-end smartphone markets have been dominated by international brands such as Apple, HTC, Motorola, and Sony. Coolpad has been the only local brand that has a relatively strong market share.

                                                                                                                          According to industry sources, in 2012, Coolpad increased investment in R&D of high-end products by 20% on year and formed an R&D team of 800 staff to strengthen its high-end product line.

                                                                                                                          Lenovo, Huawei, ZTE faced with challenges to reach quarterly shipments of 10 million smartphones, say Taiwan makers [DIGITIMES , Nov 5, 2012]

                                                                                                                          A total of 60 million smartphones were shipped to the China market in the third quarter of 2012, and Lenovo, Huawei and ZTE shipped nine million units, 8.5 million units and 7.5 million units, respectively, with a combined market share of 41.7%, according to DRAMeXchange under consulting company TrendForce.

                                                                                                                          Except for Apple and Samsung Electronics, other international vendors including HTC, Sony Mobile Communications, LG Electronics, Nokia have not been able to attain quarterly shipments of 10 million smartphones, the sources indicated. Lenovo, Huawei and ZTE stand a chance to ship 10 million smartphones a quarter if they can strengthen their branding operations, marketing and product lines of mid-range and high-end models in overseas markets, the sources pointed out.

                                                                                                                          Lenovo has focused on entry-level smartphones priced below CNY1,500 (US$240) and relied too much on the domestic market, the sources indicated. In comparison with Lenovo, Huawei and ZTE have the advantage of cooperation with mobile telecom carriers in many countries, but their brand image is not strong enough for marketing mid-range and high-end smartphones, the sources pointed out.

                                                                                                                          PC vendors recommended to target niche smartphone market to avoid direct competition [DIGITIMES , Oct 3, 2012]

                                                                                                                          Branded PC vendors including Hewlett-Packard (HP) and Asustek Computer, which plan to reignite their smartphone businesses, are recommended to offer models with strong application platforms, sleek product design and integrated cloud computing capabilities targeting niche markets, while avoiding direct competition with smartphone vendors, according to sources at Taiwan’s handset supply chain.

                                                                                                                          Among the leading brands, HP, Dell and Asustek have not launched new handsets for some time, while Acer has made little progress in the sector although it has continued rolling out new phones, indicated the sources.

                                                                                                                          Lenovo’s performance has been exceptional, taking the second-ranked title in China’s smartphone market by optimizing an array of entry-level models priced at around CNY1,000 (US$158).

                                                                                                                          The reason major branded PC vendors are considering a comeback to the smartphone market hinges on emerging business opportunities that are anticipated to come along with the launch of Windows 8. They are hoping that sales of Windows 8-based PCs will help promote the sale of Windows Phone 8 smartphones as well.

                                                                                                                          Even so, prospects are still slim for PC brands to make a strong presence in the smartphone market, given that Apple and Samsung Electronics are currently the top-2 vendors dominating the segment, while other smartphone brands including Nokia, RIM, Sony Mobile Communications, Motorola Mobility are lagging behind with heavy losses, the sources commented.

                                                                                                                          Worldwide Mobile Phone Growth Expected to Drop to 1.4% in 2012 Despite Continued Growth Of Smartphones, According to IDC [IDC press release, Nov 1, 2012]

                                                                                                                          The worldwide mobile phone market is forecast to grow 1.4% year over year in 2012, the lowest annual growth rate in three years despite a projected record number of smartphone shipments in the high-volume holiday season. According to the International Data Corporation (IDC) Worldwide Quarterly Mobile Phone Tracker, vendors will ship more than 1.7 billion mobile phones this year. In 2016, IDC forecasts 2.2 billion mobile phones will be shipped to the channel.

                                                                                                                          Global smartphone volume in the fourth quarter of 2012 (4Q12) is expected to reach 224.5 million units, representing 39.5% year-over-year growth due primarily to strong consumer demand. For the year, smartphone shipments are forecast to grow 45.1% year over year to 717.5 million units. Strong smartphone growth is a result of a variety of factors, including steep device subsidies from carriers, especially in mature economic markets where carriers resell the majority of smartphones, as well as a growing array of sub-US$250 smartphones in emerging markets.

                                                                                                                          “Sluggish economic conditions worldwide have cast a pall over the mobile phone market this year,” said Kevin Restivo, senior research analyst with IDC’s Worldwide Quarterly Mobile Phone Tracker. “However, the fourth quarter will be relatively bright due in part to sales of high-profile smartphones, such as the iPhone 5 and Samsung’s Galaxy S3, in addition to lower-cost Android-powered smartphones shipped to China and other high-growth emerging markets.”

                                                                                                                          Smartphone Operating Systems

                                                                                                                          “Underpinning the worldwide smartphone market is a constantly shifting mobile operating system landscape,” added Ramon Llamas, research manager with IDC’s Mobile Phone team. “Android is expected to stay in front, but we also expect it to be the biggest target for competing operating systems to grab market share. At the same time, Windows Phone stands to gain the most market share as its smartphone and carrier partners have gained valuable experience in selling the differentiated experience Windows Phone has to offer. What bears close observation is how BlackBerry’s new platform, BlackBerry 10, and multiple versions of Linux will affect the market once the devices running these systems are available.”

                                                                                                                          IDC forecasts Android to be the clear leader in the smartphone mobile operating system race, thanks in large part to a broad selection of devices from a wide range of partners. Samsung is the leading Android smartphone seller though resurgent smartphone vendors LG Electronics and Sony, both of which cracked the top five smartphone vendors during 3Q12, are not to be overlooked. IDC believes the net result of this will be continued double-digit growth throughout the forecast period.

                                                                                                                          iOS will maintain its position as the clear number two platform behind Android at the end of 2012 and throughout the forecast. The popularity of the iPhone across multiple markets will drive steady replacements and additional carrier partners will help Apple grow iOS volume. However, the high price point of the iPhone relative to other smartphones will make it cost prohibitive for some users within many emerging markets. In order to maintain current growth rates, Apple will need to examine the possibility of offering less expensive models, similar to its iPod line. Until that happens, IDC forecasts iOS to ship lower volumes than Android.

                                                                                                                          The BlackBerry OS will grow slowly but largely maintain share over the coming years following the BlackBerry 10 launch next year. The new operating system and devices will be valued by some longtime BlackBerry fans, particularly those who have waited for the new OS as Research In Motion delayed its release. This will allow the company to maintain pockets of strength in higher-growth emerging markets such as Indonesia and various Latin American countries. But, as with many other new platforms, the success of BB 10 will be partly dependent upon channel advocacy, like sales associates who can effectively tell the BlackBerry story.

                                                                                                                          Windows Phone will battle with BlackBerry for the number three spot in 2013, but will gain further clarity in the years that follow. Windows Phone will build on the progress it made in 2012, with Nokia establishing its presence and HTC solidly jumping back into the race. Moreover, contributions by Samsung, ZTE, and Huawei will help grow its footprint. With more vendors releasing more devices aimed at multiple segments, sales associates will be better positioned to tell a compelling Windows Phone story and to explain the value of Windows Phone’s differentiated experience compared to market leaders Android and iOS.

                                                                                                                          Linux will trail the market leaders throughout our forecast though it is expected to be the dark horse of the forecast. K-Touch has quietly built its Linux volumes this year while Haier recently released its first Linux smartphones. In addition, multiple platforms are expected to announce and launch their Linux-based smartphones in 2013, including Samsung’s Tizen and Jolla’s SailFish. Benefiting these platforms are their ties to previous platforms from the LiMo Foundation and Nokia’s MeeGo, which could lead to greater developer interest.

                                                                                                                          Top Smartphone Operating Systems, Forecast Market Share and CAGR, 2012–2016

                                                                                                                          Smartphone OS

                                                                                                                          2012 Market Share

                                                                                                                          2016 Market Share

                                                                                                                          CAGR 2012 – 2016 (%)

                                                                                                                          Android

                                                                                                                          68.3%

                                                                                                                          63.8%

                                                                                                                          16.3%

                                                                                                                          iOS

                                                                                                                          18.8%

                                                                                                                          19.1%

                                                                                                                          18.8%

                                                                                                                          BlackBerry OS

                                                                                                                          4.7%

                                                                                                                          4.1%

                                                                                                                          14.6%

                                                                                                                          Windows Phone

                                                                                                                          2.6%

                                                                                                                          11.4%

                                                                                                                          71.3%

                                                                                                                          Linux

                                                                                                                          2.0%

                                                                                                                          1.5%

                                                                                                                          10.5%

                                                                                                                          Others

                                                                                                                          3.6%

                                                                                                                          0.1%

                                                                                                                          -100.0%

                                                                                                                          Total

                                                                                                                          100.0%

                                                                                                                          100.0%

                                                                                                                          18.3%

                                                                                                                          Source: IDC Worldwide Mobile Phone Tracker, December 3, 2012

                                                                                                                          image

                                                                                                                          Android Marks Fourth Anniversary Since Launch with 75.0% Market Share in Third Quarter, According to IDC [IDC press release, Nov 1, 2012]

                                                                                                                          The Android smartphone operating system was found on three out of every four smartphones shipped during the third quarter of 2012 (3Q12). According to the International Data Corporation (IDC) Worldwide Quarterly Mobile Phone Tracker, total Android smartphone shipments worldwide reached 136.0 million units, accounting for 75.0% of the 181.1 million smartphones shipped in 3Q12. The 91.5% year-over-year growth was nearly double the overall market growth rate of 46.4%.

                                                                                                                          “Android has been one of the primary growth engines of the smartphone market since it was launched in 2008,” said Ramon Llamas, research manager, Mobile Phones at IDC. “In every year since then, Android has effectively outpaced the market and taken market share from the competition. In addition, the combination of smartphone vendors, mobile operators, and end-users who have embraced Android has driven shipment volumes higher. Even today, more vendors are introducing their first Android-powered smartphones to market.”

                                                                                                                          “The share decline of smartphone operating systems not named iOS since Android’s introduction isn’t a coincidence,” said Kevin Restivo, senior research analyst with IDC’s Worldwide Quarterly Mobile Phone Tracker. “The smartphone operating system isn’t an isolated product, it’s a crucial part of a larger technology ecosystem. Google has a thriving, multi-faceted product portfolio. Many of its competitors, with weaker tie-ins to the mobile OS, do not. This factor and others have led to loss of share for competitors with few exceptions.”

                                                                                                                          Mobile Operating System Highlights

                                                                                                                          Android, having topped the 100 million unit mark last quarter, reached a new record level in a single quarter. By comparison, Android’s total volumes for the quarter were greater than the total number of smartphones shipped in 2007, the year that Android was officially announced. Samsung once again led all vendors in this space, but saw its market share decline as numerous smaller vendors increased their production.

                                                                                                                          iOS was a distant second place to Android, but was the only other mobile operating system to amass double-digit market share for the quarter. The late quarter launch of the iPhone 5 and lower prices on older models prevented total shipment volumes from slipping to 3Q11 levels. But without a splashy new OS-driven feature like Siri in 2011 and FaceTime in 2010, the iPhone 5 relied on its larger, but not wider, screen and LTE connectivity to drive growth.

                                                                                                                          BlackBerry‘s market share continued to sink, falling to just over 4% by the end of the quarter. With the launch of BlackBerry 10 yet to come in 2013, BlackBerry will continue to rely on its aging BlackBerry 7 platform, and equally aging device line-up. Still, demand for BlackBerry and its wildly popular BBM service is strong within multiple key markets worldwide, and the number of subscribers continues to increase.

                                                                                                                          Symbian posted the largest year-on-year decline of the leading operating systems. Nokia remains the largest vendor still supporting Symbian, along with Japanese vendors Fujitsu, Sharp, and Sony. Each of these vendors is in the midst of transitioning to other operating systems and IDC believes that they will cease shipping Symbian-powered smartphones in 2013. At the same time, the installed base of Symbian users will continue well after the last Symbian smartphone ships.

                                                                                                                          Windows Phone marked its second anniversary with a total of just 3.6 million units shipped worldwide, fewer than the total number of Symbian units shipped. Even with the backing of multiple smartphone market leaders, Windows Phone has yet to make a significant dent into Android’s and iOS’s collective market share. That could change in 4Q12, when multiple Windows Phone 8 smartphones will reach the market.

                                                                                                                          Linux volume declined for the third straight quarter as did its year-over-year growth. Samsung accounted for the majority of shipments once again, but like most other vendors competing with Linux-powered smartphones, most of its attention went towards Android instead. Still, that has not deterred other vendors from experimenting, or at least considering the open-source operating system, as multiple reports of Firefox, Sailfish, and Tizen plan to release new Linux-based experiences in the future.

                                                                                                                          Top Six Smartphone Mobile Operating Systems, Shipments, and Market Share, Q3 2012 (Preliminary) (Units in Millions)

                                                                                                                          Operating System

                                                                                                                          3Q12 Shipment Volumes

                                                                                                                          3Q12 Market Share

                                                                                                                          3Q11 Shipment Volumes

                                                                                                                          3Q11 Market Share

                                                                                                                          Year-Over-Year Change

                                                                                                                          Android

                                                                                                                          136.0

                                                                                                                          75.0%

                                                                                                                          71.0

                                                                                                                          57.5%

                                                                                                                          91.5%

                                                                                                                          iOS

                                                                                                                          26.9

                                                                                                                          14.9%

                                                                                                                          17.1

                                                                                                                          13.8%

                                                                                                                          57.3%

                                                                                                                          BlackBerry

                                                                                                                          7.7

                                                                                                                          4.3%

                                                                                                                          11.8

                                                                                                                          9.5%

                                                                                                                          -34.7%

                                                                                                                          Symbian

                                                                                                                          4.1

                                                                                                                          2.3%

                                                                                                                          18.1

                                                                                                                          14.6%

                                                                                                                          -77.3%

                                                                                                                          Windows Phone 7/ Windows Mobile

                                                                                                                          3.6

                                                                                                                          2.0%

                                                                                                                          1.5

                                                                                                                          1.2%

                                                                                                                          140.0%

                                                                                                                          Linux

                                                                                                                          2.8

                                                                                                                          1.5%

                                                                                                                          4.1

                                                                                                                          3.3%

                                                                                                                          -31.7%

                                                                                                                          Others

                                                                                                                          0.0

                                                                                                                          0.0%

                                                                                                                          0.1

                                                                                                                          0.1%

                                                                                                                          -100.0%

                                                                                                                                     

                                                                                                                          Totals

                                                                                                                          181.1

                                                                                                                          100.0%

                                                                                                                          123.7

                                                                                                                          100.0%

                                                                                                                          46.4%

                                                                                                                          Source: IDC Worldwide Mobile Phone Tracker, November 1, 2012
                                                                                                                          Note: Data are preliminary and subject to change. Vendor shipments are branded shipments and exclude OEM sales for all vendors.

                                                                                                                          Android Smartphone Shipments and Market Share, 2008 – 2012 YTD (Units in Millions)

                                                                                                                           

                                                                                                                          2008

                                                                                                                          2009

                                                                                                                          2010

                                                                                                                          2011

                                                                                                                          2012 YTD

                                                                                                                          Android Total Unit Shipments

                                                                                                                          0.7

                                                                                                                          7.0

                                                                                                                          71.1

                                                                                                                          243.4

                                                                                                                          333.6

                                                                                                                          Android Market Share

                                                                                                                          0.5%

                                                                                                                          4.0%

                                                                                                                          23.3%

                                                                                                                          49.2%

                                                                                                                          68.2%

                                                                                                                          Source: IDC Worldwide Mobile Phone Tracker, November 1, 2012
                                                                                                                          Note: Data are preliminary and subject to change. Vendor shipments are branded shipments and exclude OEM sales for all vendors.

                                                                                                                          Gartner Says Worldwide Sales of Mobile Phones Declined 3 Percent in Third Quarter of 2012; Smartphone Sales Increased 47 Percent [Gartner press release, Nov 14, 2012]

                                                                                                                          Samsung Extended Its Lead in the Smartphone Market Widening the Gap with Apple

                                                                                                                          Worldwide sales of mobile phones to end users reached almost 428 million units in the third quarter of 2012, a 3.1 percent decline from the third quarter of 2011, according to Gartner, Inc. Smartphone sales accounted for 39.6 percent of total mobile phone sales, as smartphone sales increased 46.9 percent from the third quarter of 2011. 

                                                                                                                          While the mobile phone market declined year-on-year, Gartner analysts said there were positive signs for the industry during the third quarter. 

                                                                                                                          “After two consecutive quarter of decline in mobile phone sales, demand has improved in both mature and emerging markets as sales increased sequentially,” said Anshul Gupta, principal research analyst at Gartner. “In China, sales of mobile phones grew driven by sales of smartphones, while demand of feature phones remained weak. In mature markets, we finally saw replacement sales pick up with the launch of new devices in the quarter.” 

                                                                                                                          Smartphones continued to fuel sales of mobile phones worldwide with sales rising to 169.2 million units in the third quarter of 2012. The smartphone market was dominated by Apple and Samsung. “Both vendors together controlled 46.5 percent of smartphone market leaving a handful of vendors fighting over a distant third spot,” said Mr. Gupta. 

                                                                                                                          Nokia slipped from No. 3 in the second quarter of 2012 to No. 7 in smartphone sales in the third quarter of 2012. RIM moved to the No. 3 spot with HTC not far behind, at No. 4. “Both HTC and RIM have seen their sales declining in past few quarters, and the challenges might prevent them from holding on to their current rankings in coming quarters,” added Mr. Gupta. 

                                                                                                                          While seasonality in the fourth quarter of 2012 will help end-of-year mobile phone sales to end users, Gartner analysts said that there will be a lower-than-usual boost from the holiday season. Consumers are either cautious with their spending or finding new gadgets like tablets, as more attractive presents. 

                                                                                                                          Samsung’s mobile phones sales continued to accelerate, totaling almost 98 million units in the third quarter of 2012 (see Table 1), up 18.6 percent year-on-year. Samsung saw strong demand for Galaxy smartphones across different price points, and it further widened the gap with Apple in the smartphone market, selling 55 million smartphones in the third quarter of 2012. It commanded 32.5 percent of the global smartphone market in the third quarter of 2012. 

                                                                                                                          Table 1
                                                                                                                          Worldwide Mobile Device Sales to End Users by Vendor in 3Q12 (Thousands of Units)

                                                                                                                          Company

                                                                                                                          3Q12

                                                                                                                          Units

                                                                                                                          3Q12 Market Share (%)

                                                                                                                          3Q11

                                                                                                                          Units

                                                                                                                          3Q11 Market Share (%)

                                                                                                                          Samsung

                                                                                                                          97,956.8

                                                                                                                          22.9

                                                                                                                          82,612.2

                                                                                                                          18.7

                                                                                                                          Nokia

                                                                                                                          82,300.6

                                                                                                                          19.2

                                                                                                                          105,353.5

                                                                                                                          23.9

                                                                                                                          Apple

                                                                                                                          23,550.3

                                                                                                                          5.5

                                                                                                                          17,295.3

                                                                                                                          3.9

                                                                                                                          ZTE

                                                                                                                          16,654.2

                                                                                                                          3.9

                                                                                                                          14,107.8

                                                                                                                          3.2

                                                                                                                          LG Electronics

                                                                                                                          13,968.8

                                                                                                                          3.3

                                                                                                                          21,014.6

                                                                                                                          4.8

                                                                                                                          Huawei Device

                                                                                                                          11,918.9

                                                                                                                          2.8

                                                                                                                          10,668.2

                                                                                                                          2.4

                                                                                                                          TCL Communication

                                                                                                                          9,326.7

                                                                                                                          2.2

                                                                                                                          9,004.7

                                                                                                                          2.0

                                                                                                                          Research in Motion

                                                                                                                          8,946.8

                                                                                                                          2.1

                                                                                                                          12,701.1

                                                                                                                          2.9

                                                                                                                          Motorola

                                                                                                                          8,562.7

                                                                                                                          2.0

                                                                                                                          11,182.7

                                                                                                                          2.5

                                                                                                                          HTC

                                                                                                                          8,428.6

                                                                                                                          2.0

                                                                                                                          12,099.9

                                                                                                                          2.7

                                                                                                                          Others

                                                                                                                          146,115.1

                                                                                                                          34.2

                                                                                                                          145,462.2

                                                                                                                          32.9

                                                                                                                          Total

                                                                                                                          427,729.5

                                                                                                                          100.0

                                                                                                                          441,502.2

                                                                                                                          100.0

                                                                                                                          Source: Gartner (November 2012)

                                                                                                                          Nokia’s mobile phone sales declined 21.9 percent in the third quarter of 2012, but overall sales at 82.3 million were better than Gartner’s early estimate, largely driven by increased sales of the Asha full touch range. Nokia had a particularly bad quarter with smartphone sales, and it tumbled to the No. 7 worldwide position with 7.2 million smartphones sold in the third quarter. The arrival of the new Lumia devices on Windows 8 should help to halt the decline in share in the fourth quarter of 2012, although it won’t be until 2013 to see a significant improvement in Nokia’s position

                                                                                                                          Apple’s sales to end users totaled 23.6 million units in the third quarter of 2012, up 36.2 percent year-on-year. “We saw inventory built up into the channel as Apple prepared for the coming holiday season, global expansions and the launch into China in the fourth quarter of 2012,” said Mr. Gupta. With iPhone 5 launching in more territories in the fourth quarter of 2012, including China, and the upcoming holiday season Gartner analysts expect Apple will have its traditionally strongest quarter. 

                                                                                                                          In the smartphone market, Android continued to increase its market share, up 19.9 percentage points in the third quarter of 2012. Although RIM lost market share, it climbed to the No. 3 position as Symbian is nearing the end of its lifecycle. There was also channel destocking in preparation of new device launches for RIM, which resulted into 8.9 million sales to end users in the third quarter of 2012. With the launch of iPhone 5, Gartner analysts expect iOS share will grow strongly in the fourth quarter of 2012 because users held on to their replacements in many markets ahead of the iPhone 5 wider roll out. Windows Phone’s share weakened quarter-on-quarter as the Windows Phone 8 launch dampened demand of Windows Phone 7 devices. 

                                                                                                                          Table 2
                                                                                                                          Worldwide Mobile Device Sales to End Users by Operating System in 3Q12 (Thousands of Units)

                                                                                                                          Operating System

                                                                                                                          3Q12

                                                                                                                          Units

                                                                                                                          3Q12 Market Share (%)

                                                                                                                          3Q11

                                                                                                                          Units

                                                                                                                          3Q11 Market Share (%)

                                                                                                                          Android

                                                                                                                          122,480.0

                                                                                                                          72.4

                                                                                                                          60,490.4

                                                                                                                          52.5

                                                                                                                          iOS

                                                                                                                          23,550.3

                                                                                                                          13.9

                                                                                                                          17,295.3

                                                                                                                          15.0

                                                                                                                          Research In Motion

                                                                                                                          8,946.8

                                                                                                                          5.3

                                                                                                                          12,701.1

                                                                                                                          11.0

                                                                                                                          Bada

                                                                                                                          5,054.7

                                                                                                                          3.0

                                                                                                                          2,478.5

                                                                                                                          2.2

                                                                                                                          Symbian

                                                                                                                          4,404.9

                                                                                                                          2.6

                                                                                                                          19,500.1

                                                                                                                          16.9

                                                                                                                          Microsoft

                                                                                                                          4,058.2

                                                                                                                          2.4

                                                                                                                          1,701.9

                                                                                                                          1.5

                                                                                                                          Others

                                                                                                                          683.7

                                                                                                                          0.4

                                                                                                                          1,018.1

                                                                                                                          0.9

                                                                                                                          Total

                                                                                                                          169,178.6

                                                                                                                          100.0

                                                                                                                          115,185.4

                                                                                                                          100.0

                                                                                                                          Source: Gartner (November 2012) 

                                                                                                                          Additional information can be found in the Gartner report “Market Share: Mobile Phones by Region and Country, 3Q12.” The report is available on Gartner’s website at http://www.gartner.com/resId=2236115.

                                                                                                                           


                                                                                                                          Tablets

                                                                                                                          Digitimes Research: Global tablet shipments to surpass that of notebooks in 2013 [DIGITIMES Research, Nov 19, 2012] 

                                                                                                                          Digitimes Research expects global tablet shipments to reach 210 million units in 2013, up 38.3% on year and surpass those of notebook for the first time, with branded tablet shipments to account for 140 million units, according to Digitimes Research senior analyst James Wang.
                                                                                                                          [Compare this to the notebook shipment forecast by Digitimes Research of 192 million units in 2012 expected to drop to 189 million units in 2013. See additional details of this forecast below in Digitimes Research: Windows 8 expected to have minimal impact on touch screen notebooks in 2013.]

                                                                                                                          In 2013, Google is expected to maintain its momentum from the Nexus series products and become the second largest tablet brand vendor worldwide with shipments of 19 million units. Apple will remain the largest tablet vendor worldwide, but its share in the global branded tablet shipments will drop to only 55.6% [i.e. 78 million units], down from more than 60% in 2012, and 37.4% in total tablet shipments (including white-box models).

                                                                                                                          With surging shipment growth for white-box tablets, Android is expected to become the largest platform in the tablet market, surpassing iOS. In 2013, Digitimes Research expects Android-based tablet shipments including white-box and branded models, to reach 121 million units, up 40.2% on year. [With the global 210 millions and branded 140 millions the white-box tablet shipments are expected to grow to 70 million units in 2013 vs. 50 millions this year. Therefore the branded Android based-tablets to become 51 millions, and as the Nexus tablets are said here to become 19 millions there will be 32 millions other branded Android tablets sold in 2013 .]

                                                                                                                          Digitimes Research also expects global tablet shipments will reach 320 million units in 2015 with branded tablets to account for 220 million units and white-box models to account for 100 million units.

                                                                                                                          Digitimes Research: Global Tablet Market to Enjoy Strong Shipment Growth in 4Q12 [DIGITIMES Research, Nov 13, 2012]

                                                                                                                          Global tablet shipments from major brands worldwide are expected to reach 40.93 million units in the fourth quarter of 2012, up 72.7% sequentially and 89.7% on year, according to Digitimes Research senior analyst James Wang.

                                                                                                                          As for the tablet vendor rankings in the quarter, Apple will remain as the largest vendor worldwide, while Amazon is expected to return as the second-largest and Google will rank third with assistance from its Nexus 7 and Nexus 10. Microsoft will rank fourth, Samsung Electronics fifth, and Barnes & Noble sixth. Asustek, Lenovo and Acer will rank seventh, eighth and ninth, respectively, Wang noted.

                                                                                                                          As for the tablet processor supplier rankings, Texas Instruments (TI) will return as the second-largest with Nvidia at third. Intel will also be ranked for the first time due to Windows 8.

                                                                                                                          Taiwan makers are expected to ship 36.6 million tablets combined in the fourth quarter, up 82.3% sequentially and 86.7% on year, with the volume accounting for 89% of global tablet shipments. Foxconn Electronics (Hon Hai Precision Industry) will be the largest tablet maker, followed by Quanta Computer, Pegatron Technology, Wistron and Compal Electronics.

                                                                                                                          Digitimes Research estimates that global branded tablet shipments will reach 104 million units in 2012, up 64% on year, with iPad accounting for 63% of the volume, down 2pp on year, while both Android and Windows will see their proportions increase.

                                                                                                                          In comparison the white-box tablet shipments are up by whopping 317% in 2012 at least (50 million units shipped as a minimum vs. 12 million units in 2011) according to sources given below: 

                                                                                                                          Digitimes Research: White-box tablet shipments to surpass 50 million units in 2012 [DIGITIMES Research, Nov 8, 2012]

                                                                                                                          White-box tablets are expected to see a surge in shipment growth in 2012 with volumes surpassing 50 million units, according to Digitimes Research senior analyst James Wang.

                                                                                                                          There are three major drivers that will help white-box tablets achieve strong growth in the year: a large number of potential consumers brought in by Android handsets, mature development of China-based processors, and decreasing costs o white-box tablets. With the addition of white-box tablet shipments, Android is expected to surpass iOS and become the largest mobile operating system in 2012, while 7-inch displays will also become the mainstream specification for tablets.

                                                                                                                          As the branded tablet PC market is seeing fierce competition in terms of technology, capacity, yield rates, patents and prices, the rise of white-box tablets has already made these players a new force in the tablet market, with some white-box players even seeing higher shipment volumes than first-tier vendors.

                                                                                                                          Digitimes Research believes that brand vendors should be aware of white-box tablet players’ developments in the future, since even platform designers such as Google and Microsoft have used their resources to increase price competition in the tablet market, and the situation may gradually turn to favor China-based players with expertise in lowering costs.


                                                                                                                          Source: Digitimes Research, November 2012
                                                                                                                          or from the Chinese version of the same [Nov 9, 2012]:

                                                                                                                          China Fabless: Rockchip rattled by Android tablet wars [by Junko Yoshida on EE Times, Sept 25, 2012]

                                                                                                                          How many tablets does China make, how big is the Chinese market?
                                                                                                                          80 percent of media tablets made in China are exported


                                                                                                                          Unit: Million of units
                                                                                                                          Source: Chinese industry estimates

                                                                                                                          For more information see also: Yoshida in China: ‘Shanzhai’ clouds tablet data [EE Times, Nov 8, 2012]

                                                                                                                          In retrospect: just 4 months ago the forecast was increased from 30 million to 40 million
                                                                                                                          Global shipments of white-box tablet PCs to reach 40 million units in 2012, say chip designers [DIGITIMES, July 25, 2012]

                                                                                                                          Forecast global shipments of white-box tablet PCs in 2012 have been upward adjusted from 30 million units originally to 40 million units due to growing demand in emerging markets including China, India, Thailand and Latin America, according to Taiwan-based design houses of ICs used in tablet PCs.

                                                                                                                          An estimated 10 million white-box tablet PCs were shipped globally in 2011, and shipments increased to 18 million units in the first half of 2012, the sources indicated.

                                                                                                                          Vendors/makers of white-box tablet PCs currently cluster in Shenzhen and Dongguan, southern China, the sources noted. A large portion originally made netbooks and have stepped into tablet PCs as chips and the Android operating systems have matured, the sources said.

                                                                                                                          White-box tablet PCs are primarily competitive in price with models launched by own-brand vendors, with retail prices standing at US$59 for 7-inch models and US$149 for 10.1-inch models, the sources indicated.

                                                                                                                          China market: Domestic chipset vendors ramping up shipments to white-box tablet PC makers [DIGITIMES, July 20, 2012]

                                                                                                                          China-based chipset solution vendors including Rockchip Electronics and Allwinner Technology have been ramping up their shipments to white-box tablet PC vendors in China, cutting out market share from Taiwan-based VIA Technologies, according to industry sources.

                                                                                                                          Shipments of white-box tablet PCs in China totaled eight million units in the first half of 2012 and are expected to reach 16-17 million units for the year, compared to 20 million projected previously, the sources indicated.

                                                                                                                          Rockchip shipped at least 1.6 million tablet chipset solutions in the first half, accounting for 20% of the white-box tablet PC segment. Rockchip’s latest ARM-based dual-core solution, the SoC RK3066, is being built using a 40nm process at Taiwan Semiconductor Manufacturing Company (TSMC), said the sources.

                                                                                                                          Allwinner has been delivering more of its A10 solutions, which are also manufactured by TSMC utilizing a 55nm process, added the sources.

                                                                                                                          then came the news that: Demand for white-box tablets keeps growing despite keen competition [DIGITIMES, Oct 15, 2012]

                                                                                                                          Demand for white-box tablets rolled out by China-based makers remains strong currently despite the launch of US$199 models by Amazon, Barnes & Noble and Google, and the dominance of Apple’s iPads, according to industry sources.

                                                                                                                          Some white-box makers in Shenzhen are shipping 200,000-300,000 tablets a month, and a number of large-scale operators are even shipping one million units a month, buoyed by their tactics of optimizing hardware specifications, while keeping device prices low, noted the sources.

                                                                                                                          Most 9.7- or 10.1-inch white-box tablets powered by a dual-core CPU are currently quoted below US$200, while those comparable models with a single-core processor are priced at US$70-120, revealed the sources.

                                                                                                                          Some 7-inch models built with China-based Allwinner’s A10 solutions can be available for US$50, the sources added.

                                                                                                                          Additionally, the FOB prices of US$150-250 for 9.7-inch white-box tablets with dual-core CPUs, high resolution displays and 3G modules are also competitive in emerging markets, the sources commented.

                                                                                                                          Some tablet exhibitors at the ongoing HKEF 2012 (Hong Kong Electronics Fair, Autumn Edition) estimate that China-based white-box makers as a whole are shipping four million tablets a month currently.

                                                                                                                          Allen Wu, president, ARM China, predicts that shipments of Android-based tablets by China makers are likely to reach 50 million units in 2012 and increase to 100 million units in 2013.

                                                                                                                          Over 5.0 million Nexus 7s to be shipped in 2012, say Taiwan makers [DIGITIMES Research, Nov 19, 2012]

                                                                                                                          At the end of the second quarter, Google expected shipments of 2.5 million Nexus 7s in 2012 but since then it has continually placed additional orders in view of booming sales, with the cumulative shipment volume in 2012 will reach 5.0 million units based on orders released, according to Taiwan-based players in the supply chain.

                                                                                                                          While international vendors usually place orders for shipments to peak in October and November to meet year-end peak demand beginning in late November, Nexus 7 shipments are expected to remain at a high level of 700,000-1,000,000 units in both November and December, the sources pointed out.

                                                                                                                          After the launch of the 16Gb Nexus 7 for sale at US$199 and a 32GB version at US$249, Google on November 13 launched a 32GB 3G-enabled Nexus 7 for sale at US$299 and Google Play and Google’s partner AT&T have sold out available stock, the sources indicated.

                                                                                                                          While the iPad mini is thought of as a major competitor for the Nexus 7, Taiwan-based iPad mini supply chain makers indicated that Apply has not adjusted order volumes since the tablet was launched and monthly shipments remain at nearly 4.0 million units currently.

                                                                                                                          Digitimes Research: Google will become more influential in tablet market [DIGITIMES Research, Nov 2, 2012]

                                                                                                                          Senior analyst James Wang of Digitimes Research believes that Google’s recently announced Nexus 10, developed in cooperation from Samsung Electronics, and upgraded storage for the Nexus 7, are aimed at starting competition with players such as Apple, Amazon, Barnes & Noble and China-based white-box tablet vendors.

                                                                                                                          Since Google has prepared a full-range of tablet products, Wang believes the company’s entry-level Nexus tablet, that has not yet been announced, will have the strongest influence on its competitors.

                                                                                                                          Google’s Nexus 7 shipments performed better than expected, and are forecast to reach 4.3 million units in 2012, accounting for about 20% of non-Apple tablet shipments (excluding white-box models), while the volume in the fourth quarter is also expected to enjoy sequential growth despite the weak global economy, Wang pointed out.

                                                                                                                          Digitimes Research estimates that Google’s Nexus series tablets will see total shipments of 19 million units in 2013 accounting for 50% of non-Apple tablet shipments. [In a later estimate Wang raised the shiments of other branded Android tablets to 32 millions, see also here in the beginning, so Google’s Nexus marketshare now is only 37% in its own category.]

                                                                                                                          But note: Nexus 7 not yet allowed to enter China market [DIGITIMES Research, Sept 11, 2012]

                                                                                                                          While the Nexus 7, the tablet co-developed by Google and Taiwan-based vendor Asustek Computer, has been witnessing booming sales in major markets around the world, it is difficult for the model to be available for sale in the China market because the China government has not yet approved its import, according to industry sources in Taiwan.

                                                                                                                          The China government’s negative attitude is interpreted as a response to Google’s announcement of withdrawing from the China market in March 2010, the sources pointed out. It is difficult for the Nexus 7 to enter the China market, even through sale of Asustek’s marketing network there, the sources indicated.

