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Marvell’s single chip TD-SCDMA solutions beaten (again) by two-chip solutions of Chinese vendors

Follow-up: First real chances for Marvell on the tablet and smartphone fronts [Aug 21 – Sept 25, 2011]

Suggested preliminary reading:
China Mobile repositioning for TD-LTE with full content and application aggregation services, 3G [HSPA level] is to create momentum for that [June 18, 2011]
High expectations on Marvell’s opportunities with China Mobile [May 28, 2011]
ASUS, China Mobile and Marvell join hands in the OPhone ecosystem effort for “Blue Ocean” dominance [March 8, 2011]
Marvell beaten by Chinese chipmakers in sub 1,000 yuan handset procurement tender of China Mobile[Nov 15, 2010]

ZTE, Huawei & Lenovo Jointly Won New Mobile Bidding [July 8, 2011] (emphasis is mine)

ZTE Corporation (SZSE: 000063), Shenzhen Huawei Technologies Co., Ltd. and Lenovo Group Co., Ltd. (SEHK: 000992) jointly won the mobile bidding launched by China Mobile Communication Corp (China Mobile in short, SEHK: 00941) last month.

At the beginning of June, China Mobile launched a new round of mobile bidding, with bidding products being CNY 1000 [US$152] intelligent mobiles and purchase scale being 7 million popular G3 mobiles and 3 million G3 wireless telephones.

The bidding result came out on July 6 evening, ZTE, Huawei and Lenovo won the bidding while foreign brands got nothing.

China Mobile Commissions Three Million+ Mobile TV Smartphones [July 7, 2011] (emphasis is mine)

China Mobile, the country’s biggest mobile telco, has announced the winning bidders for its tender of three to four million mobile TV smartphones, with Lenovo, Huawei, and ZTE being the selected hardware makers.

The order is believed to be for six different handsets, of 500,000 to 600,000 units each. All of them will be 3Gsmartphones, on the homegrown TD-SCDMA frequency that China Mobile uses, and they will all be low- to mid-level phones on the cheaper end of the smartphone scale.

Mobile TV is the most unique feature that the phones will bring. Again, this is a China-developed technology – the CMMB standard for mobileTV transmission – that is being pushed by the state-owned China Mobile.

The mobile TV roll-out started in March of this year, across 300 cities and to huge fanfare in (state) media – see this Sina Tech reportfrom the time (article in Chinese).

It’s not clear which OS this new batch of mobiles will be running, but it is very likely that they’re also rocking China Mobile’s own Androidmodification, dubbed OPhone, which has mobile TV support baked in – as seen in the two photos of the OPhone-powered Lenovo O1 in this post.

China Mobile has struggled to get appealing handsets onto its TD-SCDMA network, but this year finally got some attractive top-end Motorola and HTC smartphones.

Domestic Vendors Win China Mobile TD-SCDMA Handset Tender [July 6, 2011] (emphasis is mine)

China Mobile (NYSE: CHL; 0941.HK) has released a list of winning bidders in its TD-SCDMA handset procurement tender. The tender is for six handset models, approximately 500,000 to 600,000 of each for a total of 3-4 mln units. The orders are divided between Lenovo (0992.HK), ZTE (0763.HK; 000063.SZ), and Huawei, with chips to be supplied by Spreadtrum (Nasdaq: SPRD), Leadcore and MediaTek. Spreadtrum and Leadcore will provide chipsets for two models each, while MediaTek will provide for one, and MediaTek and Leadcore will provide one they have jointly developed.

According to an industry source, the tender is for low-end and mid-range entry-level TD-SCDMA handsets equipped with CMMB mobile phone TV capability slated for launch in Q3 2011. Nearly 100 handset products were offered by over a dozen manufacturers in the bidding. Marvell was among the chipset bidders, but was not selected since its products are aimed at high-end TD-SCDMA handsets.

The source said that overseas handset and chipset makers did not participate in the tender because they are more focused on the low-end and mid-range TD-SCDMA smartphone market, and China Mobile’s unit price range was simply too low to attract their interest.

Spreadtrum Rides China TD-SCDMA Wave, Says Wedge; More On China Mobile iPhone [July 8, 2011] (emphasis is mine)

Wedge Partners analyst Brian Blair this morning writes that he thinks wireless chip maker Spreadtrum (SPRD) won half of a recent 4 million-unit order by China Mobile (CHL) for chips based on the country’s home-brewed “TD-SCDMA” wireless standard, and that the orders should continue to flow for the company.

Based on checks by contacts in China, writes Blair, Spreadtrum’s overall TD-SCDMA chipset shipments probably exceeded expectations in June, while the GSM flavors of its chipsets probably “recovered” in the month, bringing total chipset shipments to 17 million units. He thinks the company will probably forecast the current quarter about in line with the Street consensus of 57 cents per share in profit.

We believe there will be more low/middle-end TD handset procurements in the second halfand we continue to believe that Spreadtrum has the best position in that market.”

… On another note, Blair tells me that he and his team were reviewing a photo put online on a Chinese blog this week that appeared to show an Apple (AAPL) iPhonethat was stamped with the China Mobile designation.

That picture yesterday was interpreted by Ticonderoga’s Brian White as further evidence that a version of the iPhone for China Mobile’s TD-SCDMA network is “imminent.” …

Spreadtrum: Extremely Compelling After Broad Chinese Stock Sell-Off [July 9, 2011] (emphasis is mine)

We believe that there will be approximately total 55M TD-SCDMA units sold in 2011 and 90M in 2012. Spreadtrum should have approximately 40% market share in 2011 and 40 – 45% share in 2012.

Pricing is extremely competitive in China and we expect ASPs to continue to decline. ASPs on TD chips are currently approximately $7. Spreadtrum has a cost advantage since it is the only supplier producing chips on 40nm lithography. Other chip suppliers are producing chips using 60nm or 90nm lithography and above. Spreadtrum’s smaller die results in an approximate 40% cost advantage, enabling Spreadtrum to sell at a lower ASP and to maintain gross margins at/above 40%. For Spreadtrum, 3G chipsets should increase from 20% of total revenue at the end of 2010 to 40% by the end of 2012.

Spreadtrum is viewed by the Chinese government as a local Chinese company vs. MediaTek which is Taiwanese. Spreadtrum receives R&D grants of a few million US dollars annually from the Chinese government. Spreadtrum is a preferred vendor to promote the TD-SCDMA standard. The Chinese government wants a strong Chinese domestic chipset supplier.

Jianzhou Wang, the Chairman of China Mobile:

Single-chip may also fail, but the two-chip is no problem, that is coupled with a single-chip chip to do the TD call, without any problems. TD’s current dual-core chip has not done such a grade, but it can take the iPhone with a TD-chip chip.

[In response to the reporter’s question: From the technical point of view, TD maturity of the chip is able to meet the needs of the iPhone’s design?]

From: Wang: 4G is no timetable … [July 6, 2011, via Google translate]

Behind Spreadtrum’s Improbable Turnaround [July 10, 2011] (emphasis is mine)

The first opportunity came as a 90 million RBM TD-SCDMA research contract offered by China Mobile in May 2009. It was recalled by Chen Datong (see the interview) that “Leo Li and five other VPs of the company made an agreement, that if the product cannot meet the technical requirements by May, they would resign together.” (Note that Spreadtrum developed the first TD-SCDMA chip in China under Wu Ping’s management.) The 90 million contract helped Spreadtrum’s top line reflected in 2009 Q2 financial statements. (Chinese media reported this contractin 2009.)

… In June 2009, Spreadtrum ramped up a 6600L baseband chip developed under Wu Ping and launched the product aiming to compete against Mediatek’s MT6225. With comparable performance, the 6600L chip was cheaper by $1 USD on its own and by $2 USD in terms of integrated solution. The price advantage is huge given that the average profit on a low-end cell phone is about $1.4 USD. As a result, Mediatek, the market leader that enjoyed over 90% of market share back then, was forced to participate in this price war in the second half of 2009.

China T&T trip: Structural changes in China handset market [The Goldmann Sachs Group, May 24, 2011] (emphasis in paragraphs is mine)

Muted group procurement result of TD smartphone in May, indicating backend loaded demand with low SP mix in 2011

Leadcore, Huawei, and Borqs indicated that China Mobile (CM) procured only 1.2mn TD smartphone (SP) with a minimum order of 200,000 for each model, well below the market
expectation of 12mn units
with minimum guaranteed order of 800,000 per model. CM has selected six models (three Ophone, two Android, and one feature phone) from Huawei, ZTE, Samsung, Lenovo, Motorola, and Coolpad. They attributed the disappointing central procurement result of TD smartphone to relatively poor quality of phones.

CM would like to give 60% of its SP orders to Marvell. However, in a recent stability test by CM, Leadcore scored at 95% pass rate, with T3G at 93% and MRVL at only 65%. …

China market: TD-SCDMA device makers reportedly urged to slow cooperation with Marvell [March 31, 2011] (emphasis is mine)

Some TD-SCDMA end market device makers in China have reportedly urged their fellow local companies not to rush to adopt TD-SCDMA chips from Marvell Technology on concerns of stability and instead should use similar chips offered by China-based chipmakers, according to industry sources.

Device makers in China stated that the development of TD-SCDMA chips by China-based chipmakers has matured with most solutions having been used in volume commercially without problems regarding to stability.

Although Marvell has been eager to develop TD-SCDMA chips and also cooperated closely with China Mobile, China-based device makers are still skeptical about the stability and commercialization of TD-SCDMA chips from Marvell, claimed the sources.

Despite the concerns from China-based device makers, Asustek Computer has unveiled recently in Beijing a number of TD-SCDMA enabled handsets built using chipset solutions from Marvell, the sources indicated.

China handset and solution makers form alliance to push global image and sales [April 27, 2011] (emphasis is mine)

More than 30 makers in the upstream and downstream handset industries in China have recently formed an alliance, aiming to promote brand image as well as to push sales of China-made handsets globally, according to industry sources in Taiwan.

Participating members include Lenovo, ZTE, TCL, Beijing Tianyu, G’Five, Coolpad, SIM Technology and chipset makers Spreadtrum Communications and RDA Microelectronics, but do not include MediaTek and other Taiwan-based handset makers, the sources noted.

The exclusion of Taiwan-based chipset solution vendors and handset makers may encourage alliance members to adopt handset solutions and parts and components from suppliers in China, the sources indicated.

Update: Huawei Joins Group of Global OEMs Accelerating Adoption of China’s TD-SCDMA Standard with New Ultra-Thin ‘Super’ Smartphone Powered by Marvell’s Single-Chip Solution [Aug 10, 2011]

Marvell (Nasdaq: MRVL), a worldwide leader in integrated silicon solutions, today announced that Huawei’s new T8300 ultra-thin smartphone, powered by Marvell’s industry’s first commercially available TD-SCDMA single chip solution, has passed China Mobile’s rigorous testing requirements and has shipped to its stores throughout China. The ultra-thin Huawei T8300 measures only 11.2 millimeters thick with Marvell® PXA918 processor and is one of the six new smart phones selected by China Mobile in its first round of procurement this year.

“Marvell’s TD-SCDMA single chip solution was the only semiconductor that offered the high-performance processing power and low power consumption we required to deliver a powerful, stylish, multimedia TD smartphone at the right price,” said Mr. Wang Yanmin, President of Mobile Phone Product Line, Huawei Device. “With its long-term commitment to TD and its leadership in the market, we were confident that Marvell could seamlessly deliver the right technology efficiently and be a true partner in bringing our new T8300 smartphone to market.”

Huawei’s T8300 is also equipped with Marvell’s latest 802.11n Wi-Fi solution and runs OMS 2.5, the newest Ophone operating system. It features a 3.2 inch capacitive touchscreen, 720p video decoding and gravity, light and proximity sensors.

Note that T8300 is the TD-SCDMA specific redesign of the IDEOS X3 smartphone announced at MWC’11 (but only delivered since June’11, for around US$240 in Singapore and for around US$200 in Malaysia). The Qualcomm MSM7227 SoC (announced in Feb’09 for sub-$150 smartphones) used in X3 was not able to support TD-SCDMA so the only available SoC was Marvell’s PXA920/918 SoCs family available since Sep’09 (although capable of passing the rigorous TD-SCDMA tests only almost 2 years later as on can see from Marvell’s above press release).

