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Microsoft’s next step in SoC level slot management

Update: Microsoft postpones IDP for 2 weeks to re-consult with chip players [June 2, 2011]

Microsoft has postponed its Integrated Development Program (IDP) for Windows 8 as the plan created significant dissatisfaction within the upstream supply chain. Microsoft is set to re-consult with the five major chip players about IDP, while Microsoft OEM vice president Steven Guggenheimer also paid visits to executives of Acer and Asustek Computer on June 1, to communicate and is set to re-release details of IDP after two weeks, according to sources from notebook players.

Sources from chip players pointed out that Microsoft’s actions have their reasons, but the way the company unfolded the plan to its partners could make its partners feel unpleasant since players that do not participate believe they will lose the opportunity to launch Windows 8-based products first hand, which could seriously affect their product lineup in the future.

The chip players also noted that the development of ARM-based Windows 8 has difficulties and if Microsoft adopts an open development program as in the past, the company may not have enough manpower to support and answer all the problems and questions chip and system players have.

Following Microsoft’s CES 2011 move to the SoC level slot management of the market, here is the next step in that direction:

Taiwan PC vendors seeking participation in developing Windows 8 [May 25, 2011] (emphasis is mine)

Microsoft has talked with Nvidia, Qualcomm, Texas Instruments (TI), Intel and AMD for their participation in its Integrated Development Program specifically for developing Windows 8 for use in tablet PCs and has asked each IC vendor to invite two PC vendors for joint development and testing, according to industry sources in Taiwan. Taiwan-based PC vendors who have been in long-term partnerships with Microsoft have complained to the Ministry of Economic Affairs (MOEA) because they were not invited to participate, and hope for the government’s negotiation with Microsoft, the sources added.

For each of the five IC vendors, Microsoft seems to have desirable PC vendors such as Samsung Electronics, Hewlett-Packard (HP) and Dell, the sources indicated.

The IC vendors are actually unwilling to invite only two PC vendors because they each have many PC clients and participation of more PC vendors is commercially favorable for them. Thus, the IC vendors have urged Microsoft to invite more PC vendors, but Microsoft has so far insisted on the quota of two for the initial period, the sources said.

Wu Ming-ji, director general of the Department of Industrial Technology under MOEA, indicated the department has heard about Microsoft’s move from Taiwan-based PC vendors although Microsoft has not confirmed it.

In view of the business performance and global reputation of Taiwan-based vendors Acer, Asustek and HTC, the Taiwan government recommends that Microsoft invite them to co-develop Windows 8 in the first round because this would be in Microsoft’s best interest, Wu emphasized.

However, Wu did not indicated whether the government will negotiate with Microsoft or make any arrangement.

What happened at CES 2011 has been described in my CES 2011 presence with Microsoft moving to SoC & screen level slot management that is not understood by analysts/observers at all [Jan 7, 2011] report.

Since that report is enormously large I will include here all the relevant excerpts regarding the SoC level of slot management:

Microsoft’s CES 2011 presence is summarized in two detailed parts below, one for the System on a Chip (SoC) support announcement and the other based on the Steve Ballmer’s CES 2011 opening keynote. The first one has, however, been a source of great confusion among the company watchers, analysts and observers, therefore before we start the detailed overview in these two parts we should look into that situation first.

While the company has clearly stated that Microsoft Announces Support of System on a Chip Architectures From Intel, AMD, and ARM for Next Version of Windows [Jan 5] even such an ardent Microsoft watcher as Mary-Jo Foles interpreted this as a simple message that CES: Microsoft shows off Windows 8 on ARM [Jan 5]. No wonder that Computerworld has written an article that an Analyst ‘baffled’ by Microsoft talk of Windows 8 on ARM [Jan 6]:

In an accompanying analysis article IDG News Services has even up the ante by declaring that Microsoft must get ISVs onto ARM bandwagon, Microsoft has a lot of work to do moving Windows to ARM chips [Jan 6]:

This is all absolutely wrong. The truth is that Microsoft made a strategic decision of moving its core slot management approach to the key System on a Chip (SoC) vendors. It is a decision of enormous significance because up to now the company was managing the slots created by the PC vendors. That is Microsoft had been trying to ensure all along that the client PCs shipped to the market, the “slots” in terms of Microsoft internal way of thinking:

  1. Are best when they are running Microsoft system software.
  2. Have that software already installed when the devices are out of the factory floor (with OEM versions)

From now on Microsoft will do a kind of similar thing on the SoC level (and on the screen level as well), this is my conclusion as I carefully compiled all the available information in the two parts available below. This became absolutely obvious to me as I compared the below details with the radically new “slot situation” represented in my previous post Changing purchasing attitudes for consumer computing are leading to a new ICT paradigm [Jan 5].

Look for example how PC vendors were underrepresented in the keynote compared to what had been before (see my earlier posts: Windows slates in the coming months? Not much seen yet [July 13 – Oct 6, 2010] and Windows 7 tablets/slates with Oak Trail Atom SoC in December [Nov 1 – 24, 2010]) as well as how on the electronics industry level things had been changed recently (see my earlier posts: Marvell ARMADA beats Qualcomm Snapdragon, NVIDIA Tegra and Samsung/Apple Hummingbird in the SoC market [again] [Sept 23 –Nov 4, 2010,] and Intel’s industry position and prospects for years ahead [Dec 9, 2010]).

Notes:
– Mary-Jo Foley started to discover some, but only some real motives in her latest With Windows coming to ARM, what happens to Windows Embedded Compact? [Jan 7]. There she mused about the really significant fact of the cancellation of Microsoft OEM chief’s planned appearance at the J.P. Morgan Tech Forum at CES (see the final agenda where Microsoft is missing) which was much anticipated by the investor community.
– Although for me that sign is important as well, the fact that HTML5 related announcements (as was anticipated in my previous post of Windows 7 slates with a personal cloud based layered interface for touch-first HTML5 applications on the CES 2011 [Dec 14, 2010] post) were postponed has even much bigger significance. Whatever will come regarding that upto the MIX 2011 of April 12-14 will be equally important to clarify the rest of the new strategic Microsoft picture. Particularly I am expecting that Silverlight technologies will nicely join the already known IE9/HTML5 push in a new platform technology setup.

Part I. The SoC support announcement

Microsoft Announces Support of System on a Chip Architectures From Intel, AMD, and ARM for Next Version of Windows [Jan 5], (emphasis is mine):

Microsoft Corp. today announced at 2011 International CES that the next version of Windows will support System on a Chip (SoC) architectures, including ARM-based systems from partners NVIDIA Corp. [Tegra platform], Qualcomm Inc. [Snapdragon platform] and Texas Instruments Inc [OMAP platform]. On the x86 architecture, Intel Corporation and AMD continue their work on low-power SoC designs that fully support Windows, including support for native x86 applications. SoC architectures will fuel significant innovation across the hardware spectrum when coupled with the depth and breadth of the Windows platform.

At today’s announcement, Microsoft demonstrated the next version of Windows running on new SoC platforms from Intel running on x86 architecture and from NVIDIA, Qualcomm and Texas Instruments on ARM architecture. The technology demonstration included Windows client support across a range of scenarios, such as hardware-accelerated graphics and media playback, hardware-accelerated Web browsing with the latest Microsoft Internet Explorer, USB device support, printing and other features customers have come to expect from their computing experience. Microsoft Office running natively on ARM was also shown as a demonstration of the potential of Windows platform capabilities on ARM architecture.

Next version of Windows on Qualcomm Snapdragon ARM demo at CES 2011 Ballmer keynote -- Jan 5, 2011

SoC architectures consolidate the major components of a computing device onto a single package of silicon. This consolidation enables smaller, thinner devices while reducing the amount of power required for the device, increasing battery life and making possible always-on and always-connected functionality. With support of SoC in the next version of the Windows client, Microsoft is enabling industry partners to design and deliver the widest range of hardware ever.

Next Version of Windows Will Run on System on a Chip (SoC) Architectures from Intel, AMD and ARM [Jan 5]
(emphasis is mine) Q&A: In a technology preview at CES, Microsoft demonstrates Windows running on new SoC x86 and ARM-based systems.

The Microsoft News Center team talked with Steven Sinofsky, president of the Windows and Windows Live Division, in advance of the announcement.

Microsoft News Center: Can you give us an overview of what led you to make this announcement today and what the specific news is?

Sinofsky: We are making this announcement now to allow greater collaboration across our expanded partner ecosystem so we can bring to market the widest possible set of PCs and devices, from tablets on up, with the next generation of Windows. We’re at a point in engineering the next release of Windows where we are demonstrating our progress and bringing together an even broader set of partners required to deliver solutions to customers.

We’ve reached a point in technology where everyone really does want everything from their computing experience — the power and breadth of software for today’s laptop, the long battery life and always-on promise of a mobile phone, and the possibilities from a new generation of tablets. Bringing these capabilities together to meet customer demand requires innovation in hardware as well as a flexible, evolving software platform to bring it to life.

Microsoft News Center: Tell us about your partners on ARM-based systems. How were they selected and what do they bring to the table?

Sinofsky: It takes experienced partners to help deliver Windows to a whole new set of devices and we’re pleased NVIDIA, Qualcomm and Texas Instruments have joined us in this technology demonstration. We look forward to even more robust collaboration between silicon partners and a broader set of partners as we work together to bring new PCs and devices – from tablets on up – to market with the next version of Windows.

Microsoft News Center: You’ve talked about these new systems being ready for the next version of Windows. What does this mean for future hardware innovation on Windows 7?

Sinofsky: Windows 7 continues to be extraordinarily well-received by customers – consumers and businesses – using a broad selection of PCs for a wide variety of usage scenarios. There is no better place to see this array of choice and innovation than at a show like CES. At the Windows 7 launch, we saw a terrific line-up of new offerings from partners, and this CES brings another wave of great Windows 7 PCs across a wide range of form factors and capabilities, including new designs on Intel’s 2nd Generation Intel® Core™ Processor Family and AMD’s Fusion APUs. OEMs are delivering great designs and personalized selection across the wide range of PCs including convertibles, gaming rigs, all-in-ones, ultraportables, everyday laptops, and tablet PCs. We know we’ll see additional waves of hardware innovation over the next several seasons as well and we look forward to continuing to work closely with our partners.

Microsoft News Center: What exactly are you demonstrating today as part of this announcement with respect to Windows on ARM?

Sinofsky: Today’s demonstrations will highlight the work we have done on the architecture of Windows to enable the richness of the Windows platform to run natively on the ARM platform. That includes support across a full range of scenarios like hardware accelerated media playback, hardware accelerated Web browsing with the latest Internet Explorer, USB device support, printing, and other features customers have come to expect from their computing experience.

The underlying architecture and engineering work includes a significant set of capabilities to run natively on ARM across the low-level subsystems of Windows as we bring Windows together with this new hardware platform.

Today’s demonstration represents the first showing of the next release of Windows. We know many of our most enthusiastic supporters are interested in learning more about the user interface, programming APIs, and other new features to come in Windows. The announcement today is just the start of our dialog with a broad community around Windows and, as with Windows 7, we will be engaging in the broadest pre-release program of any operating system. So there is a lot more to come.

Microsoft News Center: What can you tell us about Office on ARM?

Sinofsky: We’re committed to making sure that Windows on SoC architectures is a rich Windows experience. Microsoft Office is an important part of customers’ PC experience and ensuring it runs natively on ARM is a natural extension of our Windows commitment to SoC architectures.

Microsoft News Center: What else can you say about the next version of Windows?

Sinofsky: What we showed today was a technology preview of how Windows can adapt to run on SoC architectures. We are making this announcement now to enable our silicon partners, including new ARM partners, to collaborate across the ecosystem to bring innovation to market with the next version of Windows. We’re hard at work on all the aspects of the next version of Windows and we’ll share more information when the time is right.

Update: Intel CEO Paul Otellini addresses Microsoft’s ARM move in the wake of record earnings announcement [Jan 13] (emphasis is mine)

The plus for Intel is that as they unify their operating systems we now have the ability for the first time, one, to have a designed-from-scratch, touch-enabled operating system for tablets that runs on Intel that we don’t have today; and, secondly, we have the ability to put our lowest-power Intel processors, running Windows 8 or the next generation of Windows, into phones, because it’s the same OS stack. And I look at that as an upside opportunity for us.

On the downside, there’s the potential, given that Office runs on these products, for some creep-up coming into the PC space. I am skeptical of that for two reasons: one, that space has a different set of power and performance requirements where Intel is exceptionally good; and secondly, users of those machines expect legacy support for software and peripherals that has to all be enabled from scratch for those devices.

Part II. The Steve Ballmer CES 2011 opening keynote and all other Microsoft related
– Footage from the Microsoft keynote with some relevant keynote transcript excerpts included
– New Windows Laptops, Tablets and Slates Showcased
– The Next Generation of Microsoft Surface – LCDs That Can ‘See’
– New Xbox Avatar Capabilities on Display
– Copy-and-Paste Coming to Windows Phone 7
– Additional details for the three PCs demonstrated in the keynote
– Other new PCs
– Hardware acceleration for cloud clients (browsers etc.): AMD Fusion APUs, NVIDIA GeForce 500M [Jan 14]
– Xbox and Surface 2 additional information
– Windows Embedded Standard 7: the first wave of OEM partners exploiting the included Windows Media Center

See more in my CES 2011 presence with Microsoft moving to SoC & screen level slot management that is not understood by analysts/observers at all [Jan 7, 2011] report.

Chromebook / box with Citrix Receiver going against Microsoft

Update:
– “Asus is more hesitant about another new entrant to the notebook space: Google Chromebooks. Google introduced these lightweight Web-centric devices in May with Samsung and Acer’s support. Asus works with Google on its tablets and smartphones but Shih said the manufacturer is still assessing the Chromebook market.
Asus: Super-Thin ‘Ultrabooks’ Can Capture 50% Of Notebook Market [July 29, 2011]
– “Chromebooks work best for people who live on the web – spending most of their time in a browser using web applications. We expect many consumers as well as many businesses and schools to greatly value the speed, simplicity and security this operating system provides.
Internet at the heart of everything: Q&A with Chrome OS [July 15, 2011]

Chromebooks Are Doomed to Fail [PCWorld, May 15, 2011]

The Chromebook is not any lighter or smaller than a standard netbook. It boots up faster, and has longer battery life than a full notebook, but so do most netbooks. The difference between the Chromebook and a standard netbook is that with a netbook you can do everything you can do with a Chromebook, and you can still do all of things you normally do with a PC.

Essentially, buying a Chromebook is like buying a television that is only capable of delivering some of the channels, even though there are televisions available for the same price that can give you all of the channels. The Chromebooks are going to retail from $350 to $500. Funny thing about that–at BestBuy.com there are 15 netbooks listed that range from $230 to $530.

Google, Intel set to upgrade Chromebook performance [July 20, 2011]

Google plans to upgrade the Chromebook design from originally adopting Atom N570 processors to mainstream Core i series processors to significantly boost system performance, while strengthening the machine’s security. The plan has already received support from Intel with the company giving a 10-20% discount for related processor quotes, according to sources from notebook players.

In addition to Samsung and Acer, there are already several notebook vendors including Asustek Computer, already considering to join the upcoming Chromebook upgrade project and are set to launch related products after the fourth quarter, the sources noted.

The sources pointed out that despite the 12-inch Chromebook is mainly being pushed for its cloud computing capability, with most work being done by the back-end servers, since their hardware specifications are the same as a netbook, while being US$50-100 more expensive than a Windows 7-based netbook, and having an unattractive industrial design, the overall price/performance ratio is disappointing.

Therefore, Google has recently started notifying its partners that Chrome OS already has an obvious upgrade path for its hardware specifications and related security, while the company is also providing assistance with marketing and is aiming to push the product’s price range to above US$500 and increase its attractiveness in the market.

However, some notebook vendors believe Android’s success in smartphones and tablet PCs does not guarantee the success of Chromebook, and Microsoft still has an un-touchable position in the PC industry. Since most consumers are already used to Windows, while Windows has great software compatibility, if Chromebooks cannot outmatch Windows products on pricing, while maintaining standard performance demands, consumers are unlikely to accept a brand new operating system in the short term.

New computers for the browser-based world [May 11, 2011] (emphasis is mine)

For businesses and schools, we’re offering a subscription that includes the Chromebook, a web-based management console and 24/7 support from Google starting at $28 per month for businesses and $20 per month for schools. … to date the innovation has stopped at the PC. We still worry about crashes, long boot times, software incompatibilities, endless program updates, outdated hardware, viruses, and all the other headaches associated with a personal computer. What’s more, managing a PC is expensive when you include setup, maintenance and security – not to mention the lost productivity when things break. According to Gartner Research, the total cost for a desktop computer is between about $3,300 and $5,800 per year and laptops can cost even more.

Chromebooks relieve these pains. They boot in 8 seconds, resume instantly and have WiFi and optional 3G so that users can always stay connected. Since Chromebooks update automatically, the software gets better over time, delivering the latest features as soon as they are released. Chromebooks are the first PCs designed with ongoing security threats in mind, which is critical for businesses. Chromebooks employ the principle of “defense in depth” to provide multiple layers of protection, including sandboxing, data encryption, and verified boot – to help keep your organization safe.

We also recognize that organizations want to centrally manage their Chromebooks, so we’re happy to announce we’re making this easy, with the ability to control accounts, applications and devices from a single web-based console. The new Chromebooks pricing model and simple, central maintenance means that Chromebooks are far more cost-effective than traditional PCs. Companies can save thousands of dollars per employee each year!

… 85% of new software vendors will be focused on developing web-based apps by next year … Chromebooks work with your existing web apps, browser-based apps behind the firewall and we even have a solution for your desktop applications via our collaboration with Citrix. By navigating to an HTML5-based version of Citrix Receiver, users can access virtualized applications such as Adobe® Photoshop® right from the browser.

We believe that a combination of web and virtualized apps will suit most business users today; in fact, a recent survey we commissioned found that two-thirds of companies could already switch the majority of their employees to an exclusively browser-based computing environment.

Learn more about Chromebooks for Business and how pilot customers are using them.

Update: Another step in the browser-based desktop revolution [May 25, 2011] (emphasis is mine)

Today we’re excited that Citrix has announced Citrix Receiver for Chromebooks, based on HTML5 standards – coming soon to the Chrome Web Store. This is great news for businesses and schools that want to take advantage of a modern browser-based operating system while preserving access to their existing desktop applications. At I/O for instance, we demonstrated Citrix Receiver running on Chromebooks and accessing a virtualized version of Adobe® Photoshop® right from the browser.

Now Chromebook users can not only access the huge number of business web apps and browser-based applications behind the firewall, but through Citrix Receiver they can also access an exhaustive set of desktop applications. This means that organizations don’t have to repurchase or rewrite existing applications when moving to Chromebooks, and they can offer Chromebooks to a wider range of users. We’re working to make the browser the platform for business computing, and we’re happy to be collaborating with Citrix on this transformation.

Update: Citrix Receiver Now Helps Business say “Yes” to More than 1 Billion End User Devices — Self-Service Access to Any SaaS, Web and Windows App [May 25, 2011]

Today at Citrix Synergy™, where virtual computing takes center stage, Citrix Systems announced multiple new updates to Citrix Receiver™, its universal software client that allows companies to deliver corporate apps, desktops and data to any device, whether corporate or employee owned. With today’s announcement, Citrix Receiver is now verified to support more than 1,000 different PC and Mac models, 149 different smartphones, 37 tablets, 10 different classes of thin clients, and all major device operating platforms, including new environments like iOS, Android, webOS and Google ChromeOS. With consumer devices flooding the workplace, Citrix Receiver now gives businesses around the world the power to say “yes” to more than 1 billion end user devices, knowing that they can deliver a secure, high-definition experience to virtually any device in the world.

In addition to offering complete choice and flexibility to use the devices they choose, Citrix Receiver gives end users full self-service choice of the apps they want to run, when Windows, web or SaaS based. The ability to seamlessly interact with all their desktops, apps and data on any device, from any location, effectively gives users 24×7 access to a “personal cloud” where anything they need is just a click or touch away.

By delivering this level of choice and flexibility, customers can achieve increased business productivity and transform IT from managing internal systems to on-demand service delivery. When combined with key Citrix infrastructure products like Citrix XenDesktop®, Citrix XenApp™ and the new NetScaler® Cloud Gateway™, Citrix Receiver provide the essential components to embrace this shift and allow employees to work anywhere, anytime, on any device.

Supporting Partner Blogs

Expert Blogs

A new kind of computer: Chromebook [May 11, 2011] (emphasis is mine)

A little less than two years ago we set out to make computers much better. Today, we’re announcing the first Chromebooks from our partners, Samsung and Acer. These are not typical notebooks. With a Chromebook you won’t wait minutes for your computer to boot and browser to start. You’ll be reading your email in seconds. Thanks to automatic updates the software on your Chromebook will get faster over time. Your apps, games, photos, music, movies and documents will be accessible wherever you are and you won’t need to worry about losing your computer or forgetting to back up files. Chromebooks will last a day of use on a single charge, so you don’t need to carry a power cord everywhere. And with optional 3G, just like your phone, you’ll have the web when you need it. Chromebooks have many layers of security built in so there is no anti-virus software to buy and maintain. Even more importantly, you won’t spend hours fighting your computer to set it up and keep it up to date.

Chromebooks will be available online June 15 in the U.S., U.K., France, Germany, Netherlands, Italy and Spain. More countries will follow in the coming months. In the U.S., Chromebooks will be available from Amazon and Best Buyand internationally from leading retailers.

Day 2 kicked off with the announcement that Chrome is now at 160M active users, up from 70M last year. Watch for more announcements from the Chrome Web Store, Angry Birds, Chromebooks and Chrome In-App Payments.

There is a 30”+ talk about “the power of the web” till [39:00] (with most emphasis on WebGL based things including hardware accelleration) then going to Chrome OS and fast [40:35] moving to Chromebook, then again to Chrome OS which is ending at [52:20], then the use case of using Chromebooks disconnected, hundred of apps on Chrome webstore already working offline, Google Apps coming in June 15, then [54:10] Samsung, Acer (with price starting at $349), Intel etc. partners. From [57:40] the businesses and education institutions part. Along Citrix mentioning VMware as well. At [1:01:30] showing Chromebox as well. Complete End-to-End Offering for businesses. $28/month price complete, changing fundamentally the way computing is … Order directly from Google. … every of our attendee gets a free Chromebook. Ending at [1:08:10]. But no Chrome In-App Payments.

Samsung Chromebook Series 5

Intel® ATOM Processor N570 [1.66Ghz]
2GB Standard System Memory [DDD3]
16GB SSD (mSATA)

White / Titan Silver
WiFi / 3G
$429 / $499

SuperBright 12.1” LED display [1280×800]

Battery Hour Life: Up to 8.5 hours (Google Chrome Battery Test)

image image

SlashGear 101: Google Chromebook [May 11, 2011]

This summer, Gmail, Google Calendar and Google Docs will all get “offline support” for Chrome OS – i.e. you’ll be able to use them without a data connection. Netflix and Hulu streaming video support will also be added, though you’ll obviously need to be online for those.

Google is also readying a desktop version, the Google “Chromebox”, about which little is known but that we’re assuming will bring the same Chrome OS experience to users not concerned about mobility. Since part of Chrome OS’ charm is that users can log in on any machine and get the same experience, schools and businesses could have a combination of Chromebox and Chromebook hardware and staff/students share them depending on where they were going to be working.

Google Chrome OS “Chromebook” Detailed [May 11, 2011]

Hands On With Google’s New Chromebook [May 12, 2011]

Citrix, VMware Bringing Enterprise Apps To Google Chromebooks [May 11, 2011] (emphasis is mine)

Citrix Receiver acts as a front door for enterprise applications stored on XenDesktop and XenApp servers in the customer’s data center, delivering them to notebooks, tablets and mobile devices.

Citrix Receiver For Chrome, currently in beta and slated for launch this summer, will do the same for Chromebooks, Google’s new Web optimized PCs, according to Gordon Payne, senior vice president and general manager of Citrix’s Desktop Division.

Payne says his company has plenty of relevant experience in delivering enterprise applications to Google Chromebooks. “For the past 10 years we’ve been lifting apps up off the desktop, centralizing them in the data centerand delivering them as a service,” he said.

Citrix is looking forward to introducing Chromebooks to its customer base, Payne said. During the Q&A, Payne was asked how this might affect Citrix’s Windows business, a fair question since Citrix is one of Microsoft’s largest partners.

“Users should be able to use whatever device makes sense to them,” Payne responded. “Bring Your Own Device feeds into this philosophy. Chromebooks are a compelling argument for a new class of hardware, and we at Citrix love diversity.”

VMware, meanwhile, is building a similar version of VMware View that works in the browser, Rajen Sheth, group product manager for Chrome For Business, said in the Q&A. While Citrix has a timetable for its release of Receiver For Chrome, VMware is still in the midst of working on its implementation, Sheth said. VMware did not have a representative at the Q&A.

The virtualization partnerships show that Google is stepping up its efforts to crack into enterprise accounts. Most companies can switch 75 percent of their users to Chromebooks today by using Web applications and virtualization, Sundar Pichai, senior vice president of Chrome, said in a Wednesday keynote at Google I/O in San Francisco.

New Citrix Receiver Lets Chrome Notebook  Users Run Windows Business Apps [Dec 7, 2010]
Citrix joined Google on stage at its live Google Chrome event in San Francisco to preview the new Citrix Receiver for Chrome Notebooks.

Today, Citrix Systems (NASDAQ: CTXS) joined Google on stage at its live Google Chrome event in San Francisco to preview the new Citrix Receiver™ for Chrome Notebooks (see today’s related announcement blog). Available soon as a free app on the Google Chrome Web Store, Citrix Receiver will allow Google customers to run their existing Windows business applications directly on the new web-based Chrome notebooks with a native user experience, fast performance, and full enterprise security. As a result, Google customers will be able to enjoy all the benefits of a fast, lightweight, web-based notebook computer for personal use, and still have easy, secure access to their Windows-based work applications, desktops and data at any time (see visuals).

Citrix Receiver also represents a win for corporate IT departments, allowing them to deliver existing enterprise applications and desktops as a secure, on-demand service to Chrome notebook users with no new support requirements – and no compromise in security or user experience. Because Citrix Receiver supports all popular security standards, corporate data is safe at all times. End users also enjoy a rich, high-definition experience for all apps and desktops, thanks to the built-in Citrix HDX™ technology.

Citrix Receiver is a key part of the Citrix end-to-end virtual computing strategy, designed to simplify computing for IT, and give end users more choice and flexibility in how and where they work. It is available today for a wide variety of end user devices, including PCs, Macs, laptops, thin clients, tablets and smartphones.

Pricing and Availability
Citrix Receiver for Chrome Notebooks is scheduled to be available as a free app from the Google Chrome Web Store in the first half of 2011. Citrix Receiver works by connecting to the Citrix XenDesktop® or Citrix XenApp™ servers already running in the datacenters of most corporate customers. Every day, XenDesktop and XenApp deliver virtual desktops and applications to 100 million corporate employees at more than 230,000 enterprises worldwide, including 99 percent of the Fortune 500.

Sundar Pichai, Vice President of Product Management for Google
“The web has become an incredibly powerful platform for innovation, allowing users to do much more online than ever before. We’re happy to work with Citrix to give Chrome notebook business users a way to enjoy all the benefits of the web, while still having the flexibility to access important business applications in their work environments.”

Gordon Payne, Senior Vice President and General Manager at Citrix
“The new Chrome notebook breaks new ground in simplifying end user computing devices. Citrix is pleased to be working with Google on this exciting new technology and promise it holds for our joint customers.  Together, we can ensure that these new devices are enterprise-ready, allowing our customers to securely run their existing corporate applications on their Chrome notebooks. Extending Citrix Receiver support for Chrome notebooks will provide virtual computing solutions that simplify computing for IT, and enable productive, virtual workstyles for users.”

Related Links and Announcements:

Google Search Finds Citrix Receiver for Chrome Notebooks [Dec 7, 2010] (emphasis is mine)

Citrix has just announced Citrix Receiver for Chrome Notebooks. The new Google OS and reference design for notebooks is designed to run apps entirely from the web. That’s relatively easy for web and SaaS apps, but for the thousands of corporate Windows apps Google needed another answer in order to make the new platform useful as a business tool or even a consumer device with casual access to work apps. The answer came from talking to CIO’s and IT Pros at companies who would need to endorse the device, ” add Citrix Receiver ” was an obvious solution. ( You can also find the answer by Google searching run windows apps from any device or any variation of that )

Google’s announcement today included a keynote demonstration of Citrix Receiver accessing a number of Microsoft applications hosted on XenApp. This Receiver for Chrome Notebooks is also unique in that it’s based on HTML5 and requires no download and install like most Receivers. It’s very cool, just click the icon, log-on and everything required comes down from the web. The new Web Receiver interface is presented including the ability to search, subscribe and select favorite apps. The apps launch as expected and the performance is great. What’s different is the apps run maximized inside the Browser vs conventional windowing, and task switching is accomplished through the browser tabs. Check out the demo at http://www.youtube.com/watch?v=Xjb5kFLOz_Q&feature=channel fast forward to Minute 21 [ending at 39:00].

Video footage from the Chrome event on 12/07/10. Sundar Pichai, Product Management Lead for Chrome gives update on Chrome OS and announces the pilot program.

Some screen shots of Citrix Receiver for Chrome Notebooks:

The Citrix Receiver will also be included in Google’s Chrome Web Store when its available in 1H2011. Users will only need a company provided link to get to a log-on page making app delivery simple for IT.

Google’s entry into the OS market is interesting and fits well with their vision to host everything on the web. Users get device independence, and IT meets the objective to minimize support for distributed end point devices. With Google Chrome for Notebooks, Google will provide automated updates to the OS as required, and security exposures are minimized because nothing can be installed locally. Add Citrix Receiver and IT should be happy. I think user adoption will depend on the devices that hardware vendors come up with. These new Notebook devices will compete with Tablets in the limited task mobility segment and full function Windows 7 Netbooks & Laptops on the other side, time will tell…

Embrace the consumerization of IT – Citrix Receiver gives you the power to say ‘yes’ [Dec 7, 2010] (emphasis is mine)

Today Citrix demonstrated Citrix Receiver for Google Chrome Notebook at Google’s launch event in San Francisco (watch the replay). Citrix Receiver gives people access to their enterprise apps using any device, anywhere – enabling IT to embrace consumerization and make their employees more productive.

Consumerization will force more IT change over the next few years than any other technology or trend. The phrase “consumerization of IT” stems from people’s experiences as consumers of technology at homesuch as using simple online self-service applications, or using mobile devices to instantly access their information and it is changing the way all of us think about computing. Computing has become integrated into our everyday life and is not just for work activities, and it is changing our expecations of what computing at work should be. This is a big trend – something that none of us as individuals can control. As an IT industry, we have no other option but to embrace this trend, and plan for how consumerization will impact computing for people at work.

If you are unsure about what consumerization of IT means for computing at work, here are few things that you need to know:

  1. End users will have a choice of device – they will be able to use a device of their convenience to get access to their apps. They may be company owned or may be employee owned. You may have users using their corporate Windows device and have other devices that you do not have full control over.
  2. Users will be able to use the same device for their personal and corporate appssimultaneously.
  3. Users will prefer a self-service experience to access their apps

These three requirements are almost impossible to address with traditional distributed computing within IT environments. Instead, IT needs to do something different.

Google’s announcement regarding the Chrome OS notebook and Chrome OS Web store is a good example of the choice that people have for computing at home. I attended the Google’s launch event live and found the demos quite interesting – seeing how end users can add their apps to their notebook and run them on-demand. It means that there will be another device that someone at work will show up alongside their corporate PC to access their Windows applications.

This is a problem for IT. Enterprise apps and data were never built for the kind of flexibility and security challenges this kind of user choice and mobility introduces. Many IT teams are now struggling to embrace this “consumerization of IT.”

Citrix’s solution to this problem is virtual apps and desktops along with Citrix Receiver – both designed to deliver any enterprise app or desktop to any user, anywhere. The Majority of these are Windows based apps and soon to be adopted Windows 7 desktops. Citrix Receiver, which is available for virtually every device – Windows PCs/laptops, Macs, iPhones, iPads, Android smartphones/tablets, Blackberry, and Windows Mobile, offers users a high performance access to any enterprise app, anywhere.

Today, Citrix demonstrated an early version of Receiver for Chrome OS Notebook at the Google launch event, showcasing access to enterprise Windows based applications securely with a high definition experience. As with all versions of Citrix Receiver, customer demand is strong, making Receiver a “must have” app for new consumer devices. Google’s enterprise customers asked them to partner with Citrix Google Notebooks can have access to enterprise apps & desktops – most of them based on Microsoft Windows. Citrix Receiver for Chrome Notebook will be available in first half of 2011. Users will be able to download it from Google Chrome Web Store.

So, the next time when an employee says they wish to use one of their devices to access the enterprise apps, you no longer have to say ‘no’. With Citrix Receiver, you have the ability to say ‘yes’ to any device – offering a rich high definition application access to all your employees anytime, anywhere.

Citrix Receiver, XenApp and the Windows Application Delivery Infrastructure

Citrix Receiver is a lightweight software client that makes accessing virtual applications and desktops on any device as easy as turning on your TV.

Much like a satellite or cable TV receiver in a broadcast media service, Citrix Receiver allows IT organizations to deliver desktops and applications as an on-demand service to any device in any location with a rich “high definition” experience.

As long as employees have Citrix Receiver installed, IT no longer has to worry about whether they are delivering to a PC in the office, a Mac at home, or an iPhone on the road. This approach radically simplifies desktop management for IT and gives end users far more flexibility and independence in how and where they work.

XenApp is the central software component of the Citrix Windows Application Delivery Infrastructure. The goals of XenApp and the Citrix Windows Application Delivery Infrastructure are to deliver on-demand applications to both physical and virtual desktops, and to determine and provide the best method of delivery. XenApp offers three methods for delivering applications to user devices, servers, and virtual desktops:

  • Server-side application virtualization: applications run inside the Data Center. XenApp presents each application interface on the user device, and relays user actions from the device, such as keystrokes and mouse actions, back to the application.
  • Client-side application virtualization: XenApp streams applications on demand to the user device from the Data Center and runs the application on the user device.
  • VM hosted application virtualization: problematic applications or those requiring specific operating systems run inside a desktop in the Data Center. XenApp presents each application interface on the user device and relays user actions from the device, such as keystrokes and mouse actions, back to the application.

A typical deployment is shown below. Delivery Services 1.0 provides the infrastructure that enables the next generation of Receiver functionality. The figure shows the architecture of Delivery Services and the interactions between the components in a typical environment.

Citrix Receiver—manages plug-ins, including the Self-service Plug-in, on the user device:

  • Online Plug-in/Offline Plug-in—enable users to access their subscribed resources. These plug-ins are used for application streaming when executables for applications are put in profiles and stored on a file server or Web server (the App Hub) which simplifies application delivery to users by virtualizing applications on client devices. To support streaming applications to the server, install either the online plug-in or Web plug-in on user devices. These applications must be published as “stream to server.” The Citrix offline plug-in is the new name for the Streaming Client. To support streaming applications to the user’s desktop (“stream to desktop”), as well as offline access to applications and dual-mode streaming, install both the offline plug-in and online plug-in on user devices. With dual mode streaming (“streamed if possible, otherwise accessed from a server”) XenApp is configured to stream software to client devices; otherwise, virtualize from a XenApp server. If launching a streamed application fails on the client device, XenApp seamlessly streams the application to the server and virtualizes the application on the client device from XenApp.
  • Self-service Plug-in (formerly Dazzle)—presents the resources and services available across the configured stores. Enables users to subscribe to and organize their resources. Corporate employees get 24 × 7 self-service access to the applications and content that they need to work productively. The Citrix Receiver self-service view offers a rich, intuitive user experience that requires no training. Citrix Receiver and the Self-service Plug-in make self-service IT a reality, giving users instant access to their resources and bringing the economics of the Web to enterprise IT.

Merchandising Server—delivers plug-ins and configuration updates to Citrix Receiver. Uses the Authentication Service to identify users and provides the administrative interface for configuring, delivering, and upgrading plug-ins for your users’ computers..

Delivery Services—integrates with your existing XenDesktop and XenApp infrastructure and employs Microsoft .NET technology running on Internet Information Services (IIS) and, optionally, Microsoft SQL Server to provide authentication and resource delivery infrastructure for Citrix Receiver and the Citrix Self-service Plug-in. Delivery Services consists of three services:

  • Authentication Service—authenticates users to the Citrix servers using explicit authentication and stores user credentials. Once a user’s credentials have been validated, the Authentication Service handles all subsequent interactions with the servers to ensure that users do not need to log on again.
  • Stores—retrieve user credentials from the Authentication Service to authenticate users to the Citrix servers. Enumerate the resources currently available from the configured servers and send the details to the Self-service Plug-in so the resources can be displayed to users.
  • Database—stores details of user subscriptions plus associated shortcut names and locations. When a user accesses a store with application synchronization enabled, the subscribed resources on the user device are automatically reconfigured so that the configuration is the same as that stored in the Delivery Services database.

Citrix Delivery Services Management console—enables administrators to create and manage stores and the Authentication Service.

Citrix servers—provide desktops, content, and online and offline applications.

The interactions that take place between the components in the environment shown above are described below.

  • A user logs on to a device; Citrix Receiver starts automatically.
  • If the user has not yet subscribed to any resources or if the user opens Citrix Receiver, the self-service view is displayed.
  • The user logs on to the stores that the Self-service Plug-in is configured to contact.
  • The Self-service Plug-in sends the user’s credentials to the Authentication Service.
  • Merchandising Server uses the Authentication Service to identify the user and sends any configuration updates specified by the administrator to Citrix Receiver.
  • The Authentication Service authenticates the user to the Citrix servers that provide the resources in the stores.
  • Using the Authentication Service to provide the user’s credentials, the stores contact the Citrix servers, obtain details of the available resources, and send this information to the Self-service Plug-in.
  • The Self-service Plug-in aggregates the resources from all the stores, but only those resources that the administrator has made available for this particular user are displayed in Citrix Receiver.
  • When application synchronization is enabled for a store, the store queries the Delivery Services database and sends details of the user’s subscribed resources and associated shortcuts to the Self-service Plug-in as part of the resource enumeration process.
  • The Self-service Plug-in compares the configuration received from the store with the configuration of the current device to determine whether the user has subscribed or unsubscribed from any resources, or modified any shortcuts on any other devices.
  • If any differences are detected between the user’s subscriptions on the current device and the configuration stored in the database, the Self-service Plug-in automatically adds and removes resources and moves or renames shortcuts to resolve the differences.
  • The user subscribes to and organizes resources in the self-service view of Citrix Receiver.
  • Shortcuts to the subscribed resources are added to the user’s device.
  • Any offline applications to which the user subscribes are downloaded from the XenApp farm to the user device by the Offline Plug-in. Once downloading is complete, the applications are available for use.
  • If the user subscribes to a Citrix Online product, the associated client application is installed locally on the device. If configured by the administrator, the user may also be prompted to create a Citrix Online account or request an account from the IT department.
  • When application synchronization is enabled for a store, the Self-service Plug-in notifies the store of any changes to the user’s subscribed resources and associated shortcuts. The store updates the database with the new configuration.
  • The user clicks on a shortcut to a subscribed resource.
  • For offline applications, the application starts and runs locally within an isolation environment.For desktops, content, and online applications, the Online Plug-in initiates a session with a XenDesktop or XenApp server providing the selected resource.

More information:

Designing a XenApp Deployment (inside XenApp 6 for Windows Server 2008 R2) [April 11, 2011] where detailed architecture diagrams and explanations are provided as well:

image

A XenApp deployment consists of three deployment groups: user device (represented in this diagram by Citrix Receiver and Citrix Dazzle), Access Infrastructure, and Virtualization Infrastructure.

  • On the left of this diagram are Citrix Dazzle and Citrix Receiver, which represent the set of devices on which you can install client software. Citrix Dazzle provides your users with a selection of applications you have made available to them. Citrix Receiver manages the client software plug-ins that enable your users to interact with virtualized applications. When designing a XenApp deployment, you consider how your users work, their devices, and their locations.
  • Access Infrastructure represents secure entry points deployed within your DMZ and provide access to resources published on XenApp servers. When designing a XenApp deployment, you provide secure access points for the different types of users in your organization.
  • Virtualization Infrastructure represents a series of servers that control and monitor application environments. When designing a XenApp deployment, you consider how applications are deployed based on your user types and their devices, the number of servers you need, and which features you want to enable in order to provide the support, monitoring, and management your organization requires.

The following diagram shows the access infrastructure in greater detail.

image

In this access infrastructure diagram:

  • All of your users use Citrix Dazzle to choose applications they want to run. Citrix Receiver plug-ins run them.
  • Onsite users within your corporate firewall interact directly with the XenApp Web and Services Site.
  • Remote-site users access applications through sites replicated by Citrix Branch Repeater.
  • Off-site users access applications though secure access, such as Access Gateway.
  • The Merchandising Server makes available self-service applications to your users through Citrix Dazzle.
  • EasyCall Voice Services enables your users to initiate telephone calls by clicking on telephone numbers displayed in their applications.
  • The XML Service relays requests and information between the Access Infrastructure and the Virtualization Infrastructure.

The following diagram shows the virtualization infrastructure in greater detail.

image

In this virtualization infrastructure diagram:

  • The XML service relays information and requests.
  • Based on Active Directory profiles and policies, the XenApp servers invoke the correct application delivery type for the user. The XenApp servers provide server-side application virtualization and session management. Session and deployment configuration information are stored in data collectors and a central data store represented by the deployment data store.
  • The App Hub provides Streamed Application Profiles, which are client-side virtualization applications housed in your enterprise storage.
  • The VM Hosted Apps server isolates problematic applications inside a seamless desktop, which, depending on the user profile, can be virtualized on the user device or on the server. The desktop images are provisioned through Provisioning Server. Session and server configuration information are stored in the deployment data store.
  • Provisioning Services delivers desktops to servers, which are stored as desktop images in your image repository.
  • SmartAuditor provides session monitoring. Recorded sessions are stored in your enterprise storage and configuration information is stored in the deployment data store.
  • Service Monitoring enables you to test server loads so you can estimate how many servers you need for your deployment and to monitor those servers once they are deployed.
  • Power and Capacity Management enables you to reduce power consumption and manage server capacity by dynamically scaling the number of online servers.
  • Single Sign-on provides password management for virtualized applications. Passwords are stored in the account authority.

Delivery Services & Self Service Plug-in Video Series [March 21, 2011]
– Part 1 – Merchandising Server component, concentrating on what’s new in Merchandising Server 2.1
– Part 2 – Receiver component, concentrating on what’s new in Receiver for Windows 2.1
– Part 3 – Delivery Services component, overview of what Delivery Services 1.0 is all about and how to configure it
– Part 4 – Self Service Plug-in component, covering an overview of Self Service Plugin 2.0, what’s new and how to configure it

TSMC led foundries and their SoC customers against Intel

See also: Intel’s SoC strategy strengthened by 22nm Tri-Gate technology [May 10, 2011]

Follow-up: Next-gen Snapdragon S4 class SoCs — exploiting TSMC’s 28nm process first — coming in December [Aug 9 – Nov 25, 2011]

Update: TSMC seeing tight capacity for 28nm processes [Nov 25, 2011]

Taiwan Semiconductor Manufacturing Company (TSMC) continues to see orders heat up for advanced 28nm technology, despite a general slowdown in the semiconductor industry, according to industry sources. Order visibility has stretched to about six months, said the sources.

TSMC is expected to see 28nm processes account for more than 2% of company revenues in the fourth quarter of 2011. The proportion will expand further to over 10% in 2012, as more available capacity coupled with rising customer demand boost the output, the sources indicated.

Wafer output using 28nm processes is projected to top 20,000 units a month by the end of 2011, and will expand significantly in 2012 when new capacity at Fab 15 comes online, the sources noted. Fab 15, TSMC’s third 12-inch fab, will begin volume production in the first quarter of 2012, and ultimately raise its monthly capacity to the designed level of 100,000 wafers per month.

Altera, AMD, Nvidia, Qualcomm and Xilinx have all contracted TSMC to manufacture their 28nm products. Broadcom, LSI Logic and STMicroelectronics reportedly are among potential clients for TSMC’s 28nm technology.

TSMC chairman and CEO Morris Chang remarked during the company’s most-recent investors meeting that sales from 28nm process technology would play an important source of company growth.

TSMC to Double Output Capacity in Five Years [May 6, 2011]

Over the past three years, the No.1 silicon foundry spent around US$16 billion boosting production capacity, to an equivalent of 10 million 200mm wafers. The company`s four new factories will help achieve the 20 million wafer goal after entering into pilot production sometime this year.

Advanced process technologies are crucial in the goal. The company will put its 28nm process into pilot production at its Fab 15, an extraordinarily huge wafer fab by capacity, in the third quarter of the year. By the end of this year, the company`s 300mm wafer fabs are projected to have total output of 300,000 wafers of chips a month.

TSMC Estimated to Earn NT$7 Per Share in 2012 [May 10, 2011]

The No.1 silicon foundry recently announced it would enter pilot production based on 28nm process technology sometime in the third quarter ahead of schedule and kick off volume production in the following quarter. So far, the chipmaker has completed 89 contracted 28nm tapeouts, the final results of photomask design for 28nm integrated circuit.

Industry watchers pointed out that the tapeout number is 10 times the number of all its competitors and twice the number of the company`s 40nm tapeouts introduced in 2008. TSMC, they added, has seen hefty revenue and earnings from 40nm process, which it took two years to develop.

Some institutional investors noted that advanced process technologies have propelled TSMC far ahead of its rivals in market dominance, with 65nm process securing a 65% of the contracts depending on the process and 40nm wining an 80% of the customers using the process. Overall, TSMC has filled 47.1% of world demands for silicon foundry service.

They analyzed TSMC still gains an upper hand in 28nm competition in spite of formidable competitors as Intel and Samsung. These competitors would have an uphill battle against TSMC if they fail to put 28nm process into volume production by the end of this year.

Over the next three years, smartphone and tablet PC will remain the major drivers behind TSMC`s growth.
This year, TSMC has budgeted US$7.8 billion for boosting its 28nm, 40nm and 65nm production capacities, compared with its US$5.9 billion spending on advanced process projects last year.

TSMC Makes Fortune From Smart Phones [May 3, 2011]

For every smartphone sold on the market, Taiwan Semiconductor Manufacturing Co. (TSMC) rakes in an average of US$7 in revenue from the sale, the company`s chairman and chief executive officer, Morris Chang estimated.

TSMC has been the primary contract manufacturer of the chips for almost all smartphones other than iPhones. Its contract buyers include processor vendors Nvidia Corp., Texas Instruments Inc. (TI) and Marvell Technology Group Ltd. as well as wireless-chip vendors Broadcom Corp. and Qualcomm International Inc.

Thanks to a strong smartphone market, sales of contracted chips for communications products constituted 48% of TSMC`s revenue of NT$105.3 billion (US$3.5 billion at US$1: NT$30) for the first quarter.

TSMC to Launch 20nm Pilot Production in 2012 [April 26, 2011]

Taiwan Semiconductor Manufacturing Co. (TSMC) will put its 20nm process into pilot production sometime in the second half of 2012 as its first step into 450mm wafer era, according to the company`s senior vice president in charge of research and development, S.Y. Chiang.

The senior vice president disclosed the process-technology roadmap yesterday at a forum, held in Taipei, addressing very-large scale integration (VLSI) technology.

As for 28nm process technology, Chiang pointed out that the company, which is recognized as the world`s No.1 pure silicon foundry, will place the process on volume production lines in the second half of this year. The company has begun pilot run of this process technology in the second quarter of the year on some design tapeouts. Tapeout means the final step of IC design cycle at which the photomask of the IC is sent for manufacturing.

Chiang noted that 28nm process can turn out more than twice as many chips as 40nm can on the same wafer. He added the company will complete pilot production of the process on 70 tapeouts throughout this year.

Chiang estimated the Moore`s Law, which is named after Intel Co-Founder Gordon E. Moore describing the number of transistors in an IC chip will double about every 18 months since the 1965 invention of IC, will remain applicable in the semiconductor industry at least until 7nm process is introduced.

He said in the future wafer foundries will not only shrink chip size but also system-on-chip size and the room for size-shrinkage technology to advance will remain ample.

Also, the room for cooperation between silicon foundries and chip assemblers, Chiang added, will grow bigger when sizes of single chips and system chips continue scaling down.

UMC Scrambles to Boost 300mm Capacity to Combat Nearest Competitor [April 13, 2011]

United Microelectronics Corp. (UMC) plans to set aside nearly 90% of the US$1.8 billion it plans to spend on expansions this year for boosting capacities at its 300mm wafer fabs, in a bid to further stay ahead of the ambitious GlobalFoundires Singapore Pte. Ltd.

GlobalFoundries, currently the world`s No.3 pure silicon foundry next to Taiwan Semiconductor Manufacturing Co. (TSMC) and United Microelectronics Corp. (UMC), has vowed to soar past UMC as its primary goal. The company has budgeted US$5.4 billion for expansions this year in conjunction with its ambition.
GlobaFoundries plans to boost output at its 300mm fab each in New York, Singapore and Dresden to the maximum 190,000 wafers altogether a month by 2012.

UMC plans to boost output of 300mm wafers to 150,000 a month sometime in the second half of next year after ramping up to 100,000 by the end of this year. Although the volume is 40,000 wafers fewer than GlobalFoundires’, UMC`s outputs of 200mm wafers are 20-30% above GlobaFoundries’ 200mm wafer outputs.

Industry executives estimated UMC would offer 40-50% more 200mm wafers than the nearest rival as soon as it merges HeJian Technology (Suzhou) Co., Ltd.

The 28nm Turning Point [Tom R. Halfhill, The Linley Group, April 18, 2011]

Foundries Bring High-k Metal Gates to the Masses

Metal tools delivered humanity from the Stone Age, and now, metal is enabling another technological breakthrough. For the first time, metal-gate transistors are broadly available to chip designers, allowing them to create higher-performance microprocessors that can still occupy less silicon and consume less power. This nanoscale application of metallurgy has been touted as the biggest advance in electronics since the invention of planar integrated circuits.