                                                                                                                          Without the Nexus 7 in the market, China-based white-box vendors of tablets are under much less competitive pressure, the sources indicated. This is because the Nexus 7 has the advantage of Google’s and Asustek’s brand image with commensurate product quality and is expected to be strongly competitive with 8GB Android 4.0 tablet models in the 7- to 9-inch range launched by China-based white-box vendors, including Ainol, Onda, Teclast and Cube, at US$149, the sources pointed out. In addition, the Nexus 7 will bring competitive pressure on tablet PC models of equal specifications offered by Samsung Electronics and China-based vendors Lenovo and Hasee Computer in the China market, the sources indicated.

                                                                                                                          Without the China market, the cumulative global sales volume of Nexus 7 will reach an estimated 3.5 million units at the end of 2012, the sources noted.

                                                                                                                          Google attitude against modified Android may lead to split in Android, say Taiwan handset makers [DIGITIMES Research, Sept 18, 2012]

                                                                                                                          Google’s opposition to Taiwan-based vendor Acer’s launch of the A800, a smartphone based on the Alibaba-developed operating system Aliyun, reflects Google’s attempt to check development of modified Android platforms, but if Google cracks down on this, developers of modified Android platforms may be forced to offer own-brand smartphones or tablets and give up on Android, resulting in an increased split in the adoption of Android, according to Taiwan-based handset supply chain makers.

                                                                                                                          Google explained that Aliyun is incompatible with the Google ecosystem and therefore unable to ensure a consistent user experience among developers, makers and consumers, the sources noted. In response, Alibaba emphasized that Aliyun, while based on open-source Linux as Google is, is not part of the Google ecosystem and therefore is not necessarily compatible with the ecosystem, the sources indicated.

                                                                                                                          Developers of modified Android platforms such as Amazon and Alibaba are not members of the Open Handset Alliance and are Google’s competitors, they need not care about Google’s attitude, the sources pointed out. However, smartphone vendors need to cooperate with Google to offer Android models and therefore have to be concerned about Google’s attitude against modified Android platforms, the sources indicated.

                                                                                                                          If Google cracks down by prohibiting smartphone vendors from adopting modified Android platforms, developers of modified Android platforms, such as Amazon, may skip vendors to directly partner with ODMs to offer their own-brand devices, with such platforms to set up their own ecosystems and thereby become more competitive with Android, the sources pointed out. For some China-based smartphone vendors which have adopted many locally developed applications, because losses arising from forgoing Android may be small, they may shift to a modified Android platforms.

                                                                                                                          Among China-based smartphone vendors, only Huawei Technologies, ZTE, Lenovo, Haier, Oppo and a few others joined the Open Handset Alliance, the sources noted. As China is the largest smartphone market around the world, Google had better pay attention to response from web service operators, smartphone vendors and consumers, the sources pointed out.

                                                                                                                          Commentary: Is it a blessing for Asustek to have Google backing? [DIGITIMES, Nov 7, 2012]

                                                                                                                          Asustek Computer has seen its brand image improve in the US and Japan recently thanks to the launch of dual-branded Nexus 7 in cooperation with Google. Asustek is proud of its product design with regard to the Nexus 7, and also aims to capture the top-vendor ranking in the Android tablet segment. But it remains to be seen whether Asustek will be able to continue to expand its brand image based on the charm of the Nexus 7, since Google has announced its Nexus 10 in conjunction with Samsung Electronics.

                                                                                                                          Google has been backing Asustek in the development of the Nexus 7, offering the Taiwan-based hardware vendor the priority to design-in its latest Android OS and to penetrate into the US tablet market jointly.

                                                                                                                          Due to aggressive pricing set for the Nexus 7, industry watchers have wondered whether the Google-Asustek cooperation would generate profits for Asustek before the production of the 7-inch tablet reaches economies of scale. But for Asustek, the dual-brand marketing was not aiming at generating profits initially but rather improving its brand image, particularly in North America.

                                                                                                                          Optimizing Asustek’s design capability and Quanta Computer’s manufacturing muscle, the Google-Asustek team is able to set the price of the Nexus 7 lower. The low-priced tactics is working as sales of the Nexus 7 have been better than expected, while Asustek’s notebook sales in the US are also improving.

                                                                                                                          Some industry watchers now estimate that total shipments of the Nexus 7 are likely to reach 4-4.2 million units by year-end 2012, while Asustek will also be able to sell more of its own brand notebooks in the US.

                                                                                                                          But the skepticism about the merits of the Google-Asustek tie-up still remains, since Google has showed its intention to control the development of the Android market, optimizing the production of the 7-inch Nexus 7 at Asustek and the 10-inch model at Samsung. Furthermore, the latest market rumors also indicate that Google may also team up with Lenovo for penetrating into the China market.

                                                                                                                          Does Google treat Asustek as a brand partner or an OEM supplier? John Lagerling, director of business development for Android, seems to have an answer to the question.

                                                                                                                          When approached by the New York Times during a recent interview seeking a confirmation of Asustek’s remarks that current shipments of the Nexus 7 have reached as many as one million units a month, Lagerling replied, “We haven’t announced numbers. We typically don’t allow our partners to announce numbers.”

                                                                                                                          The message clearly indicates that Google treats Asustek as an OEM partner, but not a dual-brand partner.

                                                                                                                          In the worst-case scenario, Google may tie up with other vendors such as HTC and Lenovo to develop its next-generation Nexus tablets, which will place Asustek under fire from rivals vying for the Android tablet market.

                                                                                                                          Asustek has estimated its tablet shipments to reach 6.3 million units in 2012, of which the Nexus 7 will account for over four million. In other words, shipments of Asustek’s own brand Transformer and Padfone tablets are limited.

                                                                                                                          Asustek’s competitive advantage will wane further if it fails to win the design-in priority for the next-generation Nexus tablets.


                                                                                                                          The emerging new trends
                                                                                                                          in the premium ecosystem of the Windows devices

                                                                                                                          [Windows] Notebooks

                                                                                                                          Third-generation ultrabooks may be able to achieve 40% of notebook shipments, say players [DIGITIMES, Dec 11, 2012]

                                                                                                                          As Intel failed to achieve its goal of having ultrabooks account for 40% of total notebook shipments with its Ivy Bridge platform, and the proportion only reached about 10%, sources from notebook players believe the goal may be achievable with the upcoming Haswell platform, which is set to launch at the end of second-quarter, 2013.

                                                                                                                          The sources pointed out that compared to Ivy Bridge, Haswell’s stronger performance and cheaper price, plus the expectation that Windows 8 should become more standardized by then, should mean ultrabooks have a chance to account for 40% of total notebook shipments by the end of 2013.

                                                                                                                          Although vendors have released ultra-like notebooks with prices around US$699-899 as alternatives, since these devices lack attractiveness in terms of design and weight, while ultrabook models with specifications similar to the MacBook Air have prices a lot higher than the MacBook Air, most consumers have turned to purchase Apple’s product instead, the sources noted.

                                                                                                                          Digitimes Research: Surface tablet to mainly devour notebook demand in the short term [DIGITIMES Research, Oct 30, 2012]

                                                                                                                          Microsoft’s recently launched own-brand Surface tablets have raised the question of whether Surface will devour consumer demand for tablets or notebooks, or maybe even both. In terms of hardware, Surface is capable of satisfying consumer demand for notebooks, but to replace other tablets, it still requires a more complete app software ecosystem, according to Digitimes Research senior analyst James Wang.

                                                                                                                          Currently, the major difficulty Surface faces in gaining a competitive edge in the tablet market is the lack of a complete app software ecosystem, which means that if Surface can achieve growth in the short term, it will mainly be at the expense of demand for notebook products.

                                                                                                                          To let Surface to become a tablet killer instead of a notebook killer, Microsoft must expand shipments of Windows RT devices to attract application designers to join and establish an ecosystem. However, due to Android’s existence in the market, most notebook vendors are hesitant about joining the Windows RT market.

                                                                                                                          Although IBM, Microsoft and Intel were able to defeat Apple previously with an open platform strategy, due to Android’s existence, Microsoft will be unable to compete against Google in terms of business model and will be forced to head to the same business direction as Apple of having a closed platform with integrated software and hardware, making it even more difficult for Microsoft to build a complimentary ecosystem built on the Windows RT platform.

                                                                                                                          The most popular strategy for platform competition is to offer a free or low-price product or service to attract users and establish an ecosystem to strengthen consumer loyalty, and then seek methods to gain profit. Apple, Google and Amazon’s strategies are all similar – by abandoning profit from some segments including hardware, operating system, software, digital content or advertising, they are able to increase their profits from the remaining segments; however, for Microsoft, since all the above segments belong to different business units, internal struggles and external industry fluctuations will all affect Microsoft’s performance in the future.

                                                                                                                          Digitimes Research: Windows 8 expected to have minimal impact on touch screen notebooks in 2013 [DIGITIMES Research, Nov 13, 2012]

                                                                                                                          Shipment growth for touch screens used in notebooks throughout the fourth quarter of 2012 and most of 2013 will at large not be affected by the release of Windows 8, according to Digitimes Research.

                                                                                                                          Research indicates that consumers are more likely to purchase tablets throughout the time period because of the wide variety of tablet products available, and because of the difference in pricing between tablets and notebooks.

                                                                                                                          The notebook shipment forecast is expected to drop by 192 million units in 2012 to 189 million units in 2013 as a result, as well as due to a lack of recovery in the global economy.

                                                                                                                          However, Digitimes Research pointed out that the expected drop in notebook shipments will also be due to notebook makers increasing the mainstream sizes of their products to 14- and 15-inch, which will thus decrease the amount of panels available for producing notebook products.

                                                                                                                          Despite the shipment drop, the usage rate for touch panels used in notebooks is expected to increase to 10% in 2013, added Digitimes Research.

                                                                                                                          Digitimes Research: Asustek to compete with Acer for top-3 worldwide notebook vendor spot in 2013 [DIGITIMES Research, Nov 15, 2012]

                                                                                                                          Weak Global notebook demand is expected to reshuffle the top-10 notebook brand rankings in 2013, with Lenovo expected to successfully take over Hewlett-Packard’s (HP) leading position. Meanwhile, Asustek Computer, which will rank as the fourth-largest brand vendor worldwide in 2012, will compete against Acer to become the third-largest vendor in 2013.

                                                                                                                          Toshiba, the sixth-largest notebook brand worldwide in 2012 is expected to be surpassed by Apple in 2013.

                                                                                                                          With top brand vendors starting to lose their edge, the four new stars in the notebook brand market – Lenovo, Asustek, Apple and Samsung – are expected to see their combined market share rise from 40.9% in 2012, to 43.2% in 2013.

                                                                                                                          As for upstream ODMs, their contributions to global notebook shipments is expected to grow from around 70% in 2011 to 75% in 2013, while electronic manufacturing service (EMS) providers will step out of the design business and turn to focus mainly on manufacturing.

                                                                                                                          In 2013, Pegatron Technology and Wistron are expected to have the best performance among the top-five makers as the former will benefit from increased orders from Lenovo and Fujitsu, while the later will benefit from its enlarged cooperation with Asustek.


                                                                                                                          Source: Digitimes Research, November 2012

                                                                                                                          HP, Lenovo aim to ship 40 million notebooks each in 2013, say Taiwan makers [DIGITIMES, Nov 19, 2012]

                                                                                                                          Despite a stagnant global notebook market in 2012, Hewlett-Packard (HP) and Lenovo aim to ship 40 million notebooks each in 2013, respectively increasing by 25% and 33.3-37.9% from 2012, according to Taiwan-based supply chain makers.

                                                                                                                          As there have been no signals to indicate an economic rebound in the US and Europe, and demand for Windows 8 notebooks will not take off in the near future because consumers will take time to get accustomed to the new operating system, HP and Lenovo may be too optimistic about their notebooks sales in 2013, the sources analyzed.

                                                                                                                          Among other vendors, Samsung Electronics aims to ship 17 million notebooks and 40 million tablets in 2013, hiking from 2012 by 21.4% and 300% respectively, while Toshiba and Acer have set respective goals of shipping 20 million units, growing from 2012 by 25%, and 28 million units which will rise by 7.7%, the sources noted.

                                                                                                                          Lenovo 3Q12 global PC market share rises to 15.6% [DIGITIMES, Nov 9, 2012]

                                                                                                                          Lenovo saw its total global sales volume of notebooks, desktops and tablets during the third quarter of 2012 increase by 10.3% on year, with corresponding global market share rising to 15.6%, according to the company’s fiscal second-quarter 2012 (July-September) report released on November 8.

                                                                                                                          Lenovo posted sales revenues of US$8.7 billion, gross margin of 12.1%, net operating profit of US$206 million, pre-tax profit of US$204 million, and net profit of US$162 million for the third quarter of 2012.

                                                                                                                          Lenovo reached the largest PC market shares in China, Japan, India, Russia and Germany in the third quarter, and is likely to do so soon in Brazil, the company pointed out.

                                                                                                                          Lenovo shipped 8.5 million handsets in the third quarter, of which seven million were smartphones, the company indicated.

                                                                                                                          Notebook vendors headhunt R&D talent from ODM partners [DIGITIMES, Nov 19, 2012]

                                                                                                                          As notebook brand vendors grow more interested in-house R&D and manufacturing to promote their brand image, sources from the upstream supply chain have seen some notebook vendors starting to headhunt talent from their ODM partners.

                                                                                                                          Sources from notebook ODMs also pointed out that vendors have changed their outsourcing strategies and will check with their chassis and hinge suppliers for component materials and prices, and have their in-house R&D teams complete industrial design before handing the work to ODMs.

                                                                                                                          The sources pointed out that the new strategy is expected to expand in the notebook industry in 2013 and should benefit notebook brand vendors in terms of gaining more control over component costs as well as keeping their product designs confidential.

                                                                                                                          Acer and Hewlett-Packard (HP) have already started adopting the strategy.

                                                                                                                          Acer recently pointed out that the company will increase its R&D investment by 20% each year for the next three years. The company currently has about 1,000 R&D engineers. Lenovo will also continue strengthening its R&D and manufacturing abilities and is set to achieve an in-house production rate of 20% in 2013. Samsung’s in-house production rate is expected to maintain at 85-90% in 2013.

                                                                                                                          Notebook ODMs offer extra services to attract tablet orders [DIGITIMES, Nov 19, 2012]

                                                                                                                          With notebook shipments estimated to only have a single-digit percentage growth on year in 2013, notebook ODMs including Quanta Computer, Compal Electronics and Wistron, are aggressively trying to land tablet orders by offering extra services, according to sources in the upstream supply chain.

                                                                                                                          In addition to offering preferences over price, product specifications and shipment conditions, Compal and Wistron also offer their exclusive touchscreen solutions from related subsidiaries to attract downstream brand vendors to place orders.

                                                                                                                          Meanwhile, Quanta is offering services through its cloud computing expertise and the company reportedly has assisted brand vendors such as Amazon, to build data centers and successfully acquired their tablet orders.

                                                                                                                          In 2013, Compal estimates it will ship 6-8 million tablets, up from two million units in 2012, while Wistron expects its tablet shipments to reach six million units, up from 2.5 million units in 2012, and Quanta with shipments of 14-15 million units, up from 10 million units in 2012.

                                                                                                                          11.6-inch becomes niche-market size for notebooks, say Taiwan makers [DIGITIMES, Nov 15, 2012]

                                                                                                                          As global sales of netbooks have been decreasing due to competition from tablets, 11.6-inch has become niche-market size, according to Taiwan-based notebook supply chain makers.

                                                                                                                          Among notebook screen sizes, 11.6- and 13.3-inch have accounted for a relatively small proportion of total shipments, the sources indicated. However, as Samsung Electronics and Acer have launched inexpensive 11.6-inch Chromebooks and Asustek Computer has launched a 11.6-inch VivoBook touch-control notebook, an increasing number of 11.6-inch notebooks are available for sale, the sources commented.

                                                                                                                          Despite shrinking sales, demand for netbooks still exists, especially in emerging markets, the sources indicated. As most netbooks are have screen sizes of 10-inch, and 10.1-inch is so far the upper limit for typical tablet screen sizes, 11.6-inch notebooks are likely to see considerable demand in the global market, the sources pointed out.

                                                                                                                          Windows 8 may not start a PC replacement trend for enterprises until after 2014 [DIGITIMES, Nov 19, 2012]

                                                                                                                          Demand for Microsoft’s Windows 8 is unlikely to start emerging until 2013 for the consumer market, while for the enterprise market, demand is expected to come at an even later time and may not appear until 2014, according to sources from the PC industry.

                                                                                                                          Although Microsoft is trying to present its latest innovations in Windows 8 to response to consumers’ fluctuating demand, it turns out that consumers need more time to understand the new advantages that the product provides and relatively delay acceptance for the new operating system.

                                                                                                                          Although notebook brand vendors have a high expectation for the year-end holidays this year, their order placement to the upstream supply chain still shows they are cautious about the shipment performance during the traditional peak season.

                                                                                                                          To prompt enterprises to adopt Windows 8, Microsoft has recently noted that the company will stop providing support to Windows XP in April, 2014 with most of the enterprises expected to turn to Windows 7 and some to Windows 8 as stability and necessity are the major considerations for enterprises to make a purchase.

                                                                                                                          Component makers concerned Windows 8 demand may not emerge until 1Q13 [DIGITIMES, Nov 19, 2012]

                                                                                                                          Some upstream component makers have recently started to be concerned that the PC replacement trend expected to be brought on by Windows 8 may not occur in the fourth quarter of 2012 as originally estimated, but will take off in the first quarter of 2013, according to sources from upstream supply chain.

                                                                                                                          Since an operating system usually needs to have serious debugging after launch, the sources believe consumers may hold back their new PC purchases until some time later and their actions would impact demand for Windows 8-based systems in the fourth quarter.

                                                                                                                          However, the component makers are still placing high hopes on the new operating system to bring growth.

                                                                                                                          Notebook ODMs facing uncertainty as brand vendors take over R&D [DIGITIMES, Nov 7, 2012]

                                                                                                                          Acer plans to release a new notebook that is designed and developed in-house, creating an alert among notebook ODMs that brand vendors are trying to become more involved in R&D and the component purchasing of their notebook products which could impact ODMs’ profitability, according to sources from the upstream supply chain.

                                                                                                                          The sources pointed out that Acer’s in-house developed notebook features Windows 8 and a touchscreen display and will be showcased at Consumer Electronics Show (CES) in 2013, at the earliest. Related R&D has already been completed and Acer is currently seeking a partner to conduct assembly.

                                                                                                                          So far, the device is the only in-house developed project that Acer plans to release in the short term and shipments will be limited, indicating that the project is a test for Acer to try out its R&D capabilities, the sources noted.

                                                                                                                          With Lenovo also planning to expand its in-house production by establishing its own plants, if Acer also decides to conduct R&D in house, it could seriously impact the values of ODMs for their clients.

                                                                                                                          However, some ODMs pointed out that they are not concerned about the moves and believe the possibility of the new business model emerging is low since the brand vendors have already outsourced their R&D to ODMs for a long time, and rebooting their R&D capabilities will require a long period of learning.

                                                                                                                          Since Wintel is no longer dominating the PC market, brand vendors will also need to spend R&D resources on ARM and Android, which would seriously increase their burden.

                                                                                                                          At its Windows 8 product launch conference, Acer also revealed that the company will focus more on product R&D and will increase its R&D resources by at least 20% every year.

                                                                                                                          Commentary: Notebook ODMs face uncertainties in tablet market [DIGITIMES, Nov 7, 2012]

                                                                                                                          The rise of tablets and smartphones, plus the economic downturn in the US and Europe, have been causing PC brands such as HP, Dell and Acer to report unsatisfactory sales results. This has been affecting the performance of notebook ODM firms such as Quanta Computer, Compal Electronics and Wistron.
                                                                                                                          ODM firms have been hoping that Windows 8 can stimulate a new wave of demand as consumers switch to new PC models with the Microsoft operating system in 2013. Also, ODM firms have been aggressively fighting over tablet orders as demand in 2013 is likely to reach 200 million units.
                                                                                                                          Quanta Computers targets revenues from non-notebook business to increase to 30% of total revenues in 2012. Compal is looking to ship 6-8 million tablets in 2013, while Wistron aims to achieve its tablet shipment target of 6 million units in 2013.
                                                                                                                          Compal’s and Wistron’s targets of shipping 6-8 million tablets to a market whose total shipments are expected to reach 200 million in 2013 show how difficult it has been for notebook ODMs to obtain tablet orders.
                                                                                                                          One of the reasons is that most of the market has been dominated by Apple while other tablet vendors such as Amazon and Google have yet to see strong sales. Manufacturing orders have been over-concentrated, causing tough competition among firms. As a result, both Quanta and Compal have trimmed their tablet divisions.
                                                                                                                          The ODM firms have been facing uncertainties regarding tablet orders, such as multiple platforms, unstable orders, and different device sizes.
                                                                                                                          Apple’s iOS and Google’s Android platforms continue to dominate the market while Microsoft’s Windows comes in third. Samsung is planning to develop its own platform and HP’s webOS may also become one of the major players. The multiple platforms mean firms need to bet on the right one to maintain orders.
                                                                                                                          As for orders, clients may place large volumes expecting strong sales in the end market. But when sales turn out worse than expected, inventory will build up and orders will be cut. That is the case with Amazon’s Kindle Fire earlier this year. For the tablet segment, manufacturing partners are under much higher pressure from inventory management.
                                                                                                                          Another uncertainty comes from the size of the devices. There are currently products that are 7-, 8.9-, 9.7-, 10.1-, and 11.6-inch. A small difference in size can mean significant differences in revenues.
                                                                                                                          In addition, profits have been unstable. Some tablet brands want to increase market share by resorting to low price and sacrificing their gross margin. This directly affects the profit margin of ODM firms.

                                                                                                                          Taiwan component makers worried about Lenovo plans to hike in-house notebook production [DIGITIMES, Oct 8, 2012]

                                                                                                                          As China-based vendor Lenovo plans to increase in-house production of own-brand notebooks and will therefore procure components instead of letting ODMs release orders, as a result Taiwan-based component makers have felt pressure of losing orders, according to Taiwan-based notebook supply chain makers.

                                                                                                                          In-house production currently accounts for 20-30% of Lenovo’s shipments of notebooks, desktops and other types of PCs, the sources indicated.

                                                                                                                          Lenovo will have LCFC (Hofei) Electronics Technology, its joint venture with Taiwan-based ODM Compal Electronics in Hofei, northern China, start volume production at the end of 2012 or the beginning of 2013, to increase in-house production of notebooks, the sources pointed out. In addition, Lenovo is setting up PC production lines in the US and will do so in Brazil in 2013, with volume production to begin in 2013, the sources noted.

                                                                                                                          In addition to increasing in-house production, Lenovo may set up a supply chain consisting of China-based component makers, the sources pointed out.

                                                                                                                          Compal/Lenovo joint venture expected to output 3-5 million notebooks in 2013 [DIGITIMES, Sept 4, 2012]

                                                                                                                          The notebook manufacturing joint venture of Compal Electronics and Lenovo in Hefei, China was reported by local media to enjoy more than 10 million units of notebook production volume in 2013, but sources from notebook players estimate that the plants may only be able to output around 3-5 million units next year as their yield rates still need improvement, while the related process of shifting orders from other ODMs to the joint venture may also affect the total output volume from the joint venture.

                                                                                                                          The sources pointed out that Compal and Lenovo’s cooperation will create benefits for both firms as Lenovo will be able to directly control the quality of its products, understand the ODM manufacturing process and reduce its cost, while Compal will be able to tighten its relationship with Lenovo and benefit from Lenovo’s orders.

                                                                                                                          The joint venture will start pilot production in October and start mass production in the fourth quarter of 2012 with monthly capacity at around 300,000 units. Initially, the plants will focus on notebook production, but will later add production for all-in-one PC. The local media has reported that the plants will manufacture about one million notebooks in 2012, 13 million units in 2013 and 20 million units in 2014.

                                                                                                                          Currently, Lenovo has 51% stakes in the joint venture with Compal holding the remaining 49% and some market watchers are concerned that Lenovo may shift all its Compal orders to the joint venture, affecting Compal’s own orders and profitability since Compal will need to share its profit with Lenovo for any order received by the joint venture.

                                                                                                                          Commenting on the concerns, Compal president Ray Chen has noted that the two firms have already signed a contract to avoid from this type of situation, but he refused to reveal further details of the contract.

                                                                                                                          In 2013, sources from the supply chain pointed out that Lenovo will still maintain about 30% of notebook shipments being in-house manufactured and will outsource the remaining 70% with the orders to the joint venture considered as outsourcing.

                                                                                                                          Compal Electronics lays off tablet R&D, testing personnel [DIGITIMES, Oct 23, 2012]

                                                                                                                          Taiwan-based notebook and tablet ODM Compal Electronics has laid off more than 100 employees responsible for tablet R&D and testing.

                                                                                                                          Compal confirmed the layoffs, explaining that the company recruited staff members to meet growing orders for tablets in 2011 but orders received have been far short of expectations and therefore it is necessary to adjust manpower. Although Compal stressed that only one wave of layoffs is planned, internal sources indicated that there may be more.

                                                                                                                          Compal’s staff cuts signal that tablet vendors have encountered difficulties and notebook supply chains are under pressure, industry sources pointed out. For tablet vendors, the iPad has dominated the high-end segment while competition in among entry-level models, which includes the Amazon Kindle Fire series and Google Nexus 7, is already intensive, the sources analyzed. In addition, tablet vendors originally rested their hopes on Windows 8 models, but Microsoft’s launch of the Windows RT Surface at US$499, and Apple’s planned launch of the iPad mini will cut into their competitive advantages, the sources said.

                                                                                                                          Compal’s tablet clients are mainly Acer and Lenovo, the sources indicated.

                                                                                                                          In September 2011, Quanta Computer laid off over 1,000 production line workers due to a large decrease in orders for tablets from RIM, and in October 2011 Inventec laid off 432 employees because Hewlett-Packard reduced its tablet orders.

                                                                                                                          Lenovo to launch a table-shaped all-in-one PC [DIGITIMES, Nov 5, 2012]

                                                                                                                          Lenovo plans to launch a Windows 8-based all-in-one PC that features a similar industrial design as Microsoft’s Surface [on June 18, 2012, a Microsoft tablet of the same name was unveiled, the original Microsoft Surface was rebranded as Microsoft PixelSense, see the About Microsoft PixelSense [Microsoft PixelSense press page, June 18, 2012]], a table-shaped PC. The machine features four legs and when the display is laid flat, it becomes like a table and can be used by multiple users simultaneously, according to sources from the upstream supply chain.

                                                                                                                          The all-in-one PC features a 27-inch display with initial shipments of 20,000 units.

                                                                                                                          In addition to Lenovo, Acer, Asustek Computer and Hewlett-Packard (HP) all plan to launch new all-in-one PCs with some models will appear as soon as the end of 2012.

                                                                                                                          At Computex 2012, Asustek chairman Jonney Shih demonstrated an all-in-one PC product under its Transformer series and the all-in-one PC can be detached and become an 18.4-inch tablet, supporting both Windows 8 and Android; however, the product, so far, still has not yet been mass produced.

                                                                                                                          Meanwhile, Acer has also launched two Windows 8-based all-in-one PCs with special designed hinge and Lenovo also displayed its IdeaCentre A720 with a function to lay out flat.

                                                                                                                          In 2012, all-in-one PC shipments are expected to reach 16.4 million units, up 20% from 13.7 million units in 2011, according to figures from IHS iSuppli, while IDC also forecast that the all-in-one PC shipments will reach 17 million units in 2013.


                                                                                                                          [Windows] Smartphones

                                                                                                                          FIH reportedly lands handset orders from Microsoft and Amazon [DIGITIMES, Nov 26, 2012]

                                                                                                                          Foxconn International Holding (FIH) has reportedly landed handset orders from Microsoft and Amazon and is set to launch the devices in mid-2013, according to sources from the upstream supply chain. However, both the parent company Foxconn Electronics (Hon Hai Precision Industry) and FIH declined to comment about clients or orders.

                                                                                                                          Foxconn is the major manufacturer of Apple’s iPhone products, while its subsidiary FIH has clients including Nokia, Sony, Lenovo, Huawei and ZTE.

                                                                                                                          Microsoft’s own-brand handset will adopt its Windows Phone 8 operating system, the sources noted.

                                                                                                                          The sources pointed out that Microsoft and Amazon’s own-brand handsets will only have a limited shipment volume initially and may become a new business model for the manufacturers in the future.

                                                                                                                          In addition to provide manufacturing services to first-tier brand vendors, FIH also supplies white-box handsets to regional vendors in China, Europe and the US.

                                                                                                                          Taiwan IC design houses to benefit from Samsung aggressive product roadmaps in 2013 [DIGITIMES, Dec 7, 2012]

                                                                                                                          … the Korea-based vendor is reportedly set to adopt a more aggressive ‘shotgun’ strategy wherein many models will be created in the smartphone, tablet, notebook, LCD TV and DSC sectors that cover a wide range of market segments in 2013, according to industry sources.

                                                                                                                          In the smartphone sector, Samsung will move into the Windows Phone platform and roll out models targeting the entry-level, mid-range and high-end segments simultaneously, in an attempt to duplicate its success in the Android space, the sources revealed.

                                                                                                                          Digitimes Research: Android phones to account for 70% of global smartphone market in 2013 [DIGITIMES Research, Dec 6, 2012]

                                                                                                                          Shipments of Windows Phones, including 7.x and 8.x models, will grow 150% on year to 52.5 million units in 2013 for a 6.1% share

                                                                                                                          Worldwide Mobile Phone Growth Expected to Drop to 1.4% in 2012 Despite Continued Growth Of Smartphones, According to IDC [IDC press release, Nov 1, 2012]

                                                                                                                          For the year, smartphone shipments are forecast to grow 45.1% year over year to 717.5 million units.

                                                                                                                          Windows Phone will battle with BlackBerry for the number three spot in 2013, but will gain further clarity in the years that follow. Windows Phone will build on the progress it made in 2012, with Nokia establishing its presence and HTC solidly jumping back into the race. Moreover, contributions by Samsung, ZTE, and Huawei will help grow its footprint. With more vendors releasing more devices aimed at multiple segments, sales associates will be better positioned to tell a compelling Windows Phone story and to explain the value of Windows Phone’s differentiated experience compared to market leaders Android and iOS.

                                                                                                                          Top Smartphone Operating Systems, Forecast Market Share and CAGR, 2012–2016

                                                                                                                          Smartphone OS

                                                                                                                          2012 Market Share

                                                                                                                          2016 Market Share

                                                                                                                          CAGR 2012 – 2016 (%)

                                                                                                                          Windows Phone

                                                                                                                          2.6%

                                                                                                                          11.4%

                                                                                                                          71.3%

                                                                                                                          Total

                                                                                                                          100.0%

                                                                                                                          100.0%

                                                                                                                          18.3%

                                                                                                                          Source: IDC Worldwide Mobile Phone Tracker, December 3, 2012

                                                                                                                          The previous forecasts taken together mean:
                                                                                                                          – IDC: 18.7 million Window Phones in 2012 (calculated as 2.6% of 717.5 million units)
                                                                                                                          – IDC: 161 million Window Phones in 2016 (with 71.3% CAGR of that 18.7 million)
                                                                                                                          – DIGITIMES Research + IDC: 46.6 million Window Phones in 2013 (150% growth predidicted for WP in 2013 by DIGITIMES Research over 18.7 million given by IDC for 2012)
                                                                                                                          which makes DIGITIMES Research’s forecast of 52.5 million Window Phones in 2013 quite feasible for me, at least for three reasons:

                                                                                                                          1. Samsung aggressive move into the Windows Phone platform as noted above by DIGITIMES.
                                                                                                                          2. The kind of breakthrough for the WP8 Lumias, and WP8 in general, especially against iPhone 5, as described by my recent blog entries ragarding:

                                                                                                                            High-end smartphones state-of-the-art:
                                                                                                                            Lumia 920 vs. iPhone 5 (and vs. Android, Galaxy S3, HTC One X+) [Dec 7, 2012]
                                                                                                                            Windows Phone 8 vs. Android 4.1 and 4.2 [Dec 6, 2012]

                                                                                                                          3. The additional, not yet recognized end-user and business partner advantages as described in all detail in my:
                                                                                                                            – Lead post: Marko Ahtisaari from Nokia and Steven Guggenheimer from Microsoft on the Internet of Things day of LeWeb Paris’12 [Nov 6, 2012]

                                                                                                                          Uncertain Windows 8 future may relatively affect Windows Phone 8 [DIGITIMES, Nov 5, 2012]

                                                                                                                          Although Microsoft has been aggressive promoting its new Windows 8 operating system (OS), a weak global economy has the notebook supply chain remaining conservative about the OS’ contribution to their performance in the fourth quarter and the OS’ uncertain future may relatively affect the software giant’s plan for its Windows Phone 8 platform, according to sources from the upstream supply chain.

                                                                                                                          Microsoft’s aggressive promotion of Windows 8 touchscreen functions is meant to blur the boundaries between smartphone, tablet, notebook and desktop through a similar usage experience, while expanding its advantages in the IT industry through a unified OS platform structure and gain some benefits from the smartphone market, where the company is currently still behind.

                                                                                                                          Microsoft originally hoped to strengthen its Windows Phone 8 penetration through a PC replacement trend brought by Windows 8, but since the OS may not trigger a replacement trend as expected, while Microsoft’s smartphone partners such as High Tech Computer (HTC) and Nokia are also conservative about their Windows Phone 8-based product shipments, the sources believe Microsoft’s plans for its operating systems will be further delayed.

                                                                                                                          Microsoft’s launch of own-brand smartphones in 2013?
                                                                                                                          It is based on rumors that Microsoft Is Reportedly Testing Its Own Smartphone [TechCrunch, Nov 2, 2012]

                                                                                                                          First it built the Surface, and now Microsoft is said to be working on another new hardware product, this time a smartphone. That’s according to a new report from the Wall Street Journal, which says Microsoft is currently working with Asian component suppliers on its own handset design, though it isn’t yet clear whether or not the device will ever go into mass production.
                                                                                                                          Details about what a Microsoft smartphone would look like are scarce, but the report does say that the version being currently tested has a screen between four and five inches, which is in keeping with recent designs from Apple and Android handset OEMs. It’s also probably pretty reasonable to assume that any device Microsoft puts out now will have more in common with the flagship phones from its hardware partners for Windows Phone 8, which include Nokia and HTC, than with its previous Kin smartphones. The teen-focused Kin carried Microsoft’s branding, but was made by Sharp, and lasted only 48 days on the market.
                                                                                                                          Microsoft had made a more dedicated approach to creating its own hardware with the Surface, albeit to mixed reviews. And as the WSJ reports, it’s also been more aggressive about enforcing hardware standards with its partners in recent years, both in terms of the look and makeup of Windows-certified PCs and in minimum specs for partner mobile handsets. That Microsoft could be considering an approach like Apple’s, wherein it would sell both hardware and software and control all aspects of the ecosystem, definitely seems more plausible than it has in the past.
                                                                                                                          Also, rumors have been building that Microsoft is working on a smartphone since back in June, thanks to Nomura analyst Rick Sherlund, who said that Microsoft was already working with a “contract manufacturer” to create their own Windows Phone 8 mobile device. Then at the beginning of October, Boy Genius Report received a tip that Microsoft was indeed working on its own smartphone, that would sell alongside and compete with partner OEM devices like the HTC 8X and Nokia Lumia 920. The company has shown it’s willing to go there with the Surface, and Nokia CEO Stephen Elop even said on a conference call two weeks ago that a Microsoft-made device would be a boost to the entire Windows Phone 8 device sales ecosystem.
                                                                                                                          Even if it didn’t become a top seller in and of itself, a Microsoft-branded smartphone could offer Windows Phone what the Nexus line provides Android: a place to show off the latest and greatest software, experiment and build hype around the platform. I think the biggest risk would be in potentially alienating hardware partners, but so far the Surface doesn’t seem to have dampened the enthusiasm of Windows PC OEMs all that much, and Elop has already declared his support. If nothing else, a Microsoft-made Windows Phone 8 smartphone would be interesting, and generating interest is maybe the key ingredient to Microsoft’s future mobile success.

