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MT6577-based JiaYu G3 with IPS Gorilla glass 2 sreen of 4.5” etc. for $154 (factory direct) in China and $183 internationally (via LightTake)

This is the most competitive offering from the wave of Boosting the MediaTek MT6575 success story with the MT6577 announcement  – UPDATED with MT6588/83 coming early 2013 [June 27, July 27, Sept 11, 2012] and now is the key manifestation of a much broader and very significant trend of The low priced, Android based smartphones of China will change the global market [Sept 10-17, 2012]. The details are therefore worth to examine:

(Pre-order) JiaYu-G3 4.5″ MTK6577 Dual-core 1GHz Dual SIM Android4.0 1GB+4GB IPS(1280*720) Screen 3G WIFI Smartphone – Black [LightTake, Sept 9, 2012]

[availability for shipment on eBay from Sept 12, LightTake press release on availability]
by Cell PhonesAndroid OS phone
(1 customer Discussion)
Our Price: $183.32

image

JiaYu-G3 Basic Information:

Model JY-G3
Network Frequency 2G:GSM850/900/1800/1900MHZ
3G:WCDMA850/900/1900/2100MHz
SIM Card Dual Sim Cards
Style Bar Phone
Color Black

JiaYu-G3 Hot Spots:

OS Android 4.0.3
CPU MediaTek MTK 6577 1GHz
Cortex-A9 Dual-core
RAM 1GB
ROM 4GB
Card Extend Support TF Card 64GB MAX (Not included)
Screen 4.5inch Capacitive Touch Screen,
IPS Resolution:1280*720
G-Sensor Support
More Information Flashlight,Maps,Latitude,Gallery,
Navigation,Play Store,Gmail,
Wireless Keyboard

JiaYu-G3 Features:

GPS Built in GPS
Wireless Transmission WiFi/ Bluetooth 2.0
Bluetooth Yes
Photo Format JEPG
Camera Dual Cameras, Front:2.0 MP,
Rear:8.0 MP, with flashlights

JiaYu-G3 General:

Media Player MP3 & MP4 player
(support MP4/3GP format)
Sound Recorder
FM Radio
Earphone Interface 3.5 mm standard audio output jack
Tools Calendar,Calculator,Alarm,World Clock

Package:

Product Size 135*65*10.8mm
Weight(w/box) 500.0g
Battery Lithium Batteries:2750mAh
Standard Accessories 1*Batteries,1*Charger adapter(US plug, if you need other contry’s standard plug, please tell us.),
1*USB cable,1*Enlish manual

JiaYu G3 [gfscorner YouTube channel, Sept 5, 2012]

Jiayu G3 720P Video Playing Review [July 30, 2012]

More details about Jiayu G3, please visit: http://android-sale.com/jiayu-g3.html – MTK MT6577 1.2GHz dual core processor, GPU: PowerVR SGX531 – 4.5 inch screen, 1280*720 pixel display – 1GB RAM / 4GB ROM – 8MP rear camera, 2MP front camera – Android 4.1 OS

JiaYu G3 Unboxing [Gizchina YouTube channel, Sept 6, 2012]

The JiaYu G3 had it’s official pre-order day in China on the 5th September, and while order haven’t gone out those lucky enough to be in the Chinese media have already received test models. The JiaYu G3 features a dual-core Mediatek MTK MT6577 CPU, 1GB RAM, 4GB ROM, and a 4.5 inch IPS screen with a resolution of 1280 x 720 all for a the low price of $140 ($180 for international buyers)

JiaYu G3 used to smash walnuts MT6577 phone with Gorilla glass [Gizchina YouTube channel, Sept 6, 2012]

The JiaYu G3 is one of the most anticipated Chinese phones to arrive this year. Part of the reason is it’s awesome 4.5 inch HD screen which offers great performance thanks to the 1280 x 720 resolution but is also made of Gorilla glass! Watch as the JiaYu G3 smashes walnuts without a scratch or care in the world!

Jiayu G3 MTK6577 Dual-Core 4,5″ 720p 1280×720 Test Gorilla Glass [chiribe YouTube channel, Aug 13, 2012]

CPU MT6577 Dual Core 1.0GHz GPU: PowerVRTM SGX Series5 3D OS Android 4.0 Ice Cream Sandwich (ICS) Language: English, Italian, French. Spanish, Russian, Thai, Vietnamese, Arabic, German, Indonesian, Chinese, Turkish, Portuguese, Malay, others Memory RAM: 1GB / ROM: 4GB Micro SD Memory Card (TF-Card), MAX support 32GB Size 135 x 65 x 10.8 mm Weight 121 g Screen 4.5 inch IPS Capacitive Multi-touch Screen HD resolution (1280 x 720 pixels) 16 million colors Network: Dual SIM G+G W+G 2G:GSM 850/900/1800/1900MHz 3G:WCDMA 850/900/1900/2100MHz Supports GSM service all over the world Built In GPS & A-GPS Bluetooth with EDR & A2DP Wi-Fi IEEE 802.11 b/g micro USB 2.0 Camera Dual Camera Back 8.0 megapixel Front 2.0 megapixel Supports recording of video Sensor Gravity Sensor, Proximity Sensor, Light Sensor Radio FM Video AVI , MP4 , FLV , 3GP , MOV , ASF , MPEG , RMVB , etc. Audio MP3 , AAC , WAV , etc. / 3.5 mm Audio Jack Special functions Gravity Sensor, Proximity Sensor, Light Sensor, FM Radio, Wifi, GPS, Multi-touch Capacitive Screen, Dual SIM, Schedule Power On/Off Li-ion battery 2750 mAh Earphone / 3.5 mm Audio Jack

First announcement on July 9, 2012 as translated by Bing:

Through the efforts of Golden people, Golden G3 Design work has now been completed, entering the testing phase, in order to meet the concerns of her friends, Super G3 configuration information as follows, welcome to continue to focus on supporting good domains! …

Second announcement on September 5, 2012 as translated by Bing:

Golden G3 put on sale the first approach … The so-called registration, meaning that user orders, eligibility for Golden G3 to buy, but do not make immediate payment. Golden while waiting for a cell phone network card duly issued, payment orders and then notifies the user. NET label officially reaches Golden factory, beginning the actual shipping. …

JiaYu G3 Preorders: Did You Get One? [Gizchina.com, Sept 5, 2012]

The JiaYu G3 marks the first time (which I know of) that a Chinese phone has managed to go viral in both China and across the globe and it’s easy to see why with such a great looking design and high specification at a low price of just 899 Yuan ($140 in China).

If you have managed to completely miss the JiaYu G3 for the past few months (is that even possible?) let me quickly fill you in;

The G3 is JiaYu’s all new Androidsmartphone set to replace the JiaYu G2 as JiaYu’s flagship model, but unlike most phone manufacturers, JiaYu have managed to give their top of the range phone all the bells and whistles at an extremely low price without any (notable) corner cutting price lowering measures.

For example the G3 has a 1280 x 720 4.5 inch IPS display which boasts a Gorilla Glass screen to ward of knocks and scratches! This in itself would be worth the $140 price tag, but JiaYu have also loaded the G3 with a dual-core MTK MT6577 CPU, 1GB RAM, 4GB ROM and high quality 8 mega-pixel rear camera!

Even the battery is a great size and should last a good while as it is a 2750mAh unit!

So what are the catches? There has to be at least one! And yes there are!

  1. The first catch is that the $140 price tag in China IS in fact only for the phone (I know this as my wife is online ordering a G3 for me now as I type), but for just $12 extra you can  get the battery, charger, screen protector and protective case!
  2. Secondly is the fact that although we can order our JiaYu G3 phones today, we don’t actually know when we will be getting them as JiaYu is still waiting on the network licences, but that’s ok as JiaYu aren’t asking for full payment yet (although 3rd party resellers are!)

G3 [JiaYu product page, Aug 20, 2012] as translated by Google

image

[Yuan 899, i.e. US$142, see the full product page transcription on SlideShare [Sept 12, 2012] ]

CPU The MT6577 1G dual-core
Memory RAM1G + ROM4G
Screen Size 4.5-inch
Screen material IPS
Resolution 720 × 1280
Touch screen Second-generation multi-touch with Corning Gorilla Glass
Camera 2,000,000 8,000,000 physical pixel back-illuminated CMOS AF
Operating system Android 4.0.4
Battery capacity 2750 mA
Sensor Light, distance, gravity, magnetic sensor, gyro
External storage Support maximum 64G expansion card
Network GSM \ WCDMA dual network dual standby
WCDMA frequency 2100MHz
GSM frequencies 850/900/1800/1900MHz
Body parameters Of 135x65x10.8 mm weight 154 g
Factory standard A mobile phone, battery, charger, data cable, manual, warranty card

?Good domain / Golden? [Baidu encyclopedia, Dec 20, 2011] as translated by Google/Bing:

?Good domain / Golden? from Shenzhen City, Guangdong Province (now moved to Baoji City, Shaanxi Province) the ?good domain / Golden? Yutong Electronic Science and Technology Co., Ltd. produces smartphones, the company was founded in April 2009, the headquarters is located in Baoji City. The company has a strong R & D capability. Always carry out the marketing strategy of “quality affordable” Android smartphone to create a leading level in the domestic market. Has launched two smart models the good domain G1 , best domain G2 . The upcoming good domain G3 ?good domain / Golden? G series phones using the Android 4.0 operating system, to configure powerful but affordable, so the company is known as a “smartphone civilians practitioner”.

Chinese name: ?Good domain / Golden?
Foreign name: JIAYU [JiaYu]
Company Name: The ?good domain / Golden? Yutong Electronic Technology Co., Ltd.
Chairman: Zhang Guojun
Corporate Headquarters: Baoji City
Products: Jia domain G1, good domain G2

Company Profile [JiaYu website page, July 9, 2009] as translated by Bing:

Shenzhen Golden Yutong electronic technology limited company was established in April 2009, is a professional dedicated to mobile communication product research and manufacturing, sales and service in one of the high-tech enterprises. Since its establishment the company has been adhere to people-oriented policy, talent is the largest corporate wealth is fundamental to the development of enterprises. Company has a staff of more than 800 people, including developers, more than 30 people, engineers and technicians more than 40 people. And has been cultivating and absorbing talents. Now company to design for mobile communication terminals, Terminal product research and development as well as sales and service-oriented, continuously enrich their research and development, in the context of talent, we have established the domestic first-class research and development team. Employees of one mind, adhere to the quality is life, for consumers of all staff to provide the best quality products for the mission, to create first-class products.Companies now have 10 complete product lines, two laboratories, a variety of advanced testing equipment, equipment! Company is willing to work with customers at home and abroad hand in hand, create brilliant!


Reception

Factory

Workshop II

Assembling workshop

Assembling Workshop II

Class 100,000 Cleanroom SMT

Silk steel net detection

Silk screen printing machine

Plant and equipment
 

The low priced, Android based smartphones of China will change the global market

During the 12 months or so China took over the overall leading market role for smartphones from the key markets considered to be in the lead: US, Australia, Brazil, Great Britain (GB), Germany, France, Italy and Spain.

An even more dramatic change was that while on the old, combined lead market of the above countries high/moderate margin products were the dominating ones, on the new lead market of China average retail prices went down in the second quarter of 2012 to 1560 yuan (i.e. US$246) for the #1 Android with a whopping 82.8% market share, and to 1320 yuan (i.e. US$208) for the #2 Symbian now having only 6% share of the market.

It is notable as well that in China Apple had only a 6% market share vs. 23.7% in the combined old lead markets. According to a recent Reuters video report from Hong Kong we are witnessing (you can also watch this report in this post, as embedded well below in the following elaboration of details):

… commoditization of smartphones … hardware specifications for the handsets have already peaked…

A race to the bottom therefore will present a major challenge for Apple and Samsung who put together have dominated the industry in the last couple of years. If the China trends spread globally the shift to cheaper handsets will mean tighter margins and slower growth for this industry powerhouses and new opportunities for little known upstarts like Xiaomi.

Given my previous trend tracking posts the change will even be more dramatic as:

  1. 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.
  2. Lowest H2’12 device cost SoCs from Spreadtrum will redefine the entry level smartphone and feature phone markets [July 26 – Aug 16, 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]
    Smartphone-like Asha Touch from Nokia: targeting the next billion users with superior UX created for ultra low-cost and full touch S40 devices [July 20 – Aug 12, 2012]
    MediaTek’s ‘smart-feature phone’ effort with likely Nokia tie-up[Aug 15-31, 2012]
  3. Update: China to ship 300 mil. smartphones in ’13: MediaTek head [The China Post, Sept 26, 2012]: … overall shipments in China may reach 200 million in 2012.
  4. Update: China market: Dual-core CPUs, 4-inch displays become standards for entry-level smartphones [DIGITIMES, Sept 17, 2012]:
Local brands in China have made upgrades to the specifications of their entry-level smartphones for the CNY1,000-1,500 (US$158-237) segment making dual-core 1GHz processors and 4-inch displays the industry standards, according to industry sources.
Prices of the previous mainstream models with single-core CPUs and displays below 4-inch sizes for the CNY1,000 segment in the first half of 2012 are now expected to drop to CNY500-800, the sources added.
China Unicom has led the purchase of the upgraded dual-core, 4-inch display smartphones recently, and its suppliers are all China-based vendors including Huawei Technologies, ZTE, Lenovo, Coolpad, TCL, Hisense, K-Touch and Wanlida, the sources revealed, adding that those makers will source chipset solutions from Qualcomm or MediaTek.
First-tier international players did not participate in China Unicom’s procurement on concerns of pricing and hardware specifications, the source asserted.
However, the pace of hardware upgrading may start slowing down as telecom companies in China are mulling reducing their subsidies to smartphone subscribers, while smartphone makers are also trying to maintain their profit margins, commented the sources.
The next round of competition will shift from hardware to software including product design, user’s interface and also smart audio recognition, the sources noted.

Neither Apple nor Samsung reacted to these challenges yet. Nokia was also playing safe with its recent announcement:
Unique differentiators of Nokia Lumia 920/820 innovated for high-volume superphone markets of North America, Europe and elsewhere [Sept 6, 2012]

We may expect a fundamental reorganisation of the market in the next two quarters.

Meanwhile read through the details included below and make your own, hopefully more fine-tuned conclusions and predictions:

imageimage

See: Kantar: Windows Phone has overtaken RIM Market Share in USA, “Key 8 Countries”
[WMPoweruser, Sept 3, 2012]

imageimage

Note that in terms of mobile data traffic the market share is quite different. For North America (U.S. and Canada) Chitika Insights, the independent research arm of online ad network Chitika, released the following web usage market share report [Sept 5, 2012]:

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Remark: iPads and other tablets are included here as well!

Relative to all that China is a quite different story:

3G phones months shipments reach 21.64 million, domestic mobile share over 70% – 3G手机月出货量达2164万部 国产手机份额超七成 [Sohu IT – 搜狐IT, Sept 10, 2012]

According to data published by the Telecommunications Research Institute of the Ministry of Industry and Information Technology …
根据工业和信息化部电信研究院公布的数据 …

[the data in the translated Chinese text I’ve compiled into the below table:]

image

China sees soaring smartphone market in Q2 [Xinhua, Sept 3, 2012]

Beijing: China’s smartphone market saw its sales volume soar to 38.19 million units in the second quarter, according to a report released Monday by market researcher Analysys International.

The figure represented a 22.5-per cent increase compared with that of the previous quarter and a sharp rise of 127.1 per cent over the corresponding period in 2011, said the report.

Nearly 67 million mobile phones were sold in China in the second quarter, the report said, representing a 1-per cent decrease from the previous quarter and a 2-per cent decrease from the corresponding period in 2011.

Stellar growth sees China take 27% of global smart phone shipments, powered by domestic vendors [Canalys press release, Aug 2, 2012] – Android is the clear platform of choice, accounting for 81% of Chinese shipments

Shanghai, Palo Alto, Singapore and Reading – Canalys published its final Q2 2012 country-level shipment estimates to clients yesterday. Results show that China saw phenomenal growth of 199% year-on-year and 32% over the previous quarter. In total, more than 42 million smart phones were shipped into the channel in China in Q2 2012, representing the second consecutive quarter of record breaking volumes in a single country market. China accounted for 27% of the 158 million global smart phone shipments, compared to 16% for the United States.
Notably, growth in China was heavily driven by domestic vendors, while international vendors struggled to keep pace.
While Samsung maintained its overall leadership position in China with a 17% market share, this reduced sequentially as volumes were flat and as several local vendors closed the gap. ZTE, Lenovo and Huawei were the second-, third- and fourth-placed vendors, ahead of Apple, making up a third of the market. They achieved growth of 171%, 2,665% and 252% year-on-year respectively. Collectively, domestic Chinese vendors shipped 25.6 million units, representing a growth of 518% and 60% of the market. By comparison, international vendors grew by a more modest 67% to 16.7 million units. Apple fell to fifth place in China. While its shipments were up 102% year-on-year, they were down 37% compared to Q1 2012.
‘The rise of the domestic tier-one brands has been aided by a number of factors. Their reactiveness to market demands and deep understanding of local consumer behavior and preferences have been key in helping them surpass international peers in the fast-evolving Chinese market. Local tier-one vendors have worked hard in recent quarters to greatly improve their brand resonance among consumers and to expand and enhance their relationships and influence within operators,’ said Canalys Research Director for China, Nicole Peng. ‘But the tier-two vendors — the likes of Oppo, K-Touch and Gionee — have also stamped their mark, boosting smart phone shipments into tier-three and tier-four cities, predominantly through the open channels. As feature phone vendors, they already have established partnerships and strong brand awareness. These domestic vendors are making significant progress transitioning their portfolios and customer bases to be more focused on smart phones.’
Nokia and Motorola both lost significant ground in China, with Nokia’s volumes down 47% on Q2 2011. ‘Among the international vendors, only HTC managed an outstanding performance in mainland China. Its shipments grew 389% year-on-year to reach 1.8 million units for the quarter,’ said Jessica Kwee, Canalys Research Analyst. ‘Its success this quarter is heavily based on the strong performance of Desire V series devices, designed with the local China market in mind, underscoring the importance of tailoring propositions to local consumer preferences.’
Android has become a major growth driver in China, running on 81% of the smart phones shipped in China in Q2 2012.
On a global basis, Android continued to grow in significance, surpassing 100 million quarterly smart phone shipments for the first time and reaching two-thirds share of the market. ‘Growth in Android volumes of 110% far outpaced growth in the overall market of 47% year-on-year, heavily driven by Samsung, which saw Android volumes of over 45 million, contributed to by a full and broad portfolio of products, from its high-end flagship Galaxy S III down to its aggressively priced Galaxy Y and Galaxy Mini. Its sponsorship of the London Olympics and subsequent product placements are sure to attract new customers to ensure that Q3 delivers a strong performance,’ commented Pete Cunningham, Canalys Principal Analyst.
Samsung retained its gold medal position in the global smart phone market with a 31% share, followed by Apple and Nokia once again. Huawei and ZTE were unable to push in on the global top five with shipments of their own branded devices. HTC moved up to fourth place, though, just ahead of RIM, which shipped 8.5 million units in the calendar quarter.

Global smart phone market

Analyst contacts
To speak with any analyst quoted in this release, please contact the appropriate Canalys office: Nicole Peng, Jessica Kwee (Canalys APAC), Pete Cunningham (Canalys EMEA). Alternatively, you can speak with other members of Canalys’ global team of mobile analysts: Chris Jones (Canalys Americas), Rachel Lashford (Canalys APAC), Tim Shepherd (Canalys EMEA).
About Canalys
Canalys is an independent analyst firm that strives to guide clients on the future of the technology industry and to think beyond the business models of the past. We deliver smart market insights to IT, channel and service provider professionals around the world. Our customer-driven analysis and consulting services empower businesses to make informed decisions and generate sales. We stake our reputation on the quality of our data, our innovative use of technology, and our high level of customer service.

Smart phone and pad forecasts show varying OS fortunes [Canalys press release, Sept 10, 2012] – China and Android influence smart phone landscape, the US and Apple dominate pads

Shanghai, Palo Alto, Singapore and Reading – The latest product announcements by leading smart phone and pad vendors will help drive consumer demand to new heights, according to Canalys. It forecasts that in 2016, global annual smart phone shipments will be around 1.2 billion units, meaning a CAGR (Compound Annual Growth Rate) of 19.5%. It predicts pad shipments in the same year will hit 207 million – a CAGR of 26.8%.
Apple’s latest unveiling is attracting extraordinary interest and competitors have also made several major announcements in the past week, including Windows 8 devices from Nokia and Samsung; new Android smart phones from Sony, Motorola and Samsung; and Amazon’s enhanced Kindle Fire pads. With these big vendors attracting the headlines, Canalys has issued a timely reminder that the trends across pads and smart phones in various countries will be markedly different.
In smart phones, Canalys expects Asia Pacific to remain the largest region by volume, with annual shipments reaching 594 million by 2016. China will account for almost half of all shipments in the region and nearly a quarter of the world’s smart phones in 2016. This equates to only 10 million less than is forecast to ship in the whole of the Americas in that year.
Canalys managing director for Mobile and APAC, Rachel Lashford, said, ‘The latest, in-depth research for our dedicated Smart Phone Analysis China service reveals there will be a substantial increase in the number of first-time smart phone users in China over the next 12 months, while feature phone shipments will continue to decline. Smart phone sales will move beyond tier-one and tier-two cities.’
China’s domestic feature phone vendors are rapidly moving their businesses to smart phones, supported by low-cost solutions from chipset providers, such as MediaTek, Spreadtrum and Qualcomm’s QRD.
‘We anticipate strong demand from local Chinese vendors selling in both operator and open channels,’ said Nicole Peng, Canalys Research Director for China. ‘Chipset vendors are reporting growing momentum in 2.5G (EDGE) smart phone solutions. For less developed areas where 3G coverage is limited, 2.5G smart phones have advantages in cost and battery life. They are becoming popular with consumers, especially where prices are already close to those of feature phones (around RMB500, US$78). The tier-three and tier-four cities are feature phone vendors’ traditional strongholds. Local vendors will use their long-standing relationships with open channels and their established infrastructure to distribute smart phones, with or without operator subsidies, over the next few years.’
In terms of percentage growth, Canalys expects Latin America to move fastest, with a CAGR to 2016 of 27.3%. It forecasts good double-digit growth in all countries, but Brazil and Mexico will account for more than half of all shipments in the region.
Globally, Canalys expects Android to remain dominant, with 57% of the smart phones shipped in 2016 running the OS (up from 49% in 2011). It expects Apple’s share of this much larger market to remain similar to today, at around 18%. Microsoft is expected to make inroads over the coming years.
In the pad market, however, the OS picture will be quite different. Canalys expects Apple to take a little under half of the market in 2016. The plethora of Windows 8 pads that will be introduced over the next few years are predicted to bring Microsoft’s share to around 17%. Competitively priced Android pads, such as Google’s Nexus 7 and Amazon’s Kindle Fire models will have an impact in terms of volumes, but Android’s share is forecast to remain relatively stable at 35%, unless vendors make radical improvements to the overall user experience. In contrast to smart phone market trends, the US is expected to dominate pad shipments, with the volume more than doubling to 88 million units in 2016. China is expected to be the second largest country market, with shipments of around 20 million.
‘Pads are the fastest growing consumer electronics products in history and are forecast to represent 29% of total PC shipments in 2016. But the market remains dominated by a single vendor. Other PC and smart phone vendors are currently finding it hard to weaken Apple’s position,’ said Canalys Analyst Tim Coulling. ‘The only product that most would consider a big hit is the Kindle Fire, brought to market by Amazon – an Internet retailer. Tight integration of hardware, software and services is a prerequisite for competing in the pad market, even at low price points, and fragmentation among other pad vendors’ offers helps Apple maintain its position.’
Analyst contacts
To speak with any analyst quoted in this release, please contact the appropriate Canalys office: Rachel Lashford, Nicole Peng (Canalys APAC), Tim Coulling (Canalys EMEA). Or contact another member of Canalys’ global analyst team: Chris Jones (Canalys Americas), Jessica Kwee, Pin-Chen Tang (Canalys APAC), Pete Cunningham, Tim Shepherd, Tom Evans (Canalys EMEA).

Analysys data: 2012Q2 China Android Smartphone market 82.8% [Analysys International release, Sept 5, 2012] as translated by Bing:

Easy views network hearing” easy views international: according to EnfoDesk easy views intellectual library industry database recently publishing of 2012 2nd quarter China phone terminal market monitoring report under displayed, 2 quarter, China smart phone terminal (does not containing parallel and cottage machine) market in the, Android Department sales accounted for than from Shang last quarter of 76.7% upgrade to this quarter of 82.8%, net 6.1%. While the Symbian sales percentage has continued to free fall to the ground from the parent 11.8% to 6%. In addition, iOS small callback to 6%.

2012Q2 OS smartphone market penetration in China (not including parallel and cottage)
2 quarter pick-up systems from Smartphone ( encyclopedia of Analysys : smartphones ) [average smartphone] price changes, Android from 1670 [yuan i.e. US$263] last quarter, continuing down to the quarter of 1560 [yuan i.e. US$246]; 1320 [yuan i.e. US$208] of Symbian from last quarter down to 1170 dollars [yuan i.e. US$185] this quarter.

2012Q2 China Android and Symbian Smartphone price
(not including parallel and cottage)
Information about the mobile Internet more relevant data, please visit
http://data.eguan.CN/yidonghulian
For more content, please visit http://www.enfodesk.com/SMinisite/maininfo/regapply-cf-17.html
Or call the customer service-4006-515.

Analysys data: 2012Q1 China Android Smartphone market share increased from 76.7% [Analysys International release, June 6, 2012] as translated by Bing:

Analysys Web video” Analysys: at present, according to EnfoDesk Analysys think-tank on traditional retail markets of mobile phones (of the last quarter of 2012 quarterly monitoring mobile terminal market) data monitor display: Chinese smartphone market, Android system’s market share in handset sales rising 5 consecutive quarters.
Vulnerability analysis:
In the last quarter of 2012 China Mobile end-markets quarterly monitoring data show end of 2012 Q1, carrying Android in the Smartphone market system’s market share in the Smartphone Terminal 76.7%, 10% average quarterly market share gain. At the same time, as the Smartphone market continues to mature, carrying Android system average Smartphone prices are also way down to 1670 [yuan i.e. US$263 from 2300 yuan i.e. US$363 a year earlier].
Combined with traditional mobile phone sales channels under the line status, EnfoDesk Analysys Research think-tank believes that mobile phone sales market share of Android system continue to enhance, benefit from its open source nature attract numerous manufacturers to participate in, and China in the past two years in the Smartphone market and 3G business increment. Through the performance of manufacturers on the market today as well as the impact of EnfoDesk Analysys think tank study says
1. Is now dominated by application of the formation of eco-systems, as well as the Android open source, attracting new industry participants, such as Internet companies to enter product prices are depressed, make the increasingly intense market competition environment, product prices are driven down, threats to traditional enterprise bargaining power in the channel.
2012Q1 China smartphone sales share
2. Fragmentation trends exacerbate the Android system. Traditional manufacturing enterprises to overcome the effects of homogenization of products of intelligent systems, secondary development on the Android system, causes the application to version adjusted accordingly, application developer development costs gradually increased.
Smartphone price quarterly changes of 2011Q1-2012Q1 Android system
3. Sales in this period dominated by domestic brands in the low-end products, intelligent products of these enterprises continue to 3G input costs on the production line. But at the same time, while veteran international brand market share continues to decline, it would shorten the product line, focusing its research and development production 4G products research and development. With the advent of 4G era, will reshuffle the mobile terminal market. (Analysys International)
Information about the mobile Internet more relevant data, please visit http://data.eguan.CN/dianzishangwu
For more content, please visit Enfodesk Analysys Thinktank
http://www.enfodesk.com/SMinisite/maininfo/regapply-cf-17.html
Or call the customer service-4006-515.
Related reading:
2011Q2 China’s massive increase in Android share Symbian tumble

Is sun setting on smartphone profit miracle? [ReutersVideo YouTube channel, Aug 16, 2012]

… in 2 years the low-end has blown up …
China smartphone sales by price tier Q1 – 2010 Q1 – 2012
<1,500 yuan [<US$ 237] 17.7% 60%
1,500-3,000 yuan [US$ 237-473] 51.5% 24%
>3,000 yuan [>US$ 473] 30.8% 16%
Source: Jefferies Research
Faster, bigger, better: the smartphone tech arms race has produced great handsets and great returns. But China’s market trends suggest cheaper is set to be the next battle cry.
Cynthia Meng, China/HK TMT Equity Research, Jefferies Hong Kong:
[00:49] Next year it’s going to be about who is going to provide the best value for my money from a consumer point of view, from a telco point of view, because we think that hardware specifications for the handsets have already peaked. [01:03]
Narrator, xxx Gordon in Hong Kong:
In other words the oversized screen and quadcore processors of your precious Samsung [Galaxy] S III will soon be standard and achieved in handsets in China. [01:13]
commoditization of smartphones
[02:11] A race to the bottom will present a major challenge for Apple and Samsung who put together have dominated the industry in the last couple of years. [02:19] If the China trends spread globally the shift to cheaper handsets will mean tighter margins and slower growth for this industry powerhouses and new opportunities for little known upstarts like Xiaomi. [02:26]

The Chinese View: VIDEO: STUDIO INTERVIEW: CHINA’S SMARTPHONE MARKET [CCTV News – CNTV English, Sept 3, 2012]

iPhone Ranked Seventh in China’s Smartphone Market — Watch Out, ZTE [AllThingsD.com, Aug 24, 2012]

Apple’s iPhone has been gaining a lot of traction in China recently. As Apple CEO Tim Cook said during the company’s third-quarter earnings call, greater China accounted for two-thirds of Apple’s revenue in the Asia-Pacific region during the period.
“In terms of iPhones in general in mainland China, we were incredibly pleased with our results,” Cook said. “We were up over 100 percent, year over year.”
That’s an impressive achievement. But Apple still has a lot of work to do in China before the iPhone claims the same levels of market penetration it enjoys in the U.S. In China, the iPhone has captured about 7.5 percent of the smartphone market, compared to rival Samsung, which has claimed more than 20 percent, according to IHS iSuppli. Despite its popularity in the country, the iPhone is still ranked seventh in the Chinese smartphone market.
Why? Two reasons. First, Apple doesn’t yet offer a truly low-end smartphone that appeals to price-conscious Chinese consumers. (To be clear, China Telecom is offering the iPhone fully subsidized, but it requires subscribers to sign a contract that ties them to a two-year $62 per month plan.) Second, and more importantly, the iPhone doesn’t yet support Time Division Synchronous Code Division Multiple Access (TD-SCDMA), China’s homegrown wireless standard. And until it does, China Mobile, the world’s largest wireless carrier, can’t offer it to its 688 million or so subscribers.
“Among all the international smartphone brands competing in China, Apple is the only one not offering a product that complies with the domestic TD-SCDMA air standard,” IHS iSuppli’s Kevin Wang said in a statement. “For Apple, this is a huge disadvantage, as TD-SCDMA represents the fastest-growing major air standard for smartphones in China, with shipments of compliant phones expected to rise by a factor of 10 from 2011 to 2016.”
In other words, if Apple wants access to the massive addressable market that China Mobile has to offer, it’s going to have to offer a lower-end iPhone variant designed specifically for TD-SCDMA, something it has been loath to do in the past, and hasn’t given any indication that it’s willing to do in the future. As Cook said during Apple’s last earnings call, the company feels that its business is strongest when it focuses on making the best products it can, not the most inexpensive ones.
“I firmly believe that people in the emerging markets want great products, like they do in developed markets,” Cook said. “And so we’re going to stick to our knitting and make the best products. And we think that if we do that, we’ve got a very, very good business ahead of us. So that’s what we are doing.”

Breakingviews: Apple v. Samsung [ReutersVideo YouTube channel, Aug 27, 2012]

Breakingviews columnists discuss the implications of Apple’s U.S. victory in the high-profile tech patent spat and the implications for future smartphone devices and lawsuits elsewhere.

Apple Should Take The $199 Chinese Smartphone Seriously [Seeking Alpha, Sept 6, 2012]

At a time when China is set to overtake the U.S. as the world’s largest smartphone market, little-known Chinese firms are prepared to battle it out for market dominance with the maker of the game-changing iPhone, Apple (AAPL). As per the predictions of IDC and Gartner, China’s smartphone shipments could hit 140 million this year, exceeding those in the United States.
There are a number of Chinese brands offering similar capabilities, nominally, as the iPhone at half the price, most of them using a forked version of Google’s (GOOG) Android. The names include ZTE Corp., Lenovo Group, and other small private firms like Xiaomi, Gionee, and Meizu Technology. Even cheaper smartphones are offered by Alibaba Group, Shanda Interactive, and Baidu (BIDU) for fewer than ¥1,000 (~$150 U.S.).
Xiaomi Technology, founded just two years ago, has emerged as a serious potential threat to the likes of Apple and Samsung in smartphone arena. According to its CEO, the company sold more than 3 million phones with revenues close to $1 billion for the first half of 2012. Its latest offering, a successor to its popular MiOne (MI) smartphone, the MI2, costs less than half the price of iPhone 4S, but exceeds its specifications. Xiaomi not only tries to mimic the iPhone’s specifications, but has also been able to charge fans ¥199 (~$31) to attend the Beijing launch of the phone, the same way as Apple followers would pay to see Steve Jobs showcasing new products. The Xiaomi conference was attended by more than 1,000 people, with the proceeds going to charity. The MI2, which is expected to hit the markets in October, will have quad-core Qualcomm (QCOM) S4 Pro SoC, an 8 mega-pixel camera, and a voice-assistant similar to Apple’s Siri, and is priced at ¥1,999 ($310). This is no cheap knock-off, but rather a serious piece of hardware packed with the latest technology.
The fascinating part of Android’s rise here is that Microsoft (MSFT) will likely see more profit from many of these phones than Google will due to the licensing agreements many of them have made to avoid patent issues with Redmond. Reports are spotty, but Microsoft collects anywhere from $5 to $15 per Android license and has deals with at least half of the phones sold. Moreover, it is very possible it makes more money than Google does.
In the coming years it is expected that Apple’s market share may flatten out or even dip, as it has this year, but market share is not Apple’s goal; it has always been about margins — selling a premium product at extremely high margins to those with the resources to not care about the upfront cost. Estimates from IDC place the sub-$200 smartphone at 40% of the shipments, while devices costing more than $700 made up 11% of the market, which is where Apple plays and why it still controls most of the profits generated by the industry. China and India make up 40% of new smartphone activations.
This huge difference in shipments is mainly due to the limited purchasing power of an average Chinese person, which is around ¥800-¥1,500 ($130-$240). By contrast, the iPhone comes with a price tag of around $800, the equivalent of two months of earnings of an urban Chinese person (in an area that has around 670 million people).
According to a report from Gartner, Apple’s market share by volume has been sliding and iOS‘ share of the mobile operating system space is expected to slip to third place by 2016 below Android and Windows Phone. The Gartner report is, however, very controversial as Windows Phone has not proven anything to this point, although Nokia’s (NOK) sales of its Lumia 610 and Asha line of proto-smartphones are keeping its brand alive while it searches for the killer phone. Even in its second-largest market, iPhone sales slipped for the April-June quarter due to inventory adjustments after the huge launch of the iPhone 4S.
Apart from these estimates, Apple also suffers on various fronts in China. The iPhone is backed by China Telecom and China Unicom, but the country’s and the world’s leading telco China Mobile (with about 655 million subscribers) has still not supported it. Apple and China Mobile are still working on the details of China Mobile’s implementation of CDMA, which requires Apple to build a specific phone for its network.
Responding to the competition and the difference between the iPhone and the local offerings, Apple recently slashed the price of the iPhone 3GS below $200. While an entry-level Apple phone is something that the market will absorb, part of Apple’s appeal is the status it confers and a 3GS simply not a strong enough status symbol to drive sales. Mix in that with Chinese preferences for buying from Chinese companies and this market becomes a whole lot harder for Apple to maintain not its sales per se — it can manipulate prices to maintain sales — but its extreme margins. The latest earnings call highlighted this as it sold a lot of lower-end iPads and iPhones in Asia, which pushed its results and future guidance under 40% net margins.
Companies like Lenovo, ZTE, and Huawei are gaining because they are Chinese and are providing good products at reasonable prices. Lenovo, in particular, is pushing its smartphone and PC strategy both up and down the value chain, similar to Samsung’s approach. It is working very well for Lenovo, whose revenues were up 40% in the second quarter when everyone else was complaining of softening business.
Apple’s problems are the standard problems for a company on top of the world; everyone will nibble away at it in various little ways. How it responds to this is key.
The recent lawsuit victory over Samsung and its pressing of the legal attack smacks of a company that is frightened. Why should it fear Samsung? And if it doesn’t, why did it go after Samsung and restrict consumer choice, a clear breach of its branding compact with its fans? Is it trying to push Samsung into Windows 8 Phone’s arms? All of these things point to further margin erosion for Apple and a slowing of its titanic growth without a new market to push into. As things stand now, staking a new position in Apple requires believing none of these issues matter.
It points to Apple becoming a value trap at some point in the future. Not every country, especially China, will grant Apple an injunction against knockoff competition; quite the opposite is true. Many investors are sitting on capital gains so large they can’t sell, and the dividend will pay them well enough to stay in even if the price goes nowhere. But new investors should be very careful in light of the market dynamics.

Microsoft adding staff, R&D in China mobile push [Associated Press, Sept 6, 2012]

BEIJING (AP) — Microsoft Corp. will hire more than 1,000 additional employees in China this year and boost research and development spending by 15 percent as it tries to catch up with Apple and Google in the fast-growing mobile Internet market, executives said Thursday.
The announcement adds to intensifying competition in wireless Internet in China, where nearly 400 million people surf the Web using mobile phones and other devices. Microsoft is promoting its Windows 8 mobile operating system but came late to the market and trails Apple Inc. and Google Inc., whose Android system is widely used in China.
“We respect that we have two players in the market which have a strong role, and we feel ready to attack and have different offers to basically change the game plan on that one,” said Microsoft’s CEO for China, Ralph Haupter, at a news conference.
The new employees will be in addition to Microsoft’s workforce of 4,500 in China and will be spread across research and development, marketing and customer service, Haupter said.
Research spending in China will rise by 15 percent over last year’s $500 million, according to another executive, Ya-Qin Zhang, Microsoft’s Asia-Pacific chairman for research and development. He said the current research staff of 3,000 would be expanded by about 15 percent.
Global technology companies and local rivals are spending heavily to gain a foothold in mobile Internet in the world’s most populous online market as Chinese users shift quickly to the new technology.
This week, Chinese search engine Baidu Inc. released its own new mobile browser to compete with Google and Apple and announced it will open a cloud computing center.
China had 538 million people online at the end of July, up 11 percent from a year earlier, according to the China Internet Network Information Center, an industry group. The share that uses wireless devices grew twice as fast, rising 22 percent to 388 million, or 70 percent of the total.
Android dominates the Chinese smartphone market, used on 76.7 percent of phones in the second first quarter of this year, according to Analysys International, a research firm. Apple’s iPhone dominates the higher end of the market.
Microsoft plans to recruit more local partners to develop mobile applications specifically for China, said Haupter. He said the company believes it has an advantage in doing that because developers can draw on their experience working on other Microsoft products.
Zhang said Microsoft’s six development centers in China that now spend about 80 percent of their time working on products for global markets will focus more on creating offerings tailored to Chinese customers.
Microsoft also plans to expand its cloud computing business in China, the executives said. Zhang said about 100,000 commercial customers now use its private cloud computing service and a service for use by the public is being developed.

Microsoft Names New Leaders in Key International Markets [Microsoft press release, April 13, 2012]

Ralph Haupter, currently serving as area vice president (AVP) for Microsoft Germany, has been promoted to corporate vice president and named CEO for Microsoft GCR. Haupter is replacing Simon Leung who has decided to leave Microsoft for personal and family reasons. Gordon Frazer, currently serving as managing director (MD) for Microsoft U.K., has been named chief operating officer (COO) for Microsoft GCR. He is replacing Michel van der Bel, who will assume the role of MD for Microsoft U.K. Haupter and van der Bel will report to Jean-Philippe Courtois, president of Microsoft International, and Frazer will report to Haupter. …
Haupter is a seven-year veteran of Microsoft, having delivered excellent and sustainable results in growth and profitability and repeatedly proving his ability to build and grow high-performing, diverse organizations. He previously served as head of the partner division for Europe, Middle East and Africa and general manager (GM) of Microsoft’s Small and Midmarket Solutions & Partners Group for Western Europe, both based in Paris, and served as COO for Microsoft Germany before becoming the German AVP. Before that, he worked for IBM both in Germany and internationally.
Frazer is a 16-year veteran of Microsoft, having served as the GM for Microsoft South Africa for four years and most recently as the Microsoft U.K. MD for the past six years. He brings a tremendous amount of operational expertise to the Microsoft GCR team from his various roles across both developed and emerging markets. His leadership in managing the full breadth and depth of Microsoft’s business in the U.K. will serve as a strong asset in helping take Microsoft China’s operations to the next level of efficiency and growth.