As usual, Intel got there first. In 2007, Intel introduced the first microprocessors built in its new 45nm high-k metal-gate (HKMG) process. The company substituted hafnium dioxide for the transistor’s silicon-dioxide gate dielectric and replaced the polysilicon gate electrodes of NMOS and PMOS transistors with other metallic materials. Thanks to higher dielectric constants (k), these materials increased the gate capacitance without reducing the thickness of the dielectric, allowing the transistor to operate at higher currents when switched on and to leak less current when switched off. (See MPR 1/29/2007, “Intel Leads the Way for High-k.”)

The rest of the semiconductor industry has been waiting four years for the same technology. Now, the wait is over. At the 32/28nm node, the leading independent foundries are introducing their own HKMG processes, and their first 28nm HKMG chips are entering production this year. Chip designers can use HKMG to deliver higher performance (by driving more current into the transistors) or to save power (mainly by reducing static current leakage). Most designers want a little of both.

Now that almost all digital-semiconductor companies except Intel rely on independent foundries or technology consortiums for their IC-process development, the 32/28nm rollout makes HKMG available to the entire industry. But the corollary is that HKMG probably won’t alter the competitive balances between most semiconductor-product companies, for the same reason: the technology is available to everyone. Although Intel enjoyed a four-year head start, the competitor most affected was AMD, the only other major vendor of PC processors. For the most part, everyone else competes with each other and not with Intel, and they’re all getting HKMG at about the same time.

Instead, the biggest contest is shaping up between leading semiconductor foundries, specifically TSMC (which reaps more than three times the revenue of any competitor) and upstart GlobalFoundries. If one of them can ramp production and improve yields significantly better than the other at 32/28nm, the foundry business could look much different at the 22/20nm node and beyond, when even more exotic technology will arrive.

Microprocessor Report subscribers can access the full story (7 pages, 5 graphics) here:
http://www.mdronline.com/mpr/h/2011/0418/251601.html

FinFETs Extend Intel’s Technology Lead [Tom R. Halfhill of the Linley Gwennap Group, May 6, 2011] (emphasis is mine)

Cadillac introduced tailfins to evoke high-tech style in the 1950s, but Intel’s new finned transistors are far from cosmetic. Purely functional, highly efficient, yet equally brash, these fin-shaped field-effect transistors (finFETs) are sure to be copied as widely as Cadillac’s useless appendages—and they will play a similar role in defining an era.

Intel calls finFETs “tri-gate” transistors, touting them as the first true three-dimensional devices built on planar integrated circuits. A tri-gate transistor folds a conventional planar gate into an inverted U-shaped fin that protrudes above the silicon substrate. By coating all three sides of the fin with metal, Intel builds a 3-D gate structure that has much more volume than a planar gate while still squeezing into the same horizontal space.

Tri-gate transistors can handle greater drive currents, allowing higher clock frequencies. They can switch states at a lower threshold voltage without sacrificing as much switching speed, which reduces dynamic power consumption. In addition, the thicker gate leaks less current, reducing static power. As always, chip designers can trade off these factors in various ways to achieve the best balance of performance and power consumption for the target application.

Intel will use the new transistors for both logic circuits and memory arrays in all its microprocessors built in the next-generation 22nm process, which debuts later this year. The company has demonstrated PC and server processors built with the new technology and is already shipping samples to OEMs for system design. Volume production is scheduled to begin in the fourth quarter and ramp quickly next year. And Intel isn’t hedging its bets: contrary to rumors, the new chips will use tri-gate transistors universally, abandoning planar transistors forever.

FinFETs reinforce Intel’s significant lead in chip fabrication. In addition to using new transistors, Intel is moving to the 22nm mode about two years ahead of the rest of the industry, which is only now beginning the transition to 32/28nm technology. The independent foundries serving virtually all of Intel’s competitors have no plans to use finFETs before the 14nm node—and adoption may be tentative even then. It appears that Intel has gained a head start of at least four years, much as the company achieved in 2007 by introducing high-k metal-gate (HKMG) transistors at the 45nm node. FinFETs could boost Intel’s position in the mobile and consumer markets, where it needs an edge to overcome entrenched competitors. —Tom

Integrated chips fuel smartphone growth [April 19, 2011]

Silicon integration will be the key differentiator in smartphones which could grow to 600 million units in 2014, driven by expansion in low-cost handsets, according to a presentation at the inaugural Linley Tech Mobile Conferencehere.

“The next 300 million smartphones will come from feature phone replacements,” said Linley Gwennap, principal of The Linley Group (Mountain View, Calif.), organizer of the event. “The pressure for smartphone designers will be in reducing systems cost to meet this growing demand for lower cost smartphones and silicon integration is a key,” Gwennap said.

Much of the integration will come from combining application and baseband processors. By 2014 nearly 70 percent of all smartphones will use such integrated chips, up from 40 percent in 2010, Gwennap predicted.

Such chips will be key as designers try to hit prices as low as $100 for smartphones sold in emerging markets. Meanwhile, “the percentage of the market you can address with stand-alone application and baseband processors is slowly diminishing” to about 80 to 100 million units a year, Gwennap said.

Qualcomm and Marvell led the move to integrated application and baseband processors and along with Broadcom and ST Ericsson own the pieces required for next-generation integrated chips, Gwennap said.

Qualcomm is shifting from a four- to a three-chip smartphone set in 2012 with separate devices for digital, RF and analog, he added. However many integrated chips may actually use multiple die in a package.

Quad-core chips too hot

In application processors, dual core is sweeping the market this year. Nvidia led the way with its Tegra 2 processor already shipping in LG smartphones and Motorola tablets. A half a dozen other dual-core mobile processors from all the leading chip makers will ship in systems this year, Gwennap predicted.

In February Nvidia demonstrated its next generation, the quad-core Tegra 3. Freescale and Qualcomm have announced similar products on the horizon.

“Some of the initial quad-core designs will exceed the thermal limits of what you can do in a smartphone, so you will need to throttle them back and then you won’t get the performance you expect,” Gwennap said. “Thus quad-cores will be more successful in tablets initially because of their better heat dissipation” until 28nm versions for smartphones are available, he said.

“Over the next year or two, Nvidia and Qualcomm will duel over the performance lead in apps processors, and TI never quite gets there,” said Gwennap. “Broadcom is aiming for lower performance mainstream tablets and feature phone replacements rather than the high-end luxury market [because] you don’t have to be the performance leader to make it in this market,” he said.

Intel is likely to find a small but significant foothold in smartphones over time, Gwennap said.

“By 2014, we expect Intel to have pretty competitive products on aggressive process technologies that may be enough to get them in a small number of phones but there are big barriers for them in creating a software ecosystem,” he said.

Mobile 3-D graphics are also on a tear moving from dual-core chips this year to quad-core versions soon. However, measuring raw mobile graphics performance remains a challenge, said Gwennap, calling for a mobile graphics benchmark.

The hardware along with new video engines will help process either two 1080-progressive video streams at 24 frames/second for stereo 3-D or 60 frames/s video for picture quality. To handle the load at low power rates will require video engines access system memory directly without going through a host CPU, he said.

Nokia may lag shift to dual-core phones [May 4, 2011]

Nokia may lag the shift to dual-core smartphone processors happening this year for lack of support from Microsoft, its new operating system partner.

Three companies are already shipping dual-core mobile processors and as many as eight will be by the end of the year, according to a talk at the Multicore Expohere. “Just about every high end smartphone” will move to dual-core processors in 2011, said Linley Gwennap, principal of the Linley Group (Mountain View, Calif.).

Microsoft removed multicore support from its Mobile Phone 7 OS, focusing the software only on a single-core Qualcomm chip set in an effort to get it to market quickly, said one source. The company knows it needs to update its mobile software more often than its desktop code, but it’s not clear when it will add multicore support.

Handsets typically have a 12-24 month lifecycle, said Gwennap. The lack of multicore support “could limit Nokia until Microsoft can retrofit the software for dual core,” Gwennap said.

Nokia has long been the leading supplier of cellphones, making its Symbian OS among the most popular mobile software platform. But the handset giant has been slow to respond to the concept of a Web-connected device pioneered by the Apple iPhone.

In the first quarter, Apple lead growth in smartphone unit sales, according to IDC.

Symbian^4 is expected to be released soon supporting multicore processors. However, Nokia recently struck a deal with Accenture to hire its Symbian team as part of a plan to layoff 7,000 people.

The LG Optimus smartphone was the first smartphone to use a multicore chip when it shipped in January, quickly followed by tablets from Motorola and Apple in February and March. Mobile multicore chips coming later this year include (in order of their expected appearance) the Samsung Exynos 4210, Qualcomm MSM8260, ST Ericsson U8500, Marvell Armada 2828 and Broadcom BCM 11311.

“ARM has a dual-core Cortex A9 reference design enabling the chip vendors to ship quickly. Most vendors are using it except Marvell and Qualcomm that designed their own multicore architectures.

The multicore chips will help speed core apps from the OS makers such as browsers, Flash and PDF viewers. They will also be used by third party game developers.

“It will take time for a broad base of multicore mobile software to appear,” said Gwennap.

About 21 percent of mobile devices will use multicore processors in 2011 rising rapidly to 94 percent in 2015, Gwennap estimated. By 2013 more multicore processors will ship in mobile systems than in PCs and servers, he said.

The trend will be accelerated by the arrival in 2012 of dual-core chips based on ARM’s Cortex A5 core replacing single-core Cortex A8 chips in mid-range phones. By 2014, those chips will get packed into low-cost smartphones, said Gwennap.

Serving a purpose: Why the ARM architecture is attracting attention in the server market [Feb 21, 2011] (emphasis in red is mine)

Power consumption in data centres is becoming an increasingly important issue – no surprise when these centres can house tens of thousands of servers. So there is a push towards the development of processors which offer higher performance with lower power consumption.This emerging market is attracting the attention of a number of processor developers, including Marvell. “Marvell is targeting data centres that support cloud computing and which provide web services,” said Linley Gwennap, principal analyst at The Linley Group. “In those cases, there would be some significant interest in what Marvell is doing.”

The latest processor family from Marvell, the Armada XP (Extreme Performance), uses the low power ARM architecture to deliver a 1.6GHz quad core variant that has the processing performance needed for the enterprise market. According to Viren Shah, Marvell’s senior director of marketing for embedded SoCs, the device family is aimed at networking, network attached storage, laser printers and the server market. “The server market is dominated by the x86 [architecture], but ARM is making forays into that segment – and the reason is mainly its low power,” said Shah.

Power is the all important metric. “With the quad core design, our goal is to be sub 10W,” said Shah. This is a noteworthy figure; according to Gwennap, Intel’s Xeon processor consumes around 40W. “Even at that power level, Xeon is not designed as an SoC.” In addition to Xeon, a South Bridge chip and Ethernet controllers would also be needed. Marvell has Sheeva, an ARM based core developed after gaining an architectural license when it acquired Intel’s XScale business in 2006.

Sheeva, which is ARM v6 and v7 instruction set compatible, is a two issue design: either two integer instructions or an integer and floating point are issued each clock cycle. The core also has a limited ability for instruction look ahead, boosting code throughput by reordering the sequence in which instructions are processed.

There are five devices in the Armada XP family: two single core; two dual core; and a quad core, the MV78460 (see fig 1). All are pin compatible, but vary in the on chip peripherals, cache size and the width of the memory interface. Each ARM cpu on the MV78460 has a 32kbyte instruction cache and 32kbyte data cache, while the four cores share a 2Mbyte L2 cache. The other Armada XP SoCs have a 1Mbyte L2 cache. The L2 cache is doubled in size in the MV78460 to maintain processing performance.

image

Sheeva cores access external memory through a controller, with the processor supporting DDR3 memory clocked at 800MHz. The device has 40bit physical addressing that supports up to 1Tbyte of dram. Three Armada XP SoCs, including the MV78460, support a 32 or 64bit memory data interface, while the rest have a 32bit bus. The MV78460 includes two serial ATA (SATA), four PCI Express and four Gigabit Ethernet (GbE) media access controllers (MACs).

These 10 controllers share 16 6GHz serdes, so the PCI Express controllers could be configured as three x4 ports and one x1 port, while the chip cojuld also support two SATA interfaces and a GbE interface. The Ethernet MAC supports the QSGMII interface such that all four GbE ports can be put onto a single serial link. One design challenge with the MV78460, according to Marvell, was cramming four cores and the I/O peripherals onto an SoC. “We have multiple fast I/O that must coexist in the system,” said Erez Alfiya, an application manager at Marvell. “Contention on one affects the whole system performance.” To this end, an on chip crossbar switch connects the cores and the L2 cache, as well as the peripherals as they access DDR3 memory.

The interface between each core and the L2 cache is 128bit wide and includes a coherency unit, which ensures cache coherency by updating the cache whenever data is written to external memory. The crossbar switch also supports the various on chip blocks. “That is a lot of bandwidth we need to supply to the different I/Os,” said Alfiya.

As an example, he cites the case of a GbE interface being used alongside two PCI Express ports. “You have traffic coming from the Ethernet port and from the two PCI Express ports. You need to balance the traffic and allow DDR access to the three interfaces,” said Alfiya. “We have arbitration between the units because only one unit can access the DDR at any time.” Other on chip peripherals include a security engine and support for VoIP via a time division multiplexing (TDM) interface.

The security engine can encrypt 2Gbit/s data streams using such algorithms as AES and 3DES. With the TDM interface, the SoC supports up to 32 channels of VoIP. Marvell uses several power saving techniques to limit the MV78460’s power consumption to 10W. The device can power down unused cpus and vary the clock frequency dynamically to adapt power consumption to processing load. In sleep mode, the cpus can be turned off while the L2 cache remains powered. In deep sleep mode, the L2 cache is saved in dram before being powered down.

The I/O ports then wake the cpus when data arrives. The GbE MACs are Energy Efficient Ethernet compliant (see NE, 25 January 2011) and support DDR3L. Because DDR3L operates at 1.35V, instead of 1.5V, this can reduce power consumption by up to 20%. The device can run one operating system in symmetric multiprocessing mode or asymmetrically.

The latter is less common for servers, but features more widely in embedded applications, where the cores can run separate operating systems. “By integrating everything onto one chip, Marvell has designed a single chip quad core server,” said Gwennap. This is different to Intel’s approach, where two Xeon multicore chips can be put side by side – a so called two socket server configuration. “You cannot do that with the Marvell chip,” said Gwennap. “Marvell has boiled the whole server down to a chip; if you want to scale it, you have to add a whole new, separate, server.” The Armada XP is currently implemented on TSMC’s 40nm G cmos process, although the roadmap includes an eight core design at the 28nm node. The Sheeva cores will be clocked at 3GHz or more, while the SoC will support 10Gbit Ethernet and the PCI Express 3.0 specification.

But Marvell isn’t the only company looking to bring ARM cores to the server market and ARM is seeding the process with a quad core reference design for the Cortex-A9 architecture, while the basic design for the Cortex-A15 is also quad core (see fig 2). One contender is Calxeda, in which ARM is an investor. It is using a quad core implementation of the Cortex-A9 but, because it is limited to four cores per die, it will probably need to use multiple chips to match the performance of Xeon processors.

image

But the startup is not providing details on the interconnect or the blocks it plans to integrate. “We are going to see a lot of quad core Cortex-A15 designs coming out in a year or so,” Gwennap concluded.

Intel’s SoC strategy strengthened by 22nm Tri-Gate technology

Asustek may have difficulties achieving 2011 notebook shipment goal See also: Intel: accelerated Atom SoC roadmap down to 22nm in 2 years and a “new netbook experience” for tablet/mobile PC market [April 17, 2011]

Update 5 [Ivy-Bridge related]

Intel Schedules Core i 3000 “Ivy Bridge” Desktop Processors Launch to Q2 2012 [Nov 30, 2011]

Intel Corp. has notified its partners about its decision to introduce of its next-generation code-named Ivy Bridge processors in the second quarter of 2012. Previously the company planned to release the Core i 3000-series central processing units (CPUs) for desktops in March – April timeframe, which left a possibility to unveil the chips in the first quarter.

Intel has also disclosed specifications of its next-gen Ivy Bridge chips for desktops to its partners. The initial family to be released in Q2 2012 will not include Core i3-3200-series chips and will consist of Core i7-3700 and Core i5-3500/3400 families.

Ivy Bridge will generally inherit Sandy Bridge micro-architecture and will sport a rather significant number of improvements. Firstly, it will have certain improvements that will boost its performance in general applications by around 20% compared to Core i “Sandy Bridge” chips (e.g., enhanced AVX acceleration). Secondly, the forthcoming chip will have a new graphics core with DirectX 11 and OpenCL 1.1 support, 30% higher performance compared to the predecessor as well as new video processor and display controllers. Thirdly, Ivy Bridge will feature PCI Express 3.0 x16 interconnection as well as PCIe 2.0 x4 controller. In fourth, the processor will support a number of power management innovations.

Update 4 [Cedar Trail-M related]:

Intel to ship new netbook platform in November [18 Aug, 2011]

Intel recently adjusted the launch schedule of its next-generation
netbook platform, Cedar Trail-M, from September to November because the platform has encountered some graphics driver issues and has not yet passed certification for Windows 7, according to sources from notebook players.

The Cedar Trail-M platform will include two new CPUs, 32nm-based Atom N2800 (1.86GHz) and N2600 (1.6GHz), priced at US$47 and US$42, and will replace the existing Atom N475 and N455. The CPUs will also feature an integrated GPU that supports DirectX 10.1 technology. The platform will also adopt the existing NM10 chipsets for southbridge capability.

Since netbooks are no longer a mainstream product in the IT market, while AMD also has a similar-level solution, Intel’s delay of Cedar Trail-M will not affect notebook players much, the sources added.

In addition to the netbook platform, Intel’s new CPUs, Atom D2700 (US$52) and D2500 (US$42), for nettops will also be delayed to November.

Update 3 [CULV related]:

Intel’s CEO Discusses Q2 2011 Results – Earnings Call Transcript Q&A [July 20, 2011]

Uche Orji – UBS Investment Bank

Let me just ask you about Ultrabooks. Sean was quoted at the Computex as saying that this should be about 40% of the consumer mix by the end of next year. If one were to go back and compare this to CULV from a couple of years ago, what makes you more confident that this will achieve this level of success? Do you enjoy the form factor? I think CULV also had performance issues. So if you can talk about the level of confidence you have with Ultrabooks, and how you see that ramping from now until next year to get to that 40%?

Paul Otellini

Well, as I look at this, I don’t think that the Ultrabook strategy is anywhere near equal to the CULV strategy as you call it. That was really a kind of a point product. It was focused on form factor. We didn’t really put a lot of engineering into it with our customers, and we didn’t look at other features. If you will, it’s kind of a trial run in hindsight is the way I would look at it. The Ultrabook project is much more akin to Centrino. It’s a very holistic approach to moving the entire market to a different kind of form factor, not just in terms of its thinness, but in terms of the feature set. I talked about always on, always connected. So the machine is always aware of the networks around it. I talk about instant on, instant boot capability. We talked about building in integral touch into it, another feature set. So this is as much about the features around the skin, or inside the skin, as the shape of the skin. And as we look at this with our customers, we also see that there’s a great deal of engineering that has to be done. Because one thing we know is that today, these feature sets cost more money. But we don’t think that PC prices are going to go up over time. So what we have to do is work with the ecosystem to cost engineer these features for high-volume price point displacement. And that’s the only way you can achieve sort of a 40% number as Shawn predicted in that timeframe is by doing price point replacements. And then looking forward a year later, into the next generation, silicon, it gets cheaper to do it so we could penetrate more of the market.

Update 2 [MacBook Air related]:
Asustek expects better business performance in 2H11 [Aug 17, 2011]

Asustek Computer expects its performance in the second half of 2011 to be better than that of fellow Taiwan-based companies, according to CFO David Chang.

Asustek is likely to hit record quarterly revenues in the third  quarter and is optimistic about business operation in the fourth mainly due to the launch of second-generation Eee Pad Transformer tablets and ultrabook notebooks, Chang said.

Asustek aims at a 14% market share for notebooks in China, and
became the largest vendor in Eastern Europe’s notebook market in the second quarter. In addition, Asustek is poised to make forays into Latin America, especially Brazil and Mexico.

Asustek expects to ship 14 million notebooks and 4.5-5 million Eee PCs in 2011, Chang indicated. Asustek shipped 11.4 million motherboards in the first half and expects to ship 22.5-23 million for the year.

HP to pioneer launching Ultrabook-concept notebooks, say sources [July 11, 2011] “even ahead of the planned release of the UX21 Ultrabook by Asustek Computer slated for September
Asustek may have difficulties achieving 2011 notebook shipment goal [July 26, 2011] “of 20 million notebooks and netbooks combined … the shipments may only reach 18.5-19 million units
Notebook players to mass produce ultrabooks in September [July 26, 2011]

First-tier notebook players including Hewlett-Packard (HP), Acer, Asustek Computer, Dell and Lenovo are all set to launch ultrabooks in the second half of 2011 with mass production scheduled for September.

However, due to most players still suffering from low yield rates over panel production, Asustek, which already finished developing its ultrabook, is expected to become the fastest to mass produce the ultrabook, according to sources from the upstream supply chain.

For the second half of 2011, Asustek placed orders for 400,000-450,000 ultra-thin notebooks each month to its upstream component suppliers with 100,000 units being ultrabooks.

As for Acer and Dell, due to both players suffering from low panel yield rate at their partners, though the two firms plan to mass produce their ultrabook in September, the production volume and schedule may be delayed.

As for HP, although its ultrabook is rumored to be launched in August and produced by Foxconn Electronics (Hon Hai Precision Industry), the actual release time is estimated to be in the fourth quarter or early 2012.

Update: – Acer Ultrabook pushing for September launch, says paper [Aug 19, 2011]

Acer reportedly is aiming to launch its Ultrabook in September to compete against Asustek’s UX21, which is also set to appear in the month, and has been pushing its development schedule; however, because the Ultrabook has not yet entered mass production, the plan may still be changed, according to a Chinese-language Commercial Times report.

An Acer executive also pointed out that the company has already revised the internal design of its Ultrabook twice and the company will only launch 13-inch models initially, the paper added.

Asus: Super-Thin ‘Ultrabooks’ Can Capture 50% Of Notebook Market [July 29, 2011]

Ultrabooks may have a better market than people thought,” said Asus Chairman Jonney Shih in an interview during a rare trip to New York. Shih, who was Chief Executive of the Taiwan-based electronics giant until 2008, cites internal studies as support. The research indicates consumers are willing to pay “a little higher price” than Asus’ other laptops for ultrabooks, he said.

Shih declined to comment on the UX21′s price. But he was optimistic that ultrabooks would catch on — in fact, even more optimistic than Intel. When the chip giant introduced the ultrabook concept at the Taipei Computex trade show in June, its executives said the new devices could capture 40% of the global notebook market in 18 months. Shih believes that number could reach 50% though he didn’t specify a timeframe for reaching that goal beyond “eventually”.

Shih’s enthusiasm stems, in part, from Asus’ plan to expand its ultrabook selection to include other designs and prices. Future Asus ultrabooks need not be as super-thin as the UX21, Shih explained. Perhaps they will be 18 millimeters thick and come with different — likely, cheaper — processors, said Shih.

Consumers should get more information in a few weeks. Asus is targeting an on-sale date sometime this fall. Though recent reports have pointed to HP as the frontrunner to introduce an ultrabook, Shih said he believed Asus would be first. Asus, he noted, had already designed the UX21 when Intel began approaching manufacturers about making ultrabooks. That head start helped Asus land the distinction of being the first company to show an ultrabook prototype, at Computex.

Asustek rebuts Intel forecast on low cost of Ultrabooks series [July 26, 2011]

Asustek Computer Inc (華碩), the world’s No. 5 PC brand, yesterday said its upcoming UX series Ultrabook platform would fail to carry price tags of less than US$1,000, as claimed by Intel Corp.

“Unless we use Intel Core i3 chips [the Ultrabooks will not be less than US$1,000]. The price tags will have to go beyond US$1,000 if [more advanced] i5 and i7 chips go into the notebooks,” a person familiar with UX development said.

Daiwa Capital Market’s analyst Calvin Huang (黃文堯) said on July 13 that Intel was merely cutting prices for its low-voltage processors to help thin and light notebooks make a comeback.

However, in Huang’s view, Intel’s help might not be enough because to make an Ultrabook, other more advanced and expensive components — such as ultrathin panels, solid-state hard drives, metal casings, high-density interconnect and polymer batteries — are required to make it comparable to the MacBook Air.

Don’t count on ‘ultrabook,’ says Daiwa analyst [July 15, 2011]

“While some believe ultrabooks could revive notebook growth and Asustek [Computer Inc (華碩)], the first to introduce the ultrabook, should benefit, we think the ultrabook is killing notebook contract makers’ premium lines and may dilute their profit margins,” Daiwa Capital Market analyst Calvin Huang (黃文堯) said.

We forecast zero growth for global notebook shipments for 2011 and believe the ultrabook alone may not be enough to revive notebook growth in 2012,” he said in a report dated Wednesday.

These ultrabook notebooks are intended to compete with Apple Inc’s MacBook Air, whose worldwide shipments could easily top 600,000 units per month, the report said.

Daiwa said Intel was lowering the price of its low-voltage processors to make thin and light notebooks mainstream.

“In other words, Intel is cutting prices to stimulate notebook demand,” Huang wrote.

Intel’s subsidy is not enough because to make an ultrabook, other advanced and expensive components, like ultra-thin panels, solid state drives, metal casings and polymer batteries, are required to make it comparable to the MacBook Air.

Huang said these advanced components generally cost 50 to 100 percent more than mainstream components used in notebooks.

Because of this, to match the MacBook Air’s price tag, Taiwanese notebook contract makers may have to compromise and use second-grade components in the ultrabooks, which could compromise performance, he said.

The other deciding factor is that Microsoft Corp’s Windows 8 may or may not add to the overall user experience of ultrabooks, and consumers would only be able to tell when the operating system finally comes on the market late next year, Daiwa said.

Apple Updates MacBook Air With Next Generation Processors, Thunderbolt I/O & Backlit Keyboard [press release, July 20, 2011]

Apple® today updated the MacBook Air® with next generation processors, high-speed Thunderbolt I/O technology, a backlit keyboard and Mac OS® X Lion, the world’s most advanced operating system. With up to twice the performance of the previous generation, flash storage for instant-on responsiveness and a compact design so portable you can take it everywhere,* the MacBook Air starts at $999 (US) and is available for order today and in stores tomorrow.

… The 11-inch model weighs 2.38 pounds and provides up to 5 hours of battery life, while the 13-inch weighs 2.96 pounds and provides up to 7 hours of battery life. … latest Intel Core i5 and Core i7 dual-core processors … Thunderbolt I/O technology provides expansion possibilities never before available to MacBook Air users. Through a single cable, users can connect to high performance peripherals and the new Apple Thunderbolt Display, the ultimate docking station for your Mac® notebook. Thunderbolt can easily be adapted to support legacy connections such as FireWire® and Gigabit Ethernet. … an innovative glass Multi-Touch™ trackpad … supports Lion’s new Multi-Touch gestures such as momentum scrolling, tapping or pinching your fingers to zoom in on a web page or image, and swiping left or right to turn a page or switch between full screen apps. … also features a brilliant, high resolution LED backlit display that is amazingly thin yet has the resolution of a much larger, bulkier screen.

The 1.6 GHz 11-inch MacBook Air is available in two models, one with 2GB of memory and 64GB of flash storage for a suggested retail price of $999 (US), and one with 4GB of memory and 128GB of flash storage for $1,199 (US). The 1.7 GHz 13-inch MacBook Air comes in two configurations, one with 4GB of memory and 128GB of flash storage for a suggested retail price of $1,299 (US), and one with 4GB of memory and 256GB of flash storage for $1,599 (US). Configure-to-order options and accessories include a 1.8 GHz Core i7 processor, additional flash storage, MacBook Air SuperDrive® and a USB Ethernet Adapter.

Additional technical specifications and configure-to-order options and accessories are available online at www.apple.com/macbookair.

Mac OS X Lion Available Today From the Mac App Store [July 20, 2011]

Some of the amazing features in Lion include: new Multi-Touch® gestures; system-wide support for full screen apps; Mission Control, an innovative view of everything running on your Mac; the Mac App Store, the best place to find and explore great software, built right into the OS; Launchpad, a new home for all your apps; and a completely redesigned Mail app.

Additional new features in Lion include:

  • Resume, which conveniently brings your apps back exactly how you left them when you restart your Mac or quit and relaunch an app;
  • Auto Save, which automatically and continuously saves your documents as you work;
  • Versions, which automatically records the history of your document as you create it, and gives you an easy way to browse, revert and even copy and paste from previous versions; and
  • AirDrop, which finds nearby Macs and automatically sets up a peer-to-peer wireless connection to make transferring files quick and easy.

Mac OS X Lion is available as an upgrade to Mac OS X version 10.6.6 Snow Leopard® from the Mac App Store for $29.99 (US). Lion is the easiest OS X upgrade and at around 4GB, it is about the size of an HD movie from the iTunes Store®. Users who do not have broadband access at home, work or school can download Lion at Apple retail stores and later this August, Lion will be made available on a USB thumb drive through the Apple Store® (www.apple.com) for $69 (US). Mac OS X Lion Server requires Lion and is available from the Mac App Store for $49.99 (US).

The web weighs in on iOS-like Mac OS X Lion [July 21, 2011]

iOS-inspired Multi-Touch gestures, full screen apps, Mission Control, Launchpad, autosave and a brand new Mail application are just a few of the most lauded features in the eighth major release of the Mac OS X platform.

Reviews ranged from one-line tweets from early adopters to in-depth, book-length reports covering every facet of the OS.

“Apple’s Lion Brings PCs Into Tablet Era,” said Walter S. Mossberg writing for AllThingsD. His enthusiastic tone was echoed throughout the blogosphere with only minor complaints getting any airtime.

Microbloggers praised Lion’s low price, “One perk about Lion, you buy it once, you can put it on all your machines (as long as you use the same App Store login),” and posted their initial thoughts.

8 Features Mac OS X Lion Borrowed from its Little Brother, iOS [July 25, 2011]

‎Apple is slowly but surely, making the transition from iOS or the mobile world as a whole, over to the Mac. We already know that Apple is selling more iPads than Macs, but what we did not know is that Apple is replicating the iOS experience on its Mac lineup, but that is clearly the case. Much has been said about the “post PC era” and we have seen many new features over the past few months making their way to mobile first and only Web or desktop second.

The following 8 features, or should we call them functionalities, that are built into Lion are clearly taken from the iOS experience and ported over to the Mac:

1: Multitouch Gestures

… In Lion, you can swipe between desktops using three fingers, go Back or Forward in Safari using two, and activate Mission Control using three fingers. … I am now using the Trackpad on my Macbook Air exclusively.

2: Multiple Home Screens

… the new Mission Control system behaves exactly like many mobile devices do in that you can easily swipe between active applications and work in parallel on different projects. …

3: Scrolling Method

… Basically, just like on iOS, in Lion you are dragging the content and not the scroll bar. … Personally, it has completely grown on me and now my PC is what seems foreign to me.

4: The Mail UI

… the UI, which is pretty much identical to the iPad Mail app, which is one of the best email UIs I have ever used. The new Lion Mail resembles the iPad Mail app in so many ways including the simple setup, the side by side user interface, and much more.

5: Jiggling Icons and Folders

I totally missed these features until someone on Twitter pointed them out to me. When you are in your LaunchPad in Lion, a long press on an icon will cause all the icons to jiggle (out of lack of a better word) and you can then move them around or delete them from Launchpad. You don’t need a good imagination to see that this is identical to iOS. Of course, you can also drag one icon on top of another and create a folder, again, exactly like in iOS.

6: Air Drop

Of course transferring files is not something new to computers, but Airdrop enables you to share a file with another Mac in your nearby vicinity. This is of course something we were able to do for years on mobile devices with some old school devices using Infrared and the newer phones using Bluetooth to share files. Yes, computers also have Bluetooth and can share files, but if you have used Airdrop, you must have felt that the experience very much resembled that of a mobile device sharing with another one in its proximity.

7: Full Screen Apps

I have been running Safari in full screen mode for the past few days and I can safely say, I cannot go back to the non-full screen mode. This new option of running Mac apps in full screen and certain options appearing as you hover over a certain location on the screen is yet another feature borrowed from iOS. Just think about the Photos app on your iPhone and how the pictures appear in full screen until you want the navigation options to appear and bring you back to the album or onto the next picture. Not convinced? Check out the Reader option in Safari on iOS5. That is exactly the same as full screen on Lion minus the removal of ads, which is not something included in Lion’s full screen mode.

8: No Wire Download

Maybe this one should be first on the list, but when have we ever seen a computer’s operating system that the user can download from an app store on the current operating system? Just trying to wrap my head around the concept is starting to give me a headache. How can I download the OS as an app within the current OS and then install it over the current OS without an external disk or USB drive? Yet, Apple pulled it off and made the whole upgrade process as seamless as any upgrade I have ever done. The whole experience of the app store and downloading updates over the air is so mobile-like, and just a few days ago, Apple enabled OTA updates for iOS with iOS5 beta 4.

Update 1 (Computex-related):

Intel paying handsomely to attract downstream vendors into launching Ultrabooks [July 4] (emphasis is mine)

Intel has recently started planning a new marketing strategy for its Ultrabook concept and has invested heavily into the related budget and resources hoping to attract first-tier notebook vendors into developing Ultrabooks, according to sources from downstream notebook players.

Due to the failure of Intel’s Consumer Ultra Low Voltage-based (CULV-based) ultra-thin notebooks in 2009, while the notebook market has been severely impacted by tablet PCs, most notebook vendors are taking a conservative attitude toward Intel’s Ultrabook concept and Intel is hoping its heavy investment will be able to attract these vendors to launch Ultrabook products, the sources noted.

Intel announced its Ultrabook concept in June with a goal of having 40% of the global consumers notebooks using its Ultrabook concept at the end of 2012. Asustek is already set to launch its first Ultrabook concept-based notebook, UX21, in September.

Although Intel is providing a significant budget to support its partners launching Ultrabooks, the Ultrabook CPUs’ rather high prices are currently still affecting downstream vendors’ willingness to adopt as vendors are still concerned whether the Ultrabook product’s prices can reach as low as US$1,000 as claimed by Intel. Although the vendors have already started testing Ultrabooks, most of them are still conservative about opening projects for production.

Currently, most of the vendors are monitoring Asustek’s performance with its UX21 and will cut into the market when the timing is appropriate.

For the Ultrabook product line, Intel has recently launched four dual-core CPUs and is set to launch a single-core Celeron 787 CPU in September and Celeron 857 in the fourth quarter to replace Celeron 847, the sources added.

The “Ultrabook™”
(part of Intel’s Maloney Talks Mobile Growth, Industry Opportunities at Computex [May 30, 2011], emphasis is mine)

Intel’s vision is to enable a new user experience by accelerating a new class of mobile computers. These computers will marry the performance and capabilities of today’s laptops with tablet-like features and deliver a highly responsive and secure experience, in a thin, light and elegant design. The Ultrabook™ will be shaped by Moore’s Law and silicon technology in the same way they have shaped the traditional PC for the past 40 years.


[Sandy Bridge / Ivy Bridge relevance is only from 00:48 on.]

Maloney described three key phases in the company’s strategy to accelerate this vision, which begins to unfold today with the company’s latest 2nd Generation Intel® Core™ processors. This family of products will enable thin, light and beautiful designs that are less than 20mm (0.8 inch) thick, and mainstream price points under US$1,000. Systems based on these chips will be available for the 2011 winter holiday shopping season and include the UX21, ASUS* Ultrabook™. ASUS Chairman Jonney Shih joined Maloney on stage to showcase the company’s new ultra-thin laptop based on the latest 2nd Generation Intel Core processor.

“At ASUS, we are very much aligned with Intel’s vision of Ultrabook™,” said Shih. “Our customers are demanding an uncompromised computing experience in a lightweight, highly portable design that responds to their needs quickly. Transforming the PC into an ultra thin, ultra responsive device will change the way people interact with their PC.”

Building on the latest 2nd Generation Intel Core technology, Maloney outlined the next generation Intel processor family codenamed “Ivy Bridge,” which is scheduled for availability in systems in the first half of 2012. Laptops based on “Ivy Bridge” will bring improved power efficiency, smart visual performance, increased responsiveness and enhanced security. “Ivy Bridge” is the first high-volume chip based on Intel’s 22 nanometer (nm) manufacturing technology that uses a revolutionary 3-D transistor design called Tri-Gate announced in May. Maloney also highlighted complementary USB 3.0 and Thunderbolt™ technologies which are part of Intel’s ongoing work to drive the PC platform forward.

Following “Ivy Bridge,” planned 2013 products codenamed “Haswell” are the third step toward achieving the Ultrabook™ and reinventing the capabilities of the laptop in ultra thin and light, responsive and more secure designs. With “Haswell,” Intel will change the mainstream laptop thermal design point by reducing the microprocessor power to half of today’s design point.

End of the updates

Intel Reinvents Transistors Using New 3-D Structure [May 4, 2011] (emphasis in red is mine)

For the first time since the invention of silicon transistors over 50 years ago, transistors using a three-dimensional structure will be put into high-volume manufacturing. Intel will introduce a revolutionary 3-D transistor design called Tri-Gate, first disclosed by Intel in 2002, into high-volume manufacturing at the 22-nanometer (nm) node in an Intel chip codenamed “Ivy Bridge.” A nanometer is one-billionth of a meter.

The 22nm 3-D Tri-Gate transistors provide up to 37 percent performance increase at low voltage versus Intel’s 32nm planar transistors. This incredible gain means that they are ideal for use in small handheld devices, which operate using less energy to “switch” back and forth. Alternatively, the new transistors consume less than half the power when at the same performance as 2-D planar transistors on 32nm chips.

Just as skyscrapers let urban planners optimize available space by building upward, Intel’s 3-D Tri-Gate transistor structure provides a way to manage density. Since these fins are vertical in nature, transistors can be packed closer together, a critical component to the technological and economic benefits of Moore’s Law. For future generations, designers also have the ability to continue growing the height of the fins to get even more performance and energy-efficiency gains.

“For years we have seen limits to how small transistors can get,” said Moore. “This change in the basic structure is a truly revolutionary approach, and one that should allow Moore’s Law, and the historic pace of innovation, to continue.”

World’s First Demonstration of 22nm 3-D Tri-Gate Transistors

The 3-D Tri-Gate transistor will be implemented in the company’s upcoming manufacturing process, called the 22nm node, in reference to the size of individual transistor features. More than 6 million 22nm Tri-Gate transistors could fit in the period at the end of this sentence.

Today, Intel demonstrated the world’s first 22nm microprocessor, codenamed “Ivy Bridge,” working in a laptop, server and desktop computer. Ivy Bridge-based Intel® Core™ family processors will be the first high-volume chips to use 3-D Tri-Gate transistors. Ivy Bridge is slated for high-volume production readiness by the end of this year.

This silicon technology breakthrough will also aid in the delivery of more highly integrated Intel® Atom™ processor-based products that scale the performance, functionality and software compatibility of Intel® architecture while meeting the overall power, cost and size requirements for a range of market segment needs.

Newsroom: Intel 22nm 3-D Tri-Gate Transistor Technology, Version 29 [May 2-5, 2011]

Fact Sheets & Backgrounders

Event Replay

Photography

Related Information on Intel.com

Video Animation: Mark Bohr Gets Small: 22nm Explained [May 4, 2011]

First Demonstrations of Intel’s 22nm 3-D Tri-Gate Transistors [May 3, 2011]

This video was shot inside the Intel headquarters demo labs during preparation for the first public demonstration of a laptop, desktop and server running microprocessors built with Intel’s reinvented transistors. These new, smaller 22-nanometer transistors have been built with a novel 3-D design that significantly increases each transitor’s current flow. The better the flow, the better the performance.

FinFETs Extend Intel’s Technology Lead [Tom R. Halfhill of the Linley Gwennap Group, May 6, 2011] (emphasis in red is mine)

Cadillac introduced tailfins to evoke high-tech style in the 1950s, but Intel’s new finned transistors are far from cosmetic. Purely functional, highly efficient, yet equally brash, these fin-shaped field-effect transistors (finFETs) are sure to be copied as widely as Cadillac’s useless appendages—and they will play a similar role in defining an era.

Intel calls finFETs “tri-gate” transistors, touting them as the first true three-dimensional devices built on planar integrated circuits. A tri-gate transistor folds a conventional planar gate into an inverted U-shaped fin that protrudes above the silicon substrate. By coating all three sides of the fin with metal, Intel builds a 3-D gate structure that has much more volume than a planar gate while still squeezing into the same horizontal space.

Tri-gate transistors can handle greater drive currents, allowing higher clock frequencies. They can switch states at a lower threshold voltage without sacrificing as much switching speed, which reduces dynamic power consumption. In addition, the thicker gate leaks less current, reducing static power. As always, chip designers can trade off these factors in various ways to achieve the best balance of performance and power consumption for the target application.

Intel will use the new transistors for both logic circuits and memory arrays in all its microprocessors built in the next-generation 22nm process, which debuts later this year. The company has demonstrated PC and server processors built with the new technology and is already shipping samples to OEMs for system design. Volume production is scheduled to begin in the fourth quarter and ramp quickly next year. And Intel isn’t hedging its bets: contrary to rumors, the new chips will use tri-gate transistors universally, abandoning planar transistors forever.

FinFETs reinforce Intel’s significant lead in chip fabrication. In addition to using new transistors, Intel is moving to the 22nm mode about two years ahead of the rest of the industry, which is only now beginning the transition to 32/28nm technology. The independent foundries serving virtually all of Intel’s competitors have no plans to use finFETs before the 14nm node—and adoption may be tentative even then. It appears that Intel has gained a head start of at least four years, much as the company achieved in 2007 by introducing high-k metal-gate (HKMG) transistors at the 45nm node. FinFETs could boost Intel’s position in the mobile and consumer markets, where it needs an edge to overcome entrenched competitors. —Tom

Multigate device – Varieties – FinFETS [wikipedia excerpt on May 10, 2011]

The term FinFET was coined by University of California, Berkeley researchers (Profs. Chenming Hu, Tsu-Jae King-Liu and Jeffrey Bokor) to describe a nonplanar, double-gate transistor built on an SOI substrate,[6] based on the earlier DELTA (single-gate) transistor design.[7]The distinguishing characteristic of the FinFET is that the conducting channel is wrapped by a thin silicon “fin”, which forms the gate of the device. The thickness of the fin (measured in the direction from source to drain) determines the effective channel length of the device.

In current usage the term FinFET has a less precise definition. Among microprocessor manufacturers, AMD, IBM, and Motorola describe their double-gate development efforts as FinFET development whereas Intel avoids using the term to describe their closely related tri-gate [1]architecture. In the technical literature, FinFET is used somewhat generically to describe any fin-based, multigate transistor architecture regardless of number of gates.

A 25-nm transistor operating on just 0.7 Volt was demonstrated in December 2002 by Taiwan Semiconductor Manufacturing Company. The “Omega FinFET” design, named after the similarity between the Greek letter “Omega” and the shape in which the gate wraps around the source/drain structure, has a gate delay of just 0.39 picosecond (ps) for the N-type transistor and 0.88 ps for the P-type.

Multigate device – Varieties – Tri-gate transistors (Intel) [wikipedia excerpt on May 10, 2011]

Tri-gate or 3-D are terms used by Intel Corporation to describe their nonplanar transistor architecture planned for use in future microprocessors. These transistors employ a single gate stacked on top of two vertical gates allowing for essentially three times the surface area for electrons to travel. Intel reports that their tri-gate transistors reduce leakage and consume far less power than current transistors. This allows up to 37% higher speed, and a power consumption at under 50% of the previous type of transistors used by Intel.[8]

Intel currently plans to release a new line of CPUs, termed Ivy Bridge, which feature tri-gate transistors. [9] Intel has been working on its tri-gate architecture since 2002, but it took until 2011 to work out mass production issues. The new style of transistor was described on May 5, 2011, in San Francisco.[10] Intel factories are expected to make upgrades over 2011 and 2012 to be able to manufacture the Ivy Bridge CPUs.[11] As well as being used in Intel’s Ivy Bridge chips for desktop PCs the new transistors will also be used in Intel’s Atom chips for low powered devices.[10]

In the technical literature, the term tri-gate is sometimes used generically to denote any multigate FET with three effective gates or channels.

Intel(‘s) Take(s) On Tablets & Other Mobility Devices [May 6, 2011]

Part of being an Intel Advisor is getting insights and information directly from inside Intel. This month’s conference call with Intel and other Intel Advisors was no different and we learned about a hot topic in the Tech industry – the tablet race. Leading our discussion was Mark Miller, director of outbound marketing from Intel’s Netbook and Tablet team. Not only did we learn Mark’s take on tablets and other mobility devices, but also he explained Intel’s vision to take ON tablets and these devices and move the space forward.

image

Miller breaks down the “Mobility” category into 3 segments: Netbooks, Tablets and a new third category which they are simply calling a “Hybrid Device.”

Exploring the Categories

What’s below is obviously not an exhaustive discussion of these categories, as the specs, features, ideas and concepts are still being decided on and written. But the Advisor briefing definitely got the gears spinning.

Netbooks

… there still is demand, especially for an even lower price point…the magic number of $199 for a netbook targeted towards emerging markets, schools & education or even as a second PC. But users might not be waiting simply for a lower price, they want better performance from the CPU and more powerful graphics capabilities. To accomplish this, Intel will be introducing a new Atom processor, code named “Cedar Trail” which is expected to be released in the second half of 2011. Core to this updated netbook infrastructure will be the addition of more PC-like features like Wi-Di or PC sync. I saw Wi-Di (“Wireless Display”) in action at a couple of shows; it’s an impressive way to share multimedia content from a computer to a big screen TV. Simply start playing a movie, for example, on a Wi-Di enabled computer and then with an appropriately configured TV, your media starts streaming. It’s very similar to Apple’s AirPlay.

Tablets

… In April of this year, Intel introduced a new Atom processor for tablets, code name “Oak Trail” which should start hitting tablets in May. Most of Intel’s efforts has been around Windows 7-based tablets but there are definitely efforts underway to handle other mobile OSes like Android.

… Miller acknowledges that Intel is a bit behind the game in the tablet race. However, they do seem to also have a differentiating vision, in my opinion. With Apple, it’s pretty much one size fits all, meaning the experience is focused more around the device and less around a particular user’s use case. I think that this is fine for Apple, as this is where they want to be, providing an elegant and easy to use, but controlled environment. Intel believes, however, that tablets should be as individual as you are, meaning that you should be able to customize and tailor a tablet to better fit a given user. With the iPad, IT is the center as opposed to the person using it being the center. This concept actually is even more appropriate for the 3rd category below.

Intel will be working to make the processor technology within tablets faster, while designing their chipsets to use less power and be smaller, thus allowing for thinner tablets. Some benchmarks outlined by Miller was getting below 8mm in thickness (e.g., “thinness”) and having 10 hours active battery life with 30 days of standby – pretty much a good standard. If they can pull this off running a mobility version of Windows 7, that would be impressive.

“Hybrid Device”

This next category is really the intriguing one and represents a merging of the best features and technology available to netbooks and tablets. There are already devices like this in the market, in fact, Microsoft had supported this type of computer many years before the iPad even came out. We have seen swivel-display computer from Fujitsu, for example, that had a screen that pivots to cover a keyboard. This “hybrid” style is exactly something that Intel believes is worth investing in. Think about coupling a touch screen display (e.g., a tablet) with a keyboard (e.g., a clamshell or netbook) and you have this hybrid device. The Dell Inspiron Duois a current example of this type of form-factor.

However, Miller believes that there is much more to be done with this form-factor and the underlying OS and software driving it. Without offering many details, he did say they will be ultra thin with low power consumption, which seems to be a common thread on all new consumer electronics devices coming out these days. But what was presented was the idea of this device really meeting multiple yet individual needs. For example, you could have it so that if when you are using the keyboard and are at work, you would use Windows 7 as the OS, but when you went home and move more to a tablet-appropriate environment, the OS might shift to Android. Also, as kids are growing up using these devices much the same way we used pen and paper, there could be appropriate “user environments” within this hybrid device to satisfy their needs.

So What’s Next?

12 to 18 months ago, tablets didn’t exist (although there are plenty of people who will disagree with this statement). So, to qualify that a bit more, I would say the modern, consumer-friendly tablet didn’t exist. In another 12-18 months, the tablets (like the iPad) that we know and love currently will be long gone and replaced with devices that are more powerful, thinner, multi-function with batteries that last 20 hours of active use, and capable of powering full entertainment systems and replace computers. Well, I could be dreaming a bit.

Oh, and one more thing…on Wednesday, Intel introduced a new design to their transistor chip. Called “Tri-Gate,” this revolutionary 3-D designclearly shows Intel’s innovation at work. While the concept of this design has been discussed for several years, Intel is the first manufacturer to move this design into production. It provides not only performance improvements, but also allows for power reduction within 22nm-based devices that include the categories mentioned above.

image

Above you can see an illustration of the 32nm transistor (on the left) compared to the new 22nm (on the right). The yellow dots represent how the current flows. The 32nm illustrates current flowing along a plane while the 22nm shows it flowing on 3 sides of a vertical fin.

But back to the tablet race, Apple seems to have the lead…for now. But as companies regroup and look to improve, I’m expecting some pretty innovative products coming out. I think with Intel working to drive the innovation from within, providing more powerful and smaller chipsets to power these emerging tablets, we are just beginning to see a really exciting market develop and emerge.

Intel: accelerated Atom SoC roadmap down to 22nm in 2 years and a “new netbook experience” for tablet/mobile PC market

Update: Intel will be able to maintain the original 22nm timetable with delivery of Haswell and next-gen Atom products on 22nm in Q2 2013 (see: Intel Haswell: “Mobile computing is not limited to tiny, low-performing devices” [Nov 15, 2012]). This progress, however, will not be enough against the 28nm ARM SoCs of that time, so it is proceding further as fast as only could to 14nm. Expect products from this in H2 CY2014: Intel progressing in development of 14nm technology, says CTO [DIGITIMES, Dec 5, 2012]

Intel CTO Justin Rattner on December 4 said that Intel’s development of 14nm technology is on schedule with volume production to kick off in one to two years and development of 18-inch wafers is under way through cooperation with partners.