Update: The PXA920 opportunity was realized only in September 2011, two years later than the September 2009 launch. See: First real chances for Marvell on the tablet and smartphone fronts [Aug 21, 2011]

Marvell Drives New Rollout of TD-SCDMA Smartphones from China Mobile, the World’s Largest Mobile Operator [June 28, 2011] (emphasis is mine)
ZTE Launch Signals New Era of TD-SCDMA Smart Devices in China Powered by Marvell’s Industry-First Single Chipe Solutions

Marvell (Nasdaq: MRVL), a worldwide leader in integrated silicon solutions, today announced the introduction of four new TD-SCDMA (Time Division Synchronous Code Division Multiple Access) smart devices by ZTE, including two smartphones, a mobile tablet and a mobile hot spot device. All four devices are customized for China Mobile’s 3G TD-SCDMA market, and feature Marvell’s industry-first TD-SCDMA single chip solution and the most advanced mobile 802.11n Wi-Fi technology with beam-forming capability.

The ongoing collaboration between Marvell and ZTE, one of China’s most prominent and innovative communications companies, delivers highly cost-effective smart devices to Chinese end users that are tailor-made for China Mobile’s TD-SCDMA standard. Marvell and ZTE have also worked together to develop end-to-end TD-HSPA+. In the future, the two companies intend to further cooperate to develop creative mobile phone solutions and emerging mobile Internet applications. In recent years, the two companies have also collaborated on a passive optical network (PON), network switches, WLAN and CPUs.

ZTE Product Highlights

  • Blade U880, one of ZTE’s flagship smartphones, is powered by the Marvell® PXA920 and features a 3.5 inch WVGA capacitive touchscreen at a resolution of 800 x 480 pixels, delivering exquisite pictures with rich colors and multi-touch. Other features include Android 2.2 support, a TD-SCDMA +WLAN dual wireless Web connection, WLAN-AP wireless routing, CMMB (MBBMS) mobile phone TV, a 5 megapixel auto-focus camera, 720p high-definition video, GPS/AGPS navigation and a 3D graphics processing accelerator.
  • Light Tab T9, powered by the Marvell PXA920, is a 7-inch tablet with a WVGA capacitive touchscreen that is only 12.6 millimeters in thickness. It supports phone calls, China Mobile’s CMMB+MBBMS mobile TV, WLAN, Bluetooth and FM. The device also ships with GPS, an electronic compass, an eBook reader and a camera.
  • U802 is a highly affordable (sub 1,000 Renminbi [RMB]), all-white smartphone powered by the Marvell PXA918. It features a 2.8 inch touch screen, WLAN/WAPI data connection, CMMB TV, accelerometer for UI auto-rotate, 3 megapixel and 0.3 megapixel dual cameras, a 3D graphics accelerator, Android 2.2 support and a customized Widget desktop.
  • A6 is a highly affordable mobile hot spot device customized for TD-SCDMA networks powered by the Marvell PXA920. It ensures smooth switching between TD and Wi-Fi and self-creation of hotspots. It supports up to eight terminal access points and is small, portable and easy to operate.

中兴U880 ZTE U880 (ZTE中兴U880) (ZTE ZTE U880) [extracted on July 11, 2011]
(via Google translate)

参考价格: Price:
1180 [北京] ¥ 1180 [Beijing]
商家报价Business offer:
¥1043至¥1480 ¥ 1043 to ¥ 1480
  • ZTE U880 - the main screen -- 11-July-2011网络模式: GSM,TD-SCDMA Network mode: GSM, TD-SCDMA
  • 外观设计:直板 Design: Straight
  • 主屏尺寸: 3.5英寸480×800像素 The main screen size: 3.5 inches480 × 800 pixels
  • 触摸屏:电容屏 Touch screen: capacitive touch panel
  • 摄像头像: 500万像素CMOS Camera head: 500 million pixel CMOS
  • 操作系统: Android OS v2.2 Operating System: Android OS v2.2
  • 机身内存: 512MB Body Memory: 512MB
  • 电池容量: 1250mAh Battery capacity: 1250mAh

中兴U880参数 ZTE U880 parameters [extracted on July 11, 2011]
(via Google translate)

Listing Date
纠错 2011年05月 in May 2011

手机类型 Phone type
纠错 3G手机 3G mobile phone

外观设计 Design
纠错 直板 straight

主屏尺寸 The main screen size
纠错 3.5英寸 3.5 inches

触摸屏 Touch Screen
纠错电容屏 capacitors screen

主屏材质 The main screen material
纠错 TFT TFT

主屏分辨率 The main screen resolution
纠错 480×800像素 480 × 800 pixels

主屏色彩 The main screen color
纠错 26万色 262K

网络模式 Network mode
纠错 GSMTD-SCDMA GSM , TD-SCDMA

数据业务 Data services
纠错 GPRS,EDGE,TD-SCDMA,HSPA GPRS, EDGE, TD-SCDMA, HSPA

支持频段 Support band
纠错 2G:GSM 850/900/1800/1900 2G: GSM 850/900/1800/1900
3G:TD-SCDMA 1880-1920/2010-2025MHz 3G: TD-SCDMA 1880-1920/2010-2025MHz

操作系统 Operating system
纠错 Android OS v2.2 Android OS v2.2

CPU频率 CPU frequency
纠错 800MHz 800MHz

机身内存 Body memory
纠错512MB 512MB

存储卡 Memory card
纠错MicroSD卡,支持App2SD功能 MicroSD card support App2SD function

电池容量 Battery capacity
纠错1250mAh 1250mAh

键盘类型 Keyboard type
纠错 虚拟QWERTY键盘 the virtual QWERTY keyboard

机身颜色 Colors
纠错黑色 Black

手机尺寸 Phone Size
纠错114×56.6×11.8mm 114 × 56.6 × 11.8mm

手机重量 Phone Weight
纠错 115g 115g

中兴U802 ZTE U802 [extracted on July 11, 2011]
(via Google translate)

ZTE U802 - the overall appearance - sub 1000 yuan -- 11-July-2011Price:
即将上市 [北京] Upcoming [Beijing]
  • 网络模式: GSM,TD-SCDMA Network mode: GSM, TD-SCDMA
  • 外观设计:直板 Design: Straight
  • 主屏尺寸: 2.8英寸 The main screen size: 2.8 inches
  • 触摸屏:支持 Touch screen: Support

中兴U802参数 ZTE U802 parameters [extracted on July 11, 2011]
(via Google translate)

Listing Date
纠错 2011年05月 Correction in May 2011

手机类型 Phone type
纠错 3G手机智能手机 ,电视手机 Correction 3G mobile phones , smart phones, TV mobile phone

外观设计 Design
纠错 直板 Correction straight

主屏尺寸 The main screen size
纠错 2.8英寸 Correction 2.8 inches

触摸屏 Touch Screen
纠错 支持 Error correctionsupport

主屏材质 The main screen material
纠错 TFT Correction TFT

网络模式 Network mode
纠错 GSMTD-SCDMA Correction GSM , TD-SCDMA

数据业务 Data services
纠错 GPRS,EDGE,TD-SCDMA CorrectionGPRS, EDGE, TD-SCDMA

支持频段 Support band
纠错 2G:GSM 850/900/1800/1900 Correction 2G: GSM 850/900/1800/1900
3G:TD-SCDMA 1880-1920/2010-2025MHz 3G: TD-SCDMA 1880-1920/2010-2025MHz

操作系统 Operating system
纠错 Android OS v2.2 Correction Android OS v2.2

CPU频率 CPU frequency
纠错 624MHz Correction 624MHz

存储卡 Memory card
纠错 MicroSD卡,支持App2SD功能 CorrectionMicroSD card support App2SD function

键盘类型 Keyboard type
纠错 虚拟键盘 Correcting the virtual keyboard

机身颜色 Colors
纠错 黑色 Black

http://shop.zte.com.cn/main/mobile/shop_mob_partinfo.jsp?pid=3427&listName=&catalogId=13381 [extracted on July 11, 2011]
(via Google translate)

130x216ZTE Light Tab T9 ZTE Light Tab T9 2480元 2480 yuan

*TD-SCDMA HSDPA/HSUPA/GSM/EDGE 智能终端 TD-SCDMA HSDPA / HSUPA / GSM / EDGE smart terminal

*7 寸WVGA电容式触摸大屏 7-inch WVGA large capacitive touch screen

*厚仅12.6mm,纤薄便携,质感十足 Thickness of only 12.6mm, slim, portable, full texture

*超长续航能力:21天待机,5.5小时视频播放 Long battery life: 21 days standby and 5.5 hours of video playback

*采用Android 2.2操作平台,支持更多业务应用 Using Android 2.2 platform, support more business applications

*支持中国移动CMMB+MBBMS移动电视,特有智能视频增强技术有效提升画面质量 China Mobile CMMB + MBBMS support mobile TV, unique intelligent video enhancement technology to effectively improve the picture quality

*支持中国移动深度定制的宽带互联网、飞信、音乐随身听*、DM*等增值业务 The depth of customization to support China Mobile’s broadband Internet, flying letters, music player *, DM * and other value-added services

*最高支持32G扩展卡、U盘功能 Up to 32G expansion card, U disk function

*支持WLAN、蓝牙、FM功能 Support for WLAN, Bluetooth, FM function

* 支持重力传感、光敏感应、GPS导航 Support for gravity sensing, light-sensitive sensors, GPS navigation

Andorid2.2 custom blade moving ZTE U880 TD evaluation [June 17, 2011]

China Mobile repositioning for TD-LTE with full content and application aggregation services, 3G [HSPA level] is to create momentum for that

Follow-up: – Good TD-LTE potential for target commercialisation by China Mobile in 2012 [July 13, 2011]

See also: Mobile Internet (Aug’11) which is a total update on Aug 26, 2011 with a lot of additions to the original July 19, 2010 content on the following subjects:
– LTE and LTE Advanced — HSPA Evolved (parallel to LTE and LTE Advanced) — Heterogeneous networks or HetNets — Femtocells and Picocells — Qualcomm innovations in all that — Ericsson’s LTE Advanced demo — Current roadmaps on evolutions of current 3G+ broadband mobile networks

China Mobile to accelerate TD-LTE commercialization [June 10, 2011] (emphasis is mine)

China Mobile reportedly has decided to accelerate its investment in TD-LTE technology aiming to push the commercialization of TD-LTE networks one year ahead of its original schedule, according to industry sources.

The affects of poor sales on the commercialization of its 3G TD-SCDMA networks has pushed China Mobile to move forward into the 4G segment, the sources indicated.

The move by China Mobile has attracted attention from a number of chipset makers including Qualcomm, Sequans Communications, MediaTek and VIA Technologies as well as China-based Spreadtrum Communications, Hisilicon Technologies and Innofidei, as they have all been eyeing the 4G chipset market in China, the sources noted.

MediaTek has decided to expand its R&D team for the development of LTE and WiMAX chips in Taiwan and China, with plans to raid talent from other wireless chipmakers as well as from HTC, said the sources, noting that MediaTek also does not rule out the possibility of acquiring related LTE R&D teams at home and abroad later.

Global opportunities for LTE TDD [Ovum, February 2011]

Quite often, LTE TDD (also known as TD-LTE) is wrongly presented as a Chinese technology. … However, unlike TD-SCDMA, which was originally a Chinese technology that was subsequently adopted by 3GPP, LTE TDD has been part of the 3GPP standardization effort since its inception. … China Mobile learned at its cost with TD-SCDMA that being a 550 million customer mobile operator helps to attract vendor attention but is not enough to make a technology a global success. The operator consequently built a strategy to position LTE as the next GSM, making LTE the de facto global standard for mobile broadband – something most cellular operators would welcome for cost reasons.

China Mobile is facing several challenges with TD-SCDMA. One of the most acute relates to the smaller economies of scale associated with a weaker device ecosystem compared to UMTS/HSPA. This is why China Mobile quickly oriented its long-term mobile broadband strategy towards LTE TDD. … In terms of LTE TDD network expansion, we believe that it could be faster than TD-SCDMA as the network will leverage many aspects of the current TD-SCDMA network including cell site facilities, backhaul, and even parts of the base stations. … Despite the large scale of the trials, the drawback of a 1H12 launch is the impact it may have on the development of the LTE TDD ecosystem. Fortunately for the technology, another significant market, India, may launch commercial LTE TDD services before the end of 2011.

It is Ovum’s view that LTE TDD will become widely adopted in the global market, but this will take time, as exemplified by our forecasts. There will be a delay of 12–18 months between the take-off of the two LTE variants. For LTE FDD take-off should be around 2012–13, while it is expected that this will be around 2013–14 for LTE TDD. We forecast 89 million LTE TDD connections by 2015, representing roughly 25% of total LTE connections.