                                                                                                                          Why Microsoft believes latest-gen Windows Phones are ‘killer hardware’ [TechRadar, Nov 18, 2012]

                                                                                                                          INTERVIEW We talk to the head of Windows Phone: Terry Myerson

                                                                                                                          For the last year, Nokia has been the poster child for Windows Phone but recently HTC and Samsung have seemed more in favour.

                                                                                                                          Samsung announced their Windows Phone 8 handsets first and the HTC 8x was handed out to enthusiasts at the Windows Phone 8 launch.

                                                                                                                          We asked corporate vice president of the Windows Phone Division Terry Myerson to explain how Microsoft juggles partnerships with rival phone makers and how much influence manufacturers have on the design of Windows Phone.

                                                                                                                          “We work in different ways with each of them on the engineering and on the marketing,” Myerson told TechRadar.

                                                                                                                          Nokia gets priority when it comes to development because of the commitment it’s made to Windows Phone; “Nokia is exclusive to Windows Phone and we definitely, on the engineering side, prioritise platform work to support their differentiation coming through.”

                                                                                                                          Despite the restrictions it puts on handset specs, Microsoft doesn’t want to see the same handset from every phone maker. “Our goal is that Windows Phone is a platform that our partner differentiation can shine through on.

                                                                                                                          We do spend time planning with HTC and Samsung, sitting down with them and collaborating on what a product is where their differentiation elegantly coexists with Windows Phone and what we bring. There are different cultures to each of these companies and they all have their own plans for how they want to bring their technologies to market.”

                                                                                                                          “The best devices”

                                                                                                                          He’s predictably enthusiastic about the handsets that come out of the collaboration with all three partners. “I think the result is the most fantastic killer hardware we’ve ever had, not only for the windows ecosystem – I think these devices are better than any device – well, I they’re the best devices. They’re colourful, they’re beautiful, they’re thin, amazing cameras…”

                                                                                                                          Some of what you see in Windows Phone 8 handsets is Microsoft’s idea, some comes from the OEMs. “In the case of wireless charging, that was definitely Nokia’s initiative to say they wanted that; they had technologies inside their labs, they took the initiative to put forward a number of engineering designs. There were definitely platform modifications we made to support their innovation but Nokia led on that. All the credit goes to them.”

                                                                                                                          “The Wallet feature is a place where the Windows Phone team thought about how to use NFC. Roaming content though SkyDrive, encryption; these are all features coming from Microsoft. But the wide angle camera that HTC did with Skype in mind, Nokia’s wireless charging – those are innovations coming from our hardware partners.”

                                                                                                                          Although app developers get far more access to the platform in Windows Phone 8, Microsoft is still keeping some control and treading a fine line between the free for all of Android that Google is increasingly trying to rein in and the central control of the Apple ecosystem.

                                                                                                                          We like to think of it as the structured ecosystem that allows the differentiation of partners to shine though on our platform, at the same time providing consumers the confidence that we will protect their privacy, keep malware off the platform, provide a consistently familiar user experience, and providing developers confidence they can write apps once and target our platforms. So there is more structure and structure at times can feel constraining but also there are benefits to it. It’s helpful that everyone drives on the same side of the road, for example…”

                                                                                                                          Why was the SDK so hard to get?

                                                                                                                          Myerson is unapologetic about not making the Windows Phone 8 SDK widely available before the launch (when most developers didn’t have phones to work with) and concentrating instead of key developers to get big-name apps; 46 of the top-selling 50 apps from other phones will be on Windows Phone 8 (and yes, he knows who the missing four are and is working on changing their minds).

                                                                                                                          The sheer number of apps in the Store is far from the most important thing. “It’s a balance; definitely there is magic that occurs in that long tail of apps, [you get some] delightful things… but it is also true that working with these incredibly popular mobile apps is important as well.”

                                                                                                                          Windows Phone 8 is the future and it’s getting all the marketing love at the moment, but Windows Phone 7 is far from dead. Myerson assured us. “We’re going to have more to say about 7.8 in the coming weeks,” he promised.

                                                                                                                          I would expect both platforms to exist for quite some time, from a global point of view. Windows Phone 7.8 devices will span much lower price points than Windows Phone 8 devices, initially, and given the application compatibility across the platforms, it makes the ecosystem stronger to have more device and more price points. We value every 7 and 7.8 customer we have; we’ll continue to work for them as well but it is true that Windows Phone 8 is our future platform.”

                                                                                                                          Of course that only matters if Microsoft can finally start selling Windows Phone devices in significant numbers. Just as Steve Ballmer promised you wouldn’t be able to escape Windows 8 ads, Myerson promises what sounds like an advertising blitz, focussing on Windows Phone rather than on the handset makers.

                                                                                                                          This holiday it’s very important to us to get out there and tell the Windows Phone story: how we do have this amazingly unique point of view, the smartphone that can be so personal and reflect your interests and the people in your life. Telling that in the most pure sense without confusing them which brands we’re talking about is important. We need consumers to understand and love Windows Phone.”

                                                                                                                          More advertising money

                                                                                                                          Certainly Microsoft has promised to advertise Windows Phone better before, without much to show for it, and Myerson seems happy to admit it.

                                                                                                                          “We weren’t out there with same experience as Windows, even we though shared the same brand; we didn’t have all the right teamwork in place with our partners on the go to market, and we were not advertising the product. We were not out there telling the story to consumers – and that changes now. We will start telling our story. We are going to go out there and advertise the product and tell people.”

                                                                                                                          What’s different now? In a word, Windows 8 – but also more operator support. “It’s a special time. We have a great product that expresses this unique differentiated point of view, that we are the most personal smartphone, we’ve got killer hardware from partners and we have a great partnership with the mobile operators.

                                                                                                                          “The fact that they’ve ranged so many phones at such great price points is fantastic. And of course having Windows out there at the same time is exciting; making the experience familiar to users and being the best phone for Windows; if you’re a Windows user, this is the phone for you.”

                                                                                                                          Nokia HERE Maps for everything, for FireFox OS in a strategic partnership with Mozilla

                                                                                                                          A highly recommended prerequisite reading: The Where Platform from Nokia: a company move to taking data as a raw material to build products [April 7, 2012]

                                                                                                                          So, while Microsoft was struggling today with Steven Sinofsky, ex Microsoft: The victim of an extremely complex web of the “western world” high-tech interests [this same blog, Nov 13, 2012] Nokia made a big leap forward on its 2 year’s to counter the lethal dangers of Be aware of ZTE et al. and white-box (Shanzhai) vendors: Wake up call now for Nokia, soon for Microsoft, Intel, RIM and even Apple! [Feb 21, 2011] phenomenon it recognized earlier than every other high-tech company in the “western world”.

                                                                                                                          Below there is the collection of the information made public today which shows quite well that in mid-term they could even become the most successful “western” high-tech company to overcome the tide raising from China towards the legacy high-tech companies. Their strategic partnership with Mozilla for the FireFox OS is even showing that they are not stupid at all to put all their eggs in the Windows Phone bag (albeit it is publicly only to bring HERE to that OS). They have already a very well positioned Asha and Asha Touch product line in the lower end (see With Asha Touch starting at $83 and Lumia at $186 Nokia targeting the entry-level and low-end smartphone markets [this same blog, Nov 1, 2012]), and now with FireFox OS they could have a 3d one positioned for what they called “taking advantage of future technology disruptions and trends” (see Nokia under transition (as reported by the company) [this same blog, March 11, 2012]).

                                                                                                                          Nokia redefines digital map landscape by introducing HERE as new brand for its location and mapping service [Nokia press release, Nov 13, 2012]

                                                                                                                          Nokia extends its service across devices and operating systems

                                                                                                                          Nokia announces new partnership with Mozilla and planned acquisition of 3D capture company, earthmine

                                                                                                                          San Francisco, California – Today Nokia introduced HERE, the first location cloud to deliver the world’s best maps and location experiences across multiple screens and operating systems. With the new brand, HERE, Nokia aims to inspire a new generation of location services and devices that make the mobile experience more personally significant for people everywhere.

                                                                                                                          “People want great maps, and with HERE we can bring together Nokia’s location offering to deliver people a better way to explore, discover and share their world,” said Nokia President and CEO Stephen Elop. “Additionally, with HERE we can extend our 20 years of location expertise to new devices and operating systems that reach beyond Nokia. As a result, we believe that more people benefit from and contribute to our leading mapping and location service.”

                                                                                                                          Pushing location beyond Nokia
                                                                                                                          To further extend its location services, Nokia is launching a maps application for iOS under the HERE brand. Based on HTML5, it will include offline capabilities, voice-guided walk navigation, and public transport directions. The application is scheduled to be available for free download from Apple’s App Store in the coming weeks.

                                                                                                                          Nokia further announced a strategic partnership with Mozilla to bring new location experiences to the Firefox OS. Nokia plans to debut a mobile Web version of HERE Maps for the new Firefox OS next year. The companies are working together to give people the best mapping experience on Firefox OS.

                                                                                                                          “Mozilla is a leader in HTML5, building the Web as a platform for developing compelling applications, and location is a key part of that platform,” said Jay Sullivan, Mozilla Vice President of Products. “We are excited to work with Nokia as the combination of Firefox OS and HERE’s location platform provides rich possibilities for mobile application developers to create amazing experiences for users.”

                                                                                                                          Nokia also demonstrated an Android OS-based reference application and announced plans for the availability of a HERE SDK for Android OEMs in early 2013. This is aimed at enabling partners to create location-based applications for Android devices with Nokia’s leading content.

                                                                                                                          Innovating modern mapmaking
                                                                                                                          To advance the 3D capabilities of HERE, Nokia announced the planned acquisition of Berkeley, Calif. company earthmine. The company’s reality capture and processing technologies will become integral parts of HERE’s 3D map making capabilities.   

                                                                                                                          Nokia expects the transaction to close by the end of 2012.

                                                                                                                          “Maps are hard to get right – but location is revolutionizing how we use technology to engage with the real world,” said Michael Halbherr, Executive Vice President of Location & Commerce and responsible for the HERE brand. “That’s why we have been investing and will continue to invest in building the world’s most powerful location offering, one that is unlike anything in the market today.”

                                                                                                                          Using LiveSight(TM) to see more of the real world
                                                                                                                          As part of its announcement, Nokia introduced LiveSight(TM), a technology based on a highly accurate, 3D map of the world.  LiveSight(TM) provides the most precise and intuitive augmented reality experience and uses a phone’s camera viewfinder to make discovering the world as easy as lifting up a phone. Nokia City Lens, which was developed exclusively for Nokia Lumia devices, is the first application providing a LiveSight-enabled experience.

                                                                                                                          “Establishing a new brand is the right move for Nokia in the map and location business.  Nokia’s assets in this space are world class. We believe mapping and location will be increasingly important to developing next generation devices and services across a wide array of segments,” said Crawford Del Prete, Executive Vice President and Head of worldwide research at IDC.

                                                                                                                          iOS, Android, Firefox OS: HERE is available everywhere [Nokia Conversations, Nov 13, 2012]

                                                                                                                          Today’s announcement means that we’re bringing HERE to all devices and operating systems to give more people, with any type of device the ability to use the best location platform in the world. This openness is what sets HERE apart from other digital maps in the world. And with HERE, location will set Nokia apart.

                                                                                                                          Introducing HERE Maps for iOS

                                                                                                                          We’re making HERE Maps available in the Apple App Store: iOS users can more easily access our rich mapping experience with a single tap on their home screen. The app has been developed with the same HTML5 technology that powers the mobile web and is therefore very versatile and optimized for mobile use.

                                                                                                                          With HERE Maps for iOS you can get smart directions to navigate your way around town, whether you’re driving, walking or taking public transportation, so let’s have a closer look at all the features available.

                                                                                                                          What is HERE Maps for iOS?

                                                                                                                          With HERE Maps for iOS you can save an area to your device, so you can explore even without data coverage. You can save an area in advance and use it later at up to 4 different zoom levels.

                                                                                                                          Since you don’t walk on the same routes you drive, HERE Maps for iOS gives you dedicated voice guided turn-by-turn walk navigation that guides you along the best route for walking there: pedestrian routes, through parks, down alleyways, and more. With voice navigation, you will spend less time looking at your phone and more time enjoying getting there.

                                                                                                                          Because HERE Maps for iOS has been designed for urban use, the voice navigation only works for journeys on foot. However, there’s also public transportation and driving directions in over 500 cities and you can make transfers easily with detailed public transport connections. With live traffic information and incident notices, you know where the traffic is, so you can spend less time driving there and more time being there.

                                                                                                                          With HERE Maps for iOS you can organize favourite places by categories such as “Hip Bars” or “Cheap Eats” and sync them withHERE.com so you can build your personal map on the go and easily find them again.

                                                                                                                          For instance, you can add a place to your favourites on your phone and post a review when you get home: wherever you are, you’re always in sync. This feature is very easy to use because you can sign-on with your Nokia or Facebook accounts.

                                                                                                                          On an iPad you can also see the top 25 places nearby at a glance: HERE Maps automatically displays up to 25 best places near you in a scroll window at the bottom of the screen. Simply tap a place and get all the details or scroll down and filter your results by category (shopping, going out, sights and more).

                                                                                                                          Whether you’re making plans for later or just want to share a great new find, HERE.com lets you share locations with just a tap, including how to get there, with a simple link sent over SMS, email, or social networks.

                                                                                                                          Introducing HERE Maps for Firefox OS

                                                                                                                          Because one of the main attributes of HERE is its openness, we’re also partnering with Mozilla to create new location experiences for Firefox OS. In the coming months, we will introduce HERE Maps for Firefox OS and we’ll continue working, together with Mozilla, to give people the best mapping experience on the OS.

                                                                                                                          One more thing… HERE Android API

                                                                                                                          HERE Maps for iOS and Firefox OS are not our only effort to give everyone the ability to use the best location platform in the world. Today, we’re also introducing HERE Maps API for Android, which will made available to partners in the next months.

                                                                                                                          In apps built with the HERE Android API, users will be able to interact with extruded 3D buildings, search for specific buildings and preview their routes in detail to more realistically show where they’re going.

                                                                                                                          To showcase what partners can offer when they build Android apps with our HERE API, we have prepared a reference app in the following video.

                                                                                                                          Read more about HERE for iOS, Android and Firefox OS here:http://conversations.nokia.com/?p=103078 In apps built with the HERE Android API, users will be able to interact with extruded 3D buildings, search for specific buildings and preview their routes in detail to more realistically show where they’re going. To showcase what partners can offer when they build Android apps with our HERE API, we have prepared a reference app in this video.

                                                                                                                          Disclaimer: this is not an actual app that we are releasing in the Google Play Store, it is just a reference app we have developed to showcase which features we are offering to partners for their location-based Android apps.

                                                                                                                          Follow us on Twitter: @heremaps.

                                                                                                                          HERE: the next generation of location services [Nokia Conversations, Nov 13, 2012]

                                                                                                                          Mapping and location-based services are integral to Nokia’s future and a key way that we stand out from the crowd.

                                                                                                                          Nokia’s commitment to building the leading location offering is demonstrated every day around the world in its rich set of location-based apps like Nokia Drive, Nokia Transport, Nokia Maps, Nokia Pulse and Nokia City Lens. Quite literally, Nokia helps people navigate their world. But this is only the tip of the iceberg: as a result of our acquisition of NAVTEQ and other mapping industry players, Nokia was the first to build the world’s most accurate and comprehensive global digital map by sending teams to verify every street in every city.

                                                                                                                          The next step forward – sensing our world

                                                                                                                          We can do more with our location heritage and mapping expertise, and go beyond a digital version of the paper map. Maps can be more than getting a person from point A to point B. They should bring places to life and inspire us to sense our world.

                                                                                                                          This is why today we are introducing HERE, the world’s first location cloud that delivers a location platform, location content and location apps across any screen and any operating system.

                                                                                                                          Just like digital cameras created possibilities that were unthinkable with analog photography, today’s digital mapping has amazing potential to grow into what we call computational cartography, the ability to produce maps on-demand and tailored to their actual use cases. Today’s digital maps are generic – i.e. always the same, irrespective of the content they visualize. We also believe that this game-changing evolution in mapmaking should be available to more businesses and more people around the world – it should expand beyond cars and beyond Nokia devices.

                                                                                                                          “Location based experiences need to evolve from an app-centric approach towards a holistic customer experience; consumers want services that are optimized for multi-mobile device use and available on demand, everywhere”, said Thilo Koslowski, VP and Lead Automotive Analyst, Gartner.

                                                                                                                          What does it mean?

                                                                                                                          Nokia Lumia and HERE are naturally made for each other, providing the best location experience on a smartphone, but we aren’t reserving HERE just for Windows Phone. Instead, we are opening it up to all devices and operating systems to give everyone, with any type of device, the possibility to recognize and the ability to use the best location platform in the world. This openness is what sets HERE apart from other digital maps in the world. And with HERE, location will be an even more powerful differentiation for Nokia.

                                                                                                                          We’re making HERE Maps available for iOS in the Apple App Store as a HTML5-based app and introducing HERE Maps API for Android. We will also introduce HERE Maps for Firefox OS and we’ll continue working, together with Mozilla, to give people the best mapping experience on the OS.

                                                                                                                          We are introducing LiveSight, a technology based on a highly accurate, 3D map of the world, which provides the most precise and intuitive augmented reality experience. Nokia City Lens, developed exclusively for Nokia Lumia devices, is the first application using LiveSight.

                                                                                                                          Our industrial collection of data is about to leap a chasm with the planned acquisition of earthmine. earthmine offers a complete solution for collecting, processing, managing, and hosting 3D street level imagery.

                                                                                                                          So stay tuned. There is so much more to say in the coming hours and days and the long-term, and we’re looking forward to your continued feedback as we move ahead. You can also follow us on Twitter: @heremaps.

                                                                                                                          LiveSight: immersive experiences you can act on [Nokia Conversations, Nov 13, 2012]

                                                                                                                          Read more about LiveSight at http://conversations.nokia.com/?p=103081 After type pads, touchscreens and voice recognition, we want sight recognition to be another standard way to interact with the world around you. But it’s not only about sight recognition; it’s also about live map information. In one word, it’s… LiveSight. Nokia City Lens, developed exclusively for Nokia Lumia devices, is the first application providing a LiveSight-enabled experience.

                                                                                                                            Nokia City Lens, exclusively available for Nokia Lumia, is one of our most-talked-about apps and we’re very proud of it. Using the phone’s camera viewfinder, Nokia City Lens provides an augmented reality overlay view of buildings and instantly highlights places of interest. Nokia City Lens is basically turning sight into the next interface for searching the world around you. Although Nokia City Lens is powered by a complex system of collection technologies, it’s very easy to use. After all, what could be simpler to use than sight? It’s the most human sense for sensing and exploring the world.

                                                                                                                            After type pads, touchscreens and voice recognition, we want sight recognition to be another standard way to interact with the world around you. But it’s not only about sight recognition; it’s also aboutlive map information. In one word, it’s… LiveSight. Nokia City Lens, developed exclusively for Nokia Lumia devices, is the first application providing a LiveSight-enabled experience.

                                                                                                                            LiveSight is a collection of mechanisms:

                                                                                                                            • 3D sight interface: buildings are detected by our collection technologies with high accuracy and feeling of depth

                                                                                                                            • Line of sight: with the line of sight view, only POIs in sight are displayed

                                                                                                                            • Freeze frame: save a live view to inspect the city without having to hold the camera pointed at the target

                                                                                                                            • Building directory: click on a building to see what is inside

                                                                                                                              This new technology is going to address everyday actions like finding a store indoor, finding your friends in a crowd or your parked car. Yes, with LiveSight you can create a place for your parked car.

                                                                                                                              “We’ve all been there — trying get to where we are going by following that dot on our phones; you take a few steps in one direction to see if the dot moves where it should; with LiveSight you can orient yourself by simply lifting up your phone and looking through the camera view finder and find your destination whether it is right in front of you or three blocks away” said Peter Skillman, head of UX Design for HERE.

                                                                                                                              You can also follow us on Twitter: @heremaps.

                                                                                                                              Innovating modern map making with earthmine [Nokia Conversations, Nov 13, 2012]

                                                                                                                              Because we know that maps are hard to get right, we have been investing and will continue to invest time and money to build the world’s most powerful location offering, one that is unlike anything in the market today. Content creation in cartography is a continuous quest to make maps more precise and to map the whole world. We useinnovative collection technologies (e.g. LiDAR, cameras, etc.) and a team of local experts to create close to perfect digital copies of reality.

                                                                                                                              Innovating map making

                                                                                                                              Map makers today have a vast array of data at their disposal and digital technology has made the map accessible to everyone. But at their core today’s digital maps are little changed from paper maps: they are static because they represent the world at the moment the data is captured and they still require a lot of work and imagination to get the most out of them.

                                                                                                                              We believe, in fact, that location services are revolutionizing how we use technology to engage with the real world. This is why we are innovating every aspect of what a cartographer does: we use data that’s never been incorporated into maps and then make sense of it in a way that transforms the experience. We are innovating what we capture, the way we capture it, and how we model to give rise to a new generation of user experiences.

                                                                                                                              earthmine acquisition

                                                                                                                              Today our industrial collection of data is about to leap a chasm with the planned acquisition of earthmine.

                                                                                                                              earthmine offers a complete solution for collecting, processing, managing, and hosting 3D street level imagery. This will add competitive advantages and increased differentiation to HERE‘s Location Content and Location Platform, sustaining competitiveness in B2B (e.g. data for in-car navigation systems) and driving highly engaging user experiences.

                                                                                                                              earthmine has developed the first truly scalable 3D mobile mapping solution, enabling collection of entire metropolitan areas, states or countries from tens or hundreds of thousands of linear miles of roadway. By combining high fidelity and resolution panoramic imagery with 3D data for every pixel in every image, the result is quantifiably more than just pretty pictures.

                                                                                                                              earthmine is going to be a major asset in our arsenal of collection tools in that it complements our internal technologies with capabilities that enhance what we are already doing. The most obvious is the sensor design and integration that can be seen on a earthmine car, which enables mobile mapping and is massively scalable. And when we collect with earthmine we get the same wealth of visual and other sensor data that enables us achieve our mapmaking automation goals. By next year, with earthmine we will expand the number of countries to 31 in which we are automatically collecting 3D information. Additionally, earthmine brings advanced image processing capability and geographic information system tools that make the processed imagery and data readily available enabling us to move faster than we otherwise could.

                                                                                                                              Follow us on Twitter: @heremaps.

                                                                                                                              I will add to that the following eartmine case study video as a latest one:
                                                                                                                              earthmine Helps 911 Dispatchers [earthmine YouTube channel, June 19, 2012]

                                                                                                                              earthmine Helps 911 Dispatchers in Columbia County – Courtesy of WJBF News Channel 6

                                                                                                                              Fueling the future of digital maps [Nokia Conversations, Oct 25, 2012]

                                                                                                                              NAVTEQ True utilizes a unique combination of technologies to create a 3D model of the real world. We combine rotating LIDAR, positioning sensors, panoramic cameras, and high res multi view cameras to capture real world dimension, fueling more realistic and interactive location experiences for you.

                                                                                                                                At the heart of any location experience is the understanding of where you are and what’s around you, an awareness often achieved by using a map. While today’s digital maps are much more advanced than the maps of just 20 years ago, they will continue to get more accurate and comprehensive, simplifying how we navigate and interact with an ever-changing world.

                                                                                                                                So, how do we build a high quality map and keep it fresh? At the core of the process is our innovative collection technologies blended with a team of local experts.

                                                                                                                                Using their intimate knowledge of local road networks and surrounding areas, these experts, who drive millions of roadways each year, use specially equipped vehicles to collect and verify location data.

                                                                                                                                Depending on local conditions, product requirements and a variety of other factors, the local drivers use distinct collection technology, ranging from highly mobile pedestrian collection tools to the sophisticated NAVTEQ True technology.

                                                                                                                                NAVTEQ True is actually composed of four unique technologies:

                                                                                                                                • 360° LIDAR: Rotating lasers capture 1.3 million 3D digital data points every second, which generates a virtual 3D model of the world around the vehicle.

                                                                                                                                • Position Sensors: GPS and military grade Inertial Measurement Unit (IMU) sensors measure the vehicle’s speed, orientation and even gravitational forces to provide highly precise location references to every point within the virtual 3D model.

                                                                                                                                • Panoramic Cameras: These cameras layer in a 360° images synchronized to the 3D LIDAR points—giving us the most true to life representation of the world

                                                                                                                                • High Resolution Multi-View Cameras: High-resolution images give us the opportunity to increase automation so we can more quickly bring advanced location content to more people.

                                                                                                                                  Worldwide, NAVTEQ True technology is gathering an immense amount of data.

                                                                                                                                  For instance, in one single day, we might collect 12 million signage images, two million panoramic images, a trillion LIDAR points, and 65 million million (65,000,000,000,000!) colour pixels. We’re not just taking pictures of the world; we’re creating a new data model of the world.

                                                                                                                                  With this level of high quality data, NAVTEQ True technology is capturing real world dimension, fueling more realistic and interactive experiences. With data collected by NAVTEQ True, you can explore the world more easily and in a whole new way – you can instantly see all the best places to eat and things to do and see it right on your phone’s camera display. It’s like having x-ray vision, revealing the hidden spots you might otherwise miss. 

                                                                                                                                  You can experience an implementation example of the collected data in 3D with Nokia City Lens for Nokia Lumia. Simply by following the instructions on the right.

                                                                                                                                  I will add to that the following NAVTEQ video giving more explanation about the excellence of Nokia’s mapping technology:
                                                                                                                                  Building the most accurate and fresh map [NAVTEQCompany YouTube channel, Oct 5, 2012]

                                                                                                                                  Discover what is behind the collection process of NAVTEQ Maps, and how our expert team uses cutting edge technology to create maps that are more precise and rich in details than ever before.

                                                                                                                                  Frequently Asked Questions: Maps on Windows Phone 8 [Nokia Conversations, Oct 31, 2012]

                                                                                                                                  Compass

                                                                                                                                  With Windows Phone 8 officially introduced last Monday and the first smartphones based on this platform being shipped or reviewed, it’s time to have a quick overview of its location-based apps and experiences.

                                                                                                                                  As you may already know, Nokia is delivering the backbone for all location experiences on Windows Phone 8 and offering Nokia Drive to all Windows Phone 8 partners, empowering this new OS with voice guided turn-by-turn car navigation.

                                                                                                                                  Since we made these announcements, some legitimate questions have been asked on Twitter, on this blog and in the first reviews of Windows Phone 8. I would therefore like to summarize them and provide some clarification.

                                                                                                                                  What does it mean that the Nokia Location Platform is powering the Windows Phone 8 ecosystem?

                                                                                                                                  It basically means that location-based apps for Windows Phone 8 developed by Nokia (e.g. Nokia Maps, Nokia Drive, Nokia City Lens and Nokia Transport), apps developed by Microsoft (e.g. Bing Maps) and apps by any other developer make use of basic functionalities provided by Nokia.

                                                                                                                                  It also means that some features like offline maps are now completely embedded into Windows Phone 8. You can find this option in your smartphone settings.

                                                                                                                                  WIndows Phone 8 Start Screen Windows Phone 8 Settings

                                                                                                                                  Is Nokia Maps on all Windows Phone 8 smartphones?

                                                                                                                                  The Nokia Location Platform is powering the Windows Phone 8 ecosystem, not Nokia Maps, which is an app. On non-Nokia Windows Phone 8 smartphones, the default mapping application is Windows Phone Maps. This is running on top of our map data. It is using our geocoding, our traffic information and our routes, but it’s ultimately developed by Windows Phone, with a custom UI, search and POI database.

                                                                                                                                  Where is turn-by-turn navigation?

                                                                                                                                  Nokia Drive is the application that provides voice-guided turn-by-turn car navigation on Nokia smartphones and with Windows Phone 8 it’s also being made available to other manufacturers. Nokia Drive has been rewritten from the ground up specifically for Windows Phone 8, to leverage the power of this OS and offering new features.

                                                                                                                                  We are currently testing it and a beta version will be made available very soon. On a Nokia smartphone like Nokia Lumia 920, you will find a tile on the start screen that will take you to the Windows Phone Store to download Nokia Drive Beta. Other manufacturers and Microsoft will decide in which countries and on which devices Nokia Drive will be offered to their customers.

                                                                                                                                  You will be very pleased to know that some of the features you have requested the most, spoken street names and route planning options to avoid toll roads, ferries, etc., have been included in this release. However, while currently in beta, Nokia Drive for Windows Phone 8 won’t support My Commute just yet and we strongly suggest you to make use of the offline maps to enjoy your travels.

                                                                                                                                  What’s new in Nokia Maps for Windows Phone 8?

                                                                                                                                  On Nokia smartphones with Windows Phone 8, the default mapping application is Nokia Maps. We’ve been working hard during the past few months to develop a great new release specifically for Windows Phone 8. In a previous blog post I’ve explained all the features we are including in Nokia Maps for Windows Phone 8 or currently working on.

                                                                                                                                  While the first version of Nokia Maps for Windows Phone 8 was being preinstalled on our newest smartphones (v 2.9), we were already working on an update with even more features. This is why, when you first start your new Nokia smartphone with Windows Phone 8, we encourage you to immediately update Nokia Maps and enjoy all the latest features (v 3.0).

                                                                                                                                  In a nutshell, you won’t only be able to use offline maps but also offline search and routing, also for public transport. You can use turn-by-turn walk navigation or start Nokia Drive to get voice-guided, turn-by-turn car navigation. Last but not least, you will also find your way indoors with the support of venue maps in almost 18,000 buildings in 40 countries (and counting).

                                                                                                                                  ‘Nokia Maps offers the most advanced mobile maps offering to consumers today with largest global coverage, highest quality mapping data and true offline availability’ said Francisco Jeronimo, Research Manager, European Mobile Devices, IDC. 

                                                                                                                                  Nokia Maps Starbucks in Manhattan Nokia Maps Navigation

                                                                                                                                  What’s new in Nokia Transport for Windows Phone 8?

                                                                                                                                  Nokia Transport (aka Nokia Transit in North America) has also been updated with great new features. Just like Nokia Maps, we started working on a new version of Nokia Transport immediately after preinstalling it on the Nokia smartphones with Windows Phone 8. This is why you will find an update in the Windows Phone Store in coming days.

                                                                                                                                  With the new version of Nokia Transport for Windows Phone 8, automatic over-the-air updates help ensure you have the latest information on schedules and routes as well as on newly supported cities. You can now get a combined segment map and detail view to orient yourself at a glance: just tap or swipe a specific segment of your journey to expand an intuitive map and detail view that easily lets you see where you are and where you need to be.

                                                                                                                                  New display settings will give you the options to select miles or kilometers, the time of departure or the time you have until the next departure and plan ahead by setting time and date of your journey.  From Nokia Transport, you can now also launch the turn-by-turn walk navigation provided by Nokia Maps to get to the next stop or to your final destination. The search history has also been redesigned to be easier to use and to support entries management. For example, you can now manually delete previous searches and keep the history tidier.

                                                                                                                                  Nokia Transport Overview

                                                                                                                                  What is Nokia City Lens?

                                                                                                                                  Nokia City Lens turns sight into the next interface for searching the world around you. The app provides information about each building or landmark in the area, giving people an at-a-glance understanding of what restaurants, museums, shops and others places of interest are nearby. Seeing a place of interest through augmented reality provides a wealth of information not available with the naked eye, allowing you to see the world around you using your smartphone instead of having to perform web searches.

                                                                                                                                  The technology powering Nokia City Lens is particularly advanced and accurate. We are capturing real world dimension, fueling more realistic and interactive experiences. It’s like having X-ray vision, revealing hidden spots you might otherwise miss.

                                                                                                                                  Nokia City Lens comes preinstalled on Nokia smartphones with Windows Phone 8 and we are already busy working on the next release, which you can learn more in this previous blog post.

                                                                                                                                  Image credit: Walt Stoneburner

                                                                                                                                  Ouya $99 open console project based on Android Jelly Bean backed by $8.6M of crowd funding on Kickstarter

                                                                                                                                  Android had a tremendous impetus for the ICT industry as a whole, and that role continues even more with projects like Ouya (withering this time the console business of Microsoft, Sony and Nintendo?):

                                                                                                                                  Official OUYA Kickstarter Video [OUYAS YouTube channel, Aug 29, 2012]

                                                                                                                                  Key people appearing in the video: Julie Uhrman, Ouya, Founder; Brian Fargo, Founder, inXile; Alex Schwartz, Chief Scientist, Owlchemy Labs; Yves Behar, Product Designer; Adam Saltsman, Creator, “Canabalt”

                                                                                                                                  More information:
                                                                                                                                  Ouya article on Wikipedia
                                                                                                                                  Ouya project microsite on Kickstarter indicating also the promised March 2013 delivery date and the $8.6M crowd funding (closed on Aug 9, 2012) vs. the initial $950K goal which made the Ouya Kickstarter the second highest earning in the Kickstarter’s history
                                                                                                                                  – and the most amazing thing appreciated by so many that it is sufficient to inlude here a couple headlines from the most prestigious sources: Ouya No Bigger Than a Rubik’s Cube, Ouya will be about the size of a Rubik’s Cube, Ouya console “around size of Rubik’s cube, Ouya Console Will Be As Small As a Rubik’s Cube etc.
                                                                                                                                  OUYA Console – Ask the experts at CVG [techradararchive YouTube channel, Oct 18, 2012]

                                                                                                                                  Our colleagues at CVG give you the down-low on the new $99 Android console.

                                                                                                                                  The state of the project as of Oct 31, 2012:

                                                                                                                                  Our CAD models and SLAs (plastic prototypes that provide us with a physical look and feel of the product) are finished, and we moved out of the design phase and into development a couple of weeks ago.
                                                                                                                                  Last week was a huge milestone for us — we received our first development run of PCBs (Printed Circuit Boards) for the console.
                                                                                                                                  We are now in what’s referred to in the industry as the EVT (Engineering Verification Testing) phase.
                                                                                                                                  Have a look at our PCB:

                                                                                                                                  During the EVT phase, we’ll be testing both the console and the controller with our OUYA software. We’ll continue to verify our design and push the performance limits of our software. We’ll go through a couple more EVT build phases, as we weed out issues and refine the design for optimal performance and large-scale manufacturing, before we start cranking out OUYAs.

                                                                                                                                  So, awesome news: we’re set to complete this EVT phase on time, and we’re in sync with our December target for developer kits. Since these dev kits are still in pre-production phase, we’ll build a limited quantity. Each one will be a collector’s item — unique in design, build and appearance. (So, they’ll look different from the consumer-ready units.)

                                                                                                                                  SO LONG, ICE CREAM SANDWICH:
                                                                                                                                  I’m happy to announce OUYA will run on Android Jelly Bean, the newest version of the Android operating system. We’re making the jump from the old version, Ice Cream Sandwich, to ensure that we’re running on the most up-to-date software available. You asked if it could be done, we looked into it, and we made it happen.

                                                                                                                                  see: The big hardware update (and more) by Julie Uhrman, Ouya, Founder [Ouya project posts on Kickstarter, Oct 31, 2012]

                                                                                                                                  OUYA Demo [OUYAS YouTube channel, July 10 , 2012]

                                                                                                                                  A trusty engineer powers up our first OUYA and takes us for a short, but sweet, ride through the user interface! http://www.ouya.tv

                                                                                                                                  from the time of starting to raise funding via Kickstarter.