Rattner also noted that Intel’s aggressiveness over technology advancement will allow Moore’s Law to extend for another 10 years.

At the end of 2013, Intel will enter the generation of 14nm CPUs (P1272 [process: a shrink from the previous P1270 22-nm process as well as a reduction in power consumption]) and SoCs (1273), while expanding its investments at its D1X Fab in Oregon, and Fab 42 in Arizona, the US and Fab 24 in Ireland, and will gradually enter 10nm, 7nm and 5nm process generations starting 2015.

As for Intel’s competitors, Samsung is already set to enter 20nm in 2013 and is already working on its 14nm node, while Taiwan Semiconductor Manufacturing Company’s (TSMC) 20nm process will enter small volume production in the second half of 2013 with the first 3D-based FPGA chips to also start.
Globalfoundries has previously announced its 14nm FinFET process will start pilot production at the end of 2013 and enter mass production in 2014.
As for 18-inch wafers, Intel has invested in Holland-based ASML for its EUV technology, and related technologies are expected to start entering production in 2017.

See also: Intel’s industry position and prospects for years ahead [Dec 9, 2010]
Follow-up:
Intel’s SoC strategy strengthened by 22nm Tri-Gate technology [May 10, 2011]
Netbook prices starting $50 less at $200 via Intel MeeGo strategy [July 29, 2011]

Intel adjusts netbook strategy [April 14, 2011]

Intel has recently adjusted its netbook strategy and is set to cooperate with its partners including Asustek Computer and Acer to launch netbook devices priced below US$199 in regions such as the Middle-East, Latin America and Eastern Europe, according to sources from notebook players.

As for markets such as Europe, the US and China, Intel will continue to push netbook models using the new Cedar Trail-M platform and will add new technologies such as Wireless Display (WiDi) and wireless audio into these devices, for a price of US$299-599 depending on specifications and operating system.

Netbook models priced at US$199 will adopt Intel’s own MeeGo operating system and Intel is currently working on developing content and applications that suit each region and has already demonstrated engineering samples to its partners. Asustek, Acer and several China-based second-tier white-box netbook players have already prepared to launch machines with Intel’s US$199 platform in the second half of 2011.

Updates from Computex 2011:
Chip Shot: Intel Unveils Innovative New Concept Design, “Keeley Lake” [May 31, 2011]

At Computex, Intel unveiled “Keeley Lake ” an innovative, newly-developed convertible design based on the upcoming Intel® Atom™ netbook platform, codenamed “Cedar Trail.” Whether creating with a keyboard or browsing with touch, “Keeley Lake” will offer customers the best of both worlds with stylish designs, sleek form factors, new capacitive multi-touch displays and thinness from 17mm-20mm. Designs like “Keeley Lake” based on “Cedar Trail” will provide the most flexible platform of choice by enabling operating systems including Chrome OS, MeeGo and Windows.  Intel has enabled ODMs with the “Keeley Lake” design and already started to see the demand.

Chip Shot: Medfield – The Next Generation of Tablets from Intel [May 31, 2011]

At Computex, Intel reiterated its Atom System on a Chip (SoC) roadmap, highlighting “Medfield,” which will be built using Intel’s 32nm high-k metal gate process technology. The purpose-built solution will provide lower power, a smaller footprint and more integration of features and performance for the tablet market. “Medfield” will enable sub-9mm tablets that weigh less than 1.5 pounds and provide all day battery life. The processors will be in production later this year for tablet designs in market the first half of 2012 and support a range of operating systems including Google Android (“Honeycomb”), Windows and MeeGo.

Chip Shot: MeeGo Netbooks Based on Intel Atom Arrive at Computex [May 31, 2011]

The ecosystem around MeeGo-based netbooks expands with the introduction of devices including the Acer Aspire One Happy 2, Asus Eee PC X101, Samsung N100 and Lenovo IdeaPad S100 at Computex. These systems are based on the new, 1.33 GHz single-core Intel® Atom™ processor N435. These netbooks will provide new levels of affordability for market expansion. Acer and Asus netbooks will come pre-loaded with the Intel AppUpSM center in select countries. Also at Computex, Acer demonstrated a MeeGo-based tablet on stage at the Intel netbook, tablet and software focused satellite event.

A Brief Interview with Intel’s Sean Maloney [May 27, 2011]

Sean (11).JPGEditor’s Note: A few days before traveling to Taipei, Taiwan, where he is slated to deliver a keynote address at Computex 2011, Intel Free Press had a chance to sit down for a brief conversation with Intel Executive Vice President Sean Maloney, the newly named chairman of Intel China. Maloney returned to work in January after suffering a stroke last year.

IFP: How do you challenge the critics who are saying that some of this is too little, too late — that the ARM ecosystem is too firmly established now, particularly in tablets and phones?

Maloney: The ARM ecosystem is really well established, but I don’t think that anyone is in the position that Intel is in to get all the way from the bottom to the top. In process technology, we are still 2 years or more in front. I think it will be a good 4 or 5 years.

IFP: Intel has talked a lot about accelerating the SoC (System-on-a-Chip) roadmap, which according to some pundits can’t happen fast enough. Why is it taking so long for the company to accelerate Atom SoCs and is there anything you can do to make it go faster?

Maloney: Well, unfortunately 2 years ago we thought that the market was not moving as fast as it has moved. Now we’ve announced that we will be doing one new process generation every year for the next 3 or 4 years. That’s pretty fast. It’s a big acceleration from where we are now.

IFP: Intel CEO and President Paul Otellini mentioned during the recent investors meeting that China is poised to be No. 1 in the PC market next year. What does that mean for Intel?

Maloney: It means everything, right? The U.S. was the first and foremost market for 43 years at Intel. Now it’s going to be China, No. 1. That’s amazing. Really, I am excited about China. It’s the first market for Intel next year. There are so many things we can do in China, and we’re going to do them.

Accelerating the Intel® Atom™ Processor Roadmap (part of Intel’s Maloney Talks Mobile Growth, Industry Opportunities at Computex [May 30, 2011], emphasis is mine)

Maloney highlighted key milestones and additional details on upcoming generations of Intel Atom processor-based platforms for tablets, netbooks and smartphones. The Atom processor will outpace Moore’s Law, accelerating from 32nm through 22nm to 14nm within 3 successive years. Having a cadence of a new-process-generation every year will result in significant reduction in transistor leakage, lower active power and an increase of transistor density to enable more powerful smartphones, tablets, and netbooks with more features and longer battery life.

Reaching its 100 million-unit milestone this month, Intel is preparing its next-generation netbook platform, codenamed “Cedar Trail.” “Cedar Trail” is the first netbook platform based on Intel’s 32nm technology, and will enable ultra-thin, fanless designs with new capabilities such as Intel® Rapid Start technology which provides fast resume, Intel® Smart Connect Technology which enables an always updated experience even during standby, Intel® Wireless Display and PC Synch, which let users wirelessly update and synchronize documents, content and media across multiple devices. In addition, the new platform is expected to enable more than 10 hours of battery life and weeks of standby. “Cedar Trail” will support leading operating systems, such as Microsoft Windows*, Google Chrome* and MeeGo*.

In addition, Maloney showcased more than 10 tablets, running on three different operating systems, that are available today based on the Intel Atom processor Z670. The platform already has more than 35 design wins since its launch in April, with several convertibles, sliders and other innovative designs on shelves now and more coming through the rest of the year.


[Medfield relevance is only upto 00:48.
Please note at 00:27: “… initially on Android, later on MeeGo …”]

Maloney also discussed “Medfield,” Intel’s first purpose-built 32nm platform for smartphones and tablets.  “Medfield” has been optimized for both low power and high performance and will deliver long use-time, rich media and gaming, and advanced imaging capabilities. To illustrate this point in tablets, Intel showcased a “Medfield” design running Google Android* 3.0 (“Honeycomb”) for the first time. In production later this year, the platform will enable sub-9mm designs that weigh less than 1.5 pounds for tablet designs in market the first half of 2012. It will support a range of operating systems including Android and MeeGo.

According to Maloney, “The work Intel is doing with the Intel® Atom™ processor roadmap, coupled with the significant changes we are making to our Intel® Core™ processor roadmaps, will continue to enhance Intel’s ability to deliver complete hardware solutions with a choice of software platforms across a full spectrum of computing — from back-end servers that power the cloud to the billions of devices that access the cloud.”

Computing Becomes More Personal at Computex [June 7, 2011] (emphasis is mine)

Reflecting on Computex last week, I’m once again in awe of all the time and energy across the company (and around the world!) goes into pulling off this event. For Intel, it was a great show. We highlighted several technologies and innovations that will push the envelope when it comes to enhancing what we’re calling “companion computing.” As Intel Executive Vice President Sean Maloney pointed out in his keynote, “computing is taking many forms” and Intel innovation is the “catalyst” for exciting new technologies that will empower our mobile lifestyles.

I hope you heard our big news around the introduction of a brand new category of ultra-slim laptops called “Ultrabooks,” targeted to penetrate 40 percent of the market by end of 2012.

Along that same vein, the Netbook and Tablet Group at Intel, made some exciting disclosures to help meet the varied expectations of the companion device market. One of those was “Keeley Lake,” a brand new, convertible design based on the upcoming Atom netbook platform, “Cedar Trail.”  With its swivel and fold monitor design, “Keeley Lake” packs in the power and performance of a netbook and the functionality of a tablet.

It will have more than 10 hours of battery life and will include Rapid Start, Smart Connect and Intel Wireless Display for displaying content on TVs and PC Synch.

Intel also highlighted “Medfield,” its first purpose-built 32nm platform for smartphones and tablets. Optimized for low power, high performance and longer use-time, these processors will be in production later this year and you can see “Medfield”-based tablets out in the market in the first half of 2012.

Both “Keeley Lake” and “Medfield” will support a range of operating systems including Windows, Google Android and MeeGo.

Speaking of MeeGo, the ecosystem around MeeGo-based netbooks is expanding. At Computex devices such as the Acer Aspire One Happy series, the Asus Eee PC X101, the Lenovo IdeaPad S100 and Samsung N100 were introduced. These systems are based on the new 1.33 GHz single-core Intel® Atom™ processor N435 and will provide new levels of affordability for market expansion.

At the show, we demonstrated the traction our formerly codenamed “Oak Trail” platform, now the Intel Atom processor Z670, has received since it began shipping in April. “Oak Trail” has garnered huge market acceptance and already has more than 35 design wins, 10 of which were showcased on the Computex stage. In addition, several convertibles and sliders are on shelves now, with more coming through the end of the year.

Mobile computing is indeed taking many new forms and I’m looking forward to the future to see how these shapes evolve. Computex 2011 has definitely set the tone for the exciting times ahead!

End of updates from Computex 2011

Intel pushes Android plans [April 14, 2011]

Intel, in the third quarter of 2011, is set to announce a new plan for tablet PCs – PRC Plus, pushing an Intel/Android 3.0 platform, after nearly half of year of negotiations with Google, according to sources from notebook players. However, Intel declined to comment on market rumors.

The sources pointed out that the PRC Plus plan is to use Intel processor’s advantage of stronger performance than ARM-based processors and improve on the operating system’s user interface and user experience. The new plan is also expected to save costs from Windows licensing fees for downstream vendors.

In addition to pushing an Intel/Android 3.0 platform, Intel is also set to adopt a similar strategy as in the PC industry and pay a subsidy of US$10 for each Intel CPU-based tablet PC to attract first-tier notebook vendors.

Asia-based Acer, Lenovo and Asustek Computer have all agreed to start up new netbook projects in the second half of 2011, while Cisco is also set to launch devices adopting Oak Trail/Android 3.0 targeting the enterprise market, the sources added.

As Android for tablets falters, opportunity for Intel [CNET, April 15, 2011]

Intel has been criticized here and in other venues for being late to the tabletparty. But Android’s slow start in tablets may mean latecomers aren’t necessarily losers.

Intel was demoing an Atom-based tablet at its developer conference in Beijing this week

Intel was demoing an Atom-based tablet at its developer conference in Beijing this week (Credit: Intel)

A stroke of serendipity has arrived in the form of a tepid consumer reception so far for tablets beyond Apple’s iPad. Sales of the Motorola Xoom are, to date, anemic, while the sell-through to consumers of Samsung’s Android tablet has also been underwhelming.

And Digitimes reported todaythat tablet suppliers Asus and HTC are delaying Android tablet rollouts.

Meanwhile, RIM’s BlackBerry PlayBook–which is more like an appendage to a BlackBerry phonethan a standalone tablet–is not targeted at the high-volume consumer space.

So, with tablets based on chips from companies like Nvidia (Xoom, Samsung Galaxy Tab) and Texas Instruments (PlayBook) not likely flying off the shelf, are Intel’s chances any better now?

“The door to this market is open. The longer it takes for these other products to get rolling, the more opportunity there is for Intel,” said Richard Shim, an analyst at DisplaySearch.

But:
No hope: Intel’s new Oak Trail chip headed for tablet limbo [Ars Technica, April 13, 2011]

Everything about the Android tablet experience, from the hardware and software to the price point, is inferior to the iPad. So what hope is there for Intel’s Oak Trail to swoop in and change the game?

There is no hope, but that’s not really the point of Oak Trail. Intel’s latest stab at an MID/tablet-oriented hardware platform is just one more step on its long march to the smartphone, a destination it’s unlikely to reach until it gets a future Oak Trail successor down to 22nm. Until then, Intel will keep producing these “tablet” chips, which will find their way into designs from a number of OEMs, some of which are neat in a gimmicky sort of way, and none of which are likely to sell well.

If netbooks were still selling like hotcakes, this could significantly improve Oak Trail’s prospects, because it will be a solid netbook part. But they aren’t, so we’re left to watch Intel mark time in this fashion for another year or so until it finally catches up to the ARM ecosystem.

Intel does fondleslabs with Atom ‘Oak Trail’ [The Register, April 11, 2011]

Monday’s announcement of the Oak Trail rollout, while welcome news to Intel fans, may not be “longer-term” enough to make significant inroads into a market now dominated by ARM variants. Although it’s too soon to tell, those same fans may have more reason to hope that the soon-to-follow Cedar Trail might have the chops to move the Intel architecture into a critical mass of “Companion Computing” devices.

Doug Davis: Devices and the Future of Personal Computing [Keynote webcast, April 12, 2011] (some parts transcribed here with their corresponding slides)

Intel Doug Davis about the Moore's law at IDF Beijing 2011 -- 12-April-2011Intel Doug Davis Faster - in 3 years fm 45nm to 22nm at IDF Beijing 2011 -- 12-April-2011.jpg
[8:20] According to the Moore’s law every two year we delivered a new generation of process technology. … Our 32 nm technology – for example – deliveres 25% increase in performance at the same power level, at the same leakage, OR we can deliver 10X lower leakage at the same performance level [8:41]

[8:59] Now Intel is accelerating the Atom SoC road map. Over the next several years we’re going to move faster than Moore’s law. … Our 45 nm volume products are shipping today. 32 nm will ship in volume over the next 6 months, and 22 nm will be in volume within 24 months. [9:25]

Intel Doug Davis on Atom proc evolution at IDF Beijing 2011 -- 12-April-2011
[9:38] The 1st generation of Atom processor was built on 45 nm technology. That product line brought about 10X thermal power reduction vs. our lowest power Celeron products. The 2nd generation Atom added a new set of power management capabilities and features. The focus there was to drive idle power at platform level down by 50X and we beat our own goals.

Our 3d generation Atom will continue to bring new architectural innovations to improve performance and power. With 10X lower leakage on the 32 nm SoC process enables longer standby and idle power improvements as well.

Our 4th generation of Atom will again continue to drive new architectural innovations , and performance and power. It will be built on 22 nm process technology. The most important benefit of 22 nm process technology is to continue to provide very low leakage, and [it] also will provide about 2X reduction in active power along with about 2X improvement in transistor density as well. All this compared to our 32 nm process technology. [10:55]

Intel Doug Davis on Features for the New Netbook Experience at IDF Beijing 2011 -- 12-April-2011
[14:00] … [New] features [on the upcoming 32 nm Cedar Trail] we are bringing to these new netbook experiences:

We will have things like Intel Wireless Display that allows to project what is on the screen of your netbook onto a larger system like the television in your home.

Intel Wireless Music which allows you to take a playlist on your netbook and to be able to stream it to almost any power speakers in your home. You can listen to that music while you are looking at those pictures from your last vacation.

Always Updated is the technology that keeps tweets and RSS feeds, and e-mail, all of those types of things updated on your netbook even when it is in standby. So when you open up the system and you want to do something all of your information is up to date.

The Intel App Up allows you to have applications from thousands of different developers.

PC Sync is a great technology that allows you to seamlessly connect all the devices in your home so that they stay in sync automatically.

And my personal favorite is Fast Flash Standby. This allows you to be able to come up and use the device instantly. It is really [the case that] the device is ready for a new meeting. [15:24]

Netbook Nation: IDF Beijing 2011 Round Up [April 15, 2011] (emphasis is mine)

If you want the inside scoop on what went on at IDF Beijing 2011 you’ve come to the right place. Netbook News was the only English speaking blog at the Chinese conference. So what went on? We’ll we’ve got a video showing you our favorite products and announcements below, but if you perfer reading, I’ll spell it out for you. Cedartrail Intel’s latest Netbook platform was launched. No details on performance gains, but three new features were added: Intel Wireless Streaming [rather: Wireless Display], Intel [Wireless] Music and Wireless file sharing [rather: PC Sync]. During the Day 1 Keynote we were able to grab a video of the on stage demo in case you’re curious. [the demo of those 3 features is from [4:44] to [6:08] of the below video]

Oak Trail was officially announced with tablets hitting the streets in May. So far all the tablets are 10.1 inches and about 10mm thick. Nothing to get too excited about as we have yet to see what kind of battery life we might be getting. Some tablet manufactures like Evolve Three came out with a unique design integrating a kick stand and keyboard into the hard cover. We’ve included a hands on in the Netbook Nation video if you’re keen to grab a look. [see between 2:40 and 3:45]

Evolve III Convertible with a stand at IDF Beijing 2011 -- 13-April-2011Evolve III Convertible with keyboard integrated into the hard cover at IDF Beijing 2011 -- 13-April-2011

Evolve III Convertible with keyboard integrated into the hard cover #2 at IDF Beijing 2011 -- 13-April-2011Evolve III Convertible with keyboard integrated into the hard cover #3 at IDF Beijing 2011 -- 13-April-2011

Taking a look at gaming hardware there was only one notable announcement and that was by Razer who is bringing the Switchblade, the most innovative Oak Trail device to date to the Chinese market first. And Tencent, China’s largest ISV is going to be providing the installed gaming user base! Razer and Tencent are bring four immensely popular online games with roughly 600 million monthly gamers to mobile. Razer is going to focus optimization of the Switchblade on League of Legends as well as Dungeon & Fighter, Crossfire and QQ Speed. Tencent sees 130 million active monthly users between the four games and views Oak Trail as the mobile computing platform able to deliver a powerful gaming experience. Though the Switchblade is currently running Windows 7, both Tencent and Razer concluded that they were interesting in the possibility of delivering MeeGo on the device.

So check out the video below that also shows off a special PRC skin of the MeeGo tablet UI! [see between 6:16 and 8:24]

http://www.netbooknews.com

Intel Developer Forum: Executives Talk Evolution of Computing with Devices that Touch People’s Daily Lives [April 11, 2011]

Doug Davis: Reinventing Personal Computing for Devices
During his keynote presentation, Davis discussed how companion computing devices, including netbooks, tablets and other devices are tranforming the world we live in through personal, mobile and connected experiences. He described how Intel, over the next 3 years, is accelerating the Intel Atom product line on a pace faster than Moore’s Lawto deliver increased battery life, enhanced performance and new features for amazing user experiences.

Davis also unveiled the highly anticipated Intel® AtomTM Z670 processor and Intel® SM35 Express Chipset platform, formerly codenamed “Oak Trail,” with a range of innovative tablets and form factors. These devices are available from leading customers with operating system of choice including Android*, Windows 7* and MeeGo* starting in May.

Highlighting the evolution of netbooks, Davis also disclosed “Cedar Trail,” Intel’s next-generation netbook and entry-level desktop platform. Based on Intel’s leading-edge 32nm process technology, “Cedar Trail” will include more than 10 new features that will improve media, graphics and power consumption in upcoming netbooks. The chip’s design, efficiencies and latest manufacturing process technology will enable fan-less, fully enclosed and thus ultra-sleek devices. Davis said other new features will be disclosed in the coming months, with the processor due in the second half of the year.

Renée James: Creating the Ultimate User Experience
During her keynote, James discussed Intel’s transition from a semiconductor company to a personal computing company, and emphasized the importance of delivering compelling user experiences across a range of personal computing devices. To develop and enable the best experiences, James announced a strategic relationship with Tencent*, China’s largest Internet company, to create a joint innovation center dedicated to delivering best-in-class mobile Internet experiences. Engineers from both companies will work together to further the mobile computing platforms and other technologies.

James also announced new collaborations for the Intel AppUpSM center and the Intel AppUp Developer Program in China to help assist in the creation of innovative applications for Intel Atom processor-based devices. Chinese partners supporting this effort include Neusoft*, Haier* and Hasee* and Shenzhen Software Park*.

Oak Trail Press Deck [April 8, 2011] slide #12:

Intel Atom Z6xx Oak Trail processor with SM35 Express Chipset -- 8-April-2011

Intel® Atom™ Processor Z670 (512K Cache, 1.50 GHz) (some extracted specification)

# of Cores         1
# of Threads    2

Max TDP          3 W

Tray 1ku Budgetary Price    $75.00

Max Memory Size                     2 GB
(dependent on memory type)

Integrated Graphics                 Yes
Graphics Base Frequency        400 MHz

Intel® Hyper-Threading Technology        Yes

Enhanced Intel SpeedStep® Technology  Yes

Enhanced Intel SpeedStep® Technology is an advanced means of enabling very high performance while also meeting the power-conservation needs of mobile systems. Conventional Intel SpeedStep Technology switches both voltage and frequency in tandem between high and low levels in response to processor load.

More information:
Oak_Trail_Atom_Processor_Factsheet [April 8, 2011]
Embedded_Oak_Trail_Factsheet [April 8, 2011]
Oak_Trail_Press_Deck [April 8, 2011]
Oak_Trail_Press_Presentation [April 8, 2011], from which one slide is worth to show here:

Intel IDF Beijing 2011 Netbook -- Tablet relationship in terms of tasks

Intel® Atom™ Processor Z650 (512K Cache, 1.20 GHz)

The same specifications except the clock speed and there is no price given.

Intel® SM35 Express Chipset (some extracted specification)

Product Name                Intel® 82SM35 PCH
Code Name                     Formerly Whitney Point

Max TDP                         0.75 Watts

Integrated Graphics     Yes

Graphics Output            HDMI

More information: Intel® SM35 Express ChipsetOverview

Intel, on the go [April 16, 2011]

Intel has finally taken an important step in its shift toward making chips for mobile devices, ending a year of speculation.

The processor manufacturing giant on Monday launched a new processor, a low-power version of Intel chips slated for tablets, notebooks and smartphones.

The next-generation Intel Atom processor platform, formerly code-named “Oak Trail,” will appear in 35 tablet computers and other mobile devices, including those made by Lenovo and Fujitsu, in May and throughout 2011, California-based Intel announced.

Other device makers using the new Atom Z670 include Motion Computing, Razer and Viliv. The new chip, like other processors from the line, supports Google Android, MeeGo and Windows operating systems.

With the launch of the new Intel Atom processor platform, Intel is finally making progress in the world of chip manufacturing for mobile devices, which has been predominantly occupied by the Cambridge-based ARM.

During the Intel Developer Forum (IDF) in Beijing, which opened on Tuesday and ended on Wednesday, Intel also announced that its AppUp center, currently optimized for netbooks and laptops, will be extended to support mobile devices, including tablets and smartphones, in the near future.

The localized Intel AppUp center and Intel developer program for the Chinese market, in cooperation with some local partners, is also expected to debut at the end of the year, Intel said during the IDF. The chip giant also announced at the forum the launch of a joint innovation center with Tencent to focus on mobile computing platforms.

Steering away from purely serving as a technology provider to creating a more user-friendly experienceis a tough job which cannot be done overnight, Yang Xu, president of Intel China, told reporters during the IDF.

Razer Switchblade


San Diego, California-based gaming hardware producer Razer showcased at the forum its gaming handheld concept device Switchblade, powered by the new Intel Atom processor. Running on Windows 7, the handheld, with a size of 172mm x 115mm x 25 mm, supports both WiFi and 3G. The gadget combines a new dynamic tactile keyboard and a multi-touch-screen, and, if required, a mobile gaming mouse.

As a concept for now, the device is expected to be available soon in the market, but its exact availability and pricing remains uncertain.

Evolve III Maestro C tablet
[A stand can be kicked off as well as a wireless keyboard has been integrated into the hard cover so the cover is freely detachable. See the excerpts from the video hands-on in the “Netbook Nation” article seen before. A truely innovative design.]

Sydney-based tablet maker Evolve III will join the likes of Lenovo and Fujitsu to become the first batch of manufacturers to use the new Intel Atom Z670 processor. The firm unveiled at the IDF its Maestro Convertible tablet, based on a 1.5-gigahertz Intel Z670 processor. The tablet, featuring a 10.1-inch capacitive touch display, is convertible and will be offering a triple booting of Windows 7, Android and MeeGo.

The weight of the device is 910g. The device, which mainly targets a business clientele, will first go on sale in the US and Europe around June, retailing for $729, according to Warrick Dainter, executive director of the Australian tablet maker. The device is also expected to hit the Chinese market in July or August, which will be the first launch of the firm’s products in China, Dainter said.

More information:

From Intel Newsroom:

Intel IDF Beijing 2011 fujitsu-stylistic_tablet Fujitsu stylistic tablet

The Fujitsu Stylistic Q550 is a business-class slate PC designed for the high-security requirements of mobile enterprise computing, and with the Intel® Atom™ processor Z670 inside, the device provides all-day battery life.

Intel IDF Beijing 2011 lenovo-ideapad_slate_frontbackIntel IDF Beijing 2011 lenovo-ideapad_slate_stylus

Lenovo Ideapad Slate

The new Intel® Atom™ processor Z670 inside Lenovo’s IdeaPad Slate enables reduced power consumption, extended battery life and full 1080p HD video support. The Lenovo IdeaPad Slate is powered by the new Intel® Atom™ processor Z670, as well as 2GB of RAM and a 30GB SSD for storage with a form function offering both finger and stylus input.

Intel IDF Bejing 2010 motion-cl900tablet_pc_stylusIntel IDF Beijing 2011 motion-cl900tablet_pc_case

Motion CL900 Tablet PC

The Motion CL900 tablet is the first 10-inch, rugged tablet that enables both touch and stylus input on the display along with a full day of battery life using Intel’s next generation Intel® Atom™ processor Z670. The CL900 incorporates the new Intel® Atom™ processor Z670 to provide the ideal balance between power and battery consumption while running multiple enterprise applications. The new Intel® Atom™ processor Z670 inside the Motion CL900 enables lighter devices, allowing users to work faster and more effectively in today’s decentralized work environments.

Intel IDF Beijing 2011 viliv-X70  Viliv X70

The slimmest Windows 7 tablet yet, the Viliv X70 Slate offers a custom-split keyboard to ease thumb typing, Clear Type LCD screen and an Intel® Atom™ processor Z670 to provide the ideal balance between power and battery consumption.

New Intel® Atom™ Processor for Tablets Spurs Companion Computing Device Innovation [April 11, 2011]

Company Outlines Plans to Accelerate Intel Manufacturing Lead with Intel® Atom™ Processor Family and Move Faster than Moore’s Law
Intel Corporation today announced that the Intel® Atom™ platform, formerly codenamed “Oak Trail,” is now available and will be in devices starting in May and throughout 2011. Over 35 innovative tablet and hybrid designs from companies including Evolve III*, Fujitsu Limited*, Lenovo*, Motion Computing*, Razer*, and Viliv* are based on “Oak Trail” and running a variety of operating systems.

In addition, at the Intel Developer Forum in Beijing, the company will give a sneak peak of its next-generation, 32nm Intel Atom platform, currently codenamed “Cedar Trail.” This solution will help to enable a new wave of fanless, cool and quiet, sleek and innovative netbooks, entry-level desktops and all-in-one designs.

“The new Intel Atom ‘Oak Trail’ platform, with ‘Cedar Trail’ to follow, are examples of our continued commitment to bring amazing personal and mobile experiences to netbook and tablet devices, delivering architectural enhancements for longer battery life and greater performance,” said Doug Davis, vice president and general manager of the Netbook and Tablet Group at Intel. “We are accelerating the Intel Atom product line to now move faster than Moore’s law, bringing new products to market on three process technologies in the next 3 years.”

The new Intel® Atom™ processor Z670, part of the “Oak Trail” platform, delivers improved video playback, fast Internet browsing and longer battery life, without sacrificing performance. The rich media experience available with “Oak Trail” includes support for 1080p video decode, as well as HDMI. The platform also supports Adobe* Flash, enabling rich content and Flash-based gaming.

With these significant improvements in power-efficient performance, the Intel Atom processor Z670 allows applications to run on various operating systems, including Google* Android*, MeeGo* and Windows*. This unique flexibilitydelivers both new experiences and more choice when it comes to tablets and hybrid designs that combine the best features of the netbook and tablet together.

The platform also helps deliver smaller, thinner and more efficient devices by packing integrated graphics and the memory controller directly onto the processor die. The processor is 60 percent smaller than previous generations with a lower-power design for fanless devices as well as up to all-day battery life1. Additional features include Intel® Enhanced Deeper Sleep that saves more power during periods of inactivity as well as optimized Intel SpeedStep® technology. An integrated HD decode engine enables smooth 1080p HD video playback at a fraction of the power consumption.

In addition, Intel Atom Z670 processors come with the Intel® SM35 Express Chipset, delivering a lead-free2, halogen-free3 design with high-speed USB 2.0 for greater performance and Intel® High-Definition Audioto enable premium home theater sound.

Also ideal for small form-factor and portable embedded designs, the platform provides an excellent solution for a range of tablets in retail, medical and industrial applications. Solutions such as mobile clinical assistantsallow medical staff to directly input data into patients’ electronic files and avoid paper charting. This can result in a reduction in errors, better workflow, higher productivity and reduced paper handling and overhead costs. In addition to the Intel Atom Z670, Intel is offering the Intel® Atom™ processor Z650 for embedded devices with 7-year lifecycle support on Windows and MeeGo operating systems.

Based on Intel’s leading-edge 32nm process technology, the next-generation “Cedar Trail” platform will feature improvements in graphics capabilities including Blu-ray 2.0 support, a dedicated media engine for full 1080p playback and additional digital display options including HDMI output and DisplayPort. New features will include Intel® Wireless Music, Intel® Wireless Display, PC Synch and Fast Boot. In addition, the enhancements made in power consumption and TDP will enable fanless designs with longer battery life. This means great acoustics without the hum of a fan and improved ruggedness and aesthetics of the design. Intel is currently sampling “Cedar Trail” to all major OEMs and ODMs. Users can look forward to a new generation of innovative mobile and desktop designs based on the “Cedar Trail” platform in the second half of 2011.

More information:

Maestro Tablet Runs Three Operating Systems [Jan 18, 2011]

IFP: Is this the first tablet that can switch between Android, MeeGo and Windows operating systems?

Warrick: Yes, we believe we will be the first to offer a triple boot OS for customers.  We have been working on the dual boot tablets for a long time, working to get the boot interface to run nice and smoothly. Now the hard part is over. We can offer MeeGo over to the dual boot tablet making it a triple boot really because of the in-depth work that we are going with Intel directly.

We would like to work with Honeycomb, however we are devoting most of our efforts to make sure that MeeGo and Windows 7 is 100 percent supported, as we feel that the new MeeGo platform alongside Windows 7 is a more stable platform over the android platform.

Also, using the devices myself, I can’t live without Microsoft’s PowerPoint and Excel and Outlook while on the go. You can’t beat a company dedicated to creating OS platforms as a main market share product (Microsoft/Win 7). These guys have helped us get through the hard parts of moving an OS ecosystem revolving around keyboard and mouse, over to complete touch integration.

We’re getting 7 percent support on Android, compared to nearly 100 percent support from Microsoft and Intel for the MeeGo and Win 7 platforms.

IFP: How has it been working with MeeGo – what makes it different than Windows and Android?

Warrick:MeeGo has been fantastic. It feels great to me, as it’s on the forefront of the platform. We also felt very proud to showcase the new MeeGo platform (at CES), as a lot of internal people – even the guys working at the MeeGo stand had never seen our version of MeeGo. This was the very latest, genuine version of the MeeGo platform. It is so flexible to work with, and the fact that Intel gives us a world of support to move ahead, is a giant difference to developing on the Android platform, where we’re getting very little support.

IFP: What are some of the technologies or features you like most, ones that help set you apart from other new tablets?

Warrick: Some of the things we have been have been working on with Intel is to try to create the slimmest hard drive. To create a 4mm thick external hard drive, we have had to go through some serious R&D thinking to get around some of the issues associated with developing a product like this. For example, do we sacrifice speed for thickness (SATA port is 6mm thick, as opposed to a 1mm thick Micro USB port)? But in all, we want to deliver the best balance between speed and portability.

Once you get down to the nitty-gritty of things …. it’s the ability to access the hard drive remotely via WiFi. I mean, let’s face it, does everybody always want to be accessing their hard drive by plugging a USB into their SSD? Not really, so why not make it accessible via WiFi and USB? A WiFi-accessible hard drive is kind-of cool, but it’s also something people will find useful.

Intel’s support has allowed us to implant the Intel memory wafer directly into our own transistor with our own driver in the chip rather than an external chip, allowing us to create smaller packaged devices, revolving around a completely customized product, rather than taking an existing product and modifying it.

IFP: Why create a custom hard drive?

Warrick: Business is tough in the hard drive market, so we are in tune to be different, and this has evolved from a need for these devices to exist. Memory constraints for devices such as tablets and mobile phones are getting smaller and smaller because everything is getting held on the cloud. We see the need to still be able to store our data locally, but we want this data to be available to all of our devices, not just the one you plugged into.

on App Up:
From Intel Developer Forum (IDF) Beijing: New Industry Collaborations in China [April 12, 2011]
How to build an AppUp app from a web page using AppUp encapsulator [April 15, 2011]
Calling all web app developers…we’ve got something for you! [April 11, 2011]

The Intel AppUp℠ developer program is excited to announce a new opportunity for web app developers to transform web apps into Intel AppUp℠ center apps. This opportunity, called Intel AppUp™ encapsulator, allows web app developers to expand their customer base and revenue potential by making an app from their existing web code that is compatible and available for the Intel AppUp℠ center.

How does this work? The Intel AppUp™ encapsulator embeds the web code into a native application wrapper (a hybrid app) and then creates installer packages. The native application wrapper integrates the Intel AppUp™ SDK for store authorization and QT WebKit which provides the HTML5 and Javascript engines that execute and render the web app code. After talking with one of the developers, Andy Idsinga, I got so excited because Andy said that this process is relatively simply and doesn’t require anything special to get the web code to work with the Intel AppUp™ encapsulator. In fact, developers can use their own web APIs, 3rd Party APIs, and even other 3rd party widgets. Essentially, the developer builds the web code just like other web apps utilizing html, css and javascript, images and AJAX.

Keep in mind that the developer will still need to test and debug the app. But the cool part about it is that the developer can run Intel AppUp™ encapsulator many times as the developer chooses in order to get the app to its desired final product. Once done, then the developer submits the final product to the Intel AppUp center. It’s just that simple!

For more information about Intel AppUp™ encapsulator, please read the FAQs for detailed information. If I’ve convinced you, and you’re ready to expand your customer, then launch the tool and get started now!

Intel MeeGo 1.2 Tablet UX now open sourced. This and more now on MeeGo.com [April 4, 2011]

Mid February of this year, Intel released the MeeGo 1.2 Tablet UX pre-alpha to our developer community. And now a month later we are happy to announce that this release has been fully open sourced, where it is supported and available under the open source MeeGo project at MeeGo.com. At the time of this post, the open sourced version is pre-alpha and is released as the MeeGo Tablet Developer Preview. Via MeeGo.com:

We are pleased to open up development of the tablet user experience project. This release provides a touch-optimized user interface for MeeGo tablets, introducing the new panels UI concept and including a suite of built-in applications for Web browsing, personal information management and media consumption. This project is a work-in-progress under active development and considered pre-alpha. We welcome your involvement and contributions.

As you likely recall, Intel initially released the MeeGo tablet UX 1.2 pre-alpha in February to coincide with the release of the AppUp SDK beta for MeeGo. This release allowed developers to have the tools & user experience needed to start developing, testing, & submitting tablet applications for AppUp. At the time of initial release the tablet UX could not be fully open sourced, thus was initially released under the AppUp developer program site.

However, with the MeeGo tablet UX released as open source, it sits side-by-side the other device user intefaces (UI’s) from MeeGo.com, such as; the MeeGo Netbook UI, ivi UI, Handset UI and Smart TV UI. Along with these open source device UI’s, the tablet UI is available for the MeeGo community to freely download, support, and contribute to under the MeeGo open source project.

Visit the MeeGo.com site to download the MeeGo Tablet Developer Preview, and get a full list of features and supported hardware.
http://meego.com/downloads/releases/1.2/meego-tablet-developer-preview

Also visit the MeeGo developer portal for AppUp, to get all the information you need to develop and distribute a MeeGo application.
http://appdeveloper.intel.com/meego

MeeGo UX Components

In addition MeeGo.com has released QML based MeeGo UX Components and a cooresponding Wiki.  The MeeGo UX Components make developing for MeeGo devices easier by providing a set UI elements that allow you to quickly build applications that tightly integrate with the look of the MeeGo user experience.

Visit the MeeGo UX Components Wiki
http://wiki.meego.com/MeeGo_UX_Components

This is how App Up has been started:
Industry Support for the Intel Atom Developer Program [Sept 22, 2009]

During his keynote at IDF today, Paul Otellini announced the Intel® Atom™ Developer Program, a framework for creating and distributing applications designed specifically for Intel Atom processor-based devices. For the next level of detail, tune into Renee James’ IDF software keynote tomorrow at 10 a.m. PST where she will go into the program’s specifics and describe the benefits for software developers, ISVs and OEMs. For now, please refer to the Intel Atom Developer Program announcement and appdeveloper.intel.com for more information.

Although the program has just launched, we’ve already received some encouraging words of support from software companies and hardware manufacturers alike. Here’s what some of our partners are saying:

  • “The Adobe Flash Platform enables developers to create and deliver the most compelling applications, content and video to the widest possible audience. We expect the Intel Atom Developer Program will be a great way for the Flash Platform community developing on Adobe AIR to monetize their AIR applications, and we are working closely with Intel to deliver the necessary technology to enable this opportunity on the Atom platform in the future.” – David Wadhwani, General Manager and Vice President, Platform Business Unit, Adobe
  • “Customer adoption of our Intel Atom-based netbooks is exceeding our expectations. Acer is excited to see Intel’s effort in bringing new and innovative applications to netbooks and will use the Intel Atom Developer Program framework to open an application storefront.” – Jim Wong, president, IT Products Global Operations, Acer Inc.
  • “The Intel Atom Developer Program is an integral element of providing a holistic netbook experience for our customers. Asus sees this new development model as an opportunity to encourage developers and ISVs. Asus plans to offer an application store based on this framework in order to make exciting applications available to our customers.” – S.Y. Shian, Vice President and General Manager, System Business Group, Asus
  • “Dell is passionate about providing value for developers. The Intel Atom Developer Program will open a new world of innovation and business opportunity for developers and we look forward to working with Intel to foster the creation of exciting new Windows and Moblin-based netbook applications.” – John Thode, Vice President, Small Devices, Dell Inc.

then later transformed:
Chip Shot: Mobile Apps Hit Netbooks [Sept 14, 2010]:

Intel announced the general release of its first netbook application store for consumers today at IDF, including both free and paid apps for entertainment, social networking, gaming and productivity. The Intel® AppUpSM centerheightens the user experience with applications optimized for the mobility and screen size of netbooks. To encourage consumers to discover new applications, the Intel AppUp Center features a free 24-hour “try before you buy” period for all paid applications. To download a copy of the Intel AppUp center today, visit www.appup.com.

Intel Opens Software App Store, Offers New Intel Atom Chips [Sept 14, 2010]

James: The Best Experiences Are Created on Intel Architecture
During her keynote at Moscone Center West in San Francisco, James outlined how tightly integrated and optimized software and platforms will deliver new levels of performance, along with fresh capabilities and the importance of creating an innovative experience across the personal computing continuum – from PCs to smart phones to tablets and cars, as well as any number of Internet-connected consumer devices.

Emphasizing a seamless experience across operating systems, James introduced general availability of the Intel® AppUpSM center netbook app store for consumers. The Intel AppUp center includes both free and paid apps for entertainment, social networking, gaming and productivity, optimized for a netbook’s mobility and screen size. To encourage consumers to try new applications, Intel AppUp provides “try before you buy” solutions, encouraging consumers to purchase apps they otherwise might not have. The launch was also marked by the availability of Adobe* AIRapplications, as well as apps from companies including Accuweather*, Barnes & Noble*, Funkitron*, Gibson Guitars*, iWin*, Kaplan*, KONAMI*, and Lifetime*.

In an effort to reach netbook owners worldwide, James announced agreements with Best Buy*, UK-based Dixons* and India-based Croma* to outfit each retailer with the Intel AppUp center – pre-installed on netbooks the stores sell, as well as available for current netbook owners to download online. Similarly, James announced plans from ASUS* to ship its version of the Intel AppUp center on netbooks, the “asus app store,” starting in October.

During her keynote, James highlighted the Intel AppUp Developer Program, designed to drive innovative applications for end users and new revenue opportunities for independent developers and software vendors with programs such as the Intel Million Dollar Development fund. Rick Vanner from The Game Creators was recognized as winner of the “Most Innovative Application” in the Intel Atom Developer Challengefor his game titled, “Goals.” James also introduced the “On Intel AppUp” ISV identifier, designed to help developers promote their applications on Intel AppUp center.

James acknowledged seamless experiences are only part of the equation. Open operating systems – such as Intel and Nokia’s* MeeGo*, hosted by the Linux Foundation – allow developers to create, invent and innovate. Pointing to contributions from industry leaders, James discussed MeeGo ecosystem momentum, highlighting a variety of MeeGo-based devices and how third-party software developments and the upcoming MeeGo Web runtime, to be released in October, will make it easier to write applications for these devices. Internet TV pioneer Amino* also joined James onstage to demonstrate how the company is taking advantage of the flexibility and openness of MeeGo to deliver an innovative MeeGo-based smart TV solution.

Be aware of ZTE et al. and white-box (Shanzhai) vendors: Wake up call now for Nokia, soon for Microsoft, Intel, RIM and even Apple!

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

Here is the shortest and still very comprehensive way to understand the essence of Nokia’s decision to radically change its strategy – Engadget’s video interview with Stephen Elop [Feb 15, 2011], the CEO of Nokia:

 

STATEMENTS IN THE ABOVE VIDEO YOU WILL FIND NOWHERE ELSE:

[00:48]: As it relates to the low-end we think regardless of how far we can push down Symbian and/or Windows Phone, which will rapidly come down in price as well, in price points, we believe there is always going to be this layer below, i.e. the absolute lowest level, highest cost-optimized approach. So Series 40 and its successors, and new work that we’ll do in that area, we think will continue to be an important part of the strategy going forward. [1:13] … [1:17] We call those ’mobile phones’ [i.e. not feature phones]. In our strategy, the Nokia strategy has three pieces to it: the smartphone strategy, which is about Windows Phone, it has what we call ’the next billion strategy’ which is about taking those first mobile experiences … at the very lowest of the price continuum, and the third part of our strategy is what we call ’the future disruptions’. Investing today to plan for to lead the next disruption beyond all the current activities we are doing today. [1:45]

[1:58]: Part of the specific relationship between Nokia and Microsoft is for us to contribute the expertise to planning, design and everything else, so that the Windows Phone product is not only a premium product but in the same way that Symbian has been pushed way down the price continuum, you’ll see us to do that very aggressively with Windows Phone as well. [2:16]

[08:07]: Our Plan B is to make Plan A successful. Just to be clear. What we’re doing is not thinking of MeeGo as the Plan B. We’re thinking about MeeGo and related development work as what’s the next generation. So to the extent that today there is a three horse race – Windows Phone, Android, Apple, and so forth – what comes next, what is the next major wave of business and technological disruption. We want to make it sure that we’re leading through that as well, and so the efforts will focus further into the future. [8:35]

Update: Nokia N9 UX [?Swipe?] on MeeGo 1.2 Harmattan [June 24, 2011]

Update: Open Letter from Purnima Kochikar to Developer Community [March 25, 2011] (emphasis is mine):

First, let’s recap what it is we announced; the three main areas of our strategy:

  1. Plans for a broad strategic partnership with Microsoft on Windows Phone
  2. Connecting the Next Billion
  3. Future disruptive technologies

What about Symbian? What about Qt?

Understandably, these are the first questions that come to mind. Although Windows Phone will become our primary smartphone platform, we will continue to deliver a great deal of value from Symbian. We’re making investments that will help us to engage and attract existing and new Symbian users and allow us to launch new competitive smartphones.

Over the past weeks we have been evaluating our Symbian roadmap and now feel confident we will have a strong portfolio of new products during our transition period – i.e. 2011 and 2012. These devices will take advantage of the strong integration of devices and services as well as our strength in areas such as imaging and location-based services. They will also include improvements in hardware performance such as GHz+ processing capabilities and faster graphics speeds.

To further enhance the competitiveness of these products we will deliver updates to the current Symbian user experience. The first major update will arrive in summer, delivering a new home screen, new flexible widgets, new icons, a faster browser, new Navbar and a fresh look and feel to Ovi Store and Ovi Maps, including integration of social media services in Ovi Maps….

I’ve been asked many times how long we will support Symbian and I’m sure for many of you it feels we have been avoiding the question.  The truth is, it is very difficult to provide a single answer. We hope to bring devices based on Windows Phone to market as quickly as possible, but Windows Phone will not have all language and all localization capabilities from day one.

In many markets, including markets where Symbian is currently the lead smartphone platform with significant market share such as China, India, Russia and Turkey, we will continue to make our Symbian portfolio as competitive as possible while we work with Microsoft to introduce Windows Phone. For that reason certain markets will play a more significant role in selling the 150 million Symbian devices than others and we will be selling devices long after Windows Phone devices from Nokia have already started to appear in other markets. That is why we cannot give you the date when Symbian will no longer be supported.

Qt, the development platform for Symbian and future MeeGo technology remains critically important and Nokia is committed to investment in Qt as the best toolset for those platforms and we are focusing on future developments in part by our plan to divest the commercial licensing business [“by the end of March 2011” Digia to acquire Qt commercial licensing business from Nokia [March 7, 2011]], used mainly by developers of embedded and desktop applications beyond the mobile market. [“Qt is actively used by around 3500 desktop and embedded customer companies which will be transferred to Digia upon closing. The commercial customers represent a broad range of industries, e.g. consumer electronics, finance, aviation, energy, defence and media.”]

Additionally we are readying app analytics, in-app advertising, in-app purchasing, a new browser and hardware enhancements. There are a lot of new things for developers to take advantage of in these soon-to-be-released APIs. We are continuing to explore Qt for use in other strategic investment areas as well.

WHAT IS NOT CLEAR AT ALL FROM THE VIDEO is the global market situation in all its details and nuances which forced Nokia to make such a radical change in its alltime strategies of going alone. From simple news articles it is also not clear to outsiders whether it was the best decision for Nokia or not, specifically considering the current favorite of the market, the Google Android platform. And to have a clear picture on both is more the essential. For everybody who is doubting that please first read Nokia’s radical CEO has a mercenary, checkered past [Feb 14, 2011] and after being confused with that (especially with the comments part) get yourself familiar with (emphasis is mine):

Shanzai [alt. sp. shanzhai or Shan Zai] literally means “Mountain Bandit or Fortress” [here is a very detailed wikipedia explanation] in Mandarin Chinese. It is a phenomenon that goes far beyond the simplistic view of “copycat products” and in popular Chinese cultural usage is used to describe a vendor who operates a business without observing traditional rules or practicesoften resulting in innovative and unusual products or business models. Reading the stories on this website will open your eyes to a whole new business phenomenon that is affecting all of our lives whether we realize it or not.

from the Shanzai.com opened in July 2009, when it became obvious to Timothy James Brown, an IT executive working in Asia for the past 13 years, that Shanzhai (I will use rather this form as it is more general in referenced sources used below) is indeed a new business phenomenon which will start to influence the non-Chinese speaking world of the global technology in an big way. In the last two years another new name also came out for part of Shanzhai: white-box vendors, to reflect the fact that they were hard pressed (by the government) to leave the gray-market, thus to become legitimate in all respects, as well as naturally becoming larger scale operations capable of entering the international markets.

It is also worth to look at China Gray-Market Cell Phone Shipments Slow in 2011 [iSuppli press release, Dec 16, 2010] (emphasis is mine):

China’s gray-market cell phone shipments will amount to 255 million units in 2011, up 11.8 percent from 228 million in 2010. This compares to a rise of 43.6 percent in 2009.

Gray Market Handset Shipment Forecast by iSuppli -- Dec-2010

Gray-market handsets are cell phones manufactured in China that are not recognized or licensed by government regulators. Makers of these products generally do not pay China’s value-added taxes and, therefore, profit illegally from their participation in the market.

“The object of a nationwide government crackdown, the gray cell phone market in the world’s most populous country is facing some trepidation as official scrutiny focused on illegal handsets and as consumers are starting to lose some interest in the devices,” said Kevin Wang, director of China research at iSuppli. “This created particular challenges for white-box handsets – on which gray-market dealers can put their logos. These types of phones use smuggled chips, carry no certification from China’s Ministry of Industry and Information Technology, sport fake international mobile equipment identity codes and are smuggled to Hong Kong to avoid value-added taxes.”