Leading the New Era, Winning the Future—Microsoft Announces Development Strategy in China [Microsoft China press release, Sept 6, 2012]

Partnering for an Innovative, Competitive, and Talented China

New leadership team in Greater China
(third from left is the COO Gordon Frazer and the fourth is the CEO Ralph Haupter)
September 6, 2012, Beijing– Microsoft China today announced its new strategy and commitment to partnering with the country for an innovative, competitive and talented China by further enhancing and accelerating investments. In the new fiscal year, Microsoft will recruit more than 1,000 staff in China, 50% of which will be college graduates. Microsoft’s annual R&D investment will exceed $500 million, and the company will explore local markets in more provinces and deepen its engagement in industrial informatization.
Over two decades of growth, Microsoft China has continued to penetrate deeply into increasingly important local markets. Ralph Haupter, Corporate Vice President, Chairman & CEO Microsoft Greater China Region, said: “Since entering China 20 years ago, Microsoft has grown steadily in China and acquired a deeper understanding of the Chinese market. Our new strategy reflects our perception, emphasis and commitment to the China market. In this new era, China and the entire Greater China Region will become the source of global innovations. Through comprehensive devices and services combined with cloud computing, Microsoft is working closely with the Chinese government, partners, customers and the academic world, entering this new era by leveraging our advantages.”
Haupter stressed that this year is a big year for Microsoft, with the introduction of many new products and technologies, and also a year where Microsoft China is making a great effort to further develop the market. “Our new leadership team in Greater China has helped develop a new strategy for customers and partners, deepening cooperation with governments of all levels to strengthen innovation in China. The team will popularize new technologies and explore new markets,” Haupter said.
Through continuous investment of innovation resources and improving the scale of partnerships in China over the years, Microsoft Asia-Pacific R&D Group has become Microsoft’s largest R&D base outside of the United States, with the most complete functions and innovation chain covering basic research, technology incubation, product R&D and industry cooperation. Chinese R&D teams have made great contributions to Microsoft products launched this year, such as Windows Server2012, Windows 8, New Office, SQL Server 2012 and Surface. Ya-Qin Zhang, Corporate Vice President and Chairman of Microsoft Asia-Pacific R&D Group, said: “We are lucky to be in an era where globalization is deepening, the IT revolution is emerging and China is rising. Microsoft’s continuous exploration in natural human-machine interfaces, mobile Internet and cloud computing will help us win the future and contribute to China’s sustainable development.”
Samuel Shen, COO of Microsoft Asia-Pacific R&D Group, said Microsoft’s software outsourcing business was now worth more than $200 million per year. In the future, Microsoft will continue to work closely with local communities through programs such as the Internet of Things, Big Data, cloud computing, cloud-based smart cities and the Microsoft Accelerator for Cloud Computing, accelerating the vision of “Innovation in China, Innovation for the World”
According to Microsoft’s new strategy in China, Microsoft is committed to cooperating with the Chinese government and industry, aligning with China’s priorities and partnering for an Innovative, Competitive, and Talented China. Gordon Frazer, Vice President and COO of Microsoft Greater China Region, said that over the next five years, Microsoft China will expand its footprint in China, deepen cooperation with governments of all levels and partners, improve customer support and foster talents on a broad scale:
  • Expand Microsoft’s footprint in local markets: Over the next five years, Microsoft will expand its presence in over 20 cities across 15 provinces by expanding local teams, enhancing local management, working closely with local governments, making contributions to local informatization, building cloud-based smart cities, and providing cloud-based solutions for e-government, city management and citizen services.
  • Accelerate local partner ecosystems and expand service coverage: Microsoft will deepen customer services, deliver joint services and solutions with partners, and engage in further convergence of informatization and industry upgrading to improve the core competency of Chinese enterprises. By the end of this year, Microsoft will set up its second technical support center in China to enhance support for Chinese customers and partners, share best practices and knowledge of supporting global customers to help them accelerate the adoption of new technologies and share with them the experience of providing cloud services to customers in Asia. Microsoft will also drive partners’ development through many forms: system-grade innovation support for OEMs, software engineering assistance for software outsourcing companies and innovative design references for hardware manufacturers.
  • Foster talents in a large scale: Over the next five years, Microsoft will hire more talent in China to better serve and support its partners in China, foster talents for the Chinese software industry and improve the skills of Chinese youths.

China to Overtake United States in Smartphone Shipments in 2012, According to IDC [IDC press release, Aug 30, 2012]

Top Five Smartphone Markets and Market Share for 2011, 2012, and 2016 (based on shipments)

Country 2011 Market Share 2012 Market Share 2016 Market Share 2011 – 2016 CAGR
PRC 18.3% 26.5% 23.0% 26.2%
USA 21.3% 17.8% 14.5% 11.6%
India 2.2% 2.5% 8.5% 57.5%
Brazil 1.8% 2.3% 4.4% 44.0%
United Kingdom 5.3% 4.5% 3.6% 11.5%
Rest of World 51.1% 46.4% 46.0% 18.1%
Total 100.0% 100.0% 100.0% 20.5%

Source: IDC Worldwide Mobile Phone Tracker, 2012 Q2 Forecast Release, August 30 2012

Strong end-user demand and an appetite for lower-priced smartphones will make China (PRC) the largest market for smartphones this year, overtaking the United States as the global leader in smartphone shipments. According to the International Data Corporation (IDC) Worldwide Quarterly Mobile Phone Tracker, China will account for 26.5% of all smartphone shipments in 2012, compared to 17.8% for the United States.
“Looking ahead, the PRC smartphone market will continue to be lifted by the sub-US$200 Android segment,” said Wong Teck-Zhung, senior market analyst, Client Devices, IDC Asia/Pacific. “Near-term prices in the low-end segment will come down to US$100 and below as competition for market share intensifies among smartphone vendors. Carrier-subsidized and customized handsets from domestic vendors will further support the migration to smartphones and boost shipments. Looking ahead to the later years in the forecast, the move to 4G networks will be another growth catalyst.”
“Regionally, we expect smartphone demand to flow down to lower-tier cities,” added James Yan, senior market analyst for Computing Systems Research at IDC China. “After going through a period of sustained high growth, top-tier cities are likely to see decelerating smartphone growth rates. In contrast, secondary cities are expected to experience accelerated smartphone growth, with strong demand for low-cost models as well as high-end models, which are desired as status symbols.”
“The fact that China will overtake the United States in smartphone shipments does not mean that the U.S. smartphone market is grinding to a halt,” said Ramon Llamas, senior research analyst with IDC’s Mobile Phone Technology and Trends program. “Now that smartphones represent the majority of mobile phone shipments, growth is expected to continue, but at a slower pace. There is still a market for first-time users as well as thriving upgrade opportunities.”
“In addition to China and the United States, several other countries will emerge as key markets for smartphone shipment volume over the next five years,” said Kevin Restivo, senior research analyst with IDC’s Worldwide Mobile Phone Tracker program. “High-growth countries such as Brazil and Russia will become some of the most hotly contested markets as vendors seek to capture new customers and market share.”
Top Five Markets for Smartphone Shipments
As it becomes the leading country for smartphone shipments this year, the PRC smartphone market will continue to grow, primarily on demand for lower-cost handsets. While this bodes well from a volume perspective, it also means lower average sales values (ASVs), thinner margins, and increased competition from all players. Over the course of the forecast, China’s share of the global smartphone market will decline somewhat as smartphone adoption accelerates in other emerging markets.
Smartphone shipments into the United States will increase as users upgrade their devices and feature-phone users switch over to smartphones. Furthermore, a combination of lower-priced models, expansion of 4G networks, and the proliferation of shared data plans will encourage continued smartphone adoption. Smartphones are already the device of choice at the major carriers, and regional and prepaid carriers are following suit and competing with alternative service plans.
With smartphone penetration in India currently among the lowest in Asia/Pacific, the market has tremendous untapped growth potential. Low-end smartphones offering dual-SIM capability and local apps and priced around US$100 will rapidly bring this market to life. Although 3G data plans are currently too expensive for the majority of consumers in India, IDC expects the popularization of 3G, and in later years 4G, to drive smartphone uptake as operators roll out more affordable data plans and generous subsidies while expanding offerings to tier 2 and tier 3 cities. The affordability of service plans will be another important key to smartphone adoption in India.
Smartphone growth in Brazil will be bolstered by strategic investments by mobile operators, smartphone vendors, and regulators. Operators’ focus on increasing ARPU will drive greater demand for smartphones while smartphone vendors will look to reap greater profitability from offering such devices. The Brazilian government, meanwhile, will offer tax exemptions for smartphones and protect local manufacturing against foreign vendors. These factors, combined with solid end-user demand, will drive smartphone volumes in the coming years.
The United Kingdom has been one of the fastest growing smartphone markets in Western Europe, driven by the high operator subsidies and long-term post-paid contracts. Over the forecast period, smartphone shipments will continue to increase due to the introduction of LTE and a new range of services that will appeal to heavy smartphone users. In addition, price erosion on HSPA devices will also attract feature phones users. Growth rates will slow in the later years of the forecast as penetration plateaus and operators seek out alternative subsidy models.

Lowest H2’12 device cost SoCs from Spreadtrum will redefine the entry level smartphone and feature phone markets

And this is not a speculation but already a reality as the new Lenovo A288t came to market this month for ¥ 569 in retail [US$ 89] and as low as ¥ 479 in wholesale [US$ 75]. Such a breakthrough was enabled by Spreadtrum’s SC8810 SoC and Lenovo Mobile’s ability to exploit such an opportunity in only 5 months. Lenovo Mobile BTW became #2 behind Samsung on China’s smartphone market in June (just thanks to an earlier Mediatek based opportunity), aiming to become #1 in one or two years. So it is safe to say that with a number of other 1st tier vendors and even a kind of revitalised whitebox ecosystem soon joining the Spreadtrum (展讯处在) SoC opportunity, the H2’12 market in China will radically be redefined, with “earthquake-like” consequences for the global smartphone market as a whole. In this way the process indicated earlier in China becoming the lead market for mobile Internet in 2012/13 [this Experiencing the Cloud blog, Dec 1, 2011] will become even more dramatic.

SIGNIFICANT NEW UPDATE: Yes, indeed the revitalised whitebox ecosystem is doing the job, and in the most wonderful way, see $48 Mogu M0 “peoplephone”, i.e. an Android smartphone for everybody to hit the Chinese market on November 15 [Nov 9, 2012], which is the first “lead post” on my trend tracking blog because of such enormous significance.

Updates: Haier Adopts Spreadtrum’s Smartphone Platform [Spreadtrum press release, Aug 16, 2012]

Spreadtrum Communications, Inc. (NASDAQ: SPRD; “Spreadtrum” or the “Company”), a leading fabless semiconductor provider in China with advanced technology in 2G, 3G and 4G wireless communications standards, today announced that Haier, one of the global leaders in home appliances, has adopted Spreadtrum’s 1GHz TD-SCDMA Android platform, the SC8810. The Haier HT-I617, a smartphone designed to address the needs of the mass-market consumer, has completed China Mobile’s certification testing, paving the way for commercial launch through China Mobile channels.

Spreadtrum’s SC8810 integrates a 1GHz Cortex A5 processor, 3D/2D Mali graphics accelerator, a 5 megapixel camera sub-system and supports resolution up to WVGA and wireless connectivity including Bluetooth, WiFi and GPS. The SC8810 delivers low power multimode TD-SCDMA/EDGE/GPRS/GSM operations with dual-mode automatic switching and supports TD-HSDPA at 2.8Mbps and TD-HSUPA at 2.2 Mbps. The SC8810 is delivered with turnkey Android and systems software.

Counterfeiters rebrand themselves in China’s smartphone market [Want China Times, Aug 5, 2012]

THL, the new face of a man who once sold counterfeit Samsung phones and decided to starting producing his own brand of smart phone.

After experiencing a major drop-off in sales, the makers of counterfeit cell phones in China, known commonly as “shanzhai” phones, are now breaking back into the market under their own brand names.

Previously reliant on co-opting the names of top leading to sell their bootleg products, the new generation of cell phone manufacturers are focusing on producing budget smartphones under their own brand names.

Stores for these new brands are proliferating in Huaqiangbei, a well-known consumer electronics market in Shenzhen. These new “shanzhai” smartphone producers mostly rely on supplies of chips from MediaTek in Taiwan.

After some initial mishaps, MediaTek belatedly rolled out its first-generation smartphone chip 6513T in the second half of 2011. The move has prompted many shanzhai phone manufacturers to switch to the production of smartphones, some with their own brands.

Shanzhai smartphone makers target mainly the lower and middle end of the market for products priced at around 1,000 yuan (US$156). Huang Jixian, a shanzhai cell phone producer in Shenzhen, opened 210 stores for his new “THL” smartphones throughout China in the first four months of this year. Huang plans to increase the number of his stores to over 300 to bolster the brand image of his products.

In addition to directly owned and franchise stores, Huang has also opened online franchise stores on the platforms Taobao and 360buy. Wang Xuekai, sales manager for THL, says that the different stores play a critical role in the company’s operations, since the shopping and user experience is essential in attracting business. Online sales channels play a supplementary role, Wang said.

Spreadtrum Communications’ CEO Discusses Q2 2012 Results – Earnings Call Transcript [Seeking Alpha, Aug 10, 2012]

Leo Li – Chairman and CEO

In the second quarter of 2012, we achieved revenue of $173.1 million, which is in line with the guidance we gave previously and 7.5% increase over the first quarter. I am very pleased to update you on the progress we have made with our smartphone products.

This quarter we achieved a strong volume ramp-up of our 1 Ghz TD-SCDMA Edge smartphone chipset, shipping more than 1 million units as expected. Customers such as Huawei, Lenovo, [Pryor], Hisense and others have completed China Mobile’s certification test, launched low-cost smartphones based on our products. Many are targeting a new [ratio] price in the range of RMB500 to RMB700 [US$ 79 – US$ 110], which is making TD-SCDMA smartphone even more affordable and attractive for mass market consumers.

We are seeing very strong demand for our smartphone products and are raising our shipment focus. We now expect to ship more than 10 million smartphone chipsets in the third quarter alone. In the high end of TD-SCDMA market, we expanded our business with the first-tier OEMs, growing shipment of our best-in-class TD-SCDMA-based modems. In our customers, our customers use these modems in very high-end smartphone designs.

Our baseband and RF transceivers are shipping in flagship handsets, that is recently launched, including Samsung’s Galaxy S3, HTC One XT and the other devices from first-tier China OEMs.

With the continuing growth in our smartphone chipsets and modem business, we have firmly established our leadership position in TD-SCDMA smartphone market. Our best-in-class modems are designed into top-of-line handsets and our smartphone chipsets are in neighboring 1 Ghz devices at a price of as we low as RMB500 [US$ 79].

Recently, China Mobile has taken steps to speed up TD-SCDMA handset sales in the second half of this year. At a recent conference, China Mobile discussed a plan or plans to increase their investment in TD-SCDMA. In addition, they also encouraged handset makers to sell their TD-SCDMA product through open market with China Mobile providing support with the quality monitoring.

With the China Mobile’s handset replacement market now approaching 100 million units per year, this shift in distribution model will make the TD-SCDMA devices even more broadly available and help speed up the 3G adoption in China.

Looking ahead to the remainder of 2012, we have some exciting product introduction on that. We will be introducing our 1.2 Ghz single-core and dual-core smartphone platforms, our new WCDMA and connectivity products. These products will increase our total addressable market in China and overseas regions and position us for continuing business expansion in 2013.

Randy Abrams – Credit Suisse
Okay. My second question is on your outlook for TD-SCDMA. I think, one, from just a market perspective, volume, maybe what you expect smartphone and feature phones, and how you expect your market share. And I think you did well on recent tenders, maybe how you expect your product positioning. [Marvel] has been talking about a new platform for early next year and with MediaTek and MStar, how you see your market churn positioning and then overall market.
Leo Li – Chairman and CEO
I feel very confident that the TD overall volume for this year, I think what I said before in the last earnings call, is around 80 million to 90 million total units, both including the so-called central procurement, which you mentioned, and open market, which is the non-mentioned. I think the open market in particular next year, I can see a stronger and stronger demand for TD-SCDMA market in China.
So I certainly know for sure or I think next will be well above 100 million units for the total TD demand. So we at the moment, I think we’re about more than 55% market share in TD-SCDMA business. We hope with the technology leadership and also with the business model and then the quality of the products and everything else, we hope that we’ll maintain the leadership position in the future.
Mike Walkley – Canaccord Genuity
Okay, thanks. One question for Leo. Leo, with the MobilePeak hitting the milestone, can you just update us on your WCDMA progress and how you see the competitive landscape as you’re coming to market with that product later in the year?
Leo Li – Chairman and CEO
Sure. Yeah, they’re making nice progress there. I think it’s mostly [inaudible] type of the milestones for their WCDMA. I think also combine the 40nm technology and some other 2.5G product rolls, EDGE, GPRS and GSM, I think we’re making the progress for both modem and smartphone products towards the end of the year. So I think at this moment all the development are on track, so I’m pretty happy.
Jack Lu – RBS
Yeah, hi, Leo. One question for you. Can you talk about your 2012 smartphone full-year target? Because I think last call you mentioned a figure of 15 million to 20 million. Now, given that you are shipping more than 10 million alone in Q3, what’s your thought on that number for this year?
Leo Li – Chairman and CEO
This is a kind of — yeah, we usually only predict for the next quarter, which I did, right, around more than 10 million unit smartphones. If you really put me in a corner, so if I have to say anything to that question, I would like to say at least 25 million units for the whole year. So, yeah, it’s up number from 10 million to 15 million, what I said in early Q2.
Jack Lu – RBS
Okay. One last question if I may, can you talk about expectations for ASPs going to Q3 for both TD feature phones and smartphone products?
Leo Li – Chairman and CEO
Yeah, feature phones, unfortunately the volume dropped sharply. I mean this is unexpected a little bit. The switching from feature phone to smartphone is so quick. It’s quicker than most people expected. But as the pricing there stabilizes, the volume drops very sharply. And at this moment actually for the ASP for smartphones, it’s there quite nicely. We — actually it’s not the pricing pressure issue, rather it’s a whole [inaudible]. There’s a huge demand there. It’s just so strong that it really surprised many of us.
Andrew Lu – BarCap Research
Thank you. Earlier you also mentioned WCDMA smartphone solution will be introduced next year. Did you say Q1 next year?
Leo Li – Chairman and CEO
Actually we will try to introduce production small customers first. You know that, right? With big customers, takes longer time. So, Q1, maybe it could be the right time, and then Q2, something, yes.
Donald Lu – Goldman Sachs
Good morning. Leo, can you give us more color on how can China Mobile help the open market? By open market, I mean mobile probably is not going to subsidize, but can mobile help with distribution or marketing or anything like that?
Leo Li – Chairman and CEO
Sure. Recently there are high-level executives went to Shenzhen, the headquarter [inaudible] right, several times. And then recent one is a very high level China executive went there, had meetings with — we don’t call them free market or [inaudible] anymore, we call them a small brand, right? And actually the meeting, the result is very encouraging, because down the road, you know that year over year subsidies will be reduced and reduced, not increased and increased. So the China Mobile very much encouraging the vendors and the makers of the handsets to engage with open market. Like I said, someone asked me the question, and then, some of my customers already shipping their products in open market without any subsidies. So this is encouraging.
But I think the reason it has been now, not only encouraged by China Mobile, also because the quality of the products and the price of the smartphones, more importantly, we are facing the major trend that the smartphone is replacing the features phones in big way, in such a big way in China that we very much encourage open market people to engage.
Donald Lu – Goldman Sachs
I mean, how — I man, can China Mobile really help? Because China Mobile really is the biggest carrier in China, but can — I mean, let’s say, China Unicom and China Mobile all are encouraging open market. I mean —
Leo Li – Chairman and CEO
Remember, China Mobile was not very encouraging, remember. I mean, like last year, it was totally you had to go through, any product go through the central procurement program, passing quality acceptance test and with the subsidies and this and that, and then whatever type of handset has been determined selected by China Mobile. And now actually I think with the leadership change and then with the new kind of a thinking, I think it’s really helpful that China Mobile has this open market engagement. So they are encouraging this to — okay. And also they say that TD-SCDMA over WCDMA, very much over 2.75G for that matter actually is making a lot of sense because, one, it’s cheaper than WCDMA; two, you don’t need to pay the royalties to the WCDMA. I like that, obviously many folks, right? So they are cheaper price, high quality, and the networks are much improved, and the products much more varieties and more attractive, and the pricing obviously much more affordable.
Leo Li – Chairman and CEO
… EDGE type of smartphone is important for emerging markets. What you said is true. However, for their shipments of other company, I think the majority unfortunately is still in China, not in emerging markets. For the emerging markets, take India and Africa for example, I think at this moment the huge majority is still the low-end feature phone, not even middle-end feature phones.
So that I agree with the statement that EDGE smartphones are very much needed for emerging market, and even Qualcomm come up with the so-called platform, that means the rest of the [inaudible]. However, the volume ramp-up may not be as high as people expected. Only in China that the smartphone demand is so strong. There are other countries, I’m talking about emerging countries, there’s a demand but not as strong as this. Still majority — even the economic situation in some of the emerging countries, they’re actually deteriorating, it’s not improving. In that regard, actually putting pressure to reduce the high-end handsets actually going towards the low end. And then the demand for smartphones is there but not as strong. And then I think it will be — need maybe a couple of years to see the stronger demand, yeah.
Hao Guo – CICC
Okay, thank you. So if I may, follow up two questions. I heard from the industry that Qualcomm going to launch very low-end 3.5G solution in Q3, maybe Q4. Maybe it’s targeting for MTK and for low-end competition. So do you heard about — something about this? And can you comment on this? …
Leo Li – Chairman and CEO
The first one, I don’t comment on other people’s the product introduction. But the thing is I heard a similar type of thing and that means this EDGE smartphone is kind of important. And then as I said, I think most of that type of things being shipped in China, not necessarily shipped in overseas markets. So I think — but also I said in my opening statement and then in my Q&A that in China I think with the TD-SCDMA, to compete with the 2.5G, 2.75G type of smartphones, at least the TD-SCDMA offers some kind of [inaudible] still offer some kind of better connectivity than 2.75G, compared with WCDMA, yes, it’s cheaper and without paying the royalty, right?

End of updates

Note: MediaTek has definitely something going against Spreadtrum in this newly opening space. See: this very online (www.veryol.com)  article of July 17, 2012:
Cottage “big change in the situation (translation by Google)
山寨”大变局 (Chinese original)
For Cheng Rainbow Mobile general manager Wang Zhongcheng, really hard over the past 12 months. As one of the hundreds of small and medium-sized mobile phone manufacturer in Shenzhen, Wang Zhongcheng these eight characters of the “dire straits, lean” to describe his current situation.
Wang Zhongcheng company an area of about seventy to eighty square meters, about 10 young people in this office, mostly for sales staff. … Sitting in the office of Wang Zhongcheng, he showed reporters the company’s newly developed intelligent machines. These new MediaTek 6513T chip, more than 800 frequency, 3.5-inch capacitive screen, Android 2.3.5 operating system, ex-factory price of 400 yuan [US$ 63]. The target consumer groups positioned second and third tier cities in the country. …

Spreadtrum strengthening cooperation with Samsung, threatening MediaTek market position [DIGITIMES, July 23, 2012]

China-based handset solution vendor Spreatrum Communications has stepped up its cooperation with Samsung Electronics and may double its shipments by the fourth quarter of 2012, threatening MediaTek’s leading market position in China, according to industry sources.

Spreadtrum, through the cooperation with Samsung, won a number of TD-SCDMA solution orders from China Mobile in the first half of 2012, while MediaTek secured only one order, the sources revealed.

Spreadtrum has expanded its cooperation with Samsung to include 2.5G/2.75G/3G solutions, and Samsung’s handset shipments to China in the fourth quarter of 2012 will nearly all adopt chipset solutions from Spreadtrum, the sources indicated.

Samsung is expected to ship 70 million handsets to China in 2012, the sources estimated.

Meanwhile, Spreadtrum’s development and trial production of quad-core and 4G solutions is also ahead of MediaTek’s by over six months, indicating Spreadtrum’s improving capability, the sources added.

Note that this Spreadtrum’s cooperation with now world #1 Samsung may have an even bigger impact on Windows Phone. According to a latest report Windows Phone shipments in June were just less than 200,000 units in China which accounting for only 1.6% share of the smartphone market there.
See this it.sohu.com article of July 24, 2012:
Acclimatized! Microsoft Windows Phone Chinese Long Way (translation by Google)
微软Windows Phone中国路漫漫 (Chinese original)

Spreadtrum Smartphone Chipset Undercuts MTK by USD 1 [Marbridge Daily, July 5, 2012]

Adopted from National Business Daily article of June 29, 2012:
Cost of smart phones “counter-attack” the chip manufacturers to bring down program costs to ¥ 300 (translation by Google)
智能手机成本“逆袭” 芯片厂商拉低方案成本至300元 (Chinese original)

Chinese baseband chipset vendor Spreadtrum (Nasdaq: SPRD) has announced that its 8810 chipset is priced at USD 7-8, approximately USD 1 less than MediaTek’s 6573 solution, lowering the price of a 3.5-inch smartphone chipset solution to RMB 450-500 [US$ 70-78]. Spreadtrum currently supplies the 8810 to several major brands, including Samsung, HTC, Lenovo (0992.HK), ZTE, Huawei, and Tianyu (K-Touch). Spreadtrum estimates that its smartphone chipset shipments will exceed 20 mln in 2012.

Taiwanese chipmaker MediaTek received orders from major brands such as Huawei and ZTE (0763.HK; 000063.SZ) in early 2012. MediaTek aims to capture 50% of mainland China’s smartphone chipset market, and expects 60% of business to come from brand clients, while independent handset design firms will account for the remaining 40%.

Qualcomm senior VP Jeff Lorbeck disclosed that many handset vendors, including Lenovo, TCL, and Longcheer, have begun offering 3.5-inch HVGA smartphones using the Qualcomm Reference Design platform priced at USD 50.

MediaTek and Qualcomm have signed an agreement to offer chipsets at market prices, not below cost, according to an industry source. China’s three major domestic chipmakers produce solutions for entry-level smartphones costing under RMB 300 [US$ 50] to produce and sold at a retail price of RMB 600 [US$ 94].

Indeed a week ago came official information on SC8810-based Lenovo A288t becoming available through online channels and retail stores at 599 RMB [US$ 94] list price:

Lenovo Smartphone Based on Spreadtrum’s 1GHz TD-SCDMA Android Platform Completes China Mobile Certification Testing [Spreadtrum press release, July 19, 2012]

Spreadtrum Communications, Inc. (NASDAQ: SPRD; “Spreadtrum” or the “Company”), a leading fabless semiconductor provider in China with advanced technology in 2G, 3G and 4G wireless communications standards, today announced that the Lenovo A288t, which is a Lenovo TD-SCDMA smartphone based on Spreadtrum’s 1GHz Android smartphone platform, the SC8810, has completed China Mobile’s certification testing and is expected to achieve sales of more than one million units in the third quarter.

China Mobile’s certification test is a required step and important milestone in the operator’s procurement process and is used to confirm the maturity and stability of TD-SCDMA mobile terminal products.  Lenovo’s completion of China Mobile’s certification process with its Lenovo A288tsmartphone validates Spreadtrum’s 1GHz low-cost smartphone platform as fully compliant with China Mobile’s commercial requirements.

“China Mobile’s certification testing is a key milestone for manufacturers and a prerequisite for mobile phone purchasing by its provincial offices,” said Dr. Leo Li, Spreadtrum’s president and CEO. “The certification of the Lenovo A288t demonstrates its commercial readiness by China Mobile. China Mobile will kick off the purchase of TD-SCDMA phones after completing its certification testing, and this will build the confidence of handset manufacturers in the open market to design the Spreadtrum SC8810 platform into more low-cost smartphones.”

“Lenovo is committed to promoting China’s 3G terminal development.” said Feng Xing, vice president of Lenovo. “We recently completed China Mobile’s certification testing with the Lenovo A288t, which is based on Spreadtrum’s SC8810, and expect to achieve sales of more than one million units of this model in the third quarter, underscoring the popularity of low-cost smartphone devices. This is a milestone in our strategy of vigorously promoting 3G uptake in China by bringing Chinese consumers cost-effective mobiles that are comparable to the world’s top smartphones. The Lenovo A288t is commercially available to consumers now through online channels and retail stores at 599 RMB [US$ 94].”

Spreadtrum’s SC8810 integrates a 1GHz Cortex A5 processor, 3D/2D Mali graphics accelerator, 5 megapixel camera sub-system and supports resolution up to WVGA and wireless connectivity including Bluetooth, WiFi and GPS. The SC8810 delivers low power multimode TD-SCDMA/EDGE/GPRS/GSM operations with dual-mode automatic switching and supports TD-HSDPA at 2.8Mbps and TD-HSUPA at 2.2 Mbps. The SC8810 is delivered with turnkey Android and systems software that reduces the design time and resources required to deliver new handsets to market.

imageCurrently Lenovo A288t is sold for ¥ 569 in retail [US$ 89/94] and as low as  ¥ 479 in wholesale [US$ 75]. It has quite impressive parameters:

  • Network type: Mobile TD-SCDMA, GSM
  • Designs: straight
  • Screen Size: 3.5 inches
  • Resolution: (HVGA) 320 x 480 pixels
  • Touch ways: capacitive screen (multi-touch)
  • Pixels: 3.2 million pixels
  • Operating System: Android the OS 2.3
  • Memory: 256MB RAM
  • Body[?ROM?] size: 512MB
  • Type: Lithium battery, 1500mAh
  • Weight: 105.0g
  • GPS Module: Built-in GPS support A-GPS

Such aggressive exploitation of the SC8810 opportunity is no surprise as today came the report that China market: Lenovo takes up No. 2 in smartphone ranking, says Sino [DIGITIMES, July 26, 2012]:

Lenovo outperformed Huawei, ZTE, and Coolpad to capture the second-rank title in China’s smartphone phone market in June with a 13% share, trailing after only Samsung Electronics which took up a 15-16%share, according data compiled by Sino Market Research.

The launch of low-priced Android-based smartphones and cooperation with the top-three China-based telecom carriers contributed to Lenovo’s success in the smartphone segment, according to industry sources.

Lenovo’s capability to roll out a wide range of smartphone models targeting different price segments is also credited for its prevailing smartphone business, said the sources, adding that Lenovo plans to launch as many as 40 models of its Lephone lineup in 2012.

Following the steps of Lenovo, Acer has recently teamed up with China Mobile and China Unicom to promote its smartphones in China.

Note that Lenovo was probably the most successful vendor to adopt Mediatek’s MT6575 SoC that was leading the H1’12 smartphone market, see the Lenovo A60 related information in Boosting the MediaTek MT6575 success story with the MT6577 announcement [this Experiencing the Cloud blog, June 27, 2012] such as “China Unicom’s top selling handset in the sub-RMB 1000 [sub-US$ 157] smartphone category”. Today’s it.sohu.com article (of July 26, 2012) is providing further interesting details on that:
Lenovo mobile phone whether a flash in the pan? Liu [Jun] said that sustainable success (translation by Google)
联想手机第二是否昙花一现?刘军称可持续成功 (Chinese original)

In 2010, the company launched the “Music Fund”, support for native application development business growth. “Music Fund” first phase of investment of 100 million yuan, managed by Legend Holdings, the company’s professional investment team operations. “Music Fund”, as the angel investors will focus on the development of start-up and early business support in the mobile Internet applications and services.
Liu [Jun, senior vice president of Lenovo Group, MIDH (Lenovo Mobile Internet and Digital Home Business Group) president] said in the dialogue with the Sohu IT, app store has more than 70,000 applications, nearly ten million monthly downloads, the latest data is Lenovo music application store has been downloaded more than 100 million times. Referring to the strategy to build a music store, Liu stressed, Lenovo insisted Android+ strategy on top of the native system in Android, plus Lenovo’s own software.
Liu predicted that Lenovo Mobile [climb up to the market] will be completed within a year or two beyond, to become the leader of the domestic market share. “Speed ​​has become the core competitiveness of Lenovo Mobile, one of R & D speed. First, the speed of the supply chain.” Said Liu Jun, “smart phones than traditional mobile phones more like PCs, therefore, the product delivery time became particularly important, who first to enter the market who will have a head start. “
… Introduced, according to Liu Jun, Lenovo’s first best-selling models A60 color using MTK solution, from design to development to market in just five months, in accordance with the normal process, the same configuration of intelligent models often require 9-12 months of preparation time, Lenovo ahead of competitors in three or four months, in order to grab the opportunity, and accounted for the thousand Yuan machine market.
… Liu said Lenovo Mobile is already considering international expansion, and has taken a number of footsteps, such as Lenovo launched a smart phone in the Russian market. Accordance with the planning of the Lenovo Group, Lenovo will take the first emerging markets, after mature market strategy, the focus of this year, Russia, India, Indonesia and Vietnam.
At the end of the interview, Liu stressed that our primary task is to do the domestic market into the international market, Lenovo does not rule out in the interview a mergers and acquisitions strategy.
Previously, Lenovo executives repeatedly claimed that M & A has become the core competitiveness of the Lenovo Group. Look at the history of mergers and acquisitions from Lenovo, Lenovo has successfully completed and the integration of the United States IBM, NEC of Japan and Germany, Medion. Of course, the above integration is built around the PC expanded.

In the First Quarter 2012 Results Presentation[May 4, 2012] from Spreadtrum we could find the following slide:

image

and in the Q1 2012 Spreadtrum Communications, Inc Earnings Conference Call Transcript [May 4, 2012] (available via) the following remarks by Dr Leo Li Spreadtrum Communications, Inc – Chairman and CEO: [in]

I just came back from meeting yesterday from China Mobile. … Actually I was told by the Chairman of China Mobile that more than 60 million [will be] centrally procured — actually that’s a minimum number. The actual number will be much higher. So I am very confident my take from China Mobile for recent meetings, executives, yes they are expanded the activities into TD-SCDMA and then they will resume the phase five or phase six type of development, further invested into infrastructure of TD-SCDMA, they will ramp up a much, much higher volume.

Actually next year they — I was told by both China Mobile and other experts in the industry that there will be more than 100 million units expected for TD-SCDMA. This year 80 million to 90 million. So this volume is — I think it’s real and I am very confident that the China Mobile — I was told by China Mobile people, by the way. It’s not that I just say that. It is — TD — it’s here to stay and it will grow very fast.

I think for open channel [i.e. whitebox vendors] will be 20 million-ish or 30 million-ish, will be actually more than 50% of smartphones and for centrally procured — according to China Mobile — I mean, today there is 50-50. So smartphones actually is at or more than 50% of the total TD shipment.

The reason open market [i.e. whitebox vendors] wants TD-SCDMA, you will understand why they want EDGE but TD is very interesting because remember China Mobile has more than 600 million subscribers and then the TD market actually — if you want to use the smartphones obviously you want to have some kind of connectivity, Internet communication and then you have only two choices.

One is W, the other is TD and then the W[CDMA] is more expensive, TD is cheaper. So that’s why — and also TD has this clear advantage over W[CDMA], is that you do not need to change the SIM card. You only change your hand set. You keep your same 2.5G SIM card and then purchase a TD smartphone or TD feature phone. You can enjoy, utilize TD, the wideband or faster data service.

To some extent, even I was told that in the Shenzhen market, maybe it’s kind of like revitalized by the TD-SCDMA or EDGE smartphone type of product, maybe help them to regain so-called strength to engage with the domestic market. Remember in the second half of last year it very rapidly went down — collapsing of (inaudible) market, right. I think I we’ve been asked by many of our Shenzhen customers, asking for both TD products and EDGE smartphone products.

I think [in] the second half the ramp up will be very robust. … both through the carriers … and open channels in the second half of the year, in particular third or fourth quarter, maybe more towards fourth quarter for the open market because people are preparing for the design right now.

… the 8810 and the 6820, those are our so–called single core. I think by the end of Q3 or early Q4 we will offer the dual core 1.2 GHz type of product and then by the end of this year or early next year we will offer quad core, again 1.5 GHz products both of which will be based on 40–nanometers product.

Also it was mentioned in the previous, Q4 2011 Spreadtrum Communications, Inc Earnings Conference Call Transcript [Feb 29, 2012] (available via) that:

… from what we’ve seen, that the open market segment starts growing in volumes or demand is obviously there. I’ll give you examples. There was the WCDMA type of smartphones, right, in China. However, when we go into detail for the WCDMA users, smartphone users, we’ve found that 70% of them are actually China Mobile users, meaning they actually cannot even use the 3G features, WCDMA features for those smartphones.

So obviously there is a natural demand for TD-SCDMA type of low-end smartphones, because for the same China Mobile users they can enable the 3G high-speed data type of applications. So both for feature phones and for smartphones, we’ve seen — from our customer we’ve seen a demand for TD-SCDMA type of products.

we launched the — I think [in] Q4 of the — excuse me, 600 megahertz type of Android [see: World’s lowest cost, US$40-50 Android smartphones — sub-$100 retail — are enabled by Spreadtrum [in this Experiencing the Cloud blog, Dec 11, 2011 – Feb 27, 2012]]. One thing we didn’t anticipate was the market really don’t — they want the higher frequency one. I think we’ve seen an unusually fast market shift. I can tell you this. November, even October/November last year, even October, right, 600 megahertz type of Android smartphone was selling like hotcake. However, by November and then early December, all of a sudden the market demand for 1 gigahertz type of thing, because you want to have some kind of user experience with smartphones.

TD smartphones hasve become very attractive to general consumers and users of the TD type of — the TD market. For our TD-SCDMA 1 gigahertz Android, either Android 2.3 or later 4.0 type of things, ours are highly — maybe the highest level of integration. And like I said, maybe we are lowest cost structure in this segment.

That is Spreadtrum was able readjust its December 2011 strategy for the quickly changed market demand as is clearly visible from the following press releases as well:

Spreadtrum Introduces 1GHz Low-Cost Smartphone Platform For TD-SCDMA & EDGE/WiFi[Spreadtrum press release, Jan 4, 2012]

Spreadtrum Communications, Inc. (NASDAQ: SPRD; “Spreadtrum” or the “Company”), a leading fabless semiconductor provider in China with advanced technology in 2G and 3G wireless communications standards, today introduced a 1GHz Android smartphone platform for TD-SCDMA (SC8810) and EDGE/WiFi (SC6820) and announced that both products are now samplingwith customers. With these two new solutions, Spreadtrum is redefining the performance standard for low-cost smartphones, enabling OEMs to deliver 1GHz performance at US$100 retail prices.

“Our 1GHz Android platform sets a new bar for low-cost smartphone performance,” said Dr. Leo Li, Spreadtrum’s president and CEO.  “The graphics and web browsing performance of the SC8810 and SC6820 compares favorably to one of the most popular smartphone models globally, delivering a high performance applications and gaming experience for consumers. This type of experience has previously been available only in mid- to high-end handset models and can now be delivered by OEMs in US$100 smartphone models.  This will reshape the definition of and consumer expectations for a low-cost handset.”

Spreadtrum’s 1GHz platform is the most highly integrated, lowest power smartphone platform for the TD-SCDMA market. The solution delivers the lowest chip count with a multimode single-chip RF transceiver supporting TD-SCDMA, EDGE, GPRS and GSM and integrates power management.  The platform’s Cortex A5 processor architecture delivers more than 40% lower power consumption compared to ARM11-based products and more than 70% lower power consumption than Cortex A9 products, delivering differentiated standby and talk time performance relative to other smartphone models.

Designed with 40nm CMOS silicon technology, the SC8810 and SC6820 baseband platforms are powered by a Cortex A5 1GHz processor and incorporate an advanced multimedia subsystem which includes a Mali GPU with 3D/2D graphics acceleration and supports high definition video playback, a 5 megapixel camera, a WVGA [800×480] touch panel and connectivity features including Bluetooth, WiFi and GPS. The SC8810 supports TD-SCDMA with HSDPA at 2.8Mbps, HSUPA at 2.2Mbps as well as quad-band GSM/GPRS/EDGE with dual-mode auto handover, while the SC6820 supports quad-band EDGE/GPRS/GSM.  Both products combine silicon hardware with turnkey Android software that reduce both the design time and design resources required to deliver new handsets to market.

Spreadtrum’s expansion of its smartphone platform coincides with rapidly increasing demand in China for smartphone products.  Industry analysts expect the smartphone market in China to exceed 100 million units in 2012, leading global demand for smartphone products.

Spreadtrum Announces Commercial Availability of its 1GHz TD-SCDMA and EDGE Android 2.3/4.0 Platforms [Spreadtrum press release, April 26, 2012]

More than 200 Smartphone Design Wins Lay Foundation for Second Quarter Volume Shipment

SHANGHAI, April 26, 2012 — Spreadtrum Communications, Inc. (NASDAQ: SPRD; “Spreadtrum” or the “Company”), a leading fabless semiconductor provider in China with advanced technology in 2G, 3G and 4G wireless communications standards, today announced the commercial availability of the SC8810, Spreadtrum’s 1GHz TD-SCDMA Android platform, and the SC6820, Spreadtrum’s 1GHz EDGE/Wifi Android platform. Both the SC8810 and the SC6820 support Android 2.3 and Android 4.0 designs.