                                                                                                                                  And here is a recent independent evaluation of the project:
                                                                                                                                  OUYA – The Game Pop News [SurrenderTwenty YouTube channel, Nov 5, 2012]

                                                                                                                                  Cracking open the last closed platform: the TV. A beautiful, affordable console — built on Android, by the creator of Jambox. The thegamepop.com/ooo-yah/article by: Julieta Ramos For more on the OUYA visit: http://bit.ly/TGPOUYA http://www.ouya.tv/ Social Networks http://www.twitter.com/TheGamePopBlog http://www.twitter.com/SurrenderTwenty http://www.facebook.com/TheGamePopBlog http://www.facebook.com/SurrenderTwenty

                                                                                                                                  Ooo-Yah [Julieta Ramos on The Game Pop, Nov 7, 2012]

                                                                                                                                  If you keep tabs on new tech and gaming news sites such as this one, you have no doubt heard of the OUYA. I will admit that the minute I heard of it, I was set to donate and get dibs on my own console. Here’s why: it’s open source; offers free-to-play titles; hacker friendly; decent specs ; runs on Android Jelly Bean; will have its own online store; it’s a brand new console; and most importantly, incredibly cheap going for $99 (w/o shipping).
                                                                                                                                  Giants such as Microsoft, Sony, and Nintendo have led the game console market in recent years. In the 90’s, we longed for amazing graphics and innovative design from these companies, and they have delivered. But who would have thought that 10+ years later, those small portable devices we use to communicate with others were to become competition? This is the time of portable gaming, and it is a fascinating time in which all the tools to develop a game, such as the ones we fell in love with as kids, are easily accessible to anyone. In fact, a whole new wave of game applications has surfaced because of iPhones and Android phones. As your typical dork that has been fortunate to have had at least 1 modern console since childhood. I am thrilled and welcome the new device that will make people fall in love with consoles again.
                                                                                                                                  That is why the OUYA was exciting on first impression. However, there are numerous things anyone supporting it should consider. Is the price tag too good to be true? In reality, yes, it is. After you do a bit of research on similar gadgets. You will find that there are bootleg devices that, more or less, offer similar features for a slightly smaller price tag and are already up for sale. The China based electronics manufacturer JinXing Digital (JXD) has developed a number of portable devices which run on the latest Android OS. Android’s very own MK808 4.1 Mini PC/TV Box was recently released as well with a price tag of $90 flat. Given that these devices did not get attention nor funding through Kickstarter, they offer similar features as the OUYA while not hiding their tech behind a brand new design which can require extensive production time and money. Think about it, folks. This is a brand new product. It will require patents, quality assurance testing, and numerous other factors that might become obstacles along development.
                                                                                                                                  Some of us may be too young to recall or have heard of The Phantom. After googling it, I know your reaction will be similar to mine when I read about it, “How did this NOT take off?!” Just reading a brief bio on it, you realize it was ahead of the game. Its design was small, slick, and sexy… everything we love about our PS360Wii slims; you could play PC games on it; develop for it easily; play online. The people at Infinium Labs even had a working prototype at E3 in 2004—not just a well edited teaser video clip. It was unfortunate that it never made it to stores due to problems during production and online software.
                                                                                                                                  But that was another time when online game play was not as strong as it is now. These days, online capability is a given for mostly any game and portable device. The team behind OUYA appear to have enough savvy in order to deliver something to its supporters. Just this past week, Julie Uhrman, OUYA founder and CEO, released news that the console was now in the development phase and meeting milestones in time. Will they be able to deliver in time? Will it actually succeed? Part of me remains hopeful and optimistic to see indie developers have a chance at putting their project out there through a brand new console that caters to them.

                                                                                                                                  Entrepreneurial global brand building by the founder of the Chinese aigo [爱国者] company: a desparate attempt to avoid the death march of ruthless competition at home

                                                                                                                                  What happens when you were immensely successful in the pre-iPhone/Android and pre-iPad era of digital products and you were not able to recognize the fundamental change which was coming? What happens when in addition to that your playing ground for the initial success was in mainland China but the most ruthless competitors of Android and iPad era were also from China? What happens when those ruthless competitors are playing a game of pure selection by survival now, and in addition on a battlefield filled by not less than hundreds of little known brands? Each struggling to survive on meager margins.

                                                                                                                                  Welcome to the story of Feng Jun and to his recipe for survival by keeping as wide as only possible product range at home, and meantime hastily building a highest quality China brand in key countries globally in an alliance with top entreprenuers in other Chinese industries.

                                                                                                                                  Remark: for those who want first to understand the enormous and quite innovative product range of aigo I would first recommend to make a product tour of its Chinese site (or take at least a quick PDF-based look at Aigopad, the future focus of the company):

                                                                                                                                  Wonderful recommendation: [in the footer part of the homepage]
                                                                                                                                  the smart pen  MP6  Moonlight  digital photo frame
                                                                                                                                  digital camera [cat 69-1]  digital camera [cat 142-1]
                                                                                                                                  mobile storage king  voice recorder  Aigopad  aigoU disk
                                                                                                                                  somersault cloud phone  observation king

                                                                                                                                  Otherwise start from the story as it follows below and you will come to the product range in the end:

                                                                                                                                  Feng Jun – Young Global Leaders [World Economic Forum, Jan 14, 2011]

                                                                                                                                  Feng Jun
                                                                                                                                  Chairman, President and Chief Executive Officer
                                                                                                                                  Aigo [爱国者] Digital Technology

                                                                                                                                  Search for associated content

                                                                                                                                  Feng Jun is Chairman, President and Chief Executive Officer of Beijing Aigo Digital Technology, a leading Chinese consumer electronics company. Aigo’s merchandise includes tablets, digital cameras, MP3 players, portable storage solutions, monitors and other digital products. Feng started Aigo in 1993 with two employees and built it into the international brand that it is today. He is a Member of the Political Consultative Conference of Haidian District, Vice-Chairman of Beijing Electronics Chamber and a Member of the Beijing Industrial and Commercial Executive Committee. In 2005, Feng was selected to be a Member of the 10th session of the All-China Federation of Youth. In 2003, he was honoured with the Outstanding Award of the 6th China Youth Technological Innovation and in the prior year was selected as one of the Top 10 Chinese Technological New Talents. Feng has a degree in Civil Engineering from Tsinghua University [1992], an Executive MBA from Peking University’s Guanghua School of Management [2004] and a Doctorate in Psychology from Beijing Normal University.

                                                                                                                                  His “1+1=11” presentation on MMF 2009 [monacomediaforum, Nov 13, 2009]

                                                                                                                                  The “New Waves 5” presentation by the entrepreneurial founder of “aigo” (=patriot) company of China, Feng Jun, on the (first) Monaco Media Forum in 2009 (http://www.monacomediaforum.org/program.html).

                                                                                                                                  China’s Aigo to move boldly, compete with high-end global brands [Xinhua, Aug 8, 2010]

                                                                                                                                  China’s digital giant aigo revealed its ambition to break into global high-end markets, with camera shops to be set up in the world’s most renowned luxury districts.
                                                                                                                                  “Our grand plan is to open chain stores, featuring Chinese-styled cameras, on the Champs Elysees, New York’s Fifth Avenue, and other luxury centers within three years,” announced Feng Jun, president of aigo, during the ongoing fourth China Brand Festival held in Beijing.
                                                                                                                                  “We hope to be neighbors with Louis Vuitton,” added Feng.
                                                                                                                                  As a Chinese high-tech corporation most specialized in mobile storage devices, aigo has vowed to knock open the high-end market with its delicately-designed cameras with unique Chinese styles.
                                                                                                                                  The Ge-Kiln digital cameras, released in June by aigo, feature the crackling surface resembling Ge Kiln porcelain made in the Song Dynasty (960-1279 A.D.).
                                                                                                                                  “Every camera of this type has a unique pattern, representing the distinct identity of its owner,” said Feng.
                                                                                                                                  China’s digital brands are used to manufacturing cheap products, but we aim to make artworks out of our technology,” said Feng.

                                                                                                                                  His advocacy of the ultimate consumer values from rigid and water-proof camera to “aigo Cloud” 8 months earlier and still twice as more powerful than Apple’s iCloud, on CES 2012 [milagromac YouTube channel, Jan 11, 2012]

                                                                                                                                  Truly, madly, deeply successful [China Daily, Sept 28, 2011]

                                                                                                                                  It’s clear aigo Digital Technology Co Ltd president Feng Jun has been insanely successful in the domestic electronics market.
                                                                                                                                  But people thought he really was crazy when he became a vendor at Zhongguancun electronics market after graduating with an architecture degree from Tsinghua, one of the country’s most prestigious universities. Peddling simply wasn’t something a graduate did then.
                                                                                                                                  “I am a madman,” he says. “Everybody agrees. My idea was I could generate more value in Zhongguancun than in an office.”
                                                                                                                                  In the 1990s, the electronics market was a far cry from the “Silicon Valley of China” it’s celebrated as today.
                                                                                                                                  “The only thing that made it different from a farmers’ market was that I brought computer cases and keyboards, rather than fruits and vegetables, on my tricycle,” Feng says.
                                                                                                                                  He spent all his start-up money – 200 yuan ($31) he borrowed from his mother – to buy the bike.
                                                                                                                                  Customer confidence was an issue Feng tackled by selling his keyboards for a 5 yuan profit, while others took 50 yuan.
                                                                                                                                  “The other vendors thought it was strange to sell the keyboards for so little,” he recalls.
                                                                                                                                  “But I only needed a tricycle for deliveries and was happy with 5 yuan.”
                                                                                                                                  This is how he earned the nickname Feng Wukuai. (Wukuai means 5 yuan in Mandarin.)
                                                                                                                                  He devised product demonstrations in which he would sprinkle water over the keyboards and bash them on the ground. When people saw how robust they were, they rushed to buy them.
                                                                                                                                  “I could sell 600 a day,” he says.
                                                                                                                                  In early September, the 42-year-old entrepreneur unveiled the aigo Cloud service, enabling users to access personal data from any digital cloud device, including mobile phones, computers and tablets. The service operates on the iOS, Android and Windows systems.
                                                                                                                                  It’s China’s answer to Apple Inc’s iCloud service, which was introduced by former CEO Steve Jobs three months ago and will be available soon.
                                                                                                                                  “Jobs is a real master, and I respect him very much,” says Feng, who dresses in Sun Yat-sen uniforms. “I’m proud we launched the service before Apple.”
                                                                                                                                  Some netizens are skeptical of the service’s quality and mock Feng on Sina Weibo’s micro blog, the Chinese version of Twitter.
                                                                                                                                  “I understand their suspicion that we’re not competent,” Feng says.
                                                                                                                                  “But it’s time Chinese became self-confident. Time will tell.”
                                                                                                                                  Feng created aigo in 1997 to brand the U discs, mp3 players, digital photo frames and mobile phones his Huaqi Information Digital Techonology Co Ltd produced, and changed the company’s name to aigo in 2010.
                                                                                                                                  “The reason I succeeded so quickly is I put my heart and soul into research and development, ” he says.
                                                                                                                                  He recalls making the risky move to introduce aigo’s digital camera in 2005. The decision was made after fierce debate, because China’s market was dominated by Japanese brands.
                                                                                                                                  “The Japanese brands slashed their prices the instant our camera went on sale to drive me out of the market,” he says.
                                                                                                                                  “But I was doing the right thing. So, why would I quit?”
                                                                                                                                  Camera sales are stable but aigo is still losing money because of high R&D costs. Feng says he lost 3 million yuan last month.
                                                                                                                                  “But I’m happy I provide cheaper cameras for Chinese,” he says.
                                                                                                                                  “Other aigo products fill the profit gap.”
                                                                                                                                  Feng posted on his Weibo in September 2010 that he would donate all of his money to charity before his death.
                                                                                                                                  “My son said his classmate asked him why he studied so hard if he was going to inherit his father’s wealth,” he recalls.
                                                                                                                                  “I was shocked and worried. As long as my son is capable, he doesn’t need my money.”
                                                                                                                                  Although Zhongguancun is where his legacy began, he says he has no strong opinion about the news the government plans to shut down half the market’s shops by yearend.
                                                                                                                                  “Zhongguancun’s competition is like the Olympic Games’,” he says.
                                                                                                                                  “Quality counts. Winners and losers are both heroes. But cheating is never allowed. It’s survival of the fittest.”

                                                                                                                                  Where is aigo going now? He is speaking about his 6 months old “aigo Etrepreneurs Alliance” initiative at the 8th CHINICT [TheCHINICT YouTube channel, June 28, 2012]

                                                                                                                                  Aigo’s founder & chairman Feng Jun is interviewed by CHINICT’s founder & president Franck Nazikian at CHINICT 7th annual edition. CHINICT is the largest conference on China tech innovation & entrepreneurship. CHINICT takes place every year in Beijing at the end of May (CHINICT 8th edition on May 24th & 25th 2012 at Tsinghua Science Park in Beijing). Since 2005, CHINICT has been pioneering the “chinization” of global tech entrepreneurship & innovation. Indeed, the dynamic of innovation and entrepreneurship is now more and more leaning towards China. And, China is on the verge of becoming bigger than Silicon Valley – both as a hotbed giving birth to innovations of global impact & as a magnet attracting entrepreneurs from all over the world. CHINICT showcases this silent yet on-going revolution – by gathering each year in Beijing.

                                                                                                                                  aigo Entrepreneurs Alliance Premiere [aigo news, Feb 28, 2012]

                                                                                                                                  aigo entrepreneurs alliance premiere was held on Feb 25 with the topic of ‘good timing, geographical convenience and good human relations- aigo way to success’. Hundreds of entrepreneurs discussed that how they could unify each industry as one with Olympic mode and reach the top of the world.

                                                                                                                                  The “aigo Entrepreneurs Alliance” (AEA) microsite of aigo.com (in Chinese)

                                                                                                                                  Why AEA (Aigo Entrepreneurs Alliance) invested in Flanders [InvestInFlanders YouTube channel, July 9, 2012]

                                                                                                                                  Ambitious entrepreneurs often say that one plus one equals three. The Chinese businessman Feng Jun goes even further: “One plus one plus one equals 111.” This is his way of referring to Belgium — consisting of the autonomous northern region of Flanders, with Brussels as its capital, and the southern region of Wallonia. Feng Jun and his Aigo Entrepreneurs Alliance consider Belgium to be a top location from which to conquer the European consumer market. Their base will be the brand new European Market Center in Willebroek, a logistics hotspot in Flanders.

                                                                                                                                  Aigo Entrepreneurs Alliance Names Belgium its Preferred Investment Destination in Europe [Belgium in China, Feb 27, 2012]

                                                                                                                                  Aigo Entrepreneurs Alliance Names Belgium its Preferred Investment Destination in Europe

                                                                                                                                  Press Conference February 24th, Embassy of Belgium, Press release
                                                                                                                                  A vote among participants of Aigo Entrepreneurs Alliance’s business trip through Europe last December lauded Belgium as their preferred investment destination. This news was made public on Friday February 24th by Belgian Minister of State Armand De Decker and Mr. Feng Jun, founder of the Aigo Entrepreneurs Alliance and Chairman of Aigo Digital Technology Co. Ltd, at a joint press conference hosted at the Belgian Embassy.
                                                                                                                                  Strategically positioned at the heart of Europe, Belgium is the ideal logistics hub for those who envisage outward expansion, so experienced the Chinese delegation. Home to the EU and NATO, Belgium’s location provides both access to European and international decision makers, as well as a highly skilled, productive and multi-lingual labour force. Other reasons why investors opted for Belgium are the affordable real estate prices, the quality of living standard and the advantageous tax regime.
                                                                                                                                  The openness of Belgium’s economy, its excellent infrastructure and the creativity of its people are key elements which convinced Chinese companies such as Geely, Huawei, COSCO, the HNA group and ZTE to invest in Belgium.  Bank of China and the Industrial and Commercial Bank of China (ICBC) both set up a branch in Brussels to act as a link between Chinese and Belgian companies.
                                                                                                                                  “I’m thrilled that the Aigo Entrepreneurs Alliance discovered our assets. The companies coming to Belgium will be able to count on the full support of both federal and regional authorities and will enjoy the warm hospitality of the Belgian people”, said Minister of State Armand De Decker on Friday.
                                                                                                                                  Mr. Feng Jun, founder of the Aigo Entrepreneurs Alliance and chairman of Aigo Digital Technology, said that Belgium – with its geographical location, the second largest harbor of Europe and open economy – would make for the ideal Chinese investment destination. He further expressed hope and belief that “Chinese and Belgian cooperation in investment will build a bridge, one that will not only benefit both sides but the whole of Europe and the world”.

                                                                                                                                  Olympic ideal helps companies go global [China Daily, Sept 12, 2012], only excerpts:

                                                                                                                                  Host: Ok, sure. Here comes the first question. As we know, together with about 20 Chinese entrepreneurs, you established Aigo Entrepreneurs Alliances last year. How is it doing now? And I heard that you guys did some field research on the overseas market. What did you find out? Any ideas about how to tap into the global market?

                                                                                                                                  Feng: The Aigo Entrepreneurs Alliances is an organization to help Chinese brands go global. There is nothing new about overseas research because we have done this a lot of times. What does count is some of us have established offices abroad. We began with Belgium, Britain, and Denmark, three amicable European countries. They welcome us a lot. So we will help Chinese enterprises get a foothold there step by step.

                                                                                                                                  From Sept 13 to 20, a delegation of Chinese entrepreneurs will visit Thailand, Indonesia, Singapore, and Malaysia, four ASEAN member countries, also very amicable. We will vote, after inspecting the local market, for two countries most suitable for setting up offices. The other two countries will therefore be scratched out. But they are actually winners. They stood out from all ten ASEAN member countries in the first place. They won already.

                                                                                                                                  Host: I’m interested in how the organization, as the facilitator for Chinese enterprises to expand overseas, is received by the governments and people there.
                                                                                                                                  Feng: They like us there because we are friendly. They like to deal with friendly people from China. In the past, Chinese went there mostly as tourists, shopping only, but rarely as entrepreneurs, except for some private business owners who landed there illegally. Those businesses couldn’t represent Chinese brands. Most Chinese brands have yet to go global. Now we get to unite these great domestic brands to expand overseas. It is beneficial for those countries because we create jobs and pay taxes. It is in their stakes to welcome Chinese enterprises.
                                                                                                                                  The way we do it has been learned from the Olympic Games. We help Chinese brands to tap into the global market together, with “zero tolerance” for anything illegal, just like the Olympic Games do not tolerate illegal behavior like doping or any other things harmful to human beings. We do that too. We will not tolerate anything against laws or ethics so that we are able to improve the global image of Chinese brands and win more supporters and friends out there. With this support, and with our diligence and intelligence, we can create more values for the world.
                                                                                                                                  Not only can we generate revenue for those countries, but we provide more great products and services for their neighboring countries. In this way, we can bring real profits for those countries.

                                                                                                                                  Host:Speaking of “zero tolerance”, how many enterprises have offered to join the organization so far and by what standards do you pick them?

                                                                                                                                  Feng: So far the organization has absorbed nearly 100 enterprises, including Gree Electric Appliances Inc and Huiyuan Juice Group Ltd, from various industries. Many enterprises which offered to join us are front runners in their industries. But our rule is to select at most one enterprise from each industry. There are more than 3,000 industries out there. We have to give up many enterprises. We are only capable of helping 500 Chinese enterprises, from different industries of course, go global together.

                                                                                                                                  Another reason is to avoid conflicts because the biggest enemy for China is not from the outside but from inside. For instance, the minute the London Games ended, Chinese e-tailers plunged into a price war. They were almost at each other’s throat. Such a phenomenon is age-old in China. But our overseas partners are not any happier about this. Well, some may be cheering. But for those visionary partners and friends, they don’t really want to see conflicts within Chinese enterprises because the constant internal fighting will undermine services to the very end. It will even breed counterfeit products.

                                                                                                                                  So what we need is a virtuous environment. We have to learn from the International Olympic Committee (IOC), which acknowledges only one champion in each field, and select at most one sponsor from each industry. The way it performs can make sure that the Olympic Games is harmonious enough for everyone to create values instead of fighting with each other.

                                                                                                                                  Host: You’re right. I feel the same way. I believe many Chinese people always wonder why we see “Made in China” quite often in foreign countries, but rarely Chinese brands. This begs the question: what makes it so hard for Chinese enterprises to go global? The organization provides a good platform for our private enterprises. Will it fare well in the future?
                                                                                                                                  Feng: There are two reasons, I think. First, it’s only been 30 years since China’s reform and opening-up. Chinese enterprises have to lay a solid foundation first within China. That’s why most of them have been busy vying for the domestic market shares.
                                                                                                                                  But internationalization is inevitable now, whether you like it or not. A big challenge for Chinese enterprises lies in that it’s very risky to go global alone. And the cost is very high. Once it succeeds, troubles follow. Many domestic firms start stealing its talents and clients, thus undermining its domestic market. Going global alone is a risk too high to take. But the truth is, it’s a dog-eat-dog world out there. If you don’t come to them, they’ll come to you. By then there will be nowhere to hide. Therefore, we have to stick together when going global.

                                                                                                                                  China’s GDP per capita is less than one tenth that of Western Europe. The Chinese are so industrious, diligent, and intelligent, the only thing they need is to go to the outside world.

                                                                                                                                  It is really quite risky and costly for us to explore the overseas market by ourself. It’s no easy thing for a newcomer to an unfamiliar place, especially when you break local laws, which will cost you a lot. So we decided to go out in a group. It’s less risky and local property developers are eager to accommodate us because we are a group of well-behaved companies. It’s like the Olympic Village welcoming athletes from around the world.

                                                                                                                                  We invite the top 3 companies of each industry to join our alliance, and those selected will be the alliance’s one and only in his industry.

                                                                                                                                  You may ask what about the others? They can join our Club. Even if you are not one of the top 3 players in your industry, or just a small- and medium-sized company, you can be a member of our Club, which offers opportunities for SMEs to learn from the big companies in our alliance.

                                                                                                                                  We organize 10 conferences each year to share information on internationalization. The top 3 players selected in our alliance will deliver lectures.

                                                                                                                                  So I urge Chinese companies to stop grappling with domestic rivals and to become comrades in arms.

                                                                                                                                  The Alliance members can choose its favorable regions first, its peers in the Club can blaze trails in the rest of the world market so they will not compete in the same market, but become comrades conquering the world market. They can share their resources and exchange what they need, and become each other’s agent in his turf.

                                                                                                                                  That would improve the relations between the companies, just like the harmonious atmosphere in the Olympic Family. People will spare more effort to create values instead of grappling with domestic peers, and turn their sights to the outside world outside.

                                                                                                                                  Closing on this post:
                                                                                                                                  Forum Debate: Demystifying Asia’s Entrepreneurs on the Annual Meeting of the New Champions 2012 (World Economic Forum), in Tianjin, People’s Republic of China
                                                                                                                                  [Sept 11, 2012]
                                                                                                                                  Are Asia’s entrepreneurs different from Western entrepreneurs?

                                                                                                                                  Are Asia’s entrepreneurs different from Western entrepreneurs? Debating for and against the motion. · Feng Jun, Chairman, President and Chief Executive Officer, Aigo Digital Technology, People’s Republic of China; Young Global Leader · Christina Lampe-Önnerud, Founder and International Chairman, Boston-Power, USA; Technology Pioneer · Lin Yu, Chairman and Co-Chief Executive Officer, NQ Mobile, People’s Republic of China · Oki Matsumoto, Chairman and Chief Executive Officer, Monex Group, Japan · John A. Quelch, Dean, China Europe International Business School (CEIBS), People’s Republic of China Moderated by · Vijay Vaitheeswaran, China Business and Finance Editor, Shanghai Bureau Chief, Economist, People’s Republic of China; Global Agenda Council on Sustainable Consumption Rapporteur · Ryo Umezawa, Director, J-Seed Ventures, Japan; Global Shaper

                                                                                                                                  Feng Jun, Chairman, President and Chief Executive Officer, Aigo Digital Technology:
                                                                                                                                  – starting with “1+1=11” and ending with “chess metaphore”:  from [11:20] to [14:00]
                                                                                                                                  – on respecting differences: from [19:36] to [20:13]
                                                                                                                                  – on meeting foreign entrepreneurs [and agreeing that the principles are same everywhere] and on differences [to be respected] e.g. in China illustrated by the Chinese chess or the Chiese medicine: from [29:00] t0 [31:05]
                                                                                                                                  – on “for Chinese companies our biggest problem is teamwork” which is leading to his Olympic story “China got 38 medals but all individual”: from [39:05] to [40:43]
                                                                                                                                  – starting with questions “how many of you can play the Chinese chess and Mahjong?” when Chinese raised their hands, and “how many of you can play the bridge or international chess?” when Western people raised their hands >> leading to statement that “to become entrepreneurs Chinese need to settle down their internal circumstances, first and foremost the Chinese Mahjong sometimes has beaten us, which stems from thousands years of history” because “the Chinese emperors were afraid of their people coming together, therefore they used Mahjong to alienate the Chinese people, pitching them against each other in the Mahjong game, but in the international chess is all teamwork …”: from [41:55] to [43:55]

                                                                                                                                  Feng Jun: no longer talk about “patriots” of the Patriots [China Economic Weekly, Oct 8, 2012] as translated from Chinese with Google and Bing with the necessary manual edits

                                                                                                                                  People actually want to hear Feng Jun talk about products and the future of the aigo, but on this Feng was unwilling to talk about.

                                                                                                                                  Sony has what you have to what

                                                                                                                                  On the afternoon of September 10, 2012, at the Davos Forum in Tianjin, Feng Jun, dressed in black Chinese Collar, came to collect the second day of the admission documents.

                                                                                                                                  In the small courtyard next to the Registry, Feng Jun accepted the  China Economic Weeklyin an interview on his holding to the aigo on the digital market: “I hope the Chinese national brand can exist, despite of some product losses, I am still clung to the digital market.”

                                                                                                                                  Indeed, the aigo company is at a loss. In recent years, the digital camera market has increasingly been concentrated in large multinational companies, domestic camera manufacturers have been closed down, only Feng Jun adhere to the production. Feng Jun said: “We are at the obvious losses, loss of seven years.” Over time, Mr Feng admits that aigo have survived long.

                                                                                                                                  Traditional digital brands are out of the market in China, according to Feng Jun’s words, today the maximum value of aigo is a contribution to the nation.

                                                                                                                                  But one consumer told reporters: “five or six years ago, aigo was the leading national brand, in mobile storage, MP3, and some products for everyone to leave a deep impression. But now, we increasingly do not know what aigo is doing.”

                                                                                                                                  Whatever aigo is doing, but it is a growing gap with international brands, what Feng Jun understood.

                                                                                                                                  Feng Jun has his own reasons: “Sony has a pistol, you have to have a pistol; Sony has a rifle, you have to have a rifle; Sony has grenades, you have to have hand grenades, you are less like channels are likely to become compromised by the other party a path.” As far as the future is concerned, said Feng Jun, the tablet PC will become one of the priorities of the Patriots.

                                                                                                                                  He believes that, the aigo is a comprehensive brand to have longer product lines so that shop and store surfaces could not be squashed by Sony, Canon, and aigo eroded away.

                                                                                                                                  In the eyes of Feng Jun, manufacturers of electronic digital products must have a number of products, as focusing on single products as a guidance in times of crisis will inevitably lead to the bankruptcy of the enterprise. However, many people do not agree with Mr Feng. Communications industry expert Xiang Ligang said that, on the contrary, with large and comprehensive enterprise funds dispersed,  as each product involves research and development, and as such each product could not have its own core technologies and competitiveness, it must be difficult to survive in the end.

                                                                                                                                  In 2003, the market share of the aigo mobile storage products consecutive years ranked first, the aigo MP3 had a good market performance, in 2007 aigo first launched the first MP5 multimedia player on the domestic market, in 2009 aigo launched the first cloud MP6 player.

                                                                                                                                  However, in the last two or three years time, as smart phones and tablet PCs represented by Apple products quickly became mainstream, listening to music, storage and recording features went into those mobile devices. Wanting to blaze a new trail on the iPhone and iPad dominated market, could be difficult.

                                                                                                                                  Today electronic photo frames, as well as mobile storage products and other superior products supporting the operations of aigo, such as cameras, mobile phones, e-books, and so on are facing losses.

                                                                                                                                  Aigo is like the pawns at the river [in Chinese chess], and now has no escape route. In front of the media, Feng Jun has less love to talk about products and aigo’s core business, he loves talking about the Aigo Entrepreneurs Alliance, he said it is now the only advocacy highlights. Feng believes that the current situation is forcing Chinese companies to go out, this is the only hope for the Chinese enterprises. On one hand, by entering the international market they could share the cost of R & D and improve the profitability of the enterprise. On the other hand, foreign markets will not discriminate against Chinese brands, China’s digital products can be sold in foreign countries at higher than the domestic prices.

                                                                                                                                  Feng believes that, as a private enterprise, individual enterprises do not have the courage and strength alone for overseas adventures, they must form a concerted effort to open up overseas markets. Relative to the traditional digital products market the growth rate is slowing, helping enterprises to go out in order to bring value seems to be a better sense.

                                                                                                                                  In response, some entrepreneurs and industry experts are not as sure. Communications industry expert Xiang Ligang told China Economic Weekly, he is very much in agreement that companies must go overseas, but does not agree with the form that they must ally with each other to go out, because enterprises inevitably produce competitive market behavior and take the market by “unity” between enterprises is not going to work.

                                                                                                                                   Feng Jun’s chess theory

                                                                                                                                  Chinese people play chess, the Japanese Chess as well, and Indians play chess, the rules of these three are completely different. The chess pawns arch can change, so the morale and team spirit is relatively easy to achieve, everyone can venture in this system. Chinese Chess encourage is not to encourage entrepreneurship. Once across the river, became a dead stroke, go down go to die, as cannon fodder.

                                                                                                                                   Feng Mahjong theory

                                                                                                                                  The the mahjong rules may be the root of the Chinese nation can not be to Baotuan the most important one. Mahjong rules is to keep a close eye on the house, tight look to home, in order not to let the other win, these would rather destroy themselves going to destroy others. This rule so that the Chinese people can not unite, only against each other. …… Mahjong China punish those helpful point gun, who shot who is unlucky, and who help others unlucky, who when Lei Feng unlucky, lead to every Chinese dare not peddler, afraid to tell the truth, who revealed the secret unlucky, leading everyone in China to become individual.

                                                                                                                                  Now I will suggest every reader to take a look at the home offerings of the aigo company:
                                                                                                                                  欢迎光临爱国者官网·aigo爱国者 数码相机 数码摄像机 Mp3 Mp4 MP5 (aigo’s Chinese homepage). From this I would just recommend to take the product range tour as an illustration of Feng’s “as wide as only possible” idea for the home market: [in the footer part of the homepage]

                                                                                                                                  Wonderful recommendation: [in the footer part of the homepage]
                                                                                                                                  the smart pen  MP6  Moonlight  digital photo frame  digital camera [cat 69-1]  digital camera [cat 142-1]
                                                                                                                                  mobile storage king  voice recorder  Aigopad  aigoU disk  somersault cloud phone  observation king

                                                                                                                                  And this just a selection from an even large range of offerings since there are the following product categories are available as well:

                                                                                                                                  Out of the major recommendations I will include here just the Aigopad i.e. Tablet PC category in order to illustrate this – said to be strategic for aigo – family of products, how deep and wide they are by themselves: there are not less than 29 tablet products !
                                                                                                                                  (when some images are gone you could take a PDF-based look at Aigopad at the time writing)

                                                                                                                                  ST-Ericsson: Fundamental repositioning for modem, APE and ModAps spaces

                                                                                                                                  Rumour: Microsoft to expand ARM processor choices to Samsung and ST-Ericsson SOCs in next Windows update [Oct 5, 2012]

                                                                                                                                  image

                                                                                                                                  MSNerd, long time Microsoft leaker, has passed on a little tip about the next version of Windows on ARM.

                                                                                                                                  Currently Windows on ARM runs on NVidia, Qualcomm and TI processors, which leaves OEMs like Samsung unable to use processors from their own supply chain.
                                                                                                                                  According to MSNerd, in the next update to Windows Nokia and Samsung will be able to use processors from their favourite providers – in Nokia’s case ST-Ericsson’s Novathor processor, and in Samsung’s case its own Exynos processor and SOC.
                                                                                                                                  Blue is said to be an interim update to Windows, much like a service pack, and may be the start of a regular, more phone-like pattern of yearly updates to Windows which add features, as we have come to expect from Windows Phone and the iOS.
                                                                                                                                  So far we do not know much else about the update, but one can hope the update removes the reliance of the Modern UI on the Windows desktop for many settings.

                                                                                                                                  See also:
                                                                                                                                  Windows Next: Just call it ‘Blue’? [ZDNet, Aug 13, 2012]
                                                                                                                                  ST-Ericsson NovaThor SoCs for future Windows Phones from Nokia [this blog, Nov 3-24, 2011]

                                                                                                                                  We are talking about the following SoCs according to the latest, May 23, 2012 roadmap presentation:

                                                                                                                                  image

                                                                                                                                  According to the recent STMicroelectronics information included in the first section below:

                                                                                                                                  1. The low-cost version of the current L8540 ModApp will be in mass production next year at the Samsung 32/28nm foundry.
                                                                                                                                    My conclusion: With that ST-Ericcson could compete quite well with Qualcomm’s MSM8x30 “mid-tier market” SoCs in the Snapdragon S4 Plus tier. Depending on the production efficiency even the MSM8x27 “mass market” SoCs in the same tier may be targeted, at least later on.
                                                                                                                                  2. The 28nm FD-SOI based version of the L8540 (according to a French leak given in Section II the L8580) is slated for mass production by Globalfoundries in H2 2013.
                                                                                                                                    My conclusion: With that ST-Ericsson will compete quite well with what Qualcomm is going to offer later in the current MSM8x60 “premium market” space of S4 Plus.
                                                                                                                                  More information on S4 Plus is in the Core post: Qualcomm decided to compete with the existing Cortex-A5/Krait-based offerings till the end of 2012 [Sept 30, 2012]

                                                                                                                                  Some explanation:
                                                                                                                                  The current L8540 ModApp is a dual-core 1.85GHz ARM Cortex-A9 processor, with a powerful Imagination PowerVR™ SGX544 GPU running at 500Mhz and an LTE/HSPA+/TD-HSPA modem on a single 28nm die. It started sampling in Q3 2012 and debuted on Sept 18 at the PT EXPO COMM China 2012. The low-cost version will run the dual A9-s at 1.2 GHz, while the FD-SOI based version also dual A9s at 2+ Ghz (first information was 2.3 GHz while on the PT EXPO COMM even 2.5 GHz was mentioned as possible). The PowerVR SGX544 GPU will run at a slower than 500MHz in the former and at least 600MHz in the latter case. We also know that the FD-SOI based version has taped out in September and could be available for production smartphones in smaller quantities by the end of H1 2013.

                                                                                                                                  ST-Ericsson’s near term strategy is therefore to compete with the same dual-core Cortex-A9 and SGX544 based SoCs across a broad scale achieved via broad range of manufacturing technologies, and do not engage in many-core battles pursueded by the low-cost Chinese SoC vendors like MediaTek, Spreadtrum, Allwinner, Rockchip and others.

                                                                                                                                  Latest competitive information regarding the low-cost Chinese vendors:
                                                                                                                                  Core post: Boosting the MediaTek MT6575 success story with the MT6577 announcement  – UPDATED with MT6588/83 coming early 2013 in Q42012 and 8-core MT6599 in 2013 [June 27, July 27, Sept 11-13, Sept 26, Oct 2, 2012]
                                                                                                                                  Core post: Lowest H2’12 device cost SoCs from Spreadtrum will redefine the entry level smartphone and feature phone markets [July 26 – Aug 16, 2012]
                                                                                                                                  Core post: The low priced, Android based smartphones of China will change the global market [Sept 10-26, 2012]
                                                                                                                                  – Take note: MT6577-based JiaYu G3 with IPS Gorilla glass 2 sreen of 4.5” etc. for $154 (factory direct) in China and $183 [Sept 13, 2012]

                                                                                                                                  Elaboration for the current topic in details is given in the following sections:

                                                                                                                                  I. Reorganization began recently at semiconductor parent STMicroelectronics

                                                                                                                                  II. Summary: ST-Ericsson’s Fundamental repositioning

                                                                                                                                  III. Detailed information: ST-Ericsson’s Fundamental repositioning

                                                                                                                                  Warning: the last section is quite long but worth to go through


                                                                                                                                  I. Reorganization began recently at semiconductor parent STMicroelectronics

                                                                                                                                  STMicroelectronics Announces New Appointments in the Executive Management Team [STMicroelectronics press release, Sept 13, 2012]

                                                                                                                                  STMicroelectronics, (NYSE:STM), a global semiconductor leader serving customers across the spectrum of electronics applications, announced today that, effective immediately, Georges Penalver has been appointed Executive Vice President, Member of the Corporate Strategic Committee, Corporate Strategy Officer. Penalver was formerly Managing Director of the Communication Business Group of Sagem and, more recently, Member of the Executive Board of France Telecom/Orange Group in charge of the Group’s Strategic Initiatives and Partnerships. He brings a wide experience in defining corporate strategies, leading businesses and implementing comprehensive transformation processes.