First Pre-commercial LTE TDD/FDD Uni-Mode Single Chipset USB Dongle to be Launched in June [June 9, 2011]

In June 2011, the world’s first pre-commercial LTE TDD/FDD uni-mode, multi-band, single chipset USB dongle supporting LTE TDD/FDD idle mobility (cell reselection) will be launched by Huawei Hisilicon. Successful completion of the IOT tests with all of the 10 infrastructure vendorsindicated that it had fully satisfied the Uu IOT and terminal test requirements of MIIT and CMCC.

Detailed  design parameters are as follows:

The TD-LTE USB Dongle makes an unprecedented advance in functionality, performance, form factor, and interoperability. Prior to the launch of this pre-commercial TD-LTE dongle, 3 other critical development stages were completed:

  1. The first release of TD-LTE single-mode USB dongle test samples were released at the Shanghai World EXPO in mid 2010. All the terminals were custom-designed for the trial/ demonstration with the 65nm chipset design. Most of them passed the IOT tests with 1-2 infrastructures.
  2. The first release of LTE TDD/FDD dual-mode Single Chipset USB (65nm design) dongle test samples were released at GSMA MWC 2011 in February 2011. The USB dongles provided by Huawei Hisilicon and Qualcomm can support TD-LTE and LTE FDD in a single chip. The dongle is designed to support TD-LTE or LTE FDD based on the software that is loaded.  IOT tests with 3-4 infrastructrues were passed during this phase.
  3. The pre-commercial TD-LTE single-mode multi-band USB dongles (45nm design) were launched during the GTI 1st workshop in April 2011. These were targeted for trial applications and installations. More than 20 TD-LTE USB dongles from ZTE provided problem free services during the two-day GTI workshop. The DL peak data rate reached 80Mbps and the average single user DL data rate reached 4Mbps. The dongle demonstrated the commercial readiness, stable performance and rapid development of the TD-LTE dongle.

The development quickly progressed from a 65nm test sample to a pre-commercial, Full IOT, Uni-mode, 45nm solution in less than a year. TD-LTE Large Scale Trials in China and commercial deployment in India and Japan will speed up its commercial readiness. The TD-LTE dongle will be commercially available in 2011.

Spreadtrum Communications Acquired Stake in MobilePeak Holdings, Ltd., a Leading UMTS/HSPA+ Modem Chipset Designer [June 9, 2011] (emphasis is mine)

Spreadtrum Communications, Inc. (NASDAQ: SPRD; “Spreadtrum” or the “Company”), a leading fabless semiconductor provider in China with advanced technology in both 2G and 3G wireless communications standards, today announced that it has acquired approximately 48.44% of the total outstanding shares of MobilePeak Holdings, Ltd. (’MobilePeak’), a privately held fabless semiconductor company based in Shanghai and San Diego that specializes in the design of highly integrated UMTS/HSPA+ modem chipsets.

Spreadtrum acquired approximately 48.44% of MobilePeak’s total outstanding shares, and provided a short-term loan to MobilePeak for the repayment of MobilePeak’s outstanding convertible bridge loans, for an aggregate cash consideration of approximately US$32.58 million. Spreadtrum intends to purchase all of MobilePeak’s issued and outstanding shares, and expects to complete the acquisition in the third quarter of 2011. Thanks to MobilePeak’s efficient operations, Spreadtrum expects the acquisition to have a minor impact on its earnings per share in Q2 and the remaining quarters in 2011, and Spreadtrum maintains its Q2 2011 guidance in terms of revenue, gross margin, and operating expenses as a percentage of revenue.

Commenting on the transaction, Spreadtrum’s Chairman, President and CEO, Dr. Leo Li, said, ’We are very pleased and excited to welcome the MobilePeak team. The synergies between the two companies and the opportunities created by this transaction are clear. With MobilePeak’s complete UMTS/HSPA+ solution, we will broaden our portfolio of worldwide wireless handset technologies, and make inroads into the WCDMA feature phone, smart phone and tablet markets.

“Utilizing our advanced 40nm technology, mature GSM/GPRS/EDGE and TD-SCDMA platforms, and working closely with MobilePeak’s Shanghai and San Diego teams, we will be well equipped to expand our international market shares. These capabilities are also a solid foundation for developing the next generation multi-mode FDD-LTE/WCDMA and TDD-LTE/TD-SCDMA technologies over the next two years.”

Mr. Qiuzhen (Joe) Zou, Chairman and President of MobilePeak, said, ’ We are eager to work with the Spreadtrum team. Since MobilePeak’s inception in 2005, our team has developed world-class baseband chipsets with support for 3GPP Standard through Release 7, including HSPA+ technology up to Category 14 with 21Mbps maximum downlink speed and 11Mbps maximum uplink speed. MobilePeak has more than 100 patents granted or pending worldwide, and its solutions have passed GCF tests and top-tier handset makers’ strict in-house tests. We are confident to roll out the first 40nm HSPA+ solution platform for feature phones and smart phones by 2012.’Mr. Zou will assume the role of Chief Technology Officer at Spreadtrum.

Mr. Zou founded MobilePeak in 2005 and has since served as MobilePeak’s Chairman. He served as MobilePeak’s Chief Technology Officer from 2005 to 2010 and assumed the position of President in 2010. Mr. Zou has more than 18 years of experience in the wireless communications industry. From 1993 to 2003, Mr. Zou held various positions with QUALCOMM, Inc., where he became a Vice President of Engineering in 2000. At QUALCOMM, Mr. Zou led various semiconductor design projects, including multiple generations of CDMA baseband chipsets. Mr. Zou received a BSEE from Southeast University in Nanjing, China in 1992, followed by an MSEE from Stanford University in 1993.

China market: 3G network investment totals CNY289 billion [June 14, 2011]

China Mobile, China United Telecommunications and China Telecom have cumulatively invested a total of CNY289 billion (US$43 billion) in setting up 3G networks consisting of 697,000 base stations around China, China-based http://www.xinhua.com has cited Ministry of Industry and Information Technology officials as indicating.

The three carriers had 67.57 million 3G subscribers in total as of the end of April 2011, the report indicated.

Goal for domestic 3G network set at 50m users [June 9, 2011]

The Chinese government has set a target of achieving more than 50 million third-generation (3G) mobile users by the end of 2011 for its homegrown telecommunication standard, but analysts predict the technology may not be the biggest winner in the 3G era.

Zhao Bo, deputy director of the electronics and information department with the Ministry of Industry and Information Technology, said on Wednesday that China should continue to push forward its TD-SCDMA (Time Division-Synchronous Code Division Multiple Access) 3G technology.

“The TD-SCDMA technology should realize its strategic target of acquiring at least one-third of China’s market, and grab 50 million users by the end of this year,” Zhao said.

He said he is confident that China Mobile Ltd, the world’s biggest telecom carrier by users, will achieve the goal within the schedule.

China Mobile is building the TD-SCDMA 3G network in China, while its domestic rivals, China Unicom Ltd and China Telecom Corp Ltd, adopted the WCDMA and CDMA2000 3G technologies.

Ye Lin, an official from the technology department of the Ministry of Industry and Information Technology, said since the three Chinese telecom operators obtained 3G licenses in early 2009, China has made major progress in 3G network development.

The three carriers have invested a total of 289 billion yuan ($44.6 billion) in 3G network construction in the past three years, Ye said. More than 697,000 3G base stations have been set up in the same period, he added.

The ministry recently announced that the number of 3G users in China reached 67.6 million by April.

China Mobile topped the list with 29.4 million, and China Unicom followed with 20.4 million. The smallest telecom carrier, China Telecom, had 17.8 million by April.

The great leap forward: How the world’s largest operator aims to jump one generation [Ericsson Business Review, June 10, 2011] interview with Bill Huang, GM of the China Mobile Research Institute (emphasis is mine)

China Mobile is pushing the time division (TD) flavor of LTE hard. Why is it necessary to have more than one kind of LTE, and what benefits does TD offer end users?

To understand, you must look back at what caused this technology evolution. There was an understanding that to go digital we must have a global standard. There were many candidates but they fell apart. GSM was a very good effort and succeeded in becoming the first real global standard. Then came 3G. In retrospect, 3G was a questionable development. It optimized voice capacity and quality but data traffic was kind of an afterthought. GSM did the job just fine. The best example is China Mobile. We deployed the world’s largest GSM network with the lowest tariffs, and never saw the need for a better voice service. 3G was a solution looking for a problem. And indeed, WCDMA did not take off until HSPA was developed. So from a historical perspective, HSPA was the only killer application for WCDMA, and internet access is the only reason HSPA took off.

Mobile internet is the only growth area for mobile communicationLTE carries the heritage of GSM and WCDMA with it … the selection of TD technology as a strong candidate in the evolution of LTE gives us an internet advantage. Historically, mobile communication has been symmetrical, dominated by voice. Internet traffic is not symmetrical. Downlink is typically 10 times faster than uplink, and addresses this. TD is unique in the way you can adjust the uplink and downlink ratio. And that’s why TD has become very useful – not only does it allow operators to use spectrum more efficiently, it also offers consumers a better user experience and lower costs.

How will China Mobile use 3G?

We will accelerate. For China Mobile 3G is an important licensing issue, and we are building a 3G infrastructure to create the momentum [with 3G HSPA level?] with which we move towards 4G.

Isn’t that a long way off in the future? Don’t you need to develop mobile broadband now?

Completely wrong! We are targeting commercialization next year, not in five years. In fact, operators in India and Japan plan to go commercial this year, but we are not that aggressive. So you see: 4G is not being pushed by the vendors, like 3G was. 4G is being pushed by the carriers. LTE is the only standard in the industry where, if you have a product, people will buy it right away. It’s  the reverse of how things used to be, and very interesting. LTE is being developed fast, but not fast enough.

Instead of looking at data volume, we can charge for downloading a movie, regardless of size, or a song or a book. We have all of that already in place. But frankly I don’t think consumers are used to content based billing, so we need to educate them – in many cases. … China Mobile’s strategy is that we will be a content and application aggregator, therefore becoming a smart pipe – not a dumb pipe that just provides access without aggregating anything. So we become the Walmart of information.

Instead of charging for content or traffic we can create a club. People are familiar with that concept. You pay one monthly charge and everything is free. It’s very effective; Netflix is a good example of a subscription based service that I think has a very good future as a business model. At China Mobile we can do anything with scale, but we can’t do everything in a niched or personalized way. So, if we provide a club we get to leverage that scale. We have 600 million subscribers. If only 10 percent sign up, that’s already 60 million members. If just 1 percent sign up, that’s 6 million members.

How do you handle the threat from the over-the-top (OTT) players, the internet companies?

It is a very real threat: OTT services can now replace almost any communications service imaginable. ott services are usually free, so this business model is based on backward billing. … What we hope to entice the user with is the quality of service – that’s our most important competitive advantage. … we must also look to reduce the cost of our services, potentially making them free as well. If we use other ways to generate revenue – like advertising or the club concept, and the user subscribes to a bandwidth bundle – we could provide the voice club service for a fixed fee, while guaranteeing the quality. Then I think we could kill off OTT very easily.

What do you expect from the cloud?

For mobile internet we have established a three-front strategy: LTE; the smartphone (operating Ophone, which is based on Android plus); and cloud computing. Only by combining all three can we create a really competitive and successful mobile-internet business.

We believe the cloud is an infrastructure technology that can address the cost of computing, reduce energy consumption and become a common platform for society, consumers and companies. Historically telecom operators have been reluctant to embrace it, but this was a mistake. In the US, I think carriers have already given up. They allow Google, Amazon and Microsoft to run cloud computing. But there are opportunities for China Mobile. If anything, we can do infrastructure on a large scale, data centers and so on. We do not have to develop all of the internet services in the world to compete with Google or Facebook. What we could do is build a cloud-computing infrastructure and invite all the internet companies to partner with us.

The most important phenomenon that will drive change in the mobile communications industry today is the evolution of smart phones. What used to be a communications device is now an all-purpose computing device. Today, fewer than 20 percent of our subscribers use smartphones. We think that in three to five years over 80 percentof our subscribers will use smartphones.

Have tablets changed this picture?

No, I see them as just bigger smartphones. In fact, Microsoft and others have tried for many years to introduce tablets and failed. But when Apple introduced the iPad, which is just a big iPhone, everybody loved it. So, this proves that a successful tablet is a big smartphone. The look and feel is very similar to that of a phone.

How do you work with the app store concept?

We embraced it completely and the way we differ from Apple is that we support all operating systems – including iOS if Apple wants us to. … We hope to create a platform that is independent of operating systems. … The reason China Mobile chose Android was that we need the flexibility to differentiate. We need to add components, APIs and functionality to Android. That’s why we call it Android plus.