What growth there is in 2011 will be driven by demand from emerging countries as well as by falling average selling prices for gray handsets.

After growing in 2011, the gray market will begin to decline in 2012. This is because gray market cell phone suppliers will be unable to cut prices any further – even if they wish to win more new customers in emerging countries. Suppliers also will find themselves competing with an increasing number of locally branded original equipment manufacturers (OEMs) that provide better quality and after-sales service, iSuppli believes.

The market for gray handsets

Aside from serving domestic demand in China, gray handsets command sizable sales in other countries in the Asia-Pacific region, an area that includes Thailand, Vietnam, Indonesia and the Philippines – as well as Pakistan, a neighbor to China. And while gray-handset shipments in 2010 within China will fall to 24.2 million units, down from 33.2 million in 2009, gray-handset shipments to other Asian countries during the same period will rise to 154.4 million units, up from 110.2 million.

The market for non-gray handsets

Meanwhile, shipments from Chinese non-gray handset makers will grow by 36.4 percent in 2010 and continue to climb during the next five years. Not only will Chinese OEMs improve their global market sales – especially in the emerging countries – China’s white-box handset shipments also will keep growing. Furthermore, Chinese handset makers will win more orders from international carriers and from locally branded OEMs in the emerging markets.

Within the domestic market, China’s 3G handsets are poised for dramatic expansion – reaching 51 million units in 2010 and maintaining growth in the next five years, thanks to the continued decline of both 3G handset prices and service fees. By 2014, local 3G handsets are projected to reach 134 million units.

Read More > China’s Gray Market Handset Shipments Continue Expanding in 2011

Update: China’s innovation drive in “post-Shanzhai” era [Xinhua, March 11, 2011] (emphasis is mine)

The “Shanzhai” industry, which churns out electronic goods that imitate well-known brands, is declining even in its hotbed and birthplace in south China’s Shenzhen City.Signs that say “Shop to Let” adorned many electronic stores along Shenzhen’s Huaqiangbei Road. About one-third of Huaqiangbei’s estimated 3,000 sellers of “Shanzhai” cell phones have left the business, said Tang Ruijin, the secretary general of Shenzhen Mobile Communication Association.

The price cut of branded cell phones and the public’s growing intellectual property protection (IPR) awareness contributed to the decline of “Shanzhai.” But the heaviest blow came from China’s determination to enhance IPR protection and develop indigenous innovation, Tang said.

Sociologist Ai Jun noted that the “Shanzhai” phenomenon is a period that China and other developing countries must go through in fostering their companies’ innovative capacities. “It is a natural process to first imitate and then innovate.”

So it might quite well be the case that big name legacy businesses will need leaders like Stephen Elop to compete with the new, legalized (non-gray) “mountain bandits”, i.e. Shanzhai, if the bad-mouthing about Elop referred above is indeed true. If this is not true, then a very impressive leader, like Steve Elop is in the above video again, will be needed either.

You will understand this in all details when coming through the sections below:

  • Stir in the “old boys” camp: Nokia, Microsoft, Intel, and Apple
  • Earthquake like changes in the mobile phone market: numbers from IDC
  • Radical strategy shift/reorg at Nokia
  • White-box (Shanzhai) vendors
  • MediaTek as the catalyst of the white-board ecosystem
  • ZTE et al.

(If you don’t like such long readings you can finish with a quite literary type story of how Nokia’s Flirtations Put the Fear of Google Into Microsoft [WSJ, Feb 18, 2011]. The “only” thing you will miss will be the real understanding of the deal.)

Stir in the “old boys” camp: Nokia, Microsoft, Intel, and Apple

Nokia sees Windows phone prices dropping fast [Feb 18, 2011] (emphasis is mine)

Prices of smartphones using Microsoft’s Windows Phone software platform will fall fast, Nokia’s chief executive Stephen Elop said on Friday.

Last week Nokia, the world’s largest phone maker by volume, said it would adopt Microsoft’s software across its smartphones, raising fears the firm would miss out during the transition on surging demand for cheaper smartphone models.

Elop said one of the key topics in the talks on doing a deal with Microsoft was convincing Nokia that it could reach “a very low price point.”

We have become convinced that we can do that very quickly,” Chief Executive Stephen Elop said in a meeting with Finnish business journalists.

Trying to better compete with Apple’s iPhone, Microsoft has so far had tight hardware requirements for phone models using its software — pushing up handset prices and limiting the potential market.

As part of the push to a wider market and lower prices, Microsoft plans to open its mobile platform to other chipset suppliers beyond Qualcomm.

Nokia’s shares dropped more than 20 percent after it announced the Microsoft deal, but industry executives have said the new alliance will be good for competition and innovation.

Elop said the final agreement between Nokia and Microsoft would be signed in the next few months.

“The conclusion of the agreement will happen, we think, quite quickly, measured in a couple of months, it may be a bit longer, it may be shorter,” he said.

ELOP SELLS MICROSOFT, BUYS NOKIA

Elop, who joined Nokia from Microsoft last September said he sold all his Microsoft shares on February 17 and has bought 150,000 shares in Nokia. The Canadian is the first non-Finn to head the firm.

Shares in Nokia were up 0.7 percent at 6.76 euros by 1038 GMT.

Now it is worth to watch a 7-minute highlights video of Microsoft’s (Steve Ballmer’s) keynote from the Mobile World Congress 2011 to understand the enhanced version of Windows Phone 7 which will be introduced quite probably in fall of this year with the new WP7 Nokia devices:

Especially follow when Joe Belfiore, Corporate Vice President, Windows Phone Program Management, is showing the three most important enhancements for WPF7: the effect of hardware accelleration from IE9 added to the WP7 (demoed vs. iPhone 4 using the well known FishIE page demo), multitasking demoed by a combined phone and gaming scenario, and the new user interface element to have a task-switching view from the Back button.

Stephen Elop has summarized the significance and the benefits of this new strategic partnership as follows (during Steve Ballmer’s keynote at the Mobile World Congress 2011 [Feb 14, 2011]): (emphasis is mine)

It’s truly a pleasure to address you here today at a moment that we think is pretty significant in how we see the evolution of the mobile industry evolve.

You’ve heard me talk about it in a number of forums, that the world is shifting from a battle of devices to a war of ecosystems. And with the announcement that we made jointly with Microsoft just a couple of days ago, it’s very clear the selection we’ve made as it relates to that war.

As you read all of the press and the analyst commentary, of which there’s been a little bit over the last couple of days, it is the case that there’s a common theme emerging that I want to focus on, and that is that Microsoft and Nokia together represent a natural partnership. People are getting it, and they’re getting it for a variety of reasons.

First of all, if you think about the device experience, Nokia brings iconic hardware, incredible industrial design, and we’re matching that up and bringing that together with a leading operating system platform for the future, with an amazing amount of capability that you saw demonstrated here today, and between the two of us we have the understanding of what it means to take it from where it is today, even more broadly down through the pricing continuum so that we have the opportunity to deliver an entire portfolio and range of devices the world over. So, that’s an incredible bit of symmetry and the complementary nature of the relationship, a very powerful element.

A second point of symmetry relates to the area of our global reach, our distribution, the power of our brand, the volumes that we bring, and what we can do to strength the Windows ecosystem, while at the same time getting the support from Microsoft to help us address some of our challenges, which, of course, relates to reentering the U.S. market in a compelling way where Windows Phone has already had a strong start, so there’s an opportunity there.

And, of course, the third point of symmetry relates to the services area that Steve referenced here a few moments ago. We bring mapping, location-based services, the capability to do local advertising, and a variety of other things, together with things like Bing search, Office for productivity, Xbox, and a variety of other things, and thereby form that third ecosystem, because again what our consumers are purchasing today is a combination of all of those things, a single user experience that is a combination of all of those pieces, and together we’ve been able to bring those together to create that third ecosystem.

But if you were to sum it all up, what we’re able to do through this relationship is to ensure that we deliver products that are more competitive, which, of course, is what it’s all about.

Now, it is our belief that this is good news for operators. It’s good news for operators because we’re in a situation where we can actually create that third ecosystem and create an entirely different dynamic than that which was appearing to be forming as it relates to the actions of those other ecosystems, and you understand what I mean in terms of the importance of that balance, because that balance also allows operators to deliver more choice to the ultimate consumer, which is important.

It is also the case that for operators Nokia has had a longstanding relationship with operators all over the world. We understand what it means to be the most friendly partner to operators, we know what we have to do, and this is an area where we will be contributing our strength and our knowledge, our engineering and other assets to allow the Windows Phone ecosystem to be unquestionably the most operator-friendly ecosystem that exists today, because that’s clearly part of it.

We also think this is very good news for developers. It’s good news for developers because we can bring a scale operation, a large number of devices and opportunities to reach customers all over the world through what Nokia will deliver to this partnership through our broad reach and distribution.

Microsoft has a very modern collection of tools to help developers move in that direction. Nokia contributes things like operator billing and other forms of monetization that are not available through any of the other ecosystems. So, we bring those pieces together.

And, of course, finally and most importantly, we think this is great for consumers: iconic hardware, stellar software, combined with unique services, the third ecosystem. We’re thrilled to have this opportunity.

So, there’s been a lot of news, a lot of things going on. Our focus today shifts to delivering those first devices, and changing the industry.

The upcoming new features of the WP7 are not limited to the ones demonstrated by Joe Belfiore in the previous video. Here is another benefit the combined Windows Phone 7, Xbox and Kinect experience [Feb 14, 2011]:

The technology shown in the video is real and is intended to demonstrate the types of experiences Microsoft will be bringing to market. This is just one example of what’s possible as the company explores new ways to interact with Microsoft technology.

How Microsoft was summarizing the benefits of that strategic partnership? The shortest but still essential presentation of that was given on Microsoft financial analyst briefing at the 2011 Mobile World Congress [Feb 14, 2011] by Andy Lees, President of Microsoft Mobile Communications Business (emphasis is mine):

The other thing that we announced at Mobile World Congress is the partnership with Nokia. Our ecosystem is very important for the success of the phone. Nokia sold about 100 million smart phones over the last 12 months, and they are putting Windows Phone as their primary smart phone platform going forward. They’ll still continue to sell Symbian during a transition period. So, it will carry on in parallel for a while, but nonetheless, it’s a strong commitment to the ecosystem.

And that’s going to have a big acceleration for us. That’s going to have benefits for Microsoft, and actually for the ecosystem – that includes operators, ISVs, developers, and even, in many respects, the other OEMs. When speaking with the other OEMs, they’re excited about the competition in many respects, because it will broaden the overall size of the market, and <it will broaden> the adoption of Windows Phone by users and, therefore, the breadth of the ecosystem that supports it.

It’s a very good arrangement for ourselves, and it’s also good for Nokia. Nokia does a wide variety of things, not just the handset; they innovate in lots of different ways. And they’re going to be able to bring those <innovations> to the Windows Phone ecosystem. For example, the agreement includes mapping. We will adopt Nokia’s core mapping technology, which really is second to none. Bing will be integrated across everything that Nokia does. Their location services will generate advertising revenue for Nokia, not only on their phones, but actually across where those same location services are used on other phones, and even on the PC and other devices.

It’s a multi-faceted agreement, and it includes royalty payments for our software. It includes joint marketing and, as I mentioned, significant revenue opportunities. Considering the size of the smart phone market is growing to being in excess of half a billion phones over the next few years as a run rate, and an install base that will very quickly reach over a billion smart phones, you can see how the opportunity for them not only to sell more devices through the differentiation that they provide and the collaboration that we do to enable that, but also to add-on through these individual services.

QUESTION: My question would be related to the Nokia licensing agreement. Do you see Nokia as a more important licensee to Windows Phone 7 than others? And are they going to have any special treatment when it comes to royalty fees? Thank you.

ANDY LEES: So, first of all, it’s a much broader agreement than being a licensee. It includes an element where they are a licensee but, as I described before, it incorporates a wide variety of things like mapping, location-based services, advertising, search, joint marketing, and joint development. Because of the footprint of Nokia, and the overall unit volume that they represent, the multi-faceted element of this agreement is unique.

Having said that, we do continue to support other OEMs. They’re excited about the impact that that’s going to have on the ecosystem. They also have the ability to differentiate and compete. So, yes, the agreement is very unique, because it’s multifaceted and very broad with Nokia, and that’s part of the reason why I think it’s going to be good for them. But also, we know that an important element is to have competition, and Nokia recognizes that, and it’s an important part for them that the ecosystem is healthy.

QUESTION: I was wondering if you could help us understand a little bit about the timeframe for the design cycle for a new Windows Phone?

ANDY LEES: It varies a lot by OEM. If you were to start completely from scratch, it takes a while, 18 months. But, you don’t often need to start from scratch. If you’re asking specifically with Nokia, Nokia has lots of components that they can use in order to get a much faster start. So, it depends on how far progressed you already are, and how much is transferable with that.

One of the things that we did in Windows Phone 7 is to design much more of the totality of the core system, which does improve overall quality, and the predictability of the experience, but it has a nice side effect of being a much faster operating system for people to come on stream with. So, that’s an advantage of Windows Phone versus other options.

QUESTION: Nokia said that Microsoft will transfer billions to kind of get this ecosystem going. I’m just wondering what your priorities might be in terms of jumpstarting the initiative, where those billions might be spent, and also if you now have feedback from carriers of what they might be saying about the combination?

ANDY LEES: So, in terms of the agreement, it’s a long-term multi-faceted agreement, as I’ve just said. It includes search revenue transfer, advertising revenue transfer, location-based services revenue transfer, royalty payments for software, and it includes joint marketing. There are lots of facets of the deal. We’re not going into the numbers for each one of those things. Given the size of the total market, there is very substantial opportunity both for Nokia and for ourselves in order to grow units, revenue, and margin. We’re not predicting that, obviously. So, we see it as a good opportunity for us.

And I think Nokia went through a very rigorous evaluation process. Certainly from the conversations we had with them, and being involved in the process in that way, they did an evaluation that included the technology, a strategic evaluation of long-term roadmap and differentiation that they can provide, assets that they have that they can apply, and then, of course, an economic return through our businesses. And they chose this. They could have chosen whatever one, so they must think it’s the best opportunity for them going forward having done that, and I would say it was a very, very rigorous evaluation done over actually a few months. And it was probably one of the most rigorous things I’ve been involved in in that way.

QUESTION: Just a quick one on sortre of skins and customization. I just wondered whether Nokia would be able to customize the devices that they offer with Windows Phone 7. And then related to that, whether there was an issue with Qt for Windows 7, or whether it wasn’t a problem, because I think Stephen Elop last night said that Qt wouldn’t be available for Win 7. Thank you.

ANDY LEES: So, the first question is about differentiation. Yes, we’ll enable differentiation. What we don’t want to do, though, is fragment the ecosystem. And fragment it for developers, or indeed for end users. So, we have a collaborative development process with OEMs, and in this case particularly with Nokia, to be able to listen to what it is they want to do and then make a joint decision. And what they know is fragmentation in the ecosystem is ultimately a significant problem. And so they don’t want that. And so having change for the sake of change, which is what does happen in other places, is sometimes a negative thing. So, yes, they can differentiate, yes they can add value, yes, they can enhance in that way. However, we want to make sure that we are consistent.

And then the second question was to do with Qt. Qt is a development part of Symbian. It is not a development part of Windows Phone. We will be helping developers with Nokia, who want to do that transition. But, they will be transitioning from Qt to Windows Phone. They will carry on development of Symbian for a number of ‑‑ quite a period of time. They have a huge install base and developers will want to go through and continue to address that.

So, they’ll continue to enhance and support Qt for quite some time. I think they’ve predicted that they will be selling, even from this day forward, about 150 million copies of Symbian over the next few years. So, it’s not that it’s a dramatic change over – it’s that there will be an evolution and we’ll help developers with that transition.

QUESTION: Can you summarize for us your message to the operators as Stephen Elop put it earlier today, the most operator-friendly ecosystem?

ANDY LEES: Yes, if you look at the choices that operators have in terms of fully fledged ecosystems, the conversations we’ve had with operators is that they have been ecstatic without exception, and I mean so much so that what they have said to us is that this is strategically important for us. They would like to have a balance of ecosystems. They want to bet on having a balance of ecosystems in their network and therefore, they will disproportionately work to help make sure this ecosystem is successful.

One of the things they are finding is that increasingly the other ecosystems appear more and more hostile, with the people that are working on those using it as a way to control revenue flow and to control relationships with customers. [Quite obvious reference to Apple and the way how AppleStore is set up, could be even a reference to Android ecosystem as well.]

That’s not our strategy and our strategy is to be a full-fledged ecosystem. We’re not trying to own the customer in the place of somewhere else, we’re not trying to stop other people from making revenue on the phone. An ecosystem is all about people working together and that means making money together and dealing with customers together. So, that really is our strategy. We are therefore very operator-friendly. So is Nokia. And that really helps us, I think, quite a lot in getting their support.

UPDATE 2-Intel says will find new MeeGo partners [Feb 17, 2011] (emphasis is mine):

Intel Corp (INTC.O) said its partner Nokia dropped the MeeGo operating system [not exactly true, see later] after Microsoft offered “incredible” amounts of money for the phonemaker to switch to Windows but it would find new partners for MeeGo.

Intel’s Chief Executive Paul Otellini said in a meeting with analysts in London, accessed by Reuters via conference call, that Nokia’s (NOK1V.HE) choice of Microsoft (MSFT.O) over Google’s (GOOG.O) Android platform was a financial decision. [ID:nLDE71A0DG]

Otellini said Nokia’s Chief Executive Stephen Elop received “incredible offers — money” from Google and Microsoft to switch.

“I wouldn’t have made the decision he made, I would probably have gone to Android if I were him,” he said. “MeeGo would have been the best strategy but he concluded he couldn’t afford it.

Microsoft was not immediately available for comment.

Google Chief Executive Eric Schmidt said at the Mobile World Congress in Barcelona on Wednesday that he had held extensive talks to try to woo Nokia. [ID:nLDE71F026]

Otellini said Nokia would find it hard to differentiate using the Windows platform: “It would have been less hard on Android, on MeeGo he could have done it.”

“We will find another partner. The carriers still want a third ecosystem and the carriers want an open ecosystem, and that’s the thing that drives our motivation,” he said.

MeeGo was created last year by the merger of Nokia and Intel’s Linux-based platforms Maemo and Moblin. [ID:nLDE61E0Z2]

Otellini said in Barcelona that open systems had the edge over closed systems: “Some closed models will certainly survive, because you can optimise the experience, but in general, if you harness the ability of all the engineers in the world and the developers in the world, open wins.”

Intel as the new champion of open systems? YES. Nokia’s decision is – however – representing the best interests of Nokia. There is certainly nothing left to Mr. Ottelini as represent his own company’s best interests which he does well, by championing open systems for example. Another proof is just that when President Obama Visited Intel’s Oregon Research and Manufacturing Site, Highlights Education, Jobs and Innovation [Feb 18, 2011] the simultaneous announcement was that Intel to Invest More than $5 Billion to Build New Factory in Arizona [Feb 18, 2011] (emphasis is mine):

The new Arizona factory, designated Fab 42, will be the most advanced, high-volume semiconductor manufacturing facility in the world. Construction of the new fab is expected to begin in the middle of this year and is expected to be completed in 2013.

“The investment positions our manufacturing network for future growth,” said Brian Krzanich, senior vice president and general manager, Manufacturing and Supply Chain. “This fab will begin operations on a process that will allow us to create transistors with a minimum feature size of 14 nanometers. For Intel, manufacturing serves as the underpinning for our business and allows us to provide customers and consumers with leading-edge products in high volume. The unmatched scope and scale of our investments in manufacturing help Intel maintain industry leadership and drives innovation.”

While more than three-fourths of Intel’s sales come from outside of the United States, Intel manufactures three-fourths of its microprocessors in the United States. The addition of this new fab will increase the company’s American manufacturing capability significantly.

Building the new fab on the leading-edge 14-nanometer process enables Intel to manufacture more powerful and efficient computer chips. The nanometer specification refers to the minimum dimensions of transistor technology. A nanometer is one-billionth of a meter or the size one ninety-thousandth the width of an average human hair.

“The products based on these leading-edge chips will give consumers unprecedented levels of performance and power efficiency across a range of computing devices from high-end servers to ultra-sleek portable devices,” said Krzanich.

Fab 42 will be built as a 300mm factory, which refers to the size of the wafers that contain the computer chips. The project will create thousands of construction and permanent manufacturing jobs at Intel’s Arizona site.

Considering that it was just last October as came the news Intel Announces Multi-Billion-Dollar Investment in Next-Generation Manufacturing in U.S. [Oct 19, 2010] (emphasis is mine):

  • Intel will spend $6-8 billion in manufacturing to support future technology advancements in Arizona and Oregon.
  • The investment supports the creation of 6,000-8,000 construction jobs and 800-1,000 permanent high-tech jobs, and also allows Intel to maintain its current manufacturing employment base at these U.S. sites.
  • The investment will fund a new development fab in Oregon, as well as upgrades to four existing fabs to manufacture the next-generation 22-nanometer (nm) process technology.
  • Intel’s next-generation, 22nm microprocessors will enable sleeker device designs, higher performance and longer battery life at lower costs.

Intel’s strategy – quite obviously – is to “outmanufacture” everybody else. See also my post: Intel’s industry position and prospects for years ahead [Dec 9, 2010 with updates till Jan 14, 2011]. In a longer term it is definitely the best representation of Intel’s own interests.

Parallel to that they are strengthening their software-related investments as well, see Intel Capital Investments to Help Expand the Mobile Ecosystem [Feb 14, 2011] (emphasis is mine):

MOBILE WORLD CONGRESS, Barcelona, Feb. 14, 2011 – Intel Capital, Intel Corporation’s global investment organization, today announced six new investments to drive continued innovation across the mobile hardware, software and applications ecosystems. The new deals total approximately $26 million and include open source mobile software solutions company Borqs; location-based mapping platform and tools provider CloudMade; QuantumFilm™-based image sensor vendor InVisage; open source online video platform Kaltura; online authentication provider SecureKey Technologies; and unified communications and collaboration service software provider VisionOSS Solutions.

The six companies each have developed innovative technologies to enhance the user experience across a continuum of devices, including handhelds, tablets and laptops, that run a variety of operating systems including MeeGo and Android*.

Borqs Ltd. (Borqs) (Beijing) is an Android software integrator for mobile devices. The company works with name-brand smart phone OEMs, semi-conductor companies, and mobile operators to enhance the Android system to meet their requirements. With expertise ranging from kernel, device-level drivers to top-level user interfaces, Borqs Android solution has been deployed in more than 30 Android mobile devices for W-CDMA networks and TD-SCDMA networks. Borqs Android solution is Google CTS compliant. The investment from Intel Capital, subject to the satisfaction of closing conditions, aligns with Intel’s port of choice strategy to support multiple operating systems across a variety of devices and will be used by the company for business development.

CloudMade (Menlo Park, Calif.) was founded in 2007 to enable developers to build location-enabled applications and services. The company provides application developers with a range of innovative tools and application programming interfaces to enable the creation of unique location-based applications across all major web and mobile platforms. Today there are more than 16,000 developers using CloudMade’s tools to create applications for mobile and Web consumers. The investment from Intel Capital will be used to further strengthen the platform and to work with developers to provide them with an unparalleled suite of tools designed for their specific needs. CloudMade will be certified under the Intel’s AppUp™ application store.

Kaltura (New York) provides a widely adopted open source online video platform. More than 100,000 media and entertainment companies, enterprises, small- and medium-size businesses, educational institutions, service providers, platform vendors and system integrators use Kaltura’s flexible platform to enhance their websites, Web services and Web platforms with advanced customized rich-media functionalities that are delivered through any connected device. Kaltura’s features and products enable the easy deployment of custom workflows involving video, photo and audio creation, ingestion, publishing, management, distribution, engagement, monetization and analysis. The investment will be used to enhance rich-media functionalities on tablets, mobile phones and other connected devices, with a special emphasis on supporting the MeeGo™ mobile operating system and Intel’s AppUp application store.

Software-wise Intel’s strategic bet is definitely the open-source as it was already shown in my earlier post Intel’s industry position and prospects for years ahead [Dec 9, 2010 with updates till Jan 14, 2011] by a single presentation excerpt of:

(where Nokia was already missing from the MeeGo design wins !) as well as by the another post of mine Intel Oak Trail to beat ARM with MeeGo specific prices [Nov 25, 2010]. Note that Android is high on Intel’s list as well since MeeGo is a quite new system. See Nokia, Intel release MeeGo 1.1; lacks support for tablets [Oct 29, 2010], For developers’ eyes only: MeeGo version 1.1 [Nokia’s own blog, Oct 28, 2010], MeeGo 1.1 Release [meego.com, Oct 28, 2010], MeeGo v1.1 for Netbooks (Google Chrome Browser) [meego.com], MeeGo v1.1 for Handset [meego.com] and MeeGo v1.1 for In-Vehicle Infotainment (IVI) [meego.com]. Nokia also had different plans for MeeGo from Intel back then platformwise as per Nokia Makes Qt its Sole App Development Framework [Oct 21, 2010], Nokia Focuses on Qt to Extend Reach for Developers, Make Mobile Experience Richer for Users [Oct 21, 2010] and Nokia further refines development strategy to unify environments for Symbian and MeeGo [Oct 21, 2010].

With the latest Nokia decision to select Windows Phone 7 as its primary operating system Nokia’s plans for MeeGo changed only in the sense that Qt has been dropped as the unified environment for developers but as per the Nokia outlines new strategy, introduces new leadership, operational structure [Feb 11, 2011]:

Under the new strategy, MeeGo becomes an open-source, mobile operating system project. MeeGo will place increased emphasis on longer-term market exploration of next-generation devices, platforms and user experiences. Nokia still plans to ship a MeeGo-related product later this year.

which is very painful for Intel as it practically should push MeeGo through the market alone while Nokia can pick the fruits of Intel’s effort practically free of charge when MeeGo becomes a factor on the market. Nokia’s biggest contribution to the MeeGo success will be just the advanced user experience as has been promised before, see my earlier post Nokia to enter design pattern competition for 2011 smartphones with MeeGo [Dec 9, 2010]. But that user experience wil be kept to Nokia, so Intel will not benefit from it elsewhere.

Whether Intel understands the upcoming threat to its business is still not clear from all that above.

Meanwhile Apple definitely needs to take the white-box vendors threat more seriously as indicated by two recent news below:

New York Times: Apple Is Not Making a Smaller iPhone [Feb 18, 2011]

The New York Times has poured cold water on a rumor that Apple is preparing to sell a smaller version of the iPhone.

The report conflicts with stories published earlier this week by Bloomberg and The Wall Street Journal, who both claim that Apple is making a smaller iPhone that relies heavily on cloud-based storage and media streaming.

Citing an anonymous source, NYT explained that Apple is working on methods to bring costs of the iPhone down, and a smaller iPhone wouldn’t necessarily be cheaper to produce, nor would it be easier to operate.

Two major publications say something is happening, and one major publication is saying it’s not. We’re inclined to believe NYT, however, because the explanation seems more rational. Reducing storage and size wouldn’t bring down costs much, and a different screen size would also cause fragmentation in the App Store.

Apples biggest plans to upset faster retail store progress in China [Shanzai.com, Feb 21, 2010]:

We’ve reported before that Apple was lagging on meeting its earlier commitments to open 15 or 25 retail stores in China this year but now it seems an effort to build its biggest store yet will slow things down further.

40,000 people/day apparently tromp through the few Apple retail outlets in China at the moment (I’m never sure but now I think there are 5 locations)… so bigger is probably a much welcome strategy for building an Apple shrine/store.

Since Apple revenue in China last year grew over 4x from the previous year, they’re probably needing to scout new locations that can handle higher retail traffic volumes.

Apple, which had all but neglected the China market for years, has recently stepped up efforts to expand outside the U.S. In its last earnings call, the company’s Chief Operating Officer Tim Cook said revenue from Greater China reached $2.6 billion, four times the company’s China revenue a year earlier.Source

Apparently Chinese Apple retail store traffic is also 4x larger than American retail traffic so I suppose they’ll also need to find 4x the geniuses to guide consumers through the buy and use process.

 

Earthquake like changes in the mobile phone market: numbers from IDC

According to CORRECTING and REPLACING Mobile Phone Market Grows 17.9% in Fourth Quarter, According to IDC [Jan 28] the phone market changed significantly in 2010:

Top Five Mobile Phone Vendors in 2010 by IDC

Considering the market changes in the 4th quarter 2010 the changes are even more significant:

Top Five Mobile Phone Vendors in Q4 2010 by IDC

IDC also released information about the smartphone part of the phone market. See Android Rises, Symbian^3 and Windows Phone 7 Launch as Worldwide Smartphone Shipments Increase 87.2% Year Over Year, According to IDC [Feb 7, 2011]. Here we can see even more troubling signs for four traditional phone vendors in the Top 5. Year-over-Year the situation is as follows:

Top Five Smartphone Vendors in 2010 by IDC

Here Research in Motion (the Blackberry vendor) is quite visiblibly in a trouble zone as its strong smartphone position is fast declining against such Top 5 challengers as Samsung and HTC. Even Apple should worry since it barely succeeded grow a little faster than the overall smartphone market but the upcoming challengers, Samsung and HTC grew by several times faster, 318.2% and 165.4% accordingly. This observation for all three Top 5 companies in trouble is even more proven by IDC’s 4th quarter 2010 numbers:

Top Five Smartphone Vendors in Q4 2010 by IDC

Here we can see that Nokia lost 27.5% of its quarterly market share in a year, Research in Motion (RIM) 27.1%, and Apple remained on the same quarterly market share as a year before which means that all the lost marketshare by Nokia and RIM, which is not less than 16% of the overall (10.6% + 5.4% subsequently) went to the other challengers. Samsung’s and HTC’s gains were “just” 10.3% of the overall (6.6% + 4% subsequently) which means that even vendors in the “others” category were able to pick 5.4% out of the Nokia’s and RIM’s 16% combined loss of marketshare. For Apple it is as much of a danger sign as the most obvious things for Nokia and RIM.

IDC’s additional verbatim assesment of the 4th quarter situation (from their press release indicated above, emphasis is mine):

Android continues to gain by leaps and bounds, helping to drive the smartphone market,” said Ramon Llamas, senior research analyst with IDC’s Mobile Phone Technology and Trends team. “It has become the cornerstone of multiple vendors’ smartphone strategies, and has quickly become a challenger to market leader Symbian. Although Symbian has the backing of market leader Nokia, Android has multiple vendors, including HTC, LG Electronics, Motorola, Samsung and a growing list of companies deploying Android on their devices.”

Adding to the competitive landscape is the entrance of two refreshed operating systems, Symbian^3 and Windows Phone 7 [wrong: WP7 is a completely new system, has nothing related to the previous Windows Mobile line]. “In their first quarter of commercial availability, both Symbian^3 and Windows Phone 7 ramped up quickly, just in time for the holidays,” added Llamas. “By the end of the quarter, Nokia had shipped five million Symbian^3 units while Windows Phone 7 vendors shipped more than 1.5 million units. Now, with the holiday quarter over, both platforms will need to sustain this initial growth in the quarters to come.”

Regarding Nokia IDC was even somewhat positive:

Nokia noted the positive progress of its new Symbian^3 smartphones during 4Q10: five million units combined from the N8, C7, and C601 worldwide, a strong showing given their recent introduction to the market. At the same time, Nokia’s volumes are largely comprised of older devices, while MeeGo-powered devices have yet to arrive on the market. In addition, Nokia continues to struggle in the North America market. The recent cancellation of the X7 smartphone at AT&T highlights Nokia’s challenges and a new device has yet to be revealed.

Regarding Apple and RIM IDC did not see any kind of problems worth to mention. Regarding the overal mobile phone market situation (as given in the first press release linked so far) their observations are (emphasis is mine):

It’s not just smartphone-focused suppliers that capitalized on the mobile phone market’s renewed growth last year. ZTE, a company that sells primarily lower-cost feature phones in emerging markets, moved into the number 4 position worldwide in 4Q10. It is the first quarter the Chinese handset maker finished among IDC’s Top 5 vendors.

“Change-up among the number four and five vendors could be a regular occurrence this year,” added Ramon Llamas, senior research analyst with IDC’s Mobile Devices Technology and Trends team. “Motorola, Research In Motion, and Sony Ericsson, all vendors with a tight focus on the fast-growing smartphone market who had ranked among the top five worldwide vendors during 2010 are well within striking distance to move back into the top five list.”

Regionally they were only indicating that (emphasis is mine):

Domestic brands in India like G-Five, Micromax, and Karbonn grew with aggressive advertising and branding activities for entry-level phones, while ZTE and Huawei worked closely with carriers to push low-cost Android smartphones in China. …

… In Western Europe, carrier smartphone promotions motivated more users to scrap their feature phones, resulting in strong smartphone sales. … In CEMA, quarterly volumes breached the 70 million unit threshold for the first time, marked by an influx of Chinese and unbranded handsets. Meanwhile, smartphones experienced brisk growth due to falling prices and more Android-powered devices.

The United States … [and] Canada, the focus was on smartphones. Android-powered devices from multiple players, along with incumbent vendors RIM and Apple, pushed shipment volumes to a new record level.

In Latin America, sustained user interest in smartphones drove the market, resulting in strong results for Nokia, RIM, and Samsung as well as relative newcomer Huawei. Smartphones, as well as QWERTY-enabled feature phones, helped boost social networking and messaging, two fast-growing trends in the market. Finally, Alcatel and ZTE once again thrived in the inexpensive entry-level device market.

The numbers as have been indicated by me on the above tables are however exceptionally worrying for Nokia as the leaked internal memo (Engadget, Feb 8) by their new CEO Stephen Elop has described to the employees (emphasis is mine):

In 2008, Apple’s market share in the $300+ price range was 25 percent; by 2010 it escalated to 61 percent. They are enjoying a tremendous growth trajectory with a 78 percent earnings growth year over year in Q4 2010. Apple demonstrated that if designed well, consumers would buy a high-priced phone with a great experience and developers would build applications. They changed the game, and today, Apple owns the high-end range.

And then, there is Android. In about two years, Android created a platform that attracts application developers, service providers and hardware manufacturers. Android came in at the high-end, they are now winning the mid-range, and quickly they are going downstream to phones under €100. Google has become a gravitational force, drawing much of the industry’s innovation to its core.

Let’s not forget about the low-end price range. In 2008, MediaTek supplied complete reference designs for phone chipsets, which enabled manufacturers in the Shenzhen region of China to produce phones at an unbelievable pace. By some accounts, this ecosystem now produces more than one third of the phones sold globally – taking share from us in emerging markets.

While competitors poured flames on our market share, what happened at Nokia? We fell behind, we missed big trends, and we lost time. At that time, we thought we were making the right decisions; but, with the benefit of hindsight, we now find ourselves years behind.

We thought MeeGo would be a platform for winning high-end smartphones. However, at this rate, by the end of 2011, we might have only one MeeGo product in the market.

At the midrange, we have Symbian. It has proven to be non-competitive in leading markets like North America. Additionally, Symbian is proving to be an increasingly difficult environment in which to develop to meet the continuously expanding consumer requirements, leading to slowness in product development and also creating a disadvantage when we seek to take advantage of new hardware platforms. …

At the lower-end price range, Chinese OEMs are cranking out a device much faster than, as one Nokia employee said only partially in jest, “the time that it takes us to polish a PowerPoint presentation.” They are fast, they are cheap, and they are challenging us.

And the truly perplexing aspect is that we’re not even fighting with the right weapons. We are still too often trying to approach each price range on a device-to-device basis.

The battle of devices has now become a war of ecosystems, where ecosystems include not only the hardware and software of the device, but developers, applications, ecommerce, advertising, search, social applications, location-based services, unified communications and many other things. Our competitors aren’t taking our market share with devices; they are taking our market share with an entire ecosystem. This means we’re going to have to decide how we either build, catalyse or join an ecosystem.

Note that Gartner’s numbers are diufferent, as descibed in Gartner’s 77 million shanzhai mystery [Nov 26, 2010]

Radical strategy shift/reorg at Nokia

As the result of Elop’s assesment on February 11 came the news that Nokia and Microsoft announce plans for a broad strategic partnership to build a new global ecosystem [Feb 11]. The line of thought behind this decision from Nokia’s part was clearly explained a couple of days later on the Mobile World Congress 2011 on the Stephen Elop’s Nokia Press Conference at MWC [Feb 14] as (emphasis is mine):

There were three possible options for Nokia’s future, he explained. It might pursue the internal route and rely on Symbian and MeeGo to see Nokia through to regaining its mobile crown through further and faster development. Second, the company could go to Google and become another licensee of the Android platform. Third, it could become a licensee of Microsoft’s Windows Phone.

Looking at the pace and performance of Symbian and MeeGo over recent years was enough to discount the first choice. Of course, he then talked to Google and Microsoft, the only two realistic external choices.

Both companies were keen. Nokia has a massive global footprint and retains an enormous market share. Nokia was, in Stephen’s words, “suited” by both companies.

So why choose Microsoft over Google? It’s all about how it affects the mobile ecosystem.

If Nokia had gone with Google, it would have been another Android licensee and handed Google massive share. The world of mobile phones would have become a “duopoly” – Google versus Apple.

Going with Microsoft might look counter-intuitive, given the lower market share and youth of that mobile operating system.

However the point, Stephen said, was exactly that. Microsoft has everything to gain by supporting Nokia’s venture in creating devices with its operating system. Windows Phone is a challenger in the mobile space, not one of the current incumbents.

Here’s the way the deal works: Nokia pays Microsoft royalties, it gives Microsoft unprecedented reach, it also gives them access to services such as Maps. Nokia’s hardware expertise creates devices that truly let the Microsoft’s new OS shine.

In return, Nokia gets a substantial reduction in its operating expenses; it gains a range of services to enrich its smartphone offering. There’s a new revenue stream for Nokia in the form of mobile advertising. It gets marketing support with a value of billions of dollars.

The real point is that there’s a co-dependency between Nokia and Microsoft – both partners need the other to fully succeed. That’s part of what makes it the right choice.

The other part of this is about new ecosystems. There are two flourishing apps and services ecosystems currently, Apple’s and Google’s. The combination of Nokia and Microsoft creates a third choice: that’s good news for consumers and good news for the whole of the mobile industry. More choice and more competition drives everything forward.

That means a complete overhaul of Nokia businesses which is best described in the Nokia provides financial targets and forecasts linked to new strategy [Feb 11] as (emphasis is mine):

Due to the initiation of Nokia’s strategic transformation on February 11, 2011, the full-year prospects for its Devices & Services business are subject to significant uncertainties, and therefore Nokia believes it is not appropriate to provide annual targets for 2011 at the present time. …

Nokia expects 2011 and 2012 to be transition years, as the company invests to build the planned winning ecosystem with Microsoft. After the transition, Nokia targets longer-term:
– Devices & Services net sales to grow faster than the market.
– Devices & Services non-IFRS* operating margin to be 10% or more.

During this two years transition there will be the following essential setup as per the Nokia outlines new strategy, introduces new leadership, operational structure [Feb 11]:

With Nokia’s planned move to Windows Phone as its primary smartphone platform, Symbian becomes a franchise platform, leveraging previous investments to harvest additional value. This strategy recognizes the opportunity to retain and transition the installed base of 200 million Symbian owners. Nokia expects to sell approximately 150 million more Symbian devices in the years to come.

Under the new strategy, MeeGo becomes an open-source, mobile operating system project. MeeGo will place increased emphasis on longer-term market exploration of next-generation devices, platforms and user experiences. Nokia still plans to ship a MeeGo-related product later this year.

In feature phones, Nokia unveiled a renewed strategy to leverage its innovation and strength in growth markets to connect the next billion people to their first Internet and application experience.

As of April 1, Nokia will have a new company structure, which features two distinct business units: Smart Devices and Mobile Phones. They will focus on Nokia’s key business areas: high-end smartphones and mass-market mobile phones.  Each unit will have profit-and-loss responsibility and end-to-end accountability for the full consumer experience, including product development, product management and product marketing.

Smart Devices will be responsible for building Nokia’s leadership in smartphones and will be led by Jo Harlow [she is a 49 years old American marketing executive who joined Nokia in 2003 as VP of North America Mobile Phones Marketing, then responsible for the same just globally as a SVP, then a few device specific roles like Symbian smartphones and finally appointed to her smartphones releated role in July 2010, before the arrival of Elop]. The following sub-units now in Mobile Solutions will move under Smart Devices:
– Symbian Smartphones
– MeeGo Computers
– Strategic Business Operations

To support the planned new partnership with Microsoft, Smart Devices will be responsible for creating a winning Windows Phone portfolio.

Mobile Phones will drive Nokia’s “web for the next billion” strategy [i.e. the feature phones as mentioned above]. Mobile Phones will leverage its innovation and strength in growth markets to connect the next billion people and bring them affordable access to the Internet and applications. The Mobile Phones unit will be led by Mary McDowell [she is a 46 years old American computer industry executive who joined Nokia in 2004 as an executive VP and GM of Enterprise Solutions, then leading the Corporate Development unit from 2008 until assuming her current role in July 2010, before the arrival of Elop].

Services and Developer Experience will be responsible for Nokia’s global services portfolio [i.e. location, messaging, entertainment and context-based services], developer offering, developer relations and integration of partner service offerings. Tero Ojanpera will lead the Services and Developer Experience unit in an acting capacity. [46 years old Tero Ojanpera has been with Nokia along his full carrier which started in research. He is said to be an oustanding radio engineer back then. In 2003-2004, he headed the Nokia Research Center, and was appointed chief strategy officer a year later. From 2006, Tero served as chief technology officer, responsible for corporate and technology strategy, strategic alliances and partnerships, research and intellectual property rights. He has been a member of the Nokia Leadership Team since 2005, and was appointed to his current position in 2009.]

NAVTEQ, an integral part of Nokia’s location and advertising business, will be headed by Larry Kaplan, and continue as a separate reporting entity.

Design, responsible for Nokia product and user experience design, will be led by Marko Ahtisaari. [Although not a member of the Leadership Team he is an equally important person on the new operational structure. Marko Ahtisaari re-joined Nokia in September 2009 to head the Design team within the new Solutions Unit and then becoming SVP Design and User Experience. Before he was the CEO and co-founder of Dopplr, the online social atlas for smart travel acquired simultaneously by Nokia. In 2006-2008, he was the Head of Brand & Design at Blyk, the free mobile service for young people. Previously, he worked at Nokia as Director of Design Strategy and held management positions in corporate strategy and venturing since 2002. In 1999-2001, he built and led the mobile practice at digital services company Satama.]

[as noted by ArcticStartup [Sept 29, 2009]: “Last time he stayed almost two years with the Finnish mobile phone giant pulling the Design unit from individual separate pieces into a well functioning shop before leaving in August 2006 to Blyk as a Head of Brand & Design.”]

Note that the above structure essentially means the dissolution of the previous Mobile Solutions unit with dropping the mobile computers focus for the next two years (just retained with MeeGo for longer term) as well as the focus on the “world-class suite of internet services under the Ovi brand” which is now moved into a joint services and developers unit responsibility. The previous structure was as follows:

Structure

July 1, 2010

Our organizational structure is designed to position us for a world where the mobile device, the Internet and the computer are fusing together.

Mobile Solutions is responsible for developing and managing our portfolio of smartphones and mobile computers. The team is also busy developing a world-class suite of internet services under the Ovi brand, with a strong focus on maps and navigation, music, messaging and media. Mobile Phones is responsible for developing and managing our portfolio of affordable mobile phones, as well as a range of services that people can access with them. Markets manages our supply chains, sales channels, brand and marketing activities, and is responsible for delivering our mobile solutions and mobile phones to the market.

Nokia Siemens Networks, jointly owned by Nokia and Siemens, provides wireless and fixed network infrastructure, communications and networks service platforms, as well as professional services to operators and service providers.

NAVTEQ is a leading provider of comprehensive digital map data and related location-based content and services for automotive navigation systems, mobile navigation devices, Internet-based mapping applications, and government and business solutions.

White-box (Shanzhai) vendors

While Nokia and Microsoft are talking about the need to have a third smartphone ecosystem (in addition to Apple’s and Google/Android’s) the fact is that within the Google/Android camp there is an absolutely threatening ecosystem in itself which is generally called the China-based white-box vendors. The Special Report: China’s white-box handset market (Jul 26) from Digitimes Research (Taiwan) describing this as follows (emphasis is mine):

In China, there is a specific form of business operation that has come to be called the white-box industry mostly targeting the vast low-income segment of the market. The white-box supply chain is a production system centered in southern China, with product designs relying on core component suppliers and with a supply chain working on a division of labor, high flexibility and a minimal amount of assets.China's white-box handset market

In more details this kind of model is described in Digitimes Research analyzes China white-box handset market in new report [Aug 10] (emphasis is mine):

While the mainstream business model for manufacturing and distributing mobile handsets remains leveraging the OBM/ODM/OEM/EMS model, a whole new paradigm has developed within China’s domestic market, according to a new report from Digitimes Research.

The local China-based industry called “Shanzhai,” but translated as “white box,” is based on small-scale or underground factories whose products are seldom sold through regular sales channels, but the scale of the market now rivals that of global top-10 brands or major Chinese brands in the domestic China market, Digitimes Research pointed out. The “white-box” industry currently accounts for more than 100 million handset shipments, and some players in the market, such as K-Touch (Beijing Tianyu Communication Equipment) and Gionee have made the leap to become recognized brands.

While accounting for about one-third of domestic handset shipments, the white-box industry in China has been working under the acquiescence, and even active encouragement in some cases, of the government and is proclaimed by its proponents as representing the success of China’s homegrown innovation and enterprise. The Digitimes Research special report examines the difference between the traditional ODM supply chain and the virtual organization used by white-box players, and highlights the advantages of the white-box business model.

Link: China’s white-box handset market

Next we should clearly understand What drove the shanzhai success? [Shanzai.com, Nov 13, 2009]:

Shanzhai players have gained a strong foothold in the local market in the last two years [i.e. in 2008 and 2009]. Although they started off with copied brands, nearly one third of them are now [i.e. Nov’09] becoming more and more innovative in their products.

… Five years back, none of us had even heard of shanzhai. Copy or fake products existed only in the grey market.

… why are we instantly attracted to shanzhai products?

Price is surely one major factor. While you get a shanzhaid version of an Apple iPhone in China for around USD 70, the real iPhone will cost you 5 to 7 times more. The shanzhai have given a new ray of hope to the lower middle classes to flaunt the features of branded phones.

… While established brands are cautious about trying something new, the shanzhai design their products according to customer demand. Netbooks with CD drives and dual SIM phones with TV streaming are common examples of shanzhai designing customized products for identified consumers.

The shanzhai option is also often the first way of getting a new product … er well, a version of a new model anyway, something Kiran [from shanzai.com] pointed out, “Since they are acutely aware of the need to cater to local needs, they have the inherent capability to produce a slew of new devices with the latest technology every one to two months. This innovative, flexible and cheap market strategy poses a huge challenge to legal branded manufacturers. For the branded manufactures, the gestation period of a new product is much longer than the shanzhai counterparts. If a new product is designed it takes approximately 6 months to release into the market as it passes through different safety and regulatory measures. By the time it enters the market, it is already out of date due to the early availability of its clone products devised by the shanzhai bandits.”

The shanzhai are also rebelling against established brands by promoting open source platforms, which cost less and offer similar features of other platforms. … The actual manufacturing cost of a phone is only 20% of the retail price of a phone; the rest is spent in designing, marketing, tax, regulatory checks, safety tests and post sales services. Shanzhai products save the funds spent in TV advertising and other marketing activities.

While price, specs and rebellion against established brands has contributed to the success of the shanzhai business model, another major factor responsible for the sudden boom of the shanzhai is the economic downturn of 2007-09. Although the impact of the financial crisis is less evident in countries like China and India, it has paralyzed foreign investments to a large extent. The recession has actually affected the spending power of people, so a person thinks twice even before making a small investment like buying a new phone. So when offered similar features at a much lower price, many people go for the cheaper option where they once might have stuck loyally with a big brand.

Shanzhai distribution channels work quite effectively and actually quite speedily too. In Shenzhen, a small group of workers have their own factories with R&D, software development and hardware manufacturing facilities. Go to any shop in Shenzhen in the morning and tell them the features you want in your mobile phone and collect your phone in the evening! Shanzhai prefers its marketing through its local channels; Chinese people also prefer their local brands over international products. If we take a look at tech building companies in countries like India and Brazil, the shanzhai lead there too. They export the hardware parts to save export duties, and then the completed products can be assembled easily in these countries.

[Another factor – in fact a major “catalyst type” force – is mentioned in the article as “the emergence of local silicon players like MediaTek” which – quite naturally – will be discussed in the next section separately: see MediaTek as the catalyst of the white-board ecosystem below.]

The attached diagramm (to the first news item above) of mainland China’s home market growth is clearly showing that there is essentially no forecasted growth for 2011 so there is no other way for the white-box vendors as enter the international market even more aggressively than before. Digitimes even reported that White-box handset makers gearing up smartphone and 3G handset production, MediaTek to benefit [Dec 3, 2010] also indicating the Chineses government increased support for that (emphasis is mine):

White-box handset makers in China are gearing up their production of in-house designed smartphones and 3G handsets, a trend which will benefit Taiwan-based IC design house MediaTek. China’s white-box handset industry in 2010, has begun to place more emphasis on upgrading specifications and added value to enter the high-end segment, and has allocated more resources on development of intellectual property.

Even the China government has voiced its support for the white-box industry. Yang Xueshan, Deputy Minister of the Ministry of Industry and Information Technology (MIIT), recently said that the government will support the white-box business model as long as there is no infringement of IP.

Yang pointed out that from imitation to innovation is a process white-box handset makers have to go through, citing China-based telecom equipment maker Huawei Technologies as a success story. Huawei’s foray into the handset sector began with low-cost products and the company now has research and development capability, he said.

Supporting the white-box business model, given that no patents are infringed, is a good way to protect intellectual property rights as well as provide the most cost-effective products to consumers, Yang added.

