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Cortex-A53 is used alone in higher and higher-end devices as the result of increased competition between MediaTek and Qualcomm

Cortex A53 vs A7 performance

We’ve learned a lot during the last one a half years about the superiority of the Cortex-A53 cores for the mass produced SoCs. Some major points about that you see on the right:

My prediction back in Dec 23, 2013 was that The Cortex-A53 as the Cortex-A7 replacement core is succeeding as a sweet-spot IP for various 64-bit high-volume market SoCs to be delivered from H2 CY14 on. Such a prediction is a reality now as no less than 291 smartphones are listed as of today in PDAdb.net, which are using the Qualcomm Snapdragon 410 MSM8916 quad-core SoC based on Cortex-A53. The first such device, the Lenovo A805e Dual SIM TD-LTE was released in July, 2014.

Meanwhile Qualcomm’s downstream rival, MediaTek is moving up fast with its offerings as well. There are 8 devices based on quadcore MT6732M since Dec’14, 27 devices which based on quad-core MT6732 since Nov’14, and even 6 devices based on octa-core MT6753 since Jan’15. Note however that there are 3 such products from the Chinese brand Meizu, and one each from another local brands, Elephone and Cherry Mobile. Only the ZTE model is from a 1st tier global vendor yet.

My prediction was also proven by the fact that interest in that post was the highest on this blog as soon as the respective new SoCs, and commercial devices based on them arrived:

Cortex A53 vs A7 success on my blog and reasons for that -- 22-June-2015

Now even higher end, octa-core smartphones based on Cortex-A53 alone are coming to the market from 1st tier device vendors

June 1, 2015: Asus ZenFone Selfie (ZD551KL)
(launched on the ASUS Zensation Press Event at Computex 2015)


from the product site:

ZenFone Selfie features the industry’s first octa-core, 64-bit processor — Qualcomm’s Snapdragon 615. With its superb performance and superior power-efficiency you’ll shoot sharp photographs at stupefying speed, record and edit Full HD (1080p) video with minimal battery draw, and enjoy using the integrated 4G/LTE to share everything you do at incredible speeds of up to 150Mbit/s!

expected price in India: ₹12,999 ($205)
(Re: “coming in an incredible price” said in the launch video about the earlier ZenFone 2 (ZE551ML) which has the same price, but a 1.8 GHz Intel Atom Z3560 processor, only 5 MP secondary camera etc.)

from the ASUS Presents Zensation at Computex 2015 press release:

ZenFone Selfie is a unique smartphone designed to capture the best possible selfies, quickly and simply. Featuring front and rear 13MP PixelMaster cameras with dual-color, dual LED Real Tone flash, ZenFone Selfie captures beautiful, natural-looking selfies in gloriously high resolution. The rear camera features a large f/2.0 aperture lens and laser auto-focus technology to ensure near-instant focusing for clear, sharp pictures — even in low-light conditions where traditional cameras struggle.
ZenFone Selfie includes the brilliant ZenUI Beautification mode for live digital cosmetics. A few taps is all that’s needed to soften facial features, slim cheeks, and enhance skin tone to add vibrancy, and all in real time — injecting instant verve into any composition. ZenFone Selfie also has Selfie Panorama mode, which exploits ZenFone Selfie’s f/2.2-aperture front lens and 88-degree field of view to capture panoramic selfies of up to 140 degrees. With Selfie Panorama mode enabled, selfies become a party with all friends included — plus the ability to capture panoramic scenery for stunning backdrops.
ZenFone Selfie has a large 5.5-inch screen that fits in a body that’s a similar size to that of most 5-inch smartphones, for a maximized viewing experience in a compact body that fits comfortably in the hand. It has a high-resolution 1920 x 1080 Full HD IPS display with a wide 178-degree viewing angle and staggering 403ppi pixel density that renders every image in eye-delighting detail. ASUS TruVivid technology brings color to life in brilliant clarity, making selfies and other photos look their best. Tough Corning® Gorilla® Glass 4 covers the display to help protect against scratches and drops.
ZenFone Selfie features the industry’s first octa-core, 64-bit processor for the perfect balance of multimedia performance and battery efficiency — the Qualcomm® Snapdragon™ 615. This extraordinarily powerful chip equips ZenFone Selfie to provide the very best multimedia and entertainment experiences, carefully balancing high performance with superior power-efficiency.

June 19, 2015 by SamMobile: Samsung’s first smartphones with front-facing LED flash, Galaxy J5 and Galaxy J7, now official

Samsung has announced its first smartphones with a front-facing LED flash; the Galaxy J5 and the Galaxy J7. Specifications of these devices were previously leaked through TENAA, and their UI was revealed through Samsung’s own manuals. Now, they have been officially announced in China, where they would be available starting this week, but there’s no clarity about their international launch.
All the mid-range and high-end smartphones from the company released recently have started featuring high-resolution front-facing cameras, and the same is the case with the Galaxy J7 and the Galaxy J5. To complement their 5-megapixel wide-engle front-facing cameras, they are equipped with a front-facing single-LED flash. Other features include a 13-megapixel primary camera with an aperture of f/1.9, 1.5GB RAM, 16GB internal storage, a microSD card slot, dual-SIM card slot, and LTE connectivity. Both these smartphones run Android 5.1 Lollipop with a new UI that is similar to that of the Galaxy S6 and the S6 edge.

The Galaxy J7 is equipped with a 5.5-inch HD display, a 64-bit octa-core Snapdragon 615 processor, a 3,000 mAh battery, and is priced at  1,798 CNY (~ $289). The Galaxy J5 features a slightly smaller 5-inch HD display, a 64-bit quad-core Snapdragon 410 processor, a 2,600 mAh battery, and is priced at 1,398 CNY (~ $225). Both of them will be available in China in three colors; gold, white, and black.

The Galaxy J5 and J7 are targeted at the youth and compete with devices like the HTC Desire EYE, Sony Xperia C4, and the Asus ZenFone Selfie, all of which have high-resolution front-facing cameras with an LED flash.

May 6, 2015: Sony launches next generation “selfie smartphone” – Xperia™ C4 and Xperia C4 Dual

The selfie phenomenon is about to kick up a notch with the introduction of Xperia™ C4 and Xperia C4 Dual – Sony’s next generation PROselfie smartphones, featuring a best in class 5MP front camera, a Full HD display and superior performance.

“Following the success of Xperia C3, we are proud to introduce Sony’s evolved PROselfie smartphone,” said Tony McNulty, Vice-President, Value Category Business Management at Sony Mobile Communications. “Xperia C4 caters to consumers that want a smartphone that not only takes great photos, but also packs a punch. Benefiting from Sony’s camera expertise, the 5MP front-facing camera with wide-angle lens lets you capture perfect selfies, while its quality display and performance features provide an all-round advanced smartphone experience.”
We all like a high-profile selfie – so go ahead and get snapping:
You can now stage the perfect selfie, getting everything – and everyone – in shot, thanks to the powerful 5MP front camera with 25mm wide-angle lens. Sony’s Exmor RTM for mobile sensor, soft LED flash and HDR features means the pictures will always be stunning, even in those ‘hard to perfect’ low light conditions. Superior auto automatically optimises settings to give you the best possible picture and SteadyShot™ technology compensates for any camera shake.
With 13MP, autofocus and HDR packed in there is no compromise on the rear camera, which delivers great shots for those rare moments you’re not in the picture.
You will also be able to get even more fun out of your smartphone with a suite of creative camera apps such as Style portrait with styles including ‘vampire’ and ‘mystery’ to add a unique edge to your selfie. Moreover, apps such as AR maskgive your selfie a twist by letting you place a different face over your own face or others’ faces while you snap a selfie.
Experience your entertainment in Full HD
Now you can enjoy every picture and every video in detail with Xperia C4’s 5.5” Full HD display. Watching movies on your smartphone is more enjoyable thanks to Sony’s TV technology – such as Mobile BRAVIA® Engine 2 and super vivid-mode – which offers amazing clarity and colour brightness. Enjoy viewing from any angle with IPS technology.
Great video deserves great audio to match, so Xperia C4 features Sony’s audio expertise to deliver crisp and clear audio quality. With or without headphones, you can sit back and enjoy your favourite entertainment in all its glory.
The design of Xperia C4 has also been crafted with precise detail and care to ensure every aspect amplifies the sharp and vivid display. A minimal frame around the scratch-resistant screen enhances both the viewing experience and the smartphone design, while its lightweight build feels comfortable in the hand. Xperia C4 comes in a choice of white, black and a vibrant mint.
Superior performance, with a power-packed battery that just keeps going
Whether you’re running multiple apps, checking Facebook, snapping selfies or listening to the best music – you can do it all at lighting speed thanks to Xperia C4’s impressive Octa-core processor. Powered by an efficient 64-bit Octa-core processor [Mediatek MT6752], Xperia C4 makes it easier than ever to multitask and switch between your favourite apps, without affecting performance. Ultra-fast connectivity with 4G capabilities means it’s quicker than ever to download your favourite audio or video content and surf the web without lag.
The large battery (2,600mAh) provides over eight hours of video viewing time, meaning that the entire first season of Breaking Bad can be binged uninterrupted, while Battery STAMINA Mode 5.0 ensures you have complete control over how your battery is used.
Xperia C4 is compatible with more than 195 Sony NFC-enabled devices including SmartBand Talk (SWR30) and Stereo Bluetooth® Headset (SBH60). You can also customise the smartphone with the protective desk-stand SCR38 Cover or with a full range of original Made for Xperia covers.
Xperia C4 will be available in Single SIM and Dual SIM in select markets from the beginning of June 2015.
For the full product specifications, please visit: http://www.sonymobile.com/global-en/products/phones/xperia-c4/specifications/

price in India: ₹25,499 ($400) and ₹25,899 ($408) for the Dual-SIM version

June 1, 2015: The stakes have been raised even higher by a higher-end octa-core SoC from MediaTek with 2GHz cores which is also 30% more energy efficient because of the first time use of 28HPC+ technology of TSMC
MediaTek Expands its Flagship MediaTek Helio™ Processor Family with the P Series, Offering Premium Performance for Super Slim Designs

P-series the first to use TSMC’s 28nm HPC+ process, which reduces processor power consumption

MediaTek, a leader in power-efficient, System-on-Chip (SoC) mobile device technology solutions, today announces the launch of the MediaTek Helio™ P10, a high-performance, high-value SoC focused on the growing demand for slim form-factor smart phones that provide premium, flagship features. The Helio P10 showcases a 2 GHz, True Octa-core 64-bit Cortex-A53 CPU and a 700MHz, Dual-core 64-bit Mali-T860 GPU. The Helio P10 will be available Q3 2015 and is expected to be in consumer products in late 2015.

The P10 is the first chip in the new Helio P family, a series which aims to integrate into a high-value chipset, premium features such as high-performance modem technology; the world’s first TrueBright ISP engine for ultra-sensitive RWWB; and, MiraVision™ 2.0, for top-tier display experiences. The features available in the P series include several of MediaTek’s premier technologies, such as WorldMode LTE Cat-6, supporting 2×20 carrier aggregation with 300/50Mbps data speed; MediaTek’s advanced task scheduling algorithm, CorePilot®, which optimizes the P10’s heterogeneous computing architecture by sending workloads to the most suitable computing device – CPU, GPU, or both; and, MediaTek’s Visual Processing Application – Non-contact Heart Rate Monitoring, which uses only a smartphone’s video camera to take a heart rate reading and is as accurate as pulse oximeters/portable ECG monitoring devices.
“The P series will provide OEM smartphone makers with greater design flexibility to meet consumer demands for slim form-factors, which provide dynamic multimedia experiences,” said Jeffrey Ju, Senior Vice President of MediaTek. “The P10 enables state-of-the-art mobile computing and multimedia features all while balancing performance and battery life.”
The Helio P10 is the first product to use TSMC’s 28nm HPC+ process, which allows for reduced processor power consumption. With the help of the latest 28HPC+ process and numerous architecture and circuit design optimizations, the Helio P10 can save up to 30% more power (depending of usage scenarios), compared to existing smartphone SoCs manufactured using the 28 HPC process.
 “We are pleased to see MediaTek’s achievement in producing the world’s leading 28HPC+ smartphone chip,” said Dr. BJ Woo, Vice President, Business Development, TSMC. “As an enhanced version of TSMC’s 28HPC process, 28HPC+ promises 15% better speed at fixed power or 50% leakage reduction at the same speed over 28HPC. Through our competitive 28HPC+ technology and process-design collaboration with MediaTek, we believe MediaTek will deliver a series of products which benefit smartphone users across the world.”
As with the entire line of Helio SoCs, the P10 is packed with premium multimedia features. With a concentration on advanced display technologies, premium camera features, and HiFi audio, the P10 delivers leading functionality around the features most used on today’s mobile phones:
  • 21MP premium camera with the world’s first TrueBright ISP engine:
    • Enables ultra-sensitive RWWB sensor to capture twice as much light as traditional RGB sensors in order to retain true color and detail, even in low light. The RWWB sensor also enhances the color resolution, even when compared with RGBW sensors.
    • Other features include a new de-noise/de-mosaic HW, PDAF, video iHDR, dual main camera, less than 200ms shot-to shot delay, and video face beautify.
  • Hi-fidelity, hi-clarity audio achieves 110dB SNR & -95dB THD
  • Full HD display at 60FPS with MediaTek’s suite of MiraVision 2.0 display technologies:
    • UltraDimming – Dimmer background lighting for more comfortable reading, even in low-light situations.
    • BluLight Defender – A built-in blue light filter that saves more power than conventional software applications.
    • Adaptive Picture Quality – Ensures the best picture quality when using different applications. True-to-life colors when in camera preview; vibrant colors when watching videos.
The MediaTek Helio P10 will be released in Q3 2015 and is expected to be available in consumer products in late 2015.

Note that Helio P1 is a significant step in MediaTek’s strategy already outlined in the following posts of mine:
– March 4, 2014MediaTek is repositioning itself with the new MT6732 and MT6752 SoCs for the “super-mid market” just being born, plus new wearable technologies for wPANs and IoT are added for the new premium MT6595 SoC
– March 10, 2015MediaTek’s next 10 years’ strategy for devices, wearables and IoT

The ultimate ultrabooks/notebooks and 2-in-1 hybrids/detachables with the upcoming Intel Core M processors

What is presented below it is an incredible advance versus that of one a half year ago. For comparison see my earlier Saving Intel: next-gen Intel ultrabooks for enterprise and professional markets from $500; next-gen Intel notebooks, other value devices and tablets for entry level computing and consumer markets from $300 [this same blog, April 17, 2013] post. Note as well that with Core M Intel is able to differentiate its enterprise offerings from the consumer ones, as the latter could be mainly represented by products like in ASUS EeePC revival with the $199/€199 EeeBook X205 at IFA 2014: the Chromebooks alternative based on Windows 8.1 with Bing [this same blog, Sept 6, 2014].

image

See also the report about IDF 2014 PC Mega Session: 2-in-1s to Rule Mobile, Wireless Everything Coming Soon [Tom’s Hardware US, Sept 10, 2014]

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They are of the fanless design! So it is time—says Intel—to upgrade your aging PCs to these business-ready touch devices built on the latest Intel Core processors and Windows 8.1:

Touch business-grade performance [Intel YouTube channel, Sept 4, 2014]

Refresh your aging PCs with new business-ready touch devices with Intel Inside®. Give users the features and performance they want while unleashing the productivity of touch. Users expect the mobility and instant touch access they enjoy at home in their workplace. From 2in1s to tablets to all-in-one PCs, an expanding range of business-ready Intel® architecture-based devices provide the right touch device for different worker needs along with the security, manageability, and compatibility IT requires.

For small businesses a special business app bundle from Intel (already available with selected business tablets) is also providing an immediate opportunity to boost productivity:

Intel Business Apps [Intel YouTube channel, Sept 8, 2014]

Chip Shot: Intel Business App Portfolio Now on Windows OS and Intel® Core™ M Processor-based Devices [News story on Intel Newsroom, Sept 5, 2014]

The Intel® Business App Portfolio, a collection of useful business apps to boost productivity and enhance security of small businesses, is now available on the latest Intel-based tablets and 2 in 1 devices running the Windows OS. And, with the app bundle on some of the newest devices powered by Intel® Core™ M processors, users will realize additional benefits with up to 8 hours of battery life with full HD display and up to 50 percent faster CPU performance. Previously offered only on Intel-based tablets running the Android OS, the mobile app bundle includes special offers—valued at more than $250—and is now available with the following Windows apps:

AirWatch, Calc Pro HD, CamCard, Dictionary, DocuSign, Drawboard PDF, McAfee Anti-Virus Plus, Microsoft Office 365 Business, OneDrive, OneNote, Skype, SpeechTrans and Splashtop Business.

It is available for free by purchasing a qualifying device from Intel® Technology Provider members in North America, Latin America and Europe or through Amazon.com (in the U.S. and Canada). Visit www.intel.com/businessapps to learn more.

image

Chip Shot: Intel Releases Mobile App Bundle for Business Tablets [News story on Intel Newsroom, Aug 4, 2014]

Intel® Business App Portfolio is now available for select tablets based on Intel® processors and Android. Intel has bundled a collection of top business apps that include Evernote, ooVoo, Dropbox, McAfee, DocuSign and others, to turn tablets into enhanced productivity tools for workers. With the app bundle, an employee can easily create and share documents and presentations; video conference; access company files in the cloud or a remote PC; guard sensitive data from viruses; and capture images and signatures for business contracts. At an estimated value over $250, the portfolio is a cost-effective solution that meets the needs and budgets of small businesses worldwide to accelerate achieving goals of improving customer interactions and sales growth. The app bundle is available for free by purchasing a qualifying tablet from Intel® Technology Partner members in North America, Latin America and Europe or through Amazon.com (in the U.S. and Canada).