I don’t know if video is going to be a major revenue stream, but I am sure it’s going to be a major application. I say that because making video calls on IMS [IP Multimedia System]will become an internet application, so it depends on how we charge for it. It opens up the potential for more creative billing strategies. We would be able to deliver a level of quality that would be very difficult for an ott player to achieve.

We studied what kind of apps users download and you’d be surprised how similar people’s tastes are. The top 1,000 apps have a 99-percent share of the market. That’s very good news for operators. We are not very good at long tail, but we are definitely good at short tail.

We want a mobile phone to be able to transmit TV to a large screen – so you can watch the program on your phone’s small screen or your computer screen, but also take it with you when you visit someone and watch it together on a large screen, in high definition. You won’t need the DVD. The mobile becomes the set-top box. So China Mobile doesn’t need a three-screen strategy – we only need a one-phone strategy. We are working on a wireless multimedia transmission technology called WiMo for this, and expect it to be available in two to three years.

Are you ready for mobile banking?

To be frank, we have not figured out which technology’s the right one to get the credit card or the payment mechanism into the phone. The most viable one for phones would be near-field communication (NFC). We have already established our architecture for mobile commerce and an account system with connections to all the banks, so from a service point of view we already have everything in place. What we need right now is for more phones to have the capability to carry the mobile payment and transaction engine – the right chip and components to support it, along with NFC.

Is banking a comfortable area for operators?

We don’t necessarily have to compete with the banks. We can rather just be the wallet and charge a monthly fee for the service. In other words, the banks can issue the cards and put them into our phones. We will make our platform open for all the banks. We don’t have to issue our own cards; all we have to do is to become the channel for the credit cards. And then we can make money. It is a great service – to sign up you don’t have to fill in a lot of forms; we have all the customer data that is needed.

How China institutional changes influence industry development? The case of TD-SCDMA industrialization [May 25, 2011]

… in view of that China state capitalizing on different SOEs and accompanying institutional changes, we further break framework into two time-periods:
– During stage 1 (2002- 2008) that China central government started to support Datang Group, aiming to commercialize TD-SCDMA technology into products. State also assigned Datang to lead TDIA [TD-SCDMA Industry Alliance designed to function as the platform of TD-SCDMA development, involving the activities of setting standard, sharing IPR, organizing supply chain, and coordinating among members] for TD-SCDMA industrialization.
– In stage 2 (2009-present), China state turned to mandate China Mobile to promote TD-SCDMA, not only responsible for networking building and service providing, but also for organizing of mobile handset supply chain (Wang and Tsai, 2010).

The R&D capacity of Datang Group as a whole is questionable, despite that Datang set home-grown TD-SCDMA standard (interview ES1). Since 1992, CATT had received national grant to undergo the earliest home-grown standard (SCDMA, 2G), but failed to commercialize due to weak R&D capacity in commercialize large-scale system development (Chen, 2005; Soh and Yu, 2010)11. Second, Datang XiAn, founded in 1993 and specializing for telecommunication equipment manufacturing for digital automatic switching (SPC) product, can not compete with local minying enterprise Huawei and mixed enterprise ZTE since late 90’s to early 2000’s (Fuller, 2005: 201; Harwit, 2007; Liu, 2008).

… the Datang Group is state-owned enterprise spin off from CATT, and they didn’t directly confront market and no pressure for survival(interview ES1and IS1). Although state continuously channeled national resources to compensate the loss (cf. Table 1 2004 negative profit) from developing TD-SCDMA and that Datang Mobile indeed deployed on R&D and accomplish some patents, Datang Group as a whole can not develop innovation capacity in designing parts and testing whole TD-SCDMA network system. One of the reason is that Datang Group lacked of associated knowledge and experience before (Soh and Yu, 2010).

The same situation occurs in TD-SCDMA mobile terminal products. The joint ventures IC design firms of Datang and MNCs, such as T3G or Commit, launched none of TD-SCDMA products to the market and ended up merged by ST-Ericsson or bankrupted. Likewise, Datang Mobile fruited no complete TD-SCMDA handset, so the state turned to university and public-sector research institutes to support the development of TD-SCDMA (Liu, 2008, 2009).

TDIA also confronted frustration in knowledge sharing and organizing of supply network. There’s no patent license-out or cross-license among member (Sumtttier et al., 2006; Whalley et al., 2009), except occasional license out from Datang to ZTE and Putian (Soh and Yu, 2010). Theoretically, Datang supposed to invite and global companies, such as Huawei and ZTE, into the supply chain of TD-SCDMA and leverage on their experience. But Datang, as the father of TD-SCDMA, tried to protect and guard their child (interview ES1). On the other hand, the R&D capacity of Huawei and ZTE outperformed Datang, so Huawei and ZTE won’t bother to join Datang on patent sharing and further on TD-SCDMA technology/product (interview RS4 and RS6).

State pick winner [and looser] SOE as national team

By contrast to Datang, the state evolves to pick China Mobile as the new national team by assessing past performance as selection criteria. First, China Mobile has near 500 million (end of 2008) users, making it as the largest telecom operator worldwide (BMI, 2010). So it’s a feasible path to migrate most China users from 2G (GSM) to home-grown standard (Interview, ES1). Second, China Mobile is most profitable and potential operator in China that China Mobile had the capacity and capital to promote TD-SCDMA (Interview ES1, SS2, ES1).

… the state threatens China Mobile: TD-SCDMA or none of 3G licenses. Coupled with impact on Mr. Wang’s political career, China Mobile has no choice but to promote TD-SCDMA (Interview ES1). On the other hand, the state also subsidizes RMB$10 billion (SinoCast, 2009) to compensate for potential loss estimated RMB $30 billion each year (Interview RS5).

In short, China state changes institutional means of supporting core SOE by both subsidies and threat, rather than carrot without stick. The state also changes to assess SOE’s past performance for prospects of TD-SCDMA. Despite the mandatory mission, China Mobile indeed starts to recruit R&D staff with high salary (Interview RS5) and experiments several innovations on TD-SCDMA network deployment, mobile phone launch, and service package to users (Interview IS1).

For the particular case of TD-SCDMA development, this paper contributes to discover that China state experiments and adapts institutions, along with the mentality adjusted from ‘standard matters’ to ‘R&D capacity rules’. More, the macro-level institutional learning also leads to meso-level institutional adaptation in the telecommunication industry. China Mobile acts as a mediator between state and network of firms, with the resources re-distribution and demand for collective action through the whole supply chain. Therefore, China Mobile not only managed to offer users with innovative service and networking build through in-house R&D, but also to organize the preliminary formation of TD-SCDMA production networks.

China Mobile, as a customer rather than rival of equipment manufacturers, had invested RMB$148 billion during 2008 to 2010 through four stages bids of infrastructure construction (BMI, 2010; IEK, 2010). Both local and global firms, such as SOEs Datang and Putian, minying Huawei and MNCs Nokia-Siemens, all compete for TD-SCDMA network building (Wang and Tsai, 2010). The final winners are Huawei and ZTE, for their cheaper but good product quality than MNCs’ and SOEs’ (Interview ES2). It indicates that China Mobile also selects their cooperating partners basing on market performance as the foremost criteria. This is different from the previously protectionism signal that Datang sent, since the SOE was targeted to dominate China market under the umbrella of MIIT, and which formulated the national industrial policy.

China Mobile also realizes that the biggest problem of TD-SCDMA industrialization is the shortage of TD-SCDMA handsets in the market. Under the pressure from mission and profit, China Mobile urges their current partners (e.g. Nokia and Motorola) to produce TD-SCDMA products through replicating the same incentives tools that state imposed upon China Mobile. That is, China Mobile, basing on their market significance, threatens their main suppliers (e.g. Nokia and Motorola): TD-SCDMA products or none of other business (Interview IS1). On the other hand, China Mobile first offered RMB$ 600 million to three chipsets designers and nine handset suppliers, to induce these leading firms to offer cheap products to penetrate China market. Thus, Nokia, HTC, Samsung and some local firms started to launch TD-SCDMA handsets. Most of all, China Mobile plays as a coordinator to integrate the supply chain, from upstream IC design firms to downstream  manufacturers (Interview IS1).

China Mobile awards 12 companies TD-SCDMA research grants [May 17, 2009] (p. 4, emphasis is mine)

China Mobile will provide funding of RMB 600 million ($87.77 million) to 12 mobile phone and chip manufacturers for the research and development (R & D) of terminal devices based on the homegrown TD-SCDMA standard, China Mobile announced on May 17.

According to the announcement, the 12 companies include nine mobile phone manufacturers, namely Motorola Inc., Samsung Corp., Yulong Computer Telecommunication Scientific Co. Ltd., Dopod Communication Corp., LG Electronics (China) Co. Ltd., ZTE Corp., Hisense Group, Guangzhou New Postcom Equipment Co. Ltd. and Huawei Technologies Co. Ltd. along with three chip makers, namely T3G Technology Co. Ltd., MediaTek Inc., and Spreadtrum Communications Co. Ltd.

As China Mobile stipulated that chip makers and mobile phone manufacturers pair up in the R & D project, T3G will work with Motorola, Samsung, Dopod and Huawei while MediaTek will work with Yulong, ZTE and LG. Spreadtrum will collaborate with Hisense and New Postcom.

Motorola, Samsung, Yulong, Dopod and LG, together with their chip maker partners [T3G and MediaTek], will receive combined funding of RMB 310 million ($45.35 million) from China Mobile for R & D of high-end TD-SCDMA mobile phones. The remaining mobile phone manufacturers [Huawei, ZTE, Hisense and New Postcom], together with their chip maker partners [T3G, MediaTek and Spreadtrum], will be responsible for R & D of low-end TD-SCDMA mobile phones and will receive combined funding worth RMB 290 million ($42.42 million) from China Mobile, the announcement said.

China Mobile Reveals TD-SCDMA Handset Subsidy Bidding Results [May 17, 2009] (emphasis is mine)

On May 17, China Mobile (NYSE: CHL; 0941.HK) held a signing ceremony for subsidies targeted at joint TD-SCDMA handset R&D, with nine handset manufacturers and three chip manufacturers signing a “cooperative R&D” agreement. China Mobile will invest RMB 600 mln in the subsidies, driving total investment of over RMB 1.2 bln in TD-SCDMA R&D, with the remaining contributions coming from participating vendors.

6 joint bids won subsidies for China Mobile’s “Flagship Broadband Internet Handset” project: Motorola and 3G chip manufacturer T3G; Samsung and T3G; mobile handset manufacturer Yulong and TD-SCDMA chipmaker Leadcore Technology; Smartphone manufacturer Dopod and T3G; LG Electronics and Leadcore; and ZTE and Leadcore. China Mobile will invest approximately RMB 310 mln in the project.

For the “Low Cost 3G Handset” project, the five successful bids were ZTE and Leadcore; LG and Leadcore; Hisense and wireless baseband chipset provider Spreadtrum Communications (Nasdaq: SPRD); Guangzhou New Postcom and Spreadtrum; and handset manufacturer Huawei and T3G. China Mobile will provide approximately RMB 290 mln of funding for this project.

7 months later these 11 handsets were shown [as per China Mobile’s Dec 17, 2009 press release in Chinese

China Mobile‘s 200 Models of TD Mobile Phone Listing This Year [March 18, 2011]

Recenly Li Yue, president of China Mobile, attended the Results Announcement said that China Mobile has an adequate supply in the 3G mobile phones. Currently, 50 companies are available to TD phones, and another 200 models will be able to supply soon.

At the end of last year, China Mobile has conducted 6 million low-end TD mobile phones tender. And in February this year, China Mobile has conducted 12.2 million high-end TD mobile phones procurement, of which, about 150 million units flagship Internet terminals, 30 million units dual card dual standby terminals, 320 million units multimedia intelligent terminals, 400 million units fashion and entertainment terminals and 320 million units universal intelligent terminals.

Xue Taohai, vice president of China Mobile, said the group will control the handset subsidies in 17.5 billion yuan. It is reported that China Mobile set a new goal for 25 million 3G users this year, and the current 3G network has covered 656 cities.

China Mobile Changes Strategy in Terminal Procurement [April 22, 2011]

Foreign mobile phone makers that has been disappointed in the bidding invitation of China Mobile Ltd. (SEHK: 0941 and NYSE: CHL) for centralized procurement of 6 million TD-SCDMA terminals last year, have turned things around in this year’s first round of centralized procurement kicked off by the leading telecommunications carrier.