“We have now secured more than 200 design wins for our 1GHz TD-SCDMA and EDGE/WiFi Android platforms, and we are expecting to see volume shipments of more than one million units during the second quarter,” said Dr. Leo Li, president and CEO of Spreadtrum Communications. “With these designs, our customers are targeting a $50-100 retailsegment, unsubsidized.”

The SC8810 and SC6820 have been adopted by China and global OEMs on large scale to address the growing demand for low-cost smartphones in China and emerging markets. Both products support both Android 2.3 and Android 4.0 platforms, deliver best-in-class power consumption and demonstrate graphics/web performance on par with globally popular premium smartphone models, while supporting sub-$100 unsubsidized retail price points. The solutions are designed into handsets that are expected to launch commercially starting in May.

The company was also quick to rearrange its 2.5 offering for the feature phone market as there were quick changes as well:

Spreadtrum launches industry’s first 40nm 2.5G baseband [April 26, 2012]

SHANGHAI, CHINA: Spreadtrum Communications Inc. announced commercial availability of the SC6530, the industry’s first 2.5G baseband designed in 40nm CMOS silicon.

“The SC6530 is an industry first for the 2.5G market,” said Dr. Leo Li, president and CEO of Spreadtrum. “By leveraging the most advanced process node in the 2.5G segment, we are able to achieve higher performance at lower cost relative to competitive alternatives.”

The SC6530, in addition to its 40nm design, is the first 2.5G product from Spreadtrum to integrate its leading-edge baseband and RF transceiver technology into a single-chip, simplifying design and reducing overall solution footprint. The chip incorporates an ARM9 processor for high performance on a low-cost platform, and supports quad-band GSM/GPRS, triple-SIM function, HVGA display, H.264 decode and integrates an audio PA. The SC6530 couples its advances in performance, cost and integration with Spreadtrum’s mature, proven turnkey software.

The SC6530 is commercially available now. Spreadtrum expects to achieve volume shipments in May.

Spreadtrum’s three leading SoCs for the second half of 2012 products have the following parameters:

image

image

Source: the following Spreadtrum  product pages
SC8810 TD-HSPA/TD-SCDMA/EDGE/GPRS/GSM 1GHz Low-Cost Smartphone Platform
SC6820 EDGE/GPRS/GSM 1GHz Low-Cost Smartphone Platform
SC6530 GSM/GPRS Single-Chip Baseband/RF Transceiver for Multimedia Feature Phones
Notes:
1. WiFi and location technologies for SC8810 and SC6820 are according to Spreadtrum selects CSR connectivity and Location for Smartphone reference designs [CSR press release, Feb 27, 2012]. This is particularly relevant for SC6820-based EDGE/WiFi smartphones.
2. The ARM Cortex-A5 core has 1.57 DMIPS/MHz performance, while the ARM9EJ-S core 1.1 DMIPS/MHz performance. The former can be used in multicore SoCs as well with upto 4 Cortex-A5 cores (which Spreadtrum will exploit in its upcoming SoCs as well).
3. Dual-SIM Dual Standby solution became available as an option on Spreadtrum’s SC88xx series of TD-SCDMA basebands as well as future products, beginning in 4Q11. See: Spreadtrum Introduces First TD-Dual-SIM Dual-Standby Solution for TD-SCDMA [Spreadtrum press release, Oct 11, 2011]

Just this week came also the announcement of the – probably – highest end smartphone built on SC8810: Spreadtrum Powers Dual-SIM Dual-active TD-SCDMA Smartphone from Huawei [Spreadtrum press release, July 23, 2012]

Huawei T8808D completes China Mobile certification testing

Spreadtrum Communications, Inc. (NASDAQ: SPRD; “Spreadtrum” or the “Company”), a leading fabless semiconductor provider in China with advanced technology in 2G, 3G and 4G wireless communications standards, today announced that Spreadtrum’s SC8810 1GHz TD-SCDMA smartphone platform is powering the Huawei T8808D, a dual-SIM dual-active smartphone for China Mobile consumers.

Huawei’s dual-SIM dual-activefeature provides consumers with maximum flexibility in how they manage operator service fees. The dual-SIM function allows consumers to choose the SIM that offers the lowest rate or the best network coverage given their location to make or receive calls, send text messages, or use data. Dual-active capability allows both SIMs to be used at the same time, enabling users to switch back and forth between two calls and use voice and data functions simultaneously.

Mr. Wang Weijun, Huawei Device’s president of its Chinese division, said, “T8808D, as Huawei’s first dual-SIM dual-active mobile phone, delivers experience innovation to China’s 3G TD-SCDMA market. In collaboration with Spreadtrum, Huawei will continue to promote popularization and development of smartphones to meet the diverse needs of Chinese consumers with a variety of high quality terminal products.”

“Spreadtrum is driving technology innovation with 2.5G/3G single-chip dual-card dual-standby technology,” said Dr. Leo Li, Spreadtrum’s president and CEO. “In cooperation with Huawei, we have enabled the first TD-SCDMA device based on Spreadtrum’s SC8810 smartphone platform with dual-SIM dual-active capability. This feature will enable consumers to select attractive 3G services while maintaining their original operator service packages. We believe that this flexibility provided to the consumer will help further promote the rapid development of China’s TD-SCDMA market.”

Note that Spreadtrum’s early December 2011 flagship SoCs were clearly inferior to its current flagships:

image

image

Additional source: the following Spreadtrum product pages
SC8805G TD-HSPA/TD-SCDMA/EDGE/GPRS/GSM 600MHz Entry-Level Smartphone Platform
SC6810 EDGE/GPRS/GSM 600MHz Entry-Level Smartphone Platform

Spreadtrum is also investigating alternative software platforms as shown by:

Spreadtrum Low-Cost Smartphone with HTML5 Operating System Demonstrated at Mobile Asia Congress 2012 [Spreadtrum press release, July 16, 2012]

Mozilla showcases Spreadtrum smartphone running Firefox OS, highlighting potential of HTML5 on low-cost smartphones

Spreadtrum Communications, Inc. (NASDAQ: SPRD; “Spreadtrum” or the “Company”), a leading fabless semiconductor provider in China with advanced technology in 2G, 3G and 4G wireless communications standards, today announced that Spreadtrum’s SC8810 smartphone platform was selected by Mozilla to showcase its HTML5 operating system, Firefox OS, running on low-cost smartphone devices. Mozilla demonstrated the handset, based on Spreadtrum’s 1GHz SC8810 smartphone chip and running Mozilla’s Firefox OS, at its booth during Mobile Asia Congress 2012 held last month in Shanghai, China.

Firefox OS for mobile devices is built on Mozilla’s “Boot to Gecko project” which allows HTML5 applications to access the underlying capabilities of a phone, previously only available to native applications. “Firefox OS is another major step at Mozilla to bring its core values — openness, innovation and opportunity on the web — to users and developers on smartphone platforms,” said Dr. Li Gong, CEO of Mozilla Online Ltd and Mozilla Taiwan. “Our collaboration with Spreadtrum will help enable the power of this truly-open operating system to reach the billions of consumers in emerging markets who will be coming online as first-time smartphone users as well as existing smartphone users who are looking for greater value at lower cost.”

“We have been closely tracking the progress of the “Boot to Gecko project” since its inception and are very excited about Firefox OS as a concrete realization,” said Mr. Yi Kang, vice president of marketing at Spreadtrum Communications. “This type of solution has generated a lot of interest from operators, as the open-source HTML5 platform can provide them with complete control over the handset experience. We expect that the appeal of this platform to our customers will grow as the HTML5 application ecosystem expands.”

This is leading to speculations like: The Feature phone rises (again?) [EE Times, July 24, 2012]

Is it plausible? You bet. I already see signs that make such plots believable.

First is the emergence of Firefox OS. While the jury’s still out on yet another new mobile OS, this HTML5-based mobile operating system may have enough power to stir the debate.

$40 smartphone
Second, there is mounting market pressure (from handset vendors and operators alike) for low, low-cost smartphonesIn an interview with EE Times in early June, Spreadtrum’s CEO Leo Li was on the record by saying that “our customers are ready to roll out $40 ‘real’ smartphones this year.”Every chip company and handset vendor is in the market for a solution that makes all levels of smartphones possible at low cost.

Third, operators are hatching a plot to retain full control of the billing relationship with subscribers.  “Currently, operator billing is available for Android for only a handful of operators, all in developed countries,” according to Daniel Gleeson, an analyst on Mobile at IHS Screen Digest. “Otherwise payments for apps, games etc. go through credit card companies. Obviously operators would prefer that this goes through them as they would get a small slice of that pie as well.”

Fourth, as legal wrangling escalates on Apple iOS vs. Google’s Android IP front, handset vendors are surreptitiously looking for an alternative system – possibly something available for free.

Fifth, let’s not forget about a huge global market — beyond the United States and Europe — that hasn’t embraced smartphones yet. This creates big openings for developers of new technologies and new players on the mobile market.

Above all, I’m convinced that feature phones (OK, “entry-level smartphones”) are not going away, largely because the definition of smartphones vs. feature phones, in my opinion, is fundamentally phony. At best, it’s based on a self-serving marketing pitch by smartphone proponents.

image

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

+ the whole Android-centric story is getting even more interesting when Chrome, Google Drive, Chrome OS and the apps related to that are added. So the latest updates on that are included here as well (in fact from the Day 2 of the Google I/O). Pretty impressive alltogether.

Introducing Nexus 7 [Google Nexus channel on YouTube, June 27, 2012]

With a stunning 7″ display, powerful quad-core processor and all day battery life, Nexus 7 was built to bring you the best of Google in a slim, portable package that fits perfectly in your hand.

Milestones leading to the Nexus 7:

  • November 5, 2007: Google launches Android, an Open Mobile Platform
  • November 12, 2007: “early look” Android SDK releases (with Android version m3-rc20a)
  • August 28, 2008: Android Market announced
  • September 23, 2008: Android makes its debut in the T-Mobile (US) G1 smartphone (HTC Dream)with Android 1.0. This came next to UK (in November), as well as to Germany, Austria, Czech Republic and the Netherlands (in Q1 2009).
    • This was based on a brand new, 2008 class Qualcomm MSM 7201a SoC (528 MHz single ARM1136EJ-S core of just 1.06 DMIPS/MHz, Adreno 130 GPU, HSPA etc.), had 192MB RAM and 256MB Flash, and came with a 3.2″ 320×480 resolution screen.
  • September 23, 2008: Announcing the Android 1.0 SDK, release 1
  • October 22, 2008: the Android Market is available for users
  • February 13, 2009: Support for priced applications introduced on the Android Market (US and UK developers only)
  • April 30, 2009: Android 1.5 (Cupcake), the next version after 1.0, released for Android-powered handsets
    (The history of early Android releases upto version 1.6, Donut is provided by Google here.)
  • January 5, 2010: Nexus One (HTC Passion), the newest Android-powered phone running the latest Android 2.1 (Eclair) software introduced (dogfooding was in Dec 2009)
    • This was based on Qualcomm’s next-generation Qualcomm QSD8250 SoC (1 GHz single Scorpion ARM core of 2.1 DMIPS/MHz — essentially of Cortex-A8 class but architectured and designed by Qualcomm, Adreno 200 GPU, HSPA etc.), had 512MB RAM and 512MB ROM, was expandable with a microSD card, and came with a 3.7″ 480×800 resolution AMOLED screen. Note that HTC was working with Qualcomm on that at least since November 2007 when the QSD8250 was announced.
  • September 30, 2010: Support for paid application sales expanded to developers in 29 countries + users from 32 countries could buy apps from the Android Market
  • December 6, 2010: Google eBookstore launched
  • Dec 6, 2010: Introducing Nexus S with Android 2.3 (Gingerbread).
  • February 22, 2011: Final Android 3.0 (Honeycomb) Platform and Updated SDK Tools
    • The Motorola XOOM tablet device, developed an designed for 3.0, was announced earlier on Jan 5 as a 3G/Wi-Fi-enabled device in Q1 2011 with an upgrade to 4G LTE in Q2.
    • Due to closeness of 2.3 and 3.0 releases detailed information about them was provided in the Android 2.3 (Gingerbread) and 3.0 (Honeycomb) [Dec 30, 2010 – Feb 4, 2011] post on this blog.
  • October 18, 2011: Android 4.0, “Ice Cream Sandwich” (ICS) announced
  • October 19, 2011: Samsung and Google introduce GALAXY Nexus
    • Detailed information about that is provided in the TI’s OMAP4460 in Samsung GALAXY Nexus with Android 4.0 [Oct 21, 2011 – Feb 7, 2012] post on this blog. That will show very meticulously the current SoC state-of-the-art relative to the Qualcomm SoCs used in earlier G1 and Nexus smartphones.
  • November 16, 2011: Google Music with a music store introduced
  • March 6, 2012: Google Play digital entertainment distribution service in the cloud introduced for Android phones and tablets announced. Android Market, Google Music and the Google eBookstore became part of Google Play. So music, books, magazines, movies, TV shows, apps, and games are all become available from a single destinationon the web.
  • April 12, 2012: Czech Republic, Israel, Poland, and Mexico are added to the 29 seller countries in Google Play.

400 million Android activations! [GoogleMobile YouTube channel, June 27, 2012]

There are now over 400 million Android devices activated around the world—up from 100 million last June. And twelve new Android devices are activated every every second—that’s more than 1 million a day. Video was first shown at Google I/O 2012.

2012 Google I/O Keynote – Google Nexus 7 Tablet Announcement (HD, June 27th, 2012) [Hexydes YouTube channel, June 27, 2012]

This is the presentation video from the 2012 Google I/O keynote, where Google announced they will be releasing a new tablet, called the Nexus 7. The Google Nexus 7 will be manufactured by Asus, has a 7″ screen with 1280 x 800 resolution, and will use a Tegra 3 processor. The device will cost $199, is available to order today through the Google Play store, and will ship in July. This demo video is just the portion of the keynote where the Nexus 7 tablet was announced. I will be uploading the entire first half of the keynote (where the Nexus Q was also announced) as soon as it is done processing.

#1 of Android @ I/O: the playground is open [on Official Google Blog by Andy Rubin, Senior Vice President of Mobile and Digital Content, June 27, 2012]

Google Play: more entertainment
Google Play is your digital entertainment destination, with more than 600,000 apps and games plus music, movies and books. It’s entirely cloud-based, which means all of your content is always available across all of your devices. Today our store is expanding to include magazines. We’ve been working with leading publishers Condé Nast, Hearst, Meredith and more to offer magazines like House Beautiful, Men’s Health, Shape and WIRED.

Now, you can also purchase movies in addition to renting them. And we’re adding television shows on Google Play—in fact, we’re adding thousands of episodes of broadcast and cable TV shows, like “Revenge,” “Parks & Recreation” and “Breaking Bad,” from some of the top studios, like ABC Studios, NBCUniversal and Sony Pictures. You can play back movies and TV shows on all your Android devices, through Google Play on the web, and on YouTube, and soon we’ll bring the experience to Google TV devices.

Movie purchases, TV shows and magazines are available today on play.google.com, and will roll out to Google Play on devices over the coming days.

Nexus 7: powerful, portable and designed for Google Play
All of this great Google Play content comes to life on Nexus 7, a powerful new tablet with a vibrant, 7” 1280×800 HD display. The Tegra-3 chipset, with a quad-core CPU and 12-core GPU, makes everything, including games, extremely fast. And best of all, it’s only 340 grams, lighter than most tablets out there. Nexus 7 was built to bring you the best of Google in the palm of your hand. Hang out with up to 10 friends on Google+ using the front-facing camera, browse the web blazingly fast with Chrome and, of course, crank through your emails with Gmail.

Nexus 7 comes preloaded with some great entertainment, including the movie “Transformers: Dark of the Moon,” the book “The Bourne Dominion,” magazines likeCondé Nast Traveler and Popular Science, and songs from bands like Coldplay and the Rolling Stones. We’ve also included a $25 credit to purchase your favorite movies, books and more from Google Play, for a limited time. Nexus 7 is available for preorder today from Google Play in the U.S., U.K., Canada and Australia, and starts at $199 in the U.S. It will start shipping mid-July.

Google I/O 2012 – Google Play Developers : Live from the Sandbox [GoogleDevelopers YouTube channel, June 27, 2012]

First Nexus 7 with Nexus Q are demonstrated (see Q in detail later in this post), then there is an introduction to the Google Play distribution service, and finally information about Nexus 7 from its product manager. Interview with 3 people.

Exclusive: Google’s Andy Rubin and Asus’ Jonney Shih on How They Cooked Up the Nexus 7 [AllThingsD, June 27, 2012]

Building the Nexus 7 tablet was no easy task, says Asus Chairman Jonney Shih.

First off, Google gave the company only four months to build the product. Then there was the task of building a high-end tablet that could sell for just $200. Plus, he said, Google can be kind of demanding.

“Our engineers told me it is like torture,” Shih said

Rubin admits that he was upset a year ago that Android tablets just weren’t selling. After looking into some of the reasons, Rubin learned that while hardware really matters on phones, consumers are buying into a content ecosystem with tablets. Or, in Google’s case, not buying into an ecosystem.

On the hardware side, Shih and Rubin feel they have something that can serve as a full-fledged tablet computer while competing on price with the Kindle Fire. Despite its bargain-basement price, Shih notes that the device packs a high-end laminated display, quad-core chip and other high-end features.

One way the companies managed that is through razor-thin margins. Google is selling the device through its Google Play store, essentially at cost, and also absorbing the marketing costs associated with the device.

Google to unveil Nexus 7 at Google I/O 2012, say sources [DIGITIMES, June 28, 2012]

… Market sources indicate that Google will outsource production of the Nexus 7 to Asustek Computer, and purchase LCD panels for the model from Chunghwa Picture Tubes (CPT).

The displays will have a resolution of 1280 by 800 pixels with CPT serving as the primary supplier, the sources indicated.

Buoyed by the new orders, CPT has ramped up its tablet panels to 700,000-800,000 units a month and may further push output to one million units in the third quarter, the sources estimated.

CPT is currently also shipping 10,000-20,000 panels a month for notebooks, added the sources.

Amazon to start shipping new Kindle Fire in August, sources claim [DIGITIMES, June 28, 2012]

Amazon’s new 7.85-inch Kindle Fire is reported to have an August release date this year at a price of US$199, according to upstream industry sources.

The new Kindle Fire will be thinner than the current version because it adopts full lamination to get rid of the air gap between the LCD and touch panels, the sources said.

But the sources said that as the full lamination process will add an extra US$10 in production cost, it will be a great challenge for the device maker’s cost control if Amazon keeps the new Kindle Fire’s price at US$199.

Amazon hopes to maintain competitive pricing as it has seen major declines in shipments for the Kindle Fire. Market observers have noted that the company shipped only 750,000 units of the tablet in the first quarter this year, down from 4.8 million units in the fourth quarter of 2011.

Amazon reportedly may drop 7-inch Kindle Fire price to welcome new models [DIGITIMES, June 15, 2012]

As Amazon is said to be considering launching new e-book readers and 7-inch tablet PC products at the beginning of the third quarter, the company is expected to have a chance to reduce its existing 7-inch Kindle Fire pricing to US$149 to help transition to the upcoming new tablet PC products, according to sources from the upstream supply chain.

To expand its market share, the sources believe that Amazon has a high chance of adopting a similar product strategy to Apple, in addition to a new iPad product, Apple continues to sell its previous model at a cheaper price to expand market share into the lower-end segment.

Therefore, the sources expect Amazon to release a new 7-inch tablet PC with a screen resolution of 1280 by 800 and a price of US$199, in the third quarter, targeting the higher-end segment, while releasing another 7-inch model with similar specifications as the existing Kindle Fire, featuring a screen resolution of 1024 by 600 and a price of US$149. This model will be mainly pushed into the entry-level segment to expand the company’s market share, noted the sources.

Kindle Fire’s consumer-friendly price and functions allowed Amazon to achieve sales of 4.5-5 million units in the fourth quarter of 2011; however, because the device is mainly targeted at the US market, sales quickly dropped to only 700,000-800,000 units in the first quarter of 2012.

In addition to 7-inch tablet PCs, Amazon is also said planning 8.9-inch and 10.1-inch models; however, the latest information shows that the company has already halted the development of the 8.9-inch model with the 10.1-inch set to be released in the fourth quarter of 2012 or the first quarter of 2013.

As for e-book readers, Amazon is currently developing a 6-inch backlight-unit-module-integrated model that is set to launch in the third quarter at the earliest, noted the sources, adding that Amazon will also release e-book readers with other sizes in the second half of the year.

E Ink expected to ship 12 million display panels in 2H12 [DIGITIMES, June 26, 2012]

E Ink Holdings, a Taiwan-based maker of e-paper displays, is expected to ship 12 million display panels in the second half of 2012, decreasing by 14.3-20% from 2011, according to industry sources in Taiwan.

The company declined to comment on the news.

The sources indicated E Ink has obtained orders from Amazon for display panels used in 6.0 million Kindle Fire tablet PCs, with shipments to begin in the second half of 2012. In addition, E Ink has landed orders for FFS (fringe field switching) panels for use in 3.0 million Google tablet PCs expected to be unveiled at the 2012 Google I/O during June 27-29.

E Ink will also start shipments of e-paper displays for use in Amazon and Barnes & Noble e-book readers in the third quarter of 2012, the sources noted.

E Ink’s wholly owned subsidiary maker of TFT-LCD panels and e-paper modules Transcend Optronics has set up several affiliated makers in a self-use industrial park of over 50 hectares (123.6 acres) in land area located in Yangzhou, eastern China, the sources indicated.

Fast & Smooth – Android 4.1, Jelly Bean [GoogleMobile YouTube channel, June 27, 2012]

So in Jelly Bean, we put a lot of effort into making devices feel fast, fluid and smooth. This is what we call Project Butter.

Nexus 7 Specs

SCREEN
  • 7” 1280×800 HD display (216 ppi)
  • Back-lit IPS display
  • Scratch-resistant Corning glass
  • 1.2MP front-facing camera
WEIGHT
  • 340 grams
MEMORY
  • 8 or 16 GB internal storage
  • 1 GB RAM
BATTERY
  • 4325 mAh (Up to 8 hours of active use)
CPU
  • Quad-core Tegra 3 processor
SIZE
  • 198.5 x 120 x 10.45mm
WIRELESS
  • WiFi 802.11 b/g/n
  • Bluetooth
USB
  • Micro USB
OS
  • Android 4.1 (Jelly Bean)
FEATURES
  • Microphone
  • NFC (Android Beam)
  • Accelerometer
  • GPS
  • Magnetometer
  • Gyroscope

#2 of Android @ I/O: the playground is open [on Official Google Blog by Andy Rubin, Senior Vice President of Mobile and Digital Content, June 27, 2012]

Jelly Bean: simple, beautiful and beyond smart
Jelly Bean builds on top of Ice Cream Sandwich. It makes everything smoother, faster and more fluid. For example, notifications are now more dynamic: if you’re late for a meeting or missed a call, you can email or call directly from notifications. The keyboard is smarter and more accurate, and can predict your next word. And voice typing is faster, working even when you don’t have a data connection.

We’ve redesigned search from the ground up in Jelly Bean, with a new user interface and faster, more natural Voice Search. You can type your query or simply ask Google a question. Google can speak back to you, delivering a precise answer, powered by the Knowledge Graph, if it knows one, in addition to a list of search results.

Today’s smart devices still rely on you to do pretty much everything—that is, until now. Google Now is a new feature that gets you just the right information at just the right time. It tells you today’s weather before you start your day, how much traffic to expect before you leave for work, or your favorite team’s score as they’re playing. There’s no digging required: cards appear at the moment you need them most.

Introducing Google Now [GoogleMobile YouTube channel, June 27, 2012]

Google Now gets you just the right information at just the right time.

Google I/O 2012 – What’s New in Android? [GoogleDevelopers YouTube channel, June 27, 2012]

Chet Haase, Romain Guy This is a developer-centric tour of what’s gone into the system and application frameworks since the last time we got together. For all I/O 2012 sessions, go to https://developers.google.com/events/io/

Introducing Android 4.1 (Jelly Bean) preview platform, and more [Android Developers blog, June 27, 2012]

At Google I/O today we announced the latest version of the Android platform, Android 4.1 (Jelly Bean). With Jelly Bean, we’ve made the great things about Android even better with improved system performance and enhanced user features.

Improvements include a smoother and more responsive UI across the system, a home screen that automatically adapts to fit your content, a powerful predictive keyboard, richer and more interactive notifications, larger payload sizes for Android Beam sharing and much more. For a lowdown on what’s new, head over to the Jelly Bean platform highlights.

Of course, Jelly Bean wouldn’t be complete without a healthy serving of new APIs for app developers. Here are some of the new APIs that Jelly Bean introduces:

Expandable notifications

    : Android 4.1 brings a major update to the Android notifications framework. Apps can now display larger, richer notifications to users that can be expanded and collapsed with a pinch. Users can now take actions directly from the notification shade, and notifications support new types of content, including photos.

Android Beam

    : In Android 4.1, Android Beam makes it easier to share images, videos, or other payloads by leveraging Bluetooth for the data transfer.

Bi-directional text support

    : Android 4.1 helps you to reach more users through support for for bi-directional text in TextView and EditText elements.

Gesture mode

    : New APIs for accessibility services let you handle gestures and manage accessibility focus. Now you can traverse any element on the screen using gestures, accessories, you name it.

Media codec access

    : Provides low-level access to platform hardware and software codecs.

Wi-Fi Direct service discoverability

    : New API provides pre-associated service discovery letting apps get more information from nearby devices about the services they support, before they attempt to connect.

Network bandwidth management

    : New API provides ability to detect metered networks, including tethering to a mobile hotspot.

For a complete overview of new APIs in Jelly Bean, please read the API highlights document. Note that this is a preview of the Jelly Bean platform. While we’re still finalizing the API implementations we wanted to give developers a look at the new API to begin planning app updates. We’ll be releasing a final platform in a few weeks that you should use to build and publish applications for Android 4.1.

For Android devices with the Google Play, we launched the following at Google I/O today:

Smart app updates

      : For Android 2.3, Gingerbread devices and up,

when there is a new version of an app in Google Play, only the parts of the app that changed are downloaded to users’ devices

    . On average, a smart app update is a third the size of a full apk update. This means your users save bandwidth and battery and the best part? You don’t have to do a thing. This is automatically enabled for all apps downloaded from Google Play.

App encryption

      : From Jelly Bean and forward,

paid apps in Google Play are encrypted with a device-specific key

    before they are delivered and stored on the device. We know you work hard building your apps. We work hard to protect your investment.

Google Cloud Messaging for Android

        : This is the next version of C2DM and goes back to Froyo. Getting started is easy and has a whole bunch of new APIs than C2DM has to offer. If you sign-up for GCM, you will be able to see C2DM and GCM stats in the Android developer console. Most importantly, the service is free and there are no quotas. [

Learn more.]Starting from today, over 20 Android sessions at Google I/O will deep-dive in many of these areas. Join us in-person or follow us live.

#3 of Android @ I/O: the playground is open [on Official Google Blog by Andy Rubin, Senior Vice President of Mobile and Digital Content, June 27, 2012]

Nexus Q: It’s a sphere!
It’s great to be able to take your entertainment with you wherever you go, but sometimes you want to ditch the headphones and enjoy music with friends and family. So we’re introducing Nexus Q, which combines the power of Android and Google Play to easily stream music and video in your home—all controlled by an Android phone or tablet. Designed and engineered by Google [the first such device as mentioned in the Google I/O 2012 – Google Play Developers : Live from the Sandbox video embedded above], Nexus Q is a small sphere that plugs into the best speakers and TV in your house. It’s the first-ever social streaming device—like a cloud-connected jukebox where everyone brings their own music to the party. Available first in the U.S., you can preorder Nexus Q today from Google Play for $299, and it will ship mid-July.

Introducing Nexus Q [Google Nexus channel on YouTube, June 27, 2012]

Nexus Q streams your favorite entertainment directly from the cloud to your living room. Just use the Google Play and YouTube apps on your Android phone or tablet to surf an ocean of music, TV, movies and music, and Nexus Q will play it all on the biggest speakers and screen in the house. There are no downloads, no syncing, no running out of space. Just the stuff you love — at home and out loud.

Nexus Q Specs

SIZE
  • Diameter: 4.6 inches (116mm)
WEIGHT
  • 2 pounds (923 grams)
FINISH
  • Die-cast, precision machined zinc bottom housing
  • Injection-molded, interactive balanced top dome with precision bearing and satin touch coating
HARDWARE CONTROLS
  • Rotating top dome volume control
  • Capacitive touch sensor for mute
LIGHTING
  • 32 RGB perimeter LEDs
  • 1 RGB LED for mute indicator
CPU SoC
  • OMAP4460 (dual ARM Cortex-A9 CPUs and SGX540 GPU)
MEMORY
  • 1GB LPDDR RAM
  • 16GB NAND flash memory
OS
  • Android 4.0 (Ice Cream Sandwich)
SUPPORTING APPLICATIONS
  • Google Play Music
  • Google Play Movies and TV
  • YouTube
CONNECTORS AND PORTS
  • Micro HDMI (Type D)
  • TOSLink Optical audio (S/PDIF)
  • 10/100BASE-T Ethernet (RJ45)
  • Micro AB USB (for service and support)
  • Banana jack speaker outputs
WIRELESS
  • Wi-Fi 802.11a/b/g/n
  • Bluetooth
  • NFC
AMPLIFIER
  • 25W class D (12.5 watt per channel)
POWER
  • Integrated 35W switching power supply
  • World-ready 50/60Hz 85-265V AC input
  • Automatic shutdown for audio amp supply when not in use

How Nexus Q Works [Google Nexus channel on YouTube, June 27, 2012]

Nexus Q streams your favorite entertainment directly from the cloud to your living room. Just use the Google Play and YouTube apps on your Android phone or tablet to surf an ocean of music, TV, movies and music, and Nexus Q will play it all on the biggest speakers and screen in the house. There are no downloads, no syncing, no running out of space. Just the stuff you love — at home and out loud.

Google Tries Something Retro: Made in the U.S.A. – Page 2[The New York Times, June 27, 2012]

The Nexus Q, which links a TV or home sound system to the Internet cloud to play video and audio content, contains almost all American-made parts. The engineers who led the effort to build the device, which is based on the same microprocessor used in Android smartphones [seeTI’s OMAP4460 in Samsung GALAXY Nexus with Android 4.0 [this Experiencing the Cloud blog, Oct 21, 2011 – Feb 7, 2012]] and contains seven printed circuit boards, found the maker of the zinc metal base in the Midwest and a supplier for the molded plastic components in Southern California.

Semiconductor chips are more of a challenge. In some cases, the chips are made in the United States and shipped to Asia to be packaged with other electronic components.

Google did not take the easy route and encase the Q in a black box. The dome of the Magic-8-ball-shaped case is the volume control — the user twists it — a feature that required painstaking engineering and a prolonged hunt for just the right bearing, said Matt Hershenson, an engineer who helped design the Q.

At $299, the device costs significantly more than competing systems from companies like Apple and Roku. Google says this is in part because of the higher costs of manufacturing in the United States, but the company expects to bring the price down as it increases volumeThe company is hoping that consumers will be willing to pay more, though it is unlikely that the “Made in America” lineage will be part of any marketing campaign.

Google uses a contract manufacturer to make the Q. Last week it was being assembled in a large factory 15 minutes from Google headquarters. The company declined to say how many people were employed at the plant, which can run as many as three shifts each day. However, during a brief tour, made with the understanding that the exact location would not be disclosed, it was clear that hundreds of workers were involved in making the Q.

It is the kind of building that was once common across Silicon Valley during the 1980s and even the 1990s. More recently, former semiconductor fabrication and assembly factories have given way to large office campuses that house the programmers who design software and support Web sites.

Chrome & Apps @ Google I/O: Your web, everywhere [on Official Google Blog by Sundar Pichai, SVP, Chrome & Apps, June 28, 2012]

This morning we kicked off day 2 at I/O to talk about the open web—one of the most amazing platforms we have seen. To put things in perspective, today there are more than 2.3 billion users on the web—a staggering number, but it only represents one-third of the world’s population. There’s still a lot of opportunity for growth.

Chrome, which we built from the ground up as a browser for the modern web, has seen tremendous adoption. Thanks to many of you, Chrome has nearly doubled since last year’s I/O—from 160 million to 310 million active users around the world. As more and more of you live your lives online, we want to to help make it easy for you to live in the cloud…seamlessly.

A better web to your web
One of the most exciting shifts is the explosion of the mobile web. When Chrome first launched, many people were tethered to a single computer. Today most people use multiple computers, smartphones and tablets. With that trend in mind, our goal is to offer you a consistent, personalized web experience across all devices. In February, we released Chrome for Android, which exited beta this week and is the standard browser on Nexus 7, a powerful new tablet.

Starting today, Chrome is also available for your iPhone and iPad. That means you can enjoy the same speedy and simple Chrome experience across your devices. Also, by signing in to Chrome, you can easily move from your desktop, laptop, smartphone and tablet and have all of your stuff with you.

Sign-in and seamlessly experience your personalized web across desktops, phones, and tablets with Chrome for Mobile.

Living in the cloud
A modern browser is just one ingredient of living online seamlessly. We continue to invest in building cloud apps, which many people rely on daily. Gmail, which launched in 2004, has evolved from a simple email service to the primary mode of communication for more than 425 million active users globally. We’ve also built a suite of apps to help users live in the cloud, including Google Documents, Spreadsheets, Calendar and more.

At the hub of this cloud experience is Google Drive—a place where you can create, share, collaborate and keep all your stuff. Ten weeks ago we launched Drive and in 10 weeks, more than 10 million users have signed up. Today we introduced more capabilities, including offline editing for Google documents and a Drive app for your iPhone and iPad. Drive is also seamlessly integrated into Chrome OS. With Drive available across Mac, Windows, Chrome OS, Android and iOS, it’s even easier to get things done in the cloud from anywhere.

Going Google
With the help of Chrome and and the growth of Google apps, people are discovering new ways to get things done faster, connect with others, and access their information no matter what device they’re using. This is what we call “going Google.” And it’s not just individual people. Schools, government institutions and businesses—big and small—are also “going Google.” Sixty-six of the top 100 universities in the U.S., government institutions in 45 out of 50 U.S. states, and a total of 5 million business are using Google Apps to live and work in the cloud.

It’s an exciting time to be living online. To celebrate this ongoing journey, here’s a quick look back at the evolution of Chrome:

Chrome launched in September 2008, and its journey has been filled with inspiring & beautiful achievements of developers using the modern web. We’re just getting started though, and we can’t wait to see where you take things next!

[signing in to Chrome]
Get your personal Chrome experience on all your devices [on Google Chrome blog by Tim Steele, Software Engineer, Dec 13, 2011]

If you’ve used Chrome for awhile, you know that it fits you better and better over time—it just wouldn’t be yourChrome without your favorite bookmarks, apps, extensions, history, and other settings.

Signing in to Chrome lets you take your Chrome stuff with you, so you can always have your personal Chrome experience on all of your devices.

Signing in to Chrome brings your bookmarks, history, and settings to all of your devices. Just go to the Wrench menu and select “Sign in to Chrome.” Learn more at http://www.google.com/chrome/signingin

When you’re signed in to Chrome, changing something on one device instantly changes it on all your other devices. For example, add a bookmark on your laptop, and it automatically appears on your desktop, so you can always pick up right where you left off.

Signing in to Chrome is also helpful if you only have one computer, because it securely backs up your Chrome stuff online. That way, your Chrome stuff is safe, even if a truck runs over your laptop.

To sign in to Chrome, just go to the Wrench menu and select “Sign in to Chrome.”


But what if you share a computer with other people? You don’t want your bookmarks, apps, and extensions getting mixed up with everyone else’s, and you don’t want your Chrome stuff syncing to all their devices.

With today’s Stable channel release, you can now add new users to Chrome. Adding new users lets you each have your own personal Chrome experience, and lets you each sign in to Chrome to sync your stuff. To add a new user to Chrome, go to Options (Preferences on a Mac), click “Personal Stuff,” and click “Add new user.” Check out our latest Beta blog post for a few quick tips.

Keep in mind that adding new users to Chrome isn’t intended to secure your data against other people using your computer, since it just takes a few clicks to switch between users. We’re providing this functionality as a quick and simple user interface convenience for people who are already sharing Chrome on the same computer today. To truly protect your data from being seen by others, please use the built-in user accounts on your operating system of choice.

That wraps up our last Stable channel release for the year. If you haven’t taken Chrome for a spin yet, try it out and see what you think!

Update: You can learn more about signing in to Chrome at google.com/chrome/signingin.

[Google Drive]
Introducing Google Drive… yes, really [on Official Google Blog by Sundar Pichai, SVP, Chrome & Apps, April 24, 2012]

Just like the Loch Ness Monster, you may have heard the rumors about Google Drive. It turns out, one of the two actually does exist.
Today, we’re introducing Google Drive—a place where you can create, share, collaborate, and keep all of your stuff. Whether you’re working with a friend on a joint research project, planning a wedding with your fiancé or tracking a budget with roommates, you can do it in Drive. You can upload and access all of your files, including videos, photos, Google Docs, PDFs and beyond.

With Google Drive, you can:

  • Create and collaborate. Google Docs is built right into Google Drive, so you can work with others in real time on documents, spreadsheets and presentations. Once you choose to share content with others, you can add and reply to comments on anything(PDF, image, video file, etc.) and receive notifications when other people comment on shared items.
  • Store everything safely and access it anywhere (especially while on the go). All your stuff is just… there. You can access your stuff from anywhere—on the web, in your home, at the office, while running errands and from all of your devices. You can install Drive on your Mac or PC and can download the Drive appto your Android phone or tablet. We’re also working hard on a Drive app for your iOS devices. And regardless of platform, blind users can access Drive with a screen reader.
  • Search everything. Search by keyword and filter by file type, owner and more. Drive can even recognize text in scanned documents using Optical Character Recognition (OCR) technology. Let’s say you upload a scanned image of an old newspaper clipping. You can search for a word from the text of the actual article. We also use image recognition so that if you drag and drop photos from your Grand Canyon trip into Drive, you can later search for [grand canyon] and photos of its gorges should pop up. This technology is still in its early stages, and we expect it to get better over time.

You can get started with 5GB of storage for free—that’s enough to store the high-res photos of your trip to the Mt. Everest, scanned copies of your grandparents’ love letters or a career’s worth of business proposals, and still have space for the novel you’re working on. You can choose to upgrade to 25GB for $2.49/month, 100GB for $4.99/month or even 1TB for $49.99/month. When you upgrade to a paid account, your Gmail account storage will also expand to 25GB.

Introducing the all-new Google Drive. Now access your files, even the big ones, from wherever you are. Share them with whomever you want, and edit them together in real time. Learn more at http://drive.google.com/start

Drive is built to work seamlessly with your overall Google experience. You can attach photos from Drive to posts in Google+, and soon you’ll be able to attach stuff from Drive directly to emails in Gmail. Drive is also an open platform, so we’re working with many third-party developers so you can do things like send faxes, edit videos and create website mockups directly from Drive. To install these apps, visit the Chrome Web Store—and look out for even more useful apps in the future.

This is just the beginning for Google Drive; there’s a lot more to come.

Get started with Drive today at drive.google.com/start—and keep looking for Nessie…

[Today we introduced more capabilities]
Announcing your two most requested features: offline document editing and Drive for iOS
[on Google Docs blog by Clay Bavor, Product Management Director, June 28, 2012]

In April, we introduced Google Drive, a place where you can create, share, and keep all your stuff. Today at the Google I/O conference we announced two new ways to get things done in the cloud: offline editing for Google documents and a Drive app for iPhone, iPad, and iPod touch.

Offline document editing
No internet connection? No big deal. With offline editing, you can create and edit Google documents and leave comments. Any changes you make will be automatically synced when you get back online.

You can enable offline editing from the gear icon in Google Drive and find more detailed instructions for getting set up in the Help Center. Note that you’ll need the latest versions ofChrome or ChromeOS to edit offline. We’re also working hard to make offline editing for spreadsheets and presentations available in the future.

Google Drive for iOS
We launched the Drive app for Android phones and tablets a few weeks ago, and starting today, Google Drive is available for your iPhone, iPad and iPod touch.

With the Drive app, you can open PDFs, photos, videos, documents and anything else stored in your Drive while you’re on the go. You can also search all your files, add collaborators to documents, and make files available offline to view them even without an internet connection. For blind and low-vision users, the app also works great in VoiceOver mode. Learn more about what you can do with the app in our Help Center.

Get Drive in the App Store for your iPhone, iPad or iPod touch running iOS 5.0+ and visit the Play Store to get the latest on your Android phone or tablet.

To learn more about Google Drive, visit drive.google.com/start.

[Chrome OS]
Next step in the Chrome OS journey [on Official Google Blog by Linus Upson, Vice President, Engineering and Caesar Sengupta, Director of Product Management, May 29, 2012]

All of you haiku fans (like many of us on the Chrome team) can stop here; the rest can read on for more details.

A year ago we introduced a new model of computing with the launch of Chromebooks. We’ve heard from many of you who’ve enjoyed the speed, simplicity and security of your Chromebooks at home, at school or at work. (Thanks for all the wonderful feedback and stories!) Today, we wanted to share some developments with you—new hardware, a major software update and many more robust apps—as we continue on our journey to make computers much better.