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The categories in Intel® Business App Portfolio (for small businesses) as of Sept 9, 2014:

  Windows Android
Access OneDrive1
Splashtop Business2 
Dropbox12 
Splashtop Business2  
Assist Calc Pro HD3
Dictionary4
SpeechTrans Ultimate5 

Dictionary
4
SpeechTrans Ultimate5
Capture CamCard6 
DocuSign7 
Drawboard PDF8  
ABBYY Business Card Reader13 
DocuSign7 

CamScanner14  

Connect Skype9  ooV0015 
PrintHand16 
Create Office 365 Business1 
OneNote1 
WPS Office17 
Evernote18 
Swype19   
Protect AirWatch10
McAfee Antivirus Plus11 
McAfee Antivirus Plus11  
For Windows:
1  Special Offer: Coming October 1, 2014 to the Intel® Business App Portfolio! Receive 15% off a 1-year paid subscription to Office 365 Business, which includes the familiar and powerful Word, Excel, PowerPoint, OneNote and Outlook applications, as well as cloud storage with OneDrive! ($23 USD value) 
2  Special Offer: 2-month subscription of Splashtop Business ($10 Value) 
3  Special Offer: Receive 60% off the Full Version of the Calc Pro HD (just $2.99) when you redeem this special offer. 
4  Special Offer: Receive the Dictionary app from Farlex, Inc. for free ($1.99 USD value) 
5  Special Offer: One year of SpeechTrans Ultimate ($24 USD value)  
6  Special Offer: Extend CamCard free trial from 6 months to 12 months with promo code! ($5 USD value) 
7  Special Offer: Special 20% discount on a DocuSign annual subscription (up to a $72 USD value) 
8  Special Offer: A one-year extended trial of Drawboard PDF 
9  Special Offer: Three months of unlimited calling for free!. That means, in addition to making free Skype to Skype calls, you can also call offline contacts on their mobiles and landlines. 
10  Special Offer: 30-day trial with a consultation from a member of dedicated Airwatch SMB account team.
11  Special Offer: 1-year McAfee Antivirus Plus subscription ($35 USD value)
Android specific apps only:
12  Special Offer: 14-day free trial of Dropbox for Business
13  Special Offer: Receive Serial Number and download instructions for the full, premium version of ABBYY Business Card Reader.
14  Special Offer: Receive 3-months Premium service and lifetime paid [CamScanner] app features (totals $20) upon sign-up
15  Special Offer: One-year of ooVoo Video Conferencing Service
16  Special Offer: Activation code to upgrade PrintHand to Premium Mode.
17  Special Offer: While we highly recommend you utilize [MS Office compatible] WPS Office for your office document needs on your Android device, the application is free to use so there is no promotional offer available at this time.
18  Special Offer: While we highly recommend you utilize Evernote for your note taking needs on your Android device, the application is free to use so there is no promotional offer at this time.
19  Special Offer: 30-day trial of the Swype keyboard & dictation.

Mobile Devices (Intel based 2 in 1s and tablets) for the Intel® Business App Portfolio as of Sept 9, 2014:

Windows Android
Acer Iconia A1-830 (7.9”, Z2560)

ASUS MeMO Pad (10.1”, Z2560)

Dell Venue 7 (7”, Z2560)

ASUS Transformer Book* T100 (10.1”, Z3740)
Dell Venue 8 Pro (8”, Z3740D)
HP ElitePad 1000 G2 (10.1”, Z3795)
Microsoft Surface Pro *3 (10”, Core i5/i7)
Samsung Galaxy Tab* 3 (10.1”, Z2560)

Acer Iconia A1-830
(7.9”, Z2560)
ASUS MeMO Pad
(10.1”, Z2560)
Dell Venue 7
(7”, Z2560)

Samsung Galaxy Tab* 3 (10.1”, Z2560)

Atom Z2560 (Q2’13): Clover Trail+ platform
Atom Z3740, Z3740D, Z3795 (Q3’13 and Q1’14): Bay Trail-T Type 4 platform 

Computex 2014: What’s next for Intel: Cheaper 4K, new Core M chip and 3D cameras [Network World YouTube channel, June 5, 2014]

From Kirk Skaugen’s keynote presentation in June 2014. The full presentation you could see in the end of this blog post.

Intel® 14 nm Technology [an Intel Silicon Innovations page as of Sept 9, 2014]

Ultra-fast, energy-sipping devices powered by Intel
Supporting a wide range of products from mobile devices to servers, 14 nm transistors improve performance and reduce leakage power. Intel’s 14 nm technology will be used to manufacture a wide range of high-performance to low-power products including servers, personal computing devices, and products for the Internet of Things. The first systems based on the Intel® Core™ M processor will be on shelves for the holiday selling season followed by broader OEM availability in the first half of 2015. Additional products based on 14 nm process technology will be introduced in the coming months.
imageUsing 2nd generation 3-D tri-gate transistors, the 14 nm technology delivers industry-leading performance, power, density, and cost per transistor, and will be used to manufacture a wide range of products, from high performance to low power.
Smaller is better
imageIntel’s 14 nm technology provides good dimensional scaling from 22 nm. The transistor fins are taller, thinner, and more closely spaced for improved density and lower capacitance. Improved transistors require fewer fins further improving density, and the SRAM cell size is almost half the area of that in 22 nm.
14 nm manufacturing
Intel’s 14 nm process and lead system-on-a-chip (SoC) product are now qualified and in volume production, with fabs in Oregon (2014), Arizona (2014), and Ireland (2015).

Microscopic Mark Bohr: Intel 14nm Processors Explained [Intel YouTube channel, Aug 11, 2014]

Mark is still following the seemingly never-ending path of Moore’s Law. We catch up with him this time for an explanation of Intel’s 14nm manufacturing process. See the first video in this series, 22nm explained: https://www.youtube.com/watch?v=YIkMaQJSyP8 Learn more about Moore’s Law and Intel’s History: http://www.intel.com/content/www/us/en/history/museum-gordon-moore-law.html

Intel® Core™ M Processor [an Intel Core Processors page as of Sept 9, 2014]

Versatile, Mobile, Blazing Fast

Intel® Core™ M and Intel® Core™ M vPro™ processors

With the world’s first processors built on 14 nm manufacturing process technology, PC performance is now possible within a range of ultra-mobile 2 in 1 devices. Blazing fast speed combined with the highest level of energy efficiency in Intel’s history enables razor-thin, fanless designs that meet your needs for both performance and mobility. The Intel® Core™ M vPro™ processor provides additional built-in security features1 to deliver the perfect combination of business-class performance and battery life to keep you productive longer no matter where you are. For small businesses, the Intel® Core™ M processor provides an optimal combination of business-class performance and battery life, so your employees have the power to stay productive longer, no matter where they work. Free yourself from carrying multiple devices and get the best of both worlds in a 2 in 1 device with the conflict-free Intel Core M and Intel Core M vPro processors.

Product Brief:  PreviewDownload
Datasheet, volume 1:  PreviewDownload
Datasheet, volume 2:  PreviewDownload
Specification update:  PreviewDownload

IFA 2014: Intel presents new Core M Processors [allroundpc Youtube channel, Sept 5, 2014]

Intel presents it all new mobile processors at IFA 2014 in Berlin. The new Intel Core M processors are specifically made for mobile devices and are supposed to bring a lot of power while consuming less energy than previous models. More information under: http://www.allround-pc.com/news/2014/intel-core-m-koennen-die-cpus?preview=true&preview_id=80031&preview_nonce=bfdc570414

See also:
Intel® Core™ M Processor for Small Business
Products (Formerly Broadwell),
Fact Sheet: Intel® Core™ M Processor – Razor-thin Laptop Meets Ultra-fast Tablet

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New Intel® Core™ M Processor Enables Razor-thin, Fanless Designs with the Optimal Blend of Beauty, Performance and Battery Life; Available Holiday 2014 [IFA 2014 press release, Sept 5, 2014]

NEWS HIGHLIGHTS

  • Acer*, ASUS*, Dell*, HP*, Lenovo* and Toshiba* to introduce new Intel® Core™ M processor-based 2 in 1s. Some systems available starting in October.
  • Intel Core M processor delivers amazing performance and battery life for the thinnest, fanless 2 in 1 devices.
  • At a power-sipping 4.5 watts, it is the most energy-efficient Intel® Core™ processor in the company’s history.1

IFA, Berlin, Sept. 5, 2014 – At IFA, a global trade show for consumer electronics and home appliances, Intel launched the new Intel® Core™ M processor, which will power new 2 in 1 devices from a variety of manufacturers including: Acer*, ASUS*, Dell*, HP*, Lenovo* and Toshiba*. Delivering the optimal blend of mobility and performance, Intel’s new processor was purpose-built for amazing performance in the thinnest, fanless ultra-mobile devices. The Intel Core M processor can power razor-thin devices with Intel Core processor-level performance and deliver up to double the battery life when compared to a 4-year-old system.2

“We’ve been on a multi-year mission to address end-user requirements and transform mobile computing,” said Kirk Skaugen, senior vice president and general manager of personal computing at Intel Corporation. “The introduction of Core M marks a significant milestone in that journey. Core M is the first of a new product family designed to deliver the promise of one of the world’s thinnest laptops and highest performance tablets in a single 2 in 1 device.”

Faster Performance, Even More Battery Life
The Intel Core M processor enables up to 50 percent faster compute performance and 40 percent faster graphics performance versus the comparable, previous 4th generation Intel Core processor.3 Consumers with older PCs will notice a more significant performance improvement. The Intel Core M processor delivers up to two times the compute performance and up to seven times better graphics compared to a 4- year-old PC, for example.2

In 2013, Intel delivered the biggest generation-over-generation battery life improvement in the company’s history. The Intel Core M processor and platform power reductions raise the bar on battery life even higher. The Intel Core M processor can handle more than 8 hours of video play, which is up to 20 percent (1.7 hours) longer battery life versus the previous-generation Intel Core processor4 and double the battery life of the average 4-year-old PC.1

Thin, Fanless 2 in 1s Available for Holiday 2014…and Beyond
The Intel Core M processor package is 50 percent smaller and, at 4.5 watts, has 60 percent lower thermal power than the previous generation.5 This lets OEMs design sleek, fanless systems less than 9 mm thin – thinner than an AAA battery and today’s sleekest laptops. There are already more than 20 Intel Core M processor-based OEM products in the development pipeline. The first systems based on the Intel Core M processor will be on shelves for the holiday selling season.

At IFA, manufacturers including Acer, ASUS, Dell, HP, and Lenovo unveiled new, coming-soon Intel Core M processor-based devices across a range of sizes, styles and price points.

  • In Q4, Acer will expand its popular 2-in-1 series of notebooks with the Aspire Switch 12*, featuring a 12.5-inch FHD display with unique kickstand and magnet keyboard to move smoothly between five modes.
  • ASUS introduced the ASUS Zenbook UX305*, an incredibly light and thin Ultrabook™ with a 13-inch QHD display
    Asus unveiled the UX305, its newest flagship laptop at IFA 2014 this week. The device, it claims, is the world’s thinnest 13-in QHD+ ultrabook, giving it one of the highest pixel densities of any computers on the market. It faces competition from the Lenovo Yoga 2 Pro and the Samsung ATIV Book 9 as well as the Apple MacBook Pro Retina Display, although we expect vendors to refresh their current thin-and-light laptop range very soon. At only 12.3mm thick and weighing 1.2Kg, it is light enough to be carried comfortably with one hand. Its specification sheet lists an Intel Core M processor (the 5Y10), Windows 8.1, 4GB or 8GB of LPDDR3 memory, either 128GB or 256GB SSD, an Intel HD Graphics 5300 subsystem, a webcam and a 6-cell, 45Whr battery. As for connectivity, it has three USB ports, one mini-HDMI output and a SD card reader.

    and the ASUS Transformer Book T300FA* 2 in 1, which was unveiled during the Intel keynote. The Transformer Book T300FA is a high-performance 2 in 1 and is expected to be available in Europe this fall for an estimated €599. Looking ahead, ASUS plans to go even thinner with the ASUS Transformer T300 Chi*.

  • Dell has announced its first commercial 2 in 1, the Latitude 13 7000 Series*, which combines a lightweight business Ultrabook and a detachable tablet in one powerful, no-compromise device.
  • HP further extends its award-winning ENVY portfolio with the addition of two new HP ENVY x2* detachable PCs, available in 13.3-inch and 15.6-inch form factors.
  • The new [11.6”] Lenovo ThinkPad Helix*, available in October, is 12 percent lighter and measures 15 percent thinner than its predecessor while packing even more power thanks to the Intel Core M processor.
    [From Lenovo on Sept 4 with the VP PCG Marketing & Design, Dilip Bhatia: “the most complete 2-in-1 in the marketplace”] The ThinkPad Helix is the industry’s leading 2-in-1 device. Powered by the latest Intel Core processor family, sporting a new revolutionary fan less design and up to 12 hours of battery life. Built for business, the ThinkPad Helix. Learn more about Lenovo: http://lnv.gy/lenovo
     
    [From Lenovo on Sept 4 with the product manager for ThinkPad Helix, Sachin Pathak: “specific focus on productivity in business … in line with Lenovo’s multimode strategy to 4 earlier modes now a new desktop mode has been added … etc. –> for ‘full PC connectivity’ ultimately satisfying the ‘business traveller’ ”] Join Kevin Beck for the First Look at the new Think Helix. Lots of awesome new features, including an innovative new fanless design, up to 12 hours of battery life and plenty more surprises. Learn more about Lenovo: http://lnv.gy/lenovo

Intel also previewed a forthcoming Intel Core M processor-based design from Toshiba, and said broader availability of Intel Core M processor-based devices is expected in the first half of next year.

To further system choice and availability, Intel said it is working with ODMs including Wistron* and others. Wistron plans an Intel Core M processor-based design inspired by the Intel “Llama Mountain” reference device. Intel first unveiled the stunning, fanless Llama Mountain reference device, which measures 7.2 mm thin and weighs a mere 670 grams, at Computex in Taiwan earlier this year.

Intel Core M “Broadwell-Y” 2-in-1 Tablet / Ultrabook Reference Design hands on at Computex 2014 http://www.mobilegeeks.com http://www.mobilegeeks.de We got to quickly check out Intel’s new reference design für “Broadwell-Y” based Intel Core M ultrabooks and 2-in-1 tablet style devices. It’s called “Llama Mountain 2” and has a 12,5 inch QHD IPS display with 2560×1440 pixels. The device is only 7,5 millimeters thin and weighs in under 800 grams. It shows what to expect from this years 2-in-1 devices coming in from Intels many hardware partners in the run up to the holiday shopping season!

A “Conflict-Free” Processor; Additional Features
Intel Core M is a “conflict-free” product, which means this product does not contain conflict minerals (tin, tantalum, tungsten and/or gold) that directly or indirectly finance or benefit armed groups in the Democratic Republic of the Congo (DRC) or adjoining countries.

The Intel Core M processor is available in several versions: the up to 2.0 GHz Intel Core M-5Y10/5Y10a processors and the up to 2.6 GHz Intel Core M-5Y70 processor. The Core M-5Y70 is the highest performing Intel Core M processor and is also available with Intel® vPro™ technology for business 2 in 1s with built-in security features to help protect data, user identities and network access.6

Additional Intel Core M platform features include support for high-quality audio, Intel® Wireless Display 5.0, Intel’s second-generation 802.11ac products and will evolve to support wireless docking with WiGig from Intel. For more information visit:www.intel.com.

1Energy efficiency based on SPEC CPU2006 Intel estimates for both performance and core power. Comparison made vs. Intel prior generation Intel Core family CPU Processors.
2Intel® Core™ M-5Y70 Processor (up to 2.60GHz, 4T/2C, 4M Cache) vs. Normalized to a 4-year-old PC with Intel® Core™ i5-520UM. Performance based on SYSmark* 2014. Intel® Core™ M 5Y70 compared to Intel® Core™ i5-520UM. Weight based on Intel® Core™ M processor-based 2 in 1 based on Intel® FFRD Llama Mountain. Old PC is OEM laptop with Intel® Core™ i5-520UM and 62WHr battery, 3 lbs weight, 1.1-inch thick.
3Up to 50 percent faster vs. 4th generation Intel Core processors based on: Specfp_rate_base 2006 comparing Intel® Core™ M-5Y70 Processor compared to previous-generation Intel® Core™ i5-4302Y at 4.5W. Up to 40 percent faster graphics vs. 4th generation Intel Core processors based on: 3D Mark Ice Storm comparing Intel® Core™ M-5Y70 Processor with Intel HD graphics 5300 vs. Previous Generation Intel® Core™ i5-4302Y at 4.5W with HD Graphics 4200.
4Intel Core M battery life tested vs. 4th generation Intel® Core™ processor based platforms – 11.6-inch panel; 19×10; 200 nits; 35WHr battery; SSD; 4GB memory. Full HD Local Video Playback Battery Rundown-measured using a Tears of Steel 1080p 10 Mbps video. Configuration: In the device settings, disable all radios. Disable Intel® Display Power Saving Technology (Intel® DPST), set up the system to specified screen brightness using a full screen white background, and re-enable Intel DPST. Turn OFF the adaptive brightness setting under Power Options in Control Panel. Set “Dim the display” to never on both battery and AC. Set “Put the computer to sleep” to never on both battery and AC. Wait 15 minutes after boot. Launch the default video player (Windows* 8.1 Style UI video player for win), start the workload video in a loop, and disconnect the AC plug to start the test. Measure the time until battery is exhausted.
54th generation Intel® CoreTM Processor (40 X 24 X 1.5 mm; 960 mm; 11.5W) vs. Intel® Core™ M processor (30 X 16.5 X 1.05 mm; 495 mm; 4.5W)
6No computer system can provide absolute security. Requires an enabled Intel processor, enabled chipset, firmware and/or software optimized to use the technologies. Consult your system manufacturer and/or software vendor for more information.

Intel Mobility at Computex 2014 with Core-M, WiGig, RealSense [Steve Paine YouTube channel, June 10, 2014]
under Kirk Skaugen –> [46:23]:
>>> Reinvention of the Desktop
>>> 2 in 1 Momentum and the Intel Core M Processor
>>> User Experience at Intel
– then under Herman Eul –> [1:20:38]
>>> The Year of Intel Inside Your Tablet
>>> Powerful Smartphones

From Computex 2014 this Intel mobility keynote is a must-watch for anyone that’s interested in mobile PCs in 2014 and 2015. Intel presents the 10-inch Llama Mountain reference design at 6.8mm thick. Intel also promises to make a completely wireless 2-in-1 and Ultrabook reference design in the post-Broadwell phase that uses WiGig to remove ports. Also includes some great RealSense demos, WiDi products, 20W wireless charging and a live video beautifying demo.

2014 H1 changes on the Worldwide Tablet market

Versus as it was presented in The lost U.S. grip on the mobile computing market, including not only the device business, but software development and patterns of use in general [this same blog, April 14, 2014]:

imageSource: The Tablet Market Ticks Up In The Second Quarter
With White Box Shipments Leading The Way [Business Insider, July 25, 2014]

      • The global tablet market ticked up in the second quarter of 2014, although growth is still near the market’s historical low.
  • Shipments hit about 44.3 million during the period, yielding year-over-year growth of 11%.

While an improvement from the previous quarter, consider that the tablet market had year-over-year growth of nearly 80% in the same quarter just a year ago.