Reporters find out that foreign mobile phone makers have won more than half of the share in recent centralized procurement, indicating that China Mobile has adjusted its philosophy in terms of the development of TD-SCDMA terminals, pointed out an insider who declines to reveal his name, saying that the company is not satisfied about current situation for the distribution of TD-SCDMA mobile phones.

A top executive of China Mobile opens out that the sales volume of TD-SCDMA terminals is small, indirectly confirming the report, saying that TD-SCDMA mobile phones have bad quality and high prices.

In the opinion of a researcher of iSuppli, China Mobile has changed its strategy to snatch market share and enlarge user base through low-end TD-SCDMA terminals and will improve the brand influence and boost the sales volume of TD-SCDMA mobile phones through the promotion of flagship terminals.

At the end of 2010, a domestic TD-SCDMA chipmaker has begun preparing for the next year’s centralized procurement of TD-SCDMA mobile phones by China Mobile, since the distribution of TD-SCDMA terminals completely relies on telecom carriers.

The top management of the chipmaker has been determined to win the centralized procurement. However, in February 2011, the announcement of China Mobile about the result disappointed them.

China Mobile has focused on medium- and high-end mobile phones in this year’s first round of centralized procurement while bid winners were all domestic TD-SCDMA terminal makers last year.

The changing philosophy of China Mobile is unfavorable to domestic mobile phone makers, which are mostly oriented to the manufacturing of medium- and low-end TD-SCDMA terminals.

Take the example of upstream chipmaker Leadcore Technology Co., Ltd., its shipment of TD-SCDMA chips topped 13 million in 2010. In last year’s centralized procurement, the company took over half of the share.

In contrast, US IC designer Marvell Technology Group Ltd. (Nasdaq: MRVL) that is oriented to the medium- and high-end TD-SCDMA smart phone market is likely to snatch more than half of the share in the latest centralized procurement.

Whatever strategy China Mobile adheres to, its aim will not change. That is to attract more customers for TD-SCDMA mobile phones. A top executive of Leadcore Technology believes that high-end TD-SCDMA terminals will help China Mobile improve its brand influence. But, to boost sales volume, the company still has to rely on medium- and low-end mobile phones.

(1 USD = CNY 6.51) Source: http://www.nf.nfdaily.cn (April 22, 2011)

Muted group procurement result of TD smartphone in May, indicating backend loaded demand with low SP mix in 2011 [May 24, 2011]

Leadcore, Huawei, and Borqs indicated that China Mobile (CM) procured only 1.2mn TD smartphone (SP) with a minimum order of 200,000 for each model, well below the market expectation of 12mn units with minimum guaranteed order of 800,000 per model. CM has selected six models (three Ophone, two Android, and one feature phone) from Huawei, ZTE, Samsung, Lenovo, Motorola, and Coolpad. They attributed the disappointing central procurement result of TD smartphone to relatively poor quality of phones. That said, Leadcore believes that MIIT has required CM to add 30mn TD-SCDMA subs in 2011 and TD terminal or chipset shipment is likely to be 53mn in 2011. Leadcore is hopeful that feature phone and SP could represent most of the TD phones with fixed wireless terminals at only 3-4mn in 2011. Leadcore expects CM to shift to open channels, which also receives a subsidy through contracts with provincial or local CM subsidiaries; and we predict the mix of open channel and central procurement to increase from 30% and 70% in 2011 to 70% and 30% in 2012, respectively. Similarly, Spreadtrum also expects TD chipset market to reach 45-50mn in central procurement (fixed wireless 35%, feature phone 50%, smartphone 10-15%), and 60mn-70mn units in total (including the open channel). Spreadtrum has seen strong recent demand from open channel. We note that open channel tends to sell more feature phones and fixed wireless phones.

Leadcore and Spreadtrum aim to gain TD market share in 2011

Leadcore believes that it has 50% of TD market share together with Mediatek. Marvell has relocated some of its R&D resources to China and is getting support from OEM. CM would like to give 60% of its SP orders to Marvell. However, in a recent stability test by CM, Leadcore scored at 95% pass rate, with T3G at 93% and MRVL at only 65%.

Rumor: China Mobile Establishes National Handset Procurement Arm [May 27, 2011]

An industry source said recently that China Mobile (NYSE: CHL; 0941.HK) has circulated a memo internally announcing the establishment of a terminals center, to be announced officially in August, that will operate as a national-level handset procurement subsidiary. The operator is currently making necessary internal adjustments in order to transfer staff to the new center.

The new terminals center will be operated like a division of China Mobile, overseen directly by China Mobile headquarters, and will focus on terminal procurement and sales. The center will be comprised of several departments, including products, procurement, marketing, channels, systems support, general services, and finance. While it is being referred to internally as the “mobile terminals center,” externally it will operate like a company.

Previously, the source said, China Mobile’s headquarters had been separate from provincial-level procurement operations, which it will now unify under the new terminals center. If a handset manufacturer is not on the center’s supplier list, it will be unable to promote its handset through provincial subsidiaries.

Earlier reports claimed that China Mobile had planned to transform handset distributor Topssion, which it acquired in March, into a terminal sales subsidiary.

Borqs Unveils Latest OPhone Handsets at 14th China Beijing International High-tech Expo [May 20, 2011] (emphasis is mine)

With the coming of the World Telecommunications Day, the 14th China Beijing International High-tech Expo (the Expo) opened at China International Exhibition Center from May 18th to 22nd, 2011. This Expo was co-organized by several state departments of China, including the Ministry of Science and Technology, Ministry of Commerce, Ministry of Education, and Ministry of Industry and Information Technology. Many innovative enterprises participated into the Expo with their innovation achievements. Borqs, one of the members of China’s National Special Key Projects, were also invited and exhibited the new serial of TD smartphones running on OPhone OS 2.0 or higher.

From “Made in China” to “Created in China”, and then to “China Standards”, enterprises based in Zhongguancun have always been committed to innovation and development since their establishment. As technology advancement and industry transfer are seen everywhere around the world, China Mobile developed and launched the first 3G standard in China, TD-SCDMA, a decade plus ago. As of today, China Mobile has maintained 61.9 million 3G mobile users as well as 26.99 million TD-SCDMA users. Recently, Mr. Jianzhou Wang, the Chairman of China Mobile, pointed out that TD system was no longer a test network but a commercial one covering 656 cities around China with the joint efforts of China Mobile and its industry partners from within and outside the country. Especially, the TD-SCDMA industry chain has emerged in recent years,, consisting of near 50 telecommunication enterprises, including many manufacturers and providers of network, terminals and chips, in and outside China.

OPhone OS is closely related to TD. Up to now, OPhone smartphones account for 50% of TD smartphones. At the Expo, a wide range of TD terminals are exhibited, including many new OPhone-based models. Following its receiving recognition from the state officials at the prior 11th Five-year Plan Major Science & Technology Achievements Exhibition, OPhone OS continued to be all the rage and attracted many visitors at the Expo.

TD-LTE Industry Briefing – May 2011 by China Mobile [May 27, 2011]

TD-LTE Large Scale Trial in China Update –All 6 Cities Have Launched Base Stations

  • All 6 cities have launched base stations. The number of launched Base Stations has reached 20% of the planned ones.
  • The planning of continuous coverage in hot spot areas has been completed in all 6 cities. The constructions are under way:
    – 78% supporting facilities modification accomplished
    – 69% equipments arrived
    – 35% equipments installed
      • Transmission tests have been completed in several cities
      • EPC and Security tests initiated in several cities in April 2011
      • RANtests are planned to start in the end of May 2011TD

GTI Official Website: http://www.lte-tdd.org

The GTI official website was launched during the 1st GTI Workshop [on 27-28 April 2011 in Guangzhou, China]. The website shares the latest information about TD-LTE related News, Events, Reports and Statistics. GTI operators have the rights to access the Working Space on GTI website for technical presentations and further deliverables of GTI.

China Mobile Almost Finishes Pilot TD-LTE Network Deployment [June 7, 2011]

China Mobile, one of the Big Three telecom operators in the country, has completed deployment of a pilot TD-LTE network in most of the cities selected for a planned test, disclosed people familiar with the matter today.

Most of the system equipment makers have completed the first TD-LTE call in cooperation with the branches of China Mobile, according to one of the people, noting that additional telecom equipment makers are expected to make a presence in the program for an expansion of the test.

The TD-LTE network test, kicked off on March 24 with the releasing of document from the Ministry of Industry and Information Technology (MIIT), has been going on smoothly reflected by a group of telecom equipment makers’ success in TD-LTE call.

Huawei Technologies Co., Ltd., one of the top-ranking telecom equipment makers in the country, helped launch the first TD-LTE wireless connection in Shenzhen on April 6, facilitating the rollout of high-speed download service and high-definition video service based on the TD-LTE data card.

TD LTE to revolutionize wireless broadband [May 31, 2011] (emphasis is mine)

During the second international LTE conference held in New Delhi, the industry said that it has become imperative to deploy LTE technology to set standards. With numerous benefits of TD LTE, the industry is graping with deployment challenges while early availability of devices has become another area of concern. Bharti Airtel is conducting trial in Chandigarh. The deployment of TD LTE at right time as well as availability of devices will be a challenge, and it is coming out with a lot of hope.

Speaking at the event, J Gopal, Advisor (Technology), DoT said that they are looking forward for this technology to bridge digital divide and facilitate economic growth. With various consumer-centric advantages, TD LTE is becoming an important tool for every operator today while some of them have already begun trials.

“Eventually we see migration from WiMax to TD LTE and significantly there is a global initiative to promote it. India and China are the leading contenders of this technology, which is mature now,” said Sujit Bakre, head, 4G business development and product management (APAC), Nokia Siemens Networks. Large investments have already been done on 2G/3G and now we should leverage voice onto TD LTE, he added. Bakre reiterated that they bagged two commercial deals in Middle-East and Latin America but however couldn’t name the operators.

Puneet Garg, VP, Networks, Bharti Airtel said that TD LTE is a next step towards broadband wireless and is the fastest BWA technology and has become a realty now. “It will make high speed wireless broadband affordable to urban and rural consumers. This technology facilitate low TCO”, he added.

Rajan S Mathews, director general, Cellular Operators Association of India said that broadband is the single big imperative for the country. “As we are poised to be the largest economy by 2050, therefore we couldn’t afford to miss the broadband bus,” he said. Mathews said that the government is aggressively implementing the national policy on broadband and TD LTE is a great opportunity for the country to get into building standards.

20 Operators Have Joined GTI [May 19, 2011]

Following the 1st GTI Workshop, GTI has gained strong momentum. Till May 19th, 20 operators from Europe, Asia, America and Oceania have formally joined GTI.

These 20 GTI operators are:

Aero2, Belltell, Bharti Airtel, China Mobile, Clearwire, Datame, E-Plus, FarEastone, First International Telecom Corp,KT, Omantel, Nextwave, Packet One, Smoltelecom, SoftBank, Tatung Infocomm, Vividwireless, Vodafone, Voentelecom, Woosh.

GTI was formed to promote the TD-LTE ecosystem as a major standard in mobile broadband technology and drive the early development TD-LTE networks. Seven operators including Aero2, Bharti Airtel, China Mobile, Clearwire, E-Plus, Softbank Mobile and Vodafone jointly kicked off GTI activities in February during Mobile World Congress in Barcelona.

GTI objectives are:

1) Energizing the creation of a world-class and a growth-focused business environment;

2) Delivering great customer experience and bringing operational efficiencies;

3) Promoting convergence of TD-LTE and LTE FDD in order to maximize the economy of scale;

4) Facilitating multilateral cooperation between and/or among operators.

GTI has started preparing the 2nd Workshop and initiated the discussions on the technical areas which will be investigated among GTI operators.

Vividwireless joins global TD-LTE promotion initiative [May 19, 2011]

vividwireless a Seven Group Holdings Limited [media-related] company, owns and operates Australia’s first 4G wireless broadband network. vividwireless launched in Perth in March, 2010. The network has since been expanded to cover select parts of metropolitan Sydney and Melbourne, Adelaide, Canberra and Brisbane.

Vividwireless – which presently operates mobile WiMAX networks in capital cities – has joined the Global TD-LTE Initiative (time division long term evolution) launched at Mobile World Congress in Barcelona in February.
GTI, which held its first working meeting in Guangzhou earlier this month, was formed to promote the TD-LTE ecosystem as a major standard in mobile broadband technology and drive the early development TD-LTE networks. Its founding members were ChinaMobile, Bharti Airtel, Softbank Mobile, Vodafone, Clearwire, E-Plus, and Aero2. Vividwireless says it was invited to join at the launch.