Two months later came out the news that Shipments of sub-US$150 Android handsets to reach 20-25 million units in 2011, says Digitimes Research [Jan 28] (emphasis is mine):

Shipments of entry-level Android handsets with a price tag of below US$150 are likely to reach 20-25 million units in 2011 which could affect Nokia’s performance, according to an estimate by Digitimes Research.

Shipments of sub-US$150 Android phones totaled only 2.5-3 million units in 2010, mostly shipped by China-based Huawei Technologies and ZTE. However, the number of sub-US$150 Android phones is likely to increase by 8-10 fold in 2011 resulting a substantial increase in shipments, Digitimes Research said.

Google’s efforts to push Android phones to emerging markets, strong demand from markets in China, India, South America, Southeast Asia, Africa, and Russia, and a shift of telecom carriers in mature markets from feature phones to smartphones all work to stir up shipments of Android phones.

In addition to Huawei, ZTE, white-box handset makers in China and Taiwan-based ODMs, Samsung Electronics, LG Electronics and Motorola are also likely to step up their presence in the entry-level Android segment, Digitimes Research said.

The increasing popularity of low-cost Android phones is expected to have a major impact on Symbian-based smartphones as Nokia is projecting merely a 10% sales growth rate for its smartphones, far below the 50% growth projected for the segment, Digitimes Research noted.

Two weeks later even more threating news were coming stating that China-based white-box vendors to offer below US$100 Android smartphones for emerging markets [Feb 9] (emphasis is mine):

China-based vendors are poised to offer Android smartphones priced at below US$100 for sale in China and other emerging markets including India, Indonesia and Brazil [so called BRIC] in 2011, according to Taiwan-based handset and component makers.

Such low-price Android smartphones are equipped with basic functions including dual-mode or dual-SIM, Bluetooth, Wi-Fi, FM radio, trackball and G-sensors, with other functions such as mobile TV and GPS available for additional choice, the sources noted.

The low price is based on non-customized turnkey solutions featuring the integration of chips, operating systems, software and user interfaces, the sources pointed out. Taiwan-based IC design houses MediaTek and Infomax Communication have offered such solutions at less than US$100 and US$80-90 respectively, while China-based Leadcore Technology and Fuzhou Rockchip Electronics have done so at US$80-105 and US$90-105 respectively, the sources indicated. Qualcomm, ST-Ericsson and Broadcom have also offered such solutions, but mostly for 3G and priced higher at US$100-120, the sources noted.

In an additional news it was indicated that FOB price of turnkey solutions for Android smartphones now under US$120, says Digitimes Research [Feb 9] (emphasis is mine):

FOB prices of turnkey chip solutions for Android-based smartphones are now under US$120, according to Digitimes Research.

Taiwan-based MediaTek and Infomax Communications are offering Android chip solutions at below US$100 and around US$80-90, respectively. China’s Leadcore Technology and Rockchip Electronics are quoting at US$80-90 and US$80-105, respectively. Even international players such as Qualcomm, ST-Ericsson and Broadcom have joined in the battle with solutions priced between US$100-120.

International chip providers are outsourcing their solution designs to handset designers and manufacturers. Qualcomm is working with Gsmart [Taiwan] and Thundersoft, [HQ in Beijing, branch in Tokyo, support centre in Seoul and Taipei], Marvell has partnered with Zoom Technologies [HQ in Beijing, mainly EMS for OEMs + ODM + own brand sales via Hong Kong, ownership via Delaware-BVI chain of holdings], Broadcom with Yuhua [rather Yuhua TelTech, an ODM in Shanghai, with ~$40M international ODM sales] and ST-Ericsson with Beijing Xuntong Antian (transliterated).

More background information:
Cheap chips off the old block [China Daily, Oct 31, 2008]
Decoding Shan Zhai Ji (Bandit cell phone) – the opposite side of brand chasing [Nov 17, 2008]
The phenomenon of Shan Zhai products and culture [Noc 19, 2008]
‘Shanzhai’: Faking it for money or fun? [China Daily, Dec 9, 2008]
MIIT: GSM Association Issues IMEI Numbers To Chinese Mobile Phones [Dec 25, 2008]
Copycat “Shanzhai” culture takes on life of its own [Xinhua, Dec 30, 2008]
Chinese Mobile Phones Lacking IMEI Numbers Face Death In India [April 7, 2009]
Mountain village handsets storm market [China Economic Net, July 19, 2009]
Experience the shanzhai market: video [Oct 6, 2009]

China’s ‘Bandit’ Cell Phones – The High-Tech Golden Egg with ‘Taiwan Inside’ [Oct 6, 2009]
India Starts To Block Chinese-made “Shanzai” Mobile Phones Without IMEI [Dec 3, 2009]
Chinese Shanzhai Mobile Manufacturers Will Move Production To India [Feb 23, 2010]
Egypt Will Ban Chinese Shanzai Mobile Phones [June 28, 2010]
Shanzhai grew by 43.6% in 2010, production cycle also cut by 25% [Shanzai.com, Feb 3, 2011]

MediaTek as the catalyst of the white-board ecosystem

Update: MediaTek to Launch Ultra Cheap Handset Chip Against Spreadtrum Communications [March 21. 2011.] (emphasis is mine)

MedaiTek Inc. has recently announced plans to introduce an ultra low cost multimedia system-on-chip for mobile handsets in a bid to rival a competing solution Spreadtrum Communications Inc. of mainland China will roll out in April.

According to MediaTek, the upcoming handset solution, codenamed as MT6252, supports serial flash memory and is cost efficient for handset makers as it uses lesser passive devices and smaller printed circuit board than existing solutions. Also, the MediaTek solution supports four-SIM, four-standby mobile phones, convincing the mainland`s home-grown handset makers including Gionee Communications Equipment, Ragentek Communication Technology Co., Ltd. and Leatek Technologies International Co., Ltd. to support it.

MT6252 is also designed to replace MediaTek MT6251, a provisional low cost solution to 2.5G mobile phone. Industry executives pointed out that the SOC-based MT6252 is crucial to whether or not MediaTek can dominate the mainland`s market for 2G chips.

The mainland`s market for low-end handset chips had been controlled by Infineon Technologies AG of Germany with its ULC2/3 solutions until the end of last year, when Intel phased out of the low-end business after acquiring Infineon`s handset chip asset.

The low-priced solution Spreadtrum will launch in April is named SC6610, which incorporates embedded SRAM into it.

Here it is worth to start with a historical detour of Shanzhai.  Quoting from MediaTek rides high in bandit territory [May 16, 2010] article (emphasis is mine):

MediaTek, which originally focused on making chips for DVD players [see: MediaTek Announces the MT1389S-DVD-Player single chip. To enable the best digital media experience [March 26, 2007]], switched to designing mobile-phone chips after recognizing that cheap locally made phones from China’s Ningbo Bird and DBTel of Taiwan could not match the functionality of Nokia and Motorola, which 10 years ago dominated the China mobile handset market.

MediaTek’s response was to create “complete solutions” for mobile phones – the so-called “system-on-a chip”. It integrated the handset’s motherboard with other major components and the software for practically any desired feature onto a single circuit board. Most important, the products were extremely cheap. According to industry insiders, a set of such systems sells for as little as 100 yuan (US$12.50) to 200 yuan.

Practically all that is then required to produce a mobile handset is the addition of a battery and a casing to hold MediaTek’s “semi-product”. The combination of innovative Taiwan technology and mainland China’s low-cost mass manufacturing makes such handsets available at less than a third of the price of branded rivals.

“MediaTek revolutionized how cell-phone handsets are made in China,” said Zhang, formerly a general manager of Motorola’s Mobile Software Solutions Group for Asia-Pacific and now president of Yostar.net. “It makes it possible for toy factories to manufacture mobile phones.”

Many of these phones are imitations of major branded products, with similar (or the exact) functionality and style. But a lot of innovative handsets are also produced – mobile phones with seven speakers, for students to reproduce dance floor or boom-box music environments; handsets with four bright LED lights to serve as a cell phone and a powerful flashlight. For senior citizens, devices have big displays, big keys and a loud sound. For people who work outside in the fields, there are handsets with longer battery life. There are handsets with two sim-card slots for people traveling between different cities – allowing use of, for example, both a Hong Kong number and a Beijing number. Some are even equipped with a reader to check whether cash is counterfeit. Others look like a pack of cigarettes, or have a built-in laser pointer, a global positioning system, or a TV signal receiver.

The adaptability of small manufacturers also means that whatever is the latest trend – a new iPhone design, for example – can be almost immediately matched by a bandit version.

Then what happened is that after purchasing Analog Devices’ cellular radio and baseband shipset operations [Sept 10, 2007], completed next January [Jan 11, 2008], and the company report that its approach to providing a total solution for customers resulted in a total shipment of mobile solution chipsets over 150 million in volume in 2007 [June 8, 2008] followed an even more effective step of introducing its first multimedia-rich GSM/GPRS single-chip [Feb 12, 2009] (emphasis is mine):

MediaTek, Inc., the leading fabless semiconductors company for wireless communications and digital multimedia solutions, today announced that its first GSM/GPRS single chip, the MT6253, has been adopted in mobile phones on the GSM/GPRS network. Integrating all essential electronic components, including DBB, ABB, power management unit and RF transceiver onto a single chip, the MT6253 can further reduce the materials costs of a complete mobile phone. Equipped with strong peripheral supports including camera, high speed USB and Class D audio AMP, MediaTek’s MT6253 is the most highly integrated chip in the market for mobile communication.

“Bringing together advanced multimedia technology, efficient manufacturing, system-level design tools and real-time support, MediaTek’s MT6253 sets a new standard for cellular SoCs ”, said JiChang Hsu, Executive Vice President of MediaTek. “To better address the needs of emerging market, where handset manufacturers care cost-performance ratio more than ultra low cost, MT6253 provides perceptual peripheral support to bring down costs and reduce space requirements greatly.”

In addition to MT6253, MediaTek also brings its multimedia expertise to its smart phone solutions. Supporting LCD resolution up to WVGA, MediaTek’s first smart phone solution – MT6516 is the first solution for smart phones in the market which is able to process MPEG-2 transport stream decoding without any co-processor. MediaTek’s MT6516 features multiple video codec to enable MDTV applications, including DVB-T, CMMB and DVB-H, all of which can be easily implemented without multimedia co-processor.

This was followed by the advanced single-chip all-in-one GPS solution, MT3329 [May 25, 2009], by three second generation IEEE 802.16e WiMAX chips, the MT7110 Series [June 1, 2009] which was found by an external benchmark to outperform its peer products [July 28, 2010] and thus laying a foundation towards IMT-Advanced (4G) via the WirelessMAN-Advanced route (see my earlier post: IMT-Advanced (4G) for the next-generations of interactive mobile services, China is triumphant [Oct 24, 2010]), as well as both types of LTE Advanced. It is said to be possible to base all these advanced protocols on the same chipset construction. Thus MediaTek has already all the foundations to continue its leadership as the Mobile Internet is going to be faster and faster every year, as well as well more and more accessible to everybody in this decade.

Then came the news that MediaTek to Obtain WCDMA License from Qualcomm [Oct 15, 2009] (emphasis is mine):

Taiwanese wireless semiconductor manufacturer MediaTek has announced that it will soon receive a license to produce Qualcomm’s WCDMA chipset.

Once the license agreement is finalized, MediaTek’s first WCDMA 3G chipset, the MT6268, is aiming for release late this year, with hopes of becoming a major earner for the Taiwanese manufacturer next year. Qualcomm will receive a 6% licensing fee on every 3G chipset produced by MediaTek [the arrangement obtained later was different, see below].

MediaTek says that its license agreement discussion with Qualcomm has entered its final stages. The broad framework and provisions are already agreed upon by both sides, with only minor technical issues still under discussion.

Because Qualcomm still holds the patent on WCDMA technology, any manufacturer that has a product involving WCDMA technology or wishes to produce WCDMA chips must first obtain a license from Qualcomm.

Although MediaTek has yet to officially obtain a license from Qualcomm, its MT6268 3G chipset has already entered small-scale test production by Taiwan Semiconductor Manufacturing Company (TSMC). The test production, which mainly utilizes a 65nm manufacturing process, has so far met with success, and full production can begin immediately upon receipt of the license agreement.

The agreement has been reached as per MediaTek and Qualcomm Enter Into Patent Arrangement [Nov 20, 2009]:

MediaTek’s customers do not receive rights to any of Qualcomm’s patents and such customers will need to obtain a separate license from Qualcomm in order to receive rights to any of Qualcomm’s patents. Qualcomm’s customers do not receive rights to any of MediaTek’s patents and such customers will need to obtain a separate license from MediaTek in order to receive rights to any of MediaTek\’s patents. The remainder of the terms of the arrangement are confidential.

This allowed MediaTek reaching out to 3G market with Multimedia Phone Solution MT6268 [Dec 10, 2010] as far as in India:

Grant Kuo, MD, MediaTek [India] said, “With MT6268 multimedia solution, MediaTek has started reaching out to 3G market. The 3G strategic layout of MediaTek will be significant for the industrialization and the future moment of the 3G market in India.”

With high level of integration, MT6268 which supports 3G is targeted for the feature-rich multimedia market. MT6268 offers key features such as support for Video Calling, 5Mpixel camera, High GPRS speed, integrated BT, Dual SIM and full html browser. In addition to it, MT6268 is intended to address the need of embedded devices for low power with its patented power saving technology. These chipset solutions are intended to revolutionalize the market and take the industry to the next level of mass market adoption.

On this year’s Mobile World Congress – quite naturally – MediaTek announced the MT6573 platform for mainstream 3G smartphones [Feb 11] (emphasis is mine):

The MT6573 platform incorporates a highly-integrated, core chipset, a full range of connectivity solutions and supports the latest versions of the popular AndroidTM operating system. The MT6573 platform supports a quad-band [i.e.: all 4 GSM bands, the 850 and 1900 MHz bands – used in Americas – and 900/1800, used elsewhere], 3G/HSPA modem with mobile broadband rates of 7.2Mbps in the downlink and 5.76 Mbps uplink, as well as quad-band EDGE. The integrated applications processing system combines a 650 MHz dedicated ARM®11subsystem for the Android operating system; support for advanced 3D graphics; multi-format video capture and playback up to FWVGA 30fps; high-resolution camera support to 8MP and a high-end FWVGA, touch-screen display. The platform chipset is completed with a full range of connectivity solutions for Bluetooth, WiFi, GPS, FM radio and Mobile TV from MediaTek.

The core chipset of the MT6573 integrates the modem, applications, multimedia subsystem and all necessary power management functions into a single SOC. Combined with a single-chip, multi-mode, multi-band transceiver, it enables extremely small footprints that allow for smaller, more innovative industrial designs and form-factors. Additionally, the integrated 3D graphics capability brings gaming and user interface capabilities that were previously available only to high-end smartphones. Finally, the platform provides advanced camera and multimedia features that include smile and face detection, panorama and burst shot, as well as high-resolution video capture and playback. The platform can be delivered as a full system solution consisting of hardware reference design and fully-tested, compliant software suite that can improve design efficiency and speed time to market for customers in the rapidly changing smartphone market.

… The MT6573 platform is currently sampling to lead customers and will be in mass-production by mid 2011.

Back to the MediaTek rides high in bandit territory [May 16, 2010] article (emphasis is mine):

Big-name Chinese phone-makers such as TCL, Lenovo and Konka are now using MediaTek chips for their products, followed more recently by foreign brands like Motorola and Sharp for their low-end products.

The local Chinese phone-makers made huge losses in 2005-06 due to the rise of shanzhai ji,” said Knock of JPMorgan, to the extent that the top 20 local Chinese brands have used MediaTek chips for their phones. “The mobile phone companies have outsourced their R&D [research and development] to MediaTek and now focus on marketing and manufacturing only.”

In 2008-09, US giant Motorola restructured its global operation, significantly cutting back its R&D department. “That is when Motorola started to use MediaTek chips,” said Knock, “In this way, Motorola only needs to keep a research team for cutting-edge technology, leaving MediaTek to work on the more mature or mainstream technology research.”

MediaTek has now captured about 30-40% of the branded handset market in China, estimates Knock. Moreover, demand for affordable phones in places such as India and Latin America has made it one of the top five global suppliers of all handset chips. Last year, only about half of the 360 million phone mobile chips made by MediaTek were shipped to China, with the remainder going to the rest of the world.

Now MediaTek Aims to become the Best Mobile Chipset Partner of Indian Mobile Manufacturers [Jan 27] according to MediaTek India (emphasis is mine):

We do believe that our latest single chipset solution- MT6253, and a customized Android platform for the India market that features many extremely popular applications will help sustain our leadership in the Indian market and the introduction of some of our new 3G solutions will help penetrate new segments”, says Mr. Grant Kuo, MD MediaTek India.

According to a recent Gartner survey, major handset manufacturers view India as a very attractive investment because it is projected to have the most rapid growth of mobile users worldwide: 660 million mobile users in India by end of 2010. This number is expected to cross the one billion mark by 2014 according to global consultancy firm PwC. Rural India is expected to drive this growth in mobile adoption including 3G handsets. PwC also predicts the 3G subscriber base to grow to around 107 million by 2015 out of which 24% will be rural subscribers.

At the forefront of this growth in rural India will be low cost mobile handsets. According to the Voice&Data100 Indian Telecom Survey, low cost Indian brands like Micromax, Spice and Karbonn strengthened their presence in the market in 2009-10, at the cost of well established MNC’s.

“India is a high potential market for our company. The consumers in semi urban and rural areas, who have been the traditional users of low cost handsets, now demand high end features at affordable rates. MediaTek has a proven track record worldwide and aims to leverage this to become the preferred chipset provider to indigenous Indian handset makers, thereby bringing high end applications within the reach of the Indian masses. We are planning to step up our marketing initiatives in India to create awareness about our products and enhance our brand value in the Indian market”, adds Mr. Arun Gupta, Business Development Director MediaTek India.

MediaTek’s technology and product innovation has also received a lot of recognition and awards from media and institutions around the world. In 2010, MediaTek is ranked top 10 among Asia’s 200 most-admired companies by “The Wall Street Journal” and ranked No. 12 among Global Top 100 High-Tech Companies by “Bloomberg Business Week. In addition, its highly integrated mobile single chip MT6253 has been honored with the EDN innovation award. In 2010 MediaTek also had five publications in the distinguished International Solid State Circuits Conference – highest record in the Taiwan semiconductor industry. MediaTek is also honored with the “Excellence in Corporate Social Responsibility Top 50” award every year since 2007 by Taiwan’s most prestigious Common Wealth Magazine.

And for this local manufacturers penetration strategy MediaTek has all the prerequisites via the earlier Shanzhai’s route.

Meanwhile International handset vendors align with Taiwan and China makers to take on local competition in emerging markets [June 24, 2010] (emphasis is mine) and by doing this they are essentially following Motorola’s route:

International handset brand vendors will likely step up cooperation with manufacturers in Taiwan and China to compete more effectively with local vendors in emerging markets that are sourcing white-box models and selling under their own brands.

India’s Micromax, Indonesia’s Nexian and i-Mobile of Thailand are some of the domestic brand vendors that have taken down global giants at home with current market share rankings at third, second and fourth, respectively, in their countries.

Their business models are sourcing handsets from white-box manufacturers to target the entry-level segment as well as niche opportunities that were neglected by larger international vendors, according to sources from Taiwan-based handset makers.

The low-end strategy is certainly effective since consumers in emerging regions are typically more price sensitive. For niche markets, Micromax introduced phones with long standby time of 30 days and models with dual-card, dual-band and dual-standby functionalities. Nexian heavily promoted devices with dual-card and dual-standby features and QWERTY keypads. i-Mobile launched dual-card and dual-standby phones and models with analog-TV features.

Besides entry-level products, local vendors have rolled out smartphones and begun to expand to markets overseas, the sources said.

Most of the local vendors are also well-known distributors with strong ties within domestic sales channels and are responsible for their own after-sale services, the sources pointed out. This solves two major issues white-box critics often bring up – low brand recognition and poor service. Combined with protectionism policies and consumer preferences for home-made brands, the local players still have plenty of room for growth.

Recently, several brand vendors ranked in the top-five globally have contacted manufacturers in Taiwan and China-based handset designers to outsource new models that are comparable in both features and price to those sold by local vendors, said the sources.

Taiwan handset manufacturers have previously produced for local players in emerging markets but gradually gave up orders to white-box makers, since those clients never provided long-term order commitment and often shopped around between seven to eight contract manufactures, the sources noted.

And just now came the news that MediaTek reportedly to secure new orders from Nokia and Samsung for 2011 [Feb 17] (emphasis is mine):

IC design house MediaTek will likely attract new orders for entry-level and mid-range handsets from Nokia and Samsung Electronics in 2011, in addition to its existing ones from Motorola and LG Electronics (LGE), according to market sources.

New contracts, as well as continued-strong demand from China’s white-box handset market, may assist MediaTek to fulfill its handset-chip shipment goal of 550 million units for 2011, the sources said.

Having grown its market share in China’s white-box handset market with 2.5G solutions, MediaTek finds it hard to gain a further larger presence in the white-box handset market. As a newcomer to the 3G and smartphone chip segment, MediaTek is facing strong competition from international chipset companies. Meanwhile, price cuts initiated by local China-based rivals have squeezed its 2.5G market share.

MediaTek now stands a chance of breaking into the supply chains of more brand-name handset companies in 2011, the sources pointed out. MediaTek is likely to grab orders mainly for entry-level and mid-range devices from four out of the global top-five handset vendors, the sources indicated. The orders could boost MediaTek’s handset-IC shipments to 600 million units in 2011, the sources said.

In addition, the sources pointed out that MediaTek is preparing the launch of its next-generation 2.5G single-chip solution, which will be built using 40nm process technology with more features integrated in the compact all-in-one package.

MediaTek's MT6253 - MT6516 - MT6268

Note that in 4Q10 at least one mainland China rival started to use heavily MediaTek’s major foundry – albeit at 65nm not the 40nm MediaTek is aiming for – as reported by TSMC to get 60% more orders from Spreadtrum in 4Q10 [Oct 15, 2010]. In fact MediaTek had two make two pricecuts in the second half of 2010 and smartphone chipsets MT6516 and MT6268 now down to under US$10 [Dec 3, 2010] (that price is without the WCDMA license which should be additionally paid to Qualcomm, see above). There is more information about that came in MediaTek to take on MStar with 40nm single-chip 2.5G solutions [Feb 17]:

MediaTek will take on rival MStar Semiconductor in the 2.5G handset chipset segment with single-chip solutions built using 40nm process technology soon, according to industry sources.

MediaTek aims to take back the service privilege in the 2.5G chipset sector with advanced manufacturing processes after MStar managed to boost its share in the segment in the China market from the original 5-10% to almost 30% in the second half of 2010, the sources noted.

MediaTek’s next-generation 40nm parts will integrate baseband, RF, Bluetooth, power amplifier and power management ICs into an all-in-one package, said the sources. In comparison, MStar’s 40nm chips, which are still in development, will come with only baseband and RF chips.

Having cut its chip prices drastically in the past few months to stop MStar from further denting its share in the 2.5G segment, MediaTek’s strategy to launch parts made with advanced technology will also force MStar to channel its newly earned profits into a technology race, the sources asserted.

Note: MStar is a Taiwan-based competitor of MediaTek as per MediaTek to see challenges in China market [Sept 9, 2009]

In this way the white-board ecosystem will expand not only outside mainlad China but also to the international brand vendors, and MediaTek will likely remain the major catalyst of that peculiar ecosystem for the years to come.

ZTE et al.

@ MWC: ZTE Goes For The High End With The Skate [Feb 14, 2011]:

ZTE, the Chinese handset and wireless equipment maker, epitomises a certain kind of new entrant in the mobile industry: very determined, very cheap, and very much on the rise. At an overheated stand crowded with competitors, partners and non-partisan observers checking out ZTE’s newest devices — led by the Skate Android-based smartphone—I retreated to a quiet, air-conditioned room with Zhang Xiaohong, ZTE’s VP for handsets, to talk cannibalization, me-too Android competitors and more.

North America is our fastest-growing market. ZTE’s home market of China, where it ships devices with the three major operators China Unicom, China Mobile and China Telecom, is the company’s single largest market. But North America, shays Zhang is growing the fastest. Shipments in that region went up four-fold in the last year, with ZTE signing distribution deals with the U.S.‘s four major operators (selling both handsets and data cards for mobile broadband). Europe also grew—by a rate of 100 percent, with notable increases also in Japan, Australia, Russia and Latin America.

ZTE has already made a crucial shift in the last year to exporting more devices than it sells domestically. Zhang says the current rate is 35:65. If you take IDC’s recent number that indicates that ZTE shipped 60 million units in 2010, that works out to 21 million in China and another 39 million everywhere else.

Is it all about the cheapest price? No, she says. ZTE has disrupted the market with devices like the Blade (which sold for under $200), but it looks like it is now trying to leverage that market share to expand into the more premium segment against higher-end competitors like HTC and Apple:

“We will continue to focus on low-cost solutions for developing and developed markets, especially developing markets” she says. “But it’s also about new devices like the Skate.” No prices have yet been revealed for the Skate, which features a 4.3-inch screen and runs using Android 2.3—but the device, when I tried it out, seemed a little slow and jerky in its graphics. The specs say it runs on a 800MHz processor, compared to some of the newer devices from other Android OEMs built on 1GHz chips. The device is set to debut in May 2011.

Who is your biggest competitor? No straight answer on this one. Zhang says ZTE splits their competitors into two segments: “established” companies like Nokia (NYSE: NOK) and Samsung and “new ones” like HTC and Apple (NSDQ: AAPL). “ZTE can produce devices that compete with both,” she says.

What makes you different from other Android device makers? Ultimately a lot of these devices start looking more or less the same as each other, I say.

We are good at customisation, according to different cultures and customs. We can differentiate.” ZTE says that it can and has developed devices for specific operators, making them unique in the marketplace. It also looks like ZTE is looking to take customisation to the software level, too: the company launched a new app store this week, to deliver services that complement those in the Android Market.

One other key area, says Zhang, is that, unlike a lot of the other Android OEMs, ZTE also sells network equipment: this means that ZTE can sell “total solutions”—at very competitive prices. She says that ZTE has such agreements with 28 of the top 30 operators worldwide.

What do you think of the Nokia/Microsoft (NSDQ: MSFT) deal, and do you have any plans for MeeGo? For now, Nokia’s choice to work on Windows Mobile phones “means the future does not look good for MeeGo,” she says. “Last week’s news may have been the last straw or it, and we have no plans to develop on it for now. But whether going with Microsoft will give Nokia advantages over the long term remains to be seen.”

http://www.shanzai.com/ remark on that article is that ZTE is still singing tried and true Shanzhai tune: “We are good at customisation” [Feb 11, 2011]

ZTE is a Shanzhai success story. Starting out small and then big in China, ZTE is now doing well in North America and is expected to increase market share there even more this year. When their VP was asked this week, why they have been so successful, their Shanzhai their Shanzhai roots showed through.

According to IDC, ZTE shipped 60 million products in 2010. Their exports were mainly to North America and also to Japan, Australia and Latin America.

Now what we have seen, time and time again, is that the successful Shanzhai make handsets that fulfill a local (rather than generalized global) market need. Sometimes that can lead to quirky products, like exchangeable solar batteries, cigarette lighters, or more practical factors like dual SIM support, etc. It turns out that even in “mainstream” North America, catering to the local audience is the key.

Zhang Xiaohong, ZTE’s VP for handsets at the Mobile World Congress said that ZTE’s success is because “We are good at customisation, according to different cultures and customs. We can differentiate”.

It’s ironic that the Shanzhai are often seen as strangers to differentiation because of the high profile of clone models, when actually it’s the Shanzhai’s adaptability that keeps their business strong.

But ZTE and Huawei are not alone. Here is another example, G’Five so far known only in India but expanding rapidly both in India and into the other parts of the world:

India Mobile Handset shipments grow 6.7%, to 101 million units in 12 Months ending June 2009 [IDC India, Oct 9, 2009]

Market intelligence firm, IDC’s India Quarterly Mobile Handsets Tracker, 2Q 2009, September 2009 release issued today states that in terms of units shipped Nokia had the largest share of 56.8%, followed by Samsung with a 7.7% share while LG stood third with a 5.4% share in the 12-month period ended June 2009.

New Vendors Make a Mark
A number of new vendors entered the India mobile handsets market in the last 12 to 18 months to carve a niche for themselves by offering feature-rich (dual SIM card, full QWERTY keyboard) and application-rich (IM enabled) mobile handsets at attractive price points. They also introduced entry-level models for the ‘price sensitive’ Indian consumer.

Figure 1: India Quarterly Mobile Handsets Market: New Vendor Shipments Growth

Source: IDC’s India Quarterly Mobile Handsets Tracker, 2Q 2009, September 2009 releasee

This development shows that even in a crowded market there is room for vendors to enter with the right product-feature-price mix.

IDC’s India quarterly mobile handsets tracker 2Q 2010 [Sept 28, 2010] (some emphasis is mine):

According to Mr. Anirban Banerjee, Associate Vice President-Research, IDC India, “In the recent quarters several new players successfully launched their own devices at significantly lower Average Selling Values (ASVs) in the price sensitive India market. Such handsets found ready acceptance amongst first time buyers, especially from small towns and villages.”

This influx of new brands led to a spurt in overall market and saw ‘emerging vendors’ corner as much as 33.2% of total India mobile handset shipments in 2Q 2010. The Finnish handset maker Nokia retained its No.1 spot with a market share of 36.3% in terms of units shipped. The Korean electronic giant Samsung retained the No. 2 position, while Chinese brand G’Five emerged as the No. 3 player.

According to IDC’s India Quarterly Mobile Handsets Tracker, 2Q 2010, September 2010 release, the number of emerging vendors in India’s burgeoning mobile handsets market grew to 35 in 2Q 2010 and they together garnered 33.2% of total shipments for the first time during the April-June 2010 quarter. This represented a manifold increase from five (5) new vendors representing a 0.9% combined share of units shipped in the January-March 2008 quarter.

During the last 6 months (January-June 2010) the top five mobile handset vendors in India were Nokia, Samsung, G’Five, Micromax and Spice.

Figure 1: India Mobile Handsets Market: New Vendor Contribution to Shipments, Q1 2008 to Q2 2010

Source: IDC India, 2010

July-September 2010 mobile phone shipments (sales) log 3.6% quarter-on-quarter growth to
cross 40 million units: ‘Emerging Vendors’ capture 41.2% combined share [IDC India, Dec 29, 2010] (emphasis is mine):

… the Finnish handset maker Nokia had the largest share of 31.5%* in terms of units shipped during 3Q 2010.
The Chinese brand G’Five emerged as No. 2 player in terms of unit shipments market share and Korean handset manufacturer Samsung stood at No. 3 in 3Q 2010.

The India mobile handsets market continued to grow in 3Q 2010 as well to record a quarter-on-quarter (3Q 2010 over 2Q 2010) growth of 3.6%* to touch 40.08 million units in the quarter, according to IDC India. The year is expected to end with total mobile handset sales of 155.9 million units.

The number of emerging vendors in India’s burgeoning mobile handsets market grew to 68 and they together garnered 41.2%* of total shipments (sales) for the first time during the July-Sep 2010 quarter.

Smartphone prices continued to drop through the year and as competition increased, devices were made available by vendors at successively lower price points. So, while 80%* of total India smartphone sales were below the ASV (Average Sales Value) of Rs. 18,000 in 2Q 2010, this proportion increased to 90%* in 3Q 2010.

Top G’Five mobile phones in India [Jan 13, 2011] (emphasis is mine)

Which are the top two cell phone brands today in India in terms of shipment volumes? Nokia and Samsung, many of us would like to think, right? Or maybe Sony…or LG…or Micromax which has been advertising quite a bit.

Not quite, folks. A recent report from leading market intelligence firm IDC India reaffirms the Finnish telecom giant’s status as the leading cell-phone player in the country, with Nokia accounting for 31.5% of the domestic cell-phone market during the July-September period last year. But, surprisingly, a little known Chinese brand called G’Five has made it to the second spot by capturing a 10.6% market share–with Samsung coming in third at 8.2%!

Sounds shocking, right? How can a Chinese player, without any big-ticket advertising campaign or any celebrity as its brand ambassador, manage to create such a big impact in the cut-throat Indian cell phone industry–without any fanfare? Well, the answer lies in G’Five’s strategy of rolling out a bevy of feature-rich phones at competitive prices (in the Rs.1,400-Rs.7,000 range), targeted exclusively at urban first-time buyers and those in semi-urban and rural areas looking to upgrade from basic phones.

So if you are looking to buy a G’Five mobile phone, here is a list of eight affordable (costing not more than Rs.5,000) models from around 26 G’Five phones currently available in India (in the order of ascending prices)– with each of them having their own USPs.

G’Five D10 Price: Rs.1,820 [US$40.4] … G’Five X5 Price: Rs.1,899 [US$42.1] … G’Five N92 Price: Rs.2,249 [US$49.9] … G’Five i310 Price: Rs. 2,400 [US$53.2] … G’Five M33 Price: Rs.2,499 [US$55.4] … G’Five L600 Price: Rs 2,700 [US$59.9] … G’Five X33+ Price: Rs.3,786 [US$83.9] … G’Five V60 Price: Rs. 4,490 [US$99.6] …

And these phones are not crap as you can even see from their pictures (for features info it is worth to go into the article).

G'Five D10 - i310 - V60

Note that to target the upper part of this range Social networking is Nokia’s latest mobile strategy [Feb 17, 2010] (which the above phones do not have):

The company’s latest launch on Nokia X2-01 mobile, at Rs 4,459 [US$99.2] is one such product. “QWERTY is one of the fastest growing mobile phone category in the world due to the rise in messaging and social networking. The Nokia X2-01 makes it easy to set up chat and email direct from the mobile phone,” said Nokia India General Manager-South T S Sridhar. “This means superfast access to your favourite Ovi Mail, Ovi Chat or other popular accounts.”

As young users want to stay connected with friends on the move, instant messaging is rapidly on the rise. With messaging devices like Nokia X2- 01, we are empowering the youth, he said. The handset also provides live updates from social networks such as Facebook, Orkut and Twitter directly from home screen. The Nokia X2-01 is Series 40 2G phone with VGA camera and FM radio. It has one click access the music player and has 3.5mm AV connector ideal for headphones or speakers. It also has Bluetooth and can support up to an 8GB micro SD memory card and has a standby battery time of up to 20 days, he claimed. For affordable access to internet, Nokia has also tied up with country’s largest mobile service provider Airtel which allows 100 mb of free data download per month for 12 months to its subscribers on this phone. Under this scheme one can access Face Book, and OVI Chat and Ovi Mail free of charges.

Gfive Mobile Phones (by Devika Rajpali)

The company of GFive is from China. The investors of the company are a syndicate named Zerone group that of the most esteemed OEM factories that boost of producing around 100 million mobile phones. The GFive mobile phones are the hottest running brand in indisputable imei china mobiles. The company has now established itself completely in the field of tech support, repairing and software installation. You will find the GFive mobile phone to be very stylish with large number of mobile phones to offer to its consumers. The company claims to have experience, confidence and data along with the in-depth insight of their Chinese mobile phones.

The KingTech Telecom (Shenzhen) Co Ltd. is behind the brand with KingTech Telecom (HK) Limited behind the export activities. As far as India is concerned the arrangement will be developed into a stronger local representation as Victor Infotech ties up with King Tech Telecom [Nov 11, 2010] (emphasis is mine):

Victor Infotech Ltd has tied up with King Tech Telecom Ltd (a Hong Kong-based telecom company) to form a joint venture company — Asian Telecom Ltd. The majority stake of 51% in the new company will be held by King Tech Telecom Ltd and the balance 49% equity will be held by Victor Infotech Ltd.

Asian Telecom Ltd., the new joint venture company, will come into being with immediate effect to launch the G’Five brand of mobile phones in the Indian market. The company plans to take the G’Five brand of mobiles to new heights in India and achieve 20% of the market share in the next two years.

As part of the collaboration, Kingtech Telecom shall manufacture the mobile phones and Victor Infotech will be responsible for distribution and marketing of the phone in India. Initially Kingtech Telecom will manufacture the Indian specific mobile phones in Hong Kong [rather in Shenzen] and gradually the same shall be manufactured in India.

The Indian mobile phone market is growing very fast. The company expects the sales of the mobile phones to grow 5 times in the next two years and plans to take advantage of this growth to gain the maximum market share. To achieve this, the company shall introduce many variations in its mobile phones, which shall be specific to the needs of the Indian consumer.

Meanwhile for other parts of the world a new sales and marketing operation has been set up: GLX mobile – G’FIVE Mobile’s Brother Company [Dec 14, 2010] (emphasis is mine)

A new member of Zerone Group called GLX mobile has been founded. With its full name as GLX International Limited, GLX mobile is dedicated in global distribution of GLX mobile phone.

Since G’FIVE is a member of Zerone Group, G’FIVE and GLX are brother companies. The new-founded GLX focuses on international markets, especially emerging markets. GLX mobile covers the whole range of mobile phone user market, from low-end to high-end with stylish and unique handsets.

GLX is aiming to create golden life for worldwide consumers with all ranges of mobile phones.

And the GLX company’s website indicates that it has taken over (almost all) the rest of the existing G’Five business network:

GLX Mobile initial business network

CES 2011 presence with Microsoft moving to SoC & screen level slot management that is not understood by analysts/observers at all

Microsoft’s CES 2011 presence is summarized in two detailed parts below, one for the System on a Chip (SoC) support announcement and the other based on the Steve Ballmer’s CES 2011 opening keynote. The first one has, however, been a source of great confusion among the company watchers, analysts and observers, therefore before we start the detailed overview in these two parts we should look into that situation first.

Update: Microsoft’s next step in SoC level slot management [May 27, 2011]

While the company has clearly stated that Microsoft Announces Support of System on a Chip Architectures From Intel, AMD, and ARM for Next Version of Windows [Jan 5] even such an ardent Microsoft watcher as Mary-Jo Foles interpreted this as a simple message that CES: Microsoft shows off Windows 8 on ARM [Jan 5]. No wonder that Computerworld has written an article that an Analyst ‘baffled’ by Microsoft talk of Windows 8 on ARM [Jan 6]:

Microsoft’s announcement yesterday at CES that its next version of Windows will run on the ARM chip architecture was the wrong message at the wrong place, said an industry analyst.

“I’m baffled,” said Michael Cherry, the analyst at Kirkland, Wash.-based Directions on Microsoft whose specialty is Microsoft’s operating systems. “I just don’t get what they get from this.”

“This is the Consumer Electronics Show, right?” said Cherry, emphasizing the first word of the monster trade show’s name. “It’s not COMDEX,” he added, referring to the long-defunct computer show that Las Vegas last hosted in 2003. “And it’s not the Professional Developers Conference.”

Microsoft picked the wrong stage to talk up Windows and chips, Cherry contended.

“CES is like a car show,” Cherry said. “When I go to the auto show, I don’t mind seeing a couple of concept cars, but what I really want to know is what can I buy at the dealership now? This is a consumer electronics show. It’s not about processors, it’s about features. And I didn’t hear anything about that.”

“I think they can do it,” he said, confident that Microsoft could pull off porting Windows to the ARM architecture, and in time for next upgrade. … But he’s mystified why Microsoft would want to migrate the entire operating system to a tablet platform.

“Do you really gain anything by taking the entire client OS of today and porting it across?” he asked. “Why do they think that the power consumption [of Windows] will be any better on ARM? It’s still going to be running a lot of processes.”

In an accompanying analysis article IDG News Services has even up the ante by declaring that Microsoft must get ISVs onto ARM bandwagon, Microsoft has a lot of work to do moving Windows to ARM chips [Jan 6]:

When Microsoft announced plans to release a version of Windows for ARM processors, it created a lot of work not only for itself, but for all the independent software vendors who sell Windows software as well.

Microsoft will need the support of these ISVs to make the ARM version of Windows a success, warned Dan Olds, principal analyst of the Gabriel Consulting Group.

Microsoft engineers have a lot of work ahead of them, Olds predicts. The ARM instruction set is very different from the x86 instruction set that Windows now runs on. And because ARM processors are not as powerful as x86 ones, the engineers will have to be more careful as to how the operating system consumes resources.

But crafting a version of Windows for ARM is only the first challenge facing Microsoft. Another one is getting ISVs to rewrite their Windows applications to run on ARM. “For ISVs, it will not be trivial to port applications to a new platform,” Olds said.

Yet ISV support will be essential for Microsoft’s success. The success of any operating system depends on the number of applications that have been written for it. The applications were what made Windows a success in the first place, Olds said.

Apple itself faced a similar challenge in 2005 when it announced it was switching to the Intel processors for its Macintosh computers. Apple was successful in moving its own ISVs over to the new architecture, and it has been one of only a few companies ever to survive a switch of platforms. … Microsoft’s task of getting its ISVs interested in porting their software to ARM will be an order of magnitude larger than Apple’s. There are many more Windows software vendors that could supply software. “How do you get them to switch and get them to do it right?” Olds said.

That’s the challenge that awaits Microsoft.

This is all absolutely wrong. The truth is that Microsoft made a strategic decision of moving its core slot management approach to the key System on a Chip (SoC) vendors. It is a decision of enormous significance because up to now the company was managing the slots created by the PC vendors. That is Microsoft had been trying to ensure all along that the client PCs shipped to the market, the “slots” in terms of Microsoft internal way of thinking:

  1. Are best when they are running Microsoft system software.
  2. Have that software already installed when the devices are out of the factory floor (with OEM versions)

From now on Microsoft will do a kind of similar thing on the SoC level (and on the screen level as well), this is my conclusion as I carefully compiled all the available information in the two parts available below. This became absolutely obvious to me as I compared the below details with the radically new “slot situation” represented in my previous post Changing purchasing attitudes for consumer computing are leading to a new ICT paradigm [Jan 5].

Look for example how PC vendors were underrepresented in the keynote compared to what had been before (see my earlier posts: Windows slates in the coming months? Not much seen yet [July 13 – Oct 6, 2010] and Windows 7 tablets/slates with Oak Trail Atom SoC in December [Nov 1 – 24, 2010]) as well as how on the electronics industry level things had been changed recently (see my earlier posts: Marvell ARMADA beats Qualcomm Snapdragon, NVIDIA Tegra and Samsung/Apple Hummingbird in the SoC market [again] [Sept 23 –Nov 4, 2010,] and Intel’s industry position and prospects for years ahead [Dec 9, 2010]).

Notes:
– Mary-Jo Foley started to discover some, but only some real motives in her latest With Windows coming to ARM, what happens to Windows Embedded Compact? [Jan 7]. There she mused about the really significant fact of the cancellation of Microsoft OEM chief’s planned appearance at the J.P. Morgan Tech Forum at CES (see the final agenda where Microsoft is missing) which was much anticipated by the investor community.
– Although for me that sign is important as well, the fact that HTML5 related announcements (as was anticipated in my previous post of Windows 7 slates with a personal cloud based layered interface for touch-first HTML5 applications on the CES 2011 [Dec 14, 2010] post) were postponed has even much bigger significance. Whatever will come regarding that upto the MIX 2011 of April 12-14 will be equally important to clarify the rest of the new strategic Microsoft picture. Particularly I am expecting that Silverlight technologies will nicely join the already known IE9/HTML5 push in a new platform technology setup.

Part I. The SoC support announcement

Microsoft Announces Support of System on a Chip Architectures From Intel, AMD, and ARM for Next Version of Windows [Jan 5], (emphasis is mine):

Microsoft Corp. today announced at 2011 International CES that the next version of Windows will support System on a Chip (SoC) architectures, including ARM-based systems from partners NVIDIA Corp. [Tegra platform], Qualcomm Inc. [Snapdragon platform] and Texas Instruments Inc [OMAP platform]. On the x86 architecture, Intel Corporation and AMD continue their work on low-power SoC designs that fully support Windows, including support for native x86 applications. SoC architectures will fuel significant innovation across the hardware spectrum when coupled with the depth and breadth of the Windows platform.

At today’s announcement, Microsoft demonstrated the next version of Windows running on new SoC platforms from Intel running on x86 architecture and from NVIDIA, Qualcomm and Texas Instruments on ARM architecture. The technology demonstration included Windows client support across a range of scenarios, such as hardware-accelerated graphics and media playback, hardware-accelerated Web browsing with the latest Microsoft Internet Explorer, USB device support, printing and other features customers have come to expect from their computing experience. Microsoft Office running natively on ARM was also shown as a demonstration of the potential of Windows platform capabilities on ARM architecture.

Next version of Windows on Qualcomm Snapdragon ARM demo at CES 2011 Ballmer keynote -- Jan 5, 2011

SoC architectures consolidate the major components of a computing device onto a single package of silicon. This consolidation enables smaller, thinner devices while reducing the amount of power required for the device, increasing battery life and making possible always-on and always-connected functionality. With support of SoC in the next version of the Windows client, Microsoft is enabling industry partners to design and deliver the widest range of hardware ever.

Next Version of Windows Will Run on System on a Chip (SoC) Architectures from Intel, AMD and ARM [Jan 5]
(emphasis is mine) Q&A: In a technology preview at CES, Microsoft demonstrates Windows running on new SoC x86 and ARM-based systems.

The Microsoft News Center team talked with Steven Sinofsky, president of the Windows and Windows Live Division, in advance of the announcement.

Microsoft News Center: Can you give us an overview of what led you to make this announcement today and what the specific news is?

Sinofsky: We are making this announcement now to allow greater collaboration across our expanded partner ecosystem so we can bring to market the widest possible set of PCs and devices, from tablets on up, with the next generation of Windows. We’re at a point in engineering the next release of Windows where we are demonstrating our progress and bringing together an even broader set of partners required to deliver solutions to customers.

We’ve reached a point in technology where everyone really does want everything from their computing experience — the power and breadth of software for today’s laptop, the long battery life and always-on promise of a mobile phone, and the possibilities from a new generation of tablets. Bringing these capabilities together to meet customer demand requires innovation in hardware as well as a flexible, evolving software platform to bring it to life.

Microsoft News Center: Tell us about your partners on ARM-based systems. How were they selected and what do they bring to the table?

Sinofsky: It takes experienced partners to help deliver Windows to a whole new set of devices and we’re pleased NVIDIA, Qualcomm and Texas Instruments have joined us in this technology demonstration. We look forward to even more robust collaboration between silicon partners and a broader set of partners as we work together to bring new PCs and devices – from tablets on up – to market with the next version of Windows.

Microsoft News Center: You’ve talked about these new systems being ready for the next version of Windows. What does this mean for future hardware innovation on Windows 7?

Sinofsky: Windows 7 continues to be extraordinarily well-received by customers – consumers and businesses – using a broad selection of PCs for a wide variety of usage scenarios. There is no better place to see this array of choice and innovation than at a show like CES. At the Windows 7 launch, we saw a terrific line-up of new offerings from partners, and this CES brings another wave of great Windows 7 PCs across a wide range of form factors and capabilities, including new designs on Intel’s 2nd Generation Intel® Core™ Processor Family and AMD’s Fusion APUs. OEMs are delivering great designs and personalized selection across the wide range of PCs including convertibles, gaming rigs, all-in-ones, ultraportables, everyday laptops, and tablet PCs. We know we’ll see additional waves of hardware innovation over the next several seasons as well and we look forward to continuing to work closely with our partners.

Microsoft News Center: What exactly are you demonstrating today as part of this announcement with respect to Windows on ARM?

Sinofsky: Today’s demonstrations will highlight the work we have done on the architecture of Windows to enable the richness of the Windows platform to run natively on the ARM platform. That includes support across a full range of scenarios like hardware accelerated media playback, hardware accelerated Web browsing with the latest Internet Explorer, USB device support, printing, and other features customers have come to expect from their computing experience.

The underlying architecture and engineering work includes a significant set of capabilities to run natively on ARM across the low-level subsystems of Windows as we bring Windows together with this new hardware platform.

Today’s demonstration represents the first showing of the next release of Windows. We know many of our most enthusiastic supporters are interested in learning more about the user interface, programming APIs, and other new features to come in Windows. The announcement today is just the start of our dialog with a broad community around Windows and, as with Windows 7, we will be engaging in the broadest pre-release program of any operating system. So there is a lot more to come.

Microsoft News Center: What can you tell us about Office on ARM?

Sinofsky: We’re committed to making sure that Windows on SoC architectures is a rich Windows experience. Microsoft Office is an important part of customers’ PC experience and ensuring it runs natively on ARM is a natural extension of our Windows commitment to SoC architectures.

Microsoft News Center: What else can you say about the next version of Windows?

Sinofsky: What we showed today was a technology preview of how Windows can adapt to run on SoC architectures. We are making this announcement now to enable our silicon partners, including new ARM partners, to collaborate across the ecosystem to bring innovation to market with the next version of Windows. We’re hard at work on all the aspects of the next version of Windows and we’ll share more information when the time is right.

Update: Intel CEO Paul Otellini addresses Microsoft’s ARM move in the wake of record earnings announcement [Jan 13] (emphasis is mine)

The plus for Intel is that as they unify their operating systems we now have the ability for the first time, one, to have a designed-from-scratch, touch-enabled operating system for tablets that runs on Intel that we don’t have today; and, secondly, we have the ability to put our lowest-power Intel processors, running Windows 8 or the next generation of Windows, into phones, because it’s the same OS stack. And I look at that as an upside opportunity for us.

On the downside, there’s the potential, given that Office runs on these products, for some creep-up coming into the PC space. I am skeptical of that for two reasons: one, that space has a different set of power and performance requirements where Intel is exceptionally good; and secondly, users of those machines expect legacy support for software and peripherals that has to all be enabled from scratch for those devices.

Part II. The Steve Ballmer CES 2011 opening keynote and all other Microsoft related
– Footage from the Microsoft keynote with some relevant keynote transcript excerpts included
– New Windows Laptops, Tablets and Slates Showcased
– The Next Generation of Microsoft Surface – LCDs That Can ‘See’
– New Xbox Avatar Capabilities on Display
– Copy-and-Paste Coming to Windows Phone 7
– Additional details for the three PCs demonstrated in the keynote
– Other new PCs
– Hardware acceleration for cloud clients (browsers etc.): AMD Fusion APUs, NVIDIA GeForce 500M [Jan 14]
– Xbox and Surface 2 additional information
– Windows Embedded Standard 7: the first wave of OEM partners exploiting the included Windows Media Center

While the above press release and the accompanying feature story (the Sinofsky Q&A) was prepared for a press conference held by Steve Sinofsky a few hours before the opening CES 2011 keynote by CEO Steve Ballmer in the evening, it is certainly that keynote which provided the same SoC related information for the more general CES public. Unfortunately this was just understood as a simple platform extension for the next version of Windows client.