    • Although it lead all vendors with about 27% market share, Apple’s iPad shipments declined 9% year-over-year during the period. That marks the second consecutive quarter in which iPad shipments have declined.
    • Samsung’s tablet shipments grew a paltry 1% for the period to hit 8.5 million units in the second quarter. That is an enormous slowdown compared to the growth rates it was achieving just a year ago. In the second quarter of 2013, Samsung tablet shipments grew 300% year-over-year.
    • Both Apple and Samsung lost market share during the quarter. Apple’s leading market share fell from 33% to 27% while Samsung’s dipped two percentage points to 17%.
    • “White-box” vendors = 41% of market

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    Worldwide Tablet Market Grows 11% in Second Quarter on Shipments from a Wide Range of Vendors, According to IDC [IDC press release, July 24, 2014]

    The worldwide tablet grew 11.0% year over year in the second quarter of 2014 (2Q14) with shipments reaching 49.3 million units according to preliminary data from the International Data Corporation (IDC) Worldwide Quarterly Tablet Tracker. Although shipments declined sequentially from 1Q14 by -1.5%, IDC believes the market will experience positive but slower growth in 2014 compared to the previous year.
    “As we indicated last quarter, the market is still being impacted by the rise of large-screen smartphones and longer than anticipated ownership cycles,” said Jean Philippe Bouchard, IDC Research Director for Tablets. “We can also attribute the market deceleration to slow commercial adoption of tablets. Despite this trend, we believe that stronger commercial demand for tablets in the second half of 2014 will help the market grow and that we will see more enterprise-specific offerings, as illustrated by the Apple and IBM partnership, come to market.”
    Despite declining shipments of its iPad product line, Apple managed to maintain its lead in the worldwide tablet market, shipping 13.3 million units in the second quarter. Following a strong first quarter, Samsung struggled to maintain its momentum and saw its market share slip to 17.2% in the second quarter.  Lenovo continued to climb the rankings ladder, surpassing ASUS and moving into the third spot in the tablet market, shipping 2.4 million units and grabbing 4.9% markets share. The top 5 was rounded out by ASUS and Acer, with 4.6% and 2.0% share, respectively. Share outside the top 5 grew to an all time high as more and more vendors have made inroads in the tablet space. By now most traditional PC and phone vendors have at least one tablet model in the market, and strategies to move bundled devices and promotional offerings have slowly gained momentum.
    “Until recently, Apple, and to a lesser extent Samsung, have been sitting at the top of the market, minimally impacted by the progress from competitors,” said Jitesh Ubrani, Research Analyst, Worldwide Quarterly Tablet Tracker. “Now we are seeing growth amongst the smaller vendors and a levelling of shares across more vendors as the market enters a new phase.”

    Worldwide Tablet Shipments Miss Targets as First Quarter Experiences Single-Digit Growth, According to IDC [IDC press release, May 1, 2014]

    Worldwide tablet plus 2-in-1 shipments slipped to 50.4 million units in the first calendar quarter of 2014 (1Q14) according to preliminary data from the International Data Corporation (IDC) Worldwide Quarterly Tablet Tracker. The total represents a sequential decline of -35.7% from the high-volume holiday quarter and just 3.9% growth over the same period a year ago. The slowdown was felt across operating systems and screen sizes and likely points to an even more challenging year ahead for the category.
    “The rise of large-screen phones and consumers who are holding on to their existing tablets for ever longer periods of time were both contributing factors to a weaker-than-anticipated quarter for tablets and 2-in-1s,” said Tom Mainelli, IDC Program Vice President, Devices and Displays. “In addition, commercial growth has not been robust enough to offset the slowing of consumer shipments.”
    Apple maintained its lead in the worldwide tablet plus 2-in-1 market, shipping 16.4 million units. That’s down from 26.0 million units in the previous quarter and well below its total of 19.5 million units in the first quarter of 2013. Despite the contraction, the company saw its share of the market slip only modestly to 32.5%, down from the previous quarter’s share of 33.2%. Samsung once again grew its worldwide share, increasing from 17.2% last quarter to 22.3% this quarter. Samsung continues to work aggressively with carriers to drive tablet shipments through attractively priced smartphone bundles. Rounding out the top five were ASUS (5%), Lenovo (4.1%), and Amazon (1.9%).
    With roughly two-thirds share, Android continues to dominate the market,” said Jitesh Ubrani, Research Analyst, Worldwide Quarterly Tablet Tracker. “Although its share of the market remains small, Windows devices continue to gain traction thanks to sleeper hits like the Asus T100, whose low cost and 2-in-1 form factor appeal to those looking for something that’s ‘good enough’.”

    Digitimes Research: Global tablet shipments reach 55.06 million units in 2Q14 [press release, July 23, 2014]

    There were 55.06 million tablets shipped globally in the second quarter of 2014, decreasing 4.5% on quarter but increasing 17.9% on year, according to Digitimes Research.
    The shipments consisted of 14.1 million iPads, down 10% on quarter, and 18.96 million units launched by vendors other than Apple, down 12.7% on quarter. Additionaly, 22.3 million white-box units were shipped in the second quarter.
    Shipments of small-size Wi-Fi-enabled units in particular slowed down in the second quarter and the time period was also a slow season for shipments. Supply chains also faced yield issues and Samsung saw less-than-expected shipments for its 8-inch tablets. Tablets sized 10-inch and above have seen shipment increases since fourth-quarter 2014.
    Taiwan tablet makers meanwhile surpassed 20 million in shipments for brand tablets during the second quarter, which made up 60% of overall brand tablet shipments during the time period, added Digitimes Research.

    Digitimes Research: Global tablet shipments drop 30% sequentially in 1Q14 [press release, April 23, 2014]

    Global tablet shipments reached only 58.56 million units in the first quarter of 2014, down almost 30% sequentially, but up 4.6% on year despite Samsung Electronics trying to boost both its high-end and entry-level tablet shipments and Lenovo pushing shipments to meet its fiscal 2013 targets. Seasonality, Apple seeing weaker sales, and the tablet market growing mature were also factors that affected shipment performance, according to Digitimes Research.
    Shipments of iPads suffered both on-year and sequential drops to reach 15.85 million units in the first quarter. Non-iPad tablet shipments were 22.31 million units, down 20% sequentially, but up over 30% on year thanks to strong demand for Samsung, Lenovo and Asustek’s Windows-based models. White-box tablet shipments reached only 20.4 million units due to seasonality and labor shortages during the Lunar New Year holidays.
    Apple and Samsung remained the top-two vendors in the first quarter, but the two players’ market share gap was less than 6pp. Lenovo was the third-largest vendor, followed closely by Asustek Computer in fourth. Amazon and Google dropped to number seven and ten.
    Taiwan ODMs shipped 22.15 million tablets together in the first quarter, accounting for less than 60% of global shipments. The largest maker, Foxconn Electronics (Hon Hai Precision Industry), and second-largest Pegatron Technology both suffered significant shipment drops due to lower-than-expected demand for iPad. Quanta saw increased shipments in the quarter because of Asustek’s T100 tablet, and returned to being the third-largest maker in Taiwan. Compal Electronics’ shipments suffered a sharp decline because Amazon’s Kindle Fire range is approaching the end of its lifecycle, while Acer is turning to cooperate with China-based makers, Digitimes Research‘s figures showed.

    Digitimes Research: Global white-box tablet shipments down in 1Q14 [press release, May 12, 2014]

    There were 20.4 million white-box tablets shipped globally in the first quarter of 2014, decreasing by 27.4% on quarter and by 2.4% on year, according to Digitimes Research.
    The decrease in shipments was mainly because most white-box vendors are based in China and there were fewer working days in the first quarter due to the Lunar New Year holidays, Digitimes Research pointed out.
    Of the shipments, 7-inch models accounted for 70.5%, 7.85/7.9-inch ones 21.3%, 8- to 9-inch ones 4.2%, above 9- to 10-inch 2.9%, above 10-inch 1.1%.
    Due to strong demand in emerging markets including India, Indonesia, Thailand, Russia and Eastern Europe, global white-box tablet shipments in the second quarter of 2014 will increase 14.2% on quarter and 45.6% on year to 23.3 million units.

    2014 H1 changes on the Consumer Tablet Market in China

    imageVersus as it was presented in Section I. of The lost U.S. grip on the mobile computing market, including not only the device business, but software development and patterns of use in general [this same blog, April 14, 2014]

    imageimage

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    The lost U.S. grip on the mobile computing market, including not only the device business, but software development and patterns of use in general

    This is my conclusion after the two sections of analysis presented below:

    I. China-based white-box tablet and smartphone vendors were shaping the 2013 global device market which will even more so in 2014

    II. Asia is following different patterns of mobile use than the United States – the case of China and South Korea

    The single, most forceful evidence for all of the above is the extraordinary presentation of Hugo Barra, Vice President, Xiaomi Global & Loic Le Meur, LeWeb Founders- LeWeb’13 Paris – [LeWebYouTube channel, Dec 11, 2013]

    Hugo is a good friend of LeWeb, having joined us several times during his time at Google. This year he updates us on his new role at Xiaomi, running their product portfolio and operations in all markets outside Mainland China. He shares his views on the tech sector in China and where it is headed.


    I. China-based white-box tablet vendors and smartphone vendors were shaping the 2013 global device market which will even more so in 2014

    My analysis of the smartphone market in general was first presented in the Device businesses should have a China-based independent headquarter at least for Asia/Pacific if they want to succeed [‘Experiencing the Cloud’, Jan 28, 2014] and then it was already updated by the recent Chinese smartphone brands to conquer the global market? [‘Experiencing the Cloud’, March 18, 2014] post of mine.

    As a Q4’13 update to The tablet market in Q1-Q3’13: It was mainly shaped by white-box vendors while Samsung was quite successfully attacking both Apple and the white-box vendors with triple digit growth both worldwide and in Mainland China [‘Experiencing the Cloud’, Nov 14, 2013] post of mine I should first add here the following analysis:

    image
    Note that the white-box tablet shipments from China were estimated by company data and Credit Suisse estimates as 7% and 10% higher: 2012: 58M (vs. 54.4M here), 2013: 98M (vs. 89.1M here) (as per the “Figure 30” chart in this blog below). As you see here and later on the conclusion of the Q1-Q3’13 analysis for the tablet market, represented by the title of the previous post will hold for the whole CY2013 as well. The only remarkable change is the sudden jump in Apple iPad sales in Q4, both worldwide and in China. This is, however, only attributed to Q4 introduction of the new iPad Air which was much anticipated for months, thus postponement of new purchases and the peak when it was available. So, for the whole year, my conclusion still holds true,

    imageNote that the 2013 tablet market in China was 17.2M as per the above data, while the 2013 worldwide tablet market was 219.5M per IDC, and 255M according to company data and Credit Suisse estimates (as per the “Figure 30” chart in this blog below). So China was just 7.8% or 6.4% of the worldwide tablet market, while China shipped significantly more, 38.4% of the worldwide tablet market by the Chinese white-box vendors only (the last one according to company data and Credit Suisse estimates). This is 5.5% higher than the share of China-based smartphone vendors in the global 2013 smartphone shipments (32.9%, according to DIGITIMES Research—see well below), although in tablet space only Lenovo was a significant player, while in smartphones Huawei, ZTE, Coolpad and TCL were also signicant ones (being actually in the global Top 10). In addition a much higher portion of that was shipped internally:  about 50% according to company data and Credit Suisse estimates (as per the “Figure 25” chart in this blog below), while for tablets 3M local brand tablets were shipped (as per Analysys International, see the above chart) against 98M of white-box tablets only (as per company data and Credit Suisse estimates), i.e. around 3%. Even taking the DIGITIMES Research’ 54.4M white-box tablet shipment data as the basis, this number will only climb to around 5.5%.

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    Then I need to add here some external analysis as well, for both the smartphone and tablet markets:

    From Taiwan Display IC Sector [Credit Suisse Equity research, March 12, 2014]

    [p. 10] … We are … seeing entry level tablet shifting from 7″ to 8″ with higher resolutions given the competition from large size smartphone (Phablet). Tablet brands also plan to introduce over 10″ models for more commercial applications. …

    China smartphone will continue to proliferate

    Credit Suisse Global Research team estimates global smartphone shipment growth of 18% CAGR in 2013-2016E, while China build smartphone shipment (domestic and export) will see 29% CAGR in 2013-16E. For 2014, we forecast total China smartphone DDI [Display Driver IC] demand of 650-700mn units, up 33-36% YoY, and panel resolution to see faster migration on aggressive pricing and less capacity constraint …

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    [p. 10] Tablet unit demand still solid in 2014 post strong 2013

    Tablet set shipment growth is expected to slow down in 2014 (34% YoY) after a strong 57% YoY growth in 2013 and 107% YoY growth in 2012. However, we believe Chinese tablet makers (brand and whitebox) … will outgrow the industry thanks to further cost reduction …

    image

    [p. 11] We estimate there will be limited growth for high-end or branded tablets in 2014, with the exception of Samsung (60% YoY growth). We believe the overall tablet demand will be driven by the Chinese, such as Lenovo and whitebox makers.

    image
    [2011: 73M*, 2012: 163M, 2013: 255M, 2014E: 342M]
    * Samsung’s own data: 2010: 1.5M, 2011: 5.8M, 2012: 16.6M
    ** Note that the white-box tablet shipments were estimated by DIGITIMES Research as lower: 2012: 54.4M (vs. 58M here), 2013: 89.1M (vs. 98M here)
    (as per the 1st chart in this blog above)


    2014 China smartphone market and industry – Forecast and analysis [DIGITIMES Research, March 24, 2014]

    imageDigitimes Research expects demand in the domestic China market to reach 422 million smartphones in 2014, with 278 million units contributed by China-based smartphone vendors. The continued expansion by international vendors Samsung and Apple will push up their sales to almost 144 million units, accounting for nearly 4% growth from 2013. As competition in the local market heats up, China-based vendors are turning to overseas markets in order to maintain their shipment volumes, especially taking an aggressive approach to penetrating emerging markets, which hold higher barriers for overseas vendors to enter.

    The outlook for the 2014 China domestic smartphone market is that fewer local brands will remain to compete in the market. With the general enhancement of software-hardware specifications in 2013, brand-building and channel management have become the key to sustainability. Vendors without the advantage of substantial product differentiation will face the challenge of being eliminated in the short term. On the other hand, local vendors need to deal with inventories with discretion to counter the vigorous attacks initiated by international vendors in the domestic market.

    In terms of the China smartphone industry, Digitimes Research expects global shipments of China-based smartphone vendors to reach 412 million units in 2014, a 30.7% increase from 2013. Overseas shipments will account for about 126 million units. While shipments to mature markets are expected to grow on a small scale, shipments to emerging markets are expected to expand at strong rates, mainly due to the low base they are starting from.

    In the forecast for shipments from different vendors in 2014, Lenovo and Huawei are expected to reach 50 million units. Huawei has been engaged in overseas markets for a long time so its export portion outweighs Lenovo’s. ZTE’s and CoolPad‘s shipments are expected to reach 35.5 million units. TCL [Alcatel] has shown a significant growth in exports with shipments expected to exceed 26 million units in 2014, ranking No. 5 on the list. Second-tier vendors Gionee and Xiaomi are expected to ship 20 million units.

    Digitimes Research: China smartphone shipments to decline slightly in 1Q14 [DIGITIMES Research, Feb 7, 2014]

    China-based handset companies are expected to see their shipments of smartphones decline lightly in the first quarter of 2014, after combined shipments posted a 13% sequential growth in the previous quarter, according to Digitimes Research.

    Efforts by brand vendors to clear out entry-level models in previous quarters and increased overseas shipments by Huawei, ZTE and TCL contributed to shipment gains the fourth quarter of 2013.

    Additionally, first- and second-tier vendors also launched a number of new models in the fourth quarter to meet demand during the year-end buying season, ramping up total shipments in the quarter.

    For all of 2013, China-based handset makers shipped a total of 314 million smartphones, increasing 62.4% from a year earlier, Digitimes Research said.

    Second-tier vendors, including Xiaomi Technology, TCL, Oppo Mobile and Gionee managed to ship over 15 million smartphones in 2013.

    Digitimes Research: Global smartphone shipments to top 1.24 billion units in 2014 [DIGITIMES Research, Jan 14, 2014]

    Global smartphone shipments are expected to top 1.24 billion units in 2014, with Samsung Electronics, Apple, LG Electronics, Sony Mobile Communications, Lenovo, Huawei, Microsoft, ZTE, Coolpad and TCL serving as top-10 vendors, according to Digitimes Research.

    Apple may see its shipments double in 2014 largely due to increased shipments to China and Japan as it will benefit from its cooperation with the largest telecom operators in the two countries, said Digitimes Research.

    The growth rate for Samsung will be limited in 2014 as its sales in the US, China and Japan will be depressed by growing popularity of iPhones.

    China-based Lenovo, Huawei and Coolpad are expected to step up their efforts to boost sales in overseas markets after being enlisted among the top-10 vendors due to higher shipment volumes in the home market in China.

    However, TCL and ZTE will continue to ship smartphones to overseas markets mainly, but will also strengthen sales in China, with domestic sales to account for less than 50% of their total shipments in 2014, commented Digitimes Research.

    2014 global smartphone market forecast [DIGITIMES Research, Jan 7, 2014]

    imageIn 2014, smartphones are expected to continue penetrating rapidly into emerging markets such as Russia, India, Indonesia and Latin America, while China’s smartphone shipments will see weakened on-year growth in the year, but still enormous volume. This report will provide in-depth analyses to forecast whether global smartphone shipments in 2014 will maintain a growth similar to that of 2013 and what the global shipment scale will reach in 2014.

    Within the top-10 smartphone vendors in 2013, four of them are from China and in 2014 more China-based vendors are expected to enter the top 10. This report will also analyze which China-based vendors will have the best chance to become parts of the top-tier players.

    How Microsoft’s acquisition of Nokia’s handset business will affect Windows Phone products’ shipment growth in 2014 and shake Android and iOS’ domination in the smartphone market, as well as the possibility of Amazon and Facebook joining the smartphone competition in 2014 and their potential influence to the market will also be analyzed within the report.

    Digitimes Research: Global smartphone shipments to reach 1.24 billion in 2014 [DIGITIMES Research, Nov 25, 2013]

    Global smartphone shipments are expected to reach about 1.24 billion in 2014, up 30% on year [i.e. 954M in 2013], according to Digitimes Research.

    The increase in growth is expected to be driven by demand in Russia, India, Indonesia and Latin America countries.

    Digitimes Research believes that Samsung Electronics will lead the way in shipments followed by Apple, LG Electronics, Sony, Lenovo, Huawei Device, Microsoft, ZTE, Coolpad and TCL [Alcatel].

    Android and IOS operating systems are expected to be used in about 93% of the devices shipped in 2014, added Digitimes Research.


    Global tablet market – 4Q 2013 [DIGITIMES Research, March 24, 2014]

    image

    Global tablet shipments grew 25% sequentially and 29.8% on year to reach 78.45 million units in the fourth quarter of 2013 benefiting mainly by economic recoveries of Europe and North America, which relatively boosted demand during the year-end holidays.

    Digitimes Research: Global tablet shipments in 1Q14 to drop over 20% sequentially [DIGITIMES Research, Jan 27, 2014]

    An estimated 62.14 million tablets will ship globally in the first quarter of 2014, decreasing 20.8% on quarter but increasing 10.9% on year, according to Digitimes Research.

    iPads will account for 29% of shipments, brand models launched by vendors other than Apple for 36.7%, and models launched by white-box vendors for 34.3%, Digitimes Research indicated.

    Of brand tablet shipments in particular, Android-based models will take up 50.5%, iOS-based 44.1% and Windows-based 5.4%. 7.9-inch models will account for 24.8% of the shipments, followed by 7-inch models with 20.2%, 9-inch models with 19.6%, 10-inch models with 18.3% and 8-inch models with 15.3%. In terms of touch solutions, GFF will account for 47.8% of shipments, GF2 for 42.9%, OGS for 5.3%, GG for 2.7% and G1F for 1.3%.