Commenting on the launch of GTI at the time, Julien Grivolas, principal analyst at Ovum said: “A certain scale for LTE TDD was guaranteed by strong support from China Mobile, the largest operator in the world. However, as TD-SCDMA [China’s 3G mobile standard] proved to its cost, this is not necessarily enough to make LTE TDD technology a global success. China Mobile consequently considered it strategically vital to garner support from other key players.”

He added: “This LTE TDD evangelism started years ago, often behind the scenes, and finally came to fruition with the creation of the GTI. As a consequence, the main merit of the GTI announcement really lies in the official support for LTE TDD (and better harmonisation with LTE FDD) from a number of international players.

“With heavyweights such as China Mobile, Bharti Airtel, Softbank Mobile, and Vodafone Group – serving more than 1.1 billion subscribers in total at the end of 2010 – the GTI is certainly heading in the right direction. However, to further contribute to the virtuous cycle that the GTI aims to fuel, the organisation remains fully open to all operators and technology vendors interested in promoting LTE TDD.”

Vividwireless said that the GTI would “organise a series of activities to bring TD-LTE operators and vendors together to share development strategies and technology know-how, expediting the development of terminals and fostering global roaming and low-cost terminals.”

Vividwireless trialled LTE in Sydney earlier this year and says “The trials…demonstrated that TD-LTE can deliver wireless broadband that is faster than ADSL2+, with peak speeds as high as 128Mbps and consistent ‘real world’ speeds between 40 – 70Mbps.”

Following the trial the company said it was sufficiently impressed to consider using TD-LTE rather than WiMAX for its planned major east coast network rollouts. CEO Martin Mercer said “The technology is far more mature than we had expected. The Huawei SingleRAN solution [used in WiMAX mode in Vividwireless’ networks today] is basically ready to go today and is at a price point that would enable us to take service to market at prices comparable to what we offer today.

“We could deploy this technology in our east coast rollout and provide customers with services superior to those we provide today and equivalent prices. The question for us now based on the results of the trial is: do we rollout TD-LTE on the east coast…and do we deploy it in other markets as well?

vividwireless First To Trial 100Mbps Broadband TD-LTE In Australia [Nov 10, 2010] (emphasis is mine)

Leading 4G wireless broadband provider, vividwireless, today announced the first
Australian trial of superfast mobile wireless broadband – TD-LTE – (Time-Division
Duplex Long Term Evolution) which can deliver peak speeds of more than 100Mbps.
vividwireless CEO Martin Mercer said the trial with technology partner Huawei Australia
was part of the company’s continuing technology roadmap assessment.

“vividwireless is trialing the advanced TD-LTE technology to evaluate and determine the
very best mobile voice and broadband service to meet our customers’ future needs.
vividwireless is determined to ensure that it retains its ranking as Perth’s fastest wireless
broadband provider,” he said.

Huawei’s global experience with the technology has found TD-LTE can deliver wireless
broadband that is much faster than ADSL2+, with peak speeds of more than 100Mbps.
The trial will cover the market readiness of TD-LTE, including the technology’s capacity,
coverage and ‘real world’ performance.

“Demand for high speed wireless connectivity is increasing rapidly. Customers want fast,
reliable HD video streaming, gaming, communications, transactions and other
entertainment to be available wherever they are,” said Mr Mercer.

“Our current network satisfies this demand and this trial will help us to ensure that we
continue to be Australia’s leading wireless broadband provider,” he added.

The trial will commence in December 2010 in inner-city Sydney around Redfern, as well
as Western Sydney around Horsley Park. These locations will allow vividwireless to test
the performance of the technology in high demand, high density, inner city conditions
such as apartments and cafes, as well as suburban conditions.

Huawei Australia Chief Technology Officer Peter Rossi said, “Having worked with
vividwireless in rolling out its Perth network and the initial footprints in Sydney,
Melbourne, Adelaide, Canberra and Brisbane, we are delighted to be working on this
TD-LTE trial.

“Huawei’s SingleRAN solution allows vividwireless to make a smooth transition from
WiMAX to TD-LTE to suit its network requirements, and with Huawei holding the title of
the world’s number-one LTE essential patent holder
, vividwireless will always have a
cutting-edge mobile network,” he concluded.

Ovum encourages operators in developed countries to be pragmatic [May 6, 2011] (emphasis is mine)

Ovum has highlighted the potential of LTE TDD on many occasions, but has also pointed out the various challenges it faces. In particular we have highlighted that the current status of the device ecosystem may negatively impact the pace of rollout. Devices are always a crucial success factor for any kind of technology, but for LTE TDD they are even more important. This is largely due to the fact that most of the operators that have announced aggressive LTE TDD plans are based in emerging markets (China, India, and Russia).This means that low-cost devices will have to be made available quickly to serve these markets. In that sense, the creation of the Global TD-LTE Initiative at Mobile World Congress 2011 is a step in the right direction.

Launch of the GTI accelerates ecosystem development

In February 2011, China Mobile, Bharti Airtel, Softbank Mobile, Vodafone, Clearwire, E-Plus, and Aero2 officially launched the Global TD-LTE Initiative (GTI). The organization will focus on promoting the fast development of LTE TDD technology, promoting the convergence of LTE TDD and FDD modes to maximize economies of scale, and sharing the ecosystem with other TDD technologies, such as the Japanese eXtended Global Platform (XGP) technology.

In the mobile telecoms industry, scale is vital – something that WiMAX can testify to. A certain scale for LTE TDD was guaranteed by strong support from China Mobile, the largest operator in the world. However, as TD-SCDMA proved to its cost, this is not necessarily enough to make LTE TDD technology a global success. China Mobile consequently considered it strategically vital to garner support from other key players (as stated in our report TD-LTE, China Mobile’s long-term engagement with ‘TD’, OVUM051850). Attracting vendors’ interest was the easy part given China Mobile’s size, but making sure that other operators would consider the LTE TDD option required more imagination. This LTE TDD evangelism started years ago, often behind the scenes, and finally came to fruition with the creation of the GTI. As a consequence, the main merit of the GTI announcement really lies in the official support for LTE TDD (and better harmonization with LTE FDD) from a number of international players. With heavyweights such as China Mobile, Bharti Airtel, Softbank Mobile, and Vodafone Group – serving more than 1.1 billion subscribers in total at the end of 2010 – the GTI is certainly heading in the right direction. However, to further contribute to the virtuous cycle that the GTI aims to fuel, the organization remains fully open to all operators and technology vendors interested in promoting LTE TDD.

China Mobile will not be the first to launch commercial LTE TDD services

The GTI launch event in Barcelona confirmed what we expected (see the report Global opportunities for LTE TDD, OT00063-016): with a launch expected in 2012, China Mobile will not be the first operator in the world with commercial LTE TDD services. However, it is true that the operator’s large-scale trial networks to be deployed in seven cities in 2011 will be much bigger than the majority of LTE (TDD and FDD) commercial networks available at that time.

Among the LTE TDD frontrunners, the GTI event confirmed Aero2 from Poland as a candidate to become the first with commercial services, in as early as May 2011. The operator will use equipment from Huawei to construct a converged LTE FDD/TDD network. Softbank Mobile also unveiled plans to commercially launch LTE TDD services in Japan before the end of 2011. Like Aero2, the Japanese operator will use the 2.5GHz spectrum band. Softbank Mobile recognizes that the timeline set for its LTE TDD project is aggressive, but claimed that it has full confidence in vendors to overcome the various challenges. In Softbank’s opinion, LTE TDD is better suited to handle mobile data services. This is because the technology’s asymmetric nature fits well with mobile broadband data usage patterns and because of the greater technical efficiency of LTE TDD versus LTE FDD in terms of smart antenna systems. Finally, the official support of LTE TDD by Bharti Airtel means that there are now three 2.3GHz broadband wireless access spectrum owners committed to rolling out the technology in India. Speaking at the event, the CEO of Bharti Airtel, Sanjay Kapoor, stated that support from operators in India and China will ensure scale for LTE TDD and definitely signals the end of WiMAX’s hopes.

Ovum encourages operators in developed countries to be pragmatic

So far, operators have continued to favor the FDD variant of LTE, especially in developed markets. However, we recommend that these operators, which sometimes own unused TDD spectrum, closely monitor the development of the LTE TDD market. The reason is simple: given the rise of data traffic, all spectrum is valuable. They should continue to adopt a very pragmatic approach to LTE TDD. This consists of ensuring LTE FDD/TDD integration into network equipment now and into devices once the LTE TDD device ecosystem is sufficiently mature. If LTE TDD becomes widely adopted, by 2014-15 LTE FDD operators may well be tempted to leverage LTE TDD cost benefits to add extra capacity to their networks.

The E-Plus Group, China Mobile and ZTE sign a MOU for TD-LTE field trial in Germany [Feb 14, 2011]

The E-Plus Group, China Mobile Communications Corp. and ZTE will work together to launch a TD-LTE field trial in Germany in Q1 2011. The trial is based on 2.6 GHz spectrum that E-Plus acquired in the German spectrum auction. China Mobile, with its leading position and rich experience in the operation and maintenance of TDD networks, will empower this trial. ZTE will provide base stations developed on the advanced SDR platform and co-siting solution of LTE FDD/TD-LTE, which is a breakthrough in the industry.

The E-Plus Group is the third largest mobile network operator in Germany. The E-Plus Group has been one of the most innovative mobile operators during years. After revolutionizing the mobile voice market for larger user groups E-Plus is now opening the mobile data market for the masses with low-priced data tariff schemes and the roll-out of a HSPA+ network with speeds up to 21.6 Mbps. On top of the high speed mobile data network roll out, E-Plus will now test TD-LTE in the field. The E-Plus Group is one of the founding members of the Next Generation Mobile Networks (NGMN) Alliance.

The E-Plus Group and ZTE agreed and scheduled a field trial program for 2011 consisting of several streams to investigate the capabilities of ZTE’s commercial SDR equipment and best utilisation of the spectrum holdings of E-Plus in 1.8 GHz, 2.1 GHz and 2.6 GHz, both TD-LTE and LTE FDD.

China Mobile claims the largest number of mobile subscribers in the world. From TD-SCDMA to TD-LTE, China Mobile is devoted to promoting TDD industry being equipped with rich experience in TDD network deployment. Furthermore, China Mobile is pro-active in TDD technology globalization and convergence of TD-LTE and LTE FDD industry by seeking cooperation with overseas operators in Europe, Asia, America and Australia.

With joint effort of the E-Plus Group, China Mobile and ZTE, this trial will not only demonstrate the latest progress of TD-LTE/LTE FDD convergence in standards and industry development, but also lay an excellent ground for the full commercialization of TD-LTE.

About the E-Plus Group
The E-Plus Group is the challenger on the German mobile communications market. Simple services tailored to customer needs and a major reduction in call and data charges can be traced back to the initiative of the third-largest mobile network operator in Germany. After revolutionizing the voice market for larger user groups now the company opens the mobile data market for the masses by its massive network roll-out and highly attractive low-priced data tariff schemes. As a result of innovative business models, modern structures and strong partnerships the E-Plus Group was able to significantly strengthen its market position and show a more dynamic and profitable development than the market. Since 2005 E-Plus Mobilfunk GmbH und Co. KG has developed into a family of brands offering target group-specific services and thus breaks new ground in mobile communications in Germany. More than 20 million customers are using the network of the E-Plus Group to make calls and send text messages or data. The Group generates an annual revenue of €3.2 billion (2010) and employs more than 2,500 people (FTE) in Germany.

326 Million Dual-Mode 4G Devices to be Activated by 2016 [May 31, 2011]

326 Million Dual-Mode (3G + LTE) Devices will be Activated by 2016 according to Maravedis’ latest research titled “Global 4G Device Forecast 2011-2016”.

“All LTE devices activated during 2010, including USB data cards, modems and notebooks, were single-mode,” said Cintia Garza, author of the report. “However, LTE+3G smartphones have emerged during 2011 as more LTE operators begin to add LTE to their device offering, in particular smart phones whose adoption will be key to LTE uptake.”

In the United States, Sprint’s early success with WiMAX smart phones suggests a very promising uptake for LTE smart phones. Many other carriers around the world are also looking at introducing smart phones in their LTE device portfolio by the end of 2011, such as NTT DoCoMo (Japan), and Yota (Russia).

“By 2013, more than 50% of LTE devices activated worldwide will support both FDD and TDD duplex modes, once TD-LTE deployments consolidate in China, India, Malaysia, Korea and other APAC countries,” continued Garza. “On the other hand, 75% of the LTE devices will support legacy systems (2G/3G) and 9% will support WiMAX technology; these devices will mainly include smart phones, tablets and USB dongles”.
Tablets are also one of the most promising devices in the 4G device market. Maravedis’ report predicts tablet shipments will grow from 46 million in 2011 to nearly 150 million by 2016. Apple iOS is expected to remain the most popular tablet for the coming years, reaching 46% market share by 2016.