Next-generation devices
Our partner Samsung has just announced a new Chromebook and the industry’s first Chromebox. Like its predecessor, the newest Chromebook is a fast and portable laptop for everyday users. The Chromebox is a compact, powerful and versatile desktop perfect for the home or office.

Speed
Speed is integral to the Chrome experience. The new Chromebook and Chromebox, based on Intel Core processors, are nearly three times as fast as the first-generation Chromebooks. And support for hardware-accelerated graphics, a built-from-scratch multi-touch trackpad and an open-source firmware stack provide a much faster and more responsive computing experience. The new Chromebook boots in less than seven seconds and resumes instantly. With the Chromebox, you can be on a video conference while continuing to play your favorite role-playing game on the side.

An app-centric user interface
With the new user interface you can easily find and launch apps, and use them alongside your browser or other apps. You can pin commonly-used apps for quick access, display multiple windows side-by-side or experience your favorite apps in full-screen mode without any distractions.

Be much more productive…or not

  • Get more stuff done, online or offline: With the built-in ability to view Microsoft Office files and dozens of the most common file formats, you can access all your content without the hassle of installing additional software. Google Drive makes it easy to create, store and share with just one click. Drive will be seamlessly integrated with the File Manager and support offline access with the next release of Chrome OS in six weeks. With Google Docs offline support (rolling out over the next few weeks), you can keep working on your documents even when offline and seamlessly sync back up when you re-connect. In addition, there are hundreds of offline-capable web apps in the Chrome Web Store.
  • Have more fun: The revamped media player and a built-in photo editor and uploader enable you to easily play and manage your personal media collections. Through the Chrome Web Store, you can access entertainment apps such as Google Play, Netflix, Kindle Cloud Reader and Pandora, and thousands of games including popular games like Angry Birds and console titles such as Bastion.
  • Carry your other computers…inside your Chromebook: With Chrome Remote Desktop Beta, you can now securely connect to your PC or Mac from your Chromebook or Chromebox. With the underlying VP8 technology, it’s almost like you’re in front of your other computers in real time.

The (always) new computer
We’ve released eight stable updates over the past year, adding a number of major features and hundreds of improvements to all Chromebooks through our seamless auto-update mechanism. There’s a lot more on the way, so all you need to do is sit back and enjoy the benefits of the (always) new computer.

For those who want to try the Chromebook and Chromebox first-hand, we’re expanding the Chrome Zone experience centers. In the U.S., Chromebooks will be available to try out in select Best Buy stores in the coming weeks. In the U.K., they’re now available in a growing list of PC World and Currys stores.

Starting today, you can get the new Chromebook and Chromebox from our online retail partners in the U.S. and U.K., and in other select countries over the coming weeks.

The Chromebook is a new, faster computer that starts in seconds, offers thousands of apps, and keeps getting better and better with free, automatic updates. Learn more at http://www.google.com/chromebook.

[the next release of Chrome OS in six weeks]
Yet another Chrome release [on Google Chrome Blog by Dharani Govindan, Technical Program Manager, June 28, 2012]

We know you’re probably tired of hearing about new Chrome releases every six weeks. Well, the good news is you don’t have to worry about updating—we’ll take care of that with automatic updates. Please enjoy the hundreds of bug fixes we’ve batched up in this release. OK, OK, that’s all. Carry on.

Less focus on feature phones while extending the smartphones effort: further readjustments at Nokia

Update as of Aug 9, 2012: … Lumia direction … camera direction …
… Asha positioning vs. Lumia and Android:

[3:19] First of all what we’re working on with Windows Phone is to take it as low end price point as we possibly can. Having said that, the Nokia Asha devices have really been developed with the emerging market consumer in mind. We’ve brought a lot of smartphone like features to the user interface, as well as investing in making access to the Internet possible for consumers who have real affordability constraints, for data compression in our browser etc. We are working to continue to invest there so that Asha is a relevant competitor to the lowest end Android devices. [4:05]

see: The BGR Show – Nokia’s Smartphones Guru [iamOTHER YouTube channel, Aug 9, 2012]

  • Speculations about Nokia
  • Nokia and the Windows Phone Summit
  • Nokia Q&A conference for financial analysts and investors, June 14, 2012
  • Nokia announcements, June 14, 2012
  • Scalado acquisition
  • Asha Touch family of mobile devices

Closely related information:
Windows Phone 8 software architecture vs. that of Windows Phone 7, 7.5 and the upcoming 7.8 [June 22, 2012]
The new, high-volume market in China is ready to define the 2012 smartphone war [Jan 6 – Feb 17, 2012]
Tech investment banking expertise to strengthen the unique value focus of growing the HTC brand and to achieve high growth again [April 18 – 25, 2012]

Other related information:
The Where Platform from Nokia: a company move to taking data as a raw material to build products [April 7, 2012]
Nokia under transition (as reported by the company) [March 11-30, 2012]
Nokia’s strategy for “the next billion” based on software and web optimization with super low-cost 2.5/2.75G SoCs [Feb 14 – April 23, 2012]
Nokia trying the first Lumia month in China with China Telecom exclusive [March 28, 2012]
MWC 2012 day 1 news [Feb 27, 2012]: Samsung and Nokia [Feb 28 – March 1, 2012]
China-based second-tier and white-boxed handset makers targeting the emerging markets [Feb 13, 2012]
Nokia CEO: salespeople to deliver true WP7 retail experience supported by improved product management, marketing and accelerated global coverage with a full breadth of products [Jan 29, 2012]
Nokia’s Lumia strategy is capitalizing on platform enhancement opportunities with location-based services, better photographic experience etc. [Jan 12 – April 27, 2012]
Smarterphone end-to-end software solution for “the next billion” Nokia users [Jan 9, 2012]
The precursor of 2012 smartphone war: Nokia Lumia vs. Samsung Omnia W in India [Jan 3 – 23, 2012]
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 – March 25, 2011 ]


Speculations about Nokia

A “short-term surprise” technology speculation: Nokia Air [s60betalabs YouTube channel, June 24, 2012]

Here’s a pretty interesting Nokia promo video we managed to find on Vimeo, the video is named ‘Nokia AIR’ having ‘company confidential’ watermark on it. The video shows-off some pretty cool concept devices, according to the video ‘Nokia Air’ is a type of cloud storage and sync service that allows you to access your data and services anytime anywhere. http://www.symbiantweet.com/weekend-watch-nokia-air

A “short-term” investors’ speculation: Nokia Takeover Seen As Collapsing Shares Signal Bottom: Real M&A [Bloomberg, June 15, 2012]

… Nokia plunged 18 percent yesterday after forecasting a wider second-quarter operating loss from handsets and saying it will cut as many as 10,000 jobs as it cedes market share to Apple Inc. (AAPL)’s iPhone and Samsung Electronics Co. devices. After wiping out about $100 billion in market value, Espoo, Finland- based Nokia trades at a 38 percent discount to its net assets, the least expensive on record, according to data compiled by Bloomberg dating back to 1995.

Nokia started out as a wood-pulp and paper company in 1865 before expanding into rubber, electronics and eventually telecommunications. The company’s market capitalization, which was more than 300 billion euros in 2000, has tumbled more than 90 percent since the iPhone was introduced five years ago, valuing it at 6.8 billion euros ($8.6 billion) as of yesterday.

Nokia had $12.4 billion in cash and short-term investments as of March 31, topping its market value of $8.6 billion yesterday, the data show. After accounting for debt, Nokia’s net cash position of $5.9 billion is still the equivalent of 68 percent of its market capitalization.

“Close to half of the market cap is cash — that’s cheap no matter what’s going on,” Falcon Point’s Mahoney said. For private-equity firms, “it’s cheap enough. When you are at this type of level, you don’t even need to cut costs that much to get value out of the transaction.”

“Who would buy them at this point?” Lars Soederfjell, a Stockholm-based analyst with Bank of Aaland, said in a telephone interview. “You need to stabilize the business. There’s too much uncertainty. It’s more like buying a lottery ticket than anything else.”

Still, industry analysts at Gartner and Framingham, Massachusetts-based IDC say they expect the Windows Phone platform will make inroads as Microsoft develops it further.

Carolina Milanesi, an analyst at Gartner, said the firm forecasts Windows Phone will be the second-biggest smartphone ecosystem after Android in 2015. IDC expects Windows Phone to pass Apple’s iOS in 2016.

Nokia seen to be running out of money and time [Helsingin Sanomat, June 15, 2012]

A result warning and the decision to cut 10,000 jobs by the end of next year is a stark indication of how badly Nokia’s business activities and financial position have weakened this year. Furthermore, there are no indications of improvement any time soon.

The Finnish mobile telephone manufacturer expects its operating loss to increase in April-June, and the complicated turns of phrase in the result warning suggest that the spiral will not end in the third quarter either.

Nokia is cutting 3,700 jobs in Finland. A mobile phone factory in Salo, which employs 850 people, is to be shut down, and the research and development unit in Oulu is to be scaled back. In addition, a research and development unit in the German city of Ulm, which has 730 employees, is to be shut down.
Job cuts are also likely to affect locations in Finland other than Salo and Oulu, but Nokia gave no further details on the matter on Thursday.
The aim is to reduce the operational costs of the mobile phones unit to EUR 3 billion by the end of next year. In 2010 the costs were EUR 5.4 billion.

By the end of March Nokia’s net assets (liquid assets minus debts with interest) had declined by more than EUR 2.1 billion. In the present quarter this trend has probably accelerated.
The depletion of assets and the significant reduction in sales could eventually lead to insolvency and possibly even bankruptcy. To avoid this, costs need to be reduced to better correspond to shrunken business activities.
After the reductions in jobs, Nokia has about 44,000 employees at work around the world [sans Nokia-Siemens obviously]. The last time that the company had such a small work force was in 1998. The serious problems are attributed to miscalculations by the management and the board of directors that have been made since 2005.
The company lost competitiveness because it held on too long to the antiquated Symbian operating system.


Nokia and the Windows Phone Summit

Closely related information:
Windows Phone 8 software architecture vs. that of Windows Phone 7, 7.5 and the upcoming 7.8 [June 22, 2012]

Nokia at Windows Phone 8 Microsoft Dev Summit 2012 [Camb078 YouTube channel, June 21, 2012]

Kevin Shields, Senior Vice-President, Program and Product Management for the Nokia Lumia range

Nokia at the Windows Phone 8 unveiling [Nokia Conversations, June 20, 2012]

Today, Nokia’s Kevin Shields – who leads product development for Lumia smartphones – joined Microsoft representatives on stage at the Windows Phone Summit in San Francisco to outline how we’re working together to build a winning Windows Phone ecosystem and bring new experiences to Lumia phones.

Microsoft’s Terry Myerson, Kevin Gallo and Joe Belfiore started the morning by previewing Windows Phone 8, which will come out later this year, and unveiled new hardware specs like NFC, multi-core processors and improved screen resolutions.

With years of experience building NFC experiences on Symbian, the Nokia N9 and most recently the Nokia Lumia 610 NFC with Orange, we’re excited about what we can do with NFC across the whole of Windows Phone. Just take another lookat the Nokia Play360 NFC speakers if you have any doubts.

Microsoft also revealed that Nokia would continue bringing unique innovations to Windows Phone 8 through our hardware, services and apps.

StartScreen_Maria35 StartScreen_Robin50

Nokia Lumia owners to get new Windows Phone 8 experience

But the news doesn’t stop there. For those who already have Lumia devices with Windows Phone 7.5, you’ll be able to update your phones with some of the new Windows Phone 8 features like the start screenand download new apps from companies like Zynga, whose Words with Friends and Draw Something will be available in Autumn.

Microsoft also announced today that the Windows Phone Marketplace has reached 100,000 apps, and with Windows Phone 8 sharing the Windows 8 core, millions of Windows developers will also be able to develop for Windows Phone ecosystem. Lumia customers can expect thousands more apps to be introduced across Windows Phone platform.

StartScreen_Kari22

The announcements underline the progress Nokia is making with the Lumia family of smartphones and in building a winning ecosystem with Microsoft. It shows how the Windows Phone experience continues to evolve at a faster pace than the competition and how Nokia’s continued investments in great location-based services benefit partners, developers and consumers.

New apps and functionality for Lumia owners

Finally, Kevin revealed that Nokia will deliver existing Lumia customers exclusive new Marketplace apps like digital Camera Extras to bring new possibilities to your Lumia including panorama shots, a self-timer, Action Shot for capturing movement and Smart Group Shot for creating the perfect group shot from several different images; new features for Nokia Drive and Nokia Transport; and also distributing a pattern of updates like WiFi tethering and flip-to-silence.

To learn more about those updates and when you can expect to see the new apps in Marketplace, check out this dedicated post. There’s a lot of exciting new stuff coming to Lumia now and in the future and we’ll keep you posted.

Camera Extras for Nokia Lumia — More Options for Capturing Great Pictures [Nokia YouTube channel, June 20, 2012]

Your existing Nokia Lumia will soon get an upgrade with added functionalitieshttp://nokia.ly/Lf6k2j Camera extras will become available June-July 2012 in Marketplace under ‘Nokia Collection’. The upcoming camera extras include four new features. Smart Group Shot makes it easy to capture great group shots with just one attempt. Action Shot captures movement in several shots and allows you to go back and forth the action. With the self-timer, you can get yourself also to the picture. And finally, the new Panorama UI helps you to capture beautiful wide landscapes with precise alignment.

Nokia Drive for all Windows Phone 8 smartphones [Nokia Conversations, June 20, 2012]

Location-based services, as Nokia announced last week, are becoming more and more core to our strategy. We’re focusing on location-based services, not just at Nokia, but bring our extending our services across many industries.

Today, we are making Nokia Drive available to other Windows Phone 8 partners to offer a turn-by-turn navigation experience for people in over 110 countries. Nokia Driveis one of the key experiences on Nokia Lumia smartphones, thanks to its ease of use and the experience that has gone into developing our location-based services. With Nokia Drive on Windows Phone 8, we will make drive navigation effortless.

Nokia Drive is one of the major apps that on Nokia’s location platform. Today, we are also making this platform and its unrivalled quality of data and richness of features available on Windows Phone 8 for all partners. This means that Nokia’s Location platform will be central to the Windows Phone 8 experience, with the intention of developing smartphones that bring advanced location experiences. Windows Phone 8 partners and developers will be able to use our location assets to build location-based apps and experiences of superior quality.

Nokia has more quality location data than any smartphone manufacturer in the market. Our platform is the most advanced mobile location platform in the world because it offers true offline functionality (for the past six years), fast client-side map rendering (50 fps) and only requires 10 per cent of the bandwidth when compared to traditional server-side map platforms.

The Nokia location platform is the biggest in the world:

  • We have maps data for more than 190 countries in more than 50 languages and navigation in more than 110 countries
  • We collect information from Nokia Drive users and local authorities to provide traffic alerts in 26 countries, and also allow dynamic rerouting
  • We have venue maps in over 5,000 shopping malls, train stations, airport, sports venues, etc. in 35 countries
  • We support multi-modal routing: by car, on foot (including footpaths, shortcuts, etc. in over 400 cities) and by public transportation (over 100 cities)

Also, Nokia’s location data is not confined to smartphones and computers. Our data already powers four out of five cars with in-car navigation and our customer list includes top brands in the tech and auto industries: Bing, Yahoo!, BMW and Ford.

All of these elements are coming together to form the ultimateWhere experience, connecting individuals with the world around them. At Nokia, we are working on constantly improving that experience, and striving to deliver novel and meaningful customer interactions with our location platform, content and apps.

*Image credits: Samsung and HTC respectively. This is a mockup of what Nokia Drive might look like on different Windows Phone 8 devices.

Nokia Q&A conference for financial analysts and investors, June 14, 2012

Nokia’s Elop: Lumia price cuts will help us take on Android in retail war [ZDNet, June 14, 2012]

Consumers do actually like Nokia’s Windows Phone Lumia device, but retailers are proving harder nut to crack, according to Nokia chief exec Steven Elop – as he set the scene for a price war with Android.

For the relatively small number of consumers the Lumia has reached in its short existence, the phone has been “well received”,  Elop told analysts on a conference call Thursday.

With “specific support from Microsoft”Nokia will aim to increase its appeal by pushing the price of the Lumia line below the entry level Lumia 610 as part of its “low end price point war” with Android.

The real challenge, Elop said, is convincing retailers to bring the device out of the shadows.

“How do you get a preferred position on a shelf, how do you make sure the lights on your device are brighter than the ones from down the road?” asked Elop.

While the aim is to get more Lumia devices into the hands of consumers, Nokia will in fact narrow its direct sales and marketing efforts to select markets, palming off less significant ones to distributors to be managed through a central hub.

The US, UK, China and “certain” Asian and European nations would remain in focus with more effort placed on carrier partnerships, said Elop.

“We’re deliberately going through a cycle of concentrating on some markets at the expense of others.”

While mapping and navigation have become commoditised, Elop said,  Nokia’s location-based services would give it an edge over rivals, pointing to Nokia City Lens, its augmented reality application, and its public transport mappingsystem.

Elop blamed Nokia’s inability to differentiate the Nokia experience on Windows Phone to date on its late entry on the platform but added that Windows Phone 8 (Apollo) and Windows 8, both expected to be released by the end of summer or thereabouts, will be “key milestones” for Nokia.

Nokia to End “Meltemi” Effort for Low-End Smartphones [AllThingsD, June 14, 2012]

One of the casualties of Nokia’s latest cuts is Meltemi, the company’s effort to create a new Linux-based operating system for low-end smartphones.

Nokia never officially confirmed the existence of Meltemi, so it likewise isn’t confirming its demise. However, sources tell AllThingsD that the project has been shelved, though elements of it may live on in other efforts.

Asked about Meltemi on a conference call Thursday, Nokia CEO Stephen Elop said that he had never talked publicly about a development project by that name, but noted that Nokia was ending some development projects.

In its press release, Nokia also took pains to note its continued focus on its current low-end smartphone platforms, known as Series 30 and Series 40. Last week, the company announced new all-touch phones in its Series 40-based Asha line.

Richard Kerris, who helps lead Nokia’s efforts with developers, said that Thursday’s moves, while difficult, should allow the company to put more resources into its key projects.

“We have awesome products in the pipeline, and our developers are going to love them,” Kerris said.

Nokia is also exploring alternatives for another of its development environments, known as Qt, which today is used largely in embedded devices.

“We’re fans of Qt, and we’ll continue to support it in the near term, but are being open about looking for opportunities which may be best for this developer framework,” Kerris said.

More information:
Nokia Meltemi survivors suggest axed OS was nearly ready [SlashGear, June 21, 2012]
No Meltemi, what about Smarterphone? What is there beyond S40? What of Qt? [My Nokia Blog]:

According to TheRegister, the Smarterphone team will work on S40 instead.

MediaTek lands 2.5G handset solution orders from Nokia, say sources [DIGITIMES, May 21, 2012]

MediaTek reportedly has landed orders for 2.5G handset solutions from Nokia with shipments to begin in the third quarter of 2012, according to industry sources. MediaTek declined to comment.

Given that global demand for 2.5G handset solutions still reaches one billion units a year, there is room for MediaTek to further expand sales in the segment although the company’s sales of 2.5G solutions have been turning weak recently, indicated the sources. MediaTek shipped 550 million 2.5G solutions in 2011.

With a revised goal of shipping 75 million 3G solutions in 2012, mostly to first-tier handset makers in China, MediaTek is expected to post strong revenue growth in the second half of the year, the sources noted.


Nokia announcements, June 14, 2012

Nokia’s own diagnosis:

During the second quarter 2012, competitive industry dynamics are negatively affecting the Smart Devices business unit to a somewhat greater extent than previously expected. Furthermore, while visibility remains limited, Nokia expects competitive industry dynamics to continue to negatively impact Devices & Services in the third quarter 2012. Nokia now expects its non-IFRS Devices & Services operating margin in the second quarter 2012 to be below the first quarter 2012 level of negative 3.0%. This compares to the previous outlook of similar to or below the first quarter level of negative 3.0%.

Nokia’s strategic changes:

Nokia plans to:

  • Invest strongly in products and experiences that make Lumia smartphones stand out and available to more consumers;
  • Invest in location-based services as an area of competitive differentiation for Nokia products and extend its location-based platform to new industries; and
  • Improve the competitiveness and profitability of its feature phone business.

Nokia City Lens for Nokia Lumia: Augmented Reality Browser (Beta) [Nokia YouTube channel, May 8, 2012]

Nokia City Lens http://nokia.ly/Im17jr 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 Nokia Betalabs. 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. 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.

In Smart Devices:

Nokia plans to extend its strategy by

  • broadening the price range of Lumia; and
  • continuing to differentiate with:
    – the Windows Phone platform,
    – new materials,
    – new technologies and
    – location-based services, including navigation and visual search applications such as the recently announced Nokia City Lens
  • acquisition of assets from Sweden-based Scalado, which currently has imaging technology on more than 1 billion devices. This acquisition is aimed at strengthening Nokia’s imaging assets.

Scalado’s Vision [ScaladoInc YouTube channel, June 1, 2012]

Fadi Abbas, one of the co-founders of Scalado, talks about Scalado’s vision and what lies ahead in the near future of mobile imaging.

In Mobile Phones:

Nokia aims to

  • further develop its Series 40 and Series 30 devices, and
  • invest in key feature phone technologies like the Nokia Browser, aiming to be the world’s most data efficient mobile browser. Early results of this innovation can be found in Nokia’s latest Asha feature phones which offer a full-touch screen experience at lower prices.

Additional reductions in Devices & Services:

Nokia plans to pursue a range of planned measures including:

  • Reductions within certain research and development projects, resulting in the planned closure of its facilities in Ulm, Germany and Burnaby, Canada;
  • Consolidation of certain manufacturing operations, resulting in the planned closure of its manufacturing facility in Salo, Finland. Research and Development efforts in Salo to continue;
  • Focusing of marketing and sales activities, including prioritizing key markets;
  • Streamlining of IT, corporate and support functions; and
  • Reductions related to non-core assets, including possible divestments.

Nokia plans to reduce up to 10,000 positions globally by the end of 2013.

Taking into account these planned measures the company now targets to reduce its Devices & Services non-IFRS operating expenses to an annualized run rate of approximately EUR 3.0 billion by the end of 2013. This is an update to Nokia’s target to reduce Devices & Services non-IFRS operating expenses by more than EUR 1.0 billion for the full year 2013, compared to the full year 2010 Devices & Services non-IFRS operating expenses of EUR 5.35 billion. This means that in addition to the already achieved annualized run rate saving of approximately EUR 700 million at the end of first quarter 2012, the company targets to implement approximately EUR 1.6 billion of additional cost reductions by the end of 2013.

Joining the Nokia Leadership Team effective July 1, 2012:

  • Juha Putkiranta as executive vice president of operations


In place of Niklas Savander, executive vice president of Markets who led Nokia’s sales, marketing, supply chain, manufacturing operations and information technology teams
Formerly, Putkiranta was senior vice president, supply chain. “Juha has demonstrated exceptionally strong leadership in leading our supply chain operations,” said Stephen Elop. “His breadth of experience at Nokia will help with our focus.”
  • Timo Toikkanen as executive vice president of Mobile Phones
In place of Mary McDowell, executive vice president of Mobile Phones, who is leaving to pursue other opportunities outside of Nokia
Formerly, Toikkanen was vice president, business development, programs and special projects. “Timo is well known as an engaging leader with valuable business acumen and keen insights into delivering customer satisfaction,” said Stephen Elop. “These attributes will be key as we progress through our transformation.”
  • Chris Weber as executive vice president of sales and marketing
In place of:
– Jerri DeVard
, executive vice president and chief marketing officer [joining Nokia just in January 2011] who led Nokia’s marketing and brand management as a member of the Nokia Leadership Team, and who is leaving to pursue other opportunities outside of Nokia
– Niklas Savander, executive vice president of Markets who led Nokia’s sales, marketing, supply chain, manufacturing operations and information technology teams [Note that Savander had sales duties just for the last two months, taking over from the long-term Nokia veteran Colin Giles who decided “to leave the company to be closer to his family”]
Formerly, Weber was senior vice president Markets, Americas. “Chris has made tremendous strides in kick starting our re-entry into the US and his track record of driving results will serve Nokia well,” said Stephen Elop.

In addition to that there were two additional new appointments:

Tuula Rytila as senior vice president and chief marketing officer

In place of Jerri DeVard, executive vice president and chief marketing officer [joining Nokia just in January 2011] who is leaving to pursue other opportunities outside of Nokia. Rytila, who will report to Weber, was formerly senior vice president of portfolio and business management.

Susan Sheehan as senior vice president of communications

Sheehan, who reports to Elop, was formerly vice president of communications.

There were new single word expressions of the executives’ views on the second day of a meeting considering the options, according to Helsingin Sanomat:

Exhausting week for Nokia CEO
Difficult decisions made late Wednesday

  • love – “Love for design and love for future products”: Marko Ahtisaari, Design
  • passion: Henri Tirri, Chief Technology Officer
  • purpose: Michael Halbherr, Location and Commerce
  • consumer: Chris Weber, Sales and Marketing
  • consumer: Tuula Rytilä, Chief Marketing Officer
  • commitment: Jo Harlow, Smartphones
  • result: Timo Toikkanen, Mobile Phones
  • result: Juha Äkräs, Human Resources
  • success: Stephen Elop

Scalado acquisition

Scalado Remove – Capture a clear view [ScaladoInc YouTube channel, Feb 13, 2012]

When capturing photos in a busy area, like a public square or a concert for example, it is often difficult to get a clean shot without unwanted objects entering the frame. Now you can capture the shot anyway, and simply let the camera remove the people for you! Point your camera and take a photo. Afterwards you can remove anyone moving around, or select your friends and remove any strangers. Don’t forget to ‘like’ Scalado on Facebook and to follow us Twitter for the latest updates and news. Facebook: http://www.facebook.com/pages/Scalado/113223242033399 Twitter: http://twitter.com/ScaladoInc

Nokia to acquire developers, technologies and intellectual property for imaging from Scalado [Nokia press release, June 14, 2012]

Acquisition aimed at enhancing imaging experiences for Nokia Lumia devices

Espoo, Finland and Lund, Sweden: Nokia is announcing plans to acquire world-class imaging specialists as well as all technologies and intellectual property from Scalado AB.

“Nokia has been working with Scalado for more than ten years and they’ve contributed to many of our leading imaging applications,” said Jo Harlow, executive vice president, Smart Devices at Nokia. “This transaction would enable us to combine our leadership in camera devices with their expertise in imaging, helping people move beyond taking pictures to capturing moments and emotions and then reliving them in many different ways.”

The Lund site is planned to become a key site for Nokia’s imaging software for smartphones, in addition to Nokia’s existing locations in Espoo and Tampere, Finland.

“This is a great opportunity for many of our people to show their leadership in imaging and to continue to build its future,” said Håkan Persson, chief executive officer of Scalado AB. “Doing this as part of Nokia, already a leader in mobile imaging, will reinforce the strength of the technologies and competences developed at Scalado. We are very excited about this opportunity, which is a natural next step in our longstanding relationship with Nokia.”

The transaction, which is subject to customary closing conditions, is expected to close during the third quarter of 2012. The terms of the transaction are confidential.

Scalado Rewind – The perfect group shot 3 [ScaladoInc YouTube channel, July 15, 2011]

Capture the perfect group shot! When taking a photo of several people at once, it’s almost impossible to get that one ‘perfect shot’ where everyone is smiling and looking at the camera – and where no one is blinking! Not anymore! It’s now actually possible to take the perfect group shot with Scalado’s Rewind. Don’t forget to ‘like Scalado’ on Facebook and to follow us on Twitter for the latest updates and news. Facebook: http://www.facebook.com/pages/Scalado/113223242033399 Twitter: http://twitter.com/ScaladoInc

Nokia to acquire developers, technologies and intellectual property for imaging from Scalado [Sacalado press release, June 14, 2012]

Lund, Sweden: Scalado is announcing plans under which Nokia would acquire world-class imaging specialists as well as all technologies and intellectual property from Scalado

“This is a great opportunity for many of our people to show their leadership in imaging and to continue to build its future,” said Håkan Persson, chief executive officer of Scalado AB. “Doing this as part of Nokia, already a leader in mobile imaging, will reinforce the strength of the technologies and competences developed at Scalado. We are very excited about this opportunity, which is a natural next step in our longstanding relationship with Nokia.”

The Lund site is planned to become a key site for Nokia’s imaging software for smartphones.

Scalado AB will continue to exist. All present customer agreements and obligations will remain with Scalado AB. The main task of Scalado AB will be to continue to work with our customers honoring our delivery and support obligations and fulfill any and all obligations in relation to its existing customers.

“We are very pleased to have signed an agreement with Nokia” said Anders Lidbeck, Chairman of the Board of Scalado AB. “We believe that this not only creates value for Scalado employees and shareholders but also ensures the future development and use of the Scalado heritage and technology”

The transaction, which is subject to customary closing conditions, is expected to close during the third quarter of 2012. The terms of the transaction are confidential.

Home /ABOUT US

Company

A whole new focus on imaging

Scalado is a world leader in the mobile imaging industry, with a long history of developing innovative platform-independent imaging solutions. Based on Scalado’s unique Random Access JPEG and more than 50 patent and patent pending technologies, these innovations are currently being used by the world’s leading global telecom and platform players in over 1 billion mobile devices, a figure that is growing with over 500 million devices each year.

Since the start, the company’s mission has been to help camera and mobile phone manufacturers to significantly improve their imaging solutions in order to deliver an optimal end-user experience. Scalado helps companies shorten their time-to-market and differentiate their products through imaging solutions that offer top of the line advantages in editing, enhancing, viewing and sending images.

Scalado’s technology has gained worldwide recognition by all of the major players in the IT industry. The company already licenses its solutions to the top five tier 1 mobile phone manufacturers, top 10 ISP/Sensor companies, and most leading platform providers. As a result, when someone is using a camera phone, it’s very likely that Scalado’s patented imaging platform is onboard.

Through the years, the company has received several awards for innovation and excellence in export. In 2010, Scalado was bestowed the Hermes Export Award by the Swedish Chamber of Commerce on World Trade Day, and listed as one of the fastest growing companies in EMEA.

Scalado has offices in Sweden (HQ), Korea, China, Taiwan, Singapore and the United States. The company employs around 110 people, most of them working at its Swedish HQ in Lund. Scalado has been doubling its revenues year on year since 2007.

Introducing PhotoBeamer [ScaladoInc YouTube channel, May 29, 2012]

Scalado PhotoBeamer is a new innovative and easy way to show your photos on any screen. Just point your iPhone at any screen displaying http://www.photobeamer.com and you’ll be able to enjoy your photos anywhere with family and friends. It’s a modern era slide projector available anytime, anywhere! Download at App Store: http://itunes.apple.com/us/app/scalado-photobeamer/id524972199?ls=1&mt=8 Scalado PhotoBeamer at Scalado.com: http://www.scalado.com/display/en/Scalado+photobeamer

Home /ABOUT US /History

The first product from Scalado was the imaging web tool Scalado™ ImageZoom™. Today we still work with imaging but have changed our focus to benefit the telecom industry and hand held devices.

2012

  • Scalado™ now included in more than 1 billion mobile devices (over 500 million/year)
  • Scalado™ Remove showcased live at Mobile World Congress in Barcelona
  • Scalado™ will co-host 6Sight, Future of Imaging Conference, in June in New York City

2011

  • Scalado™ now included in more than 900 million camera phones
  • Scalado™ releases Camera & Album application
  • Scalado™ expands into China and Singapore
  • Scalado™ is one of the fastest growing companies in EMEA (Europe, Middle East and Africa) according to Deloitte

2010

  • Scalado™ is awarded with the prestigious prize “Export Hermes”
  • Scalado™ now included in more than 500 million camera phones
  • Scalado™ relocates to new and larger head office
  • Scalado™ employs a new CEO, Håkan Persson
  • Scalado™ changes logotype and graphic profile
  • Scalado™ expands into Japan and Taiwan
  • Scalado™ starts collaboration with Qualcomm Incorporated
  • Scalado™ opens regional office in USA
  • Scalado™ nominated for the Great Export Prize 2010 (Sweden)
  • Scalado is nominated at the “Mobile Gala”  for “Innovative Technology of the Year”

2009

  • Scalado™ shows its financial strength with highly-prized “triple-A” credit rating
  • Scalado™ now included in more than 400 million camera phones
  • Scalado™ featured in the 100 million club (published by Vision Mobile)
  • Scalado™ nominated in GSMA’s Mobile Innovation Grand Prix EMEA Tournament
  • Scalado™ expands into North America
  • Red Herring names Scalado™ as winner in the Europe 100 awards
  • Scalado™ and Kodak join forces to enhance next-generation imaging solutions
  • Scalado™ optimizes new imaging solution for Windows Mobile® 6.5
  • Scalado™ SpeedTags™ technology in Fujitsu Microelectronics’s products

2008

  • Scalado™ launch the Scalado™ PhotoFlow™ application plug-in
  • Scalado™ registers several patents for Scalado™ PhotoFlow™
  • Scalado™ launch Camera Solution including Scalado™ SpeedTags™
  • Scalado™ registers Scalado™ SpeedView™ as registered trademark
  • Scalado™ signs a Scalado™ CAPS™ licensing agreement with Symbian

2007

  • Scalado™ signs major agreement on Scalado™ CAPS™ with Sony Ericsson and Motorola
  • Scalado™ launch Scalado™ SpeedView™ and registers patents for its technology
  • Scalado™ signs agreements with LG and HTC

2006

  • Scalado™ signs a strategic agreement with Teleca Mobile for global sales and customer services
  • Scalado™ launches a new release of its Camera Phone Solution, CAPS™ 3.1
  • Scalado™ signs a global agreement with a Korean Mobile Phone manufacturer licensing Scalado™ CAPS™
  • Scalado™ opens regional office in Korea
  • Scalado™ signs an agreement with a leading Taiwan Mobile Phone manufacturer licensing Scalado™ CAPS™

2005

  • Scalado™ celebrates its 5th Anniversary
  • Scalado™ attracts a new investor: the Danish VC firm, IVS A/S
  • Scalado™ delivers imaging solutions to several tier1 manufacturers of camera phones
  • Anders Cedervall becomes chairman of the board of directors
  • Scalado™ wins the Series 60 Challenge Awards with PhotoTwister™

2004

  • Scalado™ licenses mobile imaging technology to Sony Ericsson
  • Launch of imaging application Scalado™ PhotoTwister™
  • Scalado™ attracts new investors
  • Scalado™ gains access to advanced Nokia technical and marketing support
  • Scalado™ changes strategy, and focuses only on imaging solutions for the telecom industry
  • Scalado™ launches Scalado™ CAPS™: an enhanced imaging software platform for mobile phones

2003

  • Launch of Scalado™ ImageZoom™ Generator
  • Scalado™ signs OEM agreement with Axis Communications
  • Scalado™ signs of license agreement with CNN.com
  • Scalado™ signs of exclusive distribution agreement with Macromedia for ImagePilot™
  • Launch of first camera phone application, AutoRama™
  • Scalado™ enters partnership with Symbian
  • Scalado™ signs of license agreement with Sony Ericsson
  • Awarded Prize for Scalado ImageZoom™ by the European IST
    Prize evaluation group

2002

  • Launch of ImageZoom™ 1.0
  • Registration of the Scalado™ ImageZoom™ patent

2001

  • Development of the web tool Scalado™ ImageZoom™

2000

  • Scalado™ is founded by Fadi Abbas, Maziar Jahanshahi, Sami Niemi and Pierre Elzouki

Scalado SpeedTags Camera Solution Latest Version [scal99 YouTube channel, May 29, 2009]

Scalados SpeedTags Camera Solution enables photographers to instantly capture multi-megapixel images without any shutter lag, freezing the moment of capture. Users can zoom into the resulting JPEG images to review the details of the image without any delay. This gives greater freedom to photographers and enhances a whole variety of camera phone functions, including burst capturing and viewing.

Home /ABOUT US /Innovations

Over the years Scalado has developed a wide range of imaging technology solutions, all with the aim of making imaging fun, fast, and efficient. A selection of Scalado’s innovative technology is presented below.

2012–Scalado Remove

Scalado Remove solves common photographic problems with unwanted objects in captured images, such as people getting in the way of our camera shot. Remove detects and selects the unwanted object and simply removes them automatically or by touching the selections on the screen after capturing the image.

2011–Scalado Camera Framework

Scalado has continued its research around effective image capturing, and has lately released the Scalado Camera Framework, which makes it both effective and simple to achieve the same performance as SpeedTags on any platform.

2010–Rewind

This technology deals with a problem that photographers have been struggling with since the first group picture was taken: to get everyone to look their best at the same time. With Rewind, users can take the best facial expressions from several shots and combine them in the same picture.

2010–TimeWarp

TimeWarp takes a bust of images, where the capturing starts even before the user presses the button! The user can then decide which picture to use, by browsing back and forth in time.

2008–1st zero shutter lag capturing device

Zero Shutter Lag is the only software-based innovation that enables the user to capture photos instantly. Zero Shutter Lag is the first of many innovations based on the SpeedTags-technology. Its follow-on products include Rewind, Shot-to-shot, Burst, HDR and several others.

2007–SpeedTags: Revolutionizing capturing

SpeedTags is one of the innovations that really make a difference in the mobile camera industry. Its introduction changed the way images are captured on a mobile device, and greatly enhanced the user experience and quality of a digital imaging. The top 10 world players in the Sensor/ISP industries already integrate SpeedTags in their devices, and the technology is now available in 450 million new sensors and SOC’s (System-on-a chip) every year.

2005–The 1st super-fast album viewing for mobile phones

Image viewing technology has never been easy, but in 2005 Scalado introduced a technology that made it faster and easier to view, search and organize images. The market was impressed and inclined to ask the question that Scalado is frequently asked – how can you do this on a mobile device? This early technology has been further developed and more advanced solutions have been released through the years.

2004–The 1st advanced mobile editor

This product is unique; not only because it was the first advanced image editor on a mobile phone, but also because it was the first time that a mobile handset manufacturer used imaging in its marketing campaigns. During the campaign for N90, Nokia marketed the phone and the image editor using the sentence: “Editing on-the-fly? I could not believe it either”.

2004–CAPS™–Making imaging faster and more efficient

CAPS™ is Scalado’s flagship product and with its unique features, it has made imaging in mobile devices faster and more efficient since its launch in 2004. CAPS™ is a software development kit that enables developers to produce imaging solutions that are extremely CPU and memory efficient and that drastically decrease processing time when managing multi-megapixel images.

2003–The 1st panoramic images on a phone

Scalado created the first imaging technology in the world for capturing and viewing panoramic images on a mobile phone. It is based on the random access technology and Scalado managed to integrate this tool in Sony Ericsson’s T610.

2002–Random Access JPEG

Scalado has several patents for random access technology. The best known is Random Access JPEG (RAJPEG), which is a very effective way to process images. RAJPEG saves a huge amount of working memory and increases performance significantly. It enables an astonishing user experience on any device, independent of the existing memory and CPU performance.

2000–ImageZoom

This was Scalado’s first innovation. Regardless of the size of the image, ImageZoom makes it possible for the user to access – using any internet connection – and zoom into a specific part (or parts) of a megapixel image, without having to download the entire image.


Asha Touch family of mobile devices

Nokia Asha 311: fun, fast and always connected [Nokia YouTube chnnel, June 5, 2012]

Explore with a swipe with the Nokia Asha 311 http://nokia.ly/JKxsQq Featuring a scratch-resistant 3-inch capacitive touch-screen and 1GHz processor to power your apps and games. Our cloud-accelerated Nokia Browser makes surfing the internet up to 3x faster and up to 85% cheaper than other phones. An exclusive gift of 40 free games from EA will keep you entertained and there are many more apps and games to download from Nokia Store. With social networks and Nokia Maps preloaded and ready straight out of the box, you’ll quickly be connected with your friends.

Nokia accelerates the journey to mobile internet with the introduction of Asha Touch device range [Nokia press release, June 6, 2012] [3″ WQVGA, i.e. 240×400]

Fun, colorful range of touch screen phones will bring fast mobile web browsing, social networks and gaming to millions

Bangkok, Thailand – Nokia has today taken another step towards connecting the next billion consumers by unveiling the Asha Touch family of mobile devices, taking the full touch experience to new price points. The three new phone models – the Nokia Asha 305, Nokia Asha 306 and Nokia Asha 311– further expand the successful Asha family, first introduced in October 2011. Today, there are 10 Asha devices available in more than 130 markets, providing young, social consumers with a choice of phones to match their own lifestyle.

These latest phones have been designed to provide an incredibly rich, smartphone-like experience to consumers who want to be set free from excessive data consumption costs and short battery life. The Nokia Asha 305, Asha 306 and Asha 311offer a new, fully re-designed touch user interface, combining the proven ease-of-use from Nokia’s heritage with digital design innovations specifically fit for the purpose.

The beautifully crafted Nokia Asha 311 is a fast and fluid 3.5G capacitive touchscreen [3″ WQVGA, i.e. 240×400] device, powered by a 1GHz processor to provide a great internet experience. The bright and edgy Nokia Asha 305 is a fun and affordable phone, featuring the exclusive Easy Swap dual SIM. Its sister, the Nokia Asha 306, is a single SIM model, and becomes Nokia’s most affordable Wi-Fi handset to date.