    Among vendors, Apple will have the largest global market share at 29%, followed by Samsung Electronics with 23.1%, Lenovo 4.7%, Asustek Computer 2.7%, Amazon 1%, Acer 1%, Microsoft 0.9%, Dell 0.8%, Google 0.5% and Hewlett-Packard 0.5%.

    Taiwan-based ODMs/OEMs will ship 22.5 million tablets in the quarter, taking up 55.1% of total brand model shipments. Foxconn Electronics will account for 51.7% of shipments, Pegatron 34.8%, Compal Electronics 5.1%, Wistron 4.3% and Quanta Computer 4.1%.

    Digitimes Research: Global tablet shipments in 4Q13 estimated at 78.45 million units [DIGITIMES Research, Jan 24, 2014]

    There were an estimated 78.45 million tablets shipped globally in the fourth quarter of 2013, increasing 25% on quarter and by 29.8% on year, according to Digitimes Research.

    iPads accounted for 29.7% of shipments, brand models launched by vendors other than Apple for 36.6%, and models launched by white-box vendors for 33.8%, Digitimes Research indicated. Android-based models took up 51.2% of the shipments, iOS-based 44.9% and Windows-based 3.9%. 7-inch models accounted for 31% of the shipments, followed by 9-inch models with 25.4%, 7.9-inch models with 19.7%, 10-inch models with 15.8% and 8-inch models with 7.6%. In terms of touch solutions, GF2 accounted for 41.5% of shipments, GFF for 38.6%, OGS for 9.8% and GG for 9.5%.

    Among vendors, Apple had the largest global market share at 29.7%, followed by Samsung Electronics with 17.4%, Amazon 5.4%, Lenovo 4.2%, Asustek Computer 2.8%, Google 1.4%, Acer 1%, Dell 0.8% and Hewlett-Packard 0.5%.

    Taiwan-based ODMs/OEMs shipped 32.8 million tablets in the fourth quarter, with Foxconn Electronics accounting for 52.7%, Pegatron 24.4%, Compal Electronics 12%, Quanta Computer 6.6% and Wistron 4.2%.


    II. Asia is following different patterns of mobile use than the United States – the case of China and South Korea

    The Post-PC Era: Is the U.S. losing its grip on the software industry? [Flurry Blog, Aug 29, 2013]

    image

    Just five years ago, PCs reigned supreme and so did the US software industry. In 2008, U.S. companies produced an estimated 65% of all PC software units sold on a worldwide basis.

    In only half a decade, smartphones, tablets, and perhaps most importantly, apps, have changed the nature of the software industry. In this post we look at where apps are being developed and used and discuss the implications of that for the Post-PC Era software industry.

    More Apps Are Now Being Created Outside The U.S. Than Inside The U.S.

    … By June of this year only 36% of the apps we measure were made in the U.S.A. …

    U.S. Made Apps Still Dominate App Engagement, But Their Share Is Slipping

    imageOf course, some apps enjoy much greater use than others, so we next considered how the picture changes if apps are weighted by total time, which takes into account both user numbers and engagement. Once time is taken into account, things look considerably better for the U.S., suggesting that, on average, user numbers or engagement are greater for apps made in the U.S. than for apps created elsewhere. That makes sense given the size of the U.S. population, the fact that it was an app pioneer country, and the number of English speakers in other countries who might be able to use U.S.-made apps without any localization. Nonetheless, even the weighted percentage of apps made in the U.S.A. has dropped in the past year.

    Use of Local Apps Is Strong In China

    This should not lull U.S. app developers into a false sense of security however. That becomes evident from examining where the apps used by people in particular countries are made. That’s what the chart below does, starting with the United States. Nearly sixty percent (59%) of the time U.S. users spend in apps is spent in apps developed domestically, meaning that more than 40% of the app time of U.S. consumers is already spent in apps developed in other countries.

    And while U.S. made apps are used elsewhere, unsurprisingly, people in many other countries spend a significant amount of their app time in apps developed in their home countries. For example, 13% of the time spent in apps in the UK is spent in apps made in the UK and 8% of the time spent in apps in Brazil is spent in apps made in Brazil. But as is so often the case, it’s China where things get really interesting. Nearly two-thirds of the time spent in apps in China is spent in apps made in China. U.S. made apps only account for 16% of total time spent in apps in China. The size and growth rate of the Chinese app market imply that the worldwide share of time spent in apps that are produced in the U.S. can be expected to contract further.


    China Report: Device and App Trends in the #1 Mobile Market [Flurry Blog, July 23, 2013]

    image

    In June of this year Flurry Analytics measured 261,333,271 active smartphones and tablets in China. That represented a whopping 24% of the entire worldwide connected device installed base measured by Flurry.
    image
    Smartphones and tablets are not just about fun and games in China. Compared to iOS device owners elsewhere, the average time Chinese owners spend using Books, Newsstand, Utility, and Productivity apps is greater than the rest of the world (1.8x, 1.7x, 2.3x, and 2.1x respectively). On average Chinese owners of Android devices spend more than seven times as much time in Finance apps (7.4x) than Android owners elsewhere spend in Finance apps, but they also spend more time in Entertainment apps (1.7x).

    The South Korea Report: Device and App Trends in The First Saturated Device Market [Flurry Blog, Oct 14, 2013]

    image

    In August of this year Flurry Analytics measured 33,527,534 active smartphones and tablets in South Korea. While that was only 2.8% of the entire worldwide connected device installed base Flurry measures, South Korea is an important market for connected devices for several reasons. First, it is the first connected device market in the world to approach saturation. Second, it is Samsung’s home market, and largely as a consequence of that, more of the devices in use there are manufactured by domestic firms than is the case for any other country. Finally, it is home to more phablet fans than anywhere else.

    imageSocial networking accounts for a significant share of app activity in South Korea, as it does in many other countries. Tool apps are used heavily by South Korean Android users, and entertainment apps capture a lot of time spent in iOS apps.

    Compared to app users elsewhere, South Koreans over-index on Entertainment apps on iOS and several Android app categories (Media / Video, Photography, Lifestyle, Shopping, and Tools).

    Given that South Korea’s rapid period of connected device growth was ushered in by the phablet, it is perhaps not surprising that it continues to surpass the rest of the world in its preference for that form factor. As shown below, in a worldwide sample of 97,963 iOS and Android devices, only 7% were phablets, but for South Korea that percentage was 41%. The appeal of phablets in South Korea appears to suppress the tablet market there. Worldwide, 19% of the devices in our sample were tablets compared to only 5% in South Korea.

    image


    Worldwide:

    Size Matters for Connected Devices. Phablets Don’t. [Flurry Blog, April 1, 2013]

    image

    image

    image

    … For this study, we focused on the top 200 device models, as measured by active users in Flurry’s system, which represent more than 80% of all usage. Doing so, five groups emerged based on screen size:

    1. Small phones (e.g., most Blackberries), 3.5” or under screens
    2. Medium phones (e.g., iPhone), between 3.5” – 4.9” screens
    3. Phablets (e.g., Galaxy Note), 5.0” – 6.9” screens
    4. Small Tablets (e.g., Kindle Fire), 7.0” – 8.4” screens
    5. Full-size tablets (e.g., the iPad), 8.5” or greater screens

    The ‘Is it a phone or is it a tablet’ devices otherwise known as phablets have attracted interest, but currently command a relatively small share (2%) of the device installed base, and their share of active users and sessions is also relatively small.

    Android owns the phablet market and also has the greatest proportion of devices using small tablets. iOS has the greatest share of active devices using large tablets.

    … notice that nearly a third of time spent playing games take places on larger devices, namely full-sized tablet, small tablets and phablets. And while they command consumer time spent, they represented only 15% of device models in use in February and 21% of individual connected devices. These differences are statistically significant.

    Studying books and videos, it’s somewhat surprising that tablets, which possess larger screens, do not see a larger proportion of time spent. An explanation for the high concentration in time spent in smartphones could be that consumers watch videos from their smartphones on-the-go (e.g., commuting to work on public transit), whereas they opt for a bigger screen to watch video (e.g., computer or TV) when at work or home. We expect that tablets may represent a greater share of time spent in book and video apps in the future as tablet ownership expands and tablet owners branch out into more types of apps.

    From our study, consumers most prefer and use apps on medium-sized smartphones such as the Samsung Galaxy smartphones and full-sized tablets like the iPad.  In particular, smaller smartphones under-index in terms of app usage compared to the proportion of the installed base they represent, and would suggest they are not worth developers’ support.

    Mobile Use Grows 115% in 2013, Propelled by Messaging Apps [Flurry Blog, Jan 13, 2014]

    image

    … the segment that showed the most dramatic growth [worldwide] in 2013 was Messaging (Social and Photo sharing included). The growth in that segment should not come as a surprise to many, given the attention that messaging apps such as WhatsApp, WeChat, KakaoTalk, LINE, Facebook Messenger and SnapChat have received in the press. What is surprising, however, is that the rate of growth (tripling usage year-over-year) dramatically outpaced other popular categories. This type of growth could explain the high valuation Facebook has allegedly put on SnapChat, or Facebook’s rush to add direct messaging in Instagram, an app frequented by teens.

    Another explosive growth year in mobile has passed. On December 31st, 2013 at 11:59 pm, Flurry Analytics tracked a record 4.7 Billion app sessions in a single day, for a total of 1.126 Trillion sessions for the whole year. Those are some very, very big numbers. …

    The Truth About Cats and Dogs: Smartphone vs Tablet Usage Differences [Flurry Blog, Oct 29, 2012]

    … Taking a snapshot in September 2012 from Flurry Analytics, that totaled more than 6 billion application sessions across approximately 500 million smart devices, Flurry provides a comprehensive comparison between smartphones and tablets, spanning age, gender, time of day usage, category usage and engagement metrics.  For age and gender comparisons, Flurry leverages a panel of more than 30 million consumers who have opted-in to share demographic data. …

    The chart below compares the time spent across app categories between smartphones and tablets.   At a high level, consumers spend more time using tablets for media and entertainment, including Games (67%), Entertainment (9%) and News (2%) categories which account for nearly four-fifths of consumption on tabletsSmartphones claim a higher proportion of communication and task-oriented activities with Social Networking (24%), Utilities (17%), Health & Fitness (3%) and Lifestyle (3%) commanding nearly half of all usage on smartphones.  Games are the most popular category on both form factors with 67% of time spent using games on tablets and 39% of time spent using games on smartphones.  Further reinforcing that tablets are “media machines” is the fact that consumers spend 71% more of their time using games on tablets than they spend doing so on smartphones.

    image

    Indie Game Makers Dominate iOS and Android [Flurry Blog, March 6, 2012]

    imageFor the first two months of 2012, Flurry Analytics measured that more than half of all end user sessions were spent in games. Across January and February, Flurry observed sessions across a sample of more than 64 billion applications sessions across more than 500 million iOS and Android devices.


    United States
    :

    Apps Solidify Leadership Six Years into the Mobile Revolution [Flurry Blog, April 1, 2014]

    imageLast year, on the eve of the fifth anniversary of the mobile revolution, Flurry issued its five-year report on the mobile industry. In that report we analyzed time-spent on mobile devices by the average US consumer. We have run the same analysis, using data collected between January and March of 2014, and found some interesting shifts that we are sharing in this report

    imageThe chart below on the left takes a closer look at app categories. Comparing  them to last year, gaming apps maintained their leadership position at 32% of time spent. Social and messaging applications, including Facebook, increased share from 24% to 28%. Entertainement (including YouTube) and Utility applications maintained their positions at 8% each, while productivity apps saw their share double from 2% to 4% of the overall time spent.

    Flurry Five-Year Report: It’s an App World. The Web Just Lives in It
    [Flurry Blog, April 3, 2013]

    … On the five-year anniversary of launching Flurry Analytics, we took some time to reflect on the industry and share some insights. First, we studied the time U.S. consumers spend between mobile apps and mobile browsers, as well as within mobile app categories. Let’s take a look. …

    image

    Mobile App Usage [in U.S.] Further Dominates Web, Spurred by Facebook [Flurry Blog, Jan 9, 2012]

    image

    The chart compares how daily interactive consumption has changed over the last 18 months between the web (both desktop and mobile web) and mobile native apps.  For the web, shown in green, we built a model using publicly available data from comScore and Alexa.  For mobile application usage, shown in blue, we used Flurry Analytics data, which tracks anonymous sessions across more than 140,000 applications.  We estimate this accounts for approximately one third of all mobile application activity, which we scaled-up accordingly for this analysis.

    With mobile app usage soaring, Flurry additionally studied which categories most occupy consumers’ time.  The results are shown in the pie chart below.

    imageFurther considering that Flurry does not track Facebook usage, the Social Networking category is actually larger.  Combined, from just what Flurry can see, these two categories control a whopping 79% of consumers’ total app time.  This breakdown in usage reveals Facebook’s inherent popularity as the leading social network, as well as how important controlling the game category is for all platform providers.  As we drill down into the category data, consumers use these two categories more frequently, and for longer average session lengths, compared to other categories.

    2014 will be the last year of making sufficient changes for Microsoft’s smartphone and tablet strategies, and those changes should be radical if the company wants to succeed with its devices and services strategy

    For the company’s most recent “ONE Microsoft” strategy see:
    Microsoft reorg for delivering/supporting high-value experiences/activities [‘Experiencing the Cloud’, July 11, 2013]
    How the device play will unfold in the new Microsoft organization? [‘Experiencing the Cloud’, July 14, 2013]
    Update: There are extremely worrying signs on the horizon as per Jan 27, 2014:
    MediaTek MT6592-based True Octa-core superphones are on the market to beat Qualcomm Snapdragon 800-based ones UPDATE: from $147+ in Q1 and $132+ in Q2
    End of the Nokia “magic” hurting European and Asian consumers while mobile carriers are uncertain about the future under the Microsoft brand
    End of Update
    As 2014 will be the last year of “free ride” in the smartphone and tablet spaces for ARM-based competitors of Intel – at least what Intel is insisting again [‘Experiencing the Cloud’, Jan 17, 2014] it is time to summarize the ARM-based opportunities for 2014 (note that Intel’s goal in the tablet space is only 40 million units, both Android and Windows):

    imageCompare everything to 2014 global notebook demand forecast [DIGITIMES Research, Dec 5, 2013] which estimates that global notebook shipments in 2014 will reach around 160 million units, down from a peak of over 200 million in 2011, but the drop in 2014 will be lower than the on-year drop in 2013, with new market developments, new product opportunities, and changes in the major players’ strategies all playing critical roles in the IT industry’s future trends.

    Digitimes Research: Global smartphone shipments to top 1.24 billion units in 2014 [Jan 14, 2014]
    Global smartphone shipments are expected to top 1.24 billion units in 2014, with Samsung Electronics, Apple, LG Electronics, Sony Mobile Communications, Lenovo, Huawei [according to the company: 52 million units in 2013 vs 60 million target] , Microsoft, ZTE, Coolpad and TCL serving as top-10 vendors, according to Digitimes Research.
    Apple may see its shipments double in 2014 largely due to increased shipments to China and Japan as it will benefit from its cooperation with the largest telecom operators in the two countries, said Digitimes Research.
    The growth rate for Samsung will be limited in 2014 as its sales in the US, China and Japan will be depressed by growing popularity of iPhones.
    China-based Lenovo, Huawei and Coolpad are expected to step up their efforts to boost sales in overseas markets after being enlisted among the top-10 vendors due to higher shipment volumes in the home market in China.
    However, TCL and ZTE will continue to ship smartphones to overseas markets mainly, but will also strengthen sales in China, with domestic sales to account for less than 50% of their total shipments in 2014, commented Digitimes Research.
    This article is an excerpt from a Digitimes Research Special Report (2014 global smartphone market forecast).
    Digitimes Research: China smartphone-use application processor shipments edge up 2.4% in 4Q13 [Jan 15, 2014]
    Shipments of application processors for smartphone applications to China grew 2.4% sequentially and 20.8% on year in the fourth quarter of 2013, according to data compiled by Digitimes Research.
    MediaTek saw its AP shipments decline 3.9% sequentially in the fourth quarter due to inventory checks at clients and a high growth recorded in the previous quarter.
    However, it was a 20% sequential shipment decline suffered by Qualcomm the fourth quarter that weakened the growth momentum of the application processor sector, said Digitimes Research.
    Meanwhile, MediaTek has been shifting its focus to the high-margin segment, instead of seeking high shipment growth. China-based Spreadtrum Communications was hit with high inventory of TD-SCDMA chips and slow sales of its dual- and quad-core solutions, Digitimes Research indicated.
    Qualcomm also saw its performance weaken in the fourth quarter as its QRD (Qualcomm reference design) chips were less competitive than those offered by rivals in terms of product features.
    This article is an excerpt from a Chinese-language Digitimes Research report. Click here if you are interested in receiving more information about the content and price of a translated version of the full report.
    Digitimes Research estimates that in 2014 global tablet shipments will reach 289 million units [Dec 31, 2013]
    China white-box makers add extra value to tablets as cost reduction is no longer possible [DIGITIMES Research, Jan 16, 2014]
    China white-box players have not been able to lower their Wi-Fi-based tablets’ prices since the third quarter of 2013 because there is no room for further reductions in their BOM costs.
    The average BOM cost for a white-box tablet – most of which adopted a dual-core processors – stood at about US$25 as of the fourth quarter of 2013. Dual-core processor pricing could not drop any further, as their average prices came to about US$4, only less than US$1 higher than that of a single-core one.
    Memory and 7-inch TN LCD panels are the two key components that account for major shares of white-box tablet BOM costs. However, most panel suppliers have been only willing to upgrade specifications instead of dropping their quotes, and therefore, white-box players have been left with upgrading their devices with better panels without an option of reducing the panel cost.
    While cost reduction is no longer a feasible way to attract consumers, many white-box players have turned to push tablets with phone functions to increase their devices’ functionalities and value. The devices also provide higher gross margins for vendors.
    Digitimes Research estimates that currently, 80% of white-box tablets are available in countries other than China, because white-box tablets with phone functions have seen rising demand in Russia and other markets in Eastern Europe and Southeast Asia since the second half of 2013.
    China white-box players’ partnerships with regional brand vendors in emerging markets have also helped raise local consumers’ demand for tablets with phone functions.
    In the first half of 2013, most white-box tablets with phone functions adopted China-based Allwinner Technology’s solution which combined an entry-level single-core processor with a discrete baseband module. However, many white-box device makers have turned to MediaTek solutions for their tablets since the second half of 2013 after the Taiwan-based chipmaker also integrated a baseband chip into its tablet processor solution.
    MediaTek’s solution is more expensive, but its support for product development and hardware design has given it an upper hand over competitions. Meanwhile, independent design houses (IDHs), which provide white-box players with product design services, also started to design tablets using MediaTek’s smartphone processors in the second half of 2013, which prompted white-box players to adopt MediaTek’s solutions.
    Digitimes Research estimates that tablets with phone functions will account for 40% of 7-inch white-box tablet shipments in 2014, up from 20% in 2013.
    image