                                                                                                                                  Jean-Marc Chery, Executive Vice-President, will take the additional responsibility of General Manager, Digital Sector, while maintaining his current role of Executive Vice-President, Chief Technology and Manufacturing Officer.

                                                                                                                                  As a consequence of Chery’s expanded responsibilities, Eric Aussedat, General Manager, Imaging and Bi-CMOS ASICs Group; Joel Hartmann,Corporate Vice President, Front-end Manufacturing & Process R&D, Digital Sector, and Philippe Magarshack, Corporate Vice President, Design Enablement & Services, are promoted to Executive Vice Presidents while maintaining their previous scope of activities; Stéphane Delivré, Corporate Vice President, Global Chief Information Officer, will now report to the President & CEO.

                                                                                                                                  Philippe Lambinet, Executive Vice President, Corporate Strategy Officer and General Manager, Digital Sector is leaving the company today to pursue other interests.

                                                                                                                                  ST also announced it will present its new strategic plan in December. The objectives of the plan are to continue to accelerate the company’s roadmap towards the already announced financial model, taking into account the changed market environment and some specific customer dynamics, and to continue to ensure the future success of the company in total, with the two pillars, the Analog and the Digital businesses, both becoming as quickly as possible sustainable segments of ST.

                                                                                                                                  About STMicroelectronicsST is a global leader in the semiconductor market serving customers across the spectrum of sense and power technologies and multimedia convergence applications. From energy management and savings to trust and data security, from healthcare and wellness to smart consumer devices, in the home, car and office, at work and at play, ST is found everywhere microelectronics make a positive and innovative contribution to people’s life. By getting more from technology to get more from life, ST stands for life.augmented.

                                                                                                                                  In 2011, the Company’s net revenues were $9.73 billion. Further information on ST can be found at www.st.com.

                                                                                                                                  Business insider brought in to fix ST [ElectronicsWeekly.com, Sept 14, 2012]

                                                                                                                                  A heavyweight business insider has been brought in to address the deteriorating situation at STMicroelectronics.
                                                                                                                                  Georges Penalver formerly at Sagem and France Telecom and a general partner at US-based investment fund Cathaya Capital, has been appointed Chief Strategy Officer of ST.

                                                                                                                                  ST has two big problems: one is its jv ST-Ericsson which has run up debt of $1.2bn since starting trading in 2009. It is losing $250m a quarter.

                                                                                                                                  The other big problem is a collapse in sales at ST. From $9.73bn in sales last year, sales are expected to be $8.6bn this year – about the same level as they were when the current CEO [Carlo Bozotti] took over in 2005.
                                                                                                                                  On the one hand ST has a solid business in MEMS, discretes, power semiconductors and analogue, on the other hand it has slipped behind in the process technologies on which success in digital microelectronics depend.
                                                                                                                                  Penalver’s job will be to find some resolution to these issues and he is expected to report with a new strategic plan in December.

                                                                                                                                  Samsung and STMicroelectronics Enter Strategic Relationship for Advanced Foundry Services at 32/28nm Technology [Samsung press release, Sept 28, 2012]

                                                                                                                                  Samsung Electronics, Co., Ltd., a world leader in advanced semiconductor technology solutions, announced foundry production of STMicroelectronics’ leading products using 32/28nm High-K Metal Gate (HKMG) process technology. Samsung Electronics’ foundry business has been selected by STMicroelectronics to provide it with products at the 32/28nm process node. The relationship has already resulted in taping-out of a dozen ST advanced system-on-chip (SoC) devices for mobile, consumer and network applications.

                                                                                                                                  “We have successfully started production of STMicroelectronics’ new-generation 32/28nm SoC products,” said Kwang-Hyun Kim, executive vice president of foundry business, Device Solutions, Samsung Electronics. “A foundry relationship with ST demonstrates our commitment to advanced process technology and our 32/28nm HKMG process-technology leadership. We have aggressively ramped 32/28nm capacity and will continue to deliver the most advanced process solutions to our customers,” he said

                                                                                                                                  Samsung and STMicroelectronics have developed 32/28nm High-K Metal Gate (HKMG) technology through participation in the International Semiconductor Development Alliance (ISDA). Samsung’s foundry business has offered access to 32nm HKMG process technology for early market leaders and 28nm HKMG process technology for customers looking for traditional migration benefits.

                                                                                                                                  “In addition to delivering waves of innovative new products, another key to ST’s success in each of our target markets is working with industry leaders,” said Jean-Marc Chery, executive vice president, chief-technology officer for STMicroelectronics. “Both ST and Samsung have worked together on advanced process-technology development through the ISDA and that experience has provided significant insight into our ability to work together to meet our objectives and thus provide unique service to our customers in demanding and fast-moving markets.”

                                                                                                                                  See Samsung Foundry: 32/28nm Low-Power High-K Metal Gate Logic Process and Design Ecosystem [March 2011]

                                                                                                                                  TSMC 28-nm market share may drop in 2013: Topology [The China Post, Oct 4, 2012]

                                                                                                                                  Taiwan Semiconductor Manufacturing Co.’s (TSMC) share in the 28-nanometer contract chip-making sector may drop from 80 percent to 50 percent next year on fierce competition from Samsung, reported research firm Topology yesterday.
                                                                                                                                  Samsung has been active in expanding its contract manufacturing business and has raised capital expenditure for two years in a row, Topology said.
                                                                                                                                  The Korean firm has turned a large part of its memory chip business into contract manufacturing, resulting in a sharp increase in foundry capacity that is expected to catch up with TSMC, it said.
                                                                                                                                  “Samsung’s migration into contract manufacturing has sent shockwaves throughout the industry,” said Chen Lan-lan, researcher with Topology. “Its move to raise capital expenditure and transform memory capacity into foundry capacity indicates its ambition in the contract manufacturing sector.”
                                                                                                                                  This year, Samsung’s contract manufacturing capacity is about a third of TSMC’s. Our forecast indicates next year the figure will change to one-half,” she added.
                                                                                                                                  According to her, it was also worth noting that Samsung’s 300-millimeter capacity has surpassed that of United Microelectronics and GlobalFoundries, the latter of which has also been active in expanding high-end production capacity. These factors will combine to bring fierce competition to TSMC, she said.
                                                                                                                                  “Strong demand for 28-nm have enabled TSMC to report record sales several times this year. Yet next year, with expansion by Samsung and GlobalFoundries, the shortage in 28-nm capacity will improve, and this is expected to bring down TSMC’s share in the 28-nm market,” she said.

                                                                                                                                  Full Interview: Jean-Marc Chery, CTO and CMO at ST [ElectronicsWeekly.com, Sept 10, 2012]

                                                                                                                                  In the first week of September STMicroelectronics taped out the 28nm FD-SOI NovaThor integrated modem and applications processor designed by ST-Ericsson.
                                                                                                                                  The chips are being made at Crolles. The Crolles 28nm FD-SOI line has capacity for 300-500 wafers per week. The process is in the course of being transferred to Globalfoundries’ Dresden fab where it will be ready for mass production in the second half of 2013, said Chery.
                                                                                                                                  The decision to go with FD-SOI was taken in July 2011 after an earlier decision to use bulk [?HKMG?] “28nm bulk with HKMG looked good enough to address smartphones,” said  Chery, “over a year ago we taped out HKMG 28nm at Samsung.”
                                                                                                                                  Having made the decision to adopt FD-SOI last July, it has taken a year to get the process to the point where it will be ready to start running 28nm FD-SOI ICs next week.
                                                                                                                                  The 28nm FD-SOI process produces ICs with superior performance to Intel’s bulk 22nm finfet process, said Chery. Intel’s ’22nm’ process has a drawn gate length of 27nm.
                                                                                                                                  “Finfet generation 1 on bulk does not perform as well as SOI performance at 28nm,” said Chery, “finfet generation 1 has good leakage without performance or performance with high leakage.”
                                                                                                                                  “Finfet generation 1 on 22nm is a complex technology and doesn’t give the best trade-off between performance and leakage,” said Chery.
                                                                                                                                  “Finfet generation 2 on 14nm will be the same performance as FD-SOI but much more complex and with less design legacy,” added Chery.
                                                                                                                                  How will ST compete when the processes deliver the same performance? “Our competitive advantage will be in our design technology,” replied Chery, “they’re used to making PC chips for high performance, we are in the world of wireless devices where the priority is power consumption. They’re OK with small volume high value PC chips, not with the very high volumes of tablets and phones where volumes are very high and prices are low.”
                                                                                                                                  ST reckons it has a big lead in FD-SOI particularly in the UTBB [Ultra Thin Body and BOX (buried oxide)] refinement of FD-SOI where the value added is the thickness of the silicon dioxide BOX which is 25nm.
                                                                                                                                  Compared to bulk processes, the FD-SOI process has 10% fewer steps and three fewer masks reducing lead time by 10%. It is scalable to 14nm and has a processing cost equivalent to bulk.
                                                                                                                                  “Planar 28nm UTBB SOI is an evolution of 28nm bulk,” said Chery, “it has the same design rules and the same BEOL process. The FD-SOI FEOL process has 80% in common with 28nm bulk.”
                                                                                                                                  ST is keeping a foot in the bulk CMOS camp. “We’re prototyping 28nm bulk at Samsung,” said Chery, “we start mass-production on 32nm and 28nm next year.”
                                                                                                                                  Bulk CMOS is introduced first at Samsung, then at Globalfoundries,” said Chery, “SOI is being introduced first at Globalfoundries where it will be ready for mass production on 28nm FD-SOI in H2 2013. And we can use Samsung for SOI if we need to.”
                                                                                                                                  The Samsung and Globalfoundries fabs are synchronised under the IBM Common Platform Alliance so all the design rules are compatible and the same product fits both fabs.
                                                                                                                                  The FD-SOI process will see ST through the 28nm and 20nm nodes without ST having to bother with finfets.
                                                                                                                                  “At 28nm and 20nm we can offer a planar SOI solution which offers the best combination of performance and leakage,” said Chery
                                                                                                                                  The FD-SOI vs finfet competitive battle will be joined in earnest at the 14nm node, reckons Chery.
                                                                                                                                  “Intel’s 14nm finfet process will be fantastic,” said Chery, “so Samsung and TSMC are running fast to introduce a competitive 14nm finfet process.”
                                                                                                                                  ST’s FD-SOI process will scale to 14nm but, after that, ST is looking for partners to develop the technology further.
                                                                                                                                  “The challenge for us will be at 10nm,” said Chery, “because bulk will disappear at 10nm. We need to get others to join the club at Globalfoundries – it’s in our interest to prepare a club for 10nm.”
                                                                                                                                  Chery reckons the FPGA people and the ARM camp could be possible members.
                                                                                                                                  STMicroelectronics’ strategy of being a ‘competitive follower’ means that the advantage in process technology being gained by the ASML, Intel, Samsung, TSMC lithographic alliance will not affect ST.
                                                                                                                                  We intend to be a competitive follower,” says Jean-Marc Chery, Chief Manufacturing and Technology Officer at ST, “we won’t have the first machines. We’ll have them when production is mature.We won’t fight to take machines at the same time as Intel, TSMC and Samsung but we’ll take them when they’re mature. That’s our strategy of being a competitive follower.”
                                                                                                                                  ST gets its basic process technology from IBM’s Common Platform Alliance and, if IBM can’t get the latest production machines early, that will affect IBM’s ability to develop processes in a timely manner for distribution to its alliance partners.
                                                                                                                                  So is IBM being out of the ASML litho party a problem for the Common Platform Alliance? “We have to decide that at the top executive level,” said Chery adding that he would be going to talk to IBM about it quite soon.
                                                                                                                                  The absence of EUV machines doesn’t mean process development has to stop. “Intel have said they can cope with 14nm using double or triple patterning,” said Chery.
                                                                                                                                  As for ST getting its hands on the latest equipment in a timely manner, Chery points out: “ASML capacity is booked 18-24 months in advance. You pay up-front and they will guarantee supply.”
                                                                                                                                  Being left out of the ASML litho party is more of a problem for Globalfoundries, reckons Chery.
                                                                                                                                  Part of Chery’s brief at Crolles, as Chief Manufacturing Officer, is to keep the fab there running wafers as cost effectively as anywhere else in the world.
                                                                                                                                  The challenge Crolles has in manufacturing technology is to offer a competitive supply chain,” said Chery. ST benchmarks its manufacturing cost against foundry manufacturing cost.
                                                                                                                                  So how does Crolle’s 300mm fab capable of running 14,000 wpm at the moment compete on cost with TSMC’s GigaFabs running 100,000 wpm?
                                                                                                                                  We are competitive in terms of purchasing price,” replied Chery, pointing Crolles is built to make 5000 wafers per week. (it’s running 3,500 wpw at the moment). “At 5K wpw, below 40nm, the advantages of the dimension of scale is getting lower,” he said, “and full automation means we do not need the high volume to be competitive; with a high level of automation we can manage average volume with strong efficiency.”
                                                                                                                                  Crolles currently produces 22% of ST’s annual sales – about $2 billion worth. “The number of good circuits per wafer is between 70% and 90% depending on complexity and ramp up. The challenge is always how to align the wafer cost to TSMC’s selling price.”
                                                                                                                                  The manufacturing strategy varies with the industry cycle. In a down-cycle the strategy is to have 60% out output manufactured in-house and 40% out of house; in the up-cycle the proportions are reversed: 60% out at foundry and 40% in-house.
                                                                                                                                  ST uses the Fast-Yield Learning Curve technology of PDF Solutions.which has brought days-per-mask-level down to 0.7. “With one customer’s apps processor on 40nm we have achieved 0.36 days per mask level,” said Chery.
                                                                                                                                  ST will pursue two options at 14nm. “We don’t want to be a follower of Intel,” said Chery, “at 14nm we’ll have both options: 14nm finfet in bulk – from the Common Platform Alliance, and 14nm FD-SOI planar.”

                                                                                                                                  ST-Ericsson boosts smartphones and tablets to 2.3 GHz! [silicon.fr, July 12, 2012] as translated by Google:

                                                                                                                                  The L8580 is a component NovaThor ARM dual-core clocked at 2.3 GHz, dedicated to mobile terminals. A solution that relies on burning in FD-SOI 28nm STMicroelectronics.
                                                                                                                                  We have seen previously, the 28 nm FD-SOI STMicroelectronics is a very effective means between 28 nm and 22 nm, but also an interesting alternative (and affordable) Intel 3D transistors.
                                                                                                                                  ST-Ericsson is the first to adopt this technology in theNovaThor L8580 , L8540 successor (engraved in 28 nm “bulk”). This component has been designed in Grenoble and Crolles, prototyped and then melted Crolles. Of 100% “made in France”! It features two ARM Cortex-A9 clocked at 2.3 GHz , or 24% more than the L8540 (1.85 GHz maximum).
                                                                                                                                  A champion of energy efficiency
                                                                                                                                  But this is not all: 1.85 GHz, consumes 35% less energy than its predecessor. Better, a voltage of 0.6 V, it is clocked at 1 GHz , almost twice than competitive offerings (which must make the best use of 0.9 V to achieve such a frequency).
                                                                                                                                  The L8580 is faster than most dual-core ARM chips, but also more energy in times of low system load (which constitute the bulk of the activity of a computer system).
                                                                                                                                  ST-Ericsson believes that a classic smartphone, this component will provide an extra day of autonomy compared to L8540, which can result in a surplus of respectively 4 hours or 2:30 in high-speed web browsing or reading HD video.
                                                                                                                                  The top mobile graphics
                                                                                                                                  In addition to its particularly high operating frequency, the NovaThor L8580 is assisted by PowerVR SGX544 GPU clocked at the frequency of very valuable 600 MHz (500 MHz cons above, or 20%). It is among the very best in the mobile world in raw performance, as operating frequency.
                                                                                                                                  Finally, the SoC integrates a DDR2 memory controller and modem LTE is for all smartphones and tablets.
                                                                                                                                  On the actual availability of this offer, STMicroelectronics indicates that the scheme component will be fixed within a month, the chip start to be melted before the end of 2012 .

                                                                                                                                  II. Summary: ST-Ericsson’s Fundamental repositioning

                                                                                                                                  There was a series of fundamental announcements from ST-Ericsson on MWC 2012, then in March and a final one in April last week. The essence of all this is that the company’s modem business is set to grow further within ST-Ericsson while its application processor business will continue to grow within its ST-Microelectronics parent, and its integrated ModAps are repositioned for maximising the chances to achieve true market leadership in the next two years.

                                                                                                                                  In terms of the conventional, Boston matrix based decisions such a strategic repositioning is to be achieved by the following actions (their general meanings are shown in the brackets):

                                                                                                                                  Meanwhile it has also been reported that HTC is developing its own CPU for lower end smartphones with ST-Ericsson [Unwired, April 23, 2012]

                                                                                                                                  HTC is following in the footsteps of Apple and Samsung, and is now working on its own dedicated applications processor. According to China Times, the Taiwanese smartphone maker has already signed memorandum of cooperation with ST-Ericsson to co-develop the chip.

                                                                                                                                  Contrary to high performance Samsung and Apple [proprietary] CPUs which power their flagships, the new HTC processor will run the lower end smartphones. The devices with new chip will start shipping in volume sometime in 2013.

                                                                                                                                  Note that ST-Ericsson is not the only proprietary SoC partner for HTC as indicated in the latest updates to Tech investment banking expertise to strengthen the unique value focus of growing the HTC brand and to achieve high growth again [this “Experiencing the Cloud” blog, April 18-25, 2012].


                                                                                                                                  III. Detailed information: ST-Ericsson’s Fundamental repositioning

                                                                                                                                  For the most recent information about that see: STMicroelectronics NV 2012 Investors & Analysts Day (NY), May 23, 2012 where a webcast is available as well. ST-Ericsson’s CEO Didier Lamouche had a downloadable plenary session presentation there on the following topics:

                                                                                                                                  • The new strategic direction
                                                                                                                                  • Addressing the right market
                                                                                                                                  • Product Roadmap
                                                                                                                                  • Customer traction continues

                                                                                                                                  From that I will include here the following updated roadmap information:

                                                                                                                                  image

                                                                                                                                  image

                                                                                                                                  Ericsson’s JV ST-Ericsson announces new strategic direction [Ericsson press release, April 23, 2012] with slides inserted as appropriate from ST-Ericsson’s CEO (Didier Lamouche) presentation to analysts
                                                                                                                                  (note: the ST-Ericsson press release is essentially same)

                                                                                                                                  • Focused R&D effort and partnership with STMicroelectronics in the development of future application processors
                                                                                                                                  • Restructuring program to lower break even point and accelerate time-to-market
                                                                                                                                  • Ericsson committed to the 50/50 joint venture and its new strategic direction

                                                                                                                                  ST-Ericsson – the 50/50 joint venture owned by Ericsson (NASDAQ:ERIC) and STMicroelectronics (NYSE:STM) – announced today the guidelines of its new strategic direction. Within the company’s new strategic direction it has signed an agreement to transfer its stand-alone application processor R&D activities to STMicroelectronics, and to take additional measures to accelerate time-to-market and lower the breakeven point.

                                                                                                                                  “ST-Ericsson’s strategic shift is a key step in ensuring that the company can reach sustainable profitability and cash generation. With the focus on ModAps for smartphones and tablets it will allow device manufacturers to rapidly bring best-of-breed devices to the market,” said Hans Vestberg, president and CEO of Ericsson and Chairman of ST-Ericsson Board of Directors.

                                                                                                                                  The new strategic direction announced by ST-Ericsson today builds on four main pillars:

                                                                                                                                  1.      Strategic Focus

                                                                                                                                  The Company re-affirms its vision to be a leader in smartphone and tablet platforms and unveiled a new strategy based on repositioning the whole business model. The new strategic direction leverages on ST-Ericsson’s unique capability to deliver complete system solutions for smartphones and tablets; competitive integrated modem plus application processor solutions (ModAp) will be the key differentiating offering through a combined approach of development and alliances.

                                                                                                                                  image

                                                                                                                                  The key building blocks of the complete system solution – application processors, modems, connectivity as well as power, RF, analog and mixed signal – will be developed either directly or through partnerships and alliances to limit and optimize the R&D effort, while enabling highly compelling solutions for its customers to bring innovative devices to the market in a timely manner. The Company will continue to develop modem IP, a key competitive enabler, sell thin modems and possibly license modem IP to third parties.

                                                                                                                                  2.      Partnership already signed: application processor

                                                                                                                                  As a first step of this new strategy, ST-Ericsson has announced that it will partner with STMicroelectronics in the development of future application processors. The combination of the ST-Ericsson and STMicroelectronics teams will create a world-class organization, having the appropriate size, skills and strength to win in the growing multi-segment application processor market.

                                                                                                                                  Under the terms of the agreement, ST-Ericsson, at closing date[1], will transfer its application processor R&D activity and employees to STMicroelectronics and will then integrate the application processor in ModAp platforms for smartphones and tablets under a license agreement from ST. In addition to this, the two companies have entered into a commercial agreement to jointly promote and offer stand-alone processors and thin modems, respectively, to a broader range of customers and applications.

                                                                                                                                  The entire ST-Ericsson application processor R&D team will continue, under a transitional cost sharing model, the development of the current product generation, ensuring full continuity of ST-Ericsson’s product roadmap and full service to customers.

                                                                                                                                  [1] completion of labor law related procedures and merger control approvals, if applicable, are the sole conditions precedent to closing of the agreement.

                                                                                                                                  3.      Accelerate time-to-market

                                                                                                                                  In addition to this strategy change, the company will focus on improving R&D execution and accelerating time-to-market, while reducing the overall operating expenses. The activities will be consolidated into a significantly smaller number of sites, which will be specialized by technology as “centers of excellence.” The larger ones will also integrate a wider portion of the smartphone platform value chain, with a view to optimizing time-to-market and delivery efficiency.

                                                                                                                                  image

                                                                                                                                  This comprehensive site transformation is aimed at enhancing the effectiveness of operations and will significantly reduce the number of sites. Additionally the Company aims at reducing its SG&A expenses by about 25 percent versus 2011 by streamlining the general and administrative activities and substantially reducing positions within the top paid members of the management.

                                                                                                                                  4.      Lower the breakeven point

                                                                                                                                  As a result of all the above initiatives, the Company – subject to negotiations with work councils and employee representatives as required – foresees a global workforce reduction of 1,700 employees worldwide, including the employees that would be transferred to ST as part of the partnership announced today.

                                                                                                                                  image

                                                                                                                                  Annual savings of about $320 million are expected from the new and from the on-going restructuring plans, upon completion by the end of 2013. Total restructuring costs are estimated to be approximately $130 to 150 millionthrough completion. Specific impact on country or site level related to the plan will depend on local negotiations based on applicable legislation.

                                                                                                                                  image

                                                                                                                                  Conference call

                                                                                                                                  An analyst conference call, hosted by Didier Lamouche, president and CEO of ST-Ericsson, will be held on April 23, 2012 at 18:00pm Central European Time (CET). Call-in numbers as well as supporting slides, will be available at www.stericsson.com/investors/investors.jsp.

                                                                                                                                  About ST-Ericsson’s products

                                                                                                                                  An application processor is a complex system-on-a-chip (SoC) for smartphones and tablets that supports applications and software running on mobile devices. In a similar way that a  traditional general purpose microprocessor in a computer performs all processing and control functions, an application processor powers complex mobile devices efficiently processing functions such as user interface, graphics processing, phone calls, audio and video recording and playback and web browsing.

                                                                                                                                  ST-Ericsson is a 50/50 joint venture between STMicroelectronics and Ericsson, established in February, 2009. ST-Ericsson’s result is accounted for in accordance with the equity method.

                                                                                                                                  About ST-Ericsson

                                                                                                                                  ST-Ericsson is a world leader in developing and delivering a complete portfolio of innovative mobile platforms and cutting-edge wireless semiconductor solutions across the broad spectrum of mobile technologies. The company is a leading supplier to the top handset manufacturers and generated sales of $1.7 billion in 2011. ST-Ericsson was established as a 50/50 joint venture by STMicroelectronics (NYSE:STM) and Ericsson (NASDAQ:ERIC) in February 2009, with headquarters in Geneva, Switzerland.

                                                                                                                                  www.stericsson.com

                                                                                                                                  www.twitter.com/STEricssonForum

                                                                                                                                  Ericsson CEO Committed to ST-Ericsson Venture [Bloomberg YouTube channel, April 25, 2012]

                                                                                                                                  Hans Vestberg, chief executive officer of Ericsson AB, discusses the company’s gross margin, ST-Ericsson joint venture and opportunities in mobile broadband. He speaks with Bloomberg Television’s Manus Cranny. (Source: Bloomberg)

                                                                                                                                  STMicroelectronics Announces its Next Step in Multimedia Convergence [STMicroelectronics press release, April 23, 2012] with slides inserted as appropriate from ST-Ericsson’s CEO (Didier Lamouche) presentation to analysts

                                                                                                                                  • To offer a single application processing platform to serve all markets
                                                                                                                                  • Combining strengths with ST-Ericsson through a strategic partnership
                                                                                                                                  • ST’s consolidated results to benefit from ST-Ericsson’s new strategic direction and related savings

                                                                                                                                  Geneva, April 23, 2012

                                                                                                                                  STMicroelectronics (NYSE: STM), a global semiconductor leader serving customers across the spectrum of electronics applications, announced today the next step in its multimedia convergence strategy, which will focus on offering a single application processing platform to serve a broad range of multimedia devices like set-top-boxes, TVs, cars, smartphones and tablets.

                                                                                                                                  image

                                                                                                                                  ST signed an agreement with ST-Ericsson on the development of future application processors. Under the terms of the agreement, ST will take on ST-Ericsson’s application processor development R&D activity and then license back its technology to ST-Ericsson for integration into their ModAps (competitive integrated modem plus application processor solutions) for smartphones and tablets. Additionally, the two companies entered into a commercial agreement to jointly promote and offer stand-alone application processors and thin modems to a broader range of customers working across the entire spectrum of electronics applications.

                                                                                                                                  image

                                                                                                                                  The partnership contemplates the transfer to ST of highly skilled employees from ST-Ericsson, joining forces with the current ST R&D teams working on application processors. The agreement includes a transitional cost sharing model, followed by a royalty scheme from ST-Ericsson to ST. This transfer is subject to the completion of consultations with work councils and employee representatives, which ST currently estimates to be completed by July 1, 2012.

                                                                                                                                  The partnership with ST-Ericsson is part of a wider new strategic direction announced today by our joint venture aiming to offer, through a combined approach of development and partnerships, competitive integrated ModAps, in addition to capturing a total of $320 million of annual savings from their new and on-going restructuring plans. The expected ST-Ericsson savings will benefit ST’s consolidated results, starting in Q3 2012, through the completion of the savings plans by the end of 2013.

                                                                                                                                  “With this agreement, ST is one of very few companies to provide complete solutions based on a single application processing platform that delivers the features required by its customers and the whole ecosystem,” said Philippe Lambinet, ST’s Corporate Strategy Officer and Executive Vice President and General Manager of the Digital Sector. “By combining ST-Ericsson’s skills and deep knowledge of the smartphone and tablet business with ST’s strengths in IPs and consumer platforms, we now have capabilities that are second-to-none in mastering all of the key technologies necessary to serve the multi-screen society.”

                                                                                                                                  “This is a further major step forward in our ambition for undisputed leadership in multimedia convergence, one of the two pillars of our vision together with Sense and Power,” said Carlo Bozotti, president and CEO of STMicroelectronics. “By partnering with ST-Ericsson in such a critical and R&D-intensive domain, we are able to leverage our investments over a wider range of applications and market opportunities, while capturing significant synergies benefiting both ST-Ericsson and ST. Overall, the agreement announced today well positions ST and ST-Ericsson for future success in application processors. In addition, ST, as a shareholder of ST-Ericsson, will benefit from the joint venture’s new strategic plan and expected cost savings.”

                                                                                                                                  The closing of the deal is subject to completion of labor law related procedures and merger- control approvals, if applicable.

                                                                                                                                  EE Times Analysis: ST-Ericsson rescue plan underwhelms [April 24, 2012]

                                                                                                                                  The plan as laid out is for ST-Ericsson to be a developer of mobile device SoCs and firmware to create “platforms” based on a mix of home-grown and licensed-in IP blocks.

                                                                                                                                  Lamouche called the strategy ModApp indicating that ST-Ericsson would put together modem-plus-application processor platforms. To that end ST-Ericsson will continue to develop modem IP, which it considers its crown jewels, but the ARM-based application processor cores and about 500 jobs are being passed to STMicroelectronics. These are part of the 1,700 jobs being cut out of ST-Ericsson. We don’t know the exact number but Carlo Ferro, chief operating officer, said the application processor group represented several hundred jobs but by no means the majority of the 1,700 jobs being axed.

                                                                                                                                  … it seems inconceivable that STMicroelectronics shareholders could think it a good deal to carry ST-Ericsson for the next two years.

                                                                                                                                  Perhaps what we will see is the movement of certain technology development operations out of ST-Ericsson to create licensing opportunities, thereby allowing the remaining ModApp company to be sold off. But to have any value it has to continue to get design wins, must continue to lay off engineers and must continue to drive down cost.

                                                                                                                                  Q1 2012 Earnings Conference Call Remarks [STMicroelectronics, April 24, 2012]

                                                                                                                                  … The savings specifically related to the partnership will be achieved in two steps: 1) a transitional cost sharing model for the current generation of application processor; and 2) synergies related to a common ecosystem, which for us is ARMbased. In addition, royalties will be paid by ST-Ericsson to ST to integrate the next generation application processor into their ModAp platforms.

                                                                                                                                  Overall, this initiative is an important, first step in ST-Ericsson’s move towards leadership and improved financial returns.

                                                                                                                                  We will see measurable progress in reducing the quarterly operating losses at STEricsson in the second half of this year leading to a significant reduction in losses as we exit the year.

                                                                                                                                  Now let me give you additional details on the partnership announced with STEricsson for application processors which is part of our plans to advance our multimedia convergence strategy. It is very clear that delivering a similar experience across multiple screens is what service and content providers are looking for. So what might seem to be individual markets are actually very related markets as consumers expect their smart TV, car, smartphones and tablets to offer them the same experience.

                                                                                                                                  ST is building a unique and competitive advantage by unifying its application processor platforms. As we outlined yesterday in our press release, we are adding the wireless application processor know-how within ST-Ericsson to the extensive multimedia capabilities ST has already developed within its Digital Sector for Set top Boxes and TV.

                                                                                                                                  With respect to Wireless, total revenues, as expected, decreased significantly due to a drop in sales of new products at one of ST-Ericsson’s largest customers, in addition to the usual seasonal effect and to the continued decline of ST-Ericsson’s legacy products. In the first quarter, however, ST-Ericsson reached a milestone on the new product sales side as the NovaThorTM U8500 ModAp systems started to successfully ramp at Samsung and Sonywith smartphones from both now available on the market.

                                                                                                                                  STMicroelectronics’ CEO Discusses Q1 2012 Results – Earnings Call Transcript – Q&A part [Seeking Alpha, April 24, 2012]

                                                                                                                                  … the partnership with ST is based of course on a transfer of the application team from ST-Ericsson team to ST … also it’s based on the fact that we see now that the real opportunity to extract synergies from merging these two teams. So if the question is why not before, our consumer business was based on a proprietary microprocessor and today is based on the ARM platform. The ST-Ericsson application processor is also based on the ARM platform, as you know. So merging these two teams, we have the potential and we have the plan to extract significant synergies from the merging of the two activities.

                                                                                                                                  … of course, we also hope and we are confident that the ST-Ericsson can expand the customer base. I am very happy to see this new Galaxy phone from Samsung. It’s a great phone. Initially it was for the emerging market. Now, I understand it’s for all the markets. I saw phone in Europe now also. And of course, we also plan to fill these fabs with the new wireless customers. …

                                                                                                                                  … What ST transferred to the joint venture was a device that was called Mont-Blanc, that is now called U8500, and this device is exactly the same device that is now ramping in high volume production in one of the topline in Samsung. This was our contribution to the joint venture, and I think it was an important contribution. It is the fundamental part of the joint venture today. …

                                                                                                                                  In terms of the synergies, that we will exploit there is some positive synergies, sales opportunities and some synergies related to avoiding to do twice the similar things by unifying the resources, the teams between ST-Ericsson and ST, inside ST. We will avoid duplications, we will avoid doing things twice and will be a lot more efficient and clearly we’ll be able to save cost, internal cost inside ST, R&D cost but also cost of third-parties because if we have to do only one software boarding of the given platform, it saves a lot of money rather than to do it twice. So that’s pretty obvious and of course we will extract cost synergies.

                                                                                                                                  Now on the topline synergies, I want to say something which is the application processor market is estimated to be more than 2 billion units per year by 2015 and smartphones it’s already half of that bucket. So there is of course a great opportunity in smartphone base and to working together with ST-Ericsson of course will capture as much as we can in that particular half of the market.

                                                                                                                                  But the other half is where ST is strong, it’s consumer, its automotive, it’s industrials, it’s medical, there is a lot of applications for application processors and with this combination, we do intent to explore also topline opportunities. So that’s also part of our strategy and that’s a very important reason why we are unifying our single platforms in all the market, not on wireless, not only set top boxes, but across all segments.

                                                                                                                                  STMicroelectronics Reports 2012 First Quarter Financial Results [STMicroelectronics press release, April 23, 2012]

                                                                                                                                  Q1 2012 – Product and Technology Highlights

                                                                                                                                  ST-Ericsson

                                                                                                                                  • Products
                                                                                                                                    • Announced at Mobile World Congress, the new NovaThor™ L8540 is an LTE/HSPA+/TD-HSPA-enabled integrated smartphone platform with the powerful application processor and modem integrated on a single die, and is scheduled to sample to customers in the second half 2012.
                                                                                                                                    • Unveiled the CG2905, the industry’s first connectivity platform solution with simultaneous support for GPS and GLONASS technology, Bluetooth and FM Radio all integrated on a single 40nm device.
                                                                                                                                    • Introduced first fully integrated wireless charger for mobile phones with the PM2020.
                                                                                                                                  • Customers
                                                                                                                                    • Samsung is now a customer of the ST-Ericsson NovaThor™ platform. The new Samsung GALAXY S Advance Android-powered smartphone uses the ST-Ericsson NovaThor™ U8500system.
                                                                                                                                    • Xperia™ P, Xperia™ U, and Xperia™ sola are the first three smartphones by Sony Mobile Communications to use the NovaThor U8500 ModApsystem, combining application processing, modem and connectivity.
                                                                                                                                    • Thor™ M5780 HSPA+ modem powers the next-generation Panasonic Elugasmartphone.
                                                                                                                                    • Ontim WP8500 tablet to be the first commercially available Android-based tablet using the NovaThor U8500 system.
                                                                                                                                  • Partners/technology
                                                                                                                                    • Selected fully depleted silicon on insulator (FD-SOI) technology for use in future mobile platforms, leveraging ST technology based on Soitec SOI, which will enable enhanced performance from the ST-Ericsson NovaThor™ platform at much lower battery usage – as much as 35 percent lower power consumption at maximum performance.
                                                                                                                                    • Continued cooperation with metaio, reaching another milestone in supporting metaio’s new 3D object tracking technology.
                                                                                                                                    • Joined the W3C Core Mobile Web Platform Community Group kicked off by Facebook.
                                                                                                                                    • SRS Labs has made their TruMedia audio processing technology available on the ST-Ericsson Snowball development platform.