“By introducing the Asha Touch phones to the market, we’re accelerating our commitment to connect the next billion consumers,” said Mary T. McDowell, Nokia’s executive vice president for Mobile Phones. “These phones deliver on what young, urban people value most — a great-looking device; and an intuitive and affordable experience for connecting to the internet, to their friends, and to a world of entertainment, web apps and content.”

Great for fast, affordable mobile internet and gaming entertainment

The new devices take full advantage of the Nokia Browser 2.0, a major recent updatewhich uses Nokia’s cloud technology to reduce data consumption by up to 90%, meaning that consumers can enjoy faster and cheaper internet access. Web sites load up to three times faster in comparison to devices without cloud-accelerated browsing, making it simple for users to find and select from more than 10,000 web apps available for download. They deliver a richer and more interactive consumer experience whilst using less data than a stand-alone internet connected app.

Consumers can easily stay connected with friends and family at the touch of a button as well as share files and links across their social networks. Furthermore, the Nokia Browser’s Download Manager feature helps consumers to manage external content easily, saving music, video or pictures on a memory card, while surfing the internet.

The Asha family is also getting positive support from developers and consumers. Nokia Store has just broken the 5 billion downloads landmark. From January to April, 42% of all content downloaded from Nokia Store was delivered to Asha and other Nokia devices based on the Java ecosystem. Just one year ago, that number was 10%. Also, there are 410 Nokia developers with apps which have achieved more than 1 million downloads. India Games and Pico Brothers just passed 100 million.

As well as providing a great, social online experience, the Nokia Asha 305, Asha 306 and Asha 311 have been created with entertainment in mind. All users will receive an exclusive gift of 40 EA games to download for free* and keep forever. These games range across action, arcade and sports, and include titles such as Tetris®, Bejeweled®, Need for Speed(TM) The Run and EA SPORTS(TM) FIFA 12. The Nokia Asha 311also comes with 15 levels of Angry Birds pre-loaded onto the phone, perfect for making the most of the touchscreen and 1GHz processor.

“Nokia is taking another interesting step forward in connecting consumers to the Internet, seeking to improve their experience through a new touch user-interface that is allowing the company to compete in new mass-market price bands. The mass-market is a competitive segment, but we believe Nokia’s upgraded Asha portfolio has included an attractive package that can enable consumers to have lower running costs, taking advantage of things like its compressed browser and a long-life battery”, says Neil Mawston, Executive Director of devices research at Strategy Analytics. “It is also interesting to see how Nokia is promoting its Asha strategy with global launches taking place in important high-growth markets such as Asia. Nokia resonates well there and the response from local consumers is likely to be positive”.

Product details

The Nokia Asha 311 is a colourful, compact touch screen device that comes Nokia Asha 311with all the features you’d expect for a fun and easy mobile experience. It boasts a bright and colourful, scratch resistant capacitive glass screen with polarization filters ensuring users get the best experience from the unique and visually entertaining user interface. The Nokia Asha 311also features a 3.2MP camera and pre-installed Nokia Maps, in addition to the 15 level pre-bundled version of Angry Birds.

The pre-loaded social client makes accessing Facebook, Twitter and many other global social networks simple while Nokia Browser makes using mobile internet fast and affordable. It also includes the most popular messaging services. “WhatsApp has a clear vision of creating a reliable and easy to use cross-platform messaging application that enables people to stay in touch with their family and friends from all around the world,” said, Brian Acton, Co-Founder of WhatsApp Inc. “By partnering with Nokia whose worldwide reach in mobile is well established, WhatsApp becoming available for the Asha Touch devices will enable us to further realize our core mission”.

Nokia Asha 305The Nokia Asha 305 is a fun and entertaining Easy Swap dual SIM phone, helping users make the most of their phone while retaining control of their costs. The phone features a bright and colorful 3″ WQVGA resistivetouch screen along with Bluetooth and Dual Band connectivity. Forty EA games are available for download with every phone as well as a 2MP camera, Nokia Maps and the revolutionary Nokia Browser which helps significantly lower data costs.

The Nokia Asha 306 is the sister device to the Nokia Asha 305. Along with all the great features that come with its sister, such as bright and colorful, 3″ WQVGA resistive touch screen and 40 EA games for download – a Nokia exclusive offer, the Nokia Asha 306 also provides WLAN, enabling users to stay connected while on the move. It also supports video streamingthrough both GPRS and WLAN, meaning this handset truly is a fun way to stay in touch.

The estimated retail price for Nokia Asha 305 is EUR 63 [US$ 79] and it’s expected to start shipping in the second quarter of 2012. The estimated retail price for Nokia Asha 306 is EUR 68 [US$ 85]. The Nokia Asha 311 has an estimated retail price of EUR 92 [US$ 115]. Both devices are expected to start shipping in the third quarter of 2012. Above mentioned prices exclude taxes and subsidies.

The new devices images are available at Nokia.com/press.

*Data costs may apply.

Nokia Asha 306: discover a fun way to stay in touch [Nokia YouTube chnnel, June 5, 2012]

Nokia Asha 306 http://nokia.ly/JKxJCU features our cloud-accelerated Nokia Browser, making surfing the internet up to 3x faster and up to 85% cheaper than other phones. The 3-inch touch-screen brings your photos and videos to life. Wi-Fi connectivity gives you a choice of how to get online. An exclusive gift of 40 free games from EA will keep you entertained and there are lots more apps and games to download from Nokia Store. With social networks and Nokia Maps preloaded and ready straight out of the box, you’ll quickly be connected with your friends.

Have a Touch: Nokia’s new Asha phones [Nokia Conversations blog, June 6, 2012]

A great new touch screen experience, fast web browsing, games and social networks lie at the heart of three new mobiles phones being launched today by Nokia.

The Nokia Asha 305, Nokia Asha 306 and Nokia Asha 311are a colourful range of mobile phones designed for young, urban and social people to get online faster, better and cheaper.

The devices will run on Asha Touch, which is a new, fun and playful touch screen interface that builds on Nokia’s swipe heritage.

Asha Touch will provide aspirational young people a first ‘smartphone-like’ experience, for example, through the notification bar and the 10,000 web applications that are available.  This is on top of more than 25,000 regular apps already in the Nokia Store.

Nokia Browser 2.0

All the phones also feature a major update of the Nokia Browser, which uses cloud technology to reduce data usage by up to 90%. The benefits are numerous: web pages will load faster, battery life is improved and mobile Internet access becomes much more affordable.

Keeping in touch with friends on social networks is also central to the three new members of Nokia’s Asha family. They all come pre-loaded with applications for Facebook and Twitter, and there is also email and instant messaging.

People who want great games will not be disappointed either. Each phone will come with a gift of 40 free games from EA to download and keep forever. The games will include Tetris®, Bejeweled®, Need for Speed The Run and EA SPORTSFIFA 12.

So, now we know that the Nokia Asha 305, Nokia Asha 306 andNokia Asha 311come with great features and dozens of free games.

What are the differences between the phones themselves?

The Nokia Asha 305 and the Nokia Asha 306:

  • 3.0” WQVGA resistive touch screen
  • 2 MP camera
  • Music player and FM radio
  • Built-in speaker
  • Plug and Play, easy PC connection and file transfer
  • GPRS/EDGE connectivity
  • Nokia Mapsand Nokia Life (in selected markets)
  • Colours: Silver White, Red, Mid Blue and Dark Grey (varies by market)

In addition, the Nokia Asha 305will benefit from Nokia’s Easy Swap Dual SIM technology, which allows SIM cards to be swapped without opening up or turning the phone off. This is useful for storing different numbers on your SIMs and for taking advantage of different operator rates.

The unique feature of the Nokia Asha 306is its Wi-Fi capability. Indeed, it is set to be Nokia’s most affordable Wi-Fi handset device.

The Nokia Asha 311

  • 3.0” scratch resistant, capacitive glass screen
  • Polarised display filters for better usability in direct sunlight
  • WLAN
  • 3.2 MP camera
  • 1GHz processor
  • Music Player, FM Radio and Internet Radio
  • Plug and Play, easy PC connection and file transfer
  • HSPA connectivity
  • Nokia Mapsand Nokia Life (in selected markets)
  • Colours: Dark Grey, Rose Red, Blue, Brown and Sand White (colours will vary by market)

The Nokia Asha 311 … is a 3.5G mobile phone powered by 1GHz processor to make for a speedy online and gaming experience. As well as the 40 free EA games, the Nokia Asha 311 will also include 15 preloaded levels of Angry Birdsfor you to enjoy.

Taken together, these new mobile phones, the Nokia Asha 305,Nokia Asha 306 and the Nokia Asha 311are another big step in the quest to connect the next billion.

For approximate costs, before local taxes or operator subsidies:

Nokia Asha 305 – 63 euros / 85 USD, available in Q2 2012
Nokia Asha 306 – 68 euros / 93 USD, available in Q3 2012
Nokia Asha 311 – 92 euros / 121 USD, available in Q3 2012

Nokia Asha 305 will be available in the second quarter of 2012. Nokia Asha 306 and Nokia Asha 311 are arriving in the third quarter of 2012.

Infographic: How Nokia Browser saves you time and money [Nokia Conversations blog, June 7, 2012]

Searching for content on the Internet from your mobile phone is now faster and cheaper, with the Nokia Browser.

It uses Nokia’s unique compression technology, which means the pages that you visit are reduced by up to 90%, making surfing the Web faster, and more importantly, cheaper.

Check out our Nokia Browser infographic for more reasons as to why you should all be using Nokia Browser.

Initially, Nokia Browser was created to help the next billion internet users connect for the first time to the Netwithout compromises.

While it’s still vitally important for people in emerging markets to have a great, affordable browsing experience, Nokia Browser is also great for everybody else, too, proving to be up to three times faster then other browsers.

As you can see by the infographic, this means that  when you use your Nokia Browser, you would be saving a day every year. This has to be good news for everyone.

To save yourself some money, and browsing time, be sure to check out the latest Nokia Browser 2.0 which is already preloaded on your Asha phones as the recently launched Nokia Asha 305, Asha 306 and Asha 311. Nokia Browser is available in 87 languages and in 250 countries.

If you have a Series 40 phone you can update to the latest version of the Browser. Check it out!

Nokia Browser 2.0 update available now [Nokia Conversations blog, April 23, 2012]

Getting online fast, and affordably, is crucial for Internet users everywhere. Now that experience is about to get even faster and easier with an update for all existing Nokia Browser users, covering phones across the Nokia Asha range and Series 40 devices.

We know Nokia Browser is often the first, and main, way of accessing the Internet for millions of you in dynamic fast-growing parts of the world. Since the Browser launched last yearyou’ve been able to access all the information you need, without the headache of worrying about your data bill.

Nokia Browser condenses data by up to 90%. That makes loading web sites faster, and cheaper – in fact, our cloud-accelerated browsing makes loading web sites up to three times faster. If you’re on a pay-per-use contract you’ll enjoy cheaper browsing, or if you’re on an operator data plan you’ll be able to do more web surfing without exceeding your monthly usage limits.

Download Manager

As well as needing less data to show the same web pages you also want to do different things at the time. We know you are busy. Using the new Download Manager you can save music, video or pictures on a memory card, while you’re surfing the Internet.

The update also includes a host of new features to make searching, discovering and sharing content even easier

Russia India

Better searching and sharing

The Browser now has a new, more intuitive, user interface with one-click access to top local sites from the start page. A new feature enables multitasking while browsing, meaning that you can switch between text messages and the web.

Nokia Browser 2.0 makes it even easier to share content across social media: You can post any page URL via Facebook or Twitter from within the browser, including a comment directly from the options menu. If you’re in China, you’ll be able to do the same for Sina Weibo and RenRen.

The Browser makes it simple to find, install and use Web Apps, which provide you with a more desktop-like internet experience. Launched in mid-2011, the Nokia Browser is the first browser of its kind to support Web Apps, and now boasts a catalogue of more than 10,000 apps. Nokia Series 40 users have downloaded more than 35 million Web Apps in total, with the most-downloaded app – ‘Free Wi-Fi Locator’ – having been downloaded more than 2 million times alone.

The update supports all forms of Nokia Series 40: Touch, QWERTY and Non-Touch, including the Nokia Asha range, as well as popular devices such as the Nokia C3-00, Nokia C2-03 and Nokia X3-02. The update will be pre-loaded on some current and all future Nokia Series 40 devices, while for existing users the update arrives as a free, optional over-the-air download. New users can download it from the Nokia Store.

image credit: webwizzard

Nokia makes internet access faster and easier with new browser for Series 40 devices [Nokia press release, April 23, 2012]

– Nokia Browser 2.0 delivers enhanced speeds and a new user interface for a faster, better way to explore the web
– Powered by cloud-based servers, it delivers accelerated browsing and reduces data consumption by up to 90%, without compromising the internet experience
– Web apps from the expanding catalog are easier than ever to explore and install right in the browser

Espoo, Finland – Nokia has today announced the availability of Nokia Browser 2.0, a major update dedicated to Nokia Series 40 devices. The new version reduces data consumption by up to 90%, meaning that consumers can enjoy faster and cheaper internet access. Web sites load up to three times fasterin comparison to devices without cloud-accelerated browsing and consumers will also benefit from a number of other enhanced capabilities.

From the first look, consumers are easily able to discover new web content and enjoy one-click access to top, local sites via the Nokia Browser’s inviting and intuitive start page. We have optimized the browser to enable users to easily stay connected with friends and family at the touch of a button as well as to share files and links across social networks. The new and improved Download Manager helps consumers to manage external content easily, saving music, video or pictures on a memory card, while surfing the internet.

Free Wi-Fi Locator – Smartphone-like web app on an Asha device – consumer don’t have to compromise
An app that showcases many features of the platform is this Movie Review app.

The browser includes a revamped, modern user experience that makes it simple to find, install and use interesting web apps that offer a richer, more desktop-like internet experience. Launched in mid-2011, the Nokia Browser is the first browser of its kind to support web apps, and now boasts a catalogue of more than 10,000 of the latest apps. Several publishers have experienced over a million downloads in a matter of months, demonstrating strong consumer demand.

With this update, developers will find new monetization capabilities, more extensive user interface options for their web apps and productivity improvements for Nokia Web Tools so they can continue delivering engaging, connected experiences to the ‘Next Billion’ consumers.

The update supports all forms of Series 40: Touch, QWERTY and Non-Touch, including the Nokia Asha range, as well as popular devices such as the Nokia C3-00, Nokia C2-03 and Nokia X3-02. The update will be pre-loaded on some current and all future Nokia Series 40 devices, while for existing users the update arrives as a free, optional over-the-air download. New users can download it from the Nokia Store. The browser is available in 87 languages in over 200 countries and territories.

Nokia Browser 2.0 makes use of cloud-based servers which adapt standard web pages so that they perform better on Nokia Series 40 devices. Since web pages are compressed and cached in the cloud, end users can access web sites in a manner which is faster and requires significantly less data to be sent over their mobile network. For pay-per-use contracts this will result in more cost-effective browsing, while users on an operator data plan will be able to do more web surfing without exceeding their monthly usage limits.

“With our new version, we’ve created a newer, faster, better browsing experience. As many consumers around the world will experience the internet for the first time through a mobile phone, this is a great step towards our goal to connect the ‘Next Billion’,” explains Dieter May, senior vice president of mobile phones services, Nokia.

New in the Nokia Browser 2.0

  1. Faster browsing with speed improvements throughout the experience.
  2. Easier access to new and popular Web apps to enable a richer and more engaging internet experience.
  3. New, intuitive user interface offers one click access to search, most popular content and most valuable features.
  4. Media handling enhancements provide an easier way to enjoy video, audio and images. Users can download in background mode while continuing to browse the web or queue downloads for later when performance or rates are better.  Downloads can be saved to memory cards or phone memory for later offline viewing or listening.
  5. One-click share on Social Networks by remembering Facebook and/or Twitter login to easily share any page URL and comments from your browser.

Developers can find out more about how the updated browser will enable them to build rich standards-based web apps at: http://www.developer.nokia.com/Develop/Series_40/Series_40_web_apps/.
Consumers can download the Nokia Browser 2.0 at: http://store.nokia.com/content/51924

Giving up the total OEM reliance strategy: the Microsoft Surface tablet

Follow ups:
Microsoft Surface: its premium quality/price vs. even iPad3 [Oct 26, 2012]
Microsoft Surface: First media reflections after the New-York press launch [Oct 26, 2012]

Updates #2: As the result of this sudden turn of direction 9 months ago, the previously closely cooperating with Microsoft OEMs are now (March’13) working with the company in the most cautious way:

Brand vendors cautious about Microsoft when it comes to hardware design [DIGITIMES, March 25, 2013]

Notebook brand vendors have turned cautious about revealing their new products’ industrial designs for next-generation Windows as they are concerned that Microsoft may use their designs for the benefit of its new Surface products, according to sources from the upstream supply chain.

The sources noted that the brand vendors have already lost their trust in Microsoft and the software giant’s strategy of pushing Surface tablets is starting to impact itself.

Although Microsoft only had sales of about 1.5 million Surface tablets so far, the company continues to expand into the retail channel with its branded products and has even established an online store for ordering the devices.

To avoid from design leakage, many brand vendors have hidden their important designs and will only showcase the prototype of the new mobile devices during Computex 2013 to minimize the risk.

China market: Microsoft to launch Surface Pro, say Taiwan makers [DIGITIMES, March 29, 2013]

Microsoft, following the launch of the10.6-inch Surface RT in the China market, will launch the 10.6-inch Windows 8 Surface Pro there on April 2 at a retail price of CNY6,500 (US$1,045) for the 64GB version and CNY7,300 for 128GB, according to sources with Taiwan’s supply chain.

Surface RT is priced at CNY3,688-4,488 plus CNY800 for a touch cover, the source indicated.

According to previous estimation by market observers, Surface RT and Surface Pro shipments to the global market would have reached one million units and 500,000 units respectively so far since their launch, but the actual volume for the two models so far is estimated at about one million units in total, the sources said.

Viewing that Microsoft has not placed additional orders for Surface RT, an estimated one million units of Surface RT remain in the inventory, the sources indicated.

Microsoft has talked with partners about developing second-generation Surface models, but those partners have generally been conservative, the sources noted, adding that Microsoft is inviting notebook and chip vendors to co-develop tablets based on Windows-ARM platform but those vendors have been reluctant.

Updates #1:

Microsoft Surface : Assembly in China [NIDA ISM YouTube channel, June 23, 2012]

Annual Report for the Fiscal Year Ended June 30, 2012 [Microsoft Corporation, July 19, 2012]

ITEM 1A. RISK FACTORS [p. 14]… our Surface devices will compete with products made by our OEM partners, which may affect their commitment to our platform. …

Microsoft’s radical new business plan is hidden in plain sight [ on ZDNet, July 30, 2012]

Microsoft is reimagining its entire business model, and they’ve laid out the details for anyone to inspect. You just have to read between the boilerplate sections in the company’s most recent 10-K.

In the Sinofsky regime, Microsoft isn’t interested in hobbies or side projects. The company’s motto is “Go big or go home.” Earn a billion dollars. Get a billion users. Don’t think small.

I expect a massive marketing push behind Surface, and I would be shocked if we don’t see more PC hardware from Microsoft in the next 12 months.

Deal with it, OEMs.

Microsoft plans to pick up the pace. Dramatically.

Microsoft has a reputation for being too slow to respond. This year’s 10-K contains a new section that suggests that’s all about to change:

Many of the areas in which we compete evolve rapidly with changing and disruptive technologies, shifting user needs, and frequent introductions of new products and services. Our ability to remain competitive depends on our success in making innovative products that appeal to businesses and consumers. [emphasis added]

Microsoft unveils Windows 8 OEM licensing charges [DIGITIMES, July 11, 2012]

Microsoft has released licensing rates for OEM Windows 8, including US$60-80 for Windows 8, US$80-100 for Windows 8 Pro (with Office) and US$50-65 for Windows RT (with Office), according to Taiwan-based notebook supply chain makers.

Microsoft also confirmed the launch schedule of Windows 8 at the end of October with the RTM version of Windows 8 to be released in the first week of August for testing.

Sources from notebook players pointed out that the supply chain is placing high hopes on Windows 8 and expect the operating system to help resurrect consumer demand for traditional notebooks; however, due to remaining uncertainties, most players are still taking a conservative attitude about the launch.

Sources also noted that Windows 8 is unlikely to help significantly boost PC demand before 2013 since the new operating system will increase hardware costs due to some components needing to feature additional functions such as touchscreens to allow the operating system to perform fully, while the addition of the operating system’s licensing costs, the increasing expenses are expected to boost Windows 8-based products’ end prices to a rather unfriendly level.

However, as the notebook supply chain will gradually shift their production to touchscreen models with costs to start to see drops, the sources expect demand for Windows 8-based products will see an obvious increase starting mid-second quarter 2013.

Steve Ballmer, Jon Roskill, Kurt DelBene, and Tami Reller: Worldwide Partner Conference 2012 Day 1 Keynote [Microsoft, July 9, 2012]

Steve Ballmer: …

… there’s over 1.3 billion Windows systems on the planet. We’ve sold over 630 million Windows 7 licenses. … In the next 12 months, most forecasts would be for 375 million — 375 million new Windows PCs to be sold. That’s bigger than any phone or any other single device ecosystem. It is a stunning number. And all of those represent new opportunities as they move to Windows 8.  …

But Surface is just a design point. It will have a distinct place in what’s a broad Windows ecosystem. And the importance of the thousands of partners that we have that design and produce Windows computers will not diminish. We have a mutual goal with our OEM partners to bring a diversity of solutions, Windows PCs, phones, tablets, servers, to market. And what we seek to have is a spectrum of stunning devices, stunning Windows devices. So, every consumer, every business customer can say, “I have the perfect PC for me.”

And we’re excited about the work from our OEMs. We may sell a few million, I don’t know how many, of the 375 million, but we need partners to have that diversity of devices. We’re excited about the work our OEM partners are doing on Windows 8, and we’d really like to show more of that today to you and everybody collected here, Rich.  …

Tami Reller, Chief Financial Officer and Chief Marketing Officer, Windows and Windows Live Division: …

Today, as we sit here, more than 50 percent of enterprise desktops are running Windows 7. …

Windows 8 is on track to RTM, or release to manufacturing, the first week of August. (Applause.) And Windows 8 will reach general availability at the end of October. (Applause.)

General availability means that new Windows 8 PCs will be available to buy and upgrades will also be available starting late October. …

Microsoft OEM head change related to Surface, say Taiwan makers [DIGITIMES, July 4, 2012]

Microsoft has announced the replacement of Steven Guggenheimer with Nick Parker, originally vice president of OEM Sales and Marketing, for the position of corporate vice president for OEM Division. The personnel shuffle is related to Microsoft’s plans to launch Surface tablet PCs, representing Microsoft’s long-term business model of stepping into hardware, Taiwan-based supply chain makers have guessed.

The personnel change has caused worries among Taiwan-based PC vendors and ODMs, because it signals that Microsoft’s launch of Surface is not a short-term promotion for Windows 8 but marks a new “software + hardware” business model which is expected to bring troubles for hardware partners, the sources analyzed.

As Microsoft will step into the hardware business, it is naturally no longer concerned about the long-term close relations established by Guggenheimer with hardware partners and therefore has decided to change his position, the sources claimed.

Microsoft Surface chassis suffers low yields [DIGITIMES, July 9, 2012]

Microsoft reportedly planned to adopt unibody magnesium-aluminum chassis for its Surface tablet PCs originally, but affected by chassis makers’ limited capacity, the company has instead turned to adopt a magnesium chassis and use MegVapor technology for surface treatment to allow the device to feature a similar exterior to traditional metal chassis; however, due to the method having a rather low yield rate, is has greatly affected Microsoft in trying to mass produce its new tablet PCs, according to sources from the upstream supply chain.

Microsoft has not confirmed the rumors.

The sources pointed out that before Microsoft launched Surface, the company has inquired at several metal chassis makers about their available capacity and revealed to these makers that its orders for Surface tablet PCs will go as high as five million units before the end of 2012; however, the chassis makers were forced to give up because of lack of capacity.

Although Microsoft’s current chassis design for Surface allows the device to feature a similar exterior and sturdiness as traditional magnesium-aluminum, while having several color choices, the drawback of the design is that the device will be heavier.

The sources also pointed out that the chassis is supplied by a China-based supplier, but since the company is a second-tier maker, its low yield rates are causing Microsoft to pay a lot of attention to the supplier’s manufacturing process hoping for improvements.

Samsung Said To Plan Windows RT Tablet For October Debut [Bloomberg, July 7, 2012]

… The decision to support Windows RT follows Samsung’s earlier announcement that it will back another version of Windows. … Samsung’s Windows RT tablet will feature Qualcomm Inc. (QCOM)’s Snapdragon processor …

Apple led the tablet market at the end of the first quarter, with 11.8 million units shipped, or a 58 percent share, according researcher IHS ISuppli Inc. Samsung was second, with 11 percent, followed by Amazon.com Inc., which had 5.8 percent. …

HP, Dell to launch 10.1-inch Windows RT tablet PCs in 4Q12 [DIGITIMES, July 6, 2012]

Hewlett-Packard (HP) and Dell will launch 10.1-inch Windows RT tablet PCs equipped with processors developed by Texas Instruments and Qualcomm respectively in the fourth quarter of 2012, according to supply chain makers.

In addition to the two US-based brand vendors, Lenovo, Toshiba and Asustek Computer are all preparing to release Windows RT-based tablet PCs.

Meanwhile, although Acer is preparing to release Windows 8-based tablet PCs, the company currently has no plans to launch Windows RT-based models in 2012, while Sony and Samsung Electronics are turning conservative about developing Windows RT-based tablet PCs, according to the two firms’ current component supply status.

The sources pointed out that both Windows 8- and Windows RT-based tablet PCs are expected to be priced starting from US$599 and could go as high as US$1,000, while the machines’ major competition will be Apple; however, the sources hope the tablet PC competition will no longer revolve around price and instead attract demand from enterprise users and consumers that are used to the Windows operating system and its strong software compatibility.

End of updates

Surface by Microsoft [surface YouTube channel, June 19, 2012]

[Microsoft:] A tablet that’s a unique expression of entertainment and creativity. A tablet that works and plays the way you want. A new type of computing. Surface.

#1 excerpt:
Microsoft Announces Surface: New Family of PCs for Windows [Microsoft press release, June 18, 2012]

Two models of Surface will be available: one running an ARM processor featuring Windows RT, and one with a third-generation Intel Core processor featuring Windows 8 Pro. From the fast and fluid interface, to the ease of connecting you to the people, information and apps that users care about most, Surface will be a premium way to experience all that Windows has to offer. Surface for Windows RT will release with the general availability of Windows 8, and the Windows 8 Pro model will be available about 90 days later. Both will be sold in the Microsoft Store locations in the U.S. and available through select online Microsoft Stores.

Contributing to an Expanded Ecosystem

One of the strengths of Windows is its extensive ecosystem of software and hardware partners, delivering selection and choice that makes a customer’s Windows experience uniquely their own. This continues with Surface. Microsoft is delivering a unique contribution to an already strong and growing ecosystemof functional and stylish devices delivered by original equipment manufacturers (OEMs) to bring the experience of Windows to consumers and businesses around the globe.

Suggested retail pricing will be announced closer to availability and is expected to be competitive with a comparable ARM tablet or Intel Ultrabook-class PC. OEMs will have cost and feature parity on Windows 8 and Windows RT.

Microsoft’s  unique contribution to an already strong and growing ecosystem is well demonstrated by the following images provided by Microsoft (the accompanying text was also provided by Microsoft):

Conceived, designed and engineered entirely by Microsoft employees, and building on the company’s 30-year history manufacturing hardware, Surface is designed to seamlessly transition between consumption and creation, without compromise.Surface: A New Family of PCs for Windows
Surface features a built-in kickstand that lets you transition Surface from active use to passive consumption.Surface: Integrated Kickstand
The 3 mm Touch Cover represents a step forward in human-computer interface. Using a unique pressure-sensitive technology, the Touch Cover senses keystrokes as gestures, enabling you to touch type significantly faster than with an on-screen keyboard. It will be available in a selection of vibrant colors.

Surface: Touch Cover

#2 excerpt:
Microsoft Announces Surface: New Family of PCs for Windows [Microsoft press release, June 18, 2012] (data higlights are mine to denote the essential differences)

  Surface for Windows RT Surface for Windows 8 Pro
OS: Windows RT Windows 8 Pro
Light(1): 676 g 903 g
Thin(2): 9.3 mm 13.5 mm
Clear: 10.6” ClearType HD Display 10.6” ClearType Full HD Display
Energized: 31.5 W-h 42 W-h
Connected: microSD,USB 2.0, Micro HD Video, 2×2 MIMO antennae microSDXC,USB 3.0, Mini DisplayPort Video, 2×2 MIMO antennae
Productive: Office ‘15’ Apps, Touch Cover, Type Cover Touch Cover, Type Cover, Pen with Palm Block
Practical: VaporMg Case & Stand VaporMg Case & Stand
Configurable: 32 GB, 64 GB 64 GB, 128 GB

(1), (2). Actual size and weight of the device may vary due to configuration and manufacturing process.

The product introduction/overview part of the event keynote:

Steven Sinofsky 
[President, Windows and Windows Live Division]
Today when you have your tablet, you want to be entertained, you have to hold it. You’re always sitting in an awkward position or perhaps you have to choose from a seemingly endless variety of add on stands and cases that solve a relatively simple problem but by adding weight, adding fitness.
What if I just want to watch movie or listen to music and do something else. We think that this should be an integral part of the design. We think that a stand should be integral. So we built a stand into the device.
This stand is made of the same VaporMg as the rest of the case. And it’s completely integrated into the device. The hinge design is like that of the finest luxury car and when not in use it just fades away. No extra weight, no extra thickness, no separate add on. It’s integrated just like the software and the hardware integrated into Surface.
And then once you have this kickstand you can sit back and enjoy a truly hands free experience. You could go and just put the Surface on a table, lay back and watch a movie. And that’s really what entertainment should be about with the Surface. But you know Surface is designed to be mobile. We designed Surface to be rugged and move around but with VaporMg and Corning Gorilla Glass 2.0 you do not need to worry at all, but we know many people preferred to have some sort of cover. A cover that helps to just act like an easy on/off switch at least.
So Surface has a cover. We designed the cover to be an integral element of the PC. We built a magnetic connector into the device to hold it very securely.
So let me attach the cover, click — you heard that it’s solid — click, close the cover it’s integrated into the device. It’s made from a fine northwest pola? tech. Feels great in your hand like a book, it just fits there. And when we looked at the whole Surface on the cover, we challenged ourselves to do more. This cover is just 3 mm. Combined with Surface they are just over 12 millimeters that’s less than 0.5 inch. And we said why not do something with this Surface. Why shouldn’t we just take this Surface and make it a full multi touch keyboard.
This Touch Cover is not just a full multi touch keyboard, but it’s a modern track pad with left and right buttons. It even has the keys for the Windows 8 Metro Style UI. This keyboard combined with the kickstand form the hallmark of just hands on creativity. On average typing is twice as efficient as typing on glass. And it’s certainly more comfortable. Now of course the innovative on screen keyboard in Windows is still there and you can mix and match. The choice is really going to be yours. Just put them on the table and you’ve got a great stand.
Let me go over here and show you a different Surface. This Surface is connected to external HDMI. That’s built into the device. I’m going to go here and now I’ve got the Touch Cover connected. Now with front and rear facing cameras on this device, I can record videos. I’m going to start the camera application. So now I can go here and I could tilt this around and angle it, so I could see it. This camera is angled at 22 degrees, but angling at 22 degrees everybody at the table their head is perfectly framed into the picture or when I’m sitting at the seat, I can do a Skype call and I am perfectly framed. But this device also has Windows on it or Office on it. So I go into the desktop and I see here is Word running.
Now what is really neat, as I could also have using the multitasking capabilities I could dark the camera out there and now I can record a video or a interview and take notes, I could record my self and read from my notes. And that integration is really cool, in fact I could even use the USB port and plug in an external speaker and microphone even though it has dual array mics and dual speakers built in, and I could get super high quality recording. And so that’s a quick look at Surface.
Now there is so much more to show you today. Now imagine if you will that we took all of those capabilities of Surface and we build them so that you could use all the applications that you’re familiar with. You could use Photoshop or you could use other applications. Those applications would be built using the latest of the Intel Core Processor. Now that in addition to the Surface that we’re releasing today for Windows RT, we also have a Surface that’s designed with these latest Intel processors. So, in addition to working on the NVIDIA ARM processor we’re also working with on a Surface for Windows 8 Professional. I would like to introduce Mike Angiulo now, who’s going to come up on stage and show us a little bit of the next generation of Surface.
Mike Angiulo
[corporate vice president of Windows Planning, Hardware and PC Ecosystem]
Thank you very much Steven. I’m proud to introduce you to another member of the Surface family. This is Surface for Windows 8 Pro. The Windows ecosystem has always been about choice. And for the millions of professional desktop users out there, people who use their PC everyday to design and to create things, this is a great choice for you. It shares the same design principles that Steven was talking about. It’s a stage for Windows. It shows the same pride in craftsmanship. It’s less than 2 pounds and less than 14 millimeters, it’s a full PC.
Now this also has a ClearType display. Steven’s PC had a ClearType HD. This is a ClearType full HD display, and what that means is three things. It’s a combination of a very specific pixel geometry, rendering and an optical bonding process that together create the effect that your eye can’t distinguish between the individual pixels at normal viewing distances, in this case 17 inches, less than ARMs length.
This ClearType display also reduces Z-height [alternate term for X-height] and conserves battery power. It has some of the other high performance features you saw too. It’s got that 2×2 antenna technology. This is the first in tablets. It has dual high performance antennas and receivers so that you get the best Wi-Fi performance possible no matter how you hold it. It also has a chassis that’s build out of that same durable and elegant VaporMg that enables features like the 0.7 millimeter thin kick stand less than a millimeter. It’s got the same compatible accessory spine that Steven had, so if you take a Touch Cover like he had, it just clicks in, it clicks in the same. It has that same design and feeling because the entire Surface family of products was designed together. Even close like this, this is still less than 17 millimeters, this PC has specs that rival those of the finest Ultrabooks that have ever been announced. And it delivers the power and the flexibility that you would expect of a high end PC. This PC is powered by Intel’s third generation Core i5 processor, the Ivy Bridge processor.
This is their 22 nanometer process that results in a CPU that’s faster, a GPU that has double the 3D graphics throughput, all while using less power than today’s Core i5s. With that power comes a unique design challenge, how do you design a PC that you might be holding in any different way or have a cover in the front and the back to integrate active cooling. There is no obvious place to put a vent, so here is our solution. This is called perimeter venting. You see this groove that goes all the way around the outside of the case. There is a good shot of it up on the screen. This allows air to be uniformly distributed across the entire PC when necessary in a way, that you never block it with your hands. In fact you never even feel it, which makes the PC really comfortable to hold which is really helpful in doing things like flipping back your keyboard and taking notes with digital ink.
Surface for Windows 8 Pro supports digital inking. Windows apps of all kinds can support inking. So here what I’ve done is, I can go back for the desktop and show you what I launched. I launched the Windows Reader and this is a PDF file of one of Steven’s blog posts. So you could see I can pan and zoom. What I can really do here is I can come and I could do ink. I’m going to come and say this is great.
Now what you’ll notice when I ink and I zoom in, as I zoom in that ink stay smooth. That’s because it’s being sampled at 600 GPI, that sub-pixel accuracy for ink. What that does is that keeps your hand writing very smooth and hopefully yours is a little better than mine.
One of the neat things about this too is, as I’m inking from here I can see the tip of the pen almost feels like it’s writing exactly on the screen. Since this screen is optically bonded, we eliminated the layers in between the thin covered glass in the screen. So it feels like you’re inking write on the page. The distance between the stylus and where I see the ink is only 0.7 millimeters. That’s the thinnest and closest distance of any tablet PC, any inking tablet ever.
Now one of the other things that’s going on here is as I am moving my hand, you see the page is not moving underneath my hand. That’s because Windows has palm block technology. This Surface has two digitizers. It has one for touch and a separate one for digital ink.
And what happens is as when I bring the pen close to the screen, Windows sees the proximity of the pen, and stops taking touch input. So my hand doesn’t mess up what I’m waiting. And when I’m done with the pen, you can see the little magnetic charging connector there. It just clicks in. So that’s one of the cool things on Surface for Windows 8 Pro and inking.
The apps that I’d be showing you, they look really great in the native resolution of the screen, the 1080 resolution. But if you want to unlock the highest possible resolutions that Ivy Bridge supports. Even higher resolutions that are possible on via HDMI out. We have DisplayPort. So now with DisplayPort, I can take this PC. I can docket and I basically have a full professional workstation with the power of a desktop PC.
I have one here that’s plugged in and synced up to the show monitor and this kind of a PC is powerful enough to run big applications. Applications like Photoshop, Autodesks, Solidworks, enterprise applications that require a TPM [Trusted Platform Module] chip. In this case, I’m going to copy some higher res photos on to the PC and edit them in Adobe’s Lightroom. So on copying on to the desktop and what you’ll see here, this is the five-second copy. That’s a whole gigabyte. That’s a whole gigabyte of pictures. They just copied in five seconds.
Surface has support for really fast USB 3.0 and the new USB SuperSpeed drives, a gigabyte file copy in five seconds is five times faster than USB 2.0, which makes sense with this PC because they will be using it to do big jobs whether you’re editing big photos like this, and – or you’re dealing with big video files or you’re doing in Steven’s case a big job might be typing a super-long blog-post that you may have read. Surface is up for the tasks.
Now let’s say you are in fact doing one of those big typing jobs. You’ve seen already, Steven talked a little bit about Touch Cover and the improvements it makes for typing. Let’s say you’re really fast touch typist or maybe you just prefer the feel of tactile keys.
Well, we’ve got another Surface choice for you. This is Surface Type Cover. It shares the same full-pitch layout as Touch Cover. But what we’ve done is we’ve taken a key switch that has a 1.5-millimeter travel and we built it into the thinnest possible package. So you can touch type – I can touch type on this as fast as I can touch type on any keyboard. Fully compatible with Windows; you see the shortcut keys here. It has a full modern trackpad with clicking buttons and this completes the Surface family of products. I’d like to pull all the Surface family together, all at one point.
Panos, would you join us with the colors of Touch Cover Surface for Windows RT, Surface for Windows 8 Pro and a handful of the Touch Cover colors that we’re going to have it launched. That’s the complete Surface family.
Thanks Steven. Now that’s how we feel to in Panos especially, Panos Panay is the leader of the team that created Surface and has some great stories in some more detail about the product and how it came to be. It’s all yours.
Panos Panay
[General Manager, Microsoft Surface] Thank you.
Super cool – super cool. Thank you. Thank you for having me. I’m unbelievably humbled right now and flattered to be up here. But truthfully I’m recognizing an entire team that’s back in Redmond right now waiting to see your blog posts, to see what you have to say. We have a team full of designers, development engineers, manufacturing engineers, hardware testers, all working on these products right now as we speak.
Before I get into what I’m going to talk about today, I’m just going to show you a little [bit more about the design,] …

#3 excerpt:
Microsoft Announces Surface: New Family of PCs for Windows [Microsoft press release, June 18, 2012]: the 1st image was provided ny Microsoft, the next two are from the Microsoft provided video record

Advances in Industrial Design

Conceived, designed and engineered entirely by Microsoft employees, and building on the company’s 30-year history manufacturing hardware, Surface represents a unique vision for the seamless expression of entertainment and creativity. Extensive investment in industrial design and real user experience includes the following highlights:

  • Software takes center stage: Surface sports a full-sized USB port and a 16:9 aspect ratio – the industry standard for HD. It has edges angled at 22 degrees, a natural position for the PC at rest or in active use, letting the hardware fade into the background and the software stand out.
  • VaporMg: The casing of Surface is created using a unique approach called VaporMg (pronounced Vapor-Mag), a combination of material selection and process to mold metal and deposit particles that creates a finish akin to a luxury watch. Starting with magnesium, parts can be molded as thin as .65 mm, thinner than the typical credit card, to create a product that is thin, light and rigid/strong.
    image
  • Integrated Kickstand: The unique VaporMg approach also enables a built-in kickstand that lets you transition Surface from active use to passive consumption – watching a movie or even using the HD front- or rear-facing video cameras. The kickstand is there when needed, and disappears when not in use, with no extra weight or thickness.
    image
  • Touch Cover: The 3 mm Touch Cover represents a step forward in human-computer interface. Using a unique pressure-sensitive technology, Touch Cover senses keystrokes as gestures, enabling you to touch type significantly faster than with an on-screen keyboard. It will be available in a selection of vibrant colors. Touch Cover clicks into Surface via a built-in magnetic connector, forming a natural spine like you find on a book, and works as a protective cover. You can also click in a 5 mm-thin Type Cover that adds moving keys for a more traditional typing feel.