    In 2014, smartphones are expected to continue penetrating rapidly into emerging markets such as Russia, India, Indonesia and Latin America, while China’s smartphone shipments will see weakened on-year growth in the year, but still enormous volume. Within the top-10 smartphone vendors in 2013, four of them are from China and in 2014 more China-based vendors are expected to enter the top 10.
    Three China-based handset vendors increase component deliveries [DIGITIMES, Dec 11, 2014]
    China-based handset vendors Xiaomi Technology, Gionee and Hisense have been taking increasing deliveries of panels and touch panels from suppliers in preparation for launching new models during the peak period before the 2014 Lunar New Year at the end of January, according to Taiwan-based supply chain makers.
    Other China-based vendors including Lenovo, Huawei Device and Oppo have begun to follow suit, the sources indicated.
    Xiaomi has seen success in marketing its high-end Xiaomi 3, mid-range Xiaomi 2S and entry-level Hong-mi (Red Rice), the sources noted.
    Gionee focuses on marketing high-end smartphones priced above CNY2,000 (US$328) through general retail chains without cooperation with China’s three mobile telecom carriers, the sources indicated. Gionee has shipped more than two million smartphones a quarter so far in 2013.
    Hisense is among several licensed vendors of 4G smartphones and has launched the 5-inch X6T, its first 4G smartphone featuring TD-LTE, LTE-FDD, TD-SCDMA, WCDMA and GSM, on 12 frequency bands, the sources noted. Hisense has taken delivery of components for use in more than one million handsets to be launched before the 2014 Lunar New Year, the sources noted.
    China market: Xiaomi lowers price for Hongmi smartphone [DIGITIMES, Jan 7, 2014]
    China-based vendor Xiaomi Technology has reduced the retail price for its budget TD-SCDMA smartphone, the Hongmi, launched in August 2013, from CNY799 (US$132) to CNY699, heralding upcoming competition in the Android smartphone segment in China, according to industry watchers.
    Rival vendor Huawei is likely to counteract by slashing the prices of its Honor-branded budget smartphones, while other local brands in China are also expected to follow suit soon, said the observers.
    Optimizing its policy of offering smartphones with high hardware specifications and yet at low prices, Xiaomi has managed to ramp up its shipments to over three million units a month and is expected to ship over 40 million smartphones in 2014, the sources estimated. [According to Xiaomi: “7.2 million devices … in 2012 and 18.7 million …bought in 2013. … for 2014 – the CEO expects forty million Xiamoi smartphones to be bought”]
    Asustek expected to ship 2014 target of 5 million smartphones [DIGITIMES, Jan 7, 2014]
    Asustek Computer unveiled three ZenFone-series smartphones for the opening of CES 2013. Viewing that ZenFone models have comparatively high price-performance ratios, Asustek will be able to hit its target shipments of five million smartphones for 2014, and is likely to ship 8-10 million units, according to market analysts.
    The three ZenFone models will initially launch in the Taiwan, China and Southeast Asia markets in March at contract-free retail prices of US$99 for the 4-inch model, US$149 for the 5-inch, and US$199 for the 6-inch.
    All three models are equipped with Intel Atom processors and Asustek will launch 3-4 models also with Atom processors in the second half of 2014, the sources indicated.
    Since Intel has offered incentives to attract PC vendors to adopt its platforms for smartphones, Asustek is expected to procure Atom processors at discount prices and receive subsidies from Intel for marketing the devices, the sources said.
    Asustek likely to release smartphone orders to China ODMs in 2H14, says paper [DIGITIMES, Jan 15, 2014]
    Asustek Computer does not rule out the possibility of tying up with handset ODMs in China for the production of smartphones in the second half of 2014, the Chinese-language Economic Daily News (EDN) has quoted company CEO Jerry Shen as saying.
    After unveiling five new models at the recently concluded CES 2014, Asustek plans to launch another five smartphones in the second half of the year, and therefore it needs more ODMs to support production, Shen was quoted as indicating.
    The three ZenFone-series smartphones out of the five models unveiled by Asustek at CES 2014, with displays sized in 4-, 5-, and 6-inch, will be available for US$99, US$149 and US$199 unlocked, respectively, and are designed to take on China-based rivals in the entry-level smartphone segment.
    The possible switch of orders to China-based ODMs may affect its current production partners in Taiwan, including Wistron and Pegatron, said the paper.
    Digitimes Research: Asustek ZenFone smartphones have lower price-performance ratios than comparable models from China [Jan 17, 2014]
    Asustek Computer unveiled three ZenFone-series smartphones at CES 2014 and will initially launch the models in the Taiwan, China and Southeast Asia markets in March with prices comparable to low-cost models offered by China-based Xiaomi Technology and Huawei. But the price-performance ratios of the ZenFones will be still lower than rival models from China-based vendors due to the use of different marketing channels, according to Digitimes Research.
    China-based vendors such as Huawei and Coolpad have been duplicating the business model initiated by Xiaomi by introducing entry-level models with higher hardware specifications and marketing the gadgets mainly through the Internet.
    Leveraging subsidies offered by telecom operators, Asustek has been able to lower prices for its ZenFone models to levels comparable to those offered by Xiaomi, Huawei and Coolpad, but the price-performance ratios are lower than of the Hongmi smartphone from Xiaomi, the Honor 3C from Huawei and the Great God F1 from Coolpad, due to markup costs added by channel operators in China selling the ZenFones.
    Due to the lower price-performance ratios, Asustek’s goal of shipping over five million smartphones in 2014 through a low-pricing model remains hard to achieve, commented Digitimes Research.
    This article is an excerpt from a Chinese-language Digitimes Research report. Click here if you are interested in receiving more information about the content and price of a translated version of the full report.
    Total: ~289+ million
    Apple: 80-90 million
    Non-Apple brand vendors: ~105+ million
    – Samsung: 60-70 million
    Whitebox vendors: ~104 million image
    Apple, Samsung expected to ship 80-90 million, 60-70 million tablets in 2014, say sources [DIGITIMES, Jan 17, 2014]
    Apple and Samsung Electronics will remain as the global top-two tablet vendors in 2014 with expected shipments of 80-90 million and 60-70 million units, respectively, according to Taiwan-based supply chain makers.
    Samsung’s recent launch of its 12.2-inch model is expected to propel Apple to accelerate development of large-size iPads. Market sources indicated that Apple is likely to release a 12.9-inch model by the end of the third quarter at the earliest.
    The two vendors are also expected to continue rolling out new versions of their existing models.
    Samsung is also likely to launch more Galaxy Lite models, with prices going down as low as US$129, the sources indicated, adding that Samsung’s tablet shipments in 2014 are expected to reach 60-70 million units compared to 40 million shipped in 2013.
    Meanwhile, Apple reportedly has asked its production partners and component suppliers to develop new models of 7.9- and 9.7-inch tablets, added the sources.
    Foxconn expected to ship 55-60 million tablets in 2014, say Taiwan makers [DIGITIMES, Jan 16, 2014]
    Foxconn Electronics (Hon Hai Precision Industry) shipped 50 million tablets to become the largest Taiwan-based ODM in 2013 and is expected to ship 55-60 million units to maintain the leading status in 2014, according to supply chain makers.
    Foxconn is the main OEM for iPads and has undertaken ODM production of Amazon tablets, the sources noted.
    Pegatron, with orders for iPad, Surface and tablets launched by Asustek Computer, shipped 25 million units in 2013 and is expected to remain as the second-largest ODM with shipments of 25-28 million units in 2014, the sources indicated.
    With Lenovo and Acer being major clients, Compal Electronics shipped seven million tablets in 2013. With potential OEM orders for iPad mini with Retina display and additional ODM orders from Amazon, Compal is likely to ship 14 million tablets in 2014, the sources estimated.
    Quanta Computer shipped 15-16 million tablets in 2013, of which a large portion were Nexus models for Google, the sources noted. Although Quanta may obtain OEM orders for a 12.9-inch iPad, shipments in 2014 will be low volume, the sources indicated. Therefore, Quanta’s 2014 tablet shipments are expected to remain at 15-16 million units.
    Digitimes Research: Non-Apple brand vendors to ship 105 million tablets in 2014 [Nov 19, 2013]
    Global tablet shipments are expected to reach 289 million units in 2014, up 23.6% on year. The growth, however, will be weaker than that for smartphones due to the fact that the tablet market has already entered the maturity stage, according to Digitimes Research’s latest figures.
    In 2014, non-Apple first-tier brand vendors’ products are expected to have more room for price cuts, making their products even more competitive in China than their white-box competitors. The lower pricing means retailers will be more eager to promote their products. The gap in terms of functionality between Google’s official Android operating system and Android Open Source Project (used mostly by China white-box vendors) are also expected to be widen. As a result, the non-Apple first-tier vendors’ combined shipments are expected to grow dramatically to 105 million units in 2014, slightly surpassing China white-box vendors’ combined shipments of 104 million units, according to estimates by Digitimes Research.
    Although the fifth-generation iPad (Air) is expected to attract consumers and stimulate replacement demand, the device’s high pricing are expected to limit iPad series products’ shipment growth in 2014 with the volume to reach only 80 million units.
    As for brand vendors’ rankings, Apple and Samsung Electronics will remain in the top two in 2014. Since Samsung will adopt more aggressive marketing and pricing strategies in 2014, its shipments will reach 52.5 million units, reducing its gap with the market leader Apple. Lenovo, as the largest PC vendor worldwide and with advantages in its home market of China, is expected to ship 9.5 million units in 2014 to take third place in the tablet market.
    Having failed to obtain orders for the next-generation Google Nexus tablets, Asustek Computer is expected to step up promoting its own-brand tablets, and it will ship nine million units in 2014, becoming the fourth largest vendor.
    Acer will have a strong presence in entry-level segment, shipping 6.7 million tablets in 2014 to take sixth place, while Google will be the fifth largest vendor. Amazon‘s [5.45 million units in 2013 #5 with that in 2013] and Microsoft‘s shipments [max ~2-3 million of Surface Pro and ??? of Surface] will stay flat or grow only slightly on year.
    Digitimes Research expects 7-inch models to remain as the mainstream size for branded tablets in 2014 with shipments set to reach 89.1 million units. But the segment’s share of total tablet shipments will drop below 50%. Brand vendors are expected to place more emphasis on 8-inch models as they look to avoid fierce competition in the 7-inch segment, which is crowded with low-price and white-box products. Shipments to the 8-inch segment are expected to reach 30 million units in 2014, triple the volume in 2013 and surpassing 10-inch models’ 25.4 million units.
    As for Taiwan ODMs, their shipments will hit 117 million units in 2014, accounting only for 63% of the global total, down 5.2pp on year. The share will decline because Samsung and Lenovo, the second and the third largest vendors, are making most of their tablets internally.
    To seek lower manufacturing quotes and to diversify risks, brand vendors are expected to further divide their tablet orders among ODMs. Foxconn Electronics (Hon Hai Precision Industry) and Pegatron Technology will remain as the top two ODMs for tablets in 2014. With more orders coming from Apple and Asustek, Pegatron will see significant tablet shipment growth in 2014, narrowing its gap with Foxconn. Compal Electronics is expected to surpass Quanta Computer to become the third-largest table ODM, thanks to orders from Apple and its acquisition of Compal Communication.
    This article is an excerpt from a Digitimes Research Special Report (2014 global tablet demand forecast). Visit our latest Special reports.

    More information (going back to end of July 2013) which is directly related to the possible changes on the 2014 markets in terms of 2014 will be the last year of “free ride” in the smartphone and tablet spaces for ARM-based competitors of Intel – at least what Intel is insisting again [‘Experiencing the Cloud’, Jan 17, 2014]:

    Leading PC vendors of the past: Go enterprise or die!

    Nov 5, 2013: Acer Chairman and CEO J.T. Wang Tenders Resignation

    … J.T. Wang, chairman and CEO of Acer, said, “Acer encountered many complicated and harsh challenges in the past few years. With the consecutive poor financial results, it is time for me to hand over the responsibility to a new leadership team to path the way for a new era.” …

    What I found after carefully analyzing the above outcome is summarized in the titles of the detailed sections of this post:

    1. To be great only for consumers was not enough to survive
    2. Taiwan is still confused
    3. How Acer’s “new strategy” that has been in place since April 1, 2011 came to an end
    4. The road which lead to Acer downfall


    1. To be great only for consumers was not enough to survive

    THE LATEST EPISODES showing what was great from a general consumer point of view but not enough by far from enterprise point of view:

    We would all like to be a touch smarter, a touch cooler, a touch classier, and a touch simpler… With Acer it is possible, explore beyond limits with our touch & type products.
    IFA BERLIN 2013. For the those who missed the latest designed ‘Touch’ innovations from Acer. The Iconia A3: 10.1″ display with wide viewing angle and immersive sound. The Aspire R7: Award wining designed for touch notebook with active pen. The Liquid S2: Full HD 6″ display with 4K recording.
    Highlights from Acer’s Computex Global Press Conference, product booth, and Tiësto party
    See what happended during Acer’s Global Press Conference in New York City on May 3rd, 2013. Redefining the computing experience.

    AcerCloud™ – Be Free! [Acer YouTube channel, Oct 23, 2012]

    AcerCloud lets you access your photos, music, videos and documents wirelessly and simultaneously on all devices anytime and anywhere – it enriches your life with more freedom! See how AcerCloud saves Roy from Major embarrassment! -http://bit.ly/AcerCloud

    AND BACK THEN: May 9, 2011: Interview [AllThingsD]: Ousted Acer CEO Gianfranco Lanci Talks About His Departure

    … Lanci said he was pushing the company to become more mobile-focused and more global. Acer, he said, needed to look beyond Taiwan as the world shifted to one in which Intel and Microsoft had less power and computer makers needed to do more work for themselves. … “The real major issue was doing that in Taiwan, this was not possible,” Lanci said. “We needed to go outside Taiwan, be it China or India or even the U.S. or Europe, wherever you can find software resources, software know-how.”

    What Lanci wanted to move beyond:

    Some highlights of the Acer Global Press Conference held in New York on November 23, 2010. Clear.fi, the Acer media sharing system, evolves with the introduction of some brand new products. Iconia, dual screen device, offers an entirely new touch experience, the new tablets ensure HD entertainment and Alive, the next generation content store, provides users with content tailored to their personal interests.
    Dual-screen, multi-touch: ICONIA is the new 14-inches tablet that incorporates the best features of any notebook or tablet device and much more! Thanks to its innovative concept ICONIA was the proud winner of the ‘Last Gadget Standing’ competition at CES 2011, Las Vegas. Welcome to a brand new computing and touch experience!
    Take a closer look at liquid mini, the compact and stylish Acer smartphone that packs maximum possibilities in a minimum size. Discover how many features are enclosed in this charming Android smartphone: multi-touch display, 5 megapixels camera, Acer’s exclusive Social Jogger app that integrates updates from your social network accounts into one feed… and much more!
    At Mobile World Congress in Barcelona the new Acer Iconia Tab family was officially introduced: see here the Iconia Tab A500, with a 10.1 display and Android OS, Iconia Tab A100, 7″ display with Android, and Iconia Tab W500, with 10.1″ display and Windows OS.
    NY Global Press Conference, November 23rd, 2010 – Iconia, the outstanding Acer’s dual screen device with all-point multi touch functionality, and the 10.1″ Windows tablet, completely touch screen but also equipped with a docking device that includes a keyboard, introduced by Jim Wong, Senior Corporate Vice President, Acer Group, President ITGO, Acer Inc.
    NY Global Press Conference, November 23rd, 2010 – Enter into the world of Clear.fi: the smartest way to enjoy multimedia at home. Jim Wong, Senior Corporate Vice President, Acer Group, President ITGO, Acer Inc., explains that contents stored on any Clear.fi enabled devices can be shared seamlessly with the other devices using the same interface. Take also a look to the new 10.1″ tablet that ensure powerful performances, the 7″ tablet, ideal on the go, and, finally, the 4.8″phone that is a real mini tablet!

     

    The Acer Group is the culmination of years of innovation and change. We have become the global group we are today by adhering to the values and principles we established at our foundation. The language of these values may have changed, but our respect for and dedication to them has not.

    ACER GROUP CORE VALUES:

    The way we must act:
    (1) Innovative
    (2) Fast
    (3) Effective

    The pillars on which we must base our actions:

    (1) Value Creating
    (2) Customer-centric
    (3) Ethical
    (4) Caring

    THE ACER GROUP’S MISSION:

    User-friendly technology makes all the difference in today’s world. Indeed, the innovation and breakthroughs that technology brings can change the course of history.” With this introduction, the Acer Chairman delivers a clear message of the responsibilities and opportunities that technology can provide. Breaking down the barriers between people and technology is not an isolated event. It’s an ongoing process that unlocks our potential to bring innovation to life and embrace the challenges of the future.

    As Acer continues to break down barriers, we have the real possibility to make a difference to the world we live in.
    J. T. Wang
    Chairman, Acer Inc.

     

    Lanci, who was replaced as CEO in March, said that the interests that control Acer were worried that his plan would lead to a de-Taiwanization of the company.

    “I said, ‘Look, it is not de-Taiwanization,’” he said. “It is just globalization. If we want to be in the top three (PC makers) in the next three to five years, we need to be a global company and we need to leverage resources wherever they are.”

    Although today’s tablets are a consumer phenomenon, Lanci said the push by Microsoft to deliver Windows on ARM-based chips will help the devices move solidly into the business domain.

    “You can easily think about a tablet thin and light, like the current iPad 2,” he said, but offering everything that the PC offers as well. However, he said that Acer needed to do more to prepare for that world. In addition to boosting its own software capabilities, he said the company needed a different relationship with chipmakers. The PC world, he said, was one of buying and selling components, with pricing and availability based solely on volume. The mobile world, he said, is based on close partnerships and strategic alliances.

    As for who is doing things right, Apple is clearly winning, but there are others also making moves to adjust for the shifting world.

    “I see Samsung is probably doing the right thing,” he said. “HP, maybe. It depends what they are going to do with software and with WebOS.”

    However, he said much of the PC industry is in a similar position where Acer was.

    So with Acer Chairman and CEO J.T. Wang Tenders Resignation as the result of Acer Q3’13 Financial Results: Consolidated Revenue NT$92.15B (US$3.11B), Operating Loss NT$2.57B (US$86.61M), Intangible Asset Impairment NT$9.94B (US$335.13M) leading PC vendors of the past should take advice from Dell Goes Private: 8 Things To Expect [InformationWeek, Nov 4, 2013]

    Dell CEO Michael Dell took the company private to gain more independence from Wall Street investors. Now that the buyout’s cleared, what moves can customers expect?

    After eight months of maneuvering, Dell CEO and founder Michael Dell has finally taken the company private. Dell executives remained tightlipped about the buyout as the process wore on, and as the flailing PC market continued to punish the company’s margins. But now that Dell has officially delisted, many of its enterprise customers no doubt are asking the question: How will this affect me?

    Many have probably been asking the question for months. Activist investors such as Carl Icahn at times appeared to have the upper hand against Michael Dell. It seemed plausible at points that the founder might be ousted from his own company, or that pieces of the company might be sold off.