                                                                                                                                  ST-Ericsson Complete LTE Platform & Technical Demos – MWC2012 [ARMflix, March 2, 2012]

                                                                                                                                  Gerard Cronin from ST-Ericsson shows us their newly launched mobile devices – inlcuding Sony Xperia U & P, Samsung Galaxy S Advance – then discusses and demos the next generation complete NovaThor LTE platform.

                                                                                                                                  ST-Ericsson Clear market strategy - smartphone volumes - tablet growth -- 31-Jan-2012

                                                                                                                                  ST-Ericsson Clear market strategy -- 31-Jan-2012
                                                                                                                                  Source: ST-Ericsson Analyst & Media Briefing (Barcelona, February 28, 2012)

                                                                                                                                  [20:56] But what is also clear which segments of those markets we intend to grab. This chart is illustrating actually the growth that we are projecting between 2012 and 2014 in terms of units for the smartphone market. … dividing into four segments from the entry to the premium. The largest segments are the high-end and mid market, and that is clearly where we want to focus, without exiting fully the entry market. But clearly our mainstream focus will be on the high and the mid. If we can tactically address the premium we will do but it will not be the basis of our mainstream strategy. If we can tactically address the entry we will do but it will not be the basis of our strategy. Our strategy will be focused on the mid and the high-end.

                                                                                                                                  Why and how we will do that? We will do that via one initiative which is our unique capability, I will show that later on, to integrate the two critical silicon engines, software engines that are powering smartphone and tablet applications. The application processor and the modems. Our critical value add, our differentiating factor is our unique capability to integrate those functions into one chip. This is exactly what we want to do. [22:37]

                                                                                                                                  ST-Ericsson Focused portfolio approach -- 31-Jan-2012
                                                                                                                                  Source: ST-Ericsson Analyst & Media Briefing (Barcelona, February 28, 2012)

                                                                                                                                  [28:02] … that is what has been shown already before – the focus. The U8500 is clearly our battle horse for the coming months and weeks, and quarters. Shipping in volume, with some products, at key customers. The first product that we would like to announce is this one today: U8520 which is in fact an extension of U8500. It is a lower cost, optimized version. Basically we are reusing all the software and legacy of the U8500. …

                                                                                                                                  What we would like to announce today which is brand new: the first ModAp from the joint venture [L8540]. The first piece of silicon and the first software package built out of those two platforms: the A9540 application processor and the M7400 LTE modem. … this is the first ModAp the JV is going to bring on the market before the end of the year [also using 28nm FD-SOI]. …

                                                                                                                                  [From the press release (see much further below): The NovaThor L8540 integrates a dual-core 1.85GHz ARM Cortex-A9 processor, a powerful Imagination PowerVR™ SGX544 GPU running at 500Mhz and an LTE/HSPA+/TD-HSPA modem on a single 28nm die. Thanks to its ultra-low voltage operating mode the NovaThor L8540 extends battery life for typical smartphone usage by up to 30% compared to platforms in the market today. … scheduled to sample to customers in Q3 2012.]

                                                                                                                                  This product will be also complemented by two different flavors:
                                                                                                                                  – one, which is a low-cost version of this one to address the lower tier of the market, and to address lower price point phones; and
                                                                                                                                  – another one, which is a boosted version in [using 28nm FD-SOI] terms of performance and power consumption.

                                                                                                                                  So the strategy is really to simplify our roadmap. To develop not too many products, to develop extensively and efficiently one platform and to try to refine it, and to extend our range of products by different flavors to it. [30:20]

                                                                                                                                  [33:21] As I said before:
                                                                                                                                  – we will derive one version of this product, which we are not announcing today (we will announce it later on), which will be a low cost, streamed down version, simple technology to address the lower part of the market; and in parallel
                                                                                                                                  – we will also try to boost the performance of this platform with a new technology feature called FD-SOI … in order to address a different segment of the market, which is the highest performance area of the market, or the lower power consumption part of the market. [34:00]

                                                                                                                                  ST-Ericsson Differentiation through integration -- 31-Jan-2012
                                                                                                                                  Source: ST-Ericsson Analyst & Media Briefing (Barcelona, February 28, 2012)

                                                                                                                                  [34:15] Our know-how is not only to be able to bring to the market high-performance application processor, not only to be able to bring to the market high-performance modems, but also—essentially—to bring them together. In another form of what we call ModAps, integrated solution of modem and application processor. Why we do that? To save cost. For example we have put here, on this chart what our integrated platform brings to the customer, to the product. In terms of power saving, in terms of size saving, compared to a dual chip solution.

                                                                                                                                  It is bringing 10% power improvement, 15% size saving (which obviously in smartphone is something you want to do), 20% less components (so it means 20% less BOM). Of course that is exactly what our customers want, and by definition less workers.

                                                                                                                                  Why do I insist on that? Because I believe there is only two companies in the industry today which are capable to bring these kind of technology on the market, and we are one of the two. [35:33]

                                                                                                                                  Important note: With ModAp as one of the key differentiators the premium and somewhat even the high performance markets will be served with matching of the ST-Ericsson’s leading edge modem chips to the leading edge products of the application processor vendors as seen on the following slide of the briefing presentation.

                                                                                                                                  Now see first the information related to the Thor M7400 modem:

                                                                                                                                  “Our high-speed Thor™ modem revenue grew more than 20 percent sequentially as new HSPA+ phones continued to ramp in the market. Also in the quarter [i.e. in Q2 CY2011] we delivered first samples of our Thor M7400 LTE modem
                                                                                                                                  From: ST-ERICSSON REPORTS SECOND QUARTER 2011 FINANCIAL RESULTS [July 20, 2011]

                                                                                                                                  ST-Ericsson Thor M7400 -- 31-Jan-2012
                                                                                                                                  Source: ST-Ericsson Analyst & Media Briefing (Barcelona, February 28, 2012)

                                                                                                                                  [36:20] … you need the bricks that are extremely performing, extremely high-level. We are proud to have today probably the most brilliant product on the market. We need to bring it to the market now. This will be done this year, before the end of the year. We’ve got already an award at CES for this product.

                                                                                                                                  This is our latest LTE M7400 modem. With revolutionary architecture, meaning that we’ve decided years ago to start from a blank piece of paper and to rewrite totally what it takes to do a modem capable to have a global coverage up to 8 bands. So we are going to be ready to go forward for the next 10 years with this type of technology. Those are the critical elements that are going to be the characteristics of this product.

                                                                                                                                  Just to give you one information. And again, coming from a different industry you will understand why I am insisting on that.

                                                                                                                                  This modem is less than 50 mm2, very small. 7 mm by 7 mm piece of silicon. It contains 10 million lines of code. Why do I mention the use of this number? I will compare this number to another number which for me was before this astonishing.

                                                                                                                                  The largest supercomputer in Europe, #5 in the world, designed to manage in parallel 100 thousand processors, delivering the most powerful engine to the market in Europe 2 years ago, was powered by a middleware that comprised 1 million lines of code. This piece of silicion, 7 [mm] by 7 [mm] contains 10 millions.

                                                                                                                                  Just to calibrate you. Just to make you understand why you need incredible R&D power, incredible innovation capabilities, but incredible sense of delivery also to bring this type of performance to the market. We will do that. Takes a bit of time, takes a lot of energy, sometimes it takes some delays unfortunately, but we will bring it to the market. We are committed to do so. [39:14]

                                                                                                                                  THOR™ M7400 LTE AND HSPA+ [ST-Ericsson, excerpted on March 12, 2012]

                                                                                                                                  Paves the way for global LTE devices
                                                                                                                                  The Thor™ M7400 is a new generation of multimode mobile broadband modem. It supports the latest LTE, HSPA+ Dual Carrier and TD technologies. The small form factor and high power efficiency of the M7400 enable slim form factor smartphones, tablets and other mobile broadband enabled devices. The advanced multimode RF design offers new level of flexibility to support regional LTE FDD/TDD/HSPA bands in Asia, Europe and North America in combination with global HSPA/EDGE.
                                                                                                                                  A breakthrough in modem architecture delivers an optimum combination of hardware acceleration, for lowest power consumption, and flexible execution in software allowing feature and performance enhancements in existing hardware.
                                                                                                                                  Equipped with the latest communication interfaces it enables efficient integration between application processor and modem, including memory-less modem design when combining with an application processor.
                                                                                                                                  HIGHLIGHTS
                                                                                                                                  Truly global
                                                                                                                                    • LTE FDD/TDD, HSPA+, TD-SCDMA, EDGE
                                                                                                                                    • Radio supporting up to 8 LTE/WCDMA/GSM bands.
                                                                                                                                      A streamlined modem
                                                                                                                                    • Smallest two-chip thinmodem solution
                                                                                                                                    • Power efficient architecture
                                                                                                                                    • Highly integrated radio solution
                                                                                                                                      For all devices
                                                                                                                                    • Interfaces for data devices and smartphone application processors
                                                                                                                                    • Memory-less modem design possible when combined with an application processor
                                                                                                                                    • Complete and pre-tested reference design

                                                                                                                                  FD-SOI: A process booster for http://blog.stericsson.com/blog/2012/04/st-ericsson-general/fd-soi-a-process-booster-for-st-ericssons-next-generation-novathor-part-1/ST-Ericsson’s next generation NovaThor, Part 1 [ST-Ericsson Technology Blog, April 17, 2012]

                                                                                                                                  With the recent evolution in smartphone capabilities consumer expectations are rising fast. Ultra-fast multicore Gigahertz processors, stunning 3D graphics, full HD multimedia and high-speed broadband connectivity have become the norm for high-end devices. Consumers expect these features to be delivered in a device that is slim, light and can last for at least as long as their previous phones did. For our customers, the product designers, this translates into requirements for delivering high performance at low power in a cost effective manner. Fully Depleted Silicon On Insulator – or FD-SOI – is a technology that addresses exactly these requirements.

                                                                                                                                  At Mobile World Congress, our CEO Didier Lamouche confirmed during his speech that our next generation NovaThor platform L8540 will be using 28nm FD-SOI technology.

                                                                                                                                  FD-SOI is a technology that is available for design today and will allow existing designs in 28nm to benefit today already from significant improvements in performance and power. FD-SOI solves – with less process complexity – scaling, leakage and variability issues to further shrink CMOS technology beyond 28nm.

                                                                                                                                  FD-SOI, like FinFET, is a technology that was initially planned for 20nm nodes and below to overcome traditional bulk CMOS scaling limitations such as high leakage and device variability. However, unlike FinFET, FD-SOI process remains a low-complexity planar process very similar to the traditional CMOS bulk. This allows for a faster process development and ramp-up and an easier design porting for existing designs. The strong collaboration between ST-Ericsson, STMicroelectronics, Leti and Soitec allows us to already benefit in 28nm from the added value of FD-SOI. The three key benefits realized are leading performance, competitive speed/leakage trade-offs, and optimized power efficiency. This post looks at the performance aspectsand a later post will look at the other two benefits.

                                                                                                                                  Leading-edge performance across a wide voltage range

                                                                                                                                  The graph below compares the maximum frequency achievable for a particular critical path of an ARM Cortex™-A9 CPU core implementation, versus the supply voltage Vdd, for a slow corner process (SS) and a worst case temperature.

                                                                                                                                  Each curve represents a specific 28nm process offer.

                                                                                                                                  • 28HP-LVT is a mobile high performance bulk CMOSprocess. Targeting high CPU performance mobile applications , these processes are derived from fast process flavors with very thin gate oxide and therefore have a limited Vdd overdrive capability (~1.0V) for reliability reasons
                                                                                                                                  • 28LP-LVT is a low power bulk CMOSprocess. Traditionally used for low power mobile applications, LP processes are based on thicker transistor gate oxide supporting a higher voltage overdrive (up to 1.3V).
                                                                                                                                  • 28FDSOI-LVT is the 28nm FD-SOI process developed by STMicroelectronics. FD-SOI uses a similar gate structure as 28LP, it can also sustain a 1.3V overdrive.

                                                                                                                                  In all process, only low voltage threshold (LVT) transistors are considered. These are the one giving the highest speed performance.

                                                                                                                                  Performance comparison of 28nm technologies

                                                                                                                                  Performance comparison of 28nm technologies

                                                                                                                                  1. First observation is that FD-SOI at nominal voltages (0.9V for HP, 1.0V for both LP and FD-SOI) gives similar peak performance to HP processes and more than 35% performance improvement compared to LP at same Vdd.
                                                                                                                                  2. Furthermore, higher Vdd tolerance allows for an extra performance boost in FD-SOI that is not possible with HP processes, resulting in better overall peak performance
                                                                                                                                  3. At low operating voltages such as Vdd=0.6V, the LP process is either not functional or gives low performance. FD-SOI is equivalent or better than the HP process – but with a much lower leakage and dynamic power consumptionas we will see in a later post.
                                                                                                                                  4. Thanks to lower process variability than any bulk CMOS process, FD-SOI allows even lower operating voltages (down to 0.5V) at frequencies that are useful for non-CPU intensive processes (200MHz-300MHz) e.g. Hardware accelerated audio or video playback.

                                                                                                                                  So, over a large Vdd range (from 0.5V up to 1.3V), FD-SOI comprehensively outperforms existing bulk CMOS processes dedicated to mobile applications. This extra performance gain can be used either to increase peak performance or to operate at a lower Vdd for the same performance, saving dynamic power.

                                                                                                                                  More technical information: Planar fully depleted silicon technology to design competitive SOC at 28nm and beyond [STMicroelectronics FD-SOI whitepaper, Feb 23, 2012]

                                                                                                                                  ABSTRACT
                                                                                                                                  This document considers the challenges to obtain competitive silicon technology for the upcoming generation of System-On-Chip ICs. It suggests planar fully depleted technology deserves serious interest. After outlining some implementation choices, a number of circuit-level benchmark results as well as some important design aspects are presented. It is found that this technology combines high performance, power efficiency and cost-effectiveness, which makes it a very attractive candidate to serve the needs of mobile and consumer multimedia SOCs starting at the 28nm node and scalable down to 14nm.

                                                                                                                                  6. Perspectives

                                                                                                                                  6.1. 28nm

                                                                                                                                  With the 28nm planar FD technology, on top of preparing the work for 20nm where the kind of power/performance tradeoff enabled by planar FD will be key, we are already able to demonstrate very attractive results. We expect to sign-off designs breaking the 2GHz barrier under worst-case conditions, in a power-efficient and cost-efficient way. For lower
                                                                                                                                  performance targets, there is also the opportunity to design ultra-low-power chips that can fulfill their functional specifications using a very low Vdd, for example in the 0.6-0.8V range.

                                                                                                                                  The Process Design Kit (PDK) is available, targeting the technology to be open for risk production by mid-2012.

                                                                                                                                  6.2. 20nm

                                                                                                                                  We intend to scale our planar FD technology to 20nm, introducing a number of improvements to continue pushing the performance and retain a low power consumption. The objective is to bring up a solution that will improve on what mobile-optimized planar bulk CMOS will achieve, and will be extremely competitive vs. potential FinFET-based approaches
                                                                                                                                  for SOC – while keeping a simple and cost-efficient approach. The design rules will be compatible with 20nm bulk CMOS. This technology will bridge the gap to 14nm and provide an interesting alternative to the cost and complexity of introducing Extreme-UV and FinFET structures.

                                                                                                                                  Evaluation SPICE models are available, and full PDK is scheduled by end of 2012, with risk production for 13Q3.

                                                                                                                                  6.3. 14nm

                                                                                                                                  Based on the assessments we have performed, we are confident that the planar FD technology is shrinkable to 14nm. Silicon and buried oxide thickness will need to be reduced to within limits that wafer manufacturers and CMOS process technology can handle.

                                                                                                                                  7. CONCLUSION
                                                                                                                                  The findings exposed in this document indicate planar FD is a promising technology for modern mobile and consumer multimedia chips. It combines high performance and low power consumption, complemented by an excellent responsiveness to power management design techniques. The fabrication process is comparatively simple and is a low-risk evolution from conventional planar bulk CMOS – and there is little disruption at design level, too.

                                                                                                                                  At 28nm, we find that planar FD more than matches the peak performance of “G”-type technology, at the cost and complexity of a low-power type technology, with better power efficiency across use cases than any of the conventional bulk CMOS flavor.

                                                                                                                                  Looking further, for 20nm and 14nm, we believe planar FD will be extremely competitive with respect to alternative approaches in terms of performance and power, while being both simpler and more suited to low-power design techniques. In short, a better choice for the type of SOC we offer.

                                                                                                                                  Interview With ST-Ericsson’s Chief Chip Architect: SOCs on 28nm FD-SOI – When, Why and How [ASN #19 – FD-SOI INDUSTRIALIZATION (ST, ST-ERICSSON, SOITEC, LETI, UC BERKELEY), April 6, 2012]

                                                                                                                                  ST-Ericsson’s Chief Chip Architect Louis Tannyeres talks with ASN about the move to 28nm FD-SOI for smartphones and tablet SOCs.

                                                                                                                                  FD-SOI is a technology that is available for design today and will allow existing designs in 28nm to benefit today already from significant improvements in performance and power. FD-SOI solves – with less process complexity – scaling, leakage and variability issues to further shrink CMOS technology beyond 28nm.

                                                                                                                                  True market disruptions are only understood after the fact. We believe FD-SOI is such a disruption and a truely differentiated solution. There is a real opportunity for a FD-SOI 28nm solution and then 20nm as a key technology differentiator.  Our customers have reacted  favorably to hearing that we will be enabling FD-SOI technology in our next generation of products. And since we are enabling this technology in STMicroelectronics’ foundries, we have also minimized our risk with respect to market adoption trends.

                                                                                                                                  28nm planar FD manufacturing technology has a lot of commonalities with traditional 28nm Low-Power CMOS technology and STMicroelectronics’ strategy has been to reuse as much as possible the 28nm low-power bulk CMOS process. The Back-End part of the process is a direct copy of the 28nm bulk technology. The Front-End part of the process also relies in majority on a direct re-use of equivalent process modules from the bulk technology. Only a few steps have been optimized, added or removed. Overall, the Back-End is 100% identical to the traditional 28nm bulk low-power CMOS process, and the Front-End of Line (FEOL) has 80% in common with that same process.

                                                                                                                                  FD-SOI will be introduced into next generation products from ST-Ericsson. At this time, our first 28nm FD-SOI products are scheduled to tape out in Q3 2012 with production start anticipated in 2013.

                                                                                                                                  See also:
                                                                                                                                  Important News Comes Out of Recent FD-SOI Workshop [Advanced Substrate News, April 20, 2012]
                                                                                                                                  The End Of CMOS [SperlingMediaGroup YouTube channel, Dec 10, 2011]

                                                                                                                                  Steve Longoria, senior vice president of Soitec, talks with System-Level Design (www sldcommunity com) about why silicon on insulator (SOI) has suddenly become essential to semiconductor manufacturing and what it will mean for Moore’s Law.

                                                                                                                                  Soitec: Wafer Roadmap for Fully Depleted Planar and 3D/FinFET [Steve Longoria, Senior VP of Worldwide Business Development at Soitec on the Advanced Substrate News, April 20, 2012], the related Soitec press releases are: Soitec outlines fully depleted product roadmap for advanced planar and three-dimensional transistors [April 16, 2012] and Soitec provides affordable paths to higher performance, lower-power processors for mobile and consumer devices [April 16, 2012]
                                                                                                                                  Considerations for Bulk CMOS to FD-SOI Design Porting – Key Excerpts [Advanced Substrate News, Dec 5, 2011]
                                                                                                                                  Archive of 32nm SOI [Advanced Substrate News] for the state-of-the-art in the “classic” (i.e. partially depleted) SOI
                                                                                                                                  ST: FD-SOI for Competitive SOCs at 28nm and Beyond [Thomas Skotnicki, Advanced Devices Program Director at STMicroelectronics on Advanced Substrate News, Nov 18, 2011]

                                                                                                                                  In a mobile world, high-performance must go hand-in-hand with low-operation Vdd and low stand-by leakage. That requires different technologies. As we approach the 20/22nm node and beyond, traditional planar-bulk technologies cannot meet these requirements. The choice comes down to either a planar fully-depleted (FD) SOI solution or a FinFET solution. At STMicroelectronics, we call our flavor of planar FD-SOI UTBB, for ultra-thin body & box. As such, it leverages SOI wafers with both ultra-thin top silicon and ultra-thin buried oxide (BOX). Where more practical, we use a hybrid SOI/bulk configuration, wherein certain devices are placed in the bulk silicon that has been exposed by etching back the insulating BOX layer.

                                                                                                                                  ST has been working on FD-SOI for over 10 years. We have research programs or partnerships on 3 sites: Crolles, Leti, and IBM Albany NanoTech. We have collaborated with Soitec for wafer supply.

                                                                                                                                  The key technology elements for UTBB have been demonstrated.

                                                                                                                                  The move from R&D to an industrial process of 28nm FD-SOI technology is for us (and for our partners) an efficient and straightforward response to the world-wide competition. The extension of FD-SOI towards the 20nm and 14nm nodes is also in preparation with new boosters to further increase the performance growth rate.

                                                                                                                                  UTBB FD-SOI promises to give STMicroelectronics a significant edge in both the near term and for years to come.

                                                                                                                                  Source: ST-Ericsson Analyst & Media Briefing (Barcelona, February 28, 2012)

                                                                                                                                  [39:25] For the 8540 platform we have two ideas. One is to take down the cost, and one is to boost the performance. … to boost the performance in terms of power and speed because we need to get differentiated. The key differentiating factors of this joint venture to me are two: ST and Ericsson. Ericsson is the #1 company in the world when it comes to network technology and ST because it is one of the top 6 semiconductor companies in the world. We absolutely need to exploit that in order to beat the competition. None of our competitors have these abilities. All of our competitors, not most of them, but all of them are standard companies exploiting the same process, coming from the same place, coming from the same vendor. How can you differentiate when you are doing that? We absolutely need to differentiate this time. Which is the capability we have, to exploit the strength of our shareholder. This is one.

                                                                                                                                  We will bring to the market, and we will bring the demonstration before the end of the year an FD-SOI flavor, 8540 FD-SOI version that will demonstrate the following capability.

                                                                                                                                  ST-Ericsson Differentiation with FD-SOI Technology -- 31-Jan-2012

                                                                                                                                  Why do we want to use FD-SOI?

                                                                                                                                  … FD-SOI means Fully Depleted Silicon On Insulator technology. This is a silicon technology which is unique. Silicon on insulator means you use silicon substrates which are actually composed of six substrates (that you will not see here) with a thin layer of oxide and on top of it a thin layer of silicon. What it does, it provides perfect isolation. … Normally with the classical processes from foundries you start only with six layers of silicon. In this case we will start the silicon process with this sandwich. These six layers of silicon, the oxide and then a very thin layer of silicon on top of it on which you are going to build your active element, the transistor.  These technologies are running for a while. IBM is using it in the server since very long time for performance reason.

                                                                                                                                  [i.e. partially depleted SOI only: e.g. AMD Bulldozer on 32nm SOI, Microsoft Xbox 360 by IBM etc. for the latest. IBM launched SOI in Fishkill back in 1998. IBM, of course, has its own successful SOI foundry business, and owns the high-end gaming market, fabbing SOI-based chips for the big three: in addition to Microsoft Xbox Sony PS3 and Nintendo Wii (and the upcoming Wii U) as well. AMD followed with 130nm SOI out of Dresden in 2001. Singapore – which was first Chartered – started turning out 90nm SOI chips for IBM back in 2004, and adopted AMD’s highly touted Automation Precision Manufacturing (APM) in 2005. GlobalFoundries has been turning out 32nm SOI chips since June ’11 and at GlobalFoundries’ “Fab 8″ in upstate New York, based on IBM’s latest, 32nm SOI chip technology since January’12.]

                                                                                                                                  This is known. It has not been used yet in the mobile space for one reason, cost and complexity of the technology.

                                                                                                                                  Why can’t we use it today?

                                                                                                                                  Because of those two letters: FD. FD means fully depleted. It means we have been able with our partner ST, and their partners, to come to such a thin layer of active silicon on top of the thin layer of oxide that it provides us two things:

                                                                                                                                  1. Because of this layer is so thin you can much more easily isolate the transistor one from each other. The process is much simpler which removes the cost of SOI.
                                                                                                                                  2. Because this layer is so thin the transistor you create is naturally pinched, closed. When you put the metal gates on top of the silicon the transistor is closed. No current is flowing between the two. What that means is that you don’t need to impose an electrical signal on the gates to close the transistor. So it means you save power. In a sleep mode zero consumption at all.

                                                                                                                                  This is one of the first time in my life that I see that all ingredients as put together result only in benefits and not in penalty. Cost-wise we have about the same cost as the normal process. Process-wise simpler. Performance-wise this is what you get [see the above slide]. At 0.6V twice the performance. 35% less power dissipation. [on the same node]

                                                                                                                                  And finally: why we want to use that?

                                                                                                                                  Because the world needs to go fully depleted. … The target solution is extremely complex in terms of cost. It is not fitting for the mobile space. It is not fitting for devices that you want to sell below 10 or 20 dollars. Absolutely not. This solution is fittingWe are the only one to have this one thanks to FD technology and as soon as we ramp up the volume and will have a proprietary foundry [ST-Ericsson has a 300mm foundry which is just down the road from the special wafer – called FD-2D – supplier Soitec in Grenoble] to fullfill the volume requirements we are going to demonstrate that. We already have silicon on test vehicle. We are going to demonstrate that before the end of the year, on the base of the 8540 product. …

                                                                                                                                  What does it give to a telco?

                                                                                                                                  4 hours more high-speed browsing, 2.5 hours more HD video playback, 2 hours more HD video recording, and of course less power dissipation, longer battery etc. … We are the only one to have this technology today. We are at least 2 years before anybody else. And we can compete with the companies I told you before which have not yet demonstrated that 3D fully depleted technology that they want to put up the market, [put already] for PC and server market, [but] fitting the mobility market [an obvious reference to Intel]. … [46:10]

                                                                                                                                  image
                                                                                                                                  Source: ST-Ericsson Analyst & Media Briefing (Barcelona, February 28, 2012)

                                                                                                                                  … stabilization means stop bleeding …

                                                                                                                                  So from the application processor point of view the company is abandoning the premium/high segment of the market which had been the kind of flagship for the future before, as well as the entry segment which had also been figuring quite high on their priority list during the second half of 2011:

                                                                                                                                  Will ST-Ericsson’s New Product Programme Do The Trick? [July 28, 2011]

                                                                                                                                  Currently ST-Ericsson is moving its product line onto 45nm and is sampling three 45nm products – its 8500 platform for smartphones, its 4500 platform which is the lower-end version of the 8500, and its CG2900Bluetooth/GPS/FM combo modem.

                                                                                                                                  “We shipped the 8500 in pre-production quantities in Q2 and it will be ramping up at a number of customers this year,” Gerard Cronin, STE’s head of marketing, told me yesterday, “we have engagements on the 8500 with five out of the top ten handset manufacturers.”

                                                                                                                                  Before the end of this year, ST-Ericsson intends to sample its first 32nm device, the A9540 application processor based on Cortex A-9 which is the upgrade of the 8500 with 50% higher speed.

                                                                                                                                  Early in 2012 it intends to sample its first 28nm device – the A9600 based on the Cortex A-15.

                                                                                                                                  Asked from which foundry ST-Ericsson hopes to get 28nm from, Cronin said ST-Ericsson is part of the Globalfoundries alliance.

                                                                                                                                  However, according to Mike Bryant, CTO of Future Horizons, talking at IFS 2011 earlier this month, GloFo’s 28nm process in Dresden is running with almost zero yield.

                                                                                                                                  ST Ericsson plants center in Silicon Valley [Sept 13, 2011]

                                                                                                                                  ST Ericsson announced it has opened a small technical office in Silicon Valley as it scrambles to get ahead of the curve in the hyper competitive market for smartphone and tablet chips. It demoed its current HSPA+ products running Android here and talked about plans for LTE chips and support for Windows Phone software in the coming year.

                                                                                                                                  At the launch, ST Ericsson demoed its U8500 integrated applications processor and HSPA+ baseband running on a new board geared for software developers. The chip supported stereo 3-D graphics, 1080-progressive video playback, games with motion sensors and a browser supporting augmented reality.

                                                                                                                                  The processor uses a dual-core ARM Cortex A9 with Mali 400 graphics. In demos it supported Symbian and the Gingerbread and Honeycomb versions of Android.

                                                                                                                                  The company does not have demo-ready versions of its next-generation discrete LTE baseband [the M7400] and application processor [the A9540] announced in February and slated for production in mid-2012. The schedule is behind that of rival Qualcomm which is expected to supply the first LTE handsets. However, the ST Ericsson chip will support eight LTE spectrum bands on a single RF transceiver.

                                                                                                                                  ST Ericsson has taped out a dual-core ARM Cortex A-15 set to ship in 2012 [the A9600]. It will outgun rivals including the Omap 5 from Texas Instruments because the STE chip uses the Imagination Rogue graphics core, said Gilles Delfassy, chief executive of ST Ericsson and former head of TI’s wireless business unit. Due to use of a new vector-processing architecture, the chip should also have smaller size, cost and power consumption than its rivals, he added.

                                                                                                                                  In software, ST Ericsson is playing catch up with the shift by Nokia, a lead customer, from Symbian to Windows Phone. It does not expect to support Nokia’s first Windows Phone 7 handsets, but it has put a team in place to support Windows Phone 8 on its chips.

                                                                                                                                  “We have a road map which is very aggressive, but the key question is will we deliver on it on time,” Delfassy said.

                                                                                                                                  International Data Corp. analyst Mario Morales said smartphone makers want alternatives to integrated chips from Qualcomm, and are waiting on ST Ericsson to execute on its road map.

                                                                                                                                  To that end, Delfassy said he has replaced some engineers in ST Ericsson and brought on two executives with strength in product execution. One is a senior vice president from the former Infineon wireless group who worked closely with Apple; another is a former Sony Ericsson executive who has supervised groups of more than a thousand engineers.

                                                                                                                                  ST Ericsson has also simplified its product portfolio, pruning five modem technologies down to just one [the Thor M7400 modem]. It was the first company to deliver a 21 Mbit/second HSPA+ modem [the Thor M5780 modem], Delfassy said.

                                                                                                                                  So far ST Ericsson is not planning any quad-core products despite the fact rivals Nvidia and Qualcomm have announced plans for such parts. “We aim to be leaders in apps processors, but there is a big debate whether quad core is a case of diminishing returns,” Delfassy said.

                                                                                                                                  More information on this past strategy is available in my post:
                                                                                                                                  ST-Ericsson NovaThor SoCs for future Windows Phones from Nokia [Nov 3, 2011]

                                                                                                                                  In fact what remains out of that is the following:

                                                                                                                                  ST-Ericsson NovaThor U9500 (Nova A9500)
                                                                                                                                  45nm
                                                                                                                                  2 x ARM Cortex A9 @ 1.2GHz
                                                                                                                                  ARM Mali-400 MP1
                                                                                                                                  1 x 32-bit LPDDR2
                                                                                                                                  Now
                                                                                                                                  (Nova A9500 in production since Q3 2011)
                                                                                                                                  ST-Ericsson NovaThor U8500
                                                                                                                                  45nm
                                                                                                                                  2 x ARM Cortex A9 @ 1.0GHz
                                                                                                                                  ARM Mali-400 MP1
                                                                                                                                  1 x 32-bit LPDDR2
                                                                                                                                  Now (pre-production quantities in Q2  2011)

                                                                                                                                  while the real changes were happening in the planned SoCs for the higher end of the market, and ST-Microelectronics is to take now the decision about the timing:

                                                                                                                                  ST-Ericsson NovaThor LP9600 (Nova A9600)
                                                                                                                                  28nm
                                                                                                                                  2 x ARM Cortex-A15 @ 2.5GHz
                                                                                                                                  IMG PowerVR Series 6 (Rogue)
                                                                                                                                  Dual Memory
                                                                                                                                  (Nova A9600:
                                                                                                                                  2H
                                                                                                                                  2012 [???])
                                                                                                                                  ST-Ericsson NovaThor L9540 (Nova A9540)
                                                                                                                                  32nm
                                                                                                                                  2 x ARM Cortex A9 @ 1.85GHz
                                                                                                                                  IMG PowerVR Series 5
                                                                                                                                  2 x 32-bit LPDDR2
                                                                                                                                  (Nova A9540:
                                                                                                                                  1H 2012
                                                                                                                                  [???])

                                                                                                                                  ST-Ericson L9540 1.85Ghz ARM Cortex-A9 [Charbax YouTube channel, March 1, 2012]

                                                                                                                                  ST-Ericsson demonstrates their new L9540 1.85Ghz ARM Cortex-A9 Dual-core processor with the SGX544 GPU. They show that it can be cranked at up to 2.2Ghz and it can also automatically be down-clocked to 400Mhz when not much CPU performance is needed when for example tasks like video-playback are offloaded to another part of the System on Chip.
                                                                                                                                  Important note: With the last two application processors still on the company’s roadmap the product availabilities are unknown now, especially that of the flagship A9600 which should be repositioned (at least in time) in lieu of the announced change of moving away from the premium segment of the smartphone market as per the below announcement.

                                                                                                                                  What the company announced on MWC 2012 instead is a new part, the Novathor L8540 AP+Modem integrated SoC on a single die with the following specification:

                                                                                                                                  NOVATHOR™ L8540 [ST-Ericsson, excerpted on March 12, 2012]

                                                                                                                                  The NovaThor™ L8540 builds on the NovaThor L9540 to combine a state of the art application processor with an LTE/HSPA+/TD-SCDMA multimode modem in a single die. The platform incorporates a dual-core CPU with a powerful graphics engine, an LTE multimode modem and a full suite of connectivity in a high-performance, low-power and size and cost-optimized solution. With a small footprint, very low bill of materials and support for up to eight bands in a flexible radio solution the NovaThor L8540 further enables widespread global adoption of LTE multimode smartphones.
                                                                                                                                  FEATURES
                                                                                                                                  • Full HD 1080p camcorder, multiple codecs supported (H264 HP, VC-1, MPEG-4)
                                                                                                                                  • 3D HD video capture and display
                                                                                                                                  • High-resolution, touchscreen display support up to WUXGA
                                                                                                                                  • Simultaneous dual display support up to dual qHD
                                                                                                                                  • High-performance 3D graphics
                                                                                                                                  • Dual camera support up to 20 Mpixel and 5 Mpixel
                                                                                                                                  • Wi-Fi, Bluetooth, GNSS (GPS+GLONASS), FM and NFC enabled platform
                                                                                                                                  • Built-in USB 2.0, HDMI out
                                                                                                                                  • Support for major operating systems
                                                                                                                                  • Optional support for mobile TV standards
                                                                                                                                  TELECOM
                                                                                                                                  • LTE FDD/TDD, HSPA+, TD-SCDMA, EDGE
                                                                                                                                  • Radio supporting up to 8 LTE/WCDMA/GSM bands.
                                                                                                                                  • Power efficient architecture
                                                                                                                                  • Highly integrated radio solution
                                                                                                                                  TECHNOLOGY
                                                                                                                                  • Highly efficient, low-power ARM® dual Cortex™- A9 processor clocked at up to 1.85Ghz
                                                                                                                                  • Dual multimedia DSP for low-power, flexible media processing
                                                                                                                                  • High-bandwidth Dual LP-DDR2 interface
                                                                                                                                  • Imagination Technologies’ POWERVR™ SGX544 GPU
                                                                                                                                  • Unique audio architecture with a wide range of audio codecs supported
                                                                                                                                  • Advanced power saving architecture enabling class-leading audio and video playback time
                                                                                                                                  BLOCK DIAGRAM

                                                                                                                                  image

                                                                                                                                  Such an announcement when nothing has been announced regarding the product availability of the NovaThor L9540 two-chip SoC solution (announced a year ago) while already a single die solution based on that, the NovaThor L8540 has been announced, is quite remarkable.