The product design part of the event keynote:

Panos Panay
[General Manager, Microsoft Surface]
… [I’m just going to] show you a little bit more about the design, show you a little bit more about the culture of how these products were build. So I think it might be interesting for you to hear that. I really want to share with you more of our team. So just watch this video really quick and I’ll be right back.
[Video Playback]
You’re going to get to meet a lot of the people you just saw on the video in just a few minutes. They’re actually backstage right now, preparing to show you more details of the product and give you a few minutes to put your hands on it, talk a little bit about the design.
Let me start by doing that to just give you a quick preview of what you might see backstage in just a few minutes. You’ve heard Steven and Mike both said this was build as the stage for Windows 8. That was part of our core vision for the product. It is very important for us that we had the hardware fade to the background for this product. It was important, so the Windows software could rise to the Surface. It gives you the best experience possible. When the hardware fades away and what comes to the Surface is that entertainment PC one when you’re using the device. Note the chamfered angles on the side of this product either chamfered at 22 degrees. That’s two things. One, it’s a physical manifestation of the actual stage itself. You can see as it falls away, just as we intended for the hardware to do. But two, it actually sits perfectly comfortable in your hands.
And let me call it by something. I’d say perfectly a lot. I’d say perfect a lot. As part of our team culture, what was really important for us as we had so many parts of the design that had to be in detail and be simple and be right that we always tried for perfection on every sub-component of this product, it includes this chamfered angle.
What it does is, it sits in your hand very comfortably, in a way that when you hold it, it feels like, it’s feels airy. Most importantly, you can use it all day in comfort. It’s really important when you talk about the hardware fading to the background that the hardware is not in your way to accomplish what you want to do. It’s meant to move you forward, which you think this product does.
Now when we talk about hardware fading to that back, another thing that’s super important is a seamless lines throughout the product. When you look at this product, you’ll see lines going throughout it, every line calculated, every line built, formed perfectly on the device.
But there is one challenge. Our vision for the product beyond being a stage for Windows was also that we had to bring creativity and productivity to folks such as yourselves.
The opportunity to transform this device well, to transition it to the state of getting things done. Putting this kickstand in the product, flies right in the face seamless lines and getting it perfect. But we really spent a lot of time here. We knew that if we do not get the kickstand perfect, this device would not work. We could not take any chances. Take a look at the three hinges that you see within this device. This is a really simple example of the details of the product. These are three custom-made hinges, mind you there are over 200 custom parts built from the inside out of this product to make it come to life.
But these hinges, they respect just as Steven told you. They respect to feel and sound like a high-end car door. When you close the device, the kickstand just goes away. It’s not in your way. When you needed the device, it’s there, just in time. You want to get something done, just open it and it feels great.
The spec we created was around sound. We iterated over and over again in our anechoic chamber. This is a critical point. We’ve really wanted to get the sound rights. So you get that – this full feeling, that emotional attachment to your product when you open this kickstand and close it. It makes it yours, it goes away when you don’t need it and it’s there when you do.
Now, we talked about VaporMg a few times. Now let me bring VaporMg to life just a little bit here. So you can understand a little bit more about what we did. VaporMg essentially becomes what lets us, get our product design and create life out of it. You can see the break up behind me, let me just explain a few things that we have going on.
I’m holding up my room key, it feels weird to hold at my room key. But if you look at this quickly, what you’ll see is 0.77 millimeters of thickness. This is an important point. If you can’t see it, that’s all right, same as a credit card, pull it out, your credit cards likely somewhere between 0.75 or 0.85 millimeters thick. It’s just a illustrated point. VaporMg is a process where we start with an ingot of magnesium and we melt it down to a molten state. Within injection mold the magnesium, there are some tools and we’re able to actually mold the intricate details that are needed for Surface. We mold down to 0.65 millimeters of thickness in any given part. 0.75 … [he means the credit card thinkness just mentioned], we mold to 0.65, this is important to understand, because for us to get to the design we needed for this product, to get the kick stand, integrated seamlessly and hold this line throughout the product we had to be able to mold to those tolerances.
Every micron matters within Microsoft Surface. we’ve actually stacked up every part from designing from the inside out, so tightly in the product and so cleanly that even if you stuck a piece of tape in the middle of the device, it would bulge, it would bulge out. That tells you how strong this product is, how much strength comes with it, how light it feels in your hands, all those parts play into each other.
The best part about VaporMg is not just that we can mold a 0.65 and get the intricate details like the 0.65 millimeters angles that go around the product this radial. The best part is the smoothness of the finish that comes out of the tools. After approximately 152 steps to get the VaporMg looking just like you see now, you find that the Surface finish on this product and as Mike says, bright in craftsmanship is perfect, it’s seamless. It screens watch quality finish and when you put it in your hands, it feels elegant, when you touch it, you’re going to want to hold it, I promise you.
Now I’m proud of VaporMg and I’m proud of the team for the product that they’ve done, but nothing, nothing stirs me more, nothing gets me more excited than Touch Cover. I really want to walk you through Touch Cover for just a few moments. This is an important technology that came out of our group. I’m going to walk you through it in two ways, the first way is through the experience and the second way I’m going to talk about is the technology.
Let’s do the experience first, we explained you what we try to do with Touch Cover from the get go, you notice I’m going to connect it now to my blue Touch Cover. So I just click it in, as you would expect. The Surface turns blue along with my Touch Cover and you have a beautiful integration of hardware and software. My Surface knows what is connected to it. I can now bring to life the vision that is Touch Cover for this product. The vision that lets you produce content when you want it, how you want it as fast as you’ve always done it, that’s what this product was designed for.
Let me give you one more second on this, on a little bit of the experience. The thing that was so critical for us in creating Touch Cover was that it had to be 3 millimeters thin. This essentially is at odds of any other keyboard you’ve used and still have a great typing experience. It also had to be a cover you wanted to connect, something you always had with you, something that gave you confidence just like the kick stand to bring this product to life.
We designed flex magnets in this product, that’s a combination of alignment in clamping magnets. You could actually never miss connecting this device, you can’t miss, we force you to not miss. We do that to give you confidence. You close it, it feels like a book, we design this organically like a book; we wanted it to feel just like that. What has more covers on it than books themselves? This spine feels like a book. When you put it in your hand and you walk away with your product, you’ll hold it like a book. When you carry it against your books, it will feel like it’s another book, it’s just light enough and it feels just perfect.
Now that said, I think you’re going to fall in love with Touch Cover. I know I have. I mean I’m seriously in love with it outside of my wife, Touch Cover is number two. It’s very important to me. Now, I never want to take Touch Cover off, and I’d argue that you don’t need to and you never have to.
You saw Mike move his Touch Cover to the back. Now when he did that I’m sure every single one of you thought like wait a minute, how do you move it to the back? Well, Touch Cover is pretty smart; it has an accelerometer built into it. The moment you fold it back, we know you fold it back, we know when you’re not using it and it’s turned off for you.
So you never have to take it off and underneath your fingertips, it feels great. So now you’ve got a comfortable device with Touch Cover that’s yours, it’s personalized to you. You saw the beautiful colors that we have coming to market and essentially what’s brought to you is an experience like none other with Touch Cover and Surface together.
Now I showed you the experience, but I wanted to show you the technology, because it really is important that you understand it and quite frankly, we have a bit of a mad scientist, who many of you know, named Stevie Bathiche. Stevie actually invented Touch Cover, the fact that we have 30 years of input experience using mice and 15 years creating keyboards, we really understand how to create a great typing experience. We also knew that if we brought you Touch Cover, and Touch Cover wasn’t any good, boy, what a breaking moment. But we’ve actually evolved this technology to a point through Stevie and his work to come to a place where we’ve brought you an experience that’s amazing at typing. There’s actually seven layers squeezed in, pressed right into Touch Cover to keep it 3 millimeters thin. Now that’s super thin, but critical for you to have a great experience when folding it back.
Let me explain to you how the technology works just ever so slightly and quickly. So what you’re going to see is I’m going to put my hands down on this machine here and, what you’re seeing is this is Surface for Windows RT, and my hands are down on Touch Cover. You’ll notice that my hands are laying flat on Touch Cover right now yet nothing is happening. If this was in fact a capacitive screen or the phone you might have in your pocket or some other device you might have, the keyboard would take up off the screen and you put your fingers down and it would look something like that.
Now that’s me actually pressing on Touch Cover, and it knows the grams of force coming off my fingertips, on to Touch Cover. Why is this critical? When you type in touch type speed, you have to find your home position and rest your hands. To do that, your keyboard can’t fire when you put your hands down, it’s comfortable, you can rest your hands and note as I put pressure on the J key, how the pressure goes up as I push harder and as I release, the pressure comes off.
It’s actually measuring every gram of force coming off my fingertips and as I start to type, it knows how many keys I’ve hit. This keyboard actually measures 10 times faster in scanning from a keyboard matrix than any keyboard, guarantee that you use today. It is super fast and brings great, great opportunity for you to be productive and get stuff done.
Obviously, I have a lot of pride in this product. I hope you’ll love it. I can’t wait for you to get your hands on it back there, and I really mean that. Steven, thanks for having me up here today.
Steven Sinofsky
That was a moment for our team for sure. I do want to talk a little bit about some availability and pricing information and things like that I know people want to know. Surface for Windows RT, I still say that there will be much more information available on the web and available shortly. So Surface for Windows RT will be available in both a 32 and a 64-gigabyte model and will be priced like comparable tablets that are based on ARM. Surface for Windows 8 Professional will come in 64-gigabyte and 128-gigabyte storage models and will have a retail price comparable with competitive Ultrabook-class PCs. Additional specifics on pricing and packaging will be announced as we get closer to retail availability.
Now of course, retail availability for the Surface PCs will be around the time of – for the Windows RT PC, will be at the time of the Windows 8 general availability and for Windows 8 Pro about three months later. Surface will be available through the Microsoft’s physical stores here in the U.S. and will be available through the select online outlets of the Microsoft store as well.
So welcome everybody to Surface. I just want to invite Steve Ballmer back up on stage one more time and thank you, thank you very much.
Steve Ballmer
I want to thank Steven and Mike and Panos and their team. This has been an unbelievable journey. We’ve invested significantly as you can see in talent, in time, in capital to bring the Surface to market. I was asked in the last few days here why now, why now? We took the time to really get Surface in Windows 8 right to do something that was really different and really special.
We’re very proud; very, very proud of the Surface just like we’re very proud of Windows 8. Because of Windows 8, because of Windows 8 the Surface is a PC, the Surface is a tablet, and the Surface is something new that we think people will absolutely love. We really want those of you here to have a chance to see and touch the Surface and talk with some of the people who are involved in designing the product.
We have several stations set up next-door where you can see the work that went into the creation of the Surface, and we hope you’ll stay and join us for that. Today has been the fun for us to put on for you very, very exciting and I want to thank you all for being part of today’s event. Thanks.

The justification part of the event keynote (was the general introduction, i.e. the first part of the event): i.e. how and why Microsoft decades long hardware innovation history has now been expanded by PC/tablet level innovation, why after Windows 8 innovation Microsoft needed a matching innovation in hardware as well? 

Steve Ballmer
Well, good afternoon and welcome, I certainly want to thank everybody for joining us for today’s event. The past several years have seen great change in the industry and great innovations coming from Microsoft. We’ve helped usher in the new era of cloud computing, we’ve embraced mobility, we are redefining communications and attempting to transform entertainment. In all that we have done Windows is the heart and soul of Microsoft from Windows PCs to Windows Servers to Windows Phones and Windows Azure. Windows is proven to be the most flexible general-purpose software ever created spurring on an ecosystem of unrivaled success.
When Microsoft was founded our vision was odd and broad: a computer on every desk and in every home. And while certainly we are optimists to the core Windows has exceeded even our most optimistic predictions. It now powers well over 1 billion PCs from desktops to laptops to ATMs to NASA workstations and more: in homes, in businesses, in schools and in governments literally around the world.
With Windows 8 we’ve re-imagined the Windows product. We re-imagine Windows from the chipset to the user experience, to power a new generation of PCs that enable new capabilities and new scenarios. We approached the Windows 8 product design in a forward-looking way. We designed Windows 8 for the world we know, in which most PCs are mobile and people want access to information and the ability to create content from anywhere anytime.
People want to do all of that without compromising the productivity that PCs are uniquely known for: from personal productivity applications, to technical applications, business software and literally millions of other applications that are written for Windows that work perfectly on Windows 8. We are incredibly gratified by the enthusiastic response to Windows 8 from our partners, our OEM partners, thousands of developers and literally millions of people consumers who’ve downloaded our previews.
Excitement is high with the new X86 and ARM SoC support. The new Metro User Interface and the new Store all getting very broad interest.
Today, we want to add another piece, another bit of excitement and another piece to that Windows 8 story.
At our foundation Bill Gates and Paul Allen made a bet, a bet on software, at the same time it was always clear that our unique view of what software could do would require us to push hardware sometimes in ways that even the makers of the hardware themselves had yet to envision. That’s the nature of the dynamic between hardware and software pushing each other and pulling each other forward. In fact, our number one revenue product actually the year I joined Microsoft 1980 was a hardware product, something known as the SoftCard. Let’s just take a little bit of a look back at the role of hardware at Microsoft.
[Video Playback]
We believe that any intersection between human and machine can be made better when all aspects of the experience hardware and software are considered in working together. Just let’s take the mouse as an example.
To be successful Windows 1.0 really needed a mouse so we built one. Early reviews of mice were not very positive as people struggled to understand the real value. In fact actually it was so new the Canadian Customs quarantined the Microsoft mouse at the border for four weeks thinking that it was alive.
Our most successful hardware product has been the Xbox and with Kinect we’ve created a whole new user experience. And now developers are pushing Kinect, viewing more exciting and even cooler things for both the game console and for Windows PCs. This combination of hardware, software and peripherals in the Xbox case work together to deliver an absolutely amazing experience.
We see that sort of combination working also today in our PC ecosystem. We believe in the strength of that ecosystem, of software and hardware companies that work together to deliver selection and choice that makes your Windows experience uniquely your own. Those partnerships are essential to the re-imagination of Windows. We’ve worked with the component companies, Intel, AMD, NVIDIA, Qualcomm and Texas Instruments.
Of course the ultimate landing point of this PC experience is through our partnerships with OEMs: HP, Dell, Asus, Acer, Samsung, Sony, Lenovo, Toshiba and many, many more. They will deliver more PCs to market in the year 2013 than in any previous year. IDC estimates that number at over 375 million Windows PCs. That will ensure that software developers and content creators have a larger number of new systems to target with their Windows 8 applications than any other non-phone platform.
However, with Windows 8 we did not want to leave any scene uncovered. Much like Windows 1.0 needed the mouse to complete the experience, we wanted to give Windows 8 its own companion hardware innovation. What is this innovation? It’s something new, it’s something different, it’s a whole new family of computing devices from Microsoft.
[Video Playback]
This is the new Microsoft Surface. It embodies the notion of hardware and software really pushing each other. People do want to create and consume, they want to work and they want to play, they want to be on their couch, they want to be at their desk and they want to be on the go. Surface fulfills that dream. It is a tool to surface your passion, to surface your ideas, to surface your creativity and to surface your enjoyment. I really want you to take the time today to get to know Microsoft Surface. So let’s now learn more from Steven Sinofsky and the Microsoft Surface team.
Steven Sinofsky
Just as we’ve re-imagined Windows we also have a vision for re-imagining the tablet.
We see a tablet that is designed the way that Windows has been designed. We see a tablet that represents a unique vision with a seamless expression of entertainment and creativity. A tablet that works and plays the way that you want to, a tablet that’s a great PC, a PC that’s a great tablet, a new type of computing, Surface.
Surface is a stage for Windows. Surface is designed for the software experience to take it, have it take centre stage. Surface is super thin at 9.3 millimeters. It’s just thin enough for this full size USB port for peripherals or just charging your phone while you are at the hotel. The edges are bevelled away at 22 degrees, so the PC itself fades into the background. It feels natural in your hands.
Surface is the first PC with a full magnesium case. Through unique process the liquid metal is formed into an ultra rigid, yet ultra light frame. It is incredibly in strong and it’s airy at under 1.5 pounds, just 676 grams, and it’s finely balanced. We didn’t stop there, the case is one of a kind. It’s made from a physical vapor deposition process. It results in a permanent scratch and wear resistance for Surface. This VaporMg case is a first of a kind, and it accentuates the unique feel of Surface.
Surface is of course great for entertainment. It has access to all of the Windows apps for music, for video, for Xbox and gaming. We can see here I’m running Internet Explorer. I can browse smoothly, use see great pages using ClearType and have a great experience just with all the – with browsing. It’s 10.6 inch optically bonded, wide screen display, is custom designed for Surface. And of course people play games. I can go and play any of the interesting games that are on – in the Windows Store and I can use Surface for using all the sensors that are within Windows as well. Surface works for all of those games.
Movies and entertainment look great as well. Excuse me just a second. Surface looks great for entertainment as well. In fact I’m going to show here for the first time a very exciting new application. This is the Netflix application designed specifically for Windows 8. Now with the wide screen you get 30% more viewing area and no banding or letter boxing like you traditionally see.
I’m happy to show this new Netflix application … [,  give you an early look how it’s designed specifically for Windows 8 with semantic zoom. And Netflix will have this ready at the Windows 8 launch. I can go here and start a movie and see it stream straight to my Surface PC. Just like you would expect.
Now to stream so well Surface needs great Wi-Fi. Surface is the first tablet to incorporate dual 2×2 MIMO antennas. That means it provides the very best Wi-Fi reception of any tablet today. Surface is incredibly great for Windows and for entertainment PC. And we are just getting started.] …

More information:

Surface Website
On-Demand Keynote: Microsoft Surface Event
Broll: Product imagery of Microsoft Surface
Broll: Images from Microsoft Surface Event
Product & Event Images
See it in Action

And remember this leading edge Microsoft Surface family, leading edge even  against Apple’s market leading offerings, so this product is definitely just the tip of the iceberg. Consider this Channel 4 report which is showing the kind of the future which could come from Microsoft as seen back to the beginning of last year:
Touching, waving at and talking to the future with Microsoft [Channel 4 News YouTube channel, Feb 8, 2011]


(Note towards the end of the video, Panos Panay to appear as simply from Microsoft Surface.) Additional infomation:
–  Benjamin Cohen, the reporter in the video, had this detailed blog post about that visit
–  Steve Clayton, the Microsoft’s not that long ago initiated, ‘Next at Microsoft’ storyteller, had also this detailed blog post about that visit

Note that Microsoft shares started to raise already last Friday (obviously based on expectation when the invitations to a ‘mistery event’ were sent out). Nevertheless from $29.34 to this Tuesday’s closing price of $30.71 that was only a 1% growth. Interestingly during the same period Apple’s share price had a 1% growth as well, although Apple made its series of announcements a week earlier, on Monday last week (June 11th, 2012):
Apple Introduces All New MacBook Pro with Retina Display
Apple Updates MacBook Air and Current Generation MacBook Pro with Latest Processors and New Graphics
Mountain Lion Available in July From Mac App Store
Apple Previews iOS 6 With All New Maps, Siri Features, Facebook Integration, Shared Photo Streams & New Passbook App
which resulted in 0.5% growth only.

So the stock market evaluated the Microsoft Surface against the above Apple introductions, and found that on equal level from business growth perspective, although Apple’s closing price yesterday was $587.31, i.e. 19x higher. In terms of market capitalisation  Microsoft remains on the same 47% of Apple’s, so from business competition point of view the announcement of Microsoft Surface is not changing the positions as far as the opinion of the overall business world is concerned. INTERESTING!

Meanwhile the earlier Microsoft Surface product has been renamed as Microsoft PixelSense in order to avoid confusion:

About Microsoft PixelSense [Microsoft page for the press on the PixelSense microsite, June 18, 2012]

The Samsung SUR40 with Microsoft PixelSense is an innovative product that responds to touch, natural hand gestures and real world objects placed on the display, providing effortless interaction with information and digital content in a simple and intuitive way. With a large, 360-degree, 4-inch thin horizontal user interface, the Samsung SUR40 offers a unique gathering place where multiple users can collaboratively and simultaneously interact with content and each other. In addition, the SUR40 provides businesses with unique value in delivering information and services in a more friendly way allowing better engagement with their customers. The Samsung SUR40 with Microsoft PixelSense is targeted for companies across a variety of industries including retail, hospitality, health care, and public sector.
The Samsung SUR40 with Microsoft PixelSense is a major advancement in computing that moves beyond the traditional user interface to a more natural way of interacting with information. The four key attributes that make this experience unique are:
  • Multiuser experience.The horizontal form factor makes it easy for several people to gather together, providing a collaborative, face-to-face computing experience.
  • Massive multitouch contact. The Samsung SUR40 with Microsoft PixelSense recognizes many points of contact simultaneously, not just from one finger, as with a typical touch screen, but up to dozens and dozens of items at once.
  • Direct interaction.Users can actually “grab” digital information with their hands and interact with content through touch and gesture, without the use of a mouse or keyboard.
  • Object recognition. Users can place physical objects on the display to trigger different types of digital responses, including the transfer of digital content.
At CES 2011, Microsoft unveiled the designed for touch experience featuring Microsoft PixelSense technology, which gives LCD panels the power to see without the use of cameras.
This experience comes to life in the Samsung SUR40 with Microsoft PixelSense, which incorporates significant technological advancements designed to enhance the user experience.
The Samsung SUR40 with Microsoft PixelSense features key hardware and software technology advancements informed by feedback from users around the world.
  • Microsoft PixelSense™.Microsoft PixelSense allows a display to recognize fingers, hands, and objects placed on the screen, enabling vision-based interaction without the use of cameras. The individual pixels in the display see what’s touching the screen and that information is immediately processed and interpreted.
  • PixelSense technologydelivers an innovative user experience built on the principles of direct interaction using touch and objects. The Microsoft Surface 2.0 SDK allows application developers to take advantage of capabilities of PixelSense technology.
  • Thin form factor with multiple configuration options.The Samsung SUR40 is four inches thin, which makes it easy to use as a table, hang on the wall with the VESA mount, or embed in walls or custom enclosures. There are standard leg supports available or customers can design and attach their own leg supports.
  • High definition large format display. The 40-inch, stunning high-definition screen (1920 x 1080 resolution) enables enhanced multiuser and multitouch experiences.
Microsoft PixelSense activities are available on the Microsoft PixelSense blog and Microsoft PixelSense on Twitter.
For more information, press only: PixelSense PR team

Also these two videos appeared on a new Microsoft® PixelSense™ YouTube channel [June 18, 2012]:

The Power of Microsoft® PixelSense™

Published on Jun 18, 2012 Microsoft® PixelSense™ technology enables the Samsung SUR40 to recognize fingers, hands and objects placed on the screen, enabling vision-based interaction without the use of cameras. The individual pixels in the display see what’s touching the screen and that information is immediately processed and interpreted. Experience the power of PixelSense on the Samsung SUR40 with Microsoft PixelSense http://www.samsunglfd.com/solution/sur40.do To learn more about Microsoft PixelSense technology please visithttp://www.pixelsense.com

Samsung SUR40 with Microsoft® PixelSense™

Published on Jun 18, 2012 Samsung SUR40 with Microsoft® PixelSense™ brings people together to connect, learn and decide, changing the way people collaborate and connect with a 360-degree interface. And, with Microsoft PixelSense, the SUR40 sees and responds to touch and real world objects. This experience comes to life in the 40 inch high-definition Samsung SUR40 that can be used as a table, on the wall, or embedded in other fixtures or furniture.

Now some first reactions from the event attendees:

image

Microsoft Surface: a closer look [TheVerge YouTube channel, June 18, 2012]

See also this article: Microsoft Surface with Windows RT hands-on pictures and video [Joshua Topolsky from The Verge, June 18, 2012]

image

Microsoft Surface tablet demo June 18, 2012 Event in SF [SlashGear YouTube channel, June 18, 2012]

See also these articles, same date, on SlashGear (the first ones are kind of liveblogging):
Microsoft Surface Tablet Hands-on by Vincent Nguyen
Microsoft Surface re-introduced as a handheld tablet by Chris Burns
Microsoft Surface cover doubles as built-in keyboard by Cory Gunther
Microsoft Surface for Windows 8 Pro revealed by Chris Burns:

This tablet introduced its own “Perimeter Venting” so as not to get too hot [in fact to solve the problem of cooling with a tablet which can be used in both portrait and landscape modes], works with Pen input (with digital ink, explained in a different post), and has a display that’s just 0.7mm from the glass that covers it. The Microsoft Surface for Windows 8 Pro has two digitizers, one for ink, one for touch, and has a bit of magnetization for its pen so no holes or clips are needed.

Microsoft Surface to feature digital ink stylus support by Cory Gunther

At the event live they said it best by stating, “This surface has two digitizers. One for touch, one for digital ink.” All stylus or pen input is converted into digital ink and the new Surface tablet is extremely responsive and accurate.

The distance between the screen (digitizer) and the stylus is only .7mm thick, and allows for it to be highly accurate, making you feel like the ballpoint of a pen is actually writing on the “surface”. Surface will see the proximity of a stylus and stop recognizing hand inputs.

Microsoft Surface Windows RT confirmed with NVIDIA’s Tegra processor by Cory Gunther

NVIDIA has just issued a rather short note confirming that their Tegra processor will be under the hood and powering the smooth and fluid Windows 8 RT model. They didn’t specify which Tegra processor as expected, but we are speculating it will be the quad-core Tegra 3 KAI platform, or the Tegra 3+ that was detailed as coming soon [… an upgraded Tegra 3 called T3+, with code-names Wayne and Grey splitting off in the third quarter of 2012 with LTE. Grey specifically will have access to LTE data speeds, with Tegra and Icera hardware being part of this sector for NVIDIA] in a lot more than just Android devices.

Microsoft Surface Touch Cover vs Type Cover hands-on by Chris Burns

These keyboards bring on a fair stab at what 3rd party manufacturers have been attempting for the iPad and a host of Android tablets now for several years. The keyboards on both units aren’t going to bring you a perfect replacement for a notebook computer if you’re attempting to match the laptop-bit of the equation, but if you’re the sort of person to work on a desk, you might be in business.

Microsoft Surface could debut MagSafe-data hybrid hook-up by Chris Davies

The four-pin port is on the right lower edge of the new tablets, and seemingly matches up with the MagSafe-like connector detailed in a patent application from the company. If so, that could mean a single hook-up for recharging the Surface and synchronizing it with other devices.

Microsoft’s patent application followed in the footsteps of Apple’s magnetic charger system – which allows the cord to break away easily if someone trips over it, rather than yanking your laptop off the desk – but added in a data connection. With just one port, the Surface could be hooked up to both a charger and other external hardware, with an optical data link used for maximum speed potential.

The potential for such a connection is vast. Microsoft has been coy about external device support for Surface, only mentioning the USB and video-output ports, but with this proprietary port it could be used with a docking station to add in an optical drive, wired network connection and more.

We’ve been waiting for just such a strategy from Apple for some time, and indeed the Cupertino company has an optical data MagSafe patent application of its own. More on Microsoft Surface in our hands-on here.

image

Microsoft Surface Tablet: Hands-on [laptopmag YouTube channel, June 18, 2012]

See also these articles:
Microsoft Surface Tablet Hands-on: The Future of Windows is Here [Video] [Michael A. Prospero from LAPTOP Magazine, June 18, 2012]
iPad vs Microsoft Surface: Tablet Specs Compared [Kenneth Butler from LAPTOP Magazine, June 18, 2012] (data higlights are mine to denote the essential differences)

 
clip_image001
clip_image002
clip_image003
Device
iPad 3
Surface (Windows RT)
Surface (Windows Pro)
Price
$399
TBA
TBA
CPU
Apple A5X dual-core
Nvidia Tegra 3 [simply Tegra]
Intel Core i5
OS
iOS 5
Windows 8 RT
Windows 8 Pro
Display
9.7 inches
(1024 x 768)
10.6 inches
(Resolution unknown)
10.6 inches
(Resolution unknown)
Size
(inches)
9.5 x 7.31 x 0.37
.37 inches thick
.53 inches thick
Weight (pounds)
1.44
1.49
1.99
Storage
(Built-In)
16GB, 32GB,
64GB
32GB, 64GB
64GB, 128GB
Ports
10-pin
microSD, USB 2.0, Micro HD Video, 2×2 MiMO Antenne
microSDXC, USB 3.0, Mini DisplayPort, 2×2 MiMO Antenae

image

Microsoft to Unveil a New Tablet – Good or Bad Idea? [The Wall Street Journal YouTube channel, June 18, 2012]

Microsoft is expected to unveil its own tablet computer today. But will it follow in the steps of the Xbox or the Zune? George Stahl discusses on Markets Hub. Photo: AFP/GettyImages.

See also this article: Microsoft Unveils Surface Tablet to Rival iPad [Shira Ovide from The Wall Street Journal, June 18, 2012]

… Al Hilwa, an analyst at IDC, said the combination of PC and tablet features makes surface a “true converged” device. “A Swiss Army knife of a tablet?” …

The computer makers‘ business is dependent on Microsoft, so they may not express annoyance publicly at Microsoft’s trading on the hardware makers’ turf. But at least some hardware executives are fuming privatelyat Microsoft’s decision.

Microsoft’s move to make its own tablet “comes with consequences, which is complicating choices for consumers and complicating relations with third-party manufacturers,” said Sarah Rotman Epps, an analyst with Forrester Research Inc.

image

Microsoft “Surface” Tablet Announced, Powered by Windows 8 [Eric Savitz for ForbesVideo YouTube channel, June 18, 2012]

Aiming squarely at Apple’s hold on the tablet market, Microsoft unveiled ‘Surface’, its new line of tablet computers based on Windows 8.

See also these articles:
Microsoft: Live From Hollywood! Introducing Microsoft Surface Tablet (Updated) [Eric Savitz from Forbes, June 18, 2012]: a live blog of the event
Microsoft Announces Surface, Its New Windows 8 Tablet [Kelly Clay from Forbes, June 18, 2012]

As no one does keyboards better than Microsoft, yet another keyboard is also available for Surface that features a full trackpad with clicking buttons. Though Surface is slightly heavier than the iPad and has 25% less battery life (31.5 Watt hours compared to the iPad’s 42.5 Watt hours), Surface is truly one of the most powerful and lightweight mobile PCs we have seen.

It’s clear that Surface is designed for current Windows users, and according to NetMarketshare, Windows XP, Vista, and 7 combine for 93% of all desktops. For these users – especially those in the corporate environment – there is a hesitation to switch to another platform, even just for mobile use. As a result, Surface could be a game-changer in the tablet industry. Not only does it feature key capabilities that Apple has yet to ever integrate (such as a keyboard), but Surface will undoubtedly make it easier for curent Windows users to transition from home to office and in-between. While a price has yet to be set, it’s expected to be extremely competitive compared to other tablets, ensuring that Surface is a device that many current Windows users will want to own.


Other notable first reports:

1. WIRED magazine [June 18, 2012]:
Liveblog: Meet ‘Surface,’ Microsoft’s New Windows 8 Tablet
Microsoft May Be Late to Tablet Fight, But Has the Cash to Keep Sparring
Microsoft Dives Head-First Into Mobile Hardware With Two 10.6-Inch Tablets

Surface is much, much more than a new tablet platform. It’s also Microsoft’s first fully branded computing device — an ambitious new development direction after years of making only simple computer peripherals. And Surface is also a challenge to every hardware partner in Microsoft’s OEM stable.

“Its a bold move on the part of Microsoft,” says Gartner analyst Michael Gartenberg. “This is a real change in strategy for them, and it’s certainly a vote of no confidence for their partners. This shows how high the stakes are. There is competitive pressure from Apple that is clearly a threat to their business. Steve Ballmer seemed to be channeling Steve Jobs on stage, saying hardware and software have to be designed to together.”

As for pricing, Microsoft isn’t saying, but Gartenberg weighs in:

“I’m guessing somewhere between $600 and $1000 — Microsoft was very vague. This the problem you encounter when you launch something so far ahead of delivery,” he said. “For a launch like this, it’s all about the details. Everything about this event, the mysterious invitations, the presentation — Microsoft is trying to be Apple. But the only company that has successfully been like Apple, is Apple.”

2. engadget [June 18, 2012]:
Live from Microsoft’s mystery press conference in Los Angeles! by Dana Wollman
Hands-on with Microsoft Surface for Windows RT, Touch Cover and Type Cover (update: video!) by Dana Wollman:

… (Microsoft has only said that the ARM chip is made by NVIDIA. No one ever said it’s a Tegra 3 SoC, but that is naturally our best bet.) …

Based on remarks by Steve Ballmer and others during the presentation, it sounds like a lot of thought went into the two keyboards, so we wouldn’t be surprised if a large focus group of touch typists were able to prove Redmond’s engineers right. But having played with both, we don’t imagine this being like settling in with a new laptop or Transformer-style dock. You might have to re-learn how to type (or at least teach your brain to fuhgeddaboutit and trust your fingers to land where they’re supposed to.) …

Even after some brief handling, we feel impressed, almost sobered by what Microsoft’s managed to produce after vowing to take the Windows 8 hardware-software package into its own hands. Surface for Windows RT is well-made, polished, durable and carefully engineered. And yes, that’s sobering news: Microsoft’s own OEM partners, everyone from ASUS to Acer to HP, should feel a tinge of defensiveness. If Redmond’s mission until now has been to showcase all the possible form factors for Windows 8, it may have just taken a step in the opposite direction by upstaging everybody else.

Microsoft reveals its own Windows 8 tablet: meet the new Surface for Windows RT by Jon Fingas:

Not unlike Apple’s last two generations, there’s a magnetically attached cover, but it’s more than just a protector: here, it includes a full multi-touch keyboard and trackpad.

Microsoft one ups other tablet ‘smart’ covers with Surface’s Touch Cover and Type Cover by Terrence O’Brien:

… right now we’re pretty enamored with Microsoft’s Touch Cover for the newly announced Surface. See, it works almost exactly like that other “smart” tablet shield, but this one actually earns it’s smart moniker. When you peel the plastic shroud back it turns into a fully functional keyboard and touchpad. Obviously, being a thin plastic sheet, the cover is relying on touch for key presses, not the actual depression of mechanical switches. …

Perhaps one of the more interesting features though, is their ability to force Win 8 to color coordinate with your chosen shade of folio. Click the blue Touch Cover on to the Surface and the background switches to a soothing shade azure. There’s even an accelerometer inside those 3mm-thin softer covers — which is an impressive feat of engineering. The Touch Covers can easily distinguish between you simply resting your hands on the keyboard and actually typing, which should help minimize accidental key presses.

Microsoft announces Surface for Windows 8 Pro: Intel inside, optional pen input by Donald Melanson
Microsoft Surface tablets: the differences between Windows RT and Windows 8 Pro models by Darren Murph

3. CNET [June 18, 2012]:
Microsoft breaks tradition with Microsoft Surface tablets
Surface touches the right keys, but not a complete picture
Who is the Microsoft Surface for, exactly?
Five key takeaways from Microsoft’s Surface event:

… 1. Don’t confuse this with the table thing [i.e. the old Surface now called Microsoft PixelSense]. … 2. This isn’t just aimed at the iPad and Android tablets [as it can work like a PC, complete with a full version of Windows]. … 3. This thing is high-tech. … 5. This is just the start [as Microsoft is positioning Surface as the beginning of a family]. …

Why Microsoft built its own tablet — think Apple and Xbox

The tablet and ultraportable form factors are especially fertile ground in terms of growth and innovation. A recent Online Publishers Association studyfound that 31 percent of the U.S. Internet population (74.1 million users) own tablets, up from 12 percent in 2011. By 2013, the study projected that 47 percent of the U.S. Internet population (117.4 million users) would own tablets.

At this juncture, Google’s Android platform (including Amazon’s Kindle) and Apple’s iOS are splitting the market. Apple’s continuation of its firm grip on hardware and software integration is working exceedingly well, as evidenced by the company’s incredible financial success.

Google gives its Android platform to partners for free, which leads to some fragmentation and a fraction of the profits Apple is generating. Like Microsoft, Google plans to introduce its own branded tablet this month. Microsoft expects that it can generate some buzz and give Windows users a legitimate alternative to Apple’s iOS and Google’s Android, as well as incent its developer community to build native apps for its platform.

Note: In the above argumentation CNET relied on the released the same day “A Portrait of Today’s Tablet User – Wave II” U.S. findings from the Online Publishers Association (OPA), particularly the one represented on the following slide:

image

for which the accompanying OPA press release stated the following:

… Tablet adoption has significantly increased in the past year; 2012 saw 31% of the U.S. internet population owning tablets (74.1M users), up from 12% (28.3M users) in 2011. Furthermore, by the year 2013 this figure is expected to increase with a projected 47% of the U.S. internet population (117.4M users) owning tablets.

Of these tablet users, the Android platform has drawn level with iOS, largely in part because of the strong sales of the Kindle. 52% of tablet owners have an iOS operating system, while 51% use an Android powered tablet (percentages do not add up to 100% because tablet owners own/use more than one type of tablet). This is a drastic change from 2011, which saw 72% of tablet owners use some form of the iPad while only 32% used an Android tablet. …

4. AllThingsD [June 18, 2012]:
Microsoft’s Surface Tablet Takes On Apple’s iPad liveblog by Ina Fried
Microsoft Launches New Surface Tablets With Windows 8 by Bonnie Cha
Microsoft CEO Steve Ballmer on Where Microsoft’s New Surface Tablet Fits in PC Ecosystem by Ina Fried

In a brief chat after the event, Microsoft CEO Steve Ballmer said that PC makers have known for an unspecified period of time that Microsoft would be doing its own hardware.

Ballmer noted that there will be a lot of PCs sold that will be made by companies other than Microsoft.

If you look at the bulk of the 375 million machines that get sold (next year), they probably aren’t going to be Surfaces,” Ballmer said. “On the other hand, we could have a sizeable business.”

It’s an important companion to the whole Windows 8 story,” Ballmer said. “It’s an important piece. It’s not the only piece.”

While Microsoft kept the details of Surface tightly limited to a small group of Microsoft employees working on the project, Ballmer said PC makers weren’t totally taken by surprise.

“Our PC partners knew in advance we were announcing something today in this space,” Ballmer said.

So how did they feel about it? “No comment.”

Ballmer said Microsoft’s goal is that Surface “gives people a full range of things to think about, sort of primes the pump for more innovation around Windows 8, (and) brings new technology to the Windows PC platform.”

Just how closely to the vest has Microsoft been keeping Surface? Ballmer said he has not personally been using a prototype on a regular basis.

“We wanted to keep things under wraps,” Ballmer said. “I’m out in public a lot.”

5. Boy Genius Report (BGR) [June 18, 2012]:
Live from Microsoft’s tablet event! by Brad Reed
Microsoft unveils Surface tablet by Zach Epstein
Microsoft Surface tablet hands-on by Brad Reed

I have to admit that the Touch Cover felt somewhat alien to me at first when I was playing around with it, but that could be due to the fact that I didn’t have a lot of time to play around with it — Microsoft was really herding reporters quickly through the line. The Type Cover did feel quite natural as a keyboard should, however, so at the very least, there should be one strong option for people who prefer traditional keyboards.

The tablet’s 10.6-inch display screen looked gorgeous, although Microsoft was being weirdly evasive when asked what the exact screen resolution was. The tablet’s “VaporMg” casing is extremely solid, and the tablet feels very strong in your hands. Despite being 9.3 millimeters thick, the Windows RT version of the Surface is in no danger of bending under pressure.

In terms of software, Windows RT brings some cool new capabilities to the tablet form factor, including the ability to run two apps on the same screen simultaneously. One Microsoft rep, for instance, demonstrated how to have Outlook email on one half of the screen while having sports scores on the other half. And of course, the home screen on both versions of the Surface tablet features Windows 8′s Metro UI that is significantly more intuitive, colorful and user-friendly than past editions of Windows.

Standards-based adaptive layouts in Windows 8 (and IE10)

Windows 8 Consumer Preview: Product Demo [on WindowsVideos YouTube channel, Feb 28, 2012]

Jensen Harris from Windows User Experience gives a demo of the Windows 8 Consumer Preview.

With Windows 8 (and IE10) Microsoft is carrying out a future-proof web platform strategy as well. Below I’ve collected the standards-based adaptive layout technologies (as the most critical ones from a scaling point of view) implemented by the company for the current Windows 8 Consumer Preview released on Feb 29, 2012.

Windows 8 Consumer Preview: Making great Metro style apps [on WindowsVideos YouTube channel, Feb 29, 2012]
For this post watch at least the #2 Snap and Scale beautifully part between [2:42] and [3:20] !

Discover the common traits of great Metro style apps. For this post watch at least the #2 Snap and Scale beautifully part between [2:42] and [3:20] !

The corresponding W3C specifications are indicated along, namely:

Notes:

  1. For text layout CSS regions may be a better option than the multi-column in situations where a more varied page layout is called for, or where there is a possibility that the inline content of an element could overflow the element.
  2. All of the layout constructs available in HTML are available for XAML developers as well. In this way developers in the C++ and the managed (C# etc.) worlds are having the exactly same capabilities, particularly from the point of view of adaptive layout technologies described here from web standards point of view.