Here is an – otherwise absolutely excellent – edited report from the almost hour long keynote, summarized into less than 8 minutes of video record:

[CES 2011] Footage from the Microsoft keynote [1-5-2011] by gumballtech (I’ve included some relevant keynote transcript excerpts as well to make the video more immediately usable):

Today was Microsoft’s annual keynote presentation, which was led by CEO Steve Ballmer. They’ve announced a number of new things, such as:
– Zune/Netflix/Hulu Plus/ESPN integration with Kinect
– avatarkinect
– Copy and paste for Windows Phone 7
– New laptops using Intel’s Sandy Bridge processors
– Windows 8 [?] running on SoC chips (such as ARM)
– Microsoft Surface 2.0
Check out my blog posting that contains this video and over 90 pictures from the event: http://bit.ly/hoZfBU
Here’s a timeline of what this video contains:

00:05 – Panning around…
00:10 – CEO of the CEA is up…
00:45 – CEO of Microsoft is up (Steve Ballmer)…
Good evening, and welcome. 2010 was a very, very exciting year for our customer. [ We launched Windows Phone 7, Office 2010, and Kinect, and we introduced Internet Explorer 9 and Office 365. We saw great growth in our Bing and Azure Services. And with the amazing success of Windows 7, it’s truly been a year like no other. For more see: 2010: A Year Filled with New Experiences for Consumers]

01:15 – Xbox 360 updates… [Ron Forbes, Program Manager on Kinect for Xbox 360 till November 2011, see also on LinkedIn; he could have a bigger role now within the Interactive Entertainment Business whose president is Don Matrick from Oct 1, 2010]
No waiting, no need to download. Today, our Zune Video Marketplace is available in 20 countries. So, let me show you other websites. As you can see here, all I have to do is wave and Kinect knows that I’m ready to get started. Now, there are several things for me to choose from on this menu, and I could use my hand to choose one. But, you know, there’s nothing easier than just using your voice. All I have to say is, Xbox, and Kinect is listening. So, when I say, suggest some movies. It takes me to previews of this week’s featured movies. So, here I can browse full screen trailers of movies that I can watch, like this first one, “Inception.” Awesome, awesome film. And I can easily swipe my hand to move it on to the next one.

02:00 – avatarkinect… [with Steve Ballmer’s avatar speaking]
… what about your facial expressions? As you can see, now Kinect can track features like your smile, your laugh, and even the raise of your eyebrows. Here’s just a little taste of what’s next on Kinect. We call it Avatar Kinect.
02:25 – avatarkinect video…
02:40 – Upcoming games for Windows Phone 7 (video)…
[= Xbox Live games only on Windows Phone 7]

03:22 – Some great WP7 features… [Liz Sloan, Senior Marketing Manager with Microsoft’s Mobile Communications Business whose president is Andy Lees from Oct 1, 2010]
I can also see things like the weather in the city of my choice. And I can also see if they have mission critical information like apps like this one, five and a half months until Summer Solstice begins. And when you’re a Hawaiian native that lives in Seattle, you count every single day until summer arrives. We also surface simple things …
03:45 – Copy and paste on WP7 [Liz Sloan]
copy this up on stage with all of you and I’m going to go to one of my favorite shopping apps and do a little bit of research on this Xbox. As Steve mentioned, we have over 5,500 new apps in marketplace, which brings me to point No. 6, our fantastic apps, big name apps, like Bank of America, Travelocity, Fandango, and in this case Amazon.com. If you remember a few seconds ago I copied the Xbox that I was interested in. And since it’s a little bit long I’m going to paste it in and then I’m going to search …
04:25 – Steve’s back…
When I get a chance to show people a Windows Phone, the feedback that I hear is very, very gratifying. People tell me how snappy it is, easy to use, how personal it really feels. And perhaps as importantly, all in, simply how beautiful it really looks.

Acer Iconia the Winner of Last Gadget Standing at CES 1011 in the 2 Screen Web Browsing Mode

05:00 – A cool dual-screen computer… [Mike Angiulo, Corporate Vice President Windows Planning, Hardware & PC Ecosystem whose role has very recently been greatly upgraded to include responsibility for Surface Computing, PC Hardware, and a variety of partner engagement programs such as WinHEC, the Logo programs for hardware and systems, and direct engineering engagements with OEMs, IHVs and ISVs as well]
… [here’s an example, this one is from Acer, and this is a dual-screen PC. So, you can see I have two 14-inch touch screens here. I can –] is that cool? Do you like that one? (Cheers, applause.) It looks really cool from here, too. And what’s neat is you not only have a lot of room for browsing, but I can take 10 fingers, put 10 fingers down on the screen, and immediately get a software keyboard that comes built-in. (Applause.) Go ahead, let it out. So, I can launch Word here. I have a track pad. I can do productivity scenarios.
05:20 – A nice Windows 7 tablet… [Mike Angiulo]
[This is the new Tablet PC from ASUS, and this is a full-power Windows PC. So,] this PC has a Core i5 processor in it. It ships with this wireless keyboard. It makes a great productivity workstation for maybe a small area like on an airplane or a student’s desk. And what you can see is that it responds well to Windows Touch, because it has a capacitive touch screen. But because it’s a Tablet PC, I can also take out the pen and use ink. And what ink lets me do is stuff like I’m highlighting here in Excel. I can take a pen and say, “This is great.” I can take an eraser, I can erase.
[And one of the cool things about ink and Tablet PC is a Tablet PC has handwriting recognition in 26 languages, and you can see this: When I have the pen down on the screen, can you see how my hand is not moving the spreadsheet around? This is one of the reasons that it’s hard to do ink on touch-only devices, and why Tablet PCs are so good for ink, is because it’s implementing palm rejection here. It actually knows what my hand is and knows what the pen is, and doesn’t get the two confused.]
… [But what I want to show you here is the screen itself. This screen is really bright. And] what we did with ASUS was we worked really hard with them to make sure that this screen would have off-axis viewing of almost a full 180 degrees. So, as I move it around here on the camera, you can see that from almost any angle this screen is really, really bright, and the colors don’t shift. And we did that by working together on a process to optically bond all the components of the screen. So, the Gorilla glass on the surface, the underlying LCD, the touch sensor, even the electromagnetic digitizer for the ink are all bonded together as a single unit. And that process eliminates the air gap that’s usually underneath the screen, so the screen is not only brighter, it uses 20 percent less
power [to actually get that same level of brightness.
You can order these PCs starting right now. The page just went live on Amazon.com in the Microsoft Store. And I think they’re going to be pretty popular.]

06:27 – Microsoft Surface 2.0…[Mike Angiulo]
So, those first-generation Surface PCs needed cameras underneath that would look up to try to see what was going on. But what we have here is called PixelSense. PixelSense is new technology we’ve invented where there’s infrared sensors all across this screen. Every single pixel is actually acting as a camera. The PC, the Surface here, can actually see. So, I’m holding up a piece of paper that says “I can see,” and when I set it down, what you see on this debug monitor, and what you can see on this split screen above is that the PC can actually see that paper. So, this is even beyond touch. And PixelSense is more than just vision, it’s actually the processing inside …

07:05 – Steve’s done…
07:23 – A “spy” video of Joshua Topolsky and Paul Miller of Engadget…

More information:
Steve Ballmer’s full keynote at CES 2011 — almost 60 minutes of recorded video on demand [Jan 5]
A transcript of Steve Ballmer’s full keynote at CES 2011 [Jan 5]
Microsoft at 2011 International Consumer Electronics Show (CES): Press Materials

— Feature Stories, Press Releases, Speech Transcripts and Fact Sheets
CES Wrap Up: Microsoft Makes Mark with New Windows Devices, Surface and Xbox
[Jan 7] with additional (to the feature story) information related to the keynote excerpted here:

The new and revamped products “resulted from big technology bets that we’ve made,” Microsoft CEO Steve Ballmer said during his keynote speech on Wednesday. “Bets on the cloud, natural user interface, new smart client technology, machine learning.”

New Windows Laptops, Tablets and Slates Showcased

Several Windows 7 PCs set CES abuzz, including a laptop, tablet and slate showcased by Ballmer and Mike Angiulo in Wednesday’s keynote. Angiulo, corporate vice president of Windows Planning, Hardware and PC Ecosystem, was interrupted with applause by an enthusiastic audience several times during his demo. “Go ahead, let it out,” he told them, eliciting cheers and applause.

The Acer ICONIA laptop …

Acer ICONIA – Two Multi-Touch Displays
The Acer ICONIA [=> Acer site with the details, said to be there “the world’s most advanced touchbook”], expands the content consumption experience with its two multi-touch displays, enabling users to set the best scenario for what they’re doing. This 64-bit, Windows 7 Home Premium touchbook will ship with Intel Core i5 chip and is optimized for the Dolby Home Theater v3.

[Price and availability was not given except at Nov 23 global announcement press briefing as reported by PCWorld: “Acer says the Iconia may be available in the United States by Christmas, or January at the latest. The device will go on sale in Europe sooner, where it’ll be priced at 1500 euros or 1500 pounds. The U.S. price is still to be determined”. More details are available in laptopmag.com’s Dual-Screen Acer Iconia Aims To Make You Love Windows 7 On A Tablet [Nov 23, 2010] article where 2.8 kg (6.18 lbs.) and battery life of 3 hours is indicated with 4-cell battery. According to techradar.com’s Acer Iconia dual touchscreen tablet announced [Nov 23, 2010]  article: “The Acer Iconia dual touchscreen tablet has a UK release date of 16 January and will cost £1,500.”]

Angiulo also showed an engineering prototype of the Samsung Sliding PC 7 Series, coming in March. At first glance, the Samsung is an ultra-slim, light PC that looks like a multi-touch tablet. However, sliding the display into place reveals a physical keyboard so users can enjoy the best of both worlds – a touch tablet, as well as a more familiar PC keyboard.

Samsung Sliding PC 7 Series: Freedom of Intuitive Touch
The Samsung Sliding PC 7 Series [=> general Samsung site] is an ultra slim and light tablet with multi-touch applications — and a physical keyboard once the display slides back, giving users the freedom of an intuitive touch environment and a familiar keyboard/mouse interface. [It has Intel® ATOM™ Oak Trail Z670 @ 1.66GHz CPU as you could see below in the Samsung press release.]

Also shown, a new ASUS Tablet PC …

ASUS Eee Slate EP121 – Ultimate Portability
The ASUS Eee Slate EP121 [=> pre-order on Microsoft Store for $1,099, however on Amazon a smaller version is also available dor $999, see much below] is a performance-driven, 12-inch slate providing ultimate portability and smooth computing power anytime and anywhere. This 64-bit, Windows 7 Home Premium device will ship with the Intel Core i5 chip and the coveted solid state drive, enhancing productivity and mobility.

All three devices are available to order now in the Microsoft store on Amazon.com [not true, as of Jan 7 only the Eee Slate EP121 is available], Angiulo said. “I think they’re going to be pretty popular,” he added.

The Next Generation of Microsoft Surface – LCDs That Can ‘See’

Ballmer unveiled and demoed the new Microsoft Surface on stage, showing a thinner device that enables thin LCD screens to “see” without the use of cameras.

Created in partnership with Samsung, the Samsung SUR40 incorporates all the key features of the original Surface product – a massive multi-touch experience, the ability to recognize fingers, hands, and objects – as well as a new technology that has enabled a more flexible form factor.

“What we’ve done is taken Surface technology and embedded it into an LCD [liquid crystal display],” said Panos Panay, general manager of Microsoft Surface. “Essentially we’ve created LCDs that can see.”

Microsoft did that through its new PixelSense™ technology, which enables the pixels in the LCD screen to sense what’s touching it and instantly process that information, said Somanna Palacanda, director of Microsoft Surface. “That means we’ve taken the power of the camera and put it right into the pixels themselves,” he said. “Now with a screen that’s four inches thick, customers have the option to use it as a table, hang it on the wall, or embed it into furniture.”

New Xbox Avatar Capabilities on Display

Ballmer appeared on screen during his keynote as his avatar when he introduced Avatar Kinect, which uses Kinect’s facial recognition technology to let a person not only control their avatar’s movements but also to project their expressions onto their avatar; when they smile, frown, nod and speak, the avatar will do the same.

This spring, Xbox LIVE Gold subscribers will be able to use Kinect to control their Netflix experience. Viewers will be able to pause, rewind and fast-forward their streaming movies with only their voice or gestures.

Also this spring, Hulu Plus will come to Xbox LIVE as a Kinect-enabled experience. As with Netflix, subscribers will be able to use controller-free motion and voice capabilities to instantly watch full screen popular TV shows anytime in HD.

“You’re going to continue to see more fun, more entertainment, and more innovation from our Xbox team in 2011,” Ballmer said. “Xbox today is going where no gaming system has ever gone. Your Xbox is becoming the hub of your living room. It is your gaming system, but it’s your movies, it’s your TV shows, and it’s your sporting events. It’s your social interactions, all delivered directly to the biggest screen in your house.”

Copy-and-Paste Coming to Windows Phone 7

A series of Windows Phone 7 updates are coming over the next few months, including adding the copy-and-paste feature and improving the phone’s performance when loading or switching between applications.

Microsoft also is working to make Windows Phone 7 available from Sprint and Verizon in the first half of 2011, and more languages will become available later this year.

Windows Phone 7 is the best new phone out there,” Ballmer said. “As people try it, and discover its new features and beautiful hardware, they see the difference. They see how it makes everything from gaming to social networking to productivity better than on any other phone.”

Additional details for the three PCs demonstrated in the keynote:

Acer Iconia Named Winner of Last Gadget Standing; DriveSafe.ly 2.0 Named Winner of Mobile Apps Showdown Contests [Jan 8]
Last Gadget Standing: The Results Are In!
[Jan 9]

The Last Gadget Standing–as determined by applause-o-meter at the event is Acer’s Iconia, a notebook with two 14-inch screens and a touchscreen interface. And the People’s Choice winner–determined by an online poll–is Barnes & Noble’s Nookcolor “reader’s tablet.”

Last Gadget Standing: The Ten Finalists [Dec 28]
Acer’s Iconia voted One of Ten Favorite ‘Last Gadgets Standing’ at Annual CES Competition
[Dec 30, 2011]

Acer announced today that their brand new Iconia Touchbook has been voted as one of the top ten products in The Ten Favorites at the CES annual Last Gadgets Standing competition. The Iconia is a dual all-point multi-touch notebook that gives consumers the best features of a laptop and tablet device. The Last Gadget Standing Competition is due to take place on January 8th, 2011 at the Consumer Electronics Show in Las Vegas.

Acer’s Iconia offers an enhanced content consumption experience and brings the interaction with the tablet to a new level.

Comes complete with Windows© 7 and offering  a unique visual experience, the Iconia allows multimedia, entertainment, communication and even web pages to flow seamlessly across its 14-inch dual screens. A virtual keyboard is as close as the user’s fingertips and features a full-sized QWERTY layout, while something Acer calls the “Gesture Editor” enables users to create customized gestures that will instantly open applications or favorite websites with, literally, a wave of their hand.

All these features, and more, are just some of the reasons the Acer Iconia has become such a fan favorite at this year’s CES, and is certainly why the judges of the Last Gadget Standing competition have now made it one of the top ten finalists.

Products represented in this competition have been nominated by the writers of prominent news/blogger sites. These writers petition their readers to submit choices for those products they consider the most innovative, useful, and able to stand the test of time.

Acer ICONIA [Nov 23, 2010]

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.

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.

Both 14-inch displays have HD 1366×768 resolution, high-brightness Acer CineCrystal™ LED-backlit TFT LCDs and take advantage of cutting-edge technologies supporting all-point multi-touch for precise on-screen input. Protected by the ultra-thin yet durable Gorilla® Glass, the displays are scratch and fingerprint resistant, easier to clean and offer the same touch functionality.

ICONIA is designed to provide the optimal all-point multi-touch experience on a dual-display tablet. This is why Acer equipped it with a full range of intuitive and easy to use features and applications that fully exploit the countless possibilities of multi-touch technology. The starting point to launch ICONIA’s touch features and controls as well as applications is the Acer Ring.

The Acer Ring appears simply by placing five fingers on the screen and making a grab gesture. The Acer Ring allows you to start touch applications by scrolling through the App cards and tapping on the one you choose. The Ring also provides fast access to: Virtual Keyboard, Gesture Editor, Window Manager, and Device Control Console.

The Virtual Keyboard can be launched from the Acer Ring or by placing both palms on the bottom display. The intelligent design senses the position of the user’s palms and launches the keyboard. It comes with a full-size QWERTY layout with international language support to give users the same experience of a traditional physical keyboard and features predictive text input for natural-speed typing while avoiding mistakes. The Virtual Keyboard also includes a touchpad and a numeric keypad and can be easily switched to handwriting mode. With all these functionalities you won’t miss the traditional physical keyboard!

With the Gesture Editor you can set customized gestures to launch specific applications, open websites, view your desktop or lock your computer. The Gesture Editor offers you a simple and intuitive way to personalize ICONIA to best suit your needs.

Acer ICONIA -- company specific interface solutions over Windows from the promo page -- Jan 7, 2011

http://www.acer.com/iconia/: Acer introduces ICONIA: the world’s most advanced touchbook. Dual screens. Full touch interface. A truly unique experience.

Window Manager allows users to organize the various application windows on the double touch screen. Windows and applications can be moved across displays, so you can always have what you need where you need it. Plus, you can browse through a list of running application, and resize, dock or close windows.

A wealth of built-in touch applications designed to easily manage content provides a seamless experience. Besides those already implemented on Acer’s touch devices, such as TouchBrowser, TouchPhoto, TouchMusic and TouchVideo, allowing an enhanced browsing experience with on-screen gestures to zoom, rotate, flip and scroll and to access and enjoy your multimedia from an integrated touch-optimized interface, ICONIA includes three new ones: SocialJogger, My Journal and Scrapbook.

SocialJogger lets you gather and check updates from Facebook, YouTube and Flickr in all in the same place, taking advantage of the dual screens to check posts and updates on the bottom display and use the second display for exploring and viewing more content.

You can use MyJournal to collect web clippings on your preferred topics. Web clippings are dynamically updated to display all the latest information and can be categorized and displayed according to your needs. Simply tab on a collected Web Clip to display the full webpage on the top screen for a complete access.

Scrapbook lets you easily store clippings, posts and just about anything else from different sources in the same place. You can capture screen shots from the web or an application, edit them and add notes. You can create photo collections with notes and comments. You can also add your scraps to presentations, and documents. Scrapbook helps you keep track of anything you find interesting, funny or valuable and share it!

Samsung Creates a New Category of Mobile PC with the Samsung Sliding PC 7 Series [Jan 5]
Combining the Benefits of a Laptop and Tablet PC, the PC 7 Series is Ideal for Creating and Consuming Content

Pioneering Design
Weighing just 2.2 pounds, the Samsung Sliding PC 7 Series is easily packed into a briefcase and can be used for making presentations or for recording data on the fly. The 7 Series is suited for both indoor and outdoor use with 340-nit brightness 10.1-inch display supported by an enhanced HD resolution (1366 x 768). With its slim and light weight design, the 7 Series allows for mobility without compromising functionality in personal or professional settings.

Everyone from students to mobile professionals can enjoy the convenience of Samsung’s Sliding PC 7 Series. The form factor is ideal for personal computing activities like watching movies or social networking, and can quickly adapt the needs of professional users presenting to clients or taking notes at a meeting. The device is also perfect for students, thanks to its handy, portable nature and focus on content. For those who prefer physical keyboards over a touch screen for quickly typing up notes or browsing the Web, the 7 Series features a full, 80/81-key keyboard sleekly tucked away under the display. At the user’s convenience, the keyboard slides out completely, creating a laptop-like interface coupled with the touch capabilities on the display.

The six-cell lithium-polymer battery and innovative Eco Light Sensor, which conserves energy and adjusts screen brightness based on available ambient light, allows the 7 Series to last for up to 9 hours.

Innovative Mobile Computing
The ultra-light Samsung Sliding PC 7 Series is engineered with convenience and responsiveness in mind. Available in either 32GB or 64GB models, the 7 Series features expandable storage with the 4-in-1 memory card reader. The solid-state hard drive and Samsung’s Fast Start feature powers the 7 Series in as little as 15 seconds, or restores from Hibernate and Sleep modes in a mere 3 seconds. The SSD also fully supports multi-tasking not only in the Windows® mode, but also in touch mode, so users never have to slow down.

Equipped with Microsoft Windows 7 Home Premium, the Samsung 7 Series provides familiarity and comfort to users while enhancing their overall experience. Users with entertainment in mind will benefit from high-resolution graphics and an HDMI port for sharing content on an HDTV. Additionally, the built-in webcam and audio speaker make the 7 Series ideal for video communication with family, friends and coworkers across the globe.

Optional 3G connectivity takes the 7 Series to new levels, with Internet connectivity anywhere, anytime. Moreover, the built-in accelerometer enables portrait or landscape viewing, making the 7 Series perfect for reading daily news articles, or sharing photos with family and friends.

Application Ecosystem
The Sliding PC 7 Series comes with several pre-loaded applications that are optimized for the touch screen display. This includes Samsung’s applications for music, video, photos, note taking, weather, clock, compass and many more. In addition, Microsoft Bing™ Maps provides powerful tools that help get more out of search, including the intuitive Bing voice search, which enables users to type with their voice to find what they’re looking for. More robust touch applications will be available via the Samsung App Manager and Windows Product Scout.

The Samsung 7 Series acts as a connective hub with other devices to improve the entertainment experience thanks to Samsung’s device-to-device connection solutions. Samsung AllShare™ enables users to control, search, swap and play videos, photos, and music across a full range of DLNA® (Digital Living Network Alliance) certified Samsung devices, ranging from cameras and smart phones to TVs and PCs.

The Samsung 7 Series is scheduled to be available in March 2011, with a starting price of $699 MSRP. All Samsung mobile PC products are available through Samsung resellers and distribution channels, which can be located by calling 1-800-SAMSUNG or by visiting www.samsung.com.

Key Specs:
• CPU: Intel® ATOM™ Oak Trail Z670 @ 1.66GHz
• Operating System: Genuine Windows® 7 Home Premium
• Samsung Touch Launcher
• Memory: 2GB DDR2
• Hard Drive (max): 32GB or 64GB (mSATA SSD)
Screen: 10.1-inch touchscreen HD LCD display (340 nit)
• Resolution: 1366 x 768
• Graphics: Intel Integrated Graphics
• Audio Technology: Integrated speaker (0.8W x 2)
• I/O:
• USB 2.0
• 4-in-1 memory card reader
• HMDI out
• Webcam: 1.3MP
• Battery: Lithium Polymer; up to 9 hours
• Wireless: 802.11b/g/n; WiMax; 3G
• Dimensions: 10.47 x 6.88 x 0.78 inches (W x D x H)
Weight: Starting at 2.18 lbs.

CES 2011 — ASUS Tablet Computers — Providing Choice through Innovation at CES 2011 [Jan 4, 2010]:

ASUS Eee Slate EP121

The Eee Slate EP121 is designed for users who require a highly portable handheld device that can also run standard office software while multitasking with other applications. Powered with an Intel® Core™ i5 dual-core processor, the Eee Slate features a 12.1” LED-backlit display with a 1280 x 800 resolution and a wide 178° viewing angle, making it perfectly suited for both productivity applications and multimedia entertainment.

ASUS Eee Slate EP121-1A010M 12.1-Inch Tablet PC demonstrated by company rep Gary Key at CES 2011.

[See also: ASUS Eee Slate EP121: First demo at CES 2011 [Jan 5] for a complete scenario of “Running on Windows 7 Home Premium, it has no issues multitasking as we could witness during ASUS’ presentation: while a video was running in the background, the presenter edited an image of his ‘daughter’ with Photoshop Elements. Afterwards he sent it wirelessly over to another Slate after using the capacitive stylus to write the e-mail address which the built-in text recognition transfered into legible letters.”]

Windows® 7 Home Premium ensures full compatibility with a wide range of popular applications controlled by flexible input options thanks to the Eee Slate. The capacitive touch-screen responds instantly to fingertip control for day-to-day use, while the capacitive stylus offers fine precision input and control. An on-screen keyboard is also complimented by support for an external Bluetooth keyboard for traditional desktop use.

The Eee Slate is available with 32GB or 64GB of SSD storage (expandable via SDXC), and up to 4GB of DDR3 RAM. All models have 802.11n Wi-Fi, Bluetooth 3.0, a 2-megapixel camera, plus two USB 2.0 ports that provide full support for a wide range of standard PC peripherals, along with a mini-HDMI port that is ideal for connecting to external displays.

ASUS is excited to announce that the ASUS Eee Slate EP121 is one of their eight products to be selected for a CES 2011 Innovations Award.

See also the Entertaining meets enterprising with the most powerful tablet [Jan 4] promo page in the US which is curiously showing the following view of the product where the screen is actually that of Windows Media Center. While this functionality is coming with the Windows 7 Home Premium included in the product it is obviously very useful for touch only functionality as well. Nevertheless all the demos available are showing the Eee Slate EP121 with pen based touch manipulation (except this one recorded on January 6, 2011 using a Flip Video camcorder, where from 0:28 to 0:45 you could see this interface in action). Could some additional Microsoft software come later on (with shipment) to exloit that?

ASUS Eee Slate EP121 as presented on the promo page -- Jan 4, 2011

This page is also leading to the pre-order pages on the Amazon where the 2GB RAM and 32GB SSD version is available for $999 and the 4GB RAM and 64GB SSD one for  $1,099 (the wireless keyboard is an option for both). On both pages it is stated that:

  • Battery Pack: 4 cell polymer battery (up to 3 hours)
  • Dimensions: 12.28 x 8.15 x .66 –inches (W x D x H)
  • Weight: 2.53 lbs

Other new PCs:

Innovative New Windows-Based PCs at CES 2011 [Jan 7] which in addition to the three devices from Acer (ICONIA), Samsung (Sliding PC 7 Series) and ASUS (Eee Slate EP121) showcased at the keynote currently provides information on there are 7 other devices as well – 5 laptops, one very thin all-in-one home PC and a complete home entertainment center set-top box:

Dell XPS 17 3D – As Unique As You Are
The Dell XPS 17 [=> Dell site with the details for this laptop, from $950] 3D PC extends the XPS quality we know and love to also offer 3D experiences with full 1080p HD resolution. This PC ships with Windows 7 Home Premium and wireless active shutter glasses, and is customizable with the Dell Design Studio, making your PC as unique as you are.

HP Pavilion dm1z – For the Road Warrior
Extremely thin and light, the HP Pavilion dm1z [=> HP site with the details for this laptop, from $525] keeps you connected on the go and is priced to fit your budget. Ideal for the road warrior, this PC ships with Windows 7 Home Premium and the AMD Neo mobile processor with dual-core options — all the power and productivity you need.

Lenovo A320 – Iconic Ultra-Slim Design
The IdeaCentre A320 [=> Lenovo site with the details, from $525] redefines home computing with its iconic ultra-slim design, premium sound and 8 GB RAM. This Windows 7 Home Premium PC ships with Intel Core i5 with Turbo Boost Technology.
[“At 18.5 inches deep, the Lenovo IdeaCentre A320 is the thinnest all-in-one PC in the world.  Lenovo’s held that distinction three years running — but this year’s model packs in performance to match.”
-Gizmodo]

MSI GT680 – For Gaming Enthusiasts
The MSI GT680 [=> MSI news site with the details for all the new G Series laptops] is a great choice for gaming enthusiasts. This 64-bit PC features the exclusive Turbo Drive Engine Plus (TDE+) technology and dual turbo power for exceptional performance and efficiency. It ships with Windows 7 Home Premium and the Intel Core i7 processor.

Reycom Entertainment Center – Complete Home Entertainment Experience
The Reycom Entertainment Center [=> Reycom site for the family, the separate press release in the attached PDF version is stating “Reycom will launch The REC United States retail version in Q1 2011 (estimated price around $499) followed by dedicated versions for US cable operators and US telecom operators by mid 2011.”] is a complete home entertainment experience, with live TV in HD with time-shift, and access to a wide range of films, TV shows, gaming, music, and more. This Windows Embedded Standard 7 set-top box ships with Intel Atom and NVIDIA ION technologies.

Sony VAIO F 3D – Full 1080p HD
The Sony VAIO F series [=> Sony site with the details, from $999] 3D laptop in full 1080p HD creates an immersive viewing experience with images so realistic you’ll feel like you’re part of the action. It’s loaded for all-out performance with a quad core Intel Core i7 processor, dedicated NVIDIA GeForce graphics, and up to 6GB RAM.

Toshiba Satellite A665-3DV – All-Purpose Entertainment PC
The Toshiba Satellite A665 3D Edition [=> Toshiba site with the details, from $1.699] laptop is an all-purpose entertainment PC offering premium performance, superior productivity and ultimate creativity. This Windows 7 Home Premium PC also offers true stereoscopic 3D multimedia enjoyment and ships with the Intel Core i7 processor.

CES 2011 Recap: My favorite PC tech from this year’s show (and a re-post of all fifteen “Live at CES” videos) [Jan 10]

CES 2011 was a whirlwind of incredible new PC technology.  There was a lot to take in, so to help you get a quick overview of the show’s PC highlights I’m re-posting all fourteen videos I shot at the event, as well as a line or two about the highlights for each partner.

Thanks to Acer, Asus, Dell, HP, Lenovo, Origin, Samsung, Sony and Toshiba for taking the time to show me their newest, most innovative PCs, and to AMD, Intel and NVIDIA for walking me through their latest CPU, APU and GPU technology.

And of course, a HUGE thank you to everyone who submitted questions & comments through Twitter and the blog!

All of the partner videos are below, but if you’re short on time and want to get a really quick overview of what was new and cool at the show, check out my booth walkthrough with Microsoft’s “Roving Reporter” Jessica Corbin, and the technical snapshot of new PC technology I did with Larry Larsen from Channel 9.

ACER: I was really impressed by Acer’s totally unique – and surprisingly practical – ICONIA dual-touchscreen laptop, and by the ultra-slim Revo mini desktop.AMD: AMD’s new Fusion APU has the potential to be a game-changer. Check out the video to see what it’s all about.

ASUS: Clearly the star of the show for Asus was the EP121 Slate PC. I reviewed it on the blog, but don’t miss it in action in the video:DELL: I’m a sucker for power, and Dell’s brand-new Alienware M17x with wireless HD technology didn’t disappoint.

HP: The Pavilion dm1 was the most impressive PC I saw from HP this year. $450 gets you 9+ hours of battery life, HD capable graphics and built in 3G wireless.INTEL: One industry expert told me that “The new Core processors might be the biggest thing since the original Pentium”. Watch what they can do, and you’ll see why.

LENOVO: I was blown away by Lenovo Enhanced Experience 2.0, which powers PCs that boot Windows 7 in under 10 seconds. Watch the video to see my custom t410 get humiliated in the fast-boot challenge:NVIDIA: These guys are bringing 3D to the masses. And they have the only computer I’ve ever seen that has rock-show gaming power and can pour a frosty pint of beer at the same time.

ORIGIN: They just might be the new kings of power gaming. Watch the video to see where they’re taking the category next.SAMSUNG: Samsung continues to impress me with their striking industrial designs. The Sliding PC 7 is a practical take on the tablet concept, and the Notebook 9 Series is so thin and light it makes you laugh the first time you pick it up.

SONY: Sony’s new VAIO L all-in-one with a touch-sensitive bezel is beautiful and smart; having the controls on the edges keep fingerprints off the screen.

TOSHIBA: Toshiba showed off a complete lineup of new PCs, from inexpensive netbooks to 3D gaming PCs. It’s really great to see them making something for everyone.

Live at CES 2011: Final thoughts as the show wraps up [Jan 10] (emphasis is mine)

Of course, there was a ton of great trends that I noticed that were really catching on this year:

→ 3D might finally be ready for prime time. That’s largely due to the affordable availability of 3D on new desktops, laptops, and all-in-ones (and of course, TVs)

Consumers are really digging form factors that bring together the best of touch and typeDesigns like the Acer ICONIA, the Dell Inspiron duo and the Samsung Sliding PC 7 Series took a lot of people from “I don’t like touch” to “I need one of these RIGHT NOW!”

There’s really a PC for everyone.  I was very happy to see our partners introducing new form factors that embraced touch, 3D, and other new technology like wireless media streaming, and that came in a huge variety of sizes, specs, colors, and prices.  The ecosystem continues to be as diverse as our 1,000,000,000+ customer base.

Live at CES 2011: You can tell its Dell (because the PCs are fast, beautiful, and customizable) [Jan 9]: “we got a look at their new premium XPS laptops [Intel Core i5], and got a first look at the just-announced Alienware M17x power gaming laptop.
Live at CES 2011: The mad geniuses at ORIGIN show the world what’s next in power gaming [Jan 9]: “If you haven’t heard of them, ORIGIN makes some of the world’s most powerful gaming PCs, all custom designed & hand-built.
Live at CES 2011: Intel gives the inside scoop on its new Core and Atom processors [Jan 9]
Live at CES 2011: AMD explains the new Fusion APU and what it means for next-gen PCs [Jan 8]
Live at CES 2011: A cozy fireside chat with the HP Pavilion dm1 and ENVY 17 3D [Jan 8]: the HP Pavilion dm1z with AMD Fusion E-350 starting from $450
Live at CES 2011: Sony impresses with new all-in-ones, ultraportables and 3D laptops [Jan 8]: “In addition to the brand new ultralight Sony Y (powered by AMD’s new processors) that starts at $549, I got to check out Sony’s new VAIO F 3D laptop, which packs a new second-generation Intel i7 quad-core processor and Blu-Ray, and the impressively designed refresh of the multi-touch VAIO L all-in-one.
Live at CES 2011: Beer, gaming rigs, and 3D everything with NVIDIA [Jan 8]

Live at CES 2011: Geeking out on the show’s new PCs with Channel 9 [Jan 8]: “If you caught my roundup video with Jessica Corbin you’ll find several of these PCs familiar, but Larry and I get more technical here, so it’s a good way to get a deeper look at the new tech on the show floor.  Check it out!

Live at CES 2011: I get shellacked by Lenovo Enhanced Experience 2.0 in their fast boot challenge (but beat everyone else!) [Jan 8]: “wicked thin U260, which boasts a Core i7 processor in a chassis … beautiful B520, Lenovo’s new 3D all-in-one” but the E-350 based ThinkPad X120e (available in February) and IdeaPad S205 (not available in the US) netbooks, as well as the Essential C205 All-In-One are not mentioned at all

Live at CES 2011: A roundup of some of the show’s hottest new PCs with Microsoft’s “Roving Reporter” [Jan 7]: “Check it out for some new views and more hands on time with the convertible Dell Inspiron duo, the ASUS EP121 slate PC, the Samsung Notebook 9 Series ultrathin, and the dual-touchscreen Acer ICONIA.

Live at CES 2011: Samsung cranks up the industrial design with Sliding PC 7 Series and Notebook 9 Series laptops [Jan 7]
Live at CES 2011: Toshiba shows off innovation across it’s entire laptop line
[Jan 6]
Live at CES 2011: Acer’s new dual touchscreen ICONIA, Revo mini desktop, and Aspire entertainment PC [Jan 6]
Live at CES 2011: Video demo of the Windows 7-powered ASUS EP121 Slate PC [Jan 6]
Hands-on with the ASUS EP121 Slate PC [Jan 4]

Motion Announces its First Ultra-Light, Rugged Tablet PC with Versatile Flexibility [Jan 5]

The new Motion CL900 is built based on customer demand for a mobile and integrated device that offers the capabilities to support mobile workflows. Architected for future expansion, the CL900 will feature a peripheral module that will enable simple device expansion. Tightly secured and integrated into the device, the peripheral module will incorporate key documentation tools without compromising durability. Peripheral modules will be released later in 2011.

… Advanced durability, connectivity and mobility features include:

  • Up to eight hours of battery life for all-day, uninterrupted productivity
  • Lightweight and rugged design that offers the protection of the MIL-STD-810G specification (four foot drop test) at only 2.1 pounds and less than 16mm thick
  • IP-52 rated exterior to protect against dust, moisture and other elements
  • Optional integrated Gobi™ 3000 mobile broadband with GPS, 802.11 a/b/g/n WLAN, Bluetooth® 3.0, and a wireless SIM port for advanced communications
  • Display with Corning® Gorilla® Glass display for added durability and scratch resistance and incorporated DuPont Vertak™ to improve visibility in various lighting conditions

    [See Dupont Vertak Overview Video:]

… Running Microsoft® Windows® 7 and powered by the upcoming Intel® Atom™ processor currently codenamed “Oak Trail”, the CL900 balances power, performance and battery life. Additionally, IT serviceability and enterprise support options help ensure uptime and reduce IT resource drain. Business benefits include:

  • The ability to run existing applications, lowering the cost of deployment
  • The performance needed to simultaneously run multiple enterprise applications
  • Bright display that offers the convenience of both touch and stylus input

Note from PDF overview: Delivers clear visibility even in bright sunlight

  • 30GB or 62GB solid state drive (SSD), and up to 2GB of RAM

The new Intel Atom processor is specifically designed for tablet PCs and mobile workflows that require a balance of productivity and battery life. An enhanced version of the Atom line of processors, “Oak Trail” will offer the responsiveness, security and manageability required for mobile users in business environments.

With a planned starting MSRP of less than U.S. $1000 the CL900 offers a competitive entry price point to other tablet PCs with a unique, rugged design that supports a lower total cost of ownership over non-rugged devices. The CL900 will be available to ship early in the second quarter of 2011 while the optional peripheral module will be available later in the first half of the year. For more information on the CL900 or to register for product updates, please visit the CL900 Product Page. To access high resolution product photos please visit the CL900 Images Page.

Hardware acceleration for cloud clients (browsers etc.): AMD Fusion APUs, NVIDIA GeForce 500M

Accelerated Processing Unit = APU

AMD Details a Vivid Future of Computing at Annual Financial Analyst Day [Nov 9, 2010] (emphasis is mine)

AMD Fusion APUs mark a significant leap forward in technology innovation to address evolving workloads and users’ needs for smaller, more power-efficient form factors that enable richer visual computing experiences such as:

  • Outstanding Web browsing experiences in terms of speed of response, quality of graphics, quality of animations;
  • Smooth video playback of HD and 3D content in even the most portable form factors;
  • Optimized experience in popular GPU-accelerated  productivity applications such as Microsoft PowerPoint where AMD Fusion enables smooth transitions, better animations, easier video editing;
  • Better content management capabilities to organize the millions of digital media files created and stored by consumers everyday;
  • User interface innovations designed to rapidly evolve as new technologies such as gesture recognition and voice command take advantage of the massive parallel processing capability of GPUs as evidenced by the hundreds of gigaflops of compute power in the AMD Fusion APU codenamed “Llano”.

AMD Public Roadmap Updates

AMD also announced several notable updates to its 2012 roadmaps including:

  • “Krishna” and “Wichita”: Two and four-core 28nm APUs based on the next-generation sub-one watt “Bobcat” CPU cores and a DirectX 11-capable GPU, designed for the tablet, notebook, HD netbook, and desktop form-factors;
  • “Trinity”: a 32nm APU based on AMD’s next-generation “Bulldozer” CPU cores and a DirectX 11-capable GPU, designed for  mainstream and high-performance desktops and notebooks;
  • “Komodo”: a 32nm CPU featuring up to 10 AMD “Bulldozer” CPU cores designed for high-performance and enthusiast desktops;

Simply put, it’s all about Velocity [Nov 9, 2010] (emphasis is mine)

Velocity goal: the best APUs every year

Velocity is the term Rick Bergman [senior VP for product development from May 2009, before with ATI part] introduced last year to signal the new AMD Fusion APU design metho

dology and product introduction cadence. AMD Velocity builds on AMD’s already established annual GPU design cycle to achieve a faster pace of innovation than AMD previously achieved with a CPU-only development focus. This quicker pace is in keeping with an overall faster pace of consumer innovation, where new features and new use cases abound.  The goal of Velocity is clear, compelling platform differentiation for AMD, and the delivery of the best APU on the market every year.

Below are our client roadmaps for 2011 and 2012. To summarize, here’s what’s new for 2012:

  • We’ll bring our “Bulldozer” CPU cores into  APUs with “Trinity,” targeted for both the mainstream and performance notebook markets. We will also offer a “Trinity” APU for mainstream desktop;
  • For the essential, netbook and tablet markets we introduce our “Krishna” and “Wichita” APUs with enhanced “Bobcat” CPU cores. These will be our first APUs based on 28nm process technology. “Krishna” APUs are scheduled to be available for small form-factor and all-in-One (AIO) desktop platforms in 2012;
  • Also in 2012, we plan to continue offering high-performance desktop CPUs for the enthusiast market with the “Bulldozer” core-based “Komodo” CPU.

AMD Fusion™ Family of APUs Technology Overview: Enabling a Superior, Immersive PC Experience [May 4, 2010]

At the most basic level, AMD’s new Accelerated Processing Units combine general-purpose x86 CPU cores with programmable vector processing engines on a single silicon die. AMD’s APUs also include a variety of critical system elements, including memory controllers, I/O controllers, specialized video decoders, display outputs, and bus interfaces, but real appeal of these chips stems from the inclusion of both scalar and vector hardware as full-fledged processing elements.

Others have lashed a CPU and a basic graphics unit together in a single package, but none have attempted this feat with truly programmable GPUs like those in the AMD Fusion designs, let alone GPUs that can be programmed using high-level industry-standard tools like DirectCompute and OpenCL.

AMD is best situated to address this engineering challenge, as it is currently the only company which has access to extensive IP resources (e.g. patents and engineering expertise) in both x86 processor technology and industry-leading GPU technology. In fact, AMD’s recognition that it needed proven GPU technology for future converged products drove its 2006 acquisition of ATI Technologies.

Will 2011 Be a Breakthrough Year for Parallel Computing? [Dec 22, 2010] (emphasis is mine)

With power consumption of computers a major concern, parallel computing has become the dominant paradigm in computer architecture with many low power cores displacing the traditional approach of frequency scaling. And we are now entering the world of heterogeneous computing as we introduce AMD APU processor technology, where CPU and GPU cores live on the same piece of silicon.

If you are a software programmer these changes can be overwhelming.  You can’t necessarily make these transitions on your own.  A recent report published by the National Research Council provides a sobering look at the problem, and points out that many sectors of the U.S. economy could stall unless the nation aggressively pursues fundamental research and development of parallel computing.

AMD is doing its part to help the Information Technology sector address this issue. We have a community of world class software engineers focused on driving:

Fusion Family of APU News
A Brief History of General Purpose (GPGPU) Computing

ATI Stream Technology

GPU and CPU Technology for Accelerated Computing

ATI Stream technology is a set of advanced hardware and software technologies that enable AMD graphics processors (GPUs), working in concert with the system’s central processors (CPUs), to accelerate enabled applications beyond traditional graphics and video processing. This enables balanced platforms to run computationally-intensive tasks more efficiently, providing a better application experience to the end user.

Along with leading third party industry partners and academic institutions worldwide, AMD is building a complete ATI Stream computing ecosystem, one that delivers the performance, applications, software and tools necessary to turn AMD’s low-cost application acceleration vision into reality.

Characteristics of GPU acceleration:

  • Enable new applications on new architectures
  • Parallel problems other than graphics that map well on GPU architecture
  • Transition from fixed function to programmable pipelines
  • Various proof points in research and industry under the name GPGPU

ATI Stream Computing FAQ

Q: What is stream computing?

A: Stream computing (or stream processing) refers to a class of compute problems, applications or tasks that can be broken down into parallel, identical operations and run simultaneously on a single processor device. These parallel data streams entering the processor device, computations taking place and the output from the device define stream computing.

Today, stream computing is primarily the realm of the graphics processor unit (GPU) where the parallel processes used to produce graphics imagery are used instead to perform arithmetic calculations.

Characteristics of stream computing:
* Enable new applications on new architectures
* Parallel problems other than graphics that map well on GPU architecture
* Transition from fixed function to programmable pipelines
* Various proof points in research and industry under the name GPGPU


Q: How does stream computing differ from computation on the CPU?

A: Stream computing takes advantage of a SIMD methodology (single instruction, multiple data) whereas a CPU is a modified SISD methodology (single instruction, single data); modifications taking various parallelism techniques into account.

The benefit of stream computing stems from the highly parallel architecture of the GPU whereby tens to hundreds of parallel operations are performed with each clock cycle whereas the CPU can at best work only a small handful of parallel operations per clock cycle.


Q: Which applications are best suited to Stream Computing?

A: Applications best suited to stream computing possess two fundamental characteristics:

1. A high degree of arithmetic computation per system memory fetch
2. Computational independence – arithmetic occurs on each processing unit without needing to be checked or verified by or with arithmetic occurring on any other processing unit.

Examples include:
* Engineering – fluid dynamics
* Mathematics – linear equations, matrix calculations
* Simulations – Monte Carlo, molecular modeling, etc.
* Financial – options pricing
* Biological – protein structure calculations
* Imaging – medical image processing

CPU Performance: Better than Atom, 90% of K8 but Slower than Pentium DC [Nov 16, 2010] (emphasis is mine)

AMD’s performance target for Bobcat was 90% of the performance of K8 at the same clock speed and our Photoshop CS4 benchmark shows that AMD can definitely say that it has met that goal. At 1.6GHz the E-350 manages to outperform a pair of K8s running at 1.5GHz in the Athlon X2 3250e [delivered as the most “energy efficient” K8 in Q4 2008 with 22 W TDP in  a 65 nm process]. Unfortunately for AMD, Intel’s Pentium dual-core running at 2.2GHz is much quicker. Most notebooks in the $400+ range have at least a 2.2GHz Pentium. Even the Atom D510 isn’t far behind.

AMD tells me that in general purpose integer tasks, the E-350 should do well and it may even exceed AMD’s 90% design target. However in higher IPC workloads, for example many floating point workloads, the E-350 is constrained by its dual issue front end. In these situations, the out of order engine is starved for instructions and much of Bobcat’s advantage goes away.

Desktop IGP Comparison: Faster than Clarkdale [Nov 16, 2010] (emphasis is mine)

For the desktop section I compared the E-350 to the latest Clarkdale chips [the best GPU performing Intel Core i5 661 with $196 1Ku boxed pricing and entry level Core i5 530 with $113 1Ku boxed pricing all launched on Jan 7, 2010 as the first 32 nm processors with Intel’s new HD Graphics integrated on the same die], AMD’s own 890GX and a discrete Radeon HD 5450 graphics card. While the Radeon HD 5450 has the same number of shader processors as the E-350 (80), they run faster and it has a dedicated 1.6GHz memory bus to feed it. The E-350 has to share memory bandwidth between the two Bobcat cores and the 80 SPs, severely limiting its performance potential.

The E-350 does extremely well compared to its desktop brethren. In our Modern Warfare 2 and BioShock tests its easily faster than the Core i3/i5 and in the case of BioShock 2 it’s even faster than AMD’s 890GX. Dragon Age Origins is another story however as the benchmark is primarily CPU limited, giving the desktop parts a huge advantage. In GPU bound scenarios, it’s clear that our initial Zacate benchmarking was accurate: the E-350’s Radeon HD 6310 is quicker than Intel’s HD Graphics.

Compared to the Radeon HD 5450 the 6310 offers between 66 – 69% of its performance in our GPU bound tests. The performance reduction is entirely due to the 6310’s limited memory bandwidth being shared with the dual Bobcat cores on-die.

AMD Space Game HTML5 demo in IE9: AMD E-350 Fusion APU runs more than 10 Frames per second faster than Intel i5 520M with HD Graphic

See theAMD “Zacate” APU Will Accelerate HTML5 Games in Internet Explorer 9 demo video (YouTube).

CES 2011: Using a browser to demonstrate the power of hardware [Jan 14]

AMD announced their new Fusion line of Accelerated Processing Units (or APUs) as we detailed in another post (check out the small size of the chip in the video!). At CES, Gabe Gravning from the AMD team walked us through how they used IE9 in their booth to demonstrate the power of Fusion.

In the latest in our series from CES 2011, Gabe Gravning from AMD takes us through two demos they used to showcase their new Fusion line of APUs (Accelerated Processing Units). The demos highlight the great performance Internet Explorer 9 beta delivers through its full hardware acceleration, using both the dual core CPU and integrated GPU on the Fusion chips.

Nvidia showed off some impressive graphics power at their booth as well. Besides showing some incredible 3-D gaming, and their one-of-a-kind “keg-puter”, Nvidia used IE9 to show off some of their new graphics chips. Dave Ragones from the Nvidia team gave us a demo.

In this video from CES 2011, we talked with Dave Ragones, director of product marketing at Nvidia, about the reasons they use IE9 to show off the power of some of their new graphics chips, the GForce 500-M series.

NVIDIA GeForce 500M Series GPUs Power Top Notebooks of 2011 [press release, Jan 4] (emphasis is mine)

NVIDIA today announced the GeForce® 500M series of notebook graphics processing units (GPUs), designed to power laptops featuring next-generation Intel Core CPUs (Sandy Bridge).

The new GPUs being introduced today include:

  • For performance users: GeForce GT 540M, GeForce GT 550M, and GeForce GT 555M with over four times the performance of integrated graphics and twice the DirectX 11 performance of the competition.
  • For mainstream users: GeForce GT 520M and GeForce GT 525M offering over twice the performance of integrated graphics.

New GeForce 500M Series GPUs Power Top Notebooks of 2011 [Jan 5] (emphasis is mine)

Today at CES, we announced our new lineup of GeForce 500M Series notebook GPUs that will be featured in the top notebooks of 2011 from your favorite OEMs including Acer, Asus, Dell, Fujitsu, Lenovo, Samsung, Sony, Toshiba, and more.