                                                                                                                                  Let’s take first a look at the announcement text for some clues explaining that:

                                                                                                                                  ST-ERICSSON ANNOUNCES NEW HIGHLY INTEGRATED LTE NOVATHOR PLATFORM [ST-Ericsson press release, Feb 28, 2012]

                                                                                                                                  NovaThor L8540 integrates Thor LTE technology with powerful dual-core application processor to deliver extraordinary multimedia performance
                                                                                                                                  Barcelona, February 28, 2012 – ST-Ericsson, a world leader in wireless platforms and semiconductors, announced today the latest addition to its integrated smartphone and tablet platform portfolio. The NovaThor™ L8540 is an LTE/HSPA+/TD-HSPA-enabled integrated smartphone platform with the powerful application processor and modem integrated on a single die.
                                                                                                                                  “By adding the new NovaThor L8540 platform to our portfolio of highly integrated smartphone and tablet solutions, the L8540 takes integration of LTE platforms to the next level,” said Marc Cetto, senior vice president of smartphone and tablet solutions for ST-Ericsson. “By integrating the powerful dual-core application processor with our industry-leading LTE multimode modem we bring further size, bill of materials and power consumption savings to our customers. Consumers of next generation smartphones powered by the NovaThor L8540 will benefit from compact, power efficient devices that deliver an amazing multimedia experience.”
                                                                                                                                  The NovaThor L8540 integrates a dual-core 1.85GHz ARM Cortex-A9 processor, a powerful Imagination PowerVR™ SGX544 GPU running at 500Mhz and an LTE/HSPA+/TD-HSPA modem on a single 28nm die. Thanks to its ultra-low voltage operating mode the NovaThor L8540 extends battery life for typical smartphone usage by up to 30% compared to platforms in the market today.
                                                                                                                                  The NovaThor L8540 will provide extraordinary multimedia performance in an integrated solution, supporting 1080p video encoding and playback at up to 60 frames per second, 1080p 3D camcorder functionality, support for displays up to WUXGA (1920×1200) at 60 frames per second and support for cameras up to 20 megapixels.
                                                                                                                                  The complete platform includes pre-integrated connectivity with support for Bluetooth, GNSS (GPS+ GLONASS), FM, WLAN, WiFi Direct and NFC. With the recently released ST-Ericsson connectivity solutions, CG2905 and CW1250, the platform comes optimized for wireless radio co-existence and low power consumption.
                                                                                                                                  With support for up to eight LTE/HSPA/TD-SCDMA/GSM bands in a flexible and compact radio solution, the NovaThor L8540 addresses the need for a cost effective solution for widespread global adoption of LTE multimode smartphones.
                                                                                                                                  The NovaThor L9540 is being demonstrated by ST-Ericsson at Mobile World Congress in Barcelona. The NovaThor L8540 is scheduled to sample to customers in Q3 2012.
                                                                                                                                  Note to Editors
                                                                                                                                  The NovaThor family combines advanced application processing, a high speed mobile broadband modem and a full connectivity suite in a complete platform. The NovaThor L8540 builds on the NovaThor L9540 platform, which combines the Nova™ A9540 application processor and the Thor™ M7400 LTE multimode modem, and which has been sampling to lead customers since Q4 2011. The Nova A9540 is ST-Ericsson’s second generation application processor following the Nova A9500 which is in production since Q3 2011.
                                                                                                                                  With an extremely high level of software and hardware compatibilitybetween the generations, our customers will be able to quickly bring NovaThor L9540 and L8540-based devices to market.

                                                                                                                                  That is by the new focused portfolio approach ST-Ericsson so far has declared a fairly strong direction of aiming at the mainstream market of 2013-2014 by providing the most cost-effective, fully integrated and single die solution on the market. Moreover, due to “extremely high level of software and hardware compatibilitybetween … NovaThor L9540 and L8540” the leading smartphone vendors with a long-term view of the market could already launch their respective strategic products in 2012.

                                                                                                                                  So, what to expect in a month or so, and from which vendors?

                                                                                                                                  ST-Ericsson readies revamp, soon a takeover target (Reuters, March 14, 2012)

                                                                                                                                  ST-Ericsson is preparing to unveil a major operations revamp within two weeks, placing the troubled mobile chip venture on track for a takeover by a peer or competitor that would create a formidable rival to Qualcomm Inc.

                                                                                                                                  ST-Ericsson, a 50-50 joint venture of Sweden’s Ericsson and France’s STMicroelectronics, is seen as a “strategic asset” for potential buyers. Those could include Advanced Micro Devices Inc, Nvidia Corp, Intel Corp and Texas Instruments Inc, three sources familiar with the situation told Reuters.

                                                                                                                                  “It is the only answer to Qualcomm,” one of the sources said. “On the patent side, they are the one company that you go, ‘That makes sense.'”

                                                                                                                                  Potential suitors will likely drag out their courtship over a year or two, waiting for ST-Ericsson to first show signs of a turnaround under new Chief Executive Didier Lamouche, a restructuring expert hired late last year.

                                                                                                                                  Lamouche is due to unveil by the end of March a restructuring planthat is set to include site closures around the world and major layoffs to lower costs. The new strategy could also include seeking a partner for application processors.

                                                                                                                                  ST-Ericsson NovaThor chipsets offer one of the few integrated alternatives to Qualcomm’s market-leading Snapdragon.

                                                                                                                                  “The holy grail is to sell an integrated modem with an application processor into mainstream smartphones,” said analyst John Jackson from research firm CCS Insight.

                                                                                                                                  The current structure of ST-Ericsson would pose several challenges for a potential buyer, the sources said. For example, the business is tightly linked to STMicro’s products, particularly for its upcoming “FD-SOI” technology, which analysts expect to be a game-changer at the market’s top end.

                                                                                                                                  The technology, which brings significant power savings, has been seen as too expensive for phones, but last month ST-Ericsson promised to deliver FD-SOI chipsets — using STMicro technology in partnership with Soitec SA — for manufacturing clients to try out in smartphones this year.

                                                                                                                                  And Ericsson holds most of the venture’s telecom patents and would be a tough deal negotiator, one of the sources said.

                                                                                                                                  When Ericsson exited from a similar 50-50 cellphone venture, Sony Ericsson, the deal gave Sony Corp access to Ericsson patents; but only a few patents were sold to Sony as part of the deal. Also, loss-making Sony Ericsson was valued at roughly $3 billion in the deal. It had 2011 sales of $5.2 billion.

                                                                                                                                  ST-Ericsson has lost a total of $2 billion in its three years of operation as revenues from key clients Nokia and Sony Ericsson shrank over 70 percent during the same period.

                                                                                                                                  … Revenues in 2011 dropped to just $1.65 billion from pro forma level of $3.6 billion in 2008. …

                                                                                                                                  One of the online marketing flagships of the leading global business media conglomerate UBM plc, EE Times responded to the Reuters report by a quite different view which – due to the specific business community nature of UBM segments, particularly that of the Online Marketing Servicesmight reflect a better understanding of what is going on behind the scene(note that EE Times received the 2010 Folio Eddie Award for Best website in B2B Energy/Utilities/Engineering):

                                                                                                                                  Update: Why ST should sell ST-Ericsson to China [by Peter Clark on EE Times, March 15, 2012]

                                                                                                                                  Europe’s largest chip company STMicroelectronics NV should persuade Ericsson AB that they sell off their mobile chip joint venture ST-Ericsson, but probably to some aspiring Chinese company. That is likely to produce the quickest and most profitable – or least loss-making – exit for the two parent companies from what has become a failed project.

                                                                                                                                  A spokesperson for ST-Ericsson said the company has no comment on the Reuters report but added that STMicroelectronics and Ericsson remain committed to the joint venture and that it is a fundamental part of ST’s digital convergence strategy. It is interesting to note that ST-Ericsson is almost exactly three years old and that it may be Ericsson that wants to disengage from the joint venture and had expected ST to buy out its 50 percent.

                                                                                                                                  I don’t think ST-Ericsson or ST have that much more time. In a note in the most recent financial results ST-Ericsson said “Our shareholders will continue to support funding our transitional financial needs.” This of course begs the question of “transition to what?” and “how long will that transition take?” The fact is that ST-Ericsson is a three-year old joint venture that has acted like a boat-anchor on the progress of STMicroelectronics.

                                                                                                                                  It is true that ST-Ericsson wrapped up a lot of the previous problems of ST, specifically an overdependence on faltering Nokia as a customer, but pushing the problem into a joint-venture along with other European wireless chip business units belonging to NXP and Ericsson, was clearly not the solution.

                                                                                                                                  ST compared with Infineon

                                                                                                                                  Compare ST’s plight with that of Infineon, which got out of communications through the spin-off of its wired chips into Lantiq Deutschland GmbH and the sale of its wireless business unit to Intel. In the later part of the last decade Infineon’s CEO Peter Bauer decided to focus on some of the less glamorous but higher margin parts of the chip industry: power, automotive, industrial and security. How smart does that look now?

                                                                                                                                  NXP has a similarly focused strategy with CEO Rick Clemmer taking the company out of a number of consumer markets and now pursuing similar markets to Infineon with high-performance mixed-signal ICs. NXP of course got out of mobile wireless by selling its business to create the joint venture.

                                                                                                                                  While it is possible that a western company might want to acquire ST-Ericsson and access to patents I think greater interest might come from further east. I don’t think Texas Instruments wants to get back into the world of razor-thin margins in smartphones and the while the likes of AMD or Intel may have the appetite but are they going to sit on the sidelines too long waiting for the cuts have their effect.

                                                                                                                                  Nvidia Corp. defnitely want to compete in this area but it has its own line of ARM-based Tegra application processors and is pursuing a modem strategy based on its purchase of Icera Inc. (Bristol England) for nearly $400 million in May 2011. Surely any deal for ST-Ericsson would undermine the value of what Nvidia has already paid.

                                                                                                                                  Apple compared with China

                                                                                                                                  The other question to ask is who has the means to make something of ST-Ericsson. I think that some companies from greater China do and perhaps Apple, which has been going through a process of re-integration to give itself the ability to develop and own chips during the roll out of its mobile device strategy.

                                                                                                                                  Apple does not need all the baggage that would come with ST-Ericsson, or the ability to address multiple customers. Which is why a sale to a company such as HiSiliconTechnologies Co. Ltd. (Shenzhen, China) backed by Huawei Technologies Co. Ltd. (Shenzhen, China) might extract the highest value in the shortest time for ST and Ericsson.

                                                                                                                                  Other Chinese companies that might have an interest in ST-Ericsson could include Rockchip, Xincomm, Leadcore Technology, Nufront and Spreadtrum. Of these HiSilicon with its links with Huawei and Leadcore, aligned with Datang, would appear more likely. In Taiwan MediatekInc. (Hsinchu, Taiwan) is also a likely candidate.

                                                                                                                                  However, the geopolitical nature of any such sale of ST-Ericsson should not be underestimated. It would be a loss of face for Europe and for the west and behind the scenes moves may be made to try and keep control of the technology and jobs in the west. But what can Europe do? It is a continent of many bankrupt nations and few successful ones.The 27-nation European Union could try to lean on the likes of Apple and Intel to have them step in and save ST-Ericsson. Apple and Intel want to be good European citizens because of the size of the consumer market the European Union represents.

                                                                                                                                  Of course, such is the power of Apple in the mobile device market these days that one design win with Apple could make many of ST-Ericsson’s problems go away – at least until they are designed out again.

                                                                                                                                  Regarding the other parent’s position, i.e. that of the STMicroelectronics we have the following which is quite contradicting to both of Reuter’s and EE Times’ positions:

                                                                                                                                  STMicroelectronics’ Management Presents at UBS European Technology Conference (Presentation Transcript) [Seeking Alpha, March 13, 2012]

                                                                                                                                  STMicroelectronics NV (STM) UBS European Technology Conference Call March 8, 2012 3:45 AM ET

                                                                                                                                  Philippe Lambinet
                                                                                                                                  [Corporate Strategy Officer, Executive Vice President and General Manager of STMicroelectronics’ Digital Sector since January 2012; from February 2012 also responsible for Investor Relations and External Communications. Before that General Manager of the Home Entertainment & Displays Group for 5 years]

                                                                                                                                  The other side of the company, in the area of Multimedia Convergence, clearly the focus is going to be on turning around the ST-Ericsson business and of course it is very important for us to maintain our leadership in the area of digital consumer applications.

                                                                                                                                  … [elaboration of the ST-Ericsson’s performance over the last three years in financial terms] … So you see a $1.7 billion improvement over three years, so those three years actually included two crises, so not so bad performance considering how difficult 2009 was in our industry and how difficult the second half of 2011 was. So we are not unhappy of this situation and this is despite the cash consumption of the joint venture, ST-Ericsson joint venture which has been consuming quite a lot of cash as you all know.

                                                                                                                                  During 2012 I think the top three priorities are fixing ST-Ericsson, fixing ST-Ericsson and fixing ST-Ericsson. This is really top on our agenda and this will be the plan [for STMicroelectronics itself !]. The plan will be published by ST-Ericsson as you will know imminently. ST-E’s CEO, Didier Lamouche in Barcelona committed to deliver a plan to get back to sustainable profitability around the end of March, beginning of April. So it’s coming in few days now.

                                                                                                                                  STMicroelectronics’ Management Presents at UBS European Technology Conference (Question-and-Answer Session Transcript) [Seeking Alpha, March 13, 2012]

                                                                                                                                  Unidentified Analyst

                                                                                                                                  Thanks a lot. You mentioned the restructuring of your operations into one digital unit this year and you also mentioned how less famous Set Top Box business, you are seeing new entrants like Qualcomm and you also said your top priority is ST-Ericsson, ST-Ericsson, ST-Ericsson. Can you help us understand the possible synergies between ST-Ericsson and your digital business? Thanks,

                                                                                                                                  Philippe Lambinet

                                                                                                                                  Okay. I will do it conceptuality. This is in no way to be understood as an announcement or anything like that. But conceptually the world is moving to, and this is a message, I remember passing in every year in Las Vegas consumer electronic show. I do a speech about the trends in consumer electronics and already three years ago, I was talking about the evolution of the set top box moving to more and more open systems, internet open systems. So moving from proprietary operating system, like the CDI or NDS or open TV or like (inaudible), you know, proprietary operating systems, in to more open operating systems, such as Android and this is a fundamental trend.

                                                                                                                                  Now as this happens, in set-top box, as this happens in TV, some TV manufacturers in China, 100% of their connected TVs are developed based on Android today. It’s not 10%. It’s 100%. Some of the major TV makers in China are basing all their connected TV strategy on Android. So, we’re talking about pretty heavy change here and as these things happen and you know, the story of Android and smartphone. Isn’t that pretty obvious that there are things that we should share more and things we could do together more. I think it’s very obvious.

                                                                                                                                  So first, we do it in ST because you know, we see set-top box TV, car navigation and so we’re moving to very similar platforms, very, very similar. And I think, the obvious concept is that at some point, to be defined, there would be synergies exploited between what we’re doing in ST what we’re doing in ST-Ericsson. They are already by the way quite logical, which is not seeing because the products are different but you know, it’s pretty obvious, that’s a trend, which we will continue over the next years and that makes a lot of sense also for our customers and that makes a lot of sense for the ecosystem and because you know people — we have seen for example the set-top box business and the TV business of some of our customers being merge into one. That has happened to Samsung, now it’s under one organization, which used to be under two or three or four organization, now it’s the same boss has the TV and set-top boxes businesses in Samsung. And we see it across the market.

                                                                                                                                  So as our customers are doing it, you know we have no choice, but to do it as well so that’s what these all new organization meansand by the way, we also see some of our more traditional ASIC business for example which we’re doing for communication infrastructure, at the end of the day ASIC used to be, just give a few cells to customers and they do the design themselves; now the kind of cell you have to provide is a full as part of the system here, with the dual 8 or 9 with the 3D graphics with the video processing and that’s the base for various it design.

                                                                                                                                  So the world of ASIC is also changing; it is also aligning towards this kind of application process and platform, so that’s also why our ASIC business has been included inside the digital sectorbecause that’s side of the business also.

                                                                                                                                  Now when I mention Qualcomm entering the TV business, I didn’t mention them entering the set-top business, so I just want to back on your point. The set-top box business has certain characteristics in terms of fragmentation, in terms of security which are very particular and not everybody can enter that market and you know that’s one area of difficulty for the Taiwanese, but also for some of our American competitors like Marvell or Qualcomm who would love to enter set-top box. Broadcom and us have some particular security technologies which are extremely tough to master and which are very important for content protection and are essential.

                                                                                                                                  Now we believe by the way, security technologies will become important in many other businesses which content protection is very important. So actually that’s why I went very fast in some of my slides, but clearly data protection, security is an area for ST of traditional strength and we intend to leverage that strength in many other businesses. It’s very clear that the hackers, terrorists and industrial spies are driving a need for higher security levels in every system that’s true for a TV and set-top box, but that’s also true for a smartphone, for a router and for any devices. So it’s very important for us to use that competitive advantage in many marketsand again here we are in advance compared to many of our competitors.

                                                                                                                                  From that I will conclude that neither Ericsson (as per their spokesman response to EE Times) nor ST (as per their EVP and CSO views presented above) will sell its investment in ST-Ericsson. For me the much more logical likelihood is that large industrial investors will join the joint venture thus providing the needed additional capital.

                                                                                                                                  Anyway when the new CEO will deliver the new restructuring plan by the end of March we will probably know everything about the new investors from the semiconductor sector who will back that plan. The crucial question now is the customer support, i.e. which smartphone vendors in what way could back the restructuring plan by their NovaThor platform commitments. Here are certain clues:

                                                                                                                                  NOKIA SELECTS ST-ERICSSON AS SUPPLIER FOR FUTURE WINDOWS PHONE DEVICES [ST-Ericsson press release, Nov 2, 2011]

                                                                                                                                  NovaThor™ platform to enable Nokia to extend Windows Phone devices to new price points and geographies

                                                                                                                                  Geneva, Switzerland, November 2, 2011 – Nokia has selected ST-Ericsson as a supplier for future devices it plans to introduce based on the Windows Phone mobile platform.

                                                                                                                                  “We are pleased to have been selected by Nokia as a key partner for Windows smartphones, in line with our goal to be present in all segments and major operating systems,” said Gilles Delfassy, president and CEO of ST-Ericsson. “Our NovaThor platforms continue to gain traction as they enable customers to bring great smartphones to the market.”

                                                                                                                                  which goes back to a year earlier agreement as well:
                                                                                                                                  ST-ERICSSON AND NOKIA JOIN FORCES TO DRIVE TD-LTE IN CHINA [Nov 10, 2010]

                                                                                                                                  ST-Ericsson, a world leader in wireless platforms and semiconductors, and Nokia, the world’s leading provider of mobile devices and solutions are developing pioneering TD-LTE demonstration devices for China Mobile.

                                                                                                                                  At the Shanghai Expo, Nokia and ST-Ericsson demonstrated video streaming and other multimedia services on a TD-LTE Nokia Booklet containing ST-Ericsson’s M700 TD-LTE modem. ST-Ericsson’s LTE modems, which can download data at speeds of up to 100 Mbps, enable mobile subscribers to enjoy high-definition video streaming, video conferencing, online gaming, rapid file transfers and other demanding multimedia services.

                                                                                                                                  China Mobile is trialing TD-LTE. Globally the technology is referred to as LTE TDD, which has a wide interest from operators around the world.

                                                                                                                                  “Although LTE is still in its infancy, this sophisticated technology has the potential to bring a raft of compelling high-speed multimedia services to hundreds of millions of consumers all over the world,” said Heikki Koivu, Vice President, TD-SCDMA Business Team, Nokia. “Our co-operation with ST-Ericsson will enable us to demonstrate LTE capable devices and experiences as TD-LTE is developing towards commercial maturity”

                                                                                                                                  “After driving development of both LTE and TD-based mobile technology for several years we are now ready to supply market-leading TD-LTE solutions,” said Pascal Langlois, Senior Vice President, Chief Sales and Marketing Officer of ST-Ericsson. “Our co-operation with Nokia, the world’s number one mobile phone supplier, will strengthen our ability to support mobile operators deploying LTE.”

                                                                                                                                  Notes to Editors
                                                                                                                                  Nokia and ST-Ericsson announced a partnership in late 2009 in the TD-SCDMA market
                                                                                                                                  , which has since resulted in the launch of several devices in China.

                                                                                                                                  From all that Nokia is clearly one of those absolutely committed vendors to the NovaThor platform! (And please note as well that the new CEO starting the Nokia restructuring was already at the helm during that announcement!)

                                                                                                                                  Stephen Elop: Nokia Lumia coming to China on March 28th [engadget, March 12, 2012]

                                                                                                                                  China recently greeted its first Windows Phone (on pre-order, anyway), but if Stephen Elop has his way, Nokia will be hot on HTC’s heels. The company’s CEO has revealed that Nokia will unleash its Lumia handsets upon the People’s Republic on March 28th. While Elop offered no clues to suggest which models will be available, recent regulatory approvals hint that the Lumia 800 and 710 are both top candidates — though personally, we’d be shocked if the Lumia 610 didn’t rear its head sooner rather than later. Both China Telecom and China Unicom are said to be partners with Nokia, which is undoubtedly eager to offer something other than Symbianto its Chinese fan base.

                                                                                                                                  Engadget Chinese (translated), Tech in Asia

                                                                                                                                  source21st Century Business (translated)

                                                                                                                                  China Mobile to Launch TD-SCDMA Windows Phone [Marbridge Daily, March 9, 2012]

                                                                                                                                  Pan Zhiyong, general manager of China Mobile’s (NYSE: CHL; 0941.HK) Guangzhou branch, disclosed in a recent interview that China Mobile will soon release a TD-SCDMA Windows Phone. As to the question of whether the phone will be a Nokia Lumia series or an HTC brand Windows phone, Pan would not provide further comment.

                                                                                                                                  China market: Nokia to launch Windows Phone 7.5 smartphones [DigiTimes, March 16, 2012]

                                                                                                                                  Nokia will launch Windows Phone 7.5 (Tango) Lumia series smartphones in the China market on March 28 through cooperation with China Unicom, China Telecom and China Mobile. WCDMA, CDMA and TD-SCDMA versions will all be available matching the specifications of each carrier’s network, according to industry sources.

                                                                                                                                  Windows Phone “Tango” officially launches in China on March 21 [liveside.net, March 14, 2012]

                                                                                                                                  Microsoft China has recently sent out invitations to media outlets for their Windows Phone 7.5 launch event. This will mark the official entrance of Microsoft’s Windows Phone operating system into the mainland Chinese market. The event is set to be held in Beijing on March 21st, check out the invitation below:

                                                                                                                                  While the launch event is set to be in a week’s time, HTC had went ahead to become the first OEM to launch the HTC TITAN(called HTC Triumph in China) in the Chinese market. The device was released yesterday, March 14th, and is said to come pre-loaded with Windows Phone “Tango”.

                                                                                                                                  Following the launch event, Nokia’s CEO and President Stephen Elop is also set to hold an official launch event on March 28. Elop had announced that Nokia will be launching their Lumia range of devices for the mainland Chinese market during the event. Nokia is expected to launch 3 Lumia devices during the event, however the exact devices are still currently unknown. Rumors have been floating around that Nokia will be launching the Lumia 610S, Lumia 719C, and the Lumia 800C with China Telecom, and the devices are expected to be able to run on the carrier’s CDMA2000 network. As at Q4 2011, Nokia owns 16.1% of the Chinese mobile phone market, placing them second just behind Samsung.

                                                                                                                                  Microsoft opened app submissions to Chinese developers back in October 2011, and has recently put up the mainland Chinese version of the Windows Phone marketplace website. However the marketplace itself has not yet opened to Chinese customers on their Windows Phone devices. It is expected that the marketplace will open soon after the launch.

                                                                                                                                  Other vendors with ST-Ericsson NovaThor platform:

                                                                                                                                  ST-Ericsson U8500, now in a range of Smartphones on the market [Charbax blog, March 6, 2012]

                                                                                                                                  ST-Ericsson demonstrates the range of some of the devices announced that use the ST-Ericsson NovaThor U8500 that includes ST-Ericsson HSPA+ connectivity. They also announced the U8520 and the U9540 L8540 LTE platforms. [The U8520 is a lower power, higher frequency and lower BOM cost version of the U8500. As such it is the life extender for the U8500. The frequency and the node on which it will be produced (instead of the 45nm of U8500) are not yet announced. U8520 is sampling now and will be in production in H2 2012.]

                                                                                                                                  http://www.stericsson.com/press/STER-027ChinesePressBackgrounder_English_2011.pdf
                                                                                                                                  [2010. okt. 25. or 2011. febr. 7.]

                                                                                                                                  … By combining ST-Ericsson Nova™ A9500 dual core application processor with the ST-Ericsson Thor™ M6718 TD-HSPA thin modem, ST-Ericsson customers in China can develop an advanced smartphone compatible with China Mobile’s 3G network, enabling consumers to enjoy immersive 3D graphics, fast web browsing, high-definition multimedia as well as other innovative and advanced applications with exceptional performance and battery life. …

                                                                                                                                  POWERFUL NEW ST-ERICSSON PLATFORM MAKES DEBUT IN HTC SENSATION Z710T [ST-Ericsson press release, Sept 26, 2011]

                                                                                                                                  China Mobile’s latest TD smartphone based on state-of-the-art NovaThor™ platform

                                                                                                                                  China Mobile and HTC have launched the first smartphone to be based on ST-Ericsson’s powerful new NovaThor platform. The Sensation Z710t offers consumers immersive 3D graphics, fast web browsing, high-definition multimedia and the ability to run several advanced Androidapplications simultaneously with exceptional performance and battery life.

                                                                                                                                  Underneath the hood of the HTC Sensation Z710t are ST-Ericsson’s Nova™ A9500 dual-core application processor, running at 1GHz, and ST-Ericsson’s Thor™ M6718modem, which can connect to China Mobile’s extensive TD-SCDMA network, enabling consumers to get online at broadband speeds across much of China. The HTC Sensation Z710t also sports an eight megapixel camera and a 4.3 inch display.

                                                                                                                                  “ST-Ericsson’s new NovaThor platform has enabled us to develop a world-class Android smartphone for China Mobile’s TD network,” said Matthew Costello, Chief Operating Officer of HTC. “Consumers are going to be captivated by the fast and responsive multimedia experience delivered by the HTC Sensation Z710t.”

                                                                                                                                  “The launch of this exceptional HTC smartphone highlights both the capabilities of our NovaThor platform family and our wholehearted support for China Mobile’s drive to bring world-leading smartphones onto its TD network,” said Pascal Langlois, senior vice president, chief sales and marketing officer of ST-Ericsson. “Consumers and Android application developers alike will relish the raw power and 3D graphical capabilities of the HTC Sensation Z710t.”

                                                                                                                                  Notes to editors
                                                                                                                                  ST-Ericsson
                                                                                                                                  has been developing platforms for the Chinese 3G technology TD-SCDMA since 2003.

                                                                                                                                  ST-Ericsson NovaThor smartphone platforms combine dual-core application processors with high-speed modems.

                                                                                                                                  ST-Ericsson Current Thor and NovaThor adaptations -- 31-Jan-2012
                                                                                                                                  Source: ST-Ericsson Analyst & Media Briefing (Barcelona, February 28, 2012)

                                                                                                                                  ST-ERICSSON THOR M5780 HSPA+ MODEM POWERS NEW PANASONIC SMARTPHONE [ST-Ericsson press release, Feb 28, 2012]

                                                                                                                                  ST-Ericsson, a world leader in wireless platforms and semiconductors, announced today that Panasonic selected the power-efficient Thor™ M5780 thin modem for their newest ultra slim smartphone.

                                                                                                                                  The ST-Ericsson Thor M5780 is a very compact smartphone-optimized modem configuration which inherits the proven HSPA+ modem technology from its predecessors. The small modem size helped Panasonic deliver an ultra slim smartphone equipped with a 4.3-inch screen.

                                                                                                                                  “The Thor M5780 represents a further improvement of 21Mbps thin modems for smartphones in terms of size, thermal performance and cost structure which is why we believe Panasonic selected our modem to power their newest smartphone,” said Staffan Iveberg, senior vice president, thin modem solutions division for ST-Ericsson. “The success of innovation has led to a 35% size reduction of M5780 compared to our first generation HSPA+ modem. The modem is capable of delivering 21Mbps downstream and 5.76Mbps upstream simultaneously and needs no separate flash memory. With all of these features, Panasonic had everything they needed to make a great high speed broadband-enabled smartphone.”

                                                                                                                                  ST-Ericsson announces that Panasonic smartphone will be first to use Thor M5780 HSPA+ modem [by Magnus Karlberg on ST-Ericsson blog, Feb 29, 2012]

                                                                                                                                  ST-Ericsson was a pioneer with its Thor™ modems on the HSPA+ 21 market. I’m very pleased to see that the market has taken off quickly and that many networks support this high speed mobile broadband.

                                                                                                                                  Of course we haven’t stopped our development on our HSPA+ portfolio since the early days, the success of innovation has led to even smaller and more power efficient modems. Today, I can share the exciting news that we power a new Panasonic smartphone device for this market with our latest HSPA+ 21Mbps modemthe M5780.

                                                                                                                                  The Thor M5780 represents a further improvement of 21Mbps thin modems for smartphones in terms of size, thermal performance and cost structure which is why we believe Panasonic selected our modem to power their newest smartphone. The Thor M5780 is actually 35% smaller compared to our first generation HSPA+ modem.

                                                                                                                                  I really like the design of the new Panasonic device, it’s an ultraslim smartphone with 4’3 screen powered with excellent mobile broadband capabilities!

                                                                                                                                  Related to the current HSPA+ only single die U8500 NovaThor platform:

                                                                                                                                  “Our high-speed Thor™ modem revenue grew more than 20 percent sequentially as new HSPA+ phones continued to ramp in the market. Also in the quarter [i.e. in Q2 CY2011] we … conducted field trials on our NovaThor™ U8500 platform with several customers. We are very pleased with our increasing progress on the NovaThor U8500, although initial volumes will be somewhat lower due to reduced demand at certain customers.
                                                                                                                                  From: ST-ERICSSON REPORTS SECOND QUARTER 2011 FINANCIAL RESULTS [July 20, 2011]

                                                                                                                                  NOVATHOR U8500 [ST-Ericsson, excerpted on March 12, 2012]

                                                                                                                                  The best smartphone platform
                                                                                                                                  The NovaThor™ U8500 is the first integrated smartphone platform to offer the latest SMP (Symmetric Multi-Processing) dual core technology in a high-performance, low-power and cost-optimized solution for multiple operating systems. The U8500 is the first mobile platform with full High-Definition 1080p progressive-scan camcorder capabilities. With its combination of a dual-core SMP processor and a high-end 3D graphics accelerator, the U8500 enables a full web-browsing experience for next-generation smartphones.
                                                                                                                                  FEATURES
                                                                                                                                  • Full HD 1080p camcorder, multiple codecs supported (H264 HP, VC-1, MPEG-4)
                                                                                                                                  • High-resolution, touchscreen display support up to WXGA
                                                                                                                                  • Simultaneous dual display support up to dual XGA
                                                                                                                                  • High performance 3D graphics
                                                                                                                                  • Dual camera support with Integrated ISP 20 Mpixel and 5 Mpixel
                                                                                                                                  • Wi-Fi, Bluetooth, GPS and FM enabled platform
                                                                                                                                  • Built-in USB 2.0, HDMI out
                                                                                                                                  • Support for multiple operating systems
                                                                                                                                  • Optional support for mobile TV standards

                                                                                                                                  TECHNOLOGY
                                                                                                                                  • Highly efficient, low-power ARM dual Cortex™- A9 processor
                                                                                                                                  • Dual multimedia DSP for low-power, flexible media processing
                                                                                                                                  • High-bandwidth LP-DDR2 interface
                                                                                                                                  • ARM® Mali™ 400 GPU and NEON®CPU extensions
                                                                                                                                  • State-of-the-art HSPA (High-Speed Packet Access) Release 7 [HSPA+] modem
                                                                                                                                  • Unique audio architecture with a wide range of audio codecs supported
                                                                                                                                  • Advanced power saving architecture enabling class-leading audio and video playback times

                                                                                                                                  U8500 BLOCK DIAGRAM

                                                                                                                                  NovaThor U8500 block diagram - ST-Ericsson

                                                                                                                                  ST-ERICSSON NOVATHOR U8500 POWERS NEW SAMSUNG GALAXY S ADVANCE [ST-Ericsson press release, Feb 28, 2012]

                                                                                                                                  New Samsung Android-powered smartphone is first from company to use ST-Ericsson NovaThor platform

                                                                                                                                  Today at Mobile World Congress, ST-Ericsson, a world leader in wireless platforms and semiconductors, announced that Samsung is now a customer of the ST-Ericsson NovaThor™ platform. The new Samsung GALAXY S Advance Android-powered smartphone, announced last month, selected the ST-Ericsson NovaThor™ U8500.

                                                                                                                                  “The U8500 platform’s high level of integration enables handset manufacturers to produce small, slim yet powerful smartphones – like the Samsung GALAXY S Advance,” said Marc Cetto, senior vice president of smartphone and tablet solutions for ST-Ericsson. “Samsung is known for their powerful smartphones, strong design aesthetics, and solid user experiences and we could not be more pleased that they selected ST-Ericsson as a partner.”

                                                                                                                                  The NovaThor U8500 smartphone platform offers dual core technology in a low-power but high-performance solution and integrates a state of the art HSPA+ modem and application processor featuring dual-core ARM® Cortex™-A9. Using the U8500, the Samsung GALAXY S Advance smartphone features 1GHz processor speed, HSPA 14.4 connectivity, a 5-megapixel camera and a 4.0-inch Super AMOLED display.

                                                                                                                                  The Samsung GALAXY S Advance is expected to be available in March in parts of Europe, Asia, China and Latin America.