Scaling to different screens [Building Windows 8 blog, March 22, 2012]

(more…)

Nokia under transition (as reported by the company)

Note and updates: stock price is up 3.17%  as per above (those numbers are in US$)
– see more: Nokia trying the first Lumia month in China with China Telecom exclusive [March 28, 2012]
– Nokia seeks to retake China market share [Reuters, March 28, 2012]: “Shares in Nokia rose 3 percent to 4.116 euros, helped also after Sweden’s Swedbank lifted its rating to “buy” from “neutral”.
– Are Nokia’s Largest Shareholders Betting on a Turnaround With New Releases in China? [Wall St. Cheat Sheet, March 28, 2012]

279 institutional firms indicated owning shares of Nokia Corporation (NYSE:NOK) in both Q3 2011 and Q4 2011. These firms reported owning a total of 348.305 million shares on 09/30/2011 and 382.757 million shares [out of 3.74B, i.e. ~10%] on 12/31/2011. The shares closed at $5.66 on 09/30/2011 and $4.82 on 12/31/2011, for an aggregate market value of $1.971 billion and $1.845 billion, respectively.

– Nokia: The Recovery Begins; One Analyst Turns Bullish [Forbes, March 30, 2012]

… Town Hall Investment Research analyst Jamie Townsend this morning upped his rating onNokia to Buy from Avoid.

His view: for Nokia, the turnaround has begun. And for that he credits the company’s still unfolding new relationship with Microsoft, and its decision to adopt Windows Phone 7 as the operating system for its high-end smartphones.

“Our renewed enthusiasm is primarily driven by Nokia’s smartphone business and our belief that long term the company is now poised to slowly reestablish itself as a meaningful player in smartphone markets around the world,” Townsend writes in a research note. “While we believe that Q1 and Q2 2012 will continue to show the struggle between the death of Symbian and the rise of WP7, we also believe the pieces are now in place for a gradual reversal in the market share losses experienced in the last three years. Specifically, we are expecting positive unit surprises in the U.S. and Western Europe over the next two quarters, albeit coming off a very low base and expectations. While only a wild card right now, we also believe that some sort of partnership between Microsoft, Nokia and RIM is now a real possibility.”

“We believe that there are two issues for RIM that relate to NOK,” he writes. “First, we believe that RIM is now where NOK was approximately a year ago. There was no longer any doubt as to the declining state of the smartphone business but also no clear path to recovery. As we know from Nokia’s last year, the recovery required bold action and the a long lead time to the actual point of product improvement. We believe investors should wait until the recovery is clear which in our view is not yet the case with RIM, but is now on the near horizon for NOK.”

“Second, RIM management on the quarterly conference call made it abundantly clear that the company is seeking a new partnership that will allow it to enhance its consumer appeal but allow it to focus its attention on its core historical strength with the enterprise,” he adds. “We believe that this strategy carries a number of risks, but also believe that Nokia/Microsoft represents the most likely candidate for such a partnership. We have no data points to support that this will happen or that Nokia/Microsoft would want it to, but believe it to be a real possibility over the next six months. Should it occur we believe it would be perceived as a meaningful positive for NOK shares.”

NOK this morning is up 7 cents, or 1.2%, to $5.49.

End of updates

According to the below excerpts from the Nokia 2011 fiscal year report [March 8, 2012]

Current strategic business units, their responsibilities and accountabilities:

[F-9] As of April 1, 2011, the Group’s operational structure featured two new operating and reportable segments: Smart Devices and Mobile Phones, which combined with Devices & Services Other and unallocated items form Devices & Services business.

As of October 1, 2011, the Group formed a Location & Commerce business which combines NAVTEQ and Nokia’s social location services operations from Devices & Services. Location & Commerce business is an operating and reportable segment. From the third quarter 2008 until the end of the third quarter 2011, NAVTEQ was a separate reportable segment of Nokia. As a consequence, Nokia currently has four operating and reportable segments: Smart Devices and Mobile Phones within Devices & Services, Location & Commerce and Nokia Siemens Networks.

Prior year segment specific results for 2009 and 2010 have been regrouped and recasted for comparability purposes according to the new operational structure.

[F-26] Nokia’s reportable segments represent the strategic business units that offer different products and services. The chief operating decision maker receives monthly financial information for these business units. Key financial performance measures of the reportable segments include primarily net sales and contribution/operating profit. Segment contribution for Smart Devices and Mobile Phones consists of net sales as well as its own, directly assigned costs and allocated costs but exclude major restructuring projects/programs and certain other items that are not directly related to the segments. Operating Profit is presented for Location & Commerce and Nokia Siemens Networks. Nokia evaluates the performance of its segments and allocates resources to them based on operating profit/contribution.

Smart Devices focuses on smartphones and smart devices and has profit-and-loss responsibility and end-to-end accountability for the full consumer experience, including product development, product management and product marketing. ([52] Nokia’s portfolio of smartphones covers price points ranging from around EUR 100 to more than EUR 500, excluding taxes and subsidies. During 2011, we shipped approximately 77.3 million smartphones.)

Mobile Phones focuses on mass market feature phones and related services and applications and has profit-and-loss responsibility and end-to-end accountability for the full consumer experience, including development, management and marketing of feature phone products, services and applications. ([54] Nokia’s portfolio of feature phones covers a wide range of price points from the Nokia 100, our most affordable device which costs about EUR 20, excluding taxes and subsidies, through to devices with more premium features costing upwards of EUR 100, excluding taxes and subsidies. During 2011, we shipped approximately 339.8 million feature phones.)

Devices & Services Other includes net sales of Vertu, spare parts and related cost of sales and operating expenses, as well as intellectual property related royalty income. Operating expenses of Devices & Services Other also include common research and development. Other income and expenses include major restructuring projects/programs related to the Devices & Services business as well as other unallocated items.

Location & Commerce develops a range of location-based products and services for consumers, as well as platform services and local commerce services for the Group’s feature phones and smartphones ([96] in support of our strategic goals) as well as ([96] a portfolio of products for the broader Internet ecosystem, including products for our direct competitors) for other device manufacturers, application developers, Internet service providers, merchants, and advertisers. Location & Commerce also continues to serve NAVTEQ’s existing customers both in terms of provision of content and as a business-to-business provider of map data ([56]providing comprehensive digital map information and related location-based content and services for mobile navigation devices, automotive navigation systems, Internet-based mapping applications and government and business solutions). Location & Commerce has profit and loss responsibility and end-to-end accountability for the full consumer experience.

Nokia Siemens Networks provides a portfolio of mobile, fixed and converged network technology, as well as professional services including managed services, consultancy and systems integration, deployment and maintenance to operators and service providers.

[F-71] Nokia Siemens Networks B.V., the ultimate parent of the Nokia Siemens Network group, is owned approximately 50% by each of Nokia and Siemens and consolidated by Nokia. Nokia effectively controls Nokia Siemens Networks as it has the ability to appoint key officers and the majority of the members of its Board of Directors, and accordingly, Nokia consolidated Nokia Siemens Networks.

Business and segment information:

2009 2010 2011
Devices & Services
Net sales (EUR in M) 27853 29134 23943
Operating profit (EUR in M) 3564 3540 884
Gross margin 33.10% 29.90% 27.70%
Operating margin -1% 12.20% 3.70%
Volume (units in M) 431.8 452.9 417.1
ASP (EUR) 64 64 57
Smart Devices
Net sales (EUR in M) 12649 14874 10820
Gross margin 37.20% 30.80% 23.70%
Contribution margin 11.40% 9.30% -3.80%
Volume (units in M) 67.8 103.6 77.3
ASP (EUR) 187 144 140
Mobile Phones
Net sales (EUR in M) 14644 13696 11930
Gross margin 28.50% 28.00% 26.10%
Contribution margin 15.30% 17.00% 12.40%
Volume (units in M) 364 349.2 339.8
ASP (EUR) 40 39 35
Location & Commerce
Net sales (EUR in M) 756 869 1091
Operating profit (EUR in M) -594 -663 -1526
Gross margin 82.70% 80.60% 80.40%
Operating margin -78.60% -76.30% -139.90%
Nokia Siemens Networks
Net sales (EUR in M) 12574 12661 14041
Operating profit (EUR in M) -1639 -686 -300
Gross margin 27.10% 26.80% 27.10%
Operating margin -58% -5.40% -2.10%
Nokia Group
Net sales (EUR in M) 40984 42446 38659
Operating profit (EUR in M) 1197 2070 -1073
Gross margin 32.40% 30.20% 29.30%
Operating margin 2.90% 4.90% -2.80%

The overall market situation and the related Nokia strategies and actions:

Devices & Services:

[87] In 2011, the global mobile device market benefited from continued strength in key growth markets, such as the Middle East and Africa, Greater China and Latin America and, according to our estimate, industry mobile device volumes increased by 11% during the year. Smartphones continued to capture the major part of the volume and value growth, as well as the public focus, in the mobile device market. We estimate that our mobile device volume market share was 26% in 2011, compared to an estimated 32% in 2010, with the decline primarily driven by market share losses in the smartphones segment.

In February 2011, we announced our new strategy for our Devices & Services business, which has three core elements.

First, in smartphones, we announced our partnership with Microsoft, discussed below, to bring together our respective complementary assets and expertise to build a new global mobile ecosystem for smartphones. Under the partnership, formalized in April 2011, we are adopting and licensing Windows Phone from Microsoft as our primary smartphone platform. We launched our first Nokia products with Windows Phone under the Lumia brand in October 2011.

Second, in feature phones, our strategy continues to be to leverage our innovation and strength in growth markets to connect the next billion people to the Internet and information. Through our investments in developing assets designed to bring a modern mobile experience – software, services and applications – we believe we have the opportunity to connect the “next billion” aspirational consumers around the world to the Internet and information, especially in key emerging markets.

Third, we believe we must also invest to take advantage of future technology disruptions and trends. Through ongoing research and development, we plan to explore and lead next-generation opportunities in devices, platforms and user experiences to support our industry position and longerterm financial performance.

The competitive landscape for that is the following:

[60] The mobile device market continues to undergo significant changes, most notably due to the broad convergence of the mobile telecommunications, computing, consumer electronics and Internet industries. With the traditional feature phone market continuing to mature, a major part of volume and value growth in the industry has been in smartphones offering access to the Internet. Additionally, other large handheld Internet-centric computing devices, such as tablets and e-readers, have emerged, trading off pocketability and some portability for larger screen sizes, but in many cases offering both cellular and non-cellular connectivity in the same way conventional mobile devices do. Due to their larger size, such devices are not replacing conventional mobile devices, but are generally purchased as a second device. Nevertheless, larger-screened Internet-enabled devices have captured a significant share of consumer spend across the broader market for mobile products and digital content and in different ways. For example, some competitors seek to offer hardware at a low price to the consumer with the aim of capturing value primarily through the sale of content.

The increasing demand for wireless access to the Internet has had a significant impact on the competitive landscape of the market for mobile products and digital content. Companies with roots in the mobile devices, computing, Internet and other industries are increasingly competing directly with one another, making for an intensely competitive market across all mobile products and services. At the same time, and particularly in the smartphone and tablets segments, success for hardware manufacturers is increasingly shaped by their ability to build, catalyze or be part of a competitive ecosystem, where different industry participants, such as hardware manufacturers, software providers, developers, publishers, entertainment providers, advertisers and e-commerce specialists are forming increasingly large communities of mutually beneficial partnerships in order to bring their offerings to the market. A vibrant ecosystem creates value for consumers, giving them access to a rich and broad range of user experiences. As a result, the competitive landscape is increasingly characterized in terms of a “war of ecosystems” rather than a battle between individual hardware manufacturers or products.

At the heart of the major ecosystems is the operating system and the development platform upon which devices are based and services built. In smartphones, our competitors are pursuing a wide range of strategies. Many device manufacturers are utilizing freely available operating systems, the development of which is not paid for from device sales revenue or software license fees. The availability of Google’s Android platform has made entry into and expansion in the smartphone market easier for a number of hardware manufacturers which have chosen to join Android’s ecosystem, especially at the mid-to-low range of the smartphone market. For example, some competitors’ offerings based on Android are available for purchase by consumers for below EUR 100, excluding taxes and subsidies, and thus address a portion of the market which has been traditionally dominated by feature phone offerings, including those offered by Nokia. Accordingly, lower-priced smartphones are increasingly reducing the addressable market and lowering the price points for feature phones.

In general, we believe product differentiation with Android is more challenging, leading to increased commoditization of these devices and the resulting downward pressure on pricing. In addition, there is uncertainty in relation to the intellectual property rights in the Android ecosystem, which we believe increases the risk of direct and indirect litigation for participants in that ecosystem. Google, HTC, LG, Motorola, Samsung and Sony Ericsson are among competitors which have deployed the Android operating system on their smartphones. Samsung is among our strongest competitors, competing with us across a broad range of price points.

Other companies favor proprietary operating systems, including Apple, whose popular high-end iPhone models use the iOS operating system, and Research in Motion (RIM), which deploys Blackberry OS on its mobile devices. Both Apple and RIM have developed their own application stores, through which users of their products can access applications.

Apple, which has already gained a strong position in the market for high-end smartphones and tablets, has also used the strength of its ecosystem to further expand its offering of digital content through other interfaces such as television sets. Similarly, Google has sought to extend the Android ecosystem with its Google TV Internet-based television service.

Nokia currently offers smartphones based on the Symbian, MeeGo and Windows Phone operating systems, and we are transitioning to using Windows Phone as our primary smartphone platform. Users of Symbian-based Nokia products can access digital content and third-party applications through Nokia Store, while users of our Windows Phone devices can access the Microsoft-run Marketplace for digital content and third-party applications. The Windows Phone operating system is also being deployed on smartphones by others, including HTC and Samsung.

The significant momentum and market share gains of the global ecosystems around the Apple and Android platforms have increased the competitive barriers to additional entrants looking to build a competing global smartphone ecosystem, such as Nokia with the Windows Phone platform. At the same time, other ecosystems are being built which are attracting developers and consumers, and which may result in potential fragmentation among ecosystem participants and the inability of new ecosystems to gain sufficient competitive scale.

We also face intense competition in feature phones where a different type of ecosystem from that of smartphones is emerging involving very low-cost components and manufacturing processes, with speed to market and attractive pricing being critical success factors. In particular, the availability of complete mobile solutions chipsets from low-cost reference design chipset manufacturers has lowered the barriers of market entry and enabled the very rapid and low-cost production of feature phones by numerous manufacturers in China and India, which are gaining significant market share in emerging markets, as well as bringing some locally relevant innovations to market. Such manufacturers have also demonstrated that they have significantly lower gross margin expectations than we do.

We also face competition from vendors of unlicensed and counterfeit products with manufacturing facilities primarily centered around certain locations in Asia and other emerging markets which produce inexpensive devices with sometimes low quality and limited after-sales services that take advantage of commercially-available free software and other free or low-cost components, software and content. In addition, we compete with non-branded feature phone manufacturers, including mobile network operators, which offer mobile devices under their own brand, as well as providers of specific hardware and software layers within products and services at the level of those layers rather than solely at the level of complete products and services and their combinations. In the future, we may face competition from established Internet companies seeking to offer smartphones under their own brand.

Our competitors use a wide range of other strategies and tactics. Certain competitors choose to accept significantly lower profit margins than we are targeting. Certain competitors have chosen to focus on building products and services based on commercially available components and content, in some cases available at very low or no cost. Certain competitors have also benefited from favorable currency exchange rates. Further, certain competitors may benefit from support from the governments of their home countries and other measures which may have protectionist objectives.

Transition:

[88] Year 2011 was a year of transition for Nokia. Prior to the announcement of our partnership with Microsoft in February 2011 and the adoption of Windows Phone as our primary smartphone platform, the Symbian and MeeGo operating systems were our primary smartphone platforms. Following our announcement of the Microsoft partnership, we expected to sell approximately 150 million more Symbian devices in the years to come and to ship one MeeGo device. However, the demand for our Symbian devices began to deteriorate. The consequent decline in our Smart Devices net sales and profitability was a result of both a decline in our Symbian smartphone volume market share and pressure on pricing as competitors aggressively capitalized on our platform and product transition. Towards the end of 2011, the competitiveness of our Symbian devices continued to deteriorate as changing market conditions created increased pressure on Symbian, which further adversely affected our Smart Devices net sales, profitability, market share and brand perception. In certain markets, there has been an acceleration of the trend towards lower-priced smartphones with specifications that are different from Symbian’s traditional strengths, which has contributed to a faster decline in our Symbian volumes than we anticipated. We expect this trend to continue in 2012.

To endeavor to maximize the value of our Symbian asset going forward, we expect to continue to ship Symbian devices to specific regions and distribution channels, as well as to continue to provide software support to our Symbian customers, through 2016. The software support for our Symbian customers was outsourced to Accenture commencing from September 2011. As a result of the changing market conditions, combined with our increased focus on Nokia products with Windows Phone, we believe we will sell fewer Symbian devices than previously anticipated.

Towards the end of 2011, we launched the Nokia Lumia 800 and Nokia Lumia 710, our first smartphones based on the Windows Phone platform. During 2011, we also launched the Nokia N9, which was the outcome of efforts in our MeeGo program. Since the start of 2012, we have continued to bring the Lumia experience to several more geographies, including the United States, where we have launched the Nokia Lumia 900, the first LTE device designed specifically for the North American market, which is available exclusively through AT&T. In late February 2012, we announced our intention to bring the Lumia 900 to markets outside the United States and introduced the Lumia 610, our lowest cost Lumia smartphone to date.

During the first half of 2011, our mobile device market share decline was further negatively affected by weakness in our feature phone portfolio primarily due to a lack of a dual SIM offering. During the second half 2011, however, the competitiveness of our feature phones improved when we introduced several dual SIM devices, as well as the new Nokia Asha range of feature phones, which offers a more smartphone-like user experience. These new additions helped us recapture some market share in the feature phone segment.

Year 2012 is expected to continue to be a year of transition, during which our Devices & Services business will be subject to risks and uncertainties, as our Smart Devices business unit continues to transition from Symbian products to Nokia products with Windows Phone and our Mobile Phones business unit continues to bring more smartphone-like features and design to our feature phone portfolio. Those risks and uncertainties include, among others, continued deterioration in demand for our Symbian devices; the timing, ramp-up and demand for our new products, including our Lumia devices; further pressure on margins as competitors endeavor to capitalize on our platform and product transition; and uncertainty in the macroeconomic environment. Mainly due to these factors, we believe that it is not appropriate to provide annual financial targets for 2012.

Longer-term, we target:
• Devices & Services net sales to grow faster than the market, and
• Devices & Services operating margin to be 10% or more, excluding special items and purchase price accounting related items.

Partnership with Microsoft:

[F-26] In February 2011, Nokia announced a partnership with Microsoft to bring together the respective complementary assets and expertise of both parties to build a new global mobile ecosystem for smartphones. The partnership, under which Nokia is adopting and licensing Windows Phone from Microsoft as its primary smartphone platform, was formalized in April 2011.

The Group is paying Microsoft a software royalty fee to license the Windows Phone smartphone platform, which the Group records as royalty expense in its Smart Devices cost of goods sold. Nokia has a competitive software royalty structure, which includes annual minimum software royalty commitments and reflects the large volumes that the Group expects to ship, as well as a variety of other considerations related to engineering work to which both companies are committed. The Group expects that the adoption of Windows Phone will enable it to reduce significantly its operating expenses.

In recognition of the contributions that the Group is providing, the Group will receive quarterly platform support payments from Microsoft. ([90] In the fourth quarter of 2011, we received the first quarterly payment of USD 250 million (approximately EUR 180 million).) The received platform support payments are recognized over time as a benefit to our Smart Devices costs of goods sold. The total amount of the platform payments is expected to slightly exceed the total amount of the minimum software royalty commitments.

The Microsoft partnership also recognizes the value of intellectual property and puts in place mechanisms for exchanging intellectual property rights.

[89] We are contributing our expertise on hardware, design and language support to the Microsoft partnership, and plan to bring Nokia products with Windows Phone to a broad range of price points, market segments and geographies. We and Microsoft are closely collaborating on joint marketing initiatives and on a shared development roadmap on the future evolution of mobile products. The goal for both partners is that by bringing together our complementary assets in search, maps, locationbased services, e-commerce, social networking, entertainment, unified communications and advertising, we can jointly create an entirely new consumer proposition. We are also collaborating on our developer ecosystem activities to accelerate developer support for the Windows Phone platform on our mobile products. Although Microsoft will continue to license Windows Phones to other mobile manufacturers, the Microsoft partnership allows us to customize the Windows Phone platform with a view to differentiating Nokia smartphones from those of our competitors that also use the Windows Phone platform.

Specific initiatives include the following:

  • Contribution of our mapping, navigation, and certain location-based services to the Windows Phone ecosystem. We aim to build innovation on top of the Windows Phone platform in areas such as imaging, while contributing our expertise on hardware design and language support, to help drive the development of the Windows Phone platform. Microsoft will provide Bing search services across our mobile device portfolio and will contribute its strength in productivity tools, advertising, gaming, social media and a variety of other services. We believe that the combination of navigation with advertising and search services will enable better monetization of our navigation assets and create new forms of advertising revenue.
  • Joint developer outreach and application sourcing to support the creation of new local and global applications, including making Windows Phone developer registration free for all Nokia developers.
  • Planning towards opening a new Nokia-branded global application store that leverages the Windows Marketplace infrastructure. Developers would be able to publish and distribute applications to hundreds of millions of consumers that use Windows Phone, Symbian and Series 40 devices.
  • Contribution of our expertise in operator billing to ensure participants in the Windows Phone ecosystem can take advantage of our billing relationships with 112 operators in 36 markets.

Strategy for the trend: Continued Convergence of the Mobile Communications, Computing, Consumer Electronics and Internet Industries

[90] Value in the mobile handset industry continues to be increasingly driven by the convergence of the mobile communications, computing, consumer electronics and Internet industries. As consumer demand and interest for smartphone and tablets with access to a range of content has accelerated, new opportunities to create and capture value through innovative new service offerings and user experiences have arisen, with a greater emphasis and importance on software and ecosystem-driven innovation, rather than standalone devices. These opportunities seek to capitalize on various elements of ecosystems such as search services, maps, location-based services, e-commerce, social networking, entertainment, communications and advertising. Capturing these opportunities requires capabilities to manage the increased complexity and to provide an integrated user experience where all these various elements interact seamlessly either in one device or across multiple devices and electronic products. We expect these new opportunities to continue to emerge in 2012.

We believe that we are well-positioned with our new strategy and partnership with Microsoft, including our collective goal to build a new global mobile ecosystem for smartphones, to capture a number of these opportunities.

In Mobile Phones, we plan to leverage our innovation and strength in growth markets to connect the next billion people to the Internet and information. We also plan to drive third party innovation through working with our partners to engage in building strong, local ecosystems for our feature phones.

Strategy for the trend: Increasing Importance of Competing on an Ecosystem to Ecosystem Basis

[91] The increasing importance of ecosystems is, to a large degree, driven by the convergence trends mentioned above and the implications for the competencies and business model adjustments required for longer-term success. In the market for smartphones, we have seen significant momentum and emphasis on the creation and evolution of new ecosystems around major software platforms, including Apple’s iOS platform and Google’s Android platform, bringing together devices, software, applications and services. A notable recent development has been the increased affordability of devices based on the Android smartphone platform, which has enabled them to compete with a portion of the market that has traditionally been dominated by feature phone offerings. As Android is available free of charge and a significant part of the source code is available as open source software, entry and expansion in the smartphone market has become easier for a number of hardware manufacturers that have chosen to join Android’s ecosystem. Additionally, the success of an ecosystem and its ability to continue to grow may also depend on the support it lends to different kinds of devices. With multiple products available to suit different needs, such as mobile devices, tablets, computers and televisions, there is demand for greater seamless interaction between these devices. A number of vendors across different ecosystems are pursuing multi-screen strategies to capitalize on these opportunities.

Our partnership with Microsoft brings together complementary assets and competencies with the aim of creating a competitive smartphone ecosystem. We believe that together with Microsoft we will succeed in attracting the necessary elements for the creation of a successful ecosystem and that by extending the price points, market segments and geographies of our Windows Phone smartphones, we will be able to significantly strengthen the scale and attractiveness of that ecosystem to developers, operators and partners.

Strategy for the trend: Increased Pervasiveness of Smartphones and Smartphone-like Experiences Across the Price Spectrum

[91] During the past year, we saw the increasing availability of more affordable smartphones, particularly Android-based smartphones, connected devices and related services which were able to reach lower price points contributing to a decline in the average selling prices of smartphones in our industry.

This trend affects us in two ways.

First, it puts pressure on the price of our smartphones and potentially our profitability, as we need to price our smartphones competitively. We currently partially address this with our Symbian device offering in specific regions and distribution channels, and we plan to introduce and bring to markets new and more affordable Nokia products with Windows Phone in 2012, such as the Nokia Lumia 610 announced in February 2012.

Second, lower-priced smartphones put pressure on our higher-end feature phone offering from our Mobile Phones unit. We are addressing this with our planned introductions in 2012 of smarter, competitively priced feature phones with more modern user experiences, including software, services and application experiences. In support of our Mobile Phones business, we also plan to drive third party innovation through working with our partners to engage in building strong, local ecosystems.

Strategy for the trend: Increasing Challenges of Achieving Sustained Differentiation and Impact on Overall Industry Gross Margin Trends

[91] Although we expect the mobile device industry to continue to deliver attractive revenue growth prospects, we are less optimistic about the gross margin trends going forward. The creation and momentum of new ecosystems, especially from established Internet players with disruptive business models, has enabled handset vendors that do not have substantial software expertise or investment in software development to develop an increasingly broad and affordable range of smartphones and other connected devices that feature a certain user interface, application development and mobile service ecosystems. At the same time, this has significantly reduced the amount of differentiation in the user experience in the eyes of consumers. Our ability to achieve sustained differentiation with our mobile products is a key driver of consumer retention, net sales growth and margins. We believe that as it becomes increasingly difficult for many of our competitors to achieve sustained differentiation, overall industry gross margin trends may be depressed going forward.

Through our partnership with Microsoft and development of the Windows Phone ecosystem, we will focus more of our investments in areas where we believe we can differentiate and less on areas where we cannot, leveraging the assets and competencies of our ecosystem partners. Areas where we believe we can achieve sustained product differentiation and leadership include distinctive design with compelling hardware, leading camera and other sensor experiences and leading location-based products and services. Other ways for us to differentiate our products include using our localization capabilities, global reach, strong brand and marketing. We believe that our first Lumia devices reflect a number of these new and differentiated experiences on Windows Phone. We expect to continue to introduce new and more differentiated products from our Lumia product family in multiple markets throughout 2012.

In the Mobile Phones business, we believe our competitive advantages – including our scale, brand, quality, manufacturing and logistics, strategic sourcing and partnering, distribution, research and development and software platforms and intellectual property – continue to be important to our competitive position. Additionally, we plan to extend our Mobile Phones offerings and capabilities during 2012 in order to bring a modern mobile experience – software, services and applications – to aspirational consumers in key growth markets as part of our strategy to bring the Internet and information to the next billion people. At the same time, we plan to drive third party innovation through working with our partners to engage in building strong, local ecosystems.

Finally, we believe that we must invest in new projects to drive differentiation and take advantage of future technology disruptions and trends. Through ongoing research and development, we plan to explore and lead next-generation opportunities in devices, platforms and user experiences to support our industry position as well as our ability to further differentiate over the longer-term. For example, new web technologies such as those commonly referred to as HTML5 may lead to less operating system-centric ecosystems. It is important to be able to drive such industry developments, which we believe will define the future of our industry.

Strategy for the trend: Emergence of New Business Models

[92] We believe that the traditional industry monetization model – capturing the value of the overall experience through the sale of a mobile device – will continue to dominate in the near to medium term. However, we are also seeing the emergence of new indirect monetization models where the value is captured through indirect sources of revenue such as advertising revenue through applications rather than the actual sale of a device. These indirect monetization models could become more prominent in our industry in the longer-term. Accordingly, we believe that developing a range of indirect monetization opportunities, such as advertising-based business models, will be part of successful ecosystems over the coming years. Obtaining and analyzing a complex array of customer feedback, information on consumer usage patterns and other personal and consumer data over the largest possible user-base is essential in gaining greater consumer understanding. We believe this understanding is a key element in developing new monetization opportunities and generating new sources of revenue, as well as in facilitating future innovations, including the delivery of new and more relevant user experiences ahead of the competition.

The exploration of new revenue streams is a key element of our partnership with Microsoft. We are jointly developing new services with Microsoft to drive innovation and new sources of revenue from our ecosystem. We believe that our ability to understand the specific needs of different geographic markets and consumer segments and to localize services and applications appropriately will be a key competitive differentiator. To support this, in the coming years we plan to invest in local advertising platforms to further enhance and enrich our localized offerings. Supported by our scale, we believe that we have the opportunity to deliver more compelling and relevant local services and to build new monetization models for Nokia and the Windows Phone ecosystem.

Strategy for the trends in: Supply Chain, Distribution and Operator Relationships

[93] The industry in which we operate is one of the fastest growing and most innovative, with a broad range of industry participants contributing product and technological innovations. In particular, the role of component suppliers has grown in importance. At the same time, much of the value creation for consumers has shifted from hardware to software. Nevertheless, we believe that there continues to be substantial room to innovate in hardware. From that perspective and in order to deliver market-leading innovations and sustainable differentiation through hardware, it is critical to have good relationships with high quality suppliers. With good supplier relationships, allied with the strength of our world-class manufacturing and logistics system, we believe we are well-positioned to deliver high-quality hardware as well as to respond quickly to customer and consumer demand.

Amid rapid change in the industry, we have also seen new sourcing models emerge. Especially in smartphones, our competitors have shifted from traditional multi-sourcing strategies where you have multiple suppliers for each component, to more focused sourcing strategies where they integrate key strategic suppliers closer to their operations as well as use advance cash payments to secure supply for several quarters in advance in order to have more unique and differentiated components as well as more predictability in their sourcing. This means that we also need to look for new and more innovative ways of sourcing key components, particularly in our Smart Devices business.

Our own manufacturing network continues to be a valuable asset, especially in our high-volume Mobile Phones business. We realized, however, that we need to adjust our manufacturing to meet the lower overall demand for our products and increase our speed to market for our mobile products. In 2011 and in February 2012, we announced our plans to adjust our manufacturing capacity and renew our manufacturing strategy to focus product assembly primarily in Asia to better reflect how our global networks of customers, partners and suppliers have evolved. The changes included the closure of our manufacturing facility in Cluj, Romania at the end of 2011. We also announced planned changes at our facilities in Komárom, Hungary, Reynosa, Mexico and Salo, Finland. These three facilities are planned to focus on smartphone product and sales package customization, serving customers mainly in Europe and the Americas, while our smartphone assembly operations will be transferred to our facilities in AsiaBeijing, China and Masan, South Korea – where the majority of our component suppliers are based. With these adjustments to our manufacturing network, we are aiming to continue to generate meaningful benefits relative to our competitors.

As in any global consumer business, distribution continues to be an important asset in the mobile device industry. We believe the breadth of our global distribution network is one of our key competitive advantages. We have the industry’s largest distribution network with more than 850,000 points of sale globally. Compared to our competitors, we have a substantially larger distribution and care network, particularly in China, India and the Middle East and Africa.

During 2011, the importance of operator-driven distribution increased. Whereas in the past operators dominated distribution only in the large western markets in Europe and the United States, they have recently been growing their share of distribution in large growth markets such as China, a traditionally strong market for us. We have been historically more successful where our mobile products are sold to consumers in open distribution through non-operator parties. It is therefore increasingly important to not only have a large number of points of sale globally, but also to have good relationships with key operators in each region.

Strategically, we want to be the preferred ecosystem partner for operators. By creating a new global mobile ecosystem with Microsoft and focusing on driving operator data plan adoption in lower price points with our feature phone offering, we believe we will be able to create a greater balance for operators and provide attractive opportunities to share the economic benefits from services and applications sales compared to other competing ecosystems, thereby improving our long-standing relationships with operators around the world.

Strategy for the trends related to: Speed of Innovation, Product Development and Execution

[94] As the mobile communications industry continues to undergo significant changes, we believe that speed of innovation and product development are important drivers of competitive strength. For example, a number of our competitors have been able to successfully leverage their software expertise to continuously bring innovations to market at a pace faster than typical hardware cycles. This has placed increasing pressure on all industry participants to continue to shorten product creation cycles and to execute in a timely, effective and consistent manner.

In February 2011, we announced our new strategy, including changes to our operational structure, company leadership, decision-making, ways of working and competencies designed to accelerate our speed of execution in an intensely competitive environment. The changes to our ways of working fall into six categories:

  • globally accountable business units;
  • a revised services mission;
  • local empowerment;
  • simplified decision-making;
  • a performance-based culture with consistent behavior; and
  • a new leadership structure with new leadership principles.

We believe under the new operational structure and with these new ways of working we can deliver noticeable improvements to our speed of innovation, product development and execution of both our Smart Devices and Mobile Phones business units.

Strategy for the trends related to: More Active Licensing Strategies of Patents and Intellectual Property

[94] Success in our industry requires significant research and development investments, with intellectual property rights filed to protect those investments and related inventions. In recent years, we have seen new entrants in the industry as new ecosystems have lowered the barriers to entry. In 2011, we saw intensified and more active licensing and enforcement strategies of patents and intellectual property emerge through a series of legal disputes between several industry participants as patent holders sought to protect their intellectual property against infringements by new entrants. It is not only traditional industry participants that have sought to safeguard their intellectual property; non-manufacturing patent licensing entities owning relevant technology patents have also actively been enforcing their patents against new entrants. These companies’ sole business model is to buy patents from the innovators and to maximize the value from those patents. As a result, the industry’s focus on patents and intellectual property has increased significantly and patent portfolios have become increasingly valuable for industry participants. Increased activity has also created lucrative opportunities to monetize patents by selling them to others. We expect this trend to continue in 2012. We believe we are well-positioned to both protect our existing business as well as generate incremental value to our shareholders through our industry-leading patent portfolio.

We are a world leader in the development of mobile devices and mobile communications technologies, which is also demonstrated by our strong patent position. During the last two decades, we have invested more than EUR 45 billion in research and development and built one of the mobile device industry’s strongest and broadest intellectual property right portfolios, with over 10 000 patent families. In 2011, we continued to work hard to enforce our patents against unlawful infringement and realize the value of our intellectual property. Our 2011 initiatives included, among other things, the signing of a patent license agreement with Apple, which we expect will have a positive financial impact on our future business, as well as capitalizing on strong market conditions by divesting several hundred patent families in a series of transactions to non-manufacturing patent licensing entities. Despite such divestments, we have maintained the strength and size of our patent portfolio on a stable level of approximately 10 000 patent families.

Strategy for the trends related to: Uncertain Global Macroeconomic Environment

We are currently experiencing a time of great global macroeconomic uncertainty. This uncertainty can cause unprecedented and dramatic shifts in consumer behavior, which can have significant effects on the mobile device industry. These effects could include, for example, consumers reducing the amount they are willing to spend on mobile products, which would negatively affect industry average selling prices, or consumers postponing purchases of new products, which would negatively affect device replacement cycles. These types of shifts in consumer behavior could potentially have a material adverse effect on our net sales and profitability in 2012.

While negative to the industry overall, we believe that the impact of any dramatic shifts in consumer behavior could be mitigated to a certain extent by our global distribution network, geographically well diversified supply-chain, relatively fragmented customer space and the breadth of our offering, which covers a wide range of price points. Furthermore, during our ongoing transition to Windows Phone as our primary smartphone platform our financial position has continued to be relatively strong. We continuously monitor the strength of our financial position and assess its adequacy in different net sales and profitability scenarios.

Additionally, we have identified and implemented certain precautionary measures designed to limit the possible immediate direct negative consequences resulting from the potential deterioration of the economic situation within the eurozone.

Restructuring in accordance with all that:

[F-64] In April 2011, Nokia announced plans to reduce its global workforce by about 4 000 employees by the end of 2012, as well as plans to consolidate the company’s research and product development sites so that each site has a clear role and mission. In September 2011, Nokia announced plans to take further actions to align its workforce and operations, which includes reductions in Sales and Marketing and Corporate functions in line with Nokia’s earlier announcement in April 2011. The measures also include the closure of Nokia’s manufacturing facility in Cluj, Romania, which – together with adjustments to supply chain operations – has affected approximately 2 200 employees. As a result, Devices & Services recognized a restructuring provision of EUR 456 million in total.

In 2010, Devices & Services recognized restructuring provisions of EUR 85 million mainly related to changes in Symbian Smartphones and Services organizations as well as certain corporate functions that were expected to result in a reduction of up to 1 800 employees globally.

[96] The factors and trends discussed above influence our net sales and gross profit potential. In addition, operational efficiency and cost control are important factors affecting our profitability and competitiveness. We continuously assess our cost structure and prioritize our investments. Our objective remains to maintain our strong capital structure, focus on profitability and cash flow and invest appropriately to innovate and grow in key strategic areas.

We expect that the adoption of Windows Phone as our primary smartphone platform will enable us to reduce significantly our operating expenses. For example, the Microsoft partnership allows us to eliminate certain research and development investments, particularly in operating systems and services, which we expect will result in lower overall research and development expenditures over the longer-term in our Devices & Services business.

We announced in 2011 that we are targeting to reduce our Devices & Services operating expenses by more than EUR 1 billion for the full year 2013, compared to the Devices & Services operating expenses of EUR 5.35 billion for the full year 2010, excluding special items and purchase price accounting related items.

We have announced a number of planned changes to our operations during 2011 and 2012 in connection with the implementation of our new strategy in our Devices & Services business and the creation of our new Location & Commerce business. The planned changes include substantial personnel reductions, site and facility closures and reconfiguration of certain facilities.

Initially, we announced that we are focusing our restructuring work primarily on the research and development teams to ensure that we correctly allocate resources for the new strategy at appropriate cost levels. In addition, we agreed to outsource our Symbian software development and support activities to Accenture, which resulted in the transfer of approximately 2 300 employees to Accenture.

We later announced that we are accelerating structural change in other parts of the organization in order to ensure that we are responsive to the changing dynamics in our industry. This phase includes the alignment of our markets organization and other supporting functions. For sales, this includes a move to simplify our model based around four regions, twenty areas and additional local offices that serve individual countries or territories.

We also announced plans to adjust our manufacturing capacity and renew our manufacturing strategy to reflect how our global networks of customers, partners and suppliers have evolved, including the closure of our facility in Cluj, Romania, the review of our manufacturing operations in Komárom, Hungary, Reynosa, Mexico and Salo, Finland and the transfer of smartphone assembly operations to Beijing, China and Masan, South Korea.

With respect to combining NAVTEQ and our Devices & Services social location services operations to form our Location & Commerce business, we announced a plan to capture potential synergies and opportunities to increase effectiveness through automation. The planned changes in the Location & Commerce business are estimated to affect approximately 1 300 employees.

Since we outlined our new strategy, we have announced total planned employee reductions of approximately 11 500 employees, as well as the transfer of approximately 2 300 employees to Accenture as noted above.

The planned measures support the execution of our strategy and are expected to bring efficiencies and speed to the organization. In line with our values, we are offering employees affected by the planned reductions a comprehensive support program. We remain committed to supporting employees and the local communities through this difficult change.

As of December 31, 2011, we had recognized cumulative net charges in Devices & Services of EUR 797 million related to restructuring activities in 2011, which included restructuring charges and associated impairments. While the total extent of the restructuring activities is still to be determined, we currently anticipate cumulative charges in Devices & Services of around EUR 900 million before the end of 2012. We also believe total cash outflows related to our Devices & Services restructuring activities will be below the level of the cumulative charges related to these restructuring activities.

In the past, our cost structure has benefited from the cost of components eroding more rapidly than the price of our mobile products. Recently, however, component cost erosion has been generally slowing, a trend that adversely affected our profitability in 2010 and 2011, and may do so in the future.

The currency volatility of the Japanese yen and United States dollar against the euro continued to put pressure on our costs in 2011. During 2011, we were able to manage the currency volatility driven cost pressure with an appropriate level of hedging and by managing our sourcing towards more favorable currencies. Our currency exposure profiles have not changed significantly and continued currency volatility of the Japanese yen and US dollar against the euro may negatively affect us in the future.

Location & Commerce:

[97] Our Location & Commerce business aims to positively differentiate its digital map data and location-based offerings from those of our competitors and create competitive business models for our customers.

In the fourth quarter 2011, we conducted our annual impairment testing to assess if events or changes in circumstances indicated that the carrying amount of our goodwill may not be recoverable. As a result, we recorded a charge to operating profit of EUR 1.1 billion for the impairment of goodwill in our Location & Commerce business. The impairment charge was the result of an evaluation of the projected financial performance of our Location & Commerce business. This took into consideration the market dynamics in digital map data and related location-based content markets, including our estimate of the market moving long-term from fee-based towards advertising-based models especially in some more mature markets. It also reflected recently announced results and related competitive factors in the local search and advertising market resulting in lower estimated growth prospects from our location-based assets integrated with different advertising platforms. After consideration of all relevant factors, we reduced the net sales projections for Location & Commerce which, in turn, reduced projected profitability and cash flows.

Location & Commerce’s resources are primarily focused on the development of:

(i) content, which involves the mapping of the physical world and places such as roads and points of interest, as well as the collection of activity data generated and authorized for use by our users;

(ii) the platform, which adds functionality on top of the content and includes the development tools for us and others to create on top of it; and

(iii) applications built on the content and platform.