    And even after it became clear Michael Dell would prevail, questions still remained. Observers widely interpreted that Dell didn’t want the burden of Wall Street’s quarterly scrutiny; after all, it’s hard to invest in new enterprise services when shareholders are howling about PC profits every three months. But now that Dell has rid himself of investor pressure, the question still remains: What will he do with his new flexibility, and how will it help customers?

    Dell North America President PH Ferrand spoke withInformationWeek about Dell’s strategy as a privately held company. Here are eight takeaways from the conversation.

    1. Dell can make investments as a private company that it couldn’t make as a public company.

    Ferrand affirmed one of the buyout process’s dominant narratives: that from Dell’s perspective, Wall Street was more trouble than it was worth. Ferrand said going private will give the company more flexibility. It “might not have been obvious to investors” when the company needed to double down on investments, he said.

    2. Dell sees no reason to make a smartphone but will continue to make PCs.

    “Very few players make money [selling smartphones],” Ferrand said. “We don’t feel we have to be in the space.”

    That’s consistent with what Michael Dell told InformationWeek last year at Dell World. But many of the device manufacturers with which Dell competes have started positioning smartphones as a gateway to consumer sales and BYOD business. Microsoft’s purchase of Nokia’s device business is a notable example. Execs at HP, another company struggling to adjust to the mobile world, have repeatedly indicated that a smartphone is coming.

    Why is Dell still resisting the trend? “The IT market is a $3 trillion business and we are about 2% of that,” Ferrand said. “We don’t need to have phones to get to 3% or 4%.”

    Even so, Ferrand said Dell remains committed to PCs and intends to become a leader in the commercial tablet space. He said he can’t rule out a Dell smartphone eventually but predicted that in the meantime, people will soon stop differentiating between tablets and computers; instead, they’ll simply talk broadly about mobile devices. If this revolution in user behavior happens, Dell hopes its Venue 11 Pro tablet will be one of the devices that gets it started; a “three-in-one” device, it attaches to a keyboard to become a laptop and docks to an external monitor to become a desktop replacement.

    3. Dell will focus on the hybrid cloud.

    Ferrand highlighted hybrid cloud services as a market on which Dell will focus, and which Dell sees as ripe for growth. “We want to dominate hybrid,” he said, explaining that customers want a company that will allow them to be flexible with their data. Customers want to move applications between private and public clouds as they see fit, and they want security from outages and data leaks, he said. He cited some of the investments Dell has already made to fulfill these needs, such as its acquisition of Gale, a company that makes cloud automation tools.

    But he said direct relationships with customers would be one of Dell’s defining traits as it builds its cloud business. With competitors such as HP, Microsoft, IBM and others occupying the same space, Dell hopes it can stand out not only with its products but also by serving as a “trusted advisor” for its customers.

    4. Dell wants to enable IT to manage BYOD and fragmented workplaces.

    Ferrand said device choice has become a smaller part of Dell’s conversations with customers. The reason? Dell’s cloud, virtualization and device management products allow companies to employ applications to whomever needs them, regardless of what kind device the person is using.

    “Connecting devices” will be one of Dell’s core competencies as a private company, Ferrand said, and it will involve a variety of products from the company’s existing portfolio, from Wyse technologies for thin clients, to KACE products for management and deployment, to Credent technologies for added security. Device management tools and virtual desktop products are fairly common, but Dell hopes the breadth of its offerings can help it to stand out. This “one-stop shop” mentality plays in the “trusted advisor” persona noted above. Ferrand said the attitude would apply to all Dell’s businesses.

    5. Dell will invest in next-gen data center technologies and big-data products.

    Ferrand also said Dell would continue to focus on next-generation data center products and big-data applications. The company has already achieved some early momentum with its Active System line ofconverged infrastructure products, as well as its hyperscale servers built around energy-efficient ARM processors. But for both these data centers products and its emerging analytics tools to stand out in the crowded market, Dell will need to continue showing that its software assets are starting to coalesce. The company spent several years acquiring software patents and expertise, but Dell’s success will rely on integrating all of the technologies at the right price and pace.

    6. Dell will increase its international sales coverage.

    U.S. customers currently account for an inordinate amount of Dell’s business but the company believes emerging markets will be central to its long-term success. Ferrand said the company will continue to participate heavily with channel partners but will also expand its fleet of direct sales representatives throughout the world.

    7. Dell will continue to focus on the middle market.

    As its enterprise portfolio has expanded, Dell has tried to carve out a niche by delivering enterprise-class resources to SMBs and mid-market customers. Ferrand said Dell will continue this strategy as a private company partly because the middle market contains the largest group of potential customers. But he said this focus also enables Dell to design more flexible products. It’s easier to scale up a mid-market architecture than to affordably repackage one designed for large companies, he said.

    8. Dell will execute moves more quickly than in the past.

    Ferrand didn’t offer any hints regarding big moves Dell might be planning — such as another major acquisition, or some kind of new product launch. But he said customers can expect Dell to quicken the pace of innovation. As a publicly-traded corporation, the company faced a variety of hurdles in making aggressive moves. But with Michael Dell now securely in the driver’s seat, Ferrand said changes will unroll much more quickly.


    2. Taiwan is still confused:

    China Times: China’s Internet phenomenon sends warning to Taiwan [Focus Taiwan, Nov 6, 2013]

    MomentCam, a mobile app that transforms pictures into cartoons, has quickly shot to popularity since its launch on Aug. 31, drawing 18.24 million users over the past two months.

    The Chinese company that developed the app, founded by Ren Xiaoqing, has obtained new investment of 30 million Chinese yuan since the app hit the market.

    The success story marks the rise of yet another Chinese Internet entrepreneur after Ma Huateng of Tencent Inc., Jack Ma of Alibaba Group, Yao Jinbo of 58.com Inc., and Zhuang Chenchao of qunar.com.

    China’s booming Internet sector stands in sharp contrast to the situation in Taiwan, where the country’s star ICT industry has been losing its luster and the economy remains sluggish.

    Taiwan’s ICT companies have hit a bottleneck because they have failed to reposition themselves from contract manufacturers to technology developers. In order to rescue the ICT industry, it is crucial for Taiwan to take part in the thriving Internet economy.

    Google Inc. has seen its share price soar from US$85 to over US$1,000 within the nine years since it was launched in 2004, and it currently has a market value of US$338 billion. The market capitalization of Facebook, meanwhile, has reached 1.3 times that of Taiwan Semiconductor Manufacturing Co. — the world’s largest contract chip maker.

    Taiwan’s ICT companies must not continue to confine themselves to the contract manufacturing market. The government should promote an alliance between the ICT industries of Taiwan and China and remove the current restrictions on the flows of information, talent and capital across the Taiwan Strait to salvage Taiwan’s dying economy. (Editorial abstract — Nov. 6, 2013)

    MomentCam app, China’s latest overnight sensation [WantChinaTimes.com, Nov 6, 2013]

    imageThree cartoon portraits made with the MomentCam app. (Internet Photo)
    A smartphone application that converts pictures of the user into cute cartoon characters has become a hit overnight in China, with the number of subscribers topping 20 million in the fourth months after its launch.
    The application, called MomentCam in English — a phonetic rendering of the Chinese which means “magic manga camera,” rose to the top of the free apps category on the Apple online store in China in just three days and notched a record 3.25 million subscribers a day. On the back of its rapid success, it recently attracted a 10 million yuan (US$1.64 million) loan.
    The software was created by two young people, Ren Xiaoqing and Huang Guangming, both members of the Dark Horse Development Camp, a platform dedicated to startups.
    Ren Xiaoqian, a fine-arts major, conceived of the idea when working as a souvenir designer for Walmart in the US in 2006. “A popular [design] for Walmart back then was planting a human face on the body of a cartoon character, although the effect was quite ugly as well as the dark background. This gave me the idea to render photographs of people in a cartoony comic style, believing that it would be even more popular,” Ren said.
    In 2008, she encountered Huang Guangming, then a manager at Microsoft, and they decided to combine their respective expertise in the fields of fine art and computing by returning to China to found a startup.
    The company initially dedicated itself to the production of custom-made cartoon souvenirs for some major local companies before Ren decided to switch to online business entirely due to the ceiling for offline products and her dislike of the need to entertain clients to drum up business.
    From a slow start, the MomentCam app suddenly became a hit overnight. “We were not mentally prepared for the phenomenal growth of subscribers,” Ren admitted. The number of downloads topped 1 million in one month and 10 million in three months as people became aware of the software, which converts a photograph of a human into a cartoon figure in the space of a few seconds.
    Ren said the challenge now is how to maintain the number of subscribers to avoid it becoming a short-lived fad, a fate that has befallen a great many applications in China.

    Windows 8.1 tablet sales 20-30% below expectations [DIGITIMES, Oct 31, 2013]

    Channel retailers are seeing their Windows 8.1-based tablet sales in October 20-30% below than their original expectations, despite strong price/performance ratios.

    Asustek Computer’s recently released Transformer Book T100 is priced at US$349 for a 32GB model and US$399 for 64GB and after bundling with telecom services, the 64GB model’s price drops from NT$12,900 (US$438) to NT$5,000-6,000 in Taiwan.

    Sources from channel retailers pointed out that the weakening Windows 8.1 tablet demand is due to competition from PC and Android-based tablets. Most of these products have received price cuts after the release of Windows 8.1-based 2-in-1 devices.

    Since Windows 8.1-based tablets are starting to face problems similar to those of previous Windows-based models, the sources are concerned that inventory issues may rise again in 2014.

    So far, channel retailers have not yet received any word about price cuts from brand vendors, but some retailers expect Windows 8.1 tablets to receive over 20% discounts in December for the year-end shopping season.

    Dell expected to overtake Acer to become third-largest notebook vendor in 2014, say Taiwan makers [DIGITIMES, Sept 17, 2013]

    Microsoft’s ending Windows XP technical support in April 2014 has triggered growing replacement of business-use notebooks, and this is expected to significantly benefit Dell because Dell has more focus on business-use modes than other notebook vendors, according to Taiwan-based supply chain makers. Consequently, Dell is expected to surpass Acer to become the global third-largest notebook vendor in 2014.

    Notebook vendors normally do not rely on business-use models for volume shipments mainly because sales are subject to the government sector’s and enterprises’ procurement scheduling, the sources indicated. But while demand for consumer notebooks has been shrinking due to competition from tablets and smartphones, business-use models have become the main source of growth for notebook vendors, the sources said.

    Dell is expected to continue to focus on the business-use market segment, especially after its privatization, the sources noted. Dell shipped 9.285 million notebooks globally in the first half of 2013, ranking fourth next to Acer’s shipments of 9.814 million units, the sources cited IDC statistics as indicating.

    Commentary: Suppliers need to prepare for Dell strategy change [DIGITIMES, Sept 27, 2013]

    As Dell is expected to become privatized, Taiwan’s upstream component suppliers may need to start preparing for the US vendor’s business reorganization.
    Michael Dell previously said that the company will accelerate its reorganization after becoming privatized and though the PC business will not be abandoned, it will surely no longer be the major focus of the US vendor.
    Dell’s financial report for the second quarter showed that the company still had about 33% of profits coming from computing-related product lines including desktops, notebooks and tablets. However, as the PC industry continues to decline, placing less emphasis on the PC business is a path Dell is likely to take in order to achieve growth in the future.
    The PC industry has already been shrinking for two consecutive years and is expected to continue declining in 2014. Although Wintel has been aggressively releasing new products and cutting prices, it has been unable to stimulate PC demand. This is a clear indication that the industry has already entered the decline stage and users may only replace their PC products when they are no long functional.
    PCs still have low penetration in emerging markets, but as consumers of these markets are also having high interest in smartphones and tablets, the PC industry is unlikely to return to a growth track through these markets.
    With the integration between software and hardware becoming a new trend of the IT market, upstream suppliers may also need to start preparing for Dell’s future strategy of combining software design with hardware products.

    Dell optimistic about Windows 8.1 for enterprise PCs [DIGITIMES, Aug 29, 2013]

    As Microsoft is ready to release Windows 8.1 on October 18, Jeff Clarke, Dell’s vice chairman and president of Global Operations and End User Computing Solutions, has expressed his optimism about the operating system. Compared to Android and iOS, Windows’ security and management abilities will allow the OS to become the top pick of the enterprise PC industry, Clarke noted.

    Although Clarke has mentioned that Dell is planning to release several Windows-based tablets in the second half, he has not provided much detail for the related plans.

    However, sources from the upstream supply chain has revealed that Dell is currently planning to release an 8-inch Windows-based tablet in the second half, targeting mainly the enterprise market.

    In addition, Dell is also considering releasing a 10.6-inch Windows tablet, adopting either a Core i or an Atom processor, the sources added.

    Dell aims to strengthen software businesses in Greater China [DIGITIMES, June 24, 2013]

    Dell has set up four major departments, End-User Computing, Enterprise Solutions Group (ESG), Dell Software Group (DSG) and Services, and plans to strengthen businesses in Greater China in 2013.
    The DSG was established earlier in 2013, while the Service department was formed only three years ago. With the four departments, Dell is able to push complete solutions as well as increase service consulting for its clients in Greater China.
    Dell has been acquiring solution providers in the market since 2010 and has acquired players such as Kace, SonicWall and Quest. Thanks to the acquisitions, Dell Taiwan’s software solution business currently has over one thousand clients that are using its solution services including datacenter, cloud computing, information and data management, mobile office management and security and data protection.
    Currently, Dell has about 40-50 service consultants for the Greater China region and is currently hiring more to support demand from the information and data management service sectors.
    Dell Taiwan president Terence Liao pointed out that Dell’s global revenues in 2012 were about US$50 billion and the software segment contributed about US$1.5 billion. Since Dell Taiwan’s software business also shared a similar proportion, it shows that the software business has already become a focus at Dell.
    In the future, Liao expects Dell Taiwan’s sales growth to be driven mainly by cloud computing and security and data protection services, and therefore will offer promotions to push the two services in the channel.


    3. How Acer’s “new strategy” that has been in place since April 1, 2011 came to an end:

    FOCUS TAIWAN – CNA ENGLISH NEWS:

    May 8, 2013: Acer forecasts shipment growth in Q2 (update)

    Taiwanese computer maker Acer Inc. said Wednesday that it is aiming for single-digit growth in shipments in the current quarter after returning to profitability in the first quarter.
    Acer Corporate President Jim Wong told an investor conference that he expects shipments of Acer’s notebooks, netbooks and tablets to remain flat or increase by up to 5 percent in the second quarter.
    The company said its total PC shipments fell 11 percent sequentially in the first quarter, but it did not disclose the actual number of units shipped.
    According to data compiled by research firm International Data Corp. (IDC), Acer shipments plunged 31.3 percent year-on-year to 6.15 million units in the first quarter, well below the industry’s average of a 13.9 percent decline.
    Wong said touch-enabled notebooks are expected to account for about 25 percent of Acer’s total notebook shipments in the second quarter, and that the ratio is likely to hit 30 to 35 percent by the end of the year.
    J.T. Wang, Acer’s chairman and chief executive officer, said his company plans to break even in the second quarter, when the shipping quantity of its touch notebooks is expected to double those shipped in the first quarter.
    He said Acer will continue to make more efforts in customer-centric designs and marketing to help the company regain growth momentum in the next decade.
    “Our approach is to focus on driving valuable growth that is profitable and enhances Acer brand value,” Wang said.
    The company’s operating margin in the quarter was 0.03 percent, and it had consolidated revenue of NT$91.7 billion (US$3.08 billion), down 9.4 percent from the previous quarter due to seasonal factors.
    The company’s first quarter net income was NT$515 million, or NT$0.19 per share, derived mainly from non-operating income such as foreign exchange gains and the disposal of stock.
    Acer’s operating income was NT$29 million, compared with an operating loss of NT$3.37 billion in the fourth quarter of last year that included a NT$3.5 billion intangible asset impairment charge for the loss in value of its rights to four trademarks.
    Acer unveiled a series of Windows 8-based laptops and tablets in New York on May 3 in a bid to boost shipments and strengthen its bottom line, but the company is still struggling to cope with weak PC demand and strong competition from other brands.
    Kirk Yang, a Hong Kong-based analyst at British banking group Barclays Plc, said Acer’s operating margin of 0.03 percent was much lower than his forecast of 0.18 percent and a consensus estimate of 0.17 percent by Bloomberg.
    “We expect Acer to guide revenue to grow by single digits sequentially, after posting quarter-on-quarter revenue contraction for five quarters in a row,” Yang said in a note to clients before the investor meeting.
    “However, we estimate that Acer’s operating margin in the second quarter of 2013 will not see any meaningful recovery due to weakening global PC demand and more low-priced tablet PC shipments in the mix,” he wrote.
    Barclays forecast that Acer’s sales revenue will grow 4.8 percent for the whole of 2013, with its operating margin improved to 0.8 percent. It maintained an “equal-weight” rating and a target price of NT$24 on the stock.
    Acer shares closed up 2.26 percent at NT$24.85 before the announcement of the quarterly results.

    August 8, 2013: Acer aiming to break even in Q3

    Taiwanese computer maker Acer Inc. said Thursday it expects to break even or record a small operating loss in the third quarter of 2013, despite its disappointing results in the previous quarter.
    The company’s mobile PC shipments — including notebooks, netbooks and tablets — are forecast to grow by 0-5 percent sequentially in the third quarter, Acer Corporate President Jim Wong told investors in a conference call.
    However, Acer has lowered its annual tablet shipment target to between 5.5 million and 6.5 million units, from its projection in May of 5 million to 10 million units, Wong said.
    He said touch-enabled notebooks will account for 20-25 percent of Acer’s total laptop shipments this year, below its previous estimate of 30 percent, in light of weakening demand for such products.
    “I think applications are most important. Today, there are still no killer applications for touch (notebooks),” Wong said in the conference call.
    Asked about Acer’s full-year outlook, he said the company is trying to “sustain its market share while protecting its bottom line.”
    The company is aiming to stay profitable in 2013 after registering losses over the past two years, Wong indicated.
    J.T. Wang, Acer’s chairman and chief executive officer, said the company is expanding its non-Windows business, including Android-based tablets and smartphones, as well as the web-centric Chromebook laptops promoted by Google Inc.
    Non-Windows business is expected to make up 10-12 percent of Acer’s revenue this year and 20-30 percent next year, Wang said.
    Acer reported an operating loss of NT$613 million (US$20.47 million) for the second quarterfollowing six consecutive quarters of operating profit — because of increasing investment and the rising cost of memory chips.
    For the first six months of 2013, the Taiwanese PC maker’s consolidated revenue fell 18.9 percent year-on-year to NT$181.35 billion, resulting in an operating loss of NT$585 million and earnings per share of NT$0.06.
    British bank Barclays Plc maintained its “equal-weight” rating on Acer shares and cut its earnings per share estimates by 5.4 percent for 2013, and by 5.3 percent for 2014, forecasting a contraction in Acer’s sales and more competition pressure.
    “We expect Acer’s sales to continue to be weak and do not expect any further momentum currently,” Kirk Yang, head of Asia ex-Japan Tech Hardware Research at Barclays, said in a research note dated Aug. 6.
    “We expect Acer will face a more competitive situation in the tablet and notebook segments in the near term and we don’t see it having an obvious plan in place to react,” said Yang, who reduced his price target on the stock from NT$24 to NT$23.
    Acer shares ended 3.97 percent lower at NT$20.55 Thursday on the Taiwan Stock Exchange.