                                                                                                                                  Samsung offers style and power with GALAXY S Advance [Samsung Mobile press release, Jan 30, 2012]

                                                                                                                                  Latest addition to Android-powered GALAXY portfolio delivers sleek curved design with Dual Core performance
                                                                                                                                  Samsung Electronics Co., Ltd, a global leader in digital media and digital convergence technologies, today announced the launch of the Samsung GALAXY S Advance. Designed for those who define themselves by the phone they carry, the GALAXY S Advance strikes a balance of style, power and performance. It will be available in Russia starting from February, and then be gradually rolled out in CIS, Europe, Africa, Middle East, Southeast and Southwest Asia, Latin America and China.
                                                                                                                                  “The GALAXY S Advance adds to the successful track record of the GALAXY smartphone range with a phone that combines power and style with all the versatility of Samsung’s Hub services,” said JK Shin, President of IT & Mobile Communications Division at Samsung Electronics.
                                                                                                                                  Dual Core performance, curved design and Super AMOLED display
                                                                                                                                  Powered by a dual core 1.0 GHz processor and HSPA 14.4 Mbps connectivity, the GALAXY S Advance has been built with power and connectivity in mind, delivering great versatility and a highly responsive user interface for easy multitasking. Application start-ups are faster with virtually no lag time, and the user experience is boosted with smoother screen transitions, faster image processing, and enhanced Web download and browsing performance.
                                                                                                                                  The GALAXY S Advance’s curved glass design enhances handling of the phone and fits the user’s facial form easily and naturally. Its 4.0” Super AMOLED display provides the stunning visuals users have come to expect of Samsung GALAXY smartphones, offering unparalleled color reproduction and ensuring that photos and videos captured with the device’s 5MP camera can be enjoyed with vivid clarity.
                                                                                                                                  The Samsung user experience
                                                                                                                                  Running on Android Gingerbread and featuring Samsung’s TouchWiz user interface, the GALAXY S Advance enables users to stay connected through the Samsung Hubs and ChatON services. Music Hub offers a full music store experience with access to over 11 million tracks and the ability to fully personalize users’ own music catalogues. Readers Hub offers access to over 2.3 million e-books, 3,500 magazine and 200 newspaper titles; while the hugely popular Game Hub offers access to thousands of catalogued games supplemented by gamer news feeds and news.
                                                                                                                                  Samsung’s cross platform communication service, ChatON connects all phone users into a single community using phone numbers instead of usernames and passwords, provides aneasy instant messaging, group chatting and sharing of content in multiple formats—images, video, voice, contacts, calendar—to make messaging simpler and more intuitive than ever.
                                                                                                                                  The GALAXY S Advance also features Find My Mobile, a unique lost-phone management system that ensures secure phone data encryption in case of phone loss, and that enables users to trace their lost phone directly via the Web or even delete the device’s data remotely.
                                                                                                                                  For multimedia content and more detailed information, please visit www.samsungmobilepress.com
                                                                                                                                  Samsung Galaxy S Advance Product Specifications:
                                                                                                                                  Network
                                                                                                                                  HSPA 14.4 Mbps 850 / 900 / 1900 / 2100
                                                                                                                                  EDGE / GPRS 850 / 900 / 1800 / 1900
                                                                                                                                  Processor
                                                                                                                                  1 GHz Dual-Core Processor
                                                                                                                                  Display
                                                                                                                                  4.0” WVGA (480×800) Super AMOLED display
                                                                                                                                  OS
                                                                                                                                  Android 2.3 (Gingerbread)
                                                                                                                                  Camera
                                                                                                                                  Main (Rear) : 5 Megapixel Auto Focus Camera with LED Flash
                                                                                                                                  Sub (Front) : 1.3 Megapixel Camera
                                                                                                                                  Video
                                                                                                                                  Codec : MPEG4, H.263, H.264, WMV, DivX, VC-1
                                                                                                                                  Recording / Playback : 720@30 fps
                                                                                                                                  Audio
                                                                                                                                  Codec : MP3, AAC, AAC+, eAAC+, WMA, AC3
                                                                                                                                  Music Player with SoundAlive
                                                                                                                                  3.5 mm Ear Jack, Stereo FM Radio with RDS
                                                                                                                                  Value-added

                                                                                                                                   

                                                                                                                                  Features
                                                                                                                                  – Samsung TouchWiz / Samsung L!ve Panel UX
                                                                                                                                  – Samsung Apps
                                                                                                                                  – Samsung Kies 2.0 / Samsung Kies air / AllShare
                                                                                                                                  ChatON (Downloadable via Samsung Apps)
                                                                                                                                  Readers Hub (Downloadable via Samsung Apps)
                                                                                                                                  Music Hub
                                                                                                                                  Game Hub
                                                                                                                                  *Service availability differs by region
                                                                                                                                  GoogleTMMobile Services
                                                                                                                                  – Android Market™, Gmail™, YouTube™, Google Maps™,
                                                                                                                                  Syncing with Google Calendar™
                                                                                                                                  – Polaris Office
                                                                                                                                  – Find My Mobile
                                                                                                                                  – A-GPS
                                                                                                                                  Connectivity
                                                                                                                                  Bluetooth® technology v 3.0 High Speed
                                                                                                                                  USB 2.0
                                                                                                                                  Wi-Fi 802.11 a / b / g / n
                                                                                                                                  Sensor
                                                                                                                                  Proximity, Accelerometer, Geomagnetic, Light, Gyroscope
                                                                                                                                  Memory
                                                                                                                                  8 / 16 GB User memory + 768 MB (RAM)
                                                                                                                                  MicroSD (up to 32 GB)
                                                                                                                                  Size
                                                                                                                                  123.2 x 63 x 9.69 mm, 120 g
                                                                                                                                  Battery
                                                                                                                                  Standard battery, Li-ion 1.500 mAh

                                                                                                                                  TWO NEW XPERIA SMARTPHONES FROM SONY MOBILE COMMUNICATIONS POWERED BY ST-ERICSSON NOVATHOR PLATFORM [ST-Ericsson press release, Feb 26, 2012]

                                                                                                                                  Xperia P and Xperia U join growing list of smartphones that have NovaThor U8500 inside

                                                                                                                                  ST-Ericsson, a world leader in wireless platforms and semiconductors, announced today that two new phones from Sony Mobile Communications will be leveraging the ST-Ericsson NovaThor™ U8500 platform. The Xperia™ P and Xperia™ U are the first two smartphones by Sony Mobile Communications to use the NovaThor complete mobile platform solution, combining application processing, modem and connectivity.

                                                                                                                                  “We have added Sony Mobile Communications to the growing list of smartphone manufacturers that have selected our NovaThor U8500 platformto power their newest smartphones,” said Marc Cetto, senior vice president of smartphone and tablet solutions for ST-Ericsson. “With its combination of a dual-core SMP processor and a high-end 3D graphics accelerator, the NovaThor U8500 enables a fast and smooth mobile web-browsing experience together with high definition multimedia creation and consumption on powerful next-generation smartphones like Xperia P and Xperia U from Sony.”

                                                                                                                                  Key features for Xperia P

                                                                                                                                  • 4” Reality Display with WhiteMagic technology powered by Mobile BRAVIA Engine for an ultra-bright and power efficient viewing experience.
                                                                                                                                  • 1 GHzdual-core processor for super fast performance with 16GB flash storage.
                                                                                                                                  • 8MP camera with unique fast capture and HD recording.
                                                                                                                                  • NFC enabled with easy HDMI and DLNA connectivity to share content.
                                                                                                                                  • Launches on Android platform 2.3 (Gingerbread), upgrade to Android platform 4.0 (Ice Cream Sandwich) during the second quarter of 2012.

                                                                                                                                  Key features for Xperia U

                                                                                                                                  • 3.5” Reality Display powered by Mobile BRAVIA Engine.
                                                                                                                                  • 1 GHzdual-core processor for super fast performance.
                                                                                                                                  • 5MP camera with unique fast capture and HD recording.
                                                                                                                                  • Crisp and loud listening with xLoud™ and 3D surround sound audio technology.
                                                                                                                                  • Launches on Android platform 2.3 (Gingerbread), upgrade to Android platform 4.0 (Ice Cream Sandwich) during the second quarter of 2012.

                                                                                                                                  Xperia P and Xperia U will launch during the second quarter.

                                                                                                                                  Notes to Editors

                                                                                                                                  The NovaThor family combines advanced application processing, a high speed mobile broadband modem and a full connectivity suite in a complete platform. The NovaThor U8500 integrates a dual-core 1GHz Cortex A9 processor, an ARM Mali-400 GPU and a HSPA+ modem in a single die.

                                                                                                                                  Another Sony smartphone powered by the NovaThor U8500 [ST Ericsson technology blog, March 15, 2012]

                                                                                                                                  The new Xperia™ sola, announced by Sony Mobile Communications this week, is the latest addition to its portfolio of Android powered Xperia smartphones – and the latest smartphone to be powered by the ST-Ericsson NovaThor™ U8500 platform.

                                                                                                                                  With its combination of a dual-core SMP processor and a high-end 3D graphics accelerator, the NovaThor U8500 enables a fast and smooth mobile web-browsing experience together with high definition multimedia creation and consumption on powerful next-generation smartphones.

                                                                                                                                  The Xperia sola also features a new amazing technology called floating touch, giving people the ability to control the smartphone without even touching it. Check out the video below to check out the phone and for a brief demonstration of floating touch technology.

                                                                                                                                  Sony Xperia sola is the latest Xperia smartphone, featuring the brand new amazing technology called floating touch. Floating touch gives you the ability to control the smartphone with out even touching it. Get a full browser experience where you can hover above links in your Xperia sola with floating touch, and check out the magic live wall paper reacting to floating touch.

                                                                                                                                  The new Xperia sola joins growing list of smartphones that have the NovaThor U8500 inside. And just last month at Mobile World Congress, we announced that the Xperia P and Xperia U also use the NovaThor U8500platform.

                                                                                                                                  The Xperia sola will be available to consumers globally in black, white and red in the second quarter.

                                                                                                                                  Zenithink ST-Ericsson U8500 based 3G 1024×600 Tablet [Charbax YouTube channel, March 14, 2012]

                                                                                                                                  Zenithink shows their new ST-Ericsson U8500 Dual-core ARM Cortex-A9 based tablet designed by Ontim with a built-in 3G HSPA+ modem, bluetooth, WiFi, and a decent 1024×600 screen resolution. The price is $150 for an order of at least 1000 units. They also show a $65 AmLogic based Android set-top-box with a built-in DVB-T tuner.

                                                                                                                                  ST-ERICSSON NOVATHOR U8500 POWERS NEW TABLET FROM ONTIM [ST-Ericsson press release, Feb 27, 2012]

                                                                                                                                  ST-Ericsson, a world leader in wireless platforms and semiconductors, announced today at Mobile World Congress that Ontim has selected the NovaThor U8500 platform for its newest tablet. This tablet will be the first to be commercially available based on the NovaThor U8500 platform.

                                                                                                                                  “Ontim has selected the NovaThor U8500to power their newest Android-based tablet,” said Marc Cetto, senior vice president of smartphone and tablet solutions for ST-Ericsson. “ST-Ericsson’s U8500 platform integrates a state of the art HSPA+ modem and application processor featuring dual-core ARM® Cortex™ A9. As a result, the U8500 can easily power the Ontim tablet five-megapixel built-in camera and high-definition digital camcorder as well as enable a full web-browsing experience.”

                                                                                                                                  “The new Ontim WP8500 tablet is the first seven-inch handheld tablet delivering an outstanding user experience and performance thanks to the NovaThor U8500,” said Bob Huo, CEO of Ontim. “We were able to bring this tablet to market quickly by working closely with ST-Ericsson engineering and the maturity of the solution.”

                                                                                                                                  In addition to the U8500, the Ontim WP8500 tablet also leverages the ST-Ericsson CG2900 and CW1100 connectivity solutions.

                                                                                                                                  The seven-inch Ontim WP8500 will launch with Android 4.0 (Ice Cream Sandwich). The Ontim WP8500 tablet is expected to be available in March.

                                                                                                                                  http://www.advancedsubstratenews.com/2012/03/important-news-comes-out-of-recent-fd-soi-workshop/

                                                                                                                                  http://semimd.com/blog/2012/03/12/st-ericsson-adopts-fd-soi-for-mobile-products/

                                                                                                                                  Qualcomm decided to compete with the existing Cortex-A5/Krait-based offerings till the end of 2012

                                                                                                                                  Update: Nvidia Tegra 3 under strong pressure from S4 Pro, say Taiwan makers [DIGITIMES, Dec 7, 2012]

                                                                                                                                  Snapdragon S4 Pro series processors developed by Qualcomm have brought increasing competitive pressure on Nvidia’s Tegra 3 because of its superior overall performance-cost ratio, according to Taiwan-based handset supply chain makers.

                                                                                                                                  Although Nvidia successfully landed orders for Google’s Nexus 7 and Microsoft’s Surface RT in 2012, with Microsoft reportedly planning to adopt Qualcomm’s platform for its next-generation Surface RT, while Tegra-based smartphones have only had average sales performance, Nvidia may find it difficult to continue achieving strong growth in 2013 like in 2012.

                                                                                                                                  In 2012, Nvidia received Tegra orders for smartphones including the HTC One X, LG Electronics Optimus 4X H, ZTE Era, K-Touch Treasure V8 and Fujitsu’s devices.

                                                                                                                                  Qualcomm is expected to start fierce competition against MediaTek and China-based handset chipmakers in China’s mid-range to entry-level smartphone market in the first quarter of 2013, challenging Nvidia’s plans of releasing a solution for CNY1,000 smartphones (US$160), while Qualcomm’s aggressiveness over striving orders from tablet players with its reference design, which is set to release in the first half of 2013, also places strong pressure on Nvidia, the sources noted.

                                                                                                                                  With the new Snapdragon S4 class additions announced three days ago we can make the conclusion that:
                                                                                                                                  – Snapdragon Cortex-A5 based S4 Play smartphones will get quadcore capability only in the first quarter of 2013, so the current S1 and further dual core S4 Play smartphones are to compete till the end of the year.
                                                                                                                                  – Snapdragon Krait-based S4 Plus smartphones will have mid-range LTE (in so called World Mode form) “high-volume“ versions only in the first quarter of 2013, so the current S4 Plus smartphones and similar upcoming ones are to compete till the end of the year.
                                                                                                                                  – No decision was taken for the Cortex-A5 based S4 Play TD-SCDMA smartphone market thus letting Spreadtrum and its competitors to capture the corresponding China Mobile entry market even more.

                                                                                                                                  What does it mean?

                                                                                                                                  For the last, Spreadtrum et al observation it means that Qualcomm cannot do anything yet but stand still as according to my Lowest H2’12 device cost SoCs from Spreadtrum will redefine the entry level smartphone and feature phone markets [July 26 – Aug 16, 2012] post (here on this blog) the entry level TD-SCDMA smartphone market is moving from sub $150 to sub $100 in the H2 2012.

                                                                                                                                  For the other two observations we should first understand what has been delivered so far with Cortex-A5 and Krait based SoCs by the smartphone vendors.

                                                                                                                                  The current Cortex-A5 based Snapdragon S1 UMTS and Krait based S4 Plus UMTS and World Mode SoCs from Qualcomm were adopted by global brands so far as follows:

                                                                                                                                  image image
                                                                                                                                  Source: smartphones in PDAdb.net counted for corresponding SoCs as of Sept 28, 2012

                                                                                                                                  image

                                                                                                                                  Smartphones based on the new Cortex-A5 SoCs detailed above were introduced
                                                                                                                                  as shown on the chart below:

                                                                                                                                  image image

                                                                                                                                  while the introduction of the new Krait-based smartphones is shown on the above chart
                                                                                                                                  and it was for the UMTS & World mode S4 class Plus tier SoCs detailed below as follows
                                                                                                                                  (i.e. the CDMA/UMTS S4 class Plus tier SoCs were not reflected in the above chart): image

                                                                                                                                  So there were no Adreno 305 based S4 class Plus tier smartphones introduced to the market yet except a single one from HTC for November timeframe, actually with Windows Phone 8. This single fact means, however, that in October and November more such smartphones could be introduced as the HTC case shows the Adreno 305 related SoCs availability for Q4 2012. So powerful by today’s market standards yet sold at mass market prices MSM8x27 based Windows Phone 8 and Android smartphones could be available on the market from November at the latest.

                                                                                                                                  Similarly we can expect mid-tier WP8 and Android smartphones based on MSM8x30 SoCs to become available in October or November at prices which are between the latest premium smartphones like Samsung Galaxy S III or HTC One XL, and the new mass market yet “powerful” ones introduced at the same time. As you could see via the number of new premium models introduced so far (not less than 43 if you will add up the numbers attached to each type of new premium SoCs in the table above), the new premium category is well established already both in price and functionality.

                                                                                                                                  Now the global brands could safely establish the new “mid-range” and “mass-market yet powerful” segments of the smartphone market with Qualcomm capable of delivering the new Krait and UMTS—CDMA/UMTS—World Mode technologies in greater volumes than before. With the decision of postponing the availability of the new higher end LTE (World Mode) mid-range category to the Q1 2013 Qualcomm and its global brand partners are in fact letting the market to sort out in November-December the acceptable pricing below whatever MSM8930 could bring in addition to that in Q1 2013.

                                                                                                                                  Somewhat more interesting and remarkable is the case of entry level smartphones which is covered in Qualcomm’s new segmentation strategy by the S1 class Play tier (see the table above). With the decision of leaving the active formation of the new entry-level segment to competitors like MediaTek and Spreadtrum till the end of the year Qualcomm shows not only the company’s unpreparedness to compete fully in TD-SCDMA market (as was already indicated in the beginning of this post), but also a more general unpreparedness to compete with a broader China based phenomenon currently most visible via MediaTek as it was shown in my earlier:
                                                                                                                                  Core post: Boosting the MediaTek MT6575 success story with the MT6577 announcement  – UPDATED with MT6588/83 coming early 2013 in Q42012 and 8-core MT6599 in 2013 [June 27, July 27, Sept 11-13, Sept 26, 2012]. Quoting from that:

                                                                                                                                  … MediaTek 28 nanometer quad-core A7 smartphone chip MTK6588 launch time is expected to advance to the fourth quarter of this year from the first quarter of next year! Because the price is very competitive, only 18 to 20 dollars, not only quadcore smartphone prices in mainland China will immediately fell to less than 150 dollars following that, the company will also have the opportunity to break into [the market of ] first-tier [i.e. global brand] manufacturers such as Samsung. …
                                                                                                                                  Mediatek’s biggest “backer” [in terms of stock market performance] is expected to be the launch of MT6588 (quad-core A7 [with] TD-SCDMA/WCDMA) and MT6599 (8 core of the ARM [with] LTE/TD-SCDMA/WCDMA) smartphone chips in 4th quarter [of this year] and in the next year, respectively.
                                                                                                                                  … we will see in the near future more dual-core 1.7Ghz Krait-based MSM8960A [on one hand], and MSM8974 [on the other], which is same but with quad-core, rather than next to the launch of 8225Q. …
                                                                                                                                  … the fastest possible production of MediaTek quad-core mobile processor chip MTK6588 will start in October this year a small amount, quantity should not be a lot, may be available only to large client proofing purposes. Rumored MediaTek MTK6588 manufacturing cost is even less than dual-core MTK6577. …
                                                                                                                                  MT6588 has a 4-core CPU [Cortex-A7 (!), see on the second slide below] clocked at 1GHz [1.XGHz rather, see the included slides below], supports dual-channel at maximum 1066Mbps, has an integrated multimode modem for WCDMA [+ it is delivering HSPA+ WCDMA performance (!) vs just HSPA with MT6577/75, see the first slide below] and TD (!), that is it can support both Unicom [latest upgrade to HSPA+ service, see the news in the original post materials much below] and China Mobile 3G network, supports an up to 13 MP camera and 1080P video playback. It finally has a GPU upgrade with SGX544, doubles the resolution to 1280×800 HD level, and has 32KB L1 cache and 1MB L2 secondary cache.
                                                                                                                                  Along the MT6588 there is a 28nm dual-core version, MT6583 on the MediaTek 2012 product roadmap. From the chipset parameters it is evident that MT6583 is a scaled down version of MT6588. It has 2 cores less, the camera support is 8MP, the video decoder is of 720P level, and the resolution is down to 854×480.
                                                                                                                                  It is understood that MT6588 and MT6583 will be in production in the first quarter of 2013, early next year the fastest.

                                                                                                                                  The MediaTek product roadmapMTK MT6588 chip Introduction

                                                                                                                                  Qualcomm’s problems are already immense as follows from another core post of mine stating not less than The low priced, Android based smartphones of China will change the global market [Sept 10-17, 2012], from I will just include this quote:

                                                                                                                                  The best smartphone based on the MediaTek MT6577 both technically and in terms of price is the MT6577-based JiaYu G3 with IPS Gorilla glass 2 sreen of 4.5” etc. for $154 (factory direct) in China and $183 [Sept 13, 2012], which is also the best example of the low priced, Android based smartphones of China will change the global market.

                                                                                                                                  This SoC competitor is also “deadly serious” as MediaTek plans for quad-core chips in budget smartphones by early 2013 [Engadget from China Times (translated) sources, Sept 26, 2012].

                                                                                                                                  Considering also the fact that Spreadtrum’s TD-SCDMA effort will meantime drive the entry level TD-SCDMA smartphone market from sub $150 to sub $100 level in the H2 2012 Qualcomm has to completely redefine its original plans for the upcoming S1 class Play tier by Q1 2013. Especially because its crucial global brand partners are embracing the new Chinese phenomenon as evidenced by the quite new Huawei Ascend G306T (Huawei T8808D) [Sept 14, 2012] example currently sold in China for $183 (Yuan 1,148). Note that here is IPS screen etc. so this is higher than the very entry level.

                                                                                                                                  Note as well that Qualcomm is heavily restricted by the shortage of 28nm foundry capacity which will be lifted only by the end of the year as described in my earlier:
                                                                                                                                  Core post: Qualcomm’s critical reliance on supply constrained 28nm foundry capacity [July 27, 2012]

                                                                                                                                  So for Q1 2013 the company will have plenty of room for effective actions in the competitive space quite unlike this time. It will be interesting to see what happens next!

                                                                                                                                  Related announcements and videos by Qualcomm:

                                                                                                                                  Before the new announcement Qualcomm issued the following “image” video:
                                                                                                                                  How Snapdragon processors stack up against the competition [QUALCOMMVlog YouTube channel, Sept 20, 2012]

                                                                                                                                  With so many devices launched every day, what claims to be new may not always be up to speed with current technology. In this video, you’ll see how a Qualcomm Snapdragon processors compare to the competition’s latest processor.

                                                                                                                                  Qualcomm Announces New Snapdragon S4 Play MSM8x25Q Processors with Quad-Core CPUs and Reference Design Counterpart for High-Volume Smartphones [Qualcomm press release, Sept 27, 2012]

                                                                                                                                  — Snapdragon S4 Plus MSM8x30 Platform to Support LTE -TDD/TD-SCDMA and All Three China Operators
                                                                                                                                  BEIJING – September 27, 2012 – Qualcomm Incorporated (NASDAQ: QCOM) today announced the addition of two new Snapdragon™ S4 mobile processors: the MSM8225Q and MSM8625Q. Both are members of the Snapdragon S4 Play processor tier, optimized specifically for a broad range of smartphone users seeking faster applications and better user experiences. Snapdragon S4 Play processors will now offer OEMs both dual-core and quad-core CPUs and performance for entry-level smartphones, with the more advanced version featuring higher bus bandwidth, larger screen resolution support, HD video and enhanced user experiences. Both processors will be ready for customer sampling by end of 2012 and are expected to be shipping in commercial devices in the first quarter of 2013.
                                                                                                                                  The MSM8225Q and MSM8625Q processors incorporate quad-core CPUs and are the upgraded software compatible variants of the highly successful Snapdragon S4 Play MSM8225 and MSM8625 processors, which both feature dual-core CPUs and dual SIM support. The quad-core variants will support LPDDR2 memory, increasing the bus bandwidth for improved features such as 720p display and 720p video encode and decode. Snapdragon S4 Play MSM8625Q features Qualcomm’s integrated multimode UMTS/CDMA modem, and the MSM8225Q has an integrated UMTS modem. Both processors enable Wi-Fi, Bluetooth 4.0 and FM connectivity using the Qualcomm Atheros AR6005 and WCN2243 chips.
                                                                                                                                  In addition, Qualcomm also announced a single platform, the Snapdragon S4 Plus MSM8930, that supports all China operators with UMTS, CDMA and TD-SCDMA. Furthermore, this single platform will support LTE -TDD and TD-SCDMA, targeting mid-tier smartphones for use in China. Announced in February 2011, this processor features dual-core CPUs and as the world’s first single-chip solution with an integrated LTE modem, it is designed to take LTE to high-volume smartphones. Snapdragon S4 Plus MSM8930 with LTE-TDD and TD-SCDMA support will be ready for customer sampling by the end of 2012 and is expected to be shipping in commercial devices by the first quarter of 2013.
                                                                                                                                  Qualcomm will also be releasing Qualcomm Reference Design (QRD) versions of all three processors. The QRD program includes comprehensive handset development platforms and an ecosystem program providing access to third-party providers of tested and verified hardware and software components so customers can rapidly deliver differentiated smartphones to budget conscious consumers. The Wi-Fi, Bluetooth and FM connectivity technologies have been pre-validated and tested with the QRD platform to provide reduced time-to-market. There have been more than 50 public QRD-based product launches to date in collaboration with more than 40 OEMs, and there are 100 designs in progress, including QRD-based smartphones enabled by these new Snapdragon S4 Play and Plus processors, which are also expected to be available by the first quarter of 2013.
                                                                                                                                  “Our broad portfolio of Snapdragon S4 mobile processors delivers the optimal balance of features and performance for the high-volume smartphone segment,” said Cristiano Amon, senior vice president and co-president of mobile and computing products. “By offering both dual-core and quad-core CPU versions of the Snapdragon S4 Play processor, we are providing our OEM and operating partners a competitive and differentiated platform.”
                                                                                                                                  The new Snapdragon S4 Play and Plus processors are designed specifically for high-volume smartphones, and they provide device manufacturers the ability to migrate their existing Snapdragon S1-based designs to S4 dual- and quad-core CPU-based designs. This capability is particularly useful for device manufacturers looking to efficiently expand their smartphone product lines with more advanced 3G/LTE smartphone products.

                                                                                                                                  This announcement coincided with a new Graphics Benchmarking [QUALCOMMVlog YouTube channel, Sept 26, 2012] published for Qualcomm’s highest Adreno 320 GPU which is also in the MSM8960 SoC of the Pro tier of the S4 class for which no smartphones were introduced yet (probably in Q1 2013 we will see them):

                                                                                                                                  Watch how the graphics performance of Qualcomm’s quad-core Snapdragon S4 (APQ8064) with integrated Adreno 320 GPU compares with a competitor quad-core platform. Kishonti Informatic’s GLBenchmark 2.5, the newest and highest-end 3D graphics benchmark available today, plays noticeably more smoothly with Snapdragon and Adreno.

                                                                                                                                  Along with the first “image” video the company also issued another “giving assurance” type video: Vellamo™ Mobile Benchmark Suite: Setting new standards for system-level mobile benchmarking [QUALCOMMVlog YouTube channel, Sept 20, 2012]

                                                                                                                                  Here at Qualcomm, we place a great degree of importance on developing sound methodologies and best practices for benchmarking mobile performance across all devices. We think it’s a critical part of our overall evaluation of our own designs and those of our competitors — because ultimately the quality of the experience on your mobile device depends on performance. Vellamo was created using our own benchmarking expertise. It is a series of tests designed to evaluate which Android devices deliver the best mobile experiences. We are proud to announce that we’ve launched a new version of Vellamo on Google Play. Vellamo began as a mobile web benchmarking tool that today has expanded to include two primary chapters. The HTML5 Chapter evaluates mobile web browser performance and the Metal Chapter measures the CPU subsystem performance of mobile processors. Through a click-and-go suite of tests, Vellamo can rate things like: scrolling and zooming, 3D graphics, video performance and memory read/write and peak bandwidth performance and much more. Simply launching a chapter runs the full suite of tests in that particular chapter, providing the user with an overall performance score. That score can then be uploaded and compared to the scores of other devices. More detail on the specific tests included in each Vellamo chapter can be found here. We think Vellamo is pretty enticing. Check out the video demo below, download the app on Google Play and find out how your device scores and compare scores!

                                                                                                                                  Here is worth to remind you about my last year’s post that Qualcomm is very close to getting the HTML5 web apps performance and feature set to rival that of native OS apps [Oct 11, 2011]. Reading that one will understand this whole Velamo effort from both technical and marketing point of view.

                                                                                                                                  Now the latest Qualcomm video about the envisaged market segmentation of its offerings:
                                                                                                                                  Snapdragon Overview [QUALCOMMVlog YouTube channel, Aug 30, 2012]

                                                                                                                                  Michelle Leyden Li, Senior Director of Marketing at Qualcomm, explains the new Snapdragon system of tiers, whether it’s the entry-level space in the emerging markets or high-end devices like the HTC One X and Samsung Galaxy S3. The Snapdragon S4 tiers will also make it easier for Qualcomm’s customers and consumers to identify the right processor and its wide-array of features and specifications. To learn more about Qualcomm visit http://www.qualcomm.com or connect with us at: http://www.facebook.com/qualcomm, http://www.youtube.com/qualcomm and Twitter@Qualcomm.

                                                                                                                                  Qualcomm Launches Tiers for Snapdragon S4 platform [Qualcomm’s OnQ blog, June 6, 2012]

                                                                                                                                  Today, Qualcomm launched distinct tiers for its Snapdragon processor platform, starting with the S4 series. The Snapdragon S4 portfolio of processors now includes four distinct tiers – Prime, Pro, Plus and Play—that will better explain the capabilities of the many chipsets within the S4 class, as well future Snapdragon processors.
                                                                                                                                  You probably became acquainted with the Snapdragon processor brand through smartphones and tablets, but the road ahead for these powerful processors will scale beyond such devices. With the launch of the highly-capable Snapdragon S4, our processors are now destined to appear in new platforms like Windows 8 PCs, SmartTVs and set top boxes. The number of device form factors that can potentially benefit from Snapdragon processors’ balance of power and battery efficiency is endless. Our new system of tiers should make it easier for Qualcomm’s customers and consumers to identify the right processor and its features.

                                                                                                                                  Below is a description of each tier:

                                                                                                                                  Snapdragon S4 Prime designed to bring high performance applications, web browsing and connectivity to TVs and set top boxes. Processors in the S4 Prime tier include: MPQ8064.

                                                                                                                                  Snapdragon S4 Pro designed to bring computing-class processors to PCs, tablets and high-end smartphones. Processors in the S4 Pro tier include: APQ8064 and MSM8960T.

                                                                                                                                  Snapdragon S4 Plus covers a broad range of powerful smartphone and tabletprocessors. Processors in the S4 Plus tier include: MSM8960, APQ8060A, MSM8660A, MSM8260A, APQ8030, MSM8930, MSM8630, MSM8230, MSM8627, and MSM8227.

                                                                                                                                  Snapdragon S4 Play consists of processors for high-volume smartphones. Processors in the S4 Play tier include: MSM8625 and MSM8225.

                                                                                                                                  When you look at the broad range of things that Snapdragon S4 processors can do, you’re more likely than ever to be using one.

                                                                                                                                  Download Snapdragon S4 Infographic

                                                                                                                                  Qualcomm Brings Snapdragon S4 Processors to High Volume Smartphones and Expands Qualcomm Reference Design Development Platform and Ecosystem Program [Qualcomm press release, Dec 8, 2011]

                                                                                                                                  Addition of Two New Snapdragon S4 Mobile Processors Compatible with QRD Development Platforms Brings Dual-Core Processing and Integrated 3G Connectivity to High Volume Smartphones
                                                                                                                                  SAN DIEGO – December 08, 2011 – Qualcomm Incorporated (NASDAQ: QCOM) today announced two additions to its Snapdragon® S4 class of mobile processors: the MSM8625 and the MSM8225 chipsets. Both chipsets provide dual core CPUs operating up to 1 GHz, Qualcomm’s Adreno® 203 GPU and an integrated 3G modem. The MSM8625 and MSM8225 chipsets are designed to be hardware and software compatible with the MSM7x27A and MSM7x25A family of chipsets, giving device manufacturers the ability to seamlessly migrate their existing Snapdragon S1-based designs to S4 dual core-based designs. This capability is particularly useful for device manufacturers to efficiently expand their smartphone product lines with more advanced and more capable 3G smartphone products.
                                                                                                                                  To further simplify and improve time-to-launch of cost effective 3G solutions for device manufacturers, Qualcomm also announced the third-generation of its Qualcomm Reference Design (QRD) ecosystem program to enable third party device manufacturers to develop differentiated high volume smartphones with lower development costs and faster time to market. The QRD ecosystem program includes a comprehensive set of software and hardware components that allows third party hardware and software vendors to have their products pre-tested and optimized for the QRD development platform. A pre-tested and optimized platform gives device manufacturers a development platform with the hardware components (memory, sensors, touch panels, cameras, displays, RF, etc.) and software applications and features (browsers, map/navigation, mail, music, instant messaging, fonts and languages, etc.) needed for basic smartphone functionality already in place. This allows device manufacturers to focus their engineering resources on developing value-added features that will help make their high-volume smartphone stand out from the competition. The QRD ecosystem program is designed to help device manufacturers developing products for regions whose networks are evolving from 2G to 3G and high volume smartphones are becoming increasingly popular.

                                                                                                                                  The MSM8625 and MSM8225 chipsets will be available on Qualcomm’s third generation QRD development platform in the first half of 2012, in addition to being available as standalone chipsets. QRD development platforms based on both the MSM7x27A and MSM7x25A chipsets are currently available. Qualcomm has shipped over 100 million MSM7225 and MSM7227 chipsets, and smartphones based on these chipsets are operating on multiple carrier networks worldwide.

                                                                                                                                  “Smartphones present a large business opportunity for many of our customers, which is why we have created the QRD ecosystem program to assist them with developing compelling product designs with competitive differentiation,” said Cristiano Amon, senior vice president of product management at Qualcomm. “The program combines all the elements our customers need to get a new smartphone design to launch quickly and cost effectively, from carrier-ready hardware and software to local technical support resources.”
                                                                                                                                  “As Snapdragon processors power many of today’s most popular smartphones, we are working to port a variety of our core applications to the various QRD platforms,” said Chengmin Liu, senior executive vice president of Tencent, China’s largest integrated internet services provider. “This will offer our customers a strong processing solution to power our applications for future smartphone designs.”

                                                                                                                                  Qualcomm Unveils New Snapdragon Mobile Processors Across All Tiers of Smartphones and Tablets [Qualcomm press release, Nov 16, 2011]

                                                                                                                                  Qualcomm Incorporated (NASDAQ: QCOM) announced today the expansion of its Snapdragon S4 class of next-generation mobile processors and the enhancement of its Snapdragon S1 solutions for entry-level smartphones.
                                                                                                                                  The addition of new Snapdragon S4 processors, which are aimed at lowering design, engineering and inventory costs while bringing leading-edge 3G and 4G Internet connection speeds, will allow OEMs to introduce S4-based devices with next-generation mobile architecture throughout their respective device roadmaps—from basic smartphones to high-end smartphones and tablets. The enhanced S4 processors are also optimized for use with a suite of software solutions available from Qualcomm that help enable OEMs to deliver industry-leading feature sets for multimedia, connectivity, camera, display, security, power management, browsing and natural user interface design.
                                                                                                                                  The Krait CPU is the next generation of Qualcomm’s micro architecture and is purpose-built from the ground up for significant mobile performance and power management advantages leading to enhanced user experience and better battery life. The Krait CPU is an essential part of the Snapdragon S4 class of processors. Today, Qualcomm announced several new S4 chipsets, including the MSM8660A, MSM8260A, MSM8630, MSM8230, MSM8627,MSM8227, APQ8060A and APQ8030. These are additional chipsets to the previously announced MSM8960, MSM8930 and APQ8064. Snapdragon S4 MSM processors include Qualcomm’s leading-edge wireless modem technologies, including EV-DO, HSPA+, TD-SCDMA, LTE FDD, LTE TDD andWi-Fi® standards. Devices based on Snapdragon S4 processors are expected to appear in early 2012.
                                                                                                                                  The Snapdragon S1 product line is driving smartphone growth in all regions, and it offers a significant opportunity for market expansion and migration to 3G. To further this trend, Qualcomm is also announcing an upgrade to four of its existing Snapdragon S1 mobile processors. The MSM7225A, MSM7625A, MSM7227A and MSM7627A have been upgraded to deliver better performance and will enable new mobile experiences for entry-level smartphone users, particularly those transitioning from 2G to 3G.

                                                                                                                                  Qualcomm Announces a Bunch of Krait Based Snapdragon S4 SoCs [Anandtech, Nov 16, 2011]

                                                                                                                                  If you want an 8960 without integrated LTE, Qualcomm has an SoC for you: the MSM8x60A. The CPU specs are the same as the 8960, just without LTE support.
                                                                                                                                  Below the 8960 is the MSM8930, a dual-core Krait (up to 1.2GHz) offering with only a single LPDDR2 memory channel (up to 1066MHz data rate). The 8930 will actually use a faster GPU than the 8960, the Adreno 305, although it’ll be more memory bandwidth limited. The 8930 will also debut later than the 8960 partially due to its new GPU.
                                                                                                                                  The 8930 features LTE support, but if you want a version without it there’s the new MSM8x30. Similarly, if you want a version without an integrated baseband altogether there’s the APQ8030. The ISP in the xx30 series supports 1080p video decode and up to a 13.5MP camera (down from 20MP in the xx60 SoCs).
                                                                                                                                  There’s an even even more affordable S4 in the lineup: the MSM8x27. Here you get two Krait cores running at up to 1GHz, a single channel LPDDR2 interface (800MHz max data rate). Video decode is limited to 720p in the 8×27.


                                                                                                                                  [* the numbering change is: MSM8270 –> MSM8x60A]