Our Devices & Services business is a key customer of Location & Commerce. Devices & Services purchases map and application licenses from Location & Commerce for its Nokia Maps service sold in combination with GPS enabled smartphones.

Competition:

[61] With respect to digital map data and related location-based content, several global and local companies, as well as governmental and quasi-governmental agencies, are making more map data with improving coverage and content, and high quality, available free of charge or at lower prices. For example, our Location & Commerce business competes with Google which uses an advertising-based model allowing consumers to use its map data and related services in their products free of charge. Google has continued to leverage Google Maps as a differentiator for Android, bringing certain new features and functionality to that platform. Apple has also sought to strengthen its location assets and capabilities through targeted acquisitions and organic growth.

Location & Commerce also competes with companies such as TomTom, which licenses its map data and where competition is focused on the quality of the map data and pricing, and Open Street Map, which is a community-generated open source map available to users free of charge. Aerial, satellite and other location-based imagery is also becoming increasingly available and competitors are offering location-based products and services with the map data to both business customers and consumers in order to differentiate their offerings.

Strategy for the trend: Location-Based Products and Services Proliferation

[97] A substantial majority of Location & Commerce net sales in 2011 came from the licensing of digital map data and related location-based content and services for use in mobile devices, in-vehicle navigation systems, Internet applications, geographical information system applications and other location-based products and services. Location & Commerce’s success depends upon the rate at which consumers and businesses use location-based products and services. In recent years, there has been a strong increase in the availability of such products and services, particularly in mobile devices and online application stores for such devices. Furthermore, as the use of the Internet through mobile devices has been growing rapidly, the anchor of the Internet is moving from the desktops to mobiles. This shift is making location-based content a key element of most Internet experiences. We expect this trend to continue, but we also expect that the level of quality required for these products and services and the ability to charge license fees for the use of map data incorporated into such products and services may vary significantly. By combining our NAVTEQ business with our Devices & Services social location services operations, we believe our Location & Commerce business will be better positioned to capture emerging business opportunities with a broader offering which is no longer limited to digital map data.

Strategy for the trend: Increasing Importance of Creating an Ecosystem around Location-Based Services Offering

[97] Creating a winning ecosystem around our Location & Commerce’s services offering will be critical for the success of this business. The longer-term success of the Location & Commerce business will be determined by our ability to attract strategic partners and developers to support our ecosystem. Location & Commerce is aiming to support its ecosystem by enabling strategic partners and independent developers to foster innovation on top of their location platform. We believe that making it possible for other vendors to innovate on top of Location & Commerce’s high quality location-based assets will further strengthen the overall experience and make our offering stronger and more attractive.

Strategy for the trend: Emergence of the Intelligent Sensor Network

[98] Mobile Internet devices are increasingly being enabled with a rich set of sensors such as a GPS, a camera and an accelerometer which enable interaction with the real world. This interaction also enables the collection of large volumes of rich data which, when combined with analytics, enable the development of increasingly sophisticated, contextually-aware devices and services. We believe the combination of NAVTEQ with our Devices & Services social location services operations will enable Location & Commerce to participate in this industry development and seize new opportunities to deliver new experiences that bridge the virtual with the real world.

Strategy for the trend: Price Pressure for Navigable Map Data Increasing

[98] Location & Commerce’s net sales are also affected by the highly competitive pricing environment. Google is offering turn-by-turn navigation in many countries to its business customers and consumers on certain mobile handsets at no charge to the consumer. While we expect these offerings will increase the adoption of location-based services in the mobile handset industry, we also expect they may lead to additional price pressure from Location & Commerce’s business customers, including handset manufacturers, navigation application developers, wireless carriers and personal navigation device (“PND”) manufacturers, which are seeking ways to offer lower-cost or free turn-by-turn navigation to consumers. Turn-by-turn navigation solutions that are free to consumers on mobile devices may also put pressure on automotive OEMs and automotive navigation system manufacturers to have lower cost navigation alternatives. This price pressure is expected to result in an increased focus on advertising revenue as a way to supplement or replace license fees for map data.

In response to the pricing pressure, Location & Commerce focuses on offering a digital map database with superior quality, detail and coverage; providing value-added services to its customers such as distribution and technical services; enhancing and extending its product offering by adding additional content to its map database, such as 3D landmarks; and providing business customers with alternative business models that are less onerous to the business customer than those provided by competitors. Location & Commerce’s future results will also depend on Location & Commerce’s ability to adapt its business models to generate increasing amounts of advertising revenues from its map and other location-based content.

We believe that Location & Commerce’s PND customers will continue to face competitive pressure from smartphones and other mobile devices that now offer navigation, but that PNDs continue to offer a viable option for consumers based on the functionality, user interface, quality and overall ease of use.

Strategy for the trend: Quality and Richness of Location-Based Content and Services Will Continue to Increase

[98] Location & Commerce’s profitability is also driven by Location & Commerce’s expenses related to the development of its database and expansion. Location & Commerce’s development costs are comprised primarily of the purchase and licensing of source maps, employee compensation and thirdparty fees related to the construction, maintenance and delivery of its database.

In order to remain competitive and notwithstanding the price pressure discussed above, Location & Commerce will need to continue to expand the geographic scope of its map data, maintain the quality of its existing map data and add an increasing amount of new location-based content and services, as well as using innovative ways like crowd sourcing to collect data. The trends for such location-based content and services include real-time updates to location information, more dynamic information, such as traffic, weather, events and parking availability, and imagery consistent with the real world. We expect that these requirements will cause Location & Commerce’s map development expenses to continue to grow, although a number of productivity initiatives are underway designed to improve the efficiency of our database collection processing and delivery. In addition, we will need to continue making investments in this fast paced and innovative location-based content and services industry, for instance through research and development, licensing arrangements, acquiring businesses and technologies, recruiting specialized expertise and partnering with third parties.

Restructuring in accordance with all that:

[F-64] In September 2011, Nokia announced a plan to concentrate the development efforts of the Location & Commerce business in Berlin, Germany and Boston and Chicago in the U.S., and other supporting sites and plans to close its operations in Bonn, Germany and Malvern, U.S. As a result, Location & Commerce recognized a restructuring provision of EUR 25 million.

Nokia Siemens Networks:

[99] Nokia Siemens Networks’ has a broad portfolio of products and services designed to address evolving needs of network operators from GSM to LTE wireless standards, a base of over 600 customers in over 150 countries serving over 2.5 billion subscribers and one of the largest services organizations in the telecommunications infrastructure industry. The company’s global customer base includes network operators such as Bharti Airtel, China Mobile, Deutsche Telekom, France Telecom, Softbank, Telefonica O2, Verizon and Vodafone.

Geographical diversity provides Nokia Siemens Networks with opportunities in both emerging markets, which may experience rapid growth, and developed markets where it believes its technologically advanced products and services portfolio provides a competitive advantage, while the geographic diversity of its customer base reduces exposure to fluctuating economic conditions in individual markets.

Nokia Siemens Networks’ net sales depend on various developments in the global telecommunications infrastructure and related services market, such as network operator investments, the pricing environment and product mix. In developed markets, operator investments are primarily driven by capacity and coverage upgrades, which, in turn, are driven by greater usage of the networks primarily through the rapid growth in data usage. Those operators are targeting investments in technology and services that allow them to provide end users with fast and faultless network performance in the most efficient manner possible, allowing them to optimize their investment. Such developments are facilitated by the evolution of network technologies that promote greater efficiency and flexibility.

In addition, those operators are increasingly investing in software and services that provide them with the means to better manage end users on their network, and also allow them additional access to the value of the large amounts of subscriber data under their control. In emerging markets, the principal factors influencing operator investments are the continued growth in customer demand for telecommunications services, including data, as well as new subscriber growth. In many emerging markets, this continues to drive growth in network coverage and capacity requirements.

The telecommunications infrastructure market is characterized by intense competition and price erosion caused in part by the entry into the market of vendors from China, Huawei and ZTE, which have gained market share by leveraging their low cost advantage in tenders for customer contracts. In recent years, the technological capabilities of those vendors, particularly Huawei, has improved significantly, resulting in competition not only on price but also on quality.

The pricing environment remained intense in 2011. In particular, the wave of network modernization that has taken place, particularly in Europe but increasingly in other regions including Asia Pacific, has experienced some aggressive pricing as all vendors fight for market share.

Nokia Siemens Networks’ net sales are impacted by those pricing developments, which show some regional variation, and in particular by the balance between sales in developed and emerging markets. While price erosion is evident across most geographical markets, it continues to be particularly intense in a number of emerging markets where many operator customers have been subject to financial pressure, both through lack of availability of financing facilities during 2011 as well as profound pricing pressure in their domestic markets.

Pricing pressure is evident in the traditional products markets, in particular, where competitors may have products with similar technological capabilities, leading to commoditization in some areas. Nokia Siemens Networks’ ability to compete in those markets is determined by its ability to remain price competitive with its industry peers and it is therefore important for Nokia Siemens Networks to continue to reduce product costs to keep pace with price attrition. Nokia Siemens Networks continued to make progress in reducing product and procurement costs in 2011, and will need to continue to do so in order to provide its customers with high-quality products at competitive prices. There is currently less pricing sensitivity in the managed services market, where vendor selections are often largely determined by the level of trust and demonstrated capability in the field.

In November 2011, Nokia Siemens Networks articulated its regional strategy, identifying three markets, Japan, Korea and the United States, as its priority countries where it will target growth. The Middle East and Africa, where political, financial and competitive pressures have led to particular weakness in 2011, will be the focus of turnaround efforts. In the remaining regions, Latin America, China, Asia-Pacific, Canada and Europe, Nokia Siemens Networks goal will be to defend market share and find areas for future profitable growth.

Over recent years, the telecommunications infrastructure industry has entered a more mature phase characterized by the completion of the greenfield roll-outs of mobile and fixed network infrastructure across many markets, although this is further advanced in developed markets. Despite this, there is still a significant market for traditional network infrastructure products to meet coverage and capacity requirements, even as older technologies such as 2G are supplanted by 3G and LTE. As growth in traditional network products sales slows, there is an emphasis on the provision of network upgrades, often through software, as well as applications, such as billing, charging and subscriber management, and services, particularly the outsourcing of non-core activities to companies

The competitive landscape for that is the following:

[70] Conditions in the market for mobile and fixed network infrastructure and related services improved, but remained challenging and intensely competitive in 2011. The market continued to be characterized by mixed trends as growth in mobile broadband and services was offset by equipment price erosion, a maturing of legacy industry technology and intense price competition.

Industry participants have changed significantly in recent years. Substantial industry consolidation occurred in 2007 with the emergence of three major European vendors: Alcatel-Lucent, Ericsson and Nokia Siemens Networks. The break-up of Nortel occurred in 2009 when it entered bankruptcy protection and many parts of the business were sold, including the wireless carrier unit, Metro Ethernet Networks, and its GSM business. In January 2011, Motorola Solutions completed its separation from Motorola Mobility Holdings Inc. In April 2011, Nokia Siemens Networks acquired the majority of Motorola Solutions’ wireless network infrastructure assets.

During 2011, the competitive environment in the telecommunications infrastructure market was characterized by continued overall growth in global network operators’ capital expenditures in Euro terms, mainly attributable to the Japanese, Chinese, APAC, North East Europe and Latin American markets. Growth in capital expenditures declined in the Middle East and remained relatively unchanged in the European and North American markets in Euro terms in 2011. Increased smart phone usage drove increased investments in the United States and European wireless markets. The vendors from China, Huawei and ZTE, continued to grow their market share but at a slower pace than in previous years and continued to challenge Alcatel-Lucent, Ericsson and Nokia Siemens Networks. Nokia Siemens Networks’ ability to compete with low-cost vendors primarily depends on its ability to be price competitive and, in certain circumstances, its ability to provide or facilitate vendor financing. In recent years, the technological capabilities of the Chinese vendors, particularly Huawei, has improved significantly, resulting in competition not only on price but also on quality. In addition to the major infrastructure providers, Nokia Siemens Networks also competes with Cisco and NEC.

In the Networks Systems business, the decline of 2G (GSM, CDMA) continued in 2011, whereas investments in 3G continued and increased worldwide. Also, fourth generation (4G) LTE trials and pilots continued strongly as operators continued to merge towards next generation LTE and all-IP networks. Within the LTE segment, leading vendors are competing based on factors including technology innovation, network typology and less complex network architectures as well as integration towards all-IP networks.

Growth in wireline and wireless broadband services sped up optical and wireless network upgrades in developed markets. In addition, the related investment in mobile backhaul networks continued to increase due to data traffic increases in the operator networks.

In services, which remained the fastest growing part of the industry, competition is generally based on a vendor’s ability to identify and solve customer problems rather than their ability to supply equipment at a competitive price. Competition in services is from both traditional vendors such as Alcatel-Lucent, Ericsson and Huawei, as well as non-traditional telecommunications entities and system integrators, such as Accenture and IBM. In addition to these companies, there are also local service companies competing, which have a narrower scope in terms of served regions and business areas.

Nokia Siemens Networks’ Business Solutions business unit assists network operators in transforming their business, processes and systems to enhance the customer experience, drive new revenue and improve operational efficiency to enable them to successfully address the challenges and opportunities of mobile broadband, smartphones, tablet computers, multi-play offerings, service innovation and new growth areas. In this area, Nokia Siemens Networks faces competition also from information technology and software businesses like Accenture, Amdocs, HP, IBM and Oracle, which are active in areas such as the service delivery platform market and business insight and analysis services.

Certain competitors may receive governmental support allowing them to offer products and services at substantially lower prices. Further, in many regions restricted access to capital has caused network operators to reduce capital expenditure and has produced a stronger demand for vendor financing. Certain of Nokia Siemens Networks’ competitors may have stronger customer financing possibilities due to internal policies or government support. While the amount of financing Nokia Siemens Networks provided directly to its customers in 2011 remained at approximately the same level as in 2010, as a strategic market requirement it plans to offer this financing option only to a limited number of customers and primarily to arrange and facilitate such financing with the support of export credit or guarantee agencies.

Strategy for the trends in: Mobility and Data Usage

[100] Over recent years the two most evident trends in the telecommunications market – the rise in use of  mobile services and the exponential increase in data traffic – have converged. One result is that services once regarded as available primarily, if not exclusively, through fixed or wireline network are increasingly in demand from wireless networks also.

Alongside traditional voice and data services, such as text messaging, end-users access a wealth of media services through communications networks, including email and other business data; entertainment services, including games and music; visual media, including high definition films and television programming; and social media sites. End-users increasingly expect that such services are available to them everywhere, through both mobile and fixed networks, and a wealth of new devices, optimized to allow them to do so, have become available including tablet computers, highly sophisticated multimedia smartphones, mobile broadband data dongles, set-top boxes and mobile and fixed line telephones.

The widespread availability of devices has been matched by a proliferation of products and services in the market that both meet and feed end-user demand. These continue to drive dramatic increases in data traffic and signaling through both mobile access and transport networks that carry the potential to cause network congestion and complexity. During 2011, this increase continued to gain momentum as more users moved towards smartphones and tablets and even more devices that require constant connectivity were introduced to the market.

While the growth in traffic is clear, it has not been met by corresponding growth in operators’ revenues from data traffic, where growth appears to be slowing. This presents operators with a challenge: to cope with the growing traffic load within networks, it is fundamental that operators continue to invest in their networks, but within the financial constraints that their current business models dictate.

This means that while the addition of capacity, speed and coverage is crucial, it is critical that networks are built efficiently and effectively in a manner that optimizes capital investment and delivers networks with architecture sufficiently flexible to cope with evolving requirements.

During 2011, Nokia Siemens Networks recognized the centrality of mobile networks to the future development of telecommunications and announced that it would place mobile broadband at the heart of its strategy, articulating an ambition to provide the world’s most efficient mobile networks, the intelligence to maximize the value of those networks and the services capability to make all elements work together seamlessly. Nokia Siemens Networks said it expected to increase investment in mobile broadband.

Also during 2011, Nokia Siemens Networks launched the network architecture designed to equip operators to meet the challenges they are facing. “Liquid Net” architecture provides flexibility across networks to adapt to changing customer needs instantly, using existing resources more efficiently. This optimizes capital investment and allows operators to seek new revenue opportunities. Liquid Net uses automated, self-adapting broadband optimization to remain constantly aware of the network’s operational status, as well as the services and content being consumed, to ensure the best user experience. Liquid Net consists of three areas: Liquid Radio, Liquid Core and Liquid Transport.

Strategy for the trends in: Managed Services and Outsourcing

[101] There has been an acceleration in the development of the managed services market as operators increasingly look to outsource network management to infrastructure vendors. The primary driver for this trend is that managed services providers are able to offer economies of scale in network management that allow the vendor to manage such contracts profitably while operators can reduce the cost of network management. The outsourcing trend is also underpinned by many operators taking the view that network management is no longer either a core competence or requirement of their business and are increasingly confident they can find greater expertise by outsourcing this activity to a trusted partner that can also improve quality and reliability in the network.

Nokia Siemens Networks believes that this trend will continue and that it could in future be driven by financial imperatives of its customers facing slowing revenue growth but a continuing requirement for capital investment in their networks, a dynamic that has the potential to threaten their profitability levels. This results in some operators aiming to control their operating expenditure. In those circumstances, the outsourcing of the management of their network to infrastructure vendors, such as Nokia Siemens Networks, can be an attractive option.

In emerging markets, such as Africa and India, price pressure and competition in the end-user market has increased the financial pressure on many operators, which in turn has resulted in a similar trend as operators have looked to control and cut costs through outsourcing network management.

The trend towards network management outsourcing is evident in every region of the world and has intensified. Nokia Siemens Networks believes that this trend generates its own momentum in the market as vendors can increasingly demonstrate their capabilities with reference accounts and operators are exposed to their competitors taking steps that can enhance profitability and improve network quality and reliability.

In the announcement of its new strategy in November 2011, Nokia Siemens Networks reaffirmed its commitment to services, and will continue to aim to support mobile operators with high end services and will seek to maximize the potential of its global delivery model, with its global network solution centers in Portugal and India which offer the benefits of scale and efficiencies both to Nokia Siemens Networks and its customers.

Strategy for the trends in: Customer Experience Management

As operators in many markets see the growth of net new subscribers slowing or even stopping, they are increasingly focused on leveraging the value of the subscribers they have. As the acquisition of new subscribers to networks in such markets can be both difficult and expensive, customers look to limit “churn”, where end users transfer to a rival service provider, as well as to increase the revenue derived from each user through the addition of value-added services, such as access to media and entertainment and social networking services. This often requires that operators invest in software and solutions that allow customers to enjoy an improved experience. One of the key foundations for this improved end-user experience is understanding an end user’s behavior and preferences, which in turn allows the operator to tailor service offerings to the individual consumer. This not only includes services and applications, but also bespoke billing platforms and identity management solutions.

Nokia Siemens Networks continues to develop and enhance its offerings in this area, and in November 2011 announced that its Customer Experience Management unit would be a lead business area in its new strategy. Nokia Siemens Networks believes it has the industry’s leading subscriber database management platform, complemented by flexible billing and charging platforms and other software and solutions that provide its customers with the tools, flexibility and agility required to respond to a rapidly changing end-user market. Nokia Siemens Networks also provides business process and consulting services that help to lead its customers through business transformation opportunities.

Strategy related to: Motorola Solutions Acquisition

[102] In April 2011, Nokia Siemens Networks acquired the majority of the wireless network infrastructure assets of Motorola Solutions for a total consideration of EUR 642 million. The acquisition increased Nokia Siemens Networks’ global presence and expanded its position and product offerings in key markets. See Item 4B. “Business Overview – Nokia Siemens Networks – Motorola Solutions Acquisition.”

Trasition to a: New Strategy and [the corresponding] Restructuring Program

[103] Nokia Siemens Networks’ focus is on becoming the strongest, most innovative and highest quality mobile broadband and services business in the world. Rather than targeting the full spectrum of telecommunications equipment and services, Nokia Siemens Networks is the first of the telecommunications companies to refocus on providing the most efficient mobile networks, the intelligence that maximizes the value of those networks and the services that make it all work seamlessly.

In November 2011, Nokia Siemens Networks announced a new strategy, including changes to its organizational structure and an extensive restructuring program, aimed at maintaining and developing Nokia Siemens Networks, position as one of the leaders in mobile broadband and services and improving its competitiveness and profitability. Nokia Siemens Networks expects substantial charges related to this restructuring program in 2012. See Item 4B. “Business Overview—Nokia Siemens Networks—New Strategy and Restructuring Program” for a description of the main elements of the new strategy.

Year 2012 will be a year of transition for Nokia Siemens Networks as it implements its new strategy and restructuring program. Accordingly, Nokia and Nokia Siemens Networks believe it is currently not appropriate to provide annual targets for Nokia Siemens Networks for 2012. Additionally, the macroeconomic environment is making it increasingly difficult to estimate the outlook for 2012.

Longer-term, Nokia and Nokia Siemens Networks target Nokia Siemens Networks’ operating margin to be between 5% and 10%, excluding special items and purchase price accounting related items.

Nokia Siemens Networks targets to reduce its annualized operating expenses and production overheads, excluding special items and purchase price accounting related items, by EUR 1 billion by the end of 2013, compared to the end of 2011. While these savings are expected to come largely from organizational streamlining, the company will also target areas such as real estate, information technology, product and service procurement costs, overall general and administrative expenses and a significant reduction of suppliers in order to further lower costs and improve quality.

Nokia Siemens Networks plans to reduce its global workforce by approximately 17 000 by the end of 2013. These planned reductions are designed to align the company’s workforce with its new strategy as part of a range of productivity and efficiency measures. These planned measures are expected to include elimination of the company’s matrix organizational structure, site consolidation, transfer of activities to global delivery centers, consolidation of certain central functions, cost synergies from the integration of Motorola’s wireless assets, efficiencies in service operations and company-wide process simplification.

Nokia Siemens Networks has begun the process of engaging with employee representatives in accordance with country-specific legal requirements to find socially responsible means to address these reduction needs. Nokia Siemens Networks will continue to share information in affected countries as the process proceeds. In order to reduce the impact of the planned reductions, Nokia Siemens Networks intends to launch locally led programs at the most affected sites to provide re-training and re-employment support.

MWC 2012 day 1 news [Feb 27, 2012]: Samsung and Nokia

 

Samsung had a number of enhanced GALAXY products (see them in the “Details for Samsung” section below). The really strong message from innovation point of view from them has, however, been (considered by them as “hidden gems”):
Samsung Mobile – Beyond Product [ YouTube Channel]

Tour the Samsung Mobile booth at Mobile World Congress 2012 in Barcelona. Find out more about our new innovations, from AllShare Play and Control through Smart Driving and Smart School to NFC mobile payments.

UPDATE: for Nokia the major competition is the overall Android ecosystem, and not only in the proper smartphone market as:
– repeatedly stressed by Stephen Elop, the CEO of Nokia:

Our number-one focus is competing with Android. [see here and here]

The principal competition is Android, and then Apple. [see here]

– indicated in relevant excerpts from the Nokia 2011 fiscal year report [March 8, 2012] as:

Market overview

… Today, however, the distinction between these two classes of products is blurring. Increasingly, basic feature phone models, supported by innovations in both hardware and software, are also providing people with the opportunity to access the Internet and applications and, on the whole, offering them a more smartphone-like experience.

Whether smartphones or feature phones, mobile devices geared for Internet access and their accompanying Internet data plans are also becoming increasingly affordable and, consequently, they are becoming attractive to a broader range of consumer groups and geographic markets. A notable recent development has been the increased affordability of devices based on the Android platform, which has enabled some vendors to offer smartphones for below EUR 100, excluding taxes and subsidies, and thus address a portion of the market which has been dominated by more basic feature phone offerings.

….

Competition

…  some competitors’ offerings based on Android are available for purchase by consumers for below EUR 100, excluding taxes and subsidies, and thus address a portion of the market which has been traditionally dominated by feature phone offerings, including those offered by Nokia. Accordingly, lower-priced smartphones are increasingly reducing the addressable market and lowering the price points for feature phone. …

Principal Factors & Trends Affecting our Results of Operations

Devices & Service

Increased Pervasiveness of Smartphones and Smartphone-like Experiences Across the Price Spectrum

During the past year, we saw the increasing availability of more affordable smartphones, particularly Android-based smartphones, connected devices and related services which were able to reach lower price points contributing to a decline in the average selling prices of smartphones in our industry.

This trend affects us in two ways. First, it puts pressure on the price of our smartphones and potentially our profitability, as we need to price our smartphones competitively. We currently partially address this with our Symbian device offering in specific regions and distribution channels, and we plan to introduce and bring to markets new and more affordable Nokia products with Windows Phone in 2012, such as the Nokia Lumia 610 announced in February 2012. Second, lower-priced smartphones put pressure on our higher-end feature phone offering from our Mobile Phones unit. We are addressing this with our planned introductions in 2012 ofsmarter, competitively priced feature phones with more modern user experiences, including software, services and application experiences. In support of our Mobile Phones business, we also plan to drive third party innovation through working with our partners to engage in building strong, local ecosystems.

Full information is in the Nokia’s strategy for “the next billion” based on software and web optimization with super low-cost 2.5/2.75G SoCs [Feb 14 – March 8, 2012] post on this blog.

END OF UPDATE

For Nokia, accordingly, a number of innovations have already been introduced on the MWC 2012, from the hardware level up to the services which surround all that. So for Nokia I will provide a video-based overview here well before going into the “Details for Nokia” section in the very end:

Nokia Press Conference Highlights from MWC 2012 [ YouTube channel]

Key points: Nokia Lumia 610 is announced. Award-winning Nokia Lumia 900 will become available in various markets outside the US. Nokia PureView elevates industry standard in smartphone imaging. New Asha feature phones and services grow increasingly ‘smarter’.

Nokia Lumia 610 Hands-On Video [ YouTube channel]

The funky Nokia Lumia 610 http://nokia.ly/AztJvZ is the most affordable Lumia phone yet, but it delivers everything you need in a smartphone. The People Hub pulls family and friends’ contact details in one place, along with Facebook and Twitter feeds. A choice of colours, with metallic trim, makes the phone an individual style statement. [$254 (€189). Has a 3.7” 800 x 480 WVGA LCD display.]

The Windows Phone Xbox tie-in and 5-megapixel camera add to the funky package. And Nokia Music, with Mix Radio (availability may vary by market), Nokia Maps, Nokia Drive, Nokia Transport and Nokia Reading – make this phone unbeatable value.

UPDATE: the Nokia Lumia 610 won Tom’s Hardware Best in show and Best Budget Smartphone from Laptop. See here.

Introducing the White Nokia Lumia 900 – Live Large [ YouTube channel]

Meet the new Nokia Lumia 900 with Windows Phone http://nokia.ly/zoyq6L Find out how fast amazing can be. And social. And beautiful. With its award winning design including front facing camera and Live Tiles, keeping in touch with friends, and the entire Internet, has never been so easy. [$645 (€480). Has a 4.3” 800 x 480 WVGA AMOLED ClearBlack display with Gorilla Glass.]

Experience The Amazing Everyday.

First Look at Nokia Reading on Nokia Lumia [ YouTube channel]

In this hands on video, Rhidian from Nokia talks about Nokia Reading, a premium e-book and audio experience service announced at Mobile World Congress 2012, and shows how it works on Nokia Lumia.

Nokia Reading will be available for Nokia Lumia handsets from April and will first launch in six markets (UK, France, Germany, Italy, Spain and Russia) with more to follow.

UPDATE: Nokia Reading: Get gripped by a great book [Nokia Coversations blog, Feb 28, 2012]

Nokia Reading follows the same simple and elegant panorama design we’ve become used to with other services, delivering the whole experience through a beautifully designed “reading hub.”

Nokia is working with some of the world’s biggest publishers, including Penguin and Hachette, and Pearson to launch a world class e-book and audiobook experience that’s been designed specifically for the Nokia Lumia.

Using a single, simple app you can choose your own favourite authors, or select bestselling novels and the top local books in your own language. If you’re not sure that you’ll like a book, Nokia Reading lets you browse some sample pages before you buy. Or you can download and read one of the thousands of classic works of literature that will be available for free.

Once you have chosen a book, large, clear, smartphone screens like those on the Nokia Lumia make reading an enjoyable experience – and you can switch to ‘night mode,’ change the font or adjust brightness, if your eyes get tired in the evening. It’s also great on an underground train or plane, because you can read everything offline after downloading beforehand over WiFi or mobile network

In coming months you’ll also be able to create a personalized magazine page (called “news stream”) that updates content across the most popular categories, and adds web content from your chosen sites.

Nokia 808 PureView – The next breakthrough in photography [ YouTube channel]

The game changer! Nokia 808 PureView http://nokia.ly/xz6mhS takes every bit of image goodness captured by a 41MP sensor and Carl Zeiss lens and turns it into beautifully detailed images and Full HD videos. Be ready to shoot and share with friends in an instant. [$605 (€450). Has a 4” 640 x 360  16:9 nHD AMOLED display.]

The Nokia 808 PureView also features exclusive Dolby Headphone technology, transforming stereo content into a personal surround sound experience over any headphones and Dolby Digital Plus for 5.1 channel surround sound playback.

UPDATE: Zooming in on Nokia PureView [article on the Nokia Conversations‎ blog, Feb 29, 2012]: meet the brains behind Nokia PureView Eero Salmelin and Juha Alakarhu, and also learn the history of this 5 years long journey that lead to the delivery on MWC 2012

UPDATE: Nokia 808 PureView partner makes it unbeatable [Nokia Conversations blog, March 1, 2012]

Dolby reveals audio secret of new phone’s success

Taking pride of place at their stand, the world’s best camera phone owes much to Dolby technologies for helping to make it an HD mobile entertainment device.

For the PureView is also about pure audio thanks to its high-definition Dolby Digital Plus 5.1-channel surround sound which plays on HD TVs, and home theatre systems, and when combined with Dolby Headphone technology – also built into the PureView – provides a personal 5.1 surround experience over any headphones.

Nokia is also bringing the Dolby experience to other smartphones with Nokia Belle Feature Pack 1 software upgrade for the Nokia 700, Nokia 701, and Nokia 603, also displayed on the Dolby stand.

Mobile Sales Director Shawn Richards talked us through the tech on a Nokia 700 with a demo from Batman movie The Dark Knight.

He explained that the Dolby Headphone upgrade transforms stereo content into a personal surround sound.

“You get a more natural, engaging, and authentic sound,” he said. “Good audio is even more important when you are watching a movie on a small screen. And Dolby Headphone creates a totally immersive feel.”

UPDATE: Nokia 808 Pureview – Best New Mobile Handset, Device or Tablet at Mobile World Congress 2012 [ YouTube channel, March 1, 2012]

Nokia 808 PureView wins top MWC award!
Our awesome camera phone scoops the top award from Mobile World Congress 2012 judges.

UPDATE: Damian Dinning explains Nokia PureView technology [ YouTube channel, Feb 29, 2012]

Nokia’s imaging expert Damian Dinning explains the breakthrough camera technology behind Nokia 808 PureView.

You could also check out the gorgeous photos taken with Nokia 808 PureView from the flickr.

UPDATE: Nokia PureView Q&A with Damian Dinning [interview on the Nokia Conversations‎ blog, March 1, 2012]

Nokia Stereo Bluetooth Headset BH-221 – See what you hear [ YouTube channel]

The new Nokia Stereo Bluetooth Headset BH-221 comes with an integrated FM radio and OLED display. It as excellent audio quality and NFC for easy pairing with your phone. Learn more at: www.accessories.nokia.com

Nokia Asha 302: Meet the designer [ YouTube channel]

Nokia Asha 302 http://nokia.ly/xXK4kV was designed with one simple goal in mind – to design the best looking QWERTY phone for today’s urban professionals. The metallic touch points, bold and sophisticated colors and smooth edges help users stand out and project success giving the phone a great premium feel. [$128 (€95). Has a 2.4” 320 x 240  QVGA TFT display.]

UPDATE: The Nokia C3-00 won Best Feature Phone or Entry Level Phone at the GSMA Awards 2012 in Barcelona. Blanca Juti, VP for Mobile Phones Product Marketing said to Nokia Conversations after collecting the prize: “It’s great for our products going forward, because the Nokia Asha 302 we launched yesterday is pretty much the successor to C3 which has had an amazing run in the market.” See here.

Nokia Asha 302: Premium All Round QWERTY [ YouTube channel]

Nokia Asha 302 http://nokia.ly/x5m2zm is a QWERTY phone with great value for money. It is packed with a 1 Ghz processor and is great for social networking, Email, Instant messaging, supports Mail for Exchange and has a premium design with stunning looks.

Nokia Asha 203: Simply touch, connect and play [ YouTube channel]

The Nokia Asha 203 http://nokia.ly/x78ZBe is a touch phone with a traditional keypad, offering fast and affordable access to the internet, easy access to email and social networks as well as a 40 EA games gift offering. [$81 (€60). Has a 2.4” QVGA display.]

Nokia Asha 202 Dual SIM: Simply touch, connect and play [ YouTube channel]

The Nokia Asha 202 http://nokia.ly/yOGbDA is a touch phone with a traditional keypad, offering fast and affordable access to the internet, easy access to email and social networks as well as a 40 EA games gift offering. Plus it comes with Easy Swap Dual SIM.  [$81 (€60). Has a 2.4” QVGA display.]

After exactly a year from the announcement of their new strategic set-up and direction it is quite obvious from all that above that Nokia is well on to realizing the corresponding transition. In fact they are redefining themselves which is well described by this video just published 2 days before the start of MWC 2012:

The New Essence of Nokia  [ YouTube channel]

We believe that everybody can have a richer, fuller life every day, everywhere. That means upgrading an ordinary moment to an exciting one or finding an unexpected experience to share with others. Intuitively, fast and easy. This is Nokia’s new mantra, this is the new essence of Nokia.

I see this overall brand message fitting rather well with their new and enhanced portfolio as you could judge for yourself from the above video presentations. In this way they have proceeded quite well from the disastrous situation they were a year ago, and which had been described quite extensively in the following post on this blog: 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 – March 25, 2011].


 Details for Samsung

This is the first hands-on video of GALAXY Beam from the Mobile World Congress 2012. GALAXY Beam is Samsung’s new projector smartphone that allows you to display and share multimedia content or business information instantly no matter where you are. For more information: http://www.samsungmobilepress.com/2012/02/26/GALAXY-Beam
MobileBurn.com – Samsung had relatively few things to announce at MWC 2012 this year, but one of them was the Galaxy Note 10.1, a larger version of the original Galaxy Note. The Note 10.1 uses the Galaxy Tab 2 (10.1) as its design inspiration (it looks nearly identical), but it adds S Pen capabilities to draw and notate on the screen. The Note 10.1 is powered by a dual-core, 1.4GHz processor and runs Android 4.0 Ice Cream Sandwich with Samsung’s TouchWiz enhancements. More info: http://www.mobileburn.com/18681/gallery/samsung-galaxy-note-101-live-impressions

Details for Nokia

All the launches: Nokia at Mobile World Congress [Nokia Conversations‎ blog]

BARCELONA, Spain – Nokia announces six new phones and an array of new and updated services, advancing its new strategy and setting the pace for 2012.

Here’s our star-studded line-up for Barcelona 2012.

Nokia Lumia 610

The Nokia Lumia 610 is our most affordable Windows Phone to date – and the fourth we’ve brought to market. It’s aimed at young people who want access to a smartphone experience at the right price. Offering access to social networking, games, Nokia Maps and navigation, web-browsing and Nokia Music, the Lumia 610 comes in four bright colours. It will cost just €189 [$254] before taxes and subsidies, and starts shipping in April.

Nokia Lumia 900

First announced in January for AT&T’s LTE network in the US, the Nokia Lumia 900 will now be available worldwide in an HSPA+ edition. The Dual Carrier HSPA phone will allow for downloads up 42.2 Mbps. With a 4.3-inch ClearBlack AMOLED display, mobile media never looked so good, while an upgraded battery means there’s no compromise on longevity.

[Lumia 900 [DC-HSPA variant] $645 (€480) according to the press release]

Read the full story

which one is your favourite

Nokia 808 PureView

The Nokia 808 PureView extends our leadership in camera phones, with an amazing 41-megapixel sensor, Carl Zeiss optics and brand new pixel over-sampling technology. This means pin-sharp pictures, great low-light performance, yet with the ability to save your images in a suitable file size for social media, MMS and email. Also watch out for full 1080p video recording and exclusive Dolby Headphone technology to enrich the sound of any stereo content.
[The Nokia 808 PureView has a current price of €450 [$605]. It will be hitting stores in Q2 2012. – according to a press report]

Read the full story

Nokia Asha 302, 202 and 203

We’re also introducing three new Nokia Asha mobile phones with new capabilities to bring them to smarter heights than ever. Aimed at urban consumers across the world, the Nokia Asha 302, 202 and 203 offer more than ever in terms of work and play. The Asha 302 is a QWERTY phone with support for Microsoft Exchange synchronisation, a first for Series 40 phones. The Asha 202 and 203 bring touch screens to a lower price point than ever and come with a massive entertainment bundle.
[Asha 202/203 $81 (€60), Asha 302 $128 (€95) according to the press release]

Read the full story 

New-Capabilities

Super Services

Not satisfied with six new phones, there’s a whole raft of new and improved services. Nokia Drive for Windows Phone will now offer full, offline maps and turn-by-turn navigation. In addition, there’s Nokia Reading, the best e-book experience for Nokia Lumia. And Nokia Life bringing life skills, parenting, education, agriculture and entertainment services to Series 30 and 50 phones in India, China, Indonesia and Nigeria.

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Click through for all the in-depth stories from today’s press conference. We’ll be bringing you even more detail, hands-on experiences and interviews with the brains behind these beauties over the course of the week.

Nokia 808 PureView

Remember that Nokia PureView tease from a few days ago? Well, suddenly it all makes sense. We are indeed looking at an imaging flagship phone and a true successor to the N8. It’s called the 808 PureView and it’s expected to reach Europe in the next quarter for a price of 450 Euros. Before we move on to its craziest feature — the camera, of course! — let’s run down the other key specs: The OS is Symbian Belle; the engine is a 1.3GHz single-core chip; the display is 4-inches corner to corner but its resolution is a Nokia-style 360 x 640 (nHD). There’s 512MB of RAM and 16GB of on-board storage that is thankfully expandable via microSD. A Pentaband modem increases the chances of getting a signal while globe-trotting, while data speeds will top out at plain HSPA 14.4Mbps. Now that Carl Zeiss-lensed camera: it handles continuous-focus 1080p, but is claimed to have an incredible sensor resolution of over 41-megapixels when shooting stills — or 34-megapixels for 16:9 images. It’s achieved by some clever sub-pixel interpolation jiggery-pokery that entails five pixels being merged into one to produce a final image with a max resolution of 8-megapixels, but we’ll dig deeper very soon. It’s expected to arrive in May at a price of €450 and if you’re curious, we’ve got a gallery of hands-on images and video for your viewing pleasure. Just follow the break for our first impressions. If you haven’t been sufficiently smacked in the face with the Nokia 808 PureView’s primary selling point, let’s settle the score right now: it’s a phone for camera enthusiasts. As niche devices often go, the sheer optical goodness will come with a few sacrifices. First and foremost, we’re a bit puzzled by Nokia’s choice of Symbian for the phone’s OS. That’s not to say that Belle isn’t a fine operating system, but it’s certainly a polarizing decision — not to mention perplexing, given the company’s ‘all-in’ approach to Windows Phone. Secondly, the 808 PureView is rather chunky, which is emphasized by the bulbous camera pod on the rear. In many ways, Nokia’s phone more closely rivals a point-and-shoot camera in size than a smartphone. That said, it’s still an infinitely pocketable handset, but there are certainly many other high-quality camera phones on the market that don’t demand such sacrifices. If you’re able to move beyond these two major caveats, the 808 PureView is likely a handset that many will come to adore — even if the fondness is learned over time. It features a lovely ClearBlack display, and while it’s decidedly low-res, it’s more than sufficient for Symbian Belle and its associated apps. Below the phone’s screen, users will find an extended rocker that provides access to the home screen, dialer and on / off switch. These physical buttons are combined with additional navigation options that are situated directly above on the touchscreen. The phone also features a headphone jack, micro-USB and micro-HDMI ports along the top — each recessed into a pod of their own — and the volume rocker, screen lock slider and dedicated camera button along the right-hand side. Via engadget

Nokia Lumia 610 and 900 [DC-HSPA variant]

Live from MWC 2012 Phonearena presents Nokia Lumia 610 demo. A heavily rumored handset, the Nokia Lumia 610 was finally announced today here at MWC 2012. As expected, the 610 is the first real budget-friendly Windows Phone, expected to retail for about $255 (EUR 189), which is pretty decent for a Windows Phone. For the full details, see our Nokia Lumia 610 Hands-on Review from MWC 2012 at: http://www.phonearena.com/news/Nokia-Lumia-610-Hands-on-Review_id27389

Nokia Asha 302, 202 and 203

PhoneArena live from MWC 2012: Nokia Asha 302 Hands-on Review. The Nokia Asha 302 is the full QWERTY business class addition to the extremely affordable Asha lineup based on Series 40. For the full details, see our Nokia Asha 302 hands-on from MWC 2012 at: http://www.phonearena.com/news/Nokia-Asha-302-Hands-on-Review_id27399

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