If you’re planning on buying a new notebook in 2011, look for one packing a GeForce GPU, which will deliver:

  • NVIDIA Optimus Technology: Optimus transparently switches between high-performance GeForce graphics and battery-sipping integrated graphics depending on the application.  With Optimus, you get the best of both worlds: great graphics performance with GeForce GPUs and great CPU performance, without sacrificing battery life.
  • Great GPU Performance: Whatever your performance demands, GeForce GPUs deliver.  From the new GeForce GT 520M with 2X the performance of integrated graphics (aka “Sandy Bridge”), GeForce GT 540M with 4X performance, to GeForce GTX GPUs for the best experience on the latest DX11 gaming titles.
  • Best HD Video, High-Res Photo, Web, and 3D experience: Beyond gaming, choose GeForce to accelerate your digital life.  Whether you’re editing HD videos or high-res photos, accelerating new HTML5 websites, or watching your favorite Blu-Ray 3D title, GeForce  GPUs add a powerful second processor to your notebook for media rich tasks.

In our booth (Las Vegas Convention Center, South Hall 3, Booth # 31431), we are showcasing a number of top notebooks from leading OEMs including:

  • Acer Aspire 4750G with GeForce GT 540M
  • Asus N53SV notebook with GeForce GT 540M
  • Dell XPS 17 3DVision notebook with GeForce GT 555M
  • Lenovo IdeaPad Y470 with GeForce GT 550M
  • And more…

Browser + hardware working together to deliver a richer web [Jan 4]

Today AMD launched Fusion, their new family of Accelerated Processing Units (APUs) – combination CPU/GPU chips used to power the PC, and they are using Internet Explorer 9 to showcase their new hardware innovation. So what does the launch of Fusion have to do with web browsing and how are they using Internet Explorer 9 to demonstrate this new innovation in hardware? We sat down to talk with John Taylor, Director of Client Product Marketing for AMD to find out.

Increasingly web applications today are becoming more interactive, graphically rich and video intensive. Most browsers today don’t take advantage of the modern hardware that comes in today’s PCs like multicore central processing units (CPU) or graphic processor units (GPU). Internet Explorer 9 uses the full power of the PC to deliver hardware accelerated video, text and graphics to bring you web experiences that are richer and more immersive.

In efforts complimentary to our approach in the browser, AMD’s Fusion chip integrates the CPU and GPU into a single chip that they call an accelerated processor unit or APU. By combining the two, AMD is able to deliver better performance for things like video and graphics on the web, in addition to decreased power consumption resulting in longer battery life. The new Fusion chips will be launched in a broad range of PCs from high-end desktops to ultra-mobile netbooks, some of which we’ll be using to demo Internet Explorer 9 this week at the 2011 Consumer Electronics Show in Las Vegas. And AMD created a set of rich web applications to showcase the graphic performance capability of Fusion through Internet Explorer 9.

We are thrilled to see this complimentary hardware innovation and even more thrilled to see AMD using Internet Explorer 9 to showcase the performance of AMD Fusion. Just seven months ago it’s unlikely you would have seen a hardware manufacturer use a browser to demonstrate a chip’s performance – the web has evolved!

Software and Hardware Ecosystem to Unleash the Power of AMD Fusion Technology [Jan 4]

“Personal computing is undergoing a significant evolution, fueled by the explosion of digital and multimedia content to enable a truly immersive web experience,” said Tami Reller, corporate vice president of Windows marketing, Microsoft. “We think the work AMD has done with Fusion to combine x86 CPU architecture and discrete-level graphics performance creates opportunities for Windows 7 and Internet Explorer 9 to deliver real-world customer benefits including accelerated browsing, HD video and 3D gaming.”

Graphics Acceleration is not just for Games Anymore [June 24, 2010]

This week in San Francisco, Microsoft released the Internet Explorer 9 (IE9) Platform Preview 3.  IE9 is revolutionary in that it will use the graphics processor to assist in the number # 1 activity of all computer users – surfing the web.

As 3D games for the PC continued to use Microsoft’s DirectX, APIs, hardware and games evolved in realism and complexity.  The current generation of DirectX is DirectX 11 (DX11).  AMD is the only company that currently offers a DX11 top-to-bottom stack of GPUs and in the near future, DX11 Accelerated Processing Units (APUs). DirectX features many different companies and the relevant graphics component is called Direct3D (D3D).  D3D is almost exclusively used for 3D Graphics for gaming today.

Here is where the divergence really happened…

As 3D games continued to push the envelope on the DirectX and the GPUs, mundane graphics tasks such as rendering the Windows desktop continued to use the CPU.  Applications like Internet Explorer, Microsoft Word and Microsoft Excel used the CPU to render text, lines, shapes and other graphics through a CPU based API called Graphics Device Interface (GDI).

One of the many reasons that simple graphics most often used the CPU and GDI for graphics was that it was a very simple API to use and the graphics load wasn’t anywhere near intensive as a 3D game.  As web surfing evolved, it followed in the tradition of CPU + GDI, utilizing an API that essentially remained unchanged since its definition in the 1980s.

Recognition of the 3D Power…

Smart people at Microsoft and other companies started realizing that the graphics power of the GPU can be used in applications beyond 3D Gaming.  As we saw with Windows Vista, the introduction of a 3D desktop with Aero Glass led to the use of the GPU for things like alpha-blending.

While Windows Vista did away with GDI, the revolution really happened with Windows 7.  Windows 7 introduced a new API called Direct2D (D2D).  D2D is essentially a wrapper around D3D.  With D2D, any application can call on the GPU to accelerate the rendering of things like lines, curves, text, graphics and any graphics primitives. The effect of using a GPU means potentially orders of magnitude improvement in performance over the antiquated CPU + GDI.

Microsoft’s Internet Explorer 9 is one of the first applications to use D2D.  The net result is a much faster rendering of webpages and graphics.  With IE9, the GPU is used extensively to accelerate the number 1 use of PCs today, web surfing.

Cynics may argue that there is no perceivable difference between CPU and GPU based rendering on webpages today.  However this is extremely myopic.  Today, webpages are designed for the “least common denominator,” with simple graphics to ensure that all end users have a good experience with load and render times.  In short, webpage graphics today are arcane and primitive versus modern 3D video graphics—by design.

As both GPU power and a great new API in D2D become available, web designers can be expected to  greatly improve the end users’ visual experience by harvesting this power and designing much richer and complex webpages.  History proves this to be true.  As we saw with 3D Gaming in the 1990s, once a common API was established, the complexity and realism of 3D gaming greatly improved in a very short period of time.

At AMD we are very excited about D2D and applications like Microsoft’s IE9.  We are excited because end users have an opportunity to use our GPU and AMD Fusion APUs in support of fantastic new APIs to greatly accelerate their web surfing experience.   Look for more updates from us on this area in the future.

Part the Clouds II: Cloudy with a chance of High Definition [Sept 27, 2010] (emphasis is mine)

On Sept. 13th I posted “Part the Clouds: AMD Fusion APUs Ideal for Cloud Clients.” I asserted that AMD Fusion APUs codenamed “Zacate” and “Ontario” are poised to be ideal cloud computing client platforms.  Today, I’d like to delve a little more into why, breaking my point of view into four main categories: Browsing, Video, Gaming and Internet Applications.

Browsing

Today consumers increasingly expect HD content, web pages and internet apps with rich media and interactivity. With those trends in mind, it makes sense that today’s lighter weight PCs are starting to struggle a bit with web browsing.  HD media and web browsing are outstripping the horsepower that traditional CPU cores in netbooks and thin and light notebooks can offer.

… “Zacate” is engineered to provide an even richer, faster internet experience to mainstream clients and ultrathins, while “Ontario” is designed to bring this experience to netbooks and ultra-small form factors.

Video

… The continued march towards ubiquity of Internet video, along with the shift to HD, has put the hardware industry in jeopardy of revisiting those early days of internet video when the experience was reliably unreliable. Today’s lighter-weight machines struggle with online video – think Hulu HD and similar services – and some consumer devices forgo the chore of processing whole categories of video on the Internet. Even more powerful mainstream machines aren’t quite ready for the next phase of the video revolution: very fast “coding”, enhancing the quality of non-HD video, and real time analytics.

Gaming

Did you know that 3 in 4 teens and 1 in 3 adults play computer-based games? If you didn’t know that stat, surely you’ve seen your Facebook newsfeed filled with updates from Farmville, Mafia Wars and other social games, or heard the buzz about new streaming gaming services like OnLive.  It all points to the fact that PC gaming isn’t going away due to the popularity of consoles; it’s evolving and becoming more popular than ever. And while many of these games aren’t nearly as taxing as the latest titles like Battlefield Bad Company 2, they are increasingly sophisticated and graphically intense, even if being played in the browser.

An easy way to help reduce the strain these games cause PCs is to write software utilizing the latest standards, and build hardware that can accelerate the experience through those standards, which effectively “removes middleware” from the equation. Our 2011 AMD Fusion APUs are designed to be ideal for online gaming, because they are engineered to support the latest in graphics and GPU compute standards, including DirectX 11, Direct 2D and DirectCompute. “Zacate” has been designed to enable both a good traditional PC gaming and online gaming experience, and the even lower-power “Ontario” was designed as an ideal platform for these emerging online gaming usage models.

Applications

Finally, the most interesting reason that “Ontario” and “Zacate” will be great for emerging cloud computing usage models: rich media application-like experiences are winning. The iPhone and Android have taught millions of consumers to expect application-like experiences when using the internet.  Until now, these types of experiences weren’t easily replicated – or exceeded — within the PC browser.

But in the last couple years, there’s been an avalanche of innovation in this space.  “Tear off” applications like Tweet Deck, which take internet browser experiences and turn them into stand-alone applications, have taken off, and browsers haven’t stood still, with all of them offering their own levels of interactivity.  A great example is the recent interactive music video for Arcade Fire’s new single “We Used to Wait”. (Note: you need to be using the Chrome browser to experience this).

With more and more consumers downloading millions of these applications on a daily basis, internet apps are only going to continue to evolve and become more innovative and resource intensive than ever. With the increased processing power that “Ontario” and “Zacate” offer to netbooks, ultrathins and mainstream clients, respectively, AMD-powered PCs are incredibly well positioned to help consumers enjoy these new application-like experiences with excellent battery life and visual quality.

AMD Launches AMD Fusion Family of APU Processors at CES [Jan 4]

This week at CES, AMD is launching their AMD Fusion family of Accelerated Processing Units (APUs). What’s an APU? An APU is the combination of the CPU and GPU into a single die. What AMD has done with their Fusion family of APU processors is to combine multi-core CPU (x86) technology with discrete-level graphics.

fusion_apu_scan

Update: The above image is a scan of a AMD CPU (top), a  mobile laptop CPU (middle) and a AMD Fusion APU (bottom) compared to a U.S. Quarter.

The graphics side of the Fusion APU is powered with what AMD is calling the VISION Engine. The VISION Engine consists of DirectX 11 capable graphics capabilities, a UVD3 video acceleration block (like the one found in the new AMD Radeon HD 6800 Series GPUs) for native mpeg-4, mpeg-2, h264, DivX decoding, and parallel processing designed to help speed up application performance. A PC with an AMD Fusion APU can take full advantage of hardware-accelerated web browsing with Internet Explorer 9 and Windows 7.

AMD Fusion APUs also come with AMD’s AllDay Power feature for about 10 hours (or more) of battery life. Fusion APUs are also virtualization-capable as well.

The 2011 low-power AMD Fusion APU platform (codenamed “Brazos”), designed for everyday computing for PCs like netbooks and other small form factor PCs, will come in 2 flavors: the E-Series and C-Series. These APUs come with AMD’s new x86 CPU core codenamed “Bobcat”. Later in 2011, the A-Series will hit designed for mainstream laptops and desktop PCs (codenamed “Llano”) which will have up to 4 x86 cores.

At CES, AMD expects many of the major PC OEMs to announce PCs with AMD Fusion APUs. Ben Rudolph will be stopping by to visit AMD to check out Fusion first-hand later this week. Ben will be behind-the-scenes at CES all week this week.

For more information on the AMD Fusion family of APUs, click here. You can also check out their press release here and quotes from their partners here.

Canadian Contributions Power Revolutionary AMD Fusion Processors [Jan 13] (emphasis is mine)

Today at the Ontario Science Centre, AMD (NYSE: AMD) celebrated the launch of a new class of accelerated processor that combines more compute capabilities than any processor in the history of computing. Featuring major technology contributions from AMD’s Markham, Ontario R&D facility, the AMD Fusion Family of Accelerated Processing Units (APUs) incorporate multi-core CPU (x86) technology, and a powerful DirectX(R) 11-capable graphics and parallel processing engine within the design.

AMD Fusion APU-based Systems

— The AMD Fusion chip delivers an unprecedented experience starting with thin and light notebooks, as well as small form factor desktops: stutter-free HD video playback, breakthroughs in computational horsepower to handle the most demanding applications(ii), and all-day battery life(iii).

— New desktop, notebook and HD netbooks based on AMD Fusion processors are now available at affordable price points from Acer, Asus, Dell, Fujitsu, HP, Lenovo, MSI, Samsung, Sony and Toshiba.

Tablets and embedded designs based on AMD Fusion APUs are expected be available later in Q1 2011.

(ii) Based on performance per watt comparisons between AMD Fusion APUs and the AMD Athlon(TM) II P320 CPU combined with the AMD Mobility Radeon(TM) HD 4250 GPU. In testing conducted by AMD performance labs, AMD Fusion APUs demonstrated the following: A-Series — up to approximately 500 GFLOPS; E-Series/C-Series — up to approximately 90 GFLOPS at 18/9 W. In comparison, the AMD Athlon(TM) II P320 CPU and AMD Mobility Radeon HD 4250 GPU deliver a combined total of 74 GLOPS at 38 W.

(iii) In testing conducted by AMD performance labs the 2011 Low Power platform reference design “Zacate” E-350 demonstrated up to 658 minutes or 10.96 hours “all-day” battery life while idle and up to 258 minutes or 4.34 hours as an “active” metric using 3DMark ’06. The reference design consisted of an AMD Dual-Core Processor E-350, 1.6Ghz 2C, 4GB (2x2GB) DDR3-1066 system memory 11.6″ display @ 1366×768, Windows 7 Ultimate 64-bit, 62Whr Li-Ion battery. The 2011 AMD C-50 Dual-Core Accelerated Processor demonstrated up to 735 minutes or 12.15 hours “all-day” battery life while idle and up to 378 minutes or 6.18 hours as an “active” metric using 3DMark ’06. The reference design consisted of a an AMD Dual-Core processor C-50 1.0Ghz 9W, 2GB (1x2GB) DDR3-1066 system memory, AMD Radeon(TM) HD 6250 Graphics with 10.1″ @ 1024×600, 6-cell Li-Ion, 62.2 Whr battery. LED Backlight Windows 7 Home Premium 64-bit. All testing performed using a 6-cell Li-Ion, 62.2 Whr battery. AMD defines “all day” battery life as 8+ hours of idle time.

AMD Fusion APU Era Begins [Jan 4, AMD press release]

New generations of desktop, notebook and HD netbooks are now available based on AMD Fusion APUs at affordable price points. Tablets and embedded designs based on AMD Fusion APUs are expected be available later in Q1 2011. The new range of products features include stutter-free HD video playback, breakthroughs in computational horsepower to handle the most demanding applications2,  DirectX 11-capable graphics and all-day battery life.1

AMD expects leading manufacturers Acer, Asus, Dell, Fujitsu, HP, Lenovo, MSI, Samsung, Sony and Toshiba to announce plans to deliver AMD Fusion APU-based systems at very compelling value and mainstream price points.

HD 2.0 Everywhere

High definition (HD) content is ubiquitous today. From YouTube videos to DirectX 11 games to Blu-ray, the world is tapping into various ways to enjoy this content with the computer serving as the hub. And thanks to the VISION Engine from AMD, a set of capabilities unique to all AMD Fusion APU-powered PCs, the visual side of computing never looked more vivid and realistic. The VISION Engine is an unmatched combination of:

  • DirectX 11-capable graphics
  • Massive parallel processing to speed application performance3
  • The UVD3 video acceleration block found in the new AMD Radeon™ HD 6800 Series GPUs
  • Unique graphics driver capabilities updated on a monthly basis to continuously improve visual performance

Selecting a PC equipped with the VISION Engine and software from AMD partners means Internet browsing is a faster, application-like experience; 1080p HD video playback is gorgeous, smooth and quiet; standard definition video looks high-definition; 2D content can be converted into stereoscopic 3D; even the most graphics-intensive websites load quickly; manipulating HD content is fast and easy; and 3D gaming at HD resolutions is fast and life-like.4

Personal Supercomputing

Much of a computing experience is linked to software and, until now, software developers have been held back by the independent nature in which CPUs and GPUs process information. However, AMD Fusion APUs remove this obstacle and allow developers to take full advantage of the parallel processing power of a GPU – more than 500 GFLOPs for the upcoming A-Series “Llano” APU  – thus bringing supercomputer-like performance to every day computing tasks. More applications can run simultaneously and they can do so faster than previous designs in the same class.2

AMD AllDay™ Power

Additionally, AMD Fusion technology enables all-day battery life – 10 hours or more.1 The new power-saving features present in the single-chip design greatly extend the time between plug-ins, even when enjoying HD content.

AMD Accelerated Processors for Ultrathin Notebook PCs, Product Specs:
– E350 and  E240 (former codename: “Zacate”) with 18W TDP, designed for mainstream notebooks, All-in-Ones, and small form factor desktops
– C50 and C30 (former codename: “Ontario”) with 9W TDP, designed for HD netbooks and other emerging form factors
– each with 80 Radeon shader cores on die

AMD Accelerated Processors for All-In-One Desktop PCs, Features and Benefits: currently only the E-350

Entertainment

Enjoy and share full HD content effortlessly

  • Smooth and vivid HD video playback
  • Quick Web browsing and media playback1
  • Super-sharp photos and crystal-clear images
  • Good everyday gaming experiences

1In testing conducted by AMD Performance Labs, the AMD Fusion Processor E-350 showed up to 3 times faster performance, with hardware acceleration on, Microsoft Internet Explorer 9. (29 FPS vs 7) and Firefox 4 using Direct X 9 and Direct2D as compared to hardware acceleration off.

AMD Meetings: APUs Make a Big Splash [AnandTech, Jan 7] (emphasis is mine)

We also had a visit with AMD at their meeting rooms, which were filled with product demonstrations. Brazos laptops and netbooks occupied a large area just inside the door—we counted at least 20 different laptops of varying sizes and capabilities. The vast majority of there were running an AMD APU, in this case Brazos. There were 10” E-350 netbooks, 11.6” E350 ultraportables, and even 14” to 15.6” solutions all using the power friendly APU. A few of the systems also had K10.5 CPUs with the new 6000M GPUs (we’ll get to those next). Browsing around the show floor, though, Brazos looks to be making some real waves, providing a compelling alternative to Atom in the sub-$500 netbook market. In the next couple of months, we should see a lot of Brazos systems, from small nettop/desktop systems to netbooks… and yes, tablets as well. AMD reports battery life of up to 12 hours on some of their test netbooks; the reason they’re able to get such long battery life is pretty simple:

Intel’s Atom is a fairly tiny chip, but even though it manages to sip power, it’s not a very attractive performer. Brazos is even smaller than Atom, in part thanks to the use of 40nm (Brazos) vs. 45nm (Atom), and while raw CPU performance may not be that much higher than the current Atom options, the DX11 GPU is an order of magnitude more powerful than the GMA 3150 found in Pine Trail. AMD mentioned at one point that the Brazos APU is rated at up to 90GFLOPS of compute performance; to put that in perspective, the new quad-core Sandy Bridge CPU (no word on the GPU in SNB) provides a similar 87GLOPS of compute potential. GFLOPS isn’t the most useful of measurements, but it does help to put things in perspective: similar compute potential in a package that has an 18W TDP (E-350), where i7-2600K is specced at 95W.

AMD is aiming the new E-series Zacate parts at Intel’s P6000 processor, while the C-series is gunning for Atom.

… Sadly, not a single netbook or laptop stands out as being clearly superior to anything else out there. Performance looks good, aesthetics vary from okay to great depending on your point of view, but the LCDs are all same-old, same-old. It would be awesome to see ASUS or HP or some other manufacturer step up to the plate and deliver a Zacate ultraportable with a beautiful screen—you know, like the IPS stuff they’re putting into $400 tablets? After all, the APU is now able to provide all the multimedia prowess you could ask for; why not give us a display that can make the content shine?

AMD promises all day battery life with Fusion chips [Jan 4] (emphasis is mine)

Bob Grim, director of AMD product marketing told TechEye: “What’s really different is that for the first time there is a product that brings both X86 and 3D graphics together on a die. “

Semiconductor companies normally bring in CPUs at the high end and normally they fall in price over a period of time.  AMD is bringing Zacate and Ontario for the volume market for machines between $200 and $500. Ontario will be between $200-$300, Zacate $399-$499. Perhaps this is because the Llano chip, manufactured by GlobalFoundries, was delayed somewhat.

Application developers can code their apps to OpenCL and optimise code to get the best out of the hardware, said Grim.

When the Llano (A-Series) comes out, it will deliver 500 GFLOPs. AMD claims that’s 33 times more than a single CPU had two years ago. The  Intel P6000 only provides 6h24m, while AMD’s  E-350 will give 10h40m of battery life.  Ontario, the C-Series, will give over 12 hours of battery life – that’s a resting battery life number. It has a 60 percent better performance than the Intel Atom CPU, AMD claims.

AMD will hold its first software developer summit on June 14-16, 2011 – in Bellevue WA, said Grim.

Xbox and Surface 2 additional information

Xbox Momentum Rolls On: Xbox, Kinect Help Microsoft Connect with Consumers [Jan 6]

The sales figures released at the 2011 Consumer Electronics Show made it official: Kinect has connected with consumers.

Over the past two months consumers have snatched up Kinect almost as quickly as retailers have stocked the shelves, according to sales figures Microsoft reported Wednesday at 2011 CES. Since its release on Nov. 4, more than eight million Kinect sensors have been sold. That figure easily outdistances the five million unit forecast the company had predicted to sell during the sensor’s first 60 days.

Kinect for Xbox 360 was a big hit with consumers over the 2010 holiday season, with eight million sensors sold over a 60-day period.

Kinect for Xbox 360 was a big hit with consumers over the 2010 holiday season, with eight million sensors sold over a 60-day period.

The wild ride to close out 2010 capped the “biggest year ever” for Xbox, said David Dennis, group public relations manager for Xbox. Over the holiday season, console sales for the Xbox 360 hit 50 million. It also was the No. 1-selling console in North America over the past six months. Meanwhile, the Xbox LIVE community continued to grow strongly overall in 2010, adding a new member every two seconds. Xbox LIVE now has more than 30 million active members.

Dennis said the announcements made at CES, including new Kinect-enabled entertainment experiences and new Xbox LIVE gaming titles, signal that the momentum behind Xbox should continue through 2011.

“It used to be you would go buy this piece of plastic and put it under your TV, and five years later it’s the exact same thing that you bought at the store,” he said. “I think Microsoft has shown the ability to innovate and bring new experiences like Kinect as well as Netflix, Hulu, and ESPN, all leveraging Xbox LIVE, to continue to reinvent what you think of as the Xbox. You turn it on, and we continue to update it, keep it fresh, and bring new features.”

Kinect Transforms Entertainment in the Living Room

Kinect is a prime example of how natural user interface (NUI) is transforming gaming by making it more social and approachable than anyone ever thought was possible, but it’s just the beginning, Dennis said. Several CES announcements showed how Microsoft will take Kinect’s controller-free experience beyond gaming and into entertainment throughout the year. This spring, for example, Xbox LIVE Gold subscribers will be able to use Kinect to control Netflix on Xbox LIVE. Viewers will be able to pause, rewind, and fast-forward streaming movies with only their voice or gestures.

The company also announced that Hulu Plus will be coming to Xbox LIVE as a Kinect-enabled experience this spring. As with Netflix, subscribers will be able to use controller-free motion and voice capabilities to instantly watch full-screen popular TV shows anytime in HD.

Also at CES, the Xbox team introduced a new social experience called Avatar Kinect that will use Kinect’s camera and sensor to bring a player’s avatar to life. It leverages Kinect’s facial recognition technology to let a person control their avatar’s movements and expressions; when they smile, frown, nod and speak, the avatar will do the same, Dennis said.

With Avatar Kinect, a player can invite up to seven friends to join them in one of 15 imaginative virtual environments. One of those worlds is a performance stage, where friends can record their performance and share with friends.

New Gaming Experiences Span Platforms

Microsoft’s Interactive Entertainment Business (IEB) team’s focus at CES wasn’t limited to Kinect. It also highlighted its ongoing efforts at developing a strong portfolio of games across all its platforms, including the PC and Windows Phone 7.

Avatar Kinect uses Kinect’s camera and sensor to bring a player’s avatar to life. With Avatar Kinect, a player can invite up to seven friends to join them in one of 15 imaginative virtual environments, including a stage or a tailgate party.

More about games for Xbox and Windows Phone 7.

CES 2011 Press Kits – Xbox.com — Xbox, 2010 Year in Review; Kinect Entertainment Experiences; Kinect; Kinect for Xbox 360 Games; Xbox 360 and Xbox LIVE Arcade Games; Xbox 360 Games for Windows; Windows Mobile Games

Microsoft and Samsung Unveil the Next Generation of Surface [Jan 6]
Samsung SUR40 for Microsoft Surface uses new technology that gives large displays the power to see.

At the 2011 International CES in Las Vegas, Samsung Electronics Co. Ltd. and Microsoft Corp. unveiled the next generation of the Microsoft Surface experience featuring PixelSense technology, which gives LCD panels the power to see without the use of cameras. Building from the innovation of the first version of Microsoft Surface and Samsung’s leading display technology, it is now possible for people to share, collaborate and explore together using a large, thin display that recognizes fingers, hands and other objects placed on the screen. This experience will come to life in the Samsung SUR40 for Microsoft Surface for business customers later in 2011 in 23 countries. Dassault Aviation, Fujifilm Corp., Red Bull GmbH, Royal Bank of Canada and Sheraton Hotels & Resorts Worldwide Inc. announced that they will deploy the new product.

“Microsoft continues to innovate in vision-based interaction and software designed for touch. With the introduction of the next generation of Surface, using PixelSense technology, we’ll bring more tables and walls to life with amazing natural experiences for people to enjoy together,” said Panos Panay, general manager, Microsoft Surface. “We partnered with Samsung because of its strengths in LCD technology, hardware design and manufacturing, and worldwide marketing and sales of large-format displays. The companies have built an incredibly successful collaboration that moved from invention to development to manufacturing and sales of a high-quality, industrialized commercial product.”

“Samsung collaborated with Microsoft to bring the Surface experience to a new, thin design with powerful vision-based capabilities in the LCD market. The Samsung SUR40 for Microsoft Surface delivers an interactive experience not available anywhere else and will change the way companies engage with their customers,” said Jeong-Hwan Kim, senior vice president of Display Sales & Marketing team at Samsung Electronics.

Learn more about the next generation of Surface, Samsung SUR40 for Microsoft Surface, featuring new technology that gives LCD panels the power to see without the use of cameras. Samsung SUR40 also features key hardware and software advancements that were largely informed by feedback from users around the world.

Product Details

Samsung SUR40 will bring companies around the world new ways to help drive sales, showcase their brand, and increase customer satisfaction and loyalty. The product features include these:

PixelSense. PixelSense gives an LCD display the power to recognize fingers, hands and objects placed on the screen, including more than 50 simultaneous touch points. With PixelSense, pixels in the display see what’s touching the screen and that information is immediately processed and interpreted.

Microsoft Surface software. Microsoft Surface software provides business customers with a premier touch-first experience for their end users, built on the principles of direct interaction and together computing, with a new look and feel. It also allows commercial application developers to use a new version of the Microsoft Surface SDK and familiar Microsoft development tools to take full advantage of the massive multitouch and object recognition capabilities of PixelSense and deliver experiences not possible on any other platform.

Designed for commercial environments. The product is designed to meet the challenges of active usage in demanding locations such as retail, hospitality and education.

Thin form factor with multiple configuration options. The product is four inches thin, which makes it easy to use horizontally, hang vertically with the VESA mount, or embed in walls or custom enclosures. Standard legs are available or customers can design and attach their own.

Forty-inch full high-definition (HD) 1080p screen. The 40-inch screen enables unparalleled multi-user experiences in full HD 1080p, with a 16:9 aspect ratio and 1920×1080 resolution.

Powerful embedded system. The product uses the embedded AMD Athlon™ II X2 Dual-Core Processor 2.9GHz paired with the AMD Radeon HD 6700M Series GPU featuring DirectX 11 support to deliver significant processing horsepower and outstanding graphics capability.

Pricing and Availability

The manufacturer’s suggested price for Samsung SUR40 starts at $7,600 (U.S.). Samsung SUR40 will be available later in 2011 in 23 countries: Australia, Austria, Belgium, Canada, Denmark, France, Germany, Hong Kong, India, Ireland, Italy, Korea, the Netherlands, Norway, Qatar, Saudi Arabia, Singapore, Spain, Sweden, Switzerland, the United Arab Emirates, the United Kingdom and the United States.

Video: The New Microsoft Surface Experience
The brand new Microsoft Surface Website just launched
The Microsoft Surface Blog
Product Datasheet
Surface on Twitter
Surface on Facebook

Windows Embedded Standard 7: the first wave of OEM partners exploiting the included Windows Media Center

Microsoft Showcases OEM Partners Shipping Connected Media Devices at CES [Jan 6] (emphasis is mine)

At the show, Windows Embedded will use a walk-through “connected living room” environment to feature innovative products from several of its global partners including Haier, Reycom, Prime Time, Acer Gateway and Evolve. These devices work with Microsoft technology such as Windows Phone 7 and Windows Home Server to create a media experience that delivers more than the sum of its parts. By using connected media devices built on Microsoft products together, consumers will be able to merge multimedia content from various sources and locations such as the Internet and broadcast TV, social media portals, and personal libraries of photos, music and videos. All of this content comes together in a centralized entertainment hub that’s accessible by other Windows powered devices throughout the networked home.

Evolve Media, a custom media server manufacturer from the United Kingdom, is announcing all-new embedded software media servers designed for integration into the connected home. The new software platform, dubbed “PRIME,” brings Windows Embedded Standard 7 technologies to Evolve’s award-winning “life” range of products, including the lifeStation, the lifeStream, the lifeStream Mini and the lifeStore home server.

Reycom is presenting the REC®100, its next-generation hybrid set-top box based on Windows Embedded Standard 7 using high-performance components from Intel® and NVIDIA®. Users can enjoy live TV in HD with time-shift, and access to the Internet providing a wide range of films, TV shows, gaming, Internet TV, music, and apps such as weather and YouTube.

Much of this content can be stored and played with the REC 100’s integrated hard disk and DVD or Blu-ray player. The REC‘s multiroom features allow users to transfer videos, music and pictures between the REC and their personal computers, home server, and Windows Phone 7 — plus, they can use Xbox 360 as a Media Center Extender. The REC can be controlled by the supplied remote control or through a Windows Phone 7 handset. Reycom will launch REC’s U.S. retail version in the first quarter of 2011, followed by dedicated versions for U.S. cable operators and U.S. telecom company operators by mid-2011.

Windows Embedded Fact Sheet [Jan 5]

Windows Embedded Standard 7 brings the technology and rich user experiences of Windows 7 to Enterprise and media centric devices. Its enhanced features and familiar tools help OEMs make the journey from concept to creation faster than ever. Visit www.windowsembedded.com/standard.

CES brings wave of connected media devices thanks to Windows Media Center in Windows Embedded 7 [Jan 13] (emphasis is mine)

Most consumers may not know what Windows Embedded is, although many of you have interacted with it somewhere along the line. Windows Embedded is a componentized version of the OS that we offer to manufacturers who can then optimize it for use in specialized devices. It runs everything from automotive systems to retail point of sale machines, digital signage and industrial equipment.

So last April, when it was announced that the latest version – Window Embedded Standard 7 – included the Windows Media Center feature, not too many consumers took notice. Over on TheGreenButton.com, however, our enthusiast community certainly did.

With Windows Media Center as a key feature of Windows Embedded, manufacturers can now design set-top boxes and other fit-for-purpose devices that provide the Windows Media Center experience directly out of the box. A product like that has the potential to bring all sorts of content together into one crisp, living room friendly experience. For consumers this means that with one box, you can access Internet-based content, social media, broadcast TV, as well your own pictures, music and movies, but without the set-up, planning and system building that has marked Windows Media Center adoption to date.

Sure enough, last week at CES we saw the first wave of such products from the likes of Haier, Reycom, Prime Time, Acer Gateway and Evolve, all of whom are using WES7 to do innovative things with connected media devices and set-top boxes, creating a centralized hub for your entertainment experiences.

The first box we can anticipate seeing in the US may well come from Swiss company Reycom, which plans to bring its REC 100 set-top box to the US in the first quarter of this year. The unit sports dual ATSC tuners for HD over-the-air TV, and has a BluRay player option. (Pricing and availability details are still being determined.)

06-15reycom_lg

Above: A new set-top box: Reycom’s REC100 is expected to arrive in the US in Q1, 2011.

I was also excited to see the embedded offerings from the UK’s Evolve Media, in part because I had a chance to check out their media servers and take in a presentation by Evolve’s David Simpson on best practices for building a great HTPC this past June at the UK Windows Media Center-Windows Home Server Meet up. Evolve makes absolutely beautiful machines, so I’m excited to see them now working with Embedded.

Haier also piqued enthusiasts’ interest with a TV that has Windows Media Center built in. Michael “Mikinho” Welter, one of our Windows Entertainment and Connected Home MVPs, checked it out for Missing Remote.  Missing Remote’s Mike Garcen (also an MVP!)  provided this summary of HTPC-news from CES, here.

A preview of a unit from Acer Gateway got a lot of attention because it was rocking a CableCARD™ tuner from Ceton that supports up to six streams of HD broadcast content. Ian Dixon, another Windows Entertainment and Connected Home MVP, checked it out on video, here, and got a good look at some other embedded devices, here. Ian’s CES coverage is always must-see, must-read for an enthusiast.

And speaking of CableCARD™, CES was also the first time we saw folks get hands-on with the forthcoming HDHomeRun Prime, a networked CableCARD tuner from Silicondust that supports three streams of channel tuning goodness.

So while many of you may not have heard of Windows Embedded before, the coming year looks to offer some great connected media products for you to check out. One last note for those of you who are aspiring system builders – you can check out the preview version of Windows Embedded 7 SP1, here.

The home theater PC is dead, long live Windows Media Center [Jan 14]

There has been a lot of discussion in the Windows Media Center community about the product’s death. The theory is that Microsoft is throwing in the towel, focusing on the Xbox 360 and intends to let the best DVR software available become stale — or worse, eliminate it from future versions of Windows altogether. After watching the Ballmer keynote at CES last week, it was hard not to get on this train as we all watched the 360, Windows Phone 7, and Windows highlighted on stage. But then something happened when the show floor opened: Windows embedded products were highlighted in private meetings and elsewhere. There was a buzz around Media Center embedded and even a price and ship date; meanwhile, home theater PCs got no love. So after years of trying, it appears that all hopes that HTPCs will ever emerge from their niche status are gone, but the same can not be said for Windows Media Center.

The demise of HTPCs is not for a lack of effort

Microsoft has tried as hard as anyone to make this geek dream come true, with multiple versions of Media Center and money dumped into R&D trying to entice programming providers in the US and the rest of the world to bring their programming to Windows. … the problem is there’s no mainstream market for an HTPC, so realistically-speaking, another few billion dumped into marketing wouldn’t have changed a thing (c.f. Kin). Consumer electronics have to be like an appliance, they just need to work.

Why an embedded Media Center just makes sense

… What’s new is that Microsoft ported its Media Center software to the latest embedded version of Windows and is giving hardware partners the chance to build a DVR without spending all the big bucks on developing software. This means that some entrepreneurial electronics manufacturer can grab off the shelf parts, add in a little of Redmond’s software and deliver a dependable DVR to mainstream America — in theory.

Extenders vs set-top-boxes

Now, this is where things get interesting. Microsoft tried a few times to proxy the PC into the living room via Extenders and suffice to say the attempts all failed pretty miserably — same goes for embedded devices, by the way. Maybe the hardware wasn’t ready, who knows, but what we do know is that two Media Center PCs don’t play well together with DRM’d content and if more than one Media Center in the house has a tuner, things can messy real quick. There have been a few recent changes in the content world that could really impact success here though. …

What does Microsoft, Comcast, Timer Warner Cable, CableLabs, and just about every major movie studio have in common? They are all a member of the Digital Entertainment Content Ecosystem and have vowed their support to UltraViolet. We know that joining a group and actually participating are two different things, but it isn’t out of the question that UltraViolet’s new DRM could be added to the CableLabs spec. This would mean that “each household will be able to create an account for up to six members who can access the household’s UltraViolet Movies, TV… Consumers will also be able to register up to 12 devices.” This new tech won’t be ready until later this year, but it does offer hope that DRM might not always be this bad, some day.

Wrap-up

It’s going to take more than Reycom, Acer / Gateway, and Haier to make this thing take off, but it isn’t hard to let your imagination wonder on where this all could go. It would also be hard to argue that this isn’t Microsoft’s strongest position in the DVR market yet, and while anything could happen, we say long live Media Center with confidence. Who knows, if things go well, all the other previous promising developments for Media Center that never were, might find their way to market too. Then again, we’ve been wrong before.

Hanvon – E-Ink strategic e-reader alliance for price/volume leadership supplementing Hanvon’s premium strategy mostly based on an alliance with Microsoft and Intel

Following the strategic alliance between Marvell, Pixel Qi and OLPC on extremely low-cost consumer devices specially built for the cloud there are other cloud related alliances aimed at mass produced clients with sun readability. One of them is the Hanvon – E-Ink alliance which is the most visible and product-wise the most developed one. Such a strategy is also quite well supplementing Hanvon’s premium strategy which is mostly based on the Microsoft platform. Its cooperation on the new convertible classmate PC design with Intel is also going sharply against the Marvell, Pixel Qi and OLPC effort. Hanvon’s approach is also well aligned with component technology makers (such as Epson Seiko) tightly cooperating with E-Ink to sharply increase the quality and refresh rate of electrophoretic display (EPD) technology in 2011. See the latest update:  E Ink and Epson achieve world-leading ePaper resolution [May 23, 2011]

Worth to read along with this: Gartner: media tablets are the new segment next to mobile PCs and desktops, as well as web- and app-capable mobile phones [April 16, 2011]

Regarding E Ink Holdings’ market position see the Undermining E-Ink and single-purpose E-readers [Aug 23, 2010 – Jan 10, 2011] report. What follows here is mostly summarizing Hanvon’s (Hanwang’s) position and future plans/opportunities.

Hanvon turns to e-book reader solutions combining hardware and software [Dec 28]:

As China-based e-book reader maker Hanvon Technology has recently achieved sales over one million units, the company plans to expand its business model from only selling hardware to providing solutions that combine hardware and software, according to an executive of Hanvon.

Hanvon is optimistic about the sales of e-book readers in 2011 and believes the company will have better shipment growth than the market average. However, the company declined to give a forecast.

Sources from upstream component makers also pointed out that despite consumer purchases of e-book readers in China are in fact increasing, 40% of the e-book reader sales in China are still contributed by government or enterprises, as they are giving the devices away as gifts. Since the contribution from these procurement orders are difficult to estimate, therefore Hanvon was unable to give a forecast for its performance.

As for tablet PCs, since Hanvon currently still cannot find an advantage in the market, the company will maintain its focus on e-book readers.

The e-book reader market: Q&A with E Ink chairman Scott Liu and Hanvon chairman Liu Yingjian (Part I) [Dec 20]

E Ink Holdings (EIH) – formerly Prime View International (PVI) – is the global leader of the electrophoretic display (EPD) market, while Hanvon is the leading vendor of e-book readers in China. … The E Ink chairman believes the e-book market will have high growth for the next 10 years, while his Hanvon counterpart thinks there should be more China e-book reader brands. …

Q: Can you talk about the current development and cooperation between EIH and Hanvon.

image

Scott Liu: EIH has improved the whiteness, contrast ratio and color performance of the new color EPD. Hanvon is handling the overall product design, and they will focus on special markets such as educational institutions, private companies and government offices for the color e-book reader.

Liu Yingjian: EIH and Hanvon have been working together for many years. I would like to pay my respect to EIH, which decided to explore the potential of e-paper, including the acquisition of E Ink in order to have a tight control of the supply chain, when most people in the market were skeptical about such a sector.

Our expectations for e-book readers are firstly demand from paperless offices and then the educational market. Paperless demand is huge, as vendors do not have to worry about content, and it fits the current popular trend of low-carbon life-style. In the educational market, bookbags are too heavy for students, and there will be huge demand.

Q: Will Hanvon and EIH have further cooperation in the educational market in the future?

Liu Yingjian: We have had several meetings regarding the educational market, and we’ve concluded that there are several lines that we cannot trespass.

Hence we have several proposals for promotions in the educational market, First, we will focus on the regions with better economic development as consumers in these regions have the means to purchase e-book readers. Second, we will focus on non-textbook reading materials as wealthy families may purchase the products for their children. Third, we will run trials at junior high schools, universities or some other grades. I believe the educational market will be substantial in 10 years.

Regional trials have been a success, with Shanghai being the most active region. Shanghai is the richest area in China with the highest GDP, and the municipal government has made a five-year plan to popularize the use of e-book readers for educational purposes, and a lot of preparation work needs to be done.

Q: Is there a concrete plan regarding cooperation between EIH and Hanvon for the educational market?

Liu Yingjian: The color e-book reader using EIH’s EPD will be tried out by a class of 500 students in Shanghai in the semester starting in September 2011. But trial use of e-book readers in classroom has already started in Yangzhou. We are now able to meet the two basic requirements for the educational market: color display and handwriting input.

The e-book reader market: Q&A with E Ink chairman Scott Liu and Hanvon chairman Liu Yingjian (Part II) [Dec 21]

Q: There are companies like Foxconn in Taiwan that have introduced e-book readers for students using TFT LCD panels or Mirasol displays from Qualcomm. What’s EIH’s opinion about the competitiveness of other technologies? What is Hanvon’s evaluation of other technologies?

Scott Liu: In fact, other technologies are not mature yet, while EIH has already introduced its color EPD, which is ready for mass production. But as far as I know, makers using other technologies usually will introduce products when the technologies are still at the lab-development phase, and it will be impossible for them to reach mass production in just a few months.

Q: What does EIH think about Qualcomm’s investment in Taiwan in the future, and the fact that Qualcomm will soon start mass production?

Scott Liu: Based on my understanding of Qualcomm’s technology, there are some difficulties for mass production. Even if Qualcomm starts mass production, it will still not able to compete with EPD due to high cost, especially with the high investment amount for setting up a new 4.5G plant, and the depreciation cost could kill a newly developed business.

On the contrary, EIH is mass producing its EPDs on fully depreciated production lines. It has recently added a 5G line and possibly will add a 6G line in the future. EIH has absolute advantage in terms of production capacity. I think there may be a market for Qualcomm’s display products, but judging from its volume production cost, Qualcomm will probably focus on high-end applications.

Liu Yingjian: It is a challenge to produce reflective display products, but it have been proven successful in black and white displays. However, color displays based on reflective technology remain a big challenge for production. But a lot of people commented that the performance of our color EPD displays exhibited (at FPD International) was of high standard.

The products we have launched are better than colored newspapers, but are still worse than magazines and TVs. The color performance of color e-paper is not as rich as TFT-LCD, but what’s more important is that color e-paper does not have side effects on our eyes.

Q: Any other expectations for color e-book readers?

Scott Liu: The basic application for color e-paper is still the e-book reader, and we don’t think that we should sacrifice the quality of black-and-white while doing color. The present color EPD is the first version, which means it is a product that meets the basic EIH standard, and the company will continue to improve the product.

The present color EPD uses color filters. We are making maximum use of the high-reflectivity characteristic of color filters, but this is only the short-term solution. For the long-term solution, we still hope to develop a particle-based electrophoresis technology to dislay colors without color filters. The development will take a longer time, and I expect some achievements in the next few years.

….

image
Source: Digitimes Research, December 2010

Part I. The e-reader market

E-paper maker announces income spike [Aug 11]

Sales of global e-readers are expected to double to 20 million units next year as retail price has fallen to less than US$200 plus contract service

Global sales of 20-25 million e-book readers projected for 2011, says E Ink chairman [Oct 28]

Global e-book reader sales in 2010 are expected to reach 10 million units at least, and the forecast for 2011 is upward adjusted from 18 million units originally, to 20-25 million units, according to chairman Scott Liu for Taiwan-based E Ink Holdings.

e-Reader Market Will Reach 54M Units in 2015 by Displaybank’s e-Reader Industry Trend and Market Forecacast [Nov 16]

Tapping educational e-book reader market needs 2-3 years, says E Ink chairman [Aug 18]

Liu indicated that the Shanghai government aims to replace printed textbooks with e-books in five years, while the Korea government also plans to do the same by 2014.

EIH currently is the supplier of e-book readers in a trial program for adopting e-books at school in Jiangsu, China, Liu added.

Although some countries are stepping up efforts promoting e-reading in schools, it may take years before e-books can really start replacing printed textbooks, as the process involves so many different sectors ranging from content, hardware, platform development to government policies, market observers said.

Global e-book reader shipments to be 2-3 times higher in 2H10, says E Ink chairman [Aug 11]

Price-cut competition for e-book readers among global vendors including Amazon, Barnes & Noble, Sony and Hanvon is expected to stimulate demand in the second half of 2010, with total shipments expected to be 2-3 times those in the first half, according to Scott Liu, chairman of Taiwan-based EPD (electrophoretic display) maker E Ink Holding.

Liu indicated that with the prices for e-book readers dropping significantly, players who only produce e-reading devices with no content support are coming under threats of being forced out of the market by the first-tier players such as Amazon and Barnes & Noble who will continue to dominate the market.

E Ink added that clients are now able to run pricing campaigns because their EPD orders have already reached the agreed amounts, allowing them to have discounted prices, Liu said, adding that his company is happy to offer the discounts to help stimulate growth of the e-reading market.

Amazon’s latest 6-inch Kindle without 3G connection only costs US$139, reaching the pricing sweet spot, and it is expected to generate significant growth for the vendor, he said.

Liu said that vendors will soon be able to provide sub-US$100 e-book readers judging from the market growth, and E Ink will help clients further lower the production costs.

Global e-book reader shipments fall short of forecast in 2Q10, says Digitimes Research [July 28]

A total of 1.35 million e-book readers were shipped to the global market in the second quarter of 2010, 33.2% fewer than the originally projected 2.02 million units, chiefly because shipments of new models were delayed to the third quarter, according to Digitimes Research.

Two other factors also prevented shipments from reaching the target. Telecom carrier China Mobile Communications’ subsidized sales of e-book readers were weaker-than-expected in the China market, and volume shipments of SiPix’s e-paper solutions were delayed.

Digitimes Insight: China e-book reader market smaller than expected in 2010 [July 14]

Digitimes Research has downward adjusted its 2010 projected total e-book reader shipments in the China market from 1.5 million units originally to 900,000-1 million units, as China Mobile Communications’ subsidized sales of its e-reading device have so far been much below expectations.

China Mobile Communications originally planned to procure one million e-book readers for subsidized sales in the China market in 2010, but the company actually only purchased 30,000-40,000 units in the first half of 2010, Digitimes Research noted.

Worldwide e-book reader shipments to reach 28 million by 2013, says Digitimes Research [March 24]

Global e-book reader shipments will increase from 700,000 units in 2008 to 28 million units in 2013, representing a CAGR (compound annual growth rate) of 386%, according to a recently published report from Digitimes Research.

The special report on e-book readers also indicated that the total market value for e-book reader shipments would surpass US$3 billion in 2013, up from only US$244 million in 2008.

China, where the government is promoting e-reading as one of its major policies, is expected to become the second-largest single market for e-book readers in 2010.

Demise of the printed word? [Sept 6]

The desire to read books digitally on Apple iPads, Amazon Kindles or devices made in China such as Founder or Hanvon, is perhaps greater in China, where gadgets are adored, than any other market except the United States.

Many of the world’s publishers believe what happens in China could alter the axis of the global publishing industry and condemn what we now know as the paper book to history.

The move to digital transforms the business model of publishing and who gets what slice of the cake.

Publishers fear they could become marginalized or cut out of the process altogether as the new operators in the market – those providing the platforms – want to become content providers themselves and sign their own deals with authors.

One concern publishers have in China is piracy. Already on many street corners, forged copies of many titles of paper books are sold for a fraction of their normal retail price.

What scares publishers is that ripping off digital books is potentially easier and they don’t have to be sold on street stalls but could be sold in any part of the world in an instant.

A high-tech leap may put China front and center [Sept 6]
Lack of modern bookstores may make e-reading a public preference

John Makinson, chairman and chief executive of Penguin, a major international publisher, believes China could lead the world in the way people buy books.

“One of the key features of the Chinese market is that the physical book retailing infrastructure is not quite as well developed as in other markets,” he said. “There is an opportunity for digital publishing because the book retailing market is not as efficient as in some other markets. There are few book shops and there are problems in getting early delivery of books,” he said.

“To some extent, it could sort of leapfrog traditional publishing here, just as mobile telephony in some markets has leapfrogged fixed line phone networks,” he said. “You have a relatively conservative publishing and retail culture here while at the same time you have a very large community of book lovers engaged in online activity.”

He said according to industry figures e-books now make up around 10 percent of the total market in the United States and that portion was growing at 300 percent a year. “We have no idea when it might start flattening out. I think it is heading for at least 20 to 30 per cent of the overall market,” he said.

More people are reading on screens, not on paper [May 7]

The value of the digital publishing industry surpassed that of the traditional publishing industry last year for the first time in China, according to a blue book on the cultural industry released on Thursday.

The scale of the digital publishing industry hit an unprecedented high of 75 billion yuan ($11 billion) last year, up by 40 percent year on year, the blue book said.

“Online books, cell phone books and digital books have become popular among Chinese readers,” Zhang Xiaoming, deputy director of the Cultural Research Center under the Chinese Academy of Social Sciences, said at a press conference.