Additional Research Findings: 

  1. 260 million dual-mode (TD LTE + FDD LTE) devices will be activated by 2016
  2. Android will account for 48.5% of the smart phone market, Windows 21% and iPhone (iOS) 16.5% by 2016.
  3. APAC and Europe will account for the largest number of smart phones and tablets activated by 2016.
  4. By 2016, 95% of the tablet installed base will be 3G/4G enabled.

Source:Maravedis

LTE Subscriptions to Experience Growth of over 3,400% Between 2011 and 2015 [June 9, 2011]

Between mobile applications, data, voice, and streaming and broadcast video, global wireless bandwidth usage has increased ten-fold since 2008, and there are no signs of it stopping. This obsession to connect anywhere, any time, on any device, viewing any type of digital content is about to have a very real and sudden impact on the wireless world. In-Stat (www.in-stat.com) forecasts that LTE subscriptions will experience a 3,400% explosion of growth between 2011 and 2015.

“Although there are regional variations in the adoption of cellular services, due in part to current available technology, LTE will clearly be the 4G service of choice moving forward,” says Chris Kissel, Analyst.  “3G will remain the predominant service subscription, also with robust growth, but over the next 5 years things will trend toward LTE as 4G service availability is ramped up.”

Recent research by In-Stat found the following:

  • North American FDD-LTE subscriptions are set to increase roughly 2100% from 2011 to 2015. In 2015, the ratio of North American FDD-LTE subscribers to TDD-LTE subscribers will be almost 14 to 1.
  • 3G subscriptions remain dominant with WCDMA technology capturing 26% of 3G subscriptions.  CDMA Rev B will be the smallest segment of the 3G technologies based on subscriptions.
  • 2G service subscriptions will peak in 2012, then they will begin a slow decline during the remainder of the forecast period.
  • More than half of all new deployments are LTE.

Mobile broadband subscribers overtake fixed broadband [June 7, 2011] (“in the text” emphasis is mine)

Market research firm Infonetics Research today released excerpts from its latest Fixed and Mobile Subscribers market forecast report

ANALYST NOTE

“As we predicted, mobile broadband subscribers surpassed wireline broadband subscribers in 2010 (558 million vs. 500 million). Fixed-line services are not dead, though, especially with China giving a boost to the worldwide wireline broadband base with its massive fiber-based program led by the Chinese government, which has set a 20Mbps benchmark for all broadband subscribers, where most today receive 2Mbps to 3Mbps at best,” notes Stéphane Téral, Infonetics Research’s principal analyst for mobile infrastructure.

FIXED AND MOBILE SUBSCRIBERS MARKET HIGHLIGHTS

  • Infonetics forecasts the number of mobile phone subscribers to grow to 6.4 billion in 2015 (the current global population is 6.9 billion)
  • In 2010, Asia Pacific accounted for nearly half of all mobile subscribers
  • The number of cellular mobile broadband subscribers jumped almost 60% in 2010 to 558 million worldwide and should top 2 billion by 2015
  • Access lines (residential, business, and wholesale PSTN, POTS, and ISDN connections) are forecast to continue declining, falling to 759 million worldwide by 2015
  • As access lines disappear, new forms of wireline broadband continue to thrive; the number of wireline broadband subscribers (DSL, cable, PON, Ethernet FTTH, FTTB+LAN) hit 500 million worldwide in 2010
  • WiMAX, in high demand in many regions with inadequate wired infrastructure, remains modest in scale but not growth: despite the global recession, the number of WiMAX subscribers grew 75% in 2010, with more strong growth ahead, reaching 126 million in 2015
  • The number of VoIP subscribers (including VoIP over access lines and over other broadband lines, such as cable) is forecast to grow from 157 million in 2010 to 264 million in 2015
  • While growth in the number of video subscribers is being challenged by over-the-top (OTT) and free-to-air services, telco IPTV subscribers are forecast to triple between 2010 and 2015, and digital and satellite cable subscribers will see healthy annual growth as analog cable video subscribers continue their inevitable decline

REPORT SYNOPSIS

Infonetics’ report provides worldwide and regional market size and forecasts through 2015 for access lines and fixed and mobile subscribers, including cable broadband, DSL, PON and Ethernet FTTH, residential and SOHO VoIP, telco IPTV, cable video, satellite video, mobile (GSM, W-CDMA, TD-SCDMA, cdmaOne, CDMA2000), cellular mobile broadband (W-CDMA/HSPA, CDMA2000/EV-DO, LTE, WiMAX, phone-based, PC-based), WiMAX (802.16m, 802.16e, 802.16d), and IMS subscribers. See report prospectus for details.

The report includes customizable pivot charts and analysis comparing subscriber types, regional service provider subscriber highlights, fundamental drivers of the market, technology developments, excerpts from Infonetics’ service provider capex reports, and analysis of overall market conditions for service providers, enterprises, subscribers, and the global economy.

Apple to go to an Intel foundry?

Apple chip roadmap hints A5 iPhone 5, A6 iPad 3 [June 3, 2011]:

Gwennap anticipates Apple may have to think different in future. That’s because Apple should match industry trends in order to create a quad-core A6 processor next year.

Processor manufacturing is currently conducted by Samsung. But, with Apple and Samsung’s mobile division involved in an increasingly bitter courtroom dispute, it seems unlikely this relationship will continue forever. This must be why Apple is working with Taiwan Semiconductor Manufacturing to bring that firm online as processor maker.

There’s another option too, and highly-placed executives at that firm seem willing to dance with Apple. Apple “helps shape” Intel’s road map, according to Intel SVP Tom Kilroy. And Intel CEO, Paul Otellini has observed that money from mobile processor design is “mostly going to the foundry guys”.

The notion that Intel may begin manufacturing ARM-based processors seems highly counter-intuitive…but the foundry market is set to be worth in excess of $50 billion by 2015, says Microprocessor Review.

High expectations on Marvell’s opportunities with China Mobile

Follow-up: First real chances for Marvell on the tablet and smartphone fronts [Aug 21 – Sept 25, 2011]

After the technical and business excellence well reflected in my previous posts Marvell seems to be on the high rise.
See my previous posts as well:
ASUS, China Mobile and Marvell join hands in the OPhone ecosystem effort for “Blue Ocean” dominance [March 8, 2011]
Kinoma is now the marvellous software owned by Marvell [Feb 15, 2011]
Marvell to capitalize on BRIC market with the Moby tablet [Feb 3, 2011]
Marvell ARMADA beats Qualcomm Snapdragon, NVIDIA Tegra and Samsung/Apple Hummingbird in the SoC market [again] [Sept 23, 2010 – Jan 17, 2011]

Update: Marvell Leads TD-SCDMA Market with Industry’s First Commercially Available Single-Chip Solution Shipping in China [June 1, 2011] (emphasis is mine)

Company showcases at Computex 2011 a suite of new smartphones, tablets and mobile hotspot devices developed for the China market powered by Marvell’s PXA920 series of high performance single-chip TD-SCDMA solutions.

… said Weili Dai, Marvell’s Co-Founder. “Marvell has raised the technology bar for the entire industry.  We believe Marvell has delivered a quantum leap to the development and adoption of the TD-SCDMA standard.  Because of this breakthrough, more than a dozen world-leading mobile OEMs are launching Marvell® PXA920 based products in China. We’re very proud to enable the next billion users of connected devices in China.”

Marvell’s industry-leading TD-SCDMA solution is designed to deliver world-class performance – 3D graphics, mobile gaming, mobile TV, and high definition video with a unified user experience across different product platforms enabled by Marvell’s beautiful and easy-to-use Kinoma® software. Additionally, the PXA920 series of products are the industry’s first TD-SCDMA solution that combines a high performance application processor and modem and enables realization of the long-standing quest for mass market smartphones priced at 1,000 RMB.  This same platform is designed to support worldwide 3G and 2G standards, allowing OEMs to rapidly deploy WCDMA smartphones, tablets, and mobile hotspot devices in China and beyond.

Marvell provides a complete solution including system-on-chip (SoC) communication processors, modems, RF, PMIC, and integrated Wi-Fi/BT/FM connectivity including 1×1 and 2×2 mobile MIMO with beamforming capabilities.  Marvell’s TD-SCDMA silicon and software solutions were developed at its Shanghai design center, home to approximately 1,000 engineers dedicated to the China market.

Update: The PXA920 opportunity was realized only in September 2011, two years later than the September 2009 launch. See:First real chances for Marvell on the tablet and smartphone fronts [Aug 21, 2011]

Marvell Up 11%: Street Says ‘Inflection Point’ [May 27, 2011] (emphasis is mine)

Shares of Marvell Technology Group (MRVL) are up $1.53, almost 11%, at $16.09 after the company last night missedfiscal Q1 estimates but forecast the current quarter ahead of consensus, based on an expectation for a pick-up in its wireless chip business.

Most analysts this morning are saying business has hit bottom and is on the way back up. Estimates are up all around, though there are no ratings revisions, as far as I can see, and price targets are mostly staying where they were.

The China Mobile (CHL) “OPhone” project for TD-SCDMA handsets could bring the company $40 million in the latter half of this year.

… in Ophone it believes it has ~80% of a 10-12M C12 TD unit oppty …

… the Q2 forecast is “a fundamental inflection point,” even though the ramp-up of wireless chips for China Mobile’s OPhone will be relatively immaterial. “We believe the company is ramping several OEMs this quarter, with one being ASUS. Previously, management indicated that it had garnered design wins for 90% of current OPhone models across eight of the top nine OEMs. The company now expects to ship to over 12 customers this year with a design win rate of ~80%.” …

With that market capitalization of Marvell went from $9.2B to $10.2B in a single day.

Marvell Technology Group’s CEO Discusses Q1 2012 Results – Earnings Call Transcript [May 26, 2011] (emphasis is mine)

Given the recent market concern surrounding our Mobile and Wireless business, I would like to take a moment to address this up front. First, I would like to stress that the mobile end market is a key area for Marvell, and we continue to invest new product development and to strengthen our infrastructure to support new customers.

As an example, we are currently supporting over 20 handset designs at new customers. In addition to our current 3G and TD offerings, our investment in advanced technologies, such as LTE, are starting to pay benefits. We are already sampling our LTE solutions at some of our key customers and believe we are well positioned to benefit when the market ramps. Although quarter-to-quarter fluctuations are hard to avoid, we believe our business at our leading customers will be sustained, and we will continue to be a significant player in this space.

Second, I want to share with you the current status of the ramp in TD products. We are winning about 80% of the TD smartphone designs on the Android and OMS platforms. Our single-chip solutions address the entire spectrum of low- to high-end TD phones, and we are firmly entrenched in the high-volume sweet spot. We believe our solutions are compelling for this market and should translate into solid growth for our TD business this year.

We remain confident that our early investment in support of the TD has been extended in China will be very beneficial to us as the majority of China’s mobile 600 million subscribers continue migrating to the smartphone market on the TD standard.

In addition, we are working with our key carrier partners and handset customers on prototypes for our next-generation TD LTE, which we’ll be sampling later this year. These new products are best in class and fully backward-compatible. We believe these investments will further distance us from our competitors in TD.

During the last quarter, we achieved a significant milestone as the first company to ship TD single-chip solutions in production volumes. We expect these revenues to more than double in the second quarter. This should provide clear evidence that our strategy in TD is successful.

Question-and-Answer Session [of the above]

Let me add a little bit more color about why is TD so important to China. There’s a lot of people — a lot of people in outside China are skeptical about the opportunities of TD in China. The way I look at it, I can explain it from a technical point of view. But then, I can speak until I’m tired, and nobody will care anyway. So I’m trying to, this time, answer you from a different angle, from a non-technical point of view.

As you know, Chinese have been run — the society has been run for 4,000 or 5,000 years of history. And over those history, they invented many new technologies hundreds of years before anybody else invented those technologies. Yes, okay, recently, okay, in the modern eras, in the cell phone, they were behind. But they were behind only for a few years. The TD-SCDMA industry standard was developed a few years later than the WCDMA 3G standards. So it’s natural for the WCDMAs to be ramping up in the rest of the world first.