    August 30, 2013: Talk of the Day — Will Acer be sold or merged?

    Acer Inc., Taiwan’s leading computer vendor, has seen its share price plunge to historically low levels in recent months.
    Market sources said earlier this week that investment banks are planning to broker a merger between Acer and one of two major rivals — Taiwan’s AsusTek Computer or China’s Lenovo Group.
    Acer founder Stan Shih said Thursday that he had an open mind toward such an overture.
    I would let nature take its course,” Shih said, but he added that no investment bankers have approached him for such talks.
    In charting the company’s future development strategy or direction, Shih said, the rights and interests of all stakeholders, including employees, shareholders and society at large, should be priority concerns.
    Shih has retired and is no longer involved in Acer’s management, but he remains the company’s largest shareholder, controlling 2.64 percent of its shares. His wife has a similar sized stake in the company.
    Shares of Acer gained 2.57 percent to close at NT$19.95 Friday.
    The following are excerpts from local media coverage of Shih’s views on Acer’s future:
    Economic Daily News:
    Acer spokesman Henry Wang said Thursday that the company has never thought about a merger with any other corporation.
    We are restructuring and streamlining our operations, and focusing more on innovating,” Wang said.
    While the company is tapping into the ever-expanding tablet market to help compensate for declining PC sales, it has also launched a new generation of laptops and desktops, including an ultra-thin laptop-tablet hybrid, he said.
    In the past, some foreign analysts have suggested that Taiwan’s two leading PC makers — Acer and AsusTek — should merge to expand their operating scale and enhance their international competitiveness.
    Acer Chairman J.T. Wang also said previously that Lenovo, which has emerged as the world’s second largest PC vendor and has a comprehensive portfolio of products, proposed a few years ago to buy out Acer, but Wang said he politely rejected such an offer.
    On Thursday, Stan Shih was asked to comment on reports that investment banks intend to mediate an Acer-AsusTek merger or an Acer-Lenovo merger.
    Shih said Acer is not a company that can be evaluated solely in financial terms.
    “Capitalists tend to assess things simply in monetary terms, but Acer has something invaluable,” Shih said.
    As one of Taiwan’s few international brands, Shih said, Acer has come a long way and overcome numerous challenges in building up its brand recognition.
    “I hope local people will give Acer more encouragement and support,” Shih said. (Aug. 30, 2013).
    China Times:
    Shih said a company’s share price is not the sole indicator used to assess a company’s value.
    “I have not been bothered by fluctuations in Acer’s share price,” Shih said Thursday when chairing an event marking the start of applications for this year’s Acer Digital Award.
    But he added that the PC industry is changing rapidly.
    “We should let nature take its course. If somebody wants to take over Acer at a price beyond what anybody could imagine and create an even better brand based on it, why we should resist such a deal,” he said. (Aug. 30, 2013).

    May 11, 2013: Acer, Asustek upbeat about Windows 8 market reception

    Taiwan-based Acer Inc. and Asustek Computer Inc., two of the world’s leading personal computer vendors, are optimistic about the market reception of Microsoft Corp.’s latest operating system Windows 8, which is to be revamped, market sources said Saturday.
    Acer Chairman J.T. Wang said Microsoft is eager to communicate with hardware device providers like Acer in an attempt to improve the Windows 8 functions and make the platform more user-friendly.
    Amid lackluster market reception since the new Microsoft operating system was launched at the end of October 2012, the U.S.-based software giant said it is planning to revamp the OS so that consumers will learn how to use the new platform more quickly.
    The plan to launch a new version of Windows 8 was announced after Tami Reller, Microsoft’s chief marketing and financial officer, conceded that it was not easy for consumers to get used to the platform.
    Many business users have been urging Microsoft to restore the “Start” button in its latest OS. In the earlier Windows versions, the icon appears in the lower-left corner of the computer screen, but is not visible in the latest software.
    To stir up buying interest, Microsoft has lowered its royalties by US$20-US$30 (NT$600-NT$1,000) on touch notebook computers 11.6 inches or smaller, while offering incentives to distributors of Windows 8 tablet computers.
    Market sources said Microsoft is expected to cut its royalties on Windows 8 tablet computers so that they can be sold at around US$199-US$349 and thus make them more competitive in the market.
    Wang said the changes in Microsoft’s strategy will have a positive effect on market reception of the Windows 8 OS and also on the future development of the PC industry.
    Acer said that with touch devices becoming the mainstream in the PC market, it will continue to unveil tablets, touch ultrabook computers, and combination PCs and smartphones, all running either Windows 8 or Google’s Android operating system.
    Meanwhile, Asustek said Windows 8 is a good product, although some consumers have not gotten used to it. Once Microsoft revamps the OS, sales of Windows 8 mobile devices will pick up, Asustek said.

    June 3, 2013: COMPUTEX: Acer unveils new product lines

    imageAcer Chairman J.T. Wang (left) holds the 8-inch Iconia W3,
    and Chief Marketing Officer Michael Birkin holds the 5.7-inch Liquid S1.

    Taiwanese computer maker Acer Inc. unveiled a series of new products Monday, including an 8-inch Windows tablet and a 5.7-inch phablet.

    At an international press conference held under the theme of “Redefining Technology Through Touch,” Acer showcased a wide array of its latest products one day ahead of Asia’s largest computer trade show.

    The 8-inch Iconia W3, one of the first 8-inch Windows tablets on the market, weighs 500 grams and is less than half an inch thick. With a battery life of eight hours, the device can beam out 720p video playback on a 1,280 x 800 display. It also comes with an optional full-size keyboard.

    The company also displayed its first phone-tablet hybrid product, the Liquid S1, with the aim of gaining traction in the fast-growing hybrid market.

    The new quad-core phablet features a 5.7-inch 720p display, weighs 195 grams and runs on Google’s Android 4.2 operating system.

    Acer projected that the global phablet market will grow to about 10 million units in 2013, up from between 7 million and 8 million units last year.

    June 3, 2013: COMPUTEX: Acer unveils new product lines (update)

    Acer Chairman J.T. Wang said on the sidelines of the launch ceremony that touch technology applications have become all the rage, and this will continue in the future.

    “It’s all about touch,” he said, adding that the launch of the new products is expected to meet consumer demand.


    4. The road which lead to Acer downfall
    :

    Acer press release:

    March 31, 2011: Acer CEO and President Gianfranco Lanci resigns – With immediate effect

    Gianfranco Lanci is appointed President of Acer Inc., effective January 2005 … Current President, J.T. Wang, will step into the role of Chairman and Chief Executive Officer (CEO) as Stan Shih retires from Acer at the end of this year. The new positions are effective from 1 January 2005. Lanci’s designation marks Acer’s appreciation for his outstanding performance in the European market, including his management style and successful business model – which may now extend to the Acer group worldwide. …
    Acer’s Lanci Takes Over CEO Role [IDG News Service, June 13, 2008] … Gianfranco Lanci, who came to Acer from Texas Instruments (TI) when Acer bought the TravelMate laptop PC business from TI in 1997, will add the CEO position to his current role as president of Acer.
    The company’s laptop business has been a driving force in its double-digit growth over the past few years and helped catapult Acer into the number-three spot in the PC industry.
    J.T. Wang, the current chairman of Acer, relinquished his CEO title at Acer but took on the title of Acer Group CEO on Friday, Acer said in a statement.
    Wang took over as chairman at Acer from company founder Stan Shih several years ago, after Acer split itself into three distinct companies in order to separate its branded business from its contract manufacturing operations. Acer took over as the branded company, while Wistron took most of the PC-related contract manufacturing and BenQ took on mobile phone and PC-related work.
    Shih retired from Acer in December 2004.
    Acer CEO and President Gianfranco Lanci has resigned from the company, with immediate effect. Acer Chairman J.T. Wang takes acting role in the interim. The company has commenced with the planning of organizational and operational adjustments for the sustainable future of Acer.
    The resignation was approved at a meeting of Acer’s Board of Directors today, and the company has communicated internally with its worldwide employees.

    On the company’s future development, Lanci held different views from a majority of the board members, and could not reach a consensus following several months’ of dialog. They placed different levels of importance on scale, growth, customer value creation, brand position enhancement, and on resource allocation and methods of implementation.

    The change does not affect current operations which are functioning as normal. Acer’s strong management team of multi-nationals has been well-informed and is committed to overseeing and implementing the company strategies, as does the amicable company relations with industry partners persist. Acer will continue to push for globalization, follow its multi-brand and channel business model, develop competitive products and services, and foster closer relations with key vendors and channel partners.

    Acer Chairman, J.T. Wang expresses, “The personal computer remains the core of our business. We have built up a strong foundation and will continue to expand within, especially in the commercial PC segment. In addition, we are stepping into the new mobile device market, where we will invest cautiously and aim to become one of the leading players.”

    “In this new ICT industry,” continued Wang, “Acer needs a period of time for adjustment. With the spirit of entrepreneurship, we will face new challenges and look to the future with confidence.”

    In his role as President and CEO, Lanci has contributed significantly toward Acer’s growth. The company expresses its true appreciation for Lanci’s efforts and wishes him all the best in his future endeavors.

    April 19, 2011: Acer appoints Jim Wong as Corporate President – Through teamwork, company to face challenges and embrace opportunities of the new ICT industry

    Acer Inc.’s board of directors has approved the candidacy of Jim Wong as the new Corporate President, with immediate effect. Wong previously held the positions of corporate senior vice president and president of IT Products Group (ITGO). Together with Chairman and CEO, J.T. Wang, they will lead the company forward to embrace new challenges and opportunities in the new ICT age.

    Acer Chairman and CEO, J.T. Wang … “As the ICT industry shifts from single to multiple operating system platforms, it opens up new challenges as well as new opportunities. Acer needs a leader who is familiar with technology, as well as understands the market. We reviewed Jim’s potential and agreed he would fit well in the role.”

    The rapid growth from data-creation to data-consumption devices is increasing the ICT market scale and opening up new prospects. Acer will aggressively yet cautiously develop data-consumption products, tablet PCs and smartphones based on the solid foundation of the main PC business.

    Jim Wong, new corporate president of Acer states, “The IT industry is encountering a profound change. I foresee many new opportunities and am ready to face the challenges ahead. I will encourage teamwork throughout the company and work closely with the new management team. We are ready with a clear set of goals and action plans.”

    In the PC business, Acer will continue to seek volume/shipment growth, but we must optimize our multi-brand strategy by having clear differentiation of the brands’ positioning and create value for our customers. Concurrently, Acer shall focus on developing selective models for mobile devices to lay a solid foundation for the future.
    Three key principles have been defined by Acer’s new management to ensure successful decision making:

    • Promote the spirit of teamwork to enhance company’s overall competitiveness, and encourage closer communication between front-end and back-end management teams for better mutual understanding.
    • Simplify operational systems and processes to boost effectiveness and speed.
    • Strengthen corporate governance and enhance company sustainability.

    Wong joined Acer in 1986, with experience in sales, product marketing, product development, with a keen understanding of ODM supplier operations and the brand business. In 2001 when he took charge of the ITGO, he has been one of the core members of Acer’s top management team. In 2005 he was promoted to corporate senior vice president.

    Born in 1958, Wong holds a bachelor degree, majoring in mathematics from Soochow University in Taiwan, and an MBA from Emory University, Georgia, USA.  In 1999 he received Taiwan’s 17th Annual Management of Excellency Award.

    Acer ICONIA [press release, Nov 23, 2011]

    Not so long ago mobile computing devices with touch screens were only found in science fiction. Now Acer presents ICONIA, a new concept device set to add a brand new tablet experience, combining the versatility of a conventional 14” form factor with a unique dual-screen layout and highly intuitive all-point multi-touch functionality, which means you can use all the fingers of your hands to navigate ICONIA.

    If you are looking for a different and innovative approach to personal computing, look no further. With its two all-point multi-touch displays Acer ICONIA offers an enhanced content consumption experience and brings the interaction with the tablet to a new level.

    Multimedia, entertainment, communication, web browsing and office productivity seamlessly flow across the dual screen, allowing users to set the best scenario for what they are doing. To improve readability of web sites or documents, the window can be spread across both screens. But the dual screen also means you can do one thing in one screen and something else entirely on the other: you can browse a website on the top screen and view the contents of your favourite folder on the bottom one or you can watch a video on the top screen and check out your multimedia library in the other.

    “We took this insight and created a range of easy to use devices with touch technology including Smartphones, Notebooks, AIO PCs, Tablet and our latest addition, the ICONIA Touchbook: this level of commitment to touch technology is something no other PC vendor can compete with.” states Jim Wong Acer Inc. Vice President and ITGO President. “The Intel® Core™ i5 processor together with our experience with touch technology has allowed us to completely remap the user experience to create a far more natural interaction with our devices.

    April 19, 2011: Acer establishes Touch Business Group to enhance development of new mobile devices

    • Acer Corporate President Jim Wong to lead Touch Business Group
    • Campbell Kan to lead PC Global Operations
    • Walter Deppeler to lead Chief Marketing Office

    Acer Inc. announces organizational adjustments in separating the back-end product-line operations into two independent entities: Touch Business Group (Touch BG) and PC Global Operations (PCGO) lead by new Acer corporate president, Jim Wong, and Campbell Kan, former VP of the smart handheld business unit, respectively. In addition, Acer announces new functions for mid- and long-term business planning and operation analysis.

    To make significant inroads in the mobile device business, Acer has reorganized the former IT product global operations into two independent entities. The newly founded Touch BG comprises of the former tablet PC and smartphone teams, while the PCGO consists of the main PC product lines.

    The Touch BG shall be led by new Acer corporate president, Jim Wong, and president of Eten Information Systems, Simon Hwang, concurrently appointed deputy president of Touch BG.

    Acer president, Jim Wong, states, “Touch/mobile devices open up a host of new opportunities. They form Acer’s new business and growth engine for the future. To focus on this market, we saw the need to allocate sufficient resources, and devise a new management structure different from the PC business specifically for this line of business.”

    New Functions
    Acer also creates three new functions deemed necessary for company’s competitive development, they are: Chief Marketing Office (CMO) – responsible for brand position and marketing strategy; Chief Technology Office (CTO) – responsible for mid to long term planning and integration of technologies; and Operation Analysis Office (OAO) – for studying and analyzing company business models and financial affairs.

    Senior corporate VP and EMEA president, Walter Deppeler, shall concurrently serve as CMO, while Tiffany Huang, AVP of supply chain operations will concurrently oversee the OAO. The CTO will be jointly led by former VP of quality and service, Jackson Lin, former CTO of products development, R.C. Chang, and former VP of technology center, Arif Maskatia.

    May 26, 2011: Acer’s manufacturing base in Chongqing commences operation – Ceremony to mark milestone achievement joined by Mayor Huang Qifan and Acer President Jim Wongise competitiveness on a global scale.

    Acer’s new global IT manufacturing center in Chongqing has commenced production. Today a ceremony attended by Chongqing Mayor Huang Qifan and Acer President Jim Wong was held to mark this achievement. The city of Chongqing in western China offers excellent infrastructure including land and air transportation, and stable manpower supply. The newly operational manufacturing center is expected to enhance Acer’s worldwide business and logistics to boost overall competitiveness.

    Acer President, Jim Wong, remarked, “Our decision to go west in China is a global strategy. Since December last year, the steps in setting up this manufacturing base have been smooth, enabling our production start in May. Acer is extremely grateful for the support of the Chongqing government and our manufacturing partners to make this a possibility.”

    “Major OEM companies have already set foot in Chongqing and all will begin shipping by the second half of this year,” continued Wong. “Key component suppliers have also set up presence here to create a complete supply chain. To begin with, we will produce our notebook and netbook PCs in Chongqing and gradually expand our manufacturing volume. By the end of 2011, 30-40% of our total notebook and netbook PCs will be produced here.”

    June 1, 2011: Acer Chairman & CEO to relinquish his remuneration

    Acer Chairman and CEO J.T. Wang is taking responsibility of the one-time write-off totaling US$150 million by relinquishing total remuneration from his position as director of the company board, as well as employee bonus of  2010.

    With Acer’s substantial loss in write-off, Wang deeply feels regretful of the current situation and will dedicate his efforts fully to investigating the reasons behind the loss and to improving internal management.

    July 18, 2011: Dave Chan appointed General Manager of China Operations, Acer Touch Business Group – Focus on penetration into China touch mobile device market

    Global IT industry veteran, Dave Chan, has been appointed General Manager of China Operations, Acer Touch Business Group. Under Chan’s leadership, Acer expects to accelerate penetration into China’s smartphone and tablet PC market.

    Chan has been working in the high-tech industry for more than 20 years, accumulating a wealth of experience in the consumer/retail business and operations with extensive geographic experiences ranging from global, regional (Asia) and country (China). Prior to this, he served as senior official for eight years at a first-tier IT company, responsible for notebooks, smartphones and tablet PCs in China.

    Acer Corporate President, Jim Wong, said, “Touch mobile device is Acer’s new strategic business. While China’s huge IT market, with unique applications and customer segment, presents great business potential. To address these specific needs, we established a separate business group overseeing the China touch mobile device market and will allocate the needed human resource.”

    “Dave will lead Acer’s touch business development team in China,” continued Wong, “cooperate with local telcos and operators on R&D, software, sales and services. His joining ensures that Acer has substantial leadership to steer this new business forward in China.”

    To make significant inroads in the mobile device business, Acer announced in April the newly founded Touch Business Group comprising of the former tablet PC and smartphone teams, and directly overseen by Wong.
    Chan holds a B.S. in Mechanical Engineering from Oregon State University and MBA from Santa Clara University.

    July 18, 2011: Acer sets up global R&D center in Chongqing – Focus on smart handheld application software and services

    A new global R&D center, Acer Intellectual (Chongqing) Co. Ltd., was inaugurated today to enhance Acer’s development in smartphones and tablet PCs. The center shall cooperate with Chongqing municipal government and China Mobile Ltd. in researching and developing smart handheld devices as well as related software and services.

    An inaugural ceremony was held today and joined by Chongqing government officials, during which Acer also signed an agreement with Chongqing Economic and IT Commission (CQEIC) and China Mobile’s Chongqing subsidiary (Chongqing Mobile) to jointly research and develop smart handheld devices, including smartphones and tablet PCs, application software and services.

    To begin with, Acer will invest US$4 million in Acer Intellectual (Chongqing) Co. The center, led by Acer Corporate President Jim Wong, will also focus on the smart handheld user behavior study in the China market.

    Acer’s R&D taskforce has already begun collaborating with Chongqing Mobile and local IT companies to successfully develop software applications for Android based TD (time domain) smartphones; the applications are used by Chongqing civil servants. Further on, together with Chongqing government, the center will develop smart handheld mobile terminals to provide more value-added services.