The country’s cultural industry totaled about 800 billion yuan in 2009, according to an annual report on the industry’s development released by Social Sciences Academic Press on Thursday.

The report says most of China’s publishing houses have started producing of digital books.

About 75 percent of newspapers have launched online papers and 55 percent of them are providing SMS (short message service) news, the report says.

About 2.8 percent of Chinese adults have stopped reading anything on paper and have become loyal readers of digitally published products, the report said.

The number of cell phone users in China reached 780 million at the end of March, of which 155 million are mobile readers, according to figures from China’s Ministry of Industry and Information Technology.

China Mobile, the world’s biggest cell phone carrier in terms of subscribers, runs e-book stores and provides wireless access to online publications, such as e-books, comics and magazines.

The subscription fee for its online e-book store is up to five yuan per month, 40 percent of which will be shared with copyright owners, according to China Mobile.

“In recent years, the scale of the traditional publishing industry has remained at around 50 to 60 billion yuan a year, and it relies heavily on textbook publishing,” Gao Shusheng, an official with the publicity department of the Communist Party of China Central Committee, said in an earlier interview.

“Many publishing houses are facing a crisis and digital publishing might help them break the ice,” he said.

Yan Xiaohong, deputy director of General Administration of Press and Publication, also said mobile reading has shown strong vitality and huge market potential in China.

“I spent 15 yuan on mobile reading last year, and I’m planning to buy an electric book this month,” said Yang Jie, a 27-year-old Beijinger. Reading an electric book on the bus is “fashionable,” and three to five yuan for reading an electric book online is affordable, she said.

China Mobile platform puts digital publications at fingertips [May 6]

China Mobile on Wednesday launched an online platform that enables its subscribers to read and download digital publications through cell phones and e-book readers, as part of its effort to profit from the country’s emerging mobile reading market.

The world’s biggest cellphone carrier in terms of subscribers kicked off an e-book store similar to Apple’s iBook store, which gives users wireless access to a series of online publications such as e-books, comics and magazines.

“Reading habits have fundamentally changed,” said Gao Nianshu, general manager of China Mobile’s data department. He said the company hopes the new platform will attract over 200 million users in the near future.

Gao said China Mobile’s new e-book platform, which currently covers about 40 percent of the best selling books in the country, has attracted over 15 million users during four months of testing in eight areas.

But … although about 45 percent of Chinese mobile Internet users read books at least once a day by mobile phone, few of them are willing to pay for online content.

It was reported earlier this week that China Mobile plans to team up with Foxconn Electronics of Taiwan province to produce its own e-book readers.

Part II. New technologies for 2011

Color Comes to E Ink Screens [Nov 7]

However, the new color E Ink display, while an important technological breakthrough, is not as sharp and colorful as LCD. Unlike an LCD screen, the colors are muted, as if one were looking at a faded color photograph. In addition, E Ink cannot handle full-motion video. At best, it can show simple animations.

These are reasons Amazon, Sony and the other major e-reader makers are not yet embracing it. Amazon says it will offer color E Ink when it is ready; the company sees color as useful in cookbooks and children’s books, and it offers these books in color through its Kindle application for LCD devices. Sony is also taking a wait-and-see approach.

How E Ink’s Triton Color Displays Work, In E-Readers and Beyond [Nov 9]

E Ink developed the Triton screen in conjunction with a group of partners, including Epson, Texas Instruments, Marvell, and the semiconductor companies Maxim and Freescale, all of whom worked on the electronic components of the [previous black and white only] Pearl screen. In particular, Epson played a key role, providing the color filters’ controller chip.

Underneath, it’s still the same white, black and grayscale electrophoretic pigments; it’s only when filtered through the RGB overlay that the image appears in color. To reach for an historical analogy, it’s not totally dissimilar from film’s Technicolor process, which shot in black-and-white film strips through color filters, then reverse-processed.

Because the underlying technology is identical, Triton’s contrast, energy usage, viewing angle are all essentially the same as the Pearl. The image update or refresh rate for monochrome is the same (240 ms), but color animation can take up to about one full second.

Unlike a LCD display, though, pictures on the Triton don’t need to update the entire screen: a moving figure in the foreground might be refreshed while the background remains identical — just like traditional cel animation.

Epson and E Ink Announce State-of-the-Art Color EPD Controller [May 18]

Seiko Epson Corporation … and E Ink Corporation … announced a new jointly developed display controller IC. The S1D13524 is a high-performance EPD controller with a built-in color processor for E Ink’s VizplexTM-enabled electronic color paper displays.

Yingjian Liu, chairman of Hanvon Technology Co., Ltd, a leading eReader provider said, “Epson and E Ink’s color EPD controller is a revolutionary innovation in the eReader industry. Thanks to this breakthrough technology announcement, eReader lovers will now be able to enjoy reading colorful eNewspapers and eTextbooks. This new innovation will help expand the contents for eReaders, thereby helping to preserve the environment and changing the way in which people obtain information.” Hanvon is planning to launch its own colorful eReader at the end of the year.

The S1D13524 is the ideal choice for E Ink color EPD designs and design upgrades. Samples of the Epson S1D13524 will be available in June. Sample price is $24. Production quantities will be available in Dec 2010.

Epson to Provide Display Controller Platform that Sharply Improves e-Paper Product Performance [Oct 27]
– Platform to enable laser-quality images and high-speed refreshes

Seiko Epson Corporation (“Epson”, TSE: 6724) today announced that it has developed a new display controller platform for electronic reading devices and other electronic paper products that provides laser-sharp image quality and rapid refreshes. The company will begin shipping the platform to e-paper-based product manufacturers in April 2011.

The display control platform will enable e-paper product manufacturers to speed up their time to market by allowing them to efficiently develop products with fast display refresh times and the ability to display images as sharp and clear as any produced by a laser printer. Notably, the platform will facilitate the development of products for business and education applications, which typically require higher image quality and faster displays.

Epson is the world’s no.1* supplier of controller ICs for e-paper displays, partnering with E Ink Holdings Inc. of Hsinchu, Taiwan, the world’s number 1 supplier of e-paper.

The display controller platform employs a newly developed e-paper display driving scheme that is unlike those used in current e-book readers. The new driving scheme capitalizes on high-speed image processing technology originally developed for Epson’s photo-quality printers to enable e-paper displays with resolutions of 300 dpi and higher to be refreshed at high speed, which is ideal for higher education, professional office and general business environments.

E-paper devices outfitted with the display controller platform and a high-resolution e-paper display will render intricate content, such as “kanji” characters, mathematical formulas and engineering drawings, as well as illustrations, photographs and other images that require smooth gradations, much more clearly than current e-paper displays. They will also be able to flip through the pages of an e-book much faster than existing e-readers. When combined with sensors, these devices will provide powerful handwriting recognition, a critical function for business applications. The sharp improvement in readability and usability are expected to fuel the popularity of e-paper products in Japan, China, and other regions where Chinese characters are used, as well as in business and education applications where huge amounts of data have to be processed.

E Ink Announces Next Generation Display Platform [July 1]

E Ink® Corporation, the leading developer and marketer of electronic paper display technology, today announced the Q2 release of its next generation display technology, Pearl. With Pearl, E Ink expands the capabilities of reflective displays, bringing electronic paper performance to the next level. With the whitest reflective displays in the industry, and a contrast ratio now approximately 50 percent greater than today’s products, text on Pearl “pops” from the page, enabling a reading experience most similar to reading text on printed paper.

The E Ink Pearl design builds on the current generation of Vizplex designs, which is used in millions of eReader devices today. Due to a unique and proven two pigment system that is extremely stable, the current E Ink products in the market today have demonstrated long life and high reliability, enabling a whole new class of consumer products.

Images and text become crisp on the screen as the contrast between the background and item of interest is increased. E Ink Pearl raises the bar for displays used in digital reading. This allows for eReaders to go from a contrast ratio typical of newspapers, to a higher contrast ratio typical of paperback books. The crisp text and detailed graphics also continue to remain pleasant to view when E Ink products are enjoyed outside. In addition, with 16 gray level depth, E Ink Pearl offers the sharpest rendering of images and allows product developers to display images with smooth tones and rich detail.

Part III. The Chinese market

E Ink to set up subsidiary in China to develop e-book hardware [Dec 16]

Small- to medium-size TFT-LCD panel and electrophoretic display (EPD) maker E Ink Holdings will invest US$6.61 million to set up a subsidiary in China to design and develop hardware for e-book readers for the local education market, according to the company.

… the company will not mass produce e-book readers. This investment in China is to provide an incentive to the textbook market to commence its transition to e-paper

China market: Hanvon to lower e-book reader prices by average of CNY500 a year, says report [Dec 7]

Hanvon Technology, the largest China-based vendor of e-book readers, has reached an initial economy-scale of over one million users in the China market and will keep reducing prices by an average of CNY500 (US$75) each year until it reaches production cost levels, according to a report by China-based Beijing News. … Hanvon will rely on sales of online content for profitability, the paper quoted Hanvon chairman Liu Ying-jian as saying. Hanvon will even offer free e-book readers, Liu indicated.

Hanvon has so far adopted EPD (electrophoretic display) panels supplied by Taiwan-based E Ink Holdings, and will cooperate with additional suppliers including Qualcomm MEMS Technologies and Fujitsu

Hanwang to maintain over 70% of China e-book reader market share in 2010 [Nov 24]

Hanwang Technology’s e-book reader shipments are expected to exceed one million units in 2010, an increase of 150% from about 400,000 units in 2009, and the vendor is expected to maintain an over 70% share of the e-book reader market in China for the year.

Hanwang is optimistic about the education market and expects significant growth in the future, noting that there are over 100 million elementary school students. Hanwang noted that flexible substrates will help to boost demand in the education market because they are more robust than glass substrates.

China market: Hanvon lowers e-book readers by 200-300 yuan on average [Nov 16]:

Hanvon Technology, currently the largest vendor of e-book readers in the China market, has lowered its retail prices by 200-300 yuan (US$30-45) on average, with the lowest price reaching 950 yuan, according to report by China-based Beijing Morning Post. The price war for e-book readers in the China market has kicked off and there are expected to be rounds of price-cut competition, the source cited China-based consulting company Analysys International as indicating.

In addition to Hanvon, fellow vendor MReader has cut the retail price for its S600 e-book reader to 999 yuan and another vendor Gorld has cut the price for its 500T to about 1,000 yuan.

Hanvon color e-book reader to hit the market in February 2011 [Nov 11]

Hanvon will start selling its new 9.7-inch color e-book reader featuring E Ink Holding’s latest color e-paper, Triton, in February 2011 with a selling price of 3,500 yuan (US$527.59) and is accepting pre-orders now.

Hanvon chairman Liu Ying-jian noted that thanks to E Ink’s cooperation, Hanvon was able to launch the world’s first color e-book reader with better-than-expected color performance. Hanvon will launch a Wi-Fi version with a selling price of 3,500 yuan, and latter a 3G version at a price of 200-300 yuan more.

In addition to competing with iPad, the 9.7-inch color e-book reader is also eyeing the commercial market as the product allows users to read and modify PowerPoint files, reducing the usage of actual paper and is easy to carry around, Liu added.

E Ink Announces Color ePaper [Nov 10]

“Color ePaper will enable richer content in eBooks, as well as enabling a broader array of other reading devices, for content such as magazines, newspapers, and educational materials,” according to Paul Semenza, Senior Vice President, DisplaySearch. “We foresee market demand for ePaper displays in these applications reaching $5 billion by 2016.”

For image-rich information applications showing charts, graphs, maps, photos, comics and advertising, color displays made with Triton Imaging Film enable ultra-low power and high mobility devices with a paper-like experience. In addition to 16 levels of grayscale, Triton is capable of displaying thousands of colors. And just like E Ink’s grayscale ePaper products, Triton’s crisp text and detailed color graphics are fully viewable in direct sunlight.

INTERVIEW: Aiming for No. 1 in e-reader sector [June 2]

Taipei Times: Hanvon Technology Co (漢王科技) enjoys a strong presence in the Chinese e-reader market and you aim to become the world’s top brand. How do you plan to do that and what is your timeline?

Liu Yingjian (劉迎建): We are currently the world’s No. 2 e-reader brand [after Amazon], and we will become No. 1 next year, or in 2012 at the latest. China has the biggest e-reader market. With our huge scale in shipments, we have advantages in lower costs and product functionality with our proprietary Mandarin-character recognition software.

Our goal was to ship 500,000 e-readers in China last year, but we sold only 266,000 units, as our upstream suppliers weren’t able to supply the volumes we requested. In the first quarter, we shipped 180,000 e-readers, and the total volume for the year will definitely surpass 1 million.

TT: The iPad is now taking the world by storm and Acer Inc (宏碁) last week announced that it would join hands with China’s Founder Group (北大方正集團) to move into China’s PC and e-reader market. How do you view the competition?

Liu: I regard [Apple co-founder] Steve Jobs as a hero and Apple itself is an outstanding company. Tablet PCs have been in the market for so long, but just didn’t take off. The launch of the iPad revived consumers’ interest. Apple’s business model, applications, stylish gadgets and the enjoyment these devices bring to consumers are amazing.

But this doesn’t mean that Apple products will also receive overwhelming response in China. The cultural essence is the part Western firms fail to offer. Hanvon has created computerized Mandarin-character handwriting recognition solutions, which allow the elderly and kids to enjoy technology by just scribbling on the panels.

[Liu developed the world’s first computerized Mandarin-character handwriting recognition technology in 1985, then founded Hanvon in 1998 and the company became the first Chinese IT firm to license technology to Microsoft Corp the same year.]

The market in China is huge and there won’t be only one player. We have over 40 e-reader brands and the competition helps us stay competitive. What Acer lacks in digital content is complemented by Founder’s resources.

TT: The market is now split into two segments: e-readers and tablet devices. Some say tablets will cannibalize the e-reader segment. What is your take on this, especially since Hanvon just debuted its first tablet — the TouchPad — late last month?

Liu: These two products share a similarity: They are both tablet devices, but use different panels. The major difference is that an e-reader is more for stationary use, such as flipping through newspapers and magazines, and uses less battery power. Tablets consume more power, but have color screens with more PC-like features. In the future, e-paper displays will be in color, while TFT panels used in tablets will consume less battery power. Both could merge into a single device over the next three years.

TT: How would you define your relationship with Taiwanese manufacturers?

Liu: We realized that when it comes product design, Taiwanese manufacturers are the cream of the crop. Hanvon isn’t strong in manufacturing and if we want to churn out products that have world-class quality, then we need to work with world-class companies. I started to pay aggressive visits to Taiwanese manufacturers in the second half of last year, looking for suitable partners. There are a slew of sleek products that we will introduce later this year and they are designed by Taiwanese firms. Also, we are currently talking to Book11.com for e-content and plan to bring in our e-reader and TouchPad to Taiwan in the second half.

Hanvon and Taiwan Partners Make Joint Efforts to Establish Global Distribution Network and an Overseas Marketing Platform is Built in Taiwan [Oct 16]

China Hanvon Technology, the world’s second-largest e-reader manufacturers as well as the world’s leading technology supplier of handwriting recognition, optical character recognition and biometrics identification sets up an overseas marketing platform in Taiwan today to expand overseas markets. Hanvon also announces that all its four major product lines Ebook readers (including the latest six-inch touch-screen Ebook N620 with handwriting recognition and WiFi launched simultaneously in mainland China), Tablet PCs, Graphic Tablets and Face Recognitions Products will be available in Taiwan. Hanvon Technology will also cooperate with the digital publishers in Taiwan on the establishment a cross-strait publishing cooperation platform to support the distribution of Taiwan’s Traditional Chinese publication in mainland China and further expand the market of Chinese publication. Attaching importance to Taiwan market, Hanvon Technology today invites dozens of partners in Taiwan such as technology companies, distributors and digital publishers to attend the news conference. Hanvon Technology hopes the establishment of overseas marketing platform in Taiwan is an opportunity to Chinese digital publishers across the strait to collaborate on spreading Chinese culture and starting a new era of Chinese reading!

Hanvon to launch Taiwan subsidiary [Sept 8]

… it will have a workforce of 70 to 80 carrying out research and development, as well as sales, said Chen Shaoqiang (陳少強), president of Hanvon’s resources management division.

The commencement of local operations will also include the debut of its online bookstore, which will allow owners of Hanvon e-readers to download books onto their devices

To meet shipment goals, Hanvon has outsourced production to Hon Hai Precision Industry Co (鴻海精密), Pegatron Corp (和碩), Inventec Corp (英業達) and Clevo Co (藍天電腦).

Part IV. Hanvon’s Microsoft and Intel cooperation

[FPD 2010] Hanvon’s Triton Powered Color e-Reader “WISEreader” hands-on [Nov 12]

Available in Pre-order in China, Hanvon’s latest e-Reader is according to the company the world first Color e-book reader. Name “WISEreader” this new e-Reader comes with a 9.68” Screen from E INK Triton technology, display 4096 colors, comes with Hanvon Digital Touch screen technology, runs on Windows CE 6.0 a Freescale CPU, has 2GB of RAM and support MicroSD Cards up to 32GB.

Other spec includes a 2350mAh Li-Ion Battery, Wi-Fi B/G as well as several WAN Options including TD, EVDO and WCDMA.

Finally the WISEreader support TXT Files as well as HTML, HTXT, PDF, CEB, DOC, XLS, PPT, EPUB, HEB, HEC, JPG, BMP, TIF, GIF, MP3, WAV and WMA.

We had some quality time with this little marvel and honestly the screen is quite good and the overall reader was responsive. With a nice 9.68 screen capable to rotate on landscape mode, the WISEreader is a pretty descent device. Capable to support some basic little games, it make us which to be in China just right now to grab one.

http://www.hanvon.com/en/products/ebook/index.html

6 inches

5 inches

8 inches

WinCE:· File Formats:
– Text: TXT, HTXT, HTML, PDF, EPUB, DOC, XLS
– Image: JPG, TIF, BMP, PNG, GIF
– DRM: Adobe content management 4· Digital Audio Formats: WAV, WMA, MP3
WinCE 5.0:· Supported Digital Audio Standards: WAV, MP3· Reader:
– TEXT: TXT, HTXT, HTML, PDF, EPUB, CHM, Mobi/FB2/(not available yet)
– Image: JPG, TIF, BMP, PNG, GIF

· Office: Microsoft® Word, EXCEL, PPT (not available yet)

Linux:

· File Formats:
– Text: TXT, HTXT, HTML, PDF, EPUB
– Image: JPG, TIF, BMP, PNG, GIF,CHM
– DRM: Adobe content management 4

· Digital Audio Formats: WMA, MP3

Hanvon Ebook Readers [March]

… if you want handwriting recongnition incorporated into a reading device Hanvon has to be first choice.  This is a key part of their work for over two decades, and something at which they do excel. …

YouTube video:

Hanvon’s latest e-book reader N618 is powered by Windows Embedded CE (WinCE), supporting WiFi connectivity and the stand-by time is as long as up to 15 days. Here the stylus based user interface is well demonstrated. Please note the company’s leadership handwriting recognition technology together with note taking all provided on top of WinCE. The company had 829 employees [see at 3:45] at that time and one third of them were working in R&D.

Hanvon WiSEreader N618 at Microsoft booth on COMPUTEX Taipei 2010 [June 6]

Microsoft invites Hanvon to take participate in Microsoft booth in COMPUTEX Taipei (#L108). On 1st of June, Microsoft Corporate Vice President, OEM, Mr. Steven Guggenheimer introduces Hanvon to Microsoft media that Hanvon is a very important partner of Microsoft Window Embedded [because of Windows CE, see above], and that Hanvon comes from Beijing, which is a very magnificent media exposure for Hanvon brand.

Hanvon Invites Taiwan Peers to Jointly Enter Global E-book Reader Market [June 2]

Hanvon today unveiled an array of new products at the Computex Taipei 2010, including Touchpad B10 (tablet PC), WISEreader N618 (e-book reader), and Art Master Ⅲ(graphics tablet).

  • TouchPad B10
    Hanvon, Microsoft, and Intel jointly launched TouchPad B10 for business people. Also called the “iPad Killer” by the market, TouchPad has a trendy look and various practical features. With a weight around 990g and thickness of only 18mm, the stylish and light-weighted Touchpad is easy to carry. In addition, TouchPad supports VGA resolution of 1024×600 (16:9) and is equipped with a 2GB DDR2 memory and 250GB hard drive and therefore it makes video and audio files easy to read and write. With Windows7 pre-installed operating system, 2 USB ports, audio in/out, mini HDMI, TouchPad is a perfect trendy and handy product for consumers to use.
  • WISEreader N618
    WISEreader N618 is Hanvon’s first ebook reader equipped with built-in WiFi, which allows users to read ebooks via wireless web. It is a business type e-Book reader, equipped with a 6-inch E-Ink large screen and document editing/management software which supports multi-format files. Using Hanvon’s latest handwriting recognition technology and electromagnetic plate technology, WISEreader N618 is a more convenient tool compared to traditional notebooks for users as they can enjoy the dual touch screen features through gesture and handwriting recognition. WISEreader N618 is therefore a great companion for business and travel.

Hanvon B10 Win7 tablet goes on sale, gets video unboxing [Aug 25]

Hanvon Touchpad B10 tablet computer at CES China [July 12]

… new Touchpad B10 [linking to Hanvon’s product page] tablet computer. The 9.96 x 6.61 x 0.70 inch, 1.98 pound device is powered by a 1.3GHz ULV 743 Celeron processor and GMA X4500 display chip from Intel on a GS45 chipset with 2GB DDR2 memory and a 250GB hard disk drive.

Intel Shares Vision for the Future [April 13]

Also, Perlmutter disclosed that Intel is working with PC manufacturers Tongfang* and Hanvon* to introduce the new convertible classmate PC design that combines aesthetics with ruggedness, full PC functionality with enhanced e-reading capabilities and improved performance with energy efficiency. The flexible design of the new convertible classmate PC works and moves the way students do. The tablet touch screen form factor also adds additional functionality for students. Development of these new features was based on extensive ethnographic research with students and teachers.

Rugged Convertible Classmate PC Design Moves the Way Kids Do [April 26]

Intel Corporation today unveiled the most flexible and durable Intel-powered convertible classmate PC reference design yet.

PRESS KIT – The Intel-powered classmate PC: Photos

image

The new convertible classmate PC design converts instantly from a clamshell to a tablet mode with a touch screen, featuring a built-in camera that will swivel for 180 degrees while retaining its kids-friendly design.  Features of the platform are designed for more mobility, flexibly and collaboration in students’ learning.  The convertible design will coexist with the Intel-powered clamshell classmate PC for varying education needs in the world.

Pegatron lands orders for tablet PCs from China-based Hanvon [12 Nov]:

Hanvon has extended its own-brand business operation from e-book readers to tablet PCs and has launched a few business-use models including Touchpad B10 and B20 in the China market, the sources indicated.

Hanvon’s executives earlier came to Taiwan to seek ODM partners for its tablet PCs, with First International Computer, Clevo, Quanta Computer and Wistron regarded as candidates, the sources pointed out. Hanvon originally selected Clevo, but Clevo gave up the opportunity because Hanvon asked for too low prices, the sources indicated. Finally, Pegatron won by quoting the lowest, the sources noted.

China market: Hanvon to launch TouchPad B10 tablet PC in January [Dec 17]

China-based Hanvon Technology will begin to market its first Windows 7-based tablet PC, the TouchPad B10, in the China market in January 2011. Hanvon is currently outsourcing production of the TouchPad 10, which is powered by an Intel N455 processor, to Taiwan-based First International Computer (FIC).

FIC began shipping the TouchPad B10 in December and volume shipments will be maintained at 2,000-4,000 units a month initially. However, total monthly shipments are likely to reach 10,000-15,000 units when Hanvon launches Android-based products in the second quarter of 2011, according to industry sources.

More information:

Undermining E-Ink and single-purpose E-readers [Aug 23 – Nov 10]: a comprehensive report about the massive FUD generated by competitive forces a few months back. Has been successfully beaten back.

This Ink Is for Reading [July 1]: all you need to know about E-Ink Holdings (that times called Prime View International)

somewhat older information of the similar kind:

By the Book [Jan 8]

Taiwan firm spreads out e-paper magic [Jan 2]

Prime View and E-Book Readers: A New Page in Reading History [July 21, 2009]

Intel’s industry position and prospects for years ahead

Follow-up: Intel: accelerated Atom SoC roadmap down to 22nm in 2 years and a “new netbook experience” for tablet/mobile PC market [April 17, 2011]
Update:  Intel executive quits as smartphone biz falters [March 21, 2011]: (emphasis is mine)

The Intel executive who led Intel’s so-far-unsuccessful push into smartphones and tablets quit as that business comes under unrelenting competitive pressure from companies like Apple, Qualcomm, and Nvidia.

Anand Chandrasekher, who had been senior vice president and general manager of Intel’s Ultra Mobility Group, announced today that he will be leaving Intel to “pursue other interests”.

Chandrasekher had become somewhat infamous for making regular appearances at Intel conferences over the last few years and invariably waving a prototype smartphone or handheld device for the cameras, then promising that an Intel-based smartphone was on the way. But none ever materialized.

“The industry has gone right past them,” said Ashok Kumar, an analyst at Rodman & Renshaw. “They’re just another player [in the smartphone and tablet markets]. There’s no first among equals,” Kumar said, referring to the ARM processor business, which is dominated by an oligarchy of other big chip companies, including Qualcomm, Texas Instruments, Samsung, Apple, Marvell, and Nvidia.

Another analyst says that Intel’s first chip designed specifically for tablets and smartphones, “Moorestown,” was a failure. “Moorestown was a complete flop,” said Linley Gwennap, principal analyst at The Linley Group, a chip consulting firm. “Intel is still struggling to get traction in tablets and particularly smartphones. Atom is in a few tablets that run Windows, but Windows tablets are not very popular, except in a few vertical applications,” he said.

Note: Although Chandrasekher bet his corporate carrier on this in 2006 when Intel sold its XScale business to Marvell, there were a number of higher placed Intel executives who were much more responsible for this major strategic mistake: (emphasis is mine)

“As part of the thorough analysis of Intel begun in April, we have examined the focus and structure of our top management level, including our use of ‘two-in-a-box’ co-managers,” said Intel President and CEO Paul Otellini. … Intel’s Sales and Marketing Group will be led by Executive Vice President Sean Maloney, 50, who previously co-managed the company’s Mobility Group. Maloney will also become Intel’s chief sales and marketing officer. … Senior Vice President David Perlmutter, 53, will continue as general manager of the Mobility Group. Senior Vice President Anand Chandrasekher, 43, formerly co-general manager of the Sales and Marketing Group, will manage a newly created business unit focused on low power Intel Architecture products and the ultra-mobile PC market. He will report to Perlmutter. … Intel Announces Management Changes [July 20, 2006]

Marvell Technology Group, Ltd. and Intel Corporation today announced that they have signed an agreement for Intel to sell its communications and application processor business to Marvell for a purchase price of $600 million plus the assumption by Marvell of certain liabilities. The planned sale will give Marvell a strong presence in the growing market segment for processors used in smart handheld devices. The sale also will enable Intel to focus its investments on its core businesses, including high-performance, low-power Intel Architecture-based processors and emerging technologies for mobile computing, including Wi-Fi and WiMAX broadband wireless technologies. … “In recent years, Intel has made significant progress and won major customers with this business,” said Sean Maloney, Intel executive vice president and general manager, Mobility Group. … Marvell To Purchase Intel’s Communications And Application Processor Business For $600 Million [June 27, 2006]

Intel probably has good business reasons for selling the 1,400-person communications/applications XScale unit to Marvell. Faced with a surprisingly resurgent AMD and other challenges, Intel is rapidly cutting costs and reorganizing. XScale’s financial performance was lackluster, so the unit was an obvious candidate for a selloff. And Marvell is paying $600 million in cash, which isn’t chump change, even for Intel.

Another reason for Intel to reduce its commitment to XScale is that it’s not an Intel-native CPU architecture. XScale isn’t protected by the same financial and emotional capital that Intel has invested in, say, the IA-64 (Itanium) architecture. Indeed, XScale is ARM compatible, so every design win strengthens ARM.

As we see it, Intel now has three options: create an entirely new embedded-processor architecture; acquire another embedded-processor architecture from an outside company; or renew its commitment to developing the x86 as an embedded architecture.

Creating a new architecture is the least likely option. The world already has plenty of CPU architectures, and MPR covers new ones all the time. We don’t think Intel will embark on an expensive, risky project that could turn into another i432, i960, or IA-64.

Acquiring an outside CPU architecture is only slightly more likely than creating one from scratch.  …

Intel’s third option is to develop new, low-power x86 embedded processors. Yes, we know, Intel is already doing that. Two weeks ago, Intel announced that Senior Vice President Anand Chandrasekher will manage a new business unit focused on the ultramobile PC (UMPC) and low-power x86 products. The new unit will almost certainly use technology developed by Intel’s Low Power on Intel Architecture research project at the System Technology Labs (www.intel.com/technology/systems/lpia/). But Intel needs to step up the pace of this project and send clearer signals about its embedded x86 strategy.

Recall that a year ago, Intel CEO Paul Otellini promised to deliver by 2010 a 500mW x86 processor capable of running an operating system like Microsoft’s Vista, the next version of Windows. Otellini’s goal is to bring desktop performance to PDA-size UMPCs. Achieving that goal would be an impressive feat. But by 2010, cellphones with ARM processors might subsume the functions that Otellini envisions for x86-based UMPCs. Future derivatives of Apple’s ARM-based iPods are another source of potential competition. Even the XScale-based Blackberry communicators that Intel has discarded might evolve into versatile palmtop computers.

Intel’s Embedded Future [Microprocessor Report, July 31, 2006]

BACK TO THE ORIGINAL NEWS:

It went around the major on-line ICT publishers that Intel loses 2010 chip market share while Samsung gains, says Gartner while the source is stressing an overall finding that Gartner Says Worldwide Semiconductor Revenue Increased 31.5 Percent in 2010 to Exceed $300 Billion [Dec 8], and regarding Intel it rather made an internal remark:

Intel held the No. 1 vendor position for the 19th consecutive year in 2010, albeit with a slightly smaller share of the market, down to an estimated 13.8 percent from 14.2 percent in 2009 (see Table 1). Intel saw strong growth in the first half of the year as the PC market stocked up inventory in anticipation of a strong second half of the year, but third quarter growth weakened as consumer sentiment began to flag. Sales of mini-notebooks — a segment for which Intel is almost the exclusive supplier — were particularly disappointing.

Worth to read along with this: Gartner: media tablets are the new segment next to mobile PCs and desktops, as well as web- and app-capable mobile phones [April 16, 2011]

Instead of the referred in Gartner’s “Worldwide semiconductor revenue” press release table I am including here the same data but in diagram format:

Top 10 Worldwide Semiconductor Vendors by Gartner in 2010 preliminary -- 8-Dec-2010

Whatever it is Intel is not worried at all. Intel’s own Free Press reported from the same day Barclays Capital event in San Francisco Intel CEO defends PC amid tablet, smartphone growth [Dec 8]. ZDNet’s Larry Dignan sent his report as Intel’s Otellini: The PC ‘just doesn’t die’ [Dec 8] with the following quotes:

I think it’s easy to forget about how important notebooks are, in particular, to people’s lives, and while there is a news flash the iPad is really fun, it’s not the only device that’s out there, and in fact, if you look at it on a scale of units, PCs are at 1 million units a day this year. Compare that to, what, 4 million iPads last quarter. Pick your own number for this quarter. So, it’s a vastly different scale here.

When talking about the upcoming next generation of Sandy Bridge processors where graphics are integrated into the chip. Regarding Intel’s tablet strategy the saying was:

Tablets, the thing that’s on everybody’s lips and minds. Our strategy here is very simple. We are going to offer best-of-class hardware around our Atom system on chips, and we are going to make sure that we support all of the viable operating systems that we — that want to work with us that are in the marketplace.

So I’ve just listed here some of the 35 design wins we have in tablets. A number of them on Windows. A number of them on Android. And this is both Froyo, and then Honeycomb as it comes out. Then, of course, on MeeGo, the operating system that we’re working on along with Nokia and other companies. Some of these are in the market today. You can buy — the ones that are Intel-based that are in the market today are typically from people like AT&T or Cisco, and they’re aimed at enterprise-class machines and customers. The consumer products will roll out over the first half of next year. You’ll start seeing them on all three operating systems. Probably at CES, you’ll see lots of demos, lots of announcements, and we’re pretty excited about this product line.

Updates:

Mobile doubts weigh on chipmakers Intel, AMD [Jan 14]

Despite better-than-expected fourth-quarter earnings and guidance posted on Thursday, and a broadly higher market, its [Intel’s] shares slipped as investors focused on the company’s failure to stake out territory in the mobile market.

Even as Intel’s stock fell, shares of other semiconductor companies rose, with ARM rising 6.5 percent to a 10-year high.

The stock market, and sentiment on the wider technology industry, for years moved in tandem with Intel following its earnings report. But in recent quarters they have diverged.

“It’s historically been the bellwether, that if you’re positive on the (technology) sector you’re positive on Intel, but I think that relationship is breaking down,” said Craig Berger, an analyst at FBR Capital Markets.

Intel 4Q a window into industry’s inflection point [Jan 14] (emphasis is mine)

Some 350 million PCs were shipped in 2010, according to data released this week, and Intel CEO Paul Otellini says that more than 1 million PCs are now being sold every day.

Net income was $3.39 billion, or 59 cents per share, higher than the 53 cents per share analysts polled by FactSet were expecting. In the same period in 2009, Intel earned $2.28 billion, or 40 cents per share.

The year-ago figures would have been higher were it not for Intel’s $1.25 billion payment to rival Advanced Micro Devices Inc. to settle claims that Intel abused its market dominance to bully computer makers into avoiding AMD’s chips — charges Intel has long denied. Intel’s chips are inside 80 percent of the world’s PCs. Earlier this week, AMD ousted its CEO over the company’s growth prospects.

Intel’s revenue rose 8 percent to $11.5 billion, up from $10.6 billion last year. Analysts had forecast $11.4 billion.

For the first quarter, Intel expects revenue of $11.1 billion to $11.9 billion, ahead of analysts’ expectation for $10.8 billion.

And Otellini predicted that Intel’s revenue would rise 10 percent in 2011 — which translates to about $48 billion, up from $43.6 billion in 2010 and higher than the $45.5 billion analysts expected.

What saved Intel’s fourth quarter was strong corporate spending.

Companies, many of which froze their technology budgets during the Great Recession, are buying new servers for their data centers and PCs for their workers as their business prospects have brightened.

Operating profit in the Intel division that sells server chips jumped 47 percent to $1.43 billion, while the division that makes desktop and laptop chips grew at a slower rate, up 8 percent to $3.62 billion.

Server chips tend to carry higher profit margins than chips for PCs. The PC industry in general struggles with increasing commoditization, which lowers PC prices and benefits consumers, but erodes profits.

Although Intel’s results were strong compared with the previous year, revenue in each of its major divisions, except for server chips, was flat from the third quarter.

That showed the strain that emerged toward the end of the year, from economic problems such as prolonged unemployment and the European debt crisis, and competition from Apple Inc.’s iPad.

Sean Maloney resumes work at Intel [Jan 14] (emphasis is mine)

… earlier this month and is responsible for the chip giant’s tablet and handset solution business, according to industry sources.

As Maloney has been working closely with partners of the PC production chain in Taiwan, the resumption of work will help push the development momentum of tablet and handset solutions at Intel, the sources asserted.

Maloney has made some modifications to Intel’s product roadmap and marketing strategies for the two segments, and will solicit ODM and OEM partners such as Quanta Computer, Compal Electronics and Pegatron Technology to support Intel’s Oak Trail and Cedar Trail-M platforms.

Maloney will also step up cooperation with handset makers eyeing to re-enter the handset segment, the sources added.

Notebook vendors show no interest in Oak Trail [Jan 13, 2011] (emphasis is mine)

Because Acer and Asustek Computer have both shown their unwillingness to launch Oak Trail-based tablet PCs, Intel has recently been aggressively trying to persuade these vendors with price discounts and is hoping Asustek and Hewlett-Packard (HP), which are still undecided, will change their minds and fully support the platform, according to sources from notebook players.

Since Oak Trail has only been adopted by Fujitsu, Toshiba and Samsung Electronics for their tablet PCs and these vendors are not showing an aggressive attitude to mass produce models, while HP, which originally planned to launch an Oak Trail-based tablet PC, also stepped back and is reevaluating its plans, Intel is offering Oak Trail at a price point of around US$40, about the same as Nvidia’s Tegra 2, and the company will even give a further discount for large volume orders, the sources noted.

However, because Oak Trail is unable to out-perform Tegra 2, while Intel is already set to launch its new Cedar Trail-M platform for tablet PCs/netbooks in September 2011, most of the notebook vendors are unwilling to accept Intel’s offer and would rather wait until Intel releases its new platform before placing any orders, the sources added.

Intel’s response has been the same as on the December 2010 Ottelini presentation: Over 35 Oak Trail-based netbooks will show up in 1H11, says Intel [Jan 13, 2011]

End of updates

Here Ottelini had the following slide in his presentation:

Intel Atom Tablet Designs in 2011 (Forecast)

Here the notable things are:

– HP and Acer, the #1 and #3 players on the notebook market are missing from the Windows part. We know however that Acer will play in Windows tablet space, albeit not with Intel but with AMD as has been noted in my Intel Oak Trail to beat ARM with MeeGo specific prices [Nov 25] post already.

Update: MSI is also missing which is remarkable only because of a 4 days later MSI to reintroduce WindPad tablets at CES, claims Oak Trail improves performance and battery life [Dec 13] news (emphasis is mine):

According to MSI’s Director of North American Sales Andy Tung, Intel’s tablet solution does show both battery life and performance improvements over the current Atom chips, but it’s “not extremely significant.” Based on our discussion with Tung, we got the feeling that it’s a step in the right direction for Atom but still not as long-lasting as it needs to be to compete with ARM-based tablets.

For more detailed investigation of this news see: Oak Trail bringing only minor power savings to Windows tablets? [Dec 13].

– Acer is indicated in the MeeGo tablet space which is something new and also showing that the primary line of tablet market attack for Acer is the Android platform. Again consistent with the same post (with two Android tablets coming from Acer in February), also in the sense that Intel’s intent is to apply a MeeGo specific, very pricing for the Oak Trail type Atom.

– Nokia is missing from the MeeGo design wins which is again consistent with information in the same post that “The first MeeGo smartphone requires MeeGo V1.2 and won’t happen, either on Intel or ARM until around June 2011.” The only difference is that now the same statement applies to the 2011 Nokia tablet space as well.

Overall it is not so rosy outlook for Intel’s 2011 plans for tablets. Even more so since in the smartphone space Intel is even more behind of the market. No wonder why Financial Times was reporting from the Barclay’s Capital event as Intel inside 35 tablets, no phone till H2 2011 [Dec 8]:

Mr Otellini said the phone game represented a marathon not a sprint for Intel. It was tackling issues of certification, modem integration and the telecoms software stack. Its smartphone processor codenamed Medfield was currently being debugged for shipment in 2011 and 2012, he added.

Medfield is the successor to the Moorestown chip, launched in May, which still does not match the low-power capabilities of Arm-based phone processors and has not appeared in any smartphones this year, despite Intel’s high hopes expressed at the CES show in January.

So marketwise Intel’s major worry is the tablet market now as was noted by New York Times: Intel Girds For Netbook and Tablet Wars [Dec 8] when reporting:

The chip giant has created a new business unit that it calls the netbook and tablet group. The unit will be run by Douglas L. Davis, the current head of Intel’s embedded and communications group, who will be charged with making sure Intel can fend off all kinds of competition in the burgeoning market for PC offshoots.

Intel often formally announces the formation of such groups, but kept this one quiet. Bill Kircos, a company spokesman, confirmed the move.

“Netbook shipments will be heading north of 100 million, and we’ll all soon will find out what kind of market potential there is for tablets and these increasingly popular hybrid designs,” Mr. Kircos said. “It makes sense for us to sharpen our focus on these friends of the PC, and Doug’s experience running a similar and very successful embedded division makes him the right guy to lead the group.”

Ottelini himself said according to the above ZDNet report:

I don’t think, at the end of the day, tablets are cannibalizing it. They are not replacements for notebooks. They are a competitor for discretionary income disposition. So you walk into Best Buy and you’ve got $400 burning a hole in your pocket, or in the case of the iPad, $600 burning a hole in your pocket, and you want to buy something cool for Christmas for your wife or kid or something. It’s a competitor.

On the other hand, I have not seen a kid that takes the iPad to school and not a laptop. The laptop is still the fundamental tool in school. So, I don’t see it being a displacement. I see it being an extra-fun device that you use to consume content, for the most part. And I think it’s additive to the industry. So, if it goes to 50 million or 100 million units a year against a base of PCs that are 500 million units, that’s great. And we’ll have our fair share of those.

But on the Barclay’s Capital event his major point about the future of the market was expressed on following two slides:

Intel 22 nm -- A Breakthrough in Silicon Process Technology

Intel - Architecture Contests Take Time

So while in the year 2011 Intel will play a catch up game in the tablet space and just trying the waters in the smartphone market in the years which are coming after that the company sees as quite promising because of its huge manufacturing technology lead and its learnings from the previous critical periods of its growth when Intel was able become dominant player via its architecture.

More information:
Intel says tablets and phones on the way in 2011 [Reuters, Dec 8]

Nokia to enter design pattern competition for 2011 smartphones with MeeGo

http://platform.twitter.com/widgets/hub.1326407570.html

Nokia is recognizing two already dominant design pattern candidates for mobile phones: Apple iOS and the similar to each other in this respect Nokia Symbian and Android. Then there is also a recent third pattern from Microsoft, with unknown yet success, and Nokia itself is preparing to launch a fourth one with its MeeGo platform as a highly important strategic bet by the company.

Major update: Marko Ahtisaari: smartphone evolution is only just beginning [The Guardian, Jan 31, 2012]

“There’s a point of view about design that all innovation in the interaction with the phone has been done,” Ahtisaari says. “Nothing could be further from the truth. The phase we’re in now is like the 1880s in the car industry. Back then, cars had tillers – you would steer them like boats, with a wheel at the back. It took 15 years to settle on the steering wheel at the front controlling the front wheels. And we’re in the middle of that part of the evolution of interaction.”

“Look at iOS. Multiple pages of apps, and folder, with a physical home key. It’s very elegant; it was a great innovation five years ago. But the core interaction hasn’t evolved much. It’s simple but constant. It’s like a house where you know that you can always get to the kitchen from the living room – but you have to go through the front door.”

He adds quickly, “OK, so there’s been some changes. Now you can get there if you skip on one leg” – referring to the double tap’ introduced by Apple in iOS 4 for fast switching between apps via a “drawer” at the bottom of the screen.

“The other model, of Android and Symbian, is multiple, personalisable home screens with widgets. There’s some fragmentation in button layouts where different devices have them in different ways. The hope is that having personalisable screens is so organic that you end up using it via the home screen.”
In the past year we have seen a different way to do it – Live Tiles [as used in Microsoft’s Windows Phone interface] – they’re abstractions of data, a panoramic view of your data. It’s a different approach – ‘glanceability’, such as in the People Hub.” He explains that “our goal in the studio is to design so that people can have their head up again. Touchscreen designs are often immersive; we’ll often see couples in a restaurant pinching and zooming, but not interacting with each other. And there’s a trend of having smaller and smaller targets on screen so you have to get closer and closer. If we can make the interfaces more direct, so you can have your head up again – this is something that, while it would never come up in a focus group, is deeply appreciated by people, because the most important things are happening not only in the vessel of your phone, but also with the people and the environment around you.”

That element of “glance-and-go” is one that has been emphasised by Microsoft, and now Nokia too.

His theme is that we shouldn’t think that iOS or Android (or Symbian) has ended user-interface evolution. The sun’s just coming up on that. “I think there will be more diversity in user interfaces rather than less. In automotive, you need to have some standardisation for safety reasons – you can’t have wheels in some and tillers in others. So you want a standard, or standards.” That doesn’t apply in phones: “Here, they will be more diversity in user interface because you can design more ways to use a phone. Some people would say that the iPhone is the new generic form. My point is more about competitive diversity. What’s really important is that this isn’t styling.” He becomes emphatic. “This aesthetic come from the way that we build the product.”

… 

Update: Nokia N9 UX [?Swipe?] on MeeGo 1.2 Harmattan [June 24, 2011]
Follow-up: Designing smarter phones–Marko Ahtisaari (Nokia) and Albert Shum (Microsoft) [Nov 23, 2011]

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

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

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

For the rest of the talk it is better to continue with a summarized transcript like reporting Live at LeWeb: Marko Ahtisaari [Dec 8] from Nokia Conversations, the official Nokia blog:

We need to give people their head up again. The ability to keep social interaction with the people that they’re physically with. That means a better ability to use the devices single-handed and them requiring less of our attention for peripheral interactions. Notifications, for example, could be much improved so they require much less from us.

The second big influence for the most competitive devices will be the way they are able to harness the collective intelligence of their users. Smartphone users create a lot of data. The collective use of Ovi Maps for navigation, for example, circumnavigates the globe 80 times a day. The average owner makes use of it 11 times a month.

We can use that data to make the devices more intelligent: for example, to avoid traffic jams and create alternative routes. We can also use it to improve the maps – if we see people going in directions that don’t exist on the map, we can see there’s something to fix.

But it’s not just maps, as we have more sensors on the device we can answer almost any question. The research on collective intelligence says that it needs a large, independent, diverse group of people to solve problems – that’s what we’ve got. Soon phones will allow you to arrive somewhere – say the LeWeb party tonight – and it’ll know where the bar is and where to find the discotheque.

So this is the most essential part of Nokia’s announcement. You can also watch the associated video records for more information and general rational for Nokia’s strategy with MeeGo:
Marko Ahtisaari, SVP Design, Nokia — live Ustream record of his speech [Dec 8]
Marko Ahtisaari, SVP Design, Nokia Q&A — live Ustream record of his interview after the speech [Dec 8]

Some notable excerpts from reports around the web:

Nokia’s Marko Ahtisaari From LeWeb: Meego Will See New UI In 2011 [Dec 8]

Ahtisaari began his talk about two issues on his mind, the state of the smartphone market as well as the collective intelligence, how platforms get better as more people use them. He’s key point was, that while the smartphone market is hyped a lot in media, there is a ton of action elsewhere in the mobile space that is seldomly reported on. But he did say that Nokia is now on very impressive growth curve with its Ovi Store. Daily downloads are around 3.5 million, when they were around 3 million just 3 weeks ago and around 2 million in September. Furthermore, 250 000 people sign up each day.

Secondly, there’s a lot of collective intelligence being built into applications, for example the Ovi maps. They can receive a ton of information from people using the navigational tools, for example when cars go off piste, they know they might need to update the data on that map. But according to Ahtisaari, this is just the beginning.

Furthermore, Ahtisaari shared or perhaps reminded us about some of the reasons why developers should be looking at Nokia as their platform. Nokia is still the most global, yet local platform out there. Their phones work in over 180 countries, in close to 50 languages. Back in November we shared some of the Ovi store statistics and Nokia has one of the most impressive payment mechanisms for developers out there as well.

Nokia praises iPhone, warns of ‘Cupertino distortion field’: Nokia at LeWeb both praises, trashes Apple iPhone [Dec 8]

While discussing the company’s plans for MeeGo phones in 2011, he produced rare compliments and said the iPhone interface was “beautifully elegant” and easy to learn. At the same, however, he saw Apple as unfairly creating a perception that Nokia was losing out and alluded to the stereotype of Steve Jobs’ “reality distortion field,” stressing that Nokia’s reach was much wider.

“There is this Cupertino distortion field,” he said. “We compete with all phones all over the world.”

Nokia would take a small cue from Microsoft and try to shift away from constantly staring at phones. Smartphones today are “immersive, they require our full attention,” he said. Rather than strictly follow Microsoft’s approach, though, the goal with MeeGo was to focus on “one-handed use” where a device didn’t need full attention.

Nokia’s MeeGo Will Bet on Differences to iOS and Android [Dec 8]

The Finnish mobile phone giant is … under pressure to fight back against Apple’s iPhone, Google’s Android operating system, and a resurgent Microsoft mobile platform.

Mr. Ahtisaari was, however, preaching patience and caution on stage today.

On mobile interfaces, he said: “We’re at the point the automotive industry was in the 1890s, where cars had tillers — not steering wheels, which were 15 years in the future.”

He said he’d left his own start-up to join Nokia, “making a bet on the steering wheel.”

Nokia, he said, wants to “give people their head up again.”

Asked by conference organizer Loic Le Meur if that meant screens beamed onto our spectacles, or even into our retina (Mr. Le Meur was keen on the latter), Mr. Ahtisaari said that was a while off.

But he did suggest physical keys might become rarer on the MeeGo devices, with faces that were all screen, with no physical buttons, “allowing the apps to shine.”

… We already knew the MeeGo launch will be a vital one for the future of Nokia. Mr. Ahtisaari’s talk of design innovations today will mean it is even more keenly anticipated.

Nokia focusing on UI dynamics for MeeGo; needs to “regain the imagination” [Dec 8]:

Nokia SVP of Design Marko Ahtisaari has admitted that the company still needs “to somehow regain the imagination,” though as always that route won’t involve Android. “We’ll go where we can add value,” Ahtisaari said at LeWeb 2010 this morning, “that’s not the case at the moment with Android.” Instead, Nokia’s design team is focused on new homescreen paradigms ahead of MeeGo‘s launch in 2011, with Ahtisaari arguing that the UI dynamics of iOS, Symbian and Android aren’t quite there yet.

Another focus is how sensor-integrated phones can learn from the individual user’s behavior, but also that of other device users in aggregate. “How do the platforms get better the more people use them?” Ahtisaari asked, pointing to Ovi Maps and its ability to not only intuit traffic and map information from multiple user feedback, but to track inaccuracies in core mapping data as it spots multiple users going off-course.

One future implementation, he suggested, was coupling GPS data with other sensor input, and using that to dynamically work out real-time activity. So, a sudden group of users in proximity could suggest the location of a party. The design team is also looking at how devices address updates and reminders of things like missed calls and new messages, though Ahtisaari didn’t show any UI mockups.