However, China, with understanding the Chinese, already waited 5,000 years in history. Waiting for a few more years for ramping up all the majority of their cell phones to use Chinese phone standard. Okay, it’s of the highest priority for the Chinese people. So this, compared to anything else, this is more important than, let’s say, speeding up the deployment of 3G into China by using outside technology. And they’re only few years. And from then on the Chinese people will be labeled do not have any 3G technology. So the way I look at it, okay, that’s not going to happen.

What’s going to happen is that TD is beginning to be deployed in China for the Chinese people. They’re ramping up huge number of subscriber, and as I mentioned earlier, 600 million subscribers. Over time, those subscribers will all move to TD-SCDMA and TD LTE. The base stations already been deployed. More than 220,000 base station last year being deployed throughout the whole China, not just in the big cities. Everywhere, throughout the whole China. That’s more than base stations, the number of base stations in the largest area in, let’s say, in the U.S. in total. And this is just the new base station for China Mobile, and they continue to invest in new base stations this year and next year.

So you can see that the opportunities for us is great. The only thing, as Clyde said, is we need to just wait and see when the rest of the customer will ramp up. As the products get more mature, as the prices goes down, it will be natural for those design wins to continue to go into production. And the beauty is that we have 80% of design wins. So at least we don’t have to worry about, okay, when it actually ramps, it will be somebody else, not only us.

… there’s a 800-pound gorilla that’s out there that’s very strongly the tablet business. So every other — the vast majority of companies there working on the tablet solutions do have a challenge on trying to get the tablet market in the short term.

In the long term. In the long term, I do believe that our strength in being able to integrate the modem and the application processors will be important not just in the cell phone, in the smartphone, but also in the tablet. There are so many — because after all, the tablet — if you think about what’s in the tablet, the tablet really is a smartphone with a bigger screen. So it’s just a matter of time.

You’re asking about in the next 2 or 3 years, I do believe in the next 2 years or so when things, the dust settle down, the tablet and the smartphones really looks just the same like we have design wins like we have significantly done with in the smartphones market, but we’ll have design wins, sizeable design wins, in the tablet. For the market, they are obviously, we’ll use the type of technology, the modem technology that we developed. For this market that we don’t use our own, the modem that we don’t develop, obviously, they’ll go somewhere else.

But as I said, TD-SCDMA, we invest in TD-SCDMA, LTE, TD LTE, as well, and WCDMA. So this is at least 70%, 80% of the market of the world anyway, so that’s enough. There’s a big enough time for us to address. And so if we can address our fair share of market share for those markets, we’ll be just fine.

And so for now, for us is to invest. We have to invest in the software. We have to invest and support of the customers. We have to design new chips with more advanced technology, better and higher integrations, and make the things lower cost and so on. So the standard stuff that we do in any other businesses. So sometimes these things takes time, longer time than we expect. I understand the frustration. I also wish I could get things get done sooner, but sometimes we win some. Sometimes, we lose some, and then things get delayed. We’ll come back and recover, and then we’ll become a stronger company as a result.

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.

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.

ASUS, China Mobile and Marvell join hands in the OPhone ecosystem effort for “Blue Ocean” dominance

Follow-up: First real chances for Marvell on the tablet and smartphone fronts [Aug 21 – Sept 25, 2011]

Information about China Mobile’s related efforts on this blog:
OPhone OS (OMS) 2.0 based on Android 2.1 [July 5 — Dec 13, 2010]
3.9G TD-LTE rollout in 2012 with integrated 2G, 3G and 4G? [July 19 — Dec 14, 2010]
Could China close the gap in mobile Internet? It should! [July 21 — Oct 21, 2010]
IMT-Advanced (4G) for the next-generations of interactive mobile services, China is triumphant [Oct 24 — Nov 24, 2010]
Cloud Computing Strategy for Digital China: Taiwan is leading the way except IOT [Nov 8 — Dec 30, 2010]
Marvell beaten by Chinese chipmakers in sub 1,000 yuan handset procurement tender of China Mobile [Nov 15, 2010]

Follow-up: High expectations on Marvell’s opportunities with China Mobile [May 28, 2011]

Marvell and ASUS Team Up to Enable Mass Market Availability of TD-SCDMA Smartphones [Marvell press release, Feb 23, 2011] (emphasis is mine):

Marvell … today announced that ASUS has chosen Marvell as a strategic partner to launch a new series of TD-SCDMA (Time Division-Synchronous Code Division Multiple Access) smartphones in China. ASUS‘ new T10 and T20 series smartphones are powered by Marvell(R) PXA920 platform, the first commercially available single-chip solution which supports China Mobile’s latest version of OPhone OMS system. … delivers gigahertz speed, dynamic multimedia for mobile TV, live video, gaming and many exciting new applications, all to be unified by Marvell’s beautiful and easy-to-use Kinoma(R) software experience.

In fact there were additional three devices, T25, T60 and T Pad, as well. See the following Forbes blog article (and even more below, or a very detailed event report with plenty of photos in Chinese, or look at an English translation by Google):
Asus Brings Five Android [rather OPhone OMS, see later] Devices To China In Bid For Billions Of New Customers [Feb 23, 2011] (emphasis is mine)

On Thursday afternoon in Beijing, Asus plans to announce a wide-ranging partnership with China Mobile that will make four Asus smartphones and one tablet available to the carrier’s millions of customers.

The deal is the cornerstone of Asus’ newest strategy to boost its mobile devices business. Though Asus is widely known for its computer parts, laptops and netbooks, it remains a bit player in the global cellphone and smartphone markets.

The company hopes a tie-up with China Mobile, which is both China’s largest wireless operator and the world’s biggest carrier by subscribers, will raise its mobile profile. “China will be our biggest mobile market,” said Benson Lin, Asus’ head of mobile devices, in an interview. “China is very important to our future.”

The partnership will be something of a gamble for Asus. China Mobile, like all Chinese carriers, uses a unique technology standard (TD-SCDMA) for its 3G cellular network. That means the phones Asus is providing to China Mobile — known as T10, T20, T25 and T60 — can’t be offered to any other operator.

Lin said the potential is worth the risk. He declined to share specific sales goals, but noted that China Mobile currently has nearly 590 million subscribers. Capturing 10% or even just 5% of that audience is “still a huge number,” he said.

Though all handset makers are interested in China, many are waiting for the country to upgrade its networks to the 4G technology LTE, said Lin. Asus believes it will benefit from forging a relationship with China Mobile now, when other phone vendors “aren’t paying attention,” added Lin. Europe is currently Asus’ largest mobile market, but Asus anticipates China will replace it soon.

The opportunity has pushed Asus to customize its “T” series of phones to Chinese tastes. Instead of automatically connecting to Google for browsing, the devices will link to the popular Chinese search engine Baidu. And instead of Facebook, they will access the Chinese social network RenRen.

All of the T phones run on the 2.0 version of China Mobile’s Ophone operating system, which is a variant of Google’s mobile platform, Android [not a variant since it has a Linux core and another user interface, as the most different aspects, but compatible with Android through source code reuse – see much below]. They also utilize special processors from California-based chipmaker Marvell. The design, which combines a CPU and modem on a single chip, is more affordable, efficient and compact than systems that use two chips, said Lin.

Developing the T phones took a year and a half of intense development at Asus’ Taipei campus, said Lin. Asus already has some phones in the Chinese market, but they are at a smaller carrier, China Unicom, which uses a different 3G standard called WCDMA.

Asustek to sell new line of smartphones through China Mobile [Feb 25, 2011] (emphasis is mine)

Designed specially for the TD-SCDMA network in China, this chip [the PXA 920] will help bring down the cost, size, and power consumption of Chinese mobile devices, Asustek said in a statement by email.

The information technology industry is turning from personal computing to cloud computing, and mobile phones are expected to become the most important cloud computing devices due to a wide range of applications,” Asustek chairman Jonney Shih said in the statement.

This type of industry collaboration [with China Mobile and Marvell] represents a shift in Asustek’s strategy for its smartphone line. Last October, Asustek, which had been selling smartphones under the Garmin-Asus brand since early 2009, said it would not introduce any more co-branded handset models.

Media reports estimate that China Mobile will purchase a total of 12.2 million TD-SCDMA-based handsets this year. This includes 4 million phones designed for entertainment use, 3.2 million multi-media smartphones, 3.2 million entry and mid-level smartphones, 1.5 million high-end connected devices, and 300,000 dual-network phones.

ASUS Four New TD-SCDMA Smartphones in China [Feb 27. 2011]

The ASUS T10, T20, T25 and T60 smartphones are powered by an 806MHz Marvell PXA920 processor and known as the world’s first single chip supporting TD-SCDMA. These new handsets are utilizing a Marvell Avastar 88W8787 chip for enabling Wi-Fi 802.11b/g/n, Bluetooth 3.0, and FM radio.Asus Marvell TD-SCDMA Smartphone -- 24-Feb-2011

ASUS T10 smartphone has a 3.2-inch resistive touchscreen display with resolution of 320 x 480 (HVGA), 5-megapixel autofocus camera, front-facing camera for video calls, 512MB RAM, 512MB ROM, MicroSD card slot, and GPS.

The ASUS T20 similar the T10 handset, but it has 3.2-inch capacitive touchscreen display, TV tuner, CMMB and a more powerful battery. The Asus T25 comes with a 3.5-inch display, while the Asus T60 feature a 4-inch display.

Beside that, ASUS has also showcased the fifth handset that sports a 4-inch screen and support 4G TD-LTE network. All five smartphones are running on OPhone OS 2.0 which modified version of Android 2.1.

Marvell PXA920 Mass Market Smartphone Communication Platforms [Feb 17, 2011] (emphasis is mine)

The Marvell® PXA920 communication platform [also called Pantheon platform elsewhere, see the same Pantheon Platform Brief [Feb 17, 2011] as well] is an advanced, highly integrated 3G platform for multimedia-centric handsets. The PXA920 platform solutions incorporate the performance of Marvell’s mobile application processor with Marvell’s mature and proven 3.5G technology to provide low-cost Linux™ and Android™ handset platforms. The combination of Marvell’s advanced, high-performance, low-power application processor technology with Time Division Synchronous Code Division Multiple Access (TD-SCDMA)/High Speed Downlink and Uplink Packet Access (HSxPA)/Enhanced Data for GSM Environment (EDGE) communication support for next-generation cellular services enable breakthrough end-user experiences for imaging, HD video, music, games, and other popular handset applications.

With Marvell’s 3G technology, seamless wireless connectivity, application processing, and support for next generation cellular data services — the new PXA920-powered smartphones offer exceptional performance for browsing, instant live video, access to personal music, 3D gaming, and other popular handset applications at attractive price points. The PXA920 supports Android and other major mobile operating systems (OS).

Marvell PXA920 Block Diagram -- 17-Feb-2011

Tri-core, Shared Memory Hardware Architecture

  • Dedicated Modem and Applications Processor Cores
    – Modem RISC Core: Marvell-designed ARM9 [their pre-Sheeva core] with packet processing accelerators and L1/L2 caches
    – Modem DSP Core: Micro-Signal Architecture VLIW DSP core with L1/L2 caches
    – Marvell [Applications] CPU Technology with ARMv5 core [Sheeva PJ1 core, which is the less performant synthesizable Sheeva core, see: Marvell ARMADA beats Qualcomm Snapdragon, NVIDIA Tegra and Samsung/Apple Hummingbird in the SoC market [again] [Sept 23, 2010]] supports up to 806 MHz operation (1130 DMIPS)
  • Shared External Memory Interface

Multimedia (video, 3D, audio, imaging, display)

  • Video Playback 720p at 30 fps for H.264, WMV, MPEG-4, H.263; Video Capture D1 at 30 fps for H.264, WMV, MPEG-4, H.263
  • 3D Graphics capability up to 10Mtriangle/s sustained and 20Mtriangle/s at 50% cull rate; Integrated 2D accelerator; Supports industry standard APIs.
  • Marvell’s unique Audio Accelerator Subsystem offers low power audio playback via audio streaming
  • Image Sensor support for primary and secondary smart image sensors with MIPI CSI-2 and parallel interfaces; Supports one MIPI-CSI2 serial interface
  • LCD Controller supports parallel LCD displays over an 8/16/18-bit parallel smart panel interface or a 16/18/24bit parallel active matrix interface with sync signals; Primary/secondary display supports up to 4 simultaneous overlays with base + rotation scaling

All details about Marvell’s System-on-a-Chip (SoC) products and related strategies on this blog:
Marvell ARMADA beats Qualcomm Snapdragon, NVIDIA Tegra and Samsung/Apple Hummingbird in the SoC market [again] [Sept 23, 2010 — Jan 17, 2011]
Marvell ARMADA with sun readable and unbreakable Pixel Qi screen, and target [mass] manufacturing cost