    January 8, 2012: Acer Unveils World’s Thinnest Ultrabook: Aspire S5

    “The Ultrabook is much more than just a product segment,” said Jim Wong, president of Acer Inc. “It’s a new trend that will become the mainstream for mobile PCs, and customers will see the unique features gradually extended across Acer’s notebook family.”

    January 8, 2012: AcerCloud Connects All Personal Devices Securely for Anytime, Anywhere Access to Digital Media and Data

    Acer today previewed its upcoming AcerCloud, which securely connects all personal smart devices for anytime, anywhere access. Featuring Acer Always Connect technology, users can retrieve multimedia and data files anytime, even when their main PC is in sleep (standby/hibernation) mode. Users can enjoy these advantages knowing that their information is stored and transferred securely via strong encryption and authentication. Bringing users tremendous functionality and value, Acer will include the AcerCloud, without additional cost, on all new Acer consumer PCs.

    Acer reduces the complexities of today’s fast-paced lifestyles by developing solutions that enable devices to communicate, simplifying the process of content sharing. With the ever-growing number of smart digital devices, users need to share and back up their multimedia and data files in a simple, smart way.

    Acer Inc. President Jim Wong stated, “AcerCloud not only provides the simplicity and efficiency when accessing and sharing data, but it’s also free with a new Acer PC and gives our users peace-of-mind, knowing that their data is safely transferred in a personal cloud space.”

    AcerCloud will be bundled on all Acer consumer PCs starting Q2 2012. It will support all Android devices, while future support is planned for Windows-based devices. The service will be available in America, Europe, Asia and China.

    August 30, 2012: Acer Steps Up Marketing, Engages Red Peak Group and Appoints Michael Birkin as Chief Marketing Officer

    To energize and strengthen Acer’s global marketing organization, Acer will engage Red Peak Group, a global marketing services firm, and appoint Red Peak Chairman Michael Birkin as Acer Chief Marketing Officer (CMO). This strategic move is aimed at strengthening Acer as a marketing-oriented company.

    Red Peak will assign Birkin and other Red Peak members to perform related marketing functions and services for Acer. And as CMO, Birkin will lead the global brand marketing team, and report directly to Acer’s chairman and CEO, commencing October 1, 2012.

    According to Acer Chairman and CEO, J.T. Wang, “Our key objectives for Red Peak are to enhance Acer’s marketing strengths and help steer the existing company mindset.”

    “In the product development stages, we will place marketing ahead of R&D and design,” said Wang. “Our precise understanding of customers’ needs will lead the way in products and services development. We will build an end-to-end marketing environment and enhance our marketing-oriented mindset.”

    Birkin is regarded as one of the world’s most respected brand strategists and marketing experts. During his career he served as the CEO of Interbrand Group, the brand consultancy, and worked in various capacities at Omnicom, the global advertising and marketing communications services group. In 2010, Birkin founded the Red Peak Group, a marketing services company with offices in New York, London and Los Angeles, offering a full range of services including brand consulting and design.

    In addition to the marketing organization and personnel changes, the incumbent CMO Walter Deppeler, has been assigned to lead a newly established marketing committee as Chairman, responsible for integrating Acer’s global branding and marketing strategy.

    June 4, 2012: Acer Unveils Windows® 8 PC Lineup: Ultrabooks™, Tablets, and AIO Desktops – Creating a world of explorers through transformational user experiences

    Acer today announces its series of Windows 8-based products, which includes the premium Aspire S7 Ultrabook™, ICONIA W Series tablets, and Aspire U Series all-in-one (AIO) desktops, all featuring innovative ergonomic designs and appealing beauty that deliver greater convenience and delight to the overall user experience.
    “It is a watershed moment for Acer,” says J.T. Wang, Chairman and CEO of Acer Inc. “Acer has always been committed to breaking the barriers between people and technology and the leading design of these products, when coupled with the Windows® 8 touch functions, will provide transformational experiences for users whether they are creating important output or simply being entertained.”
    Jim Wong, Corporate President of Acer Inc. comments, “Acer collaborated closely with Microsoft Corp. and has taken the lead to engineer new products that will be great with Windows® 8, demonstrating our product development efficiencies and taking advantage of our ability to provide an enhanced and satisfying computing experience. By focusing on ergonomics and style, we are addressing key consumer demands.”
    Wong continues: “Interaction between human beings and computers should be easy rather than complex. In our view, the touchscreen experience enabled by Windows® 8 is a massive step forward – simply because it makes computing more intuitive by offering users a backward in interface. We understand Windows® 8 innovation and benefits and by utilizing Intel’s architecture and platform performance on our products, we believe we will provide users a better touch experience across devices for both consumer and commercial products.”
    “Microsoft and Acer have been working together on new devices for Windows® 8, and it’s great to see the progress Acer is making,” says Steven Guggenheimer, Corporate Vice President, OEM Division, Microsoft Corp. “We expect customers to have a great experience using the combination of Windows® 8 and the new hardware designs from Acer.”
    “Intel and Acer continue to focus on innovation and collaboration delivering engaging and secure user experiences,” says Kirk Skaugen, Vice President and General Manager, PC Client Group of Intel Corp. “Combined with the increased responsiveness of Intel’s 3rd generation Intel Core processor, new breakthrough capabilities possible with future Microsoft Windows® 8, and the added flexibility of touch, the Acer Aspire Ultrabook™ will provide a magnificent experience for users.”
    Wong says further, “At CES we announced Acer’s new brand positioning, the visible statement of which is to explore beyond limits. Today’s announcement is the most significant yet in our goal to create a modern day explorer in everyone. Our new products are 100% designed and created to enable anyone to accomplish more whether they be an individual or a business.”
    In the development of the new product lineup, Acer has been working even more closely with Microsoft and Intel.
    PRODUCT INFORMATION
    The Aspire S7 Ultrabook™ — the premium model in the S Series — boasts a sleek aluminum unibody design. The 13.1-inch model is currently the thinnest Full HD touch Ultrabook™ and features glossy tempered glass, while the 11.6-inch model is the smallest Full HD touch-enabled Ultrabook™. Both devices are kitted out with the innovative Acer Twin Air cooling system for best thermal comfort, as well as a light-sensing keyboard that adjusts its backlight to facilitate typing, even in low light.
    The ICONIA W510 and W700 tablets have raised touch functionality to the next level. The W510 is equipped with a 10.1-inch display and has tri-mode touch, which allows users to touch, type and view. It also delivers up to 18 hours of battery life and headlines Always On, Always Connect technology. The W700 is the best-performing Windows tablet with a versatile cradle that is adjustable for different viewing requirements while offering data storage expansion and an additional battery. Sporting an 11.6-inch Full HD touchscreen, this tablet stuns with high-quality 1080p images.
    Aspire U Series AIO desktops are also available in two sizes. The 27-inch 7600U has an ultra-slim 35 mm profile and a gorgeous Full HD edge-to-edge screen and Dolby® Surround Sound. This AIO features multi-user touch, and can be tilted from 0 to 90 degrees. Furthermore, the screen can swivel to all sides when laid flat. The 23-inch 5600U is the slimmest AIO PC that can tilt from 30 to 85 degrees, enhancing personal touch use. Both models have leading ergonomic designs, and a slim, stylish finish that complements interior decor.

    October 30, 2012: Acer Aspire S7 Series The Thinnest and Lightest “Touch & Type” Ultrabooks™

    First previewed at Computex Taipei, the Acer Aspire S7 Series, the thinnest and lightest Ultrabooks™, has been hailed as one of the most exciting Windows 8-based touch Ultrabooks to launch. It was also featured prominently in Microsoft’s launch event in New York and highlighted as one of the best PCs ever made. The positive reviews have been unparalleled.

    As thin as a smartphone, the S7 is an iconic combination of power and beauty. The use of straight lines, glossy white glass, electroluminescent lighting and anodized aluminum have culminated in an Ultrabook that champions cutting-edge technology and innovative design. The dual torque hinge and Acer Green Instant On / Always Connect features ensure the ultimate in control and seamless usability.

    “Acer took a fresh approach to the design and development of the Aspire S7, using premium construction methods and materials,” said Jim Wong, corporate president of Acer. “The high level of engineering and design quality we set for the S7 was achieved by placing the user experience as our top design priority, and by our ongoing commitment to introducing technologies into our products that truly complement human behavior, and stimulate curious and progressive thought and action.

    November 12, 2012: Acer America’s New C7 Chromebook: Secure, Speedy and Simple

    Editor’s Summary:

    • Available for purchase starting tomorrow in the U.S. through Google Play, Best Buy stores and BestBuy.com at an affordable $199
    • Provides hassle-free computing with automatic security and software updates
    • Great for use as an additional home computer
    • Includes built-in apps for productivity, collaboration and entertainment

    Acer America today debuts its new Acer C7 Chromebook, its next-generation mobile computer that runs Google’s Chrome operating system and is priced at a low $199.

    The new Acer C7 Chromebook is the ideal additional laptop for families, students and business people that need a fast, easy and secure way to get online to do their computing in the cloud, such as using Gmail, keeping up on social networks, shopping, and paying bills.

    Today’s computer users are doing more online heightening the need for enhanced security, quicker online access and an easy-to-use interface,” Jim Wong, corporate president, Acer Inc. “The Acer C7 Chromebook provides all this at an affordable price, making it the right choice for families and students on a budget as well as anyone who wants a new or second mobile PC for web-based computing.”

    “The core of Google’s Chromebook vision is creating a better, more simple computing experience and making it available to everyone,” said Sundar Pichai, senior vice president, Chrome and Apps, Google. “We’re excited about the Acer C7 Chromebook, the newest addition to the Chromebook family. The Acer C7 delivers a hassle-free computing experience with the speed, security and simplicity that users expect of Chromebooks built in.”

    December 10, 2012: Acer Appoints Tiffany Huang President of PC Global Operations – Incumbent president, Campbell Kan, to serve as special assistant to Acer chairman

    Acer announces the appointment of Tiffany Huang to become the president of Personal Computer Global Operations (PCGO), reporting to the corporate president, Jim Wong. Huang shall replace Campbell Kan who will serve as special assistant to the chairman, J.T. Wang. Both appointments shall take effect from January 1, 2013.

    Kan has held key positions within Acer’s IT products global operations over the past twelve years, and is accredited for his excellent management and contribution to the mobile PC business. With his extensive knowhow, Kan shall take charge of key projects assigned by Acer chairman where he can lend his expertise for the future of the company.
    With her latest appointment, Huang leaves her post as associate vice president of Supply Chain Operations Business Unit after twelve years in this field. In the past year, she has also held positions in the Operations Analysis Office responsible for analyzing and strategizing corporate operations, and the Strategic Demand Planning Business Unit for demand and material planning.
    During her career at Acer, Huang has demonstrated clear potential with her leadership quality, execution and communication skills, and experience in cross cultural and cross functions. Her sense of business acumen, global insight, matched by accurate end-to-end projections on many occasions deemed her to be the ideal candidate to take the position as president of PCGO, as Kan assumes his new post.
    Huang joined Acer in 1988 in the legal division dealing with intellectual property rights. From 1997 to 2001 she served as director of operations management at Acer’s U.S. operations. In 2001 she returned to the Taipei headquarters and was later promoted to associate vice president of supply chain operations until the latest appointment.
    Born in 1964, Huang has a Bachelor of Science degree in Law from Taiwan’s Chung-Hsing University.

    January 7, 2013: Acer Extends AcerCloud to Top Three Operating Systems, Making it Easy to Share Files and Media among Windows, iOS and Android Devices

    Acer today announced cross-platform support for AcerCloud, the company’s file sharing and media management solution, free to Acer customers. Consumers can now share, retrieve and enjoy their multimedia and data files using a variety of computing devices, regardless of which operating system they are running – Windows, Android or iOS.

    AcerCloud uses the free space on a PC’s hard drive as cloud storage spaceUsers simply designate one of their PCs as their “Cloud PC,” enabling them to use the available hard drive space on their own PC, giving them security and full control over their storage needs.  And unlike other cloud solutions, consumers won’t receive constant reminders about exceeding capacity with solicitations to pay for more storage.

    “With AcerCloud, Acer now supports free file sharing between all of the key mobile devices, adding tremendous value to Acer customers,” said Acer President, Jim Wong.  “AcerCloud greatly simplifies our customers’ ability to manage all of their digital assets across all of their devices, regardless of platform.”

    Acer, Asustek actively marketing cloud computing solutions [DIGITIMES, July 25, 2013]

    Acer and Asustek have been pushing forward in marketing hardware/software-integrated cloud computing solutions focusing on educational applications and web storage, respectively, according to the companies.

    Acer has integrated its servers with software used in eDC, its electronic information management center, into cloud computing solutions and promoted sales through cooperation of system integration providers, the company indicated. The cloud computing solutions are mainly used for educational purposes, with procurement by local governments being the major source of business, Acer noted. In addition to contracts from schools in Taiwan and Thailand, Acer has been marketing products in Nanjing City, eastern China, and Chongqing City, western China, and plans to tap the North America and Europe markets, Acer noted.

    Asustek has its subsidiary, Asus Cloud, responsible for operating its cloud computing business. In addition to Taiwan-based Cathay Financial Holdings and Taishin Financial Holding, Asus Cloud-developed storage solutions have been adopted by the National Center for High-performance Computing (NCHC) under the government-sponsored National Applied Research Laboratories, Asus Cloud CEO Peter Wu said. Asus Cloud will offer a storage solution of 1PB in total capacity for NCHC, with more than 10TB to come into use in the second half of 2013, Wu indicated. In addition, Asus Cloud has signed with the government of Chongqing City to develop cloud computing platforms for education, civic services and by small- to medium-size enterprises in the city, Wu said.

    June 3, 2013: Acer Enhances its Flagship Ultrabook™, the Aspire S7

    “We designed the S7 to be the best touch Ultrabook in the world, bar none,” said Jim Wong, Acer Corporate President. “We listened carefully to users to find substantial ways to make it even better.” The re-engineered S7 delivers improved battery life of up to 7 hours, a 33% increase from its predecessor. Its new light-sensing EL backlit keyboard is also refined, with a deeper keystroke for more natural and comfortable typing. Plus, thanks to 2nd generation Acer TwinAir cooling technology, the noise at maximum load is more than 20% lower than the previous S7, keeping the system quiet and cool. … The new Aspire S7 will be available in Q3 2013.

    The end of the road announcements:

    Acer Chairman and CEO J.T. Wang Tenders Resignation; Corporate President Jim Wong to Succeed as CEO – Wang to remain in chairmanship to fulfill tenure as Acer begins a comprehensive restructuring and transformation [press release, Nov 5, 2013]

    Acer announces that the resignation of J.T. Wang, Chairman and CEO, has been approved by its board of directors. Wang shall remain in chairmanship until the end of his tenure next June. The Board and The Search Committee also agreed that Corporate President Jim Wong will succeed Wang as the new CEO from January 1, 2014. A comprehensive restructuring plan has been formulated by the Acer management team, and without delay, the Board will commence with its corporate transformation.
    J.T. Wang, chairman and CEO of Acer, said, “Acer encountered many complicated and harsh challenges in the past few years. With the consecutive poor financial results, it is time for me to hand over the responsibility to a new leadership team to path the way for a new era.”
    Acer’s board of directors stated, “We are very grateful for Wang’s contribution and hard work. The past two to three years have been extremely tough for Acer due to the rapidly changing industry and market conditions. We fully respect Wang’s decision to step down; however, in the interest of ensuring company stability and a smooth transition during this latest restructuring and transformation, we have asked J.T. to remain to complete his tenure as Chairman which ends in June 2014.”
    Wang elaborated, “Together with the management team, we have crafted a far-reaching plan for Acer’s transformation. I wish to thank the board members for their support and to Jim for assuming the CEO duties. I feel optimistic toward Acer’s future. The management team promises to carry out the internal restructuring and will work closely with the Board on the corporate transformation.”
    Acer’s Board has set up a Transformation Advisory Committee with board member [founder] Stan Shih as Chairman and Acer co-founder George Huang as executive secretary. The committee will propose changes in the company vision, strategy, and execution plans for the Board’s approval. They will work with the management team to carry out the transformation to increase shareholder value. To support new development needs, the Board has approved the issue of 136 million new common shares for a capital increase in cash (approximately 4.8% of total shares).
    Stan Shih stated, “After I retired from Acer I shifted my attention to promoting public interests. But when J.T. tendered his resignation, the Board turned to me for help. In consideration of personal social responsibility and for Acer’s onward sustainability, I agreed to take on the duty to help the management team with a smooth handover during this transition period.”
    Shih added, “After making structural adjustments, we will introduce more competitive products within the existing PC, tablet, and smartphone business and stabilize our market share. This will be the basis of our transformation and for developing new business opportunities.”
    Acer’s personnel and business restructuring plans include reducing manpower, product plan termination with related product tooling and legal fees, resulting in a one-time cost of US$150M which is expected to be reported in the Q4’13 financial results. Acer will cut its worldwide employees by 7% resulting in OPEX savings of US$100M annually from 2014.

    Acer Q3’13 Financial Results: Consolidated Revenue NT$92.15B (US$3.11B), Operating Loss NT$2.57B (US$86.61M), Intangible Asset Impairment NT$9.94B (US$335.13M), PAT NT$-13.12B (US$-442.19M), EPS NT$-4.82 [press release, Nov 5, 2013]

    Acer’s financial results for Q3 2013, approved by its Board of Directors, are: Consolidated Revenue of NT$92.15B (US$3.11B), up 3.1% quarter-over-quarter and down 11.8% year-over-year; an Operating Loss of NT$2.57B (US$86.61M). In addition, due to a non-cash related intangible asset impairment of NT$9.94B (US$335.12M), profit after tax was NT$-13.12B (US$-442.19M), and earnings per share was NT$-4.82.
    Q3’s operating loss was mainly due to the gross margin impact of gearing up for the Windows 8.1 sell in and the related management of inventory. In addition, in Q3, there were one time compensation payments related to the long standing eMachines consumers litigation. This is now settled.
    The intangible asset impairment loss, which includes trademarks and goodwill, is NT$9.94B (US$335.13M).This impairment, which covers the Gateway, Packard Bell, Founder, iGware and ETen brands, is made in accordance with IFRS (International Financial Reporting Standards) and is reflective of changes in business strategy. The impairment is a non-cash charge and has no impact on Acer’s business operation and working capital.
    Acer’s consolidated revenue for the first three quarters is NT$273.50B (US$9.22B), down 16.6% year-over-year; operating losses for this period are NT$3.15B (US$106.3M). Due to the impact of the intangible asset impairment of NT$9.94B (US$335.13M), PAT is NT$-12.95B (US$-436.42M), and EPS is NT$-4.76. After the impairment of intangible assets, Acer’s net value per share is NT$23.1.
    Looking at Q4, due to the adjustment on brand strategy, shipments for Acer’s notebooks, tablet PCs and Chromebooks are expected to decrease by 10% compared to Q3, however, the gross margin is expected to improve.
    Notes:

    • The spot rate as of November 5, 2013 was used — US$1: NT$29.67.
    • Acer Inc. consolidated revenue includes revenues from other companies in which Acer Inc. has 50% or more ownership, and already deducts any revenues between Acer Inc. and these companies to avoid double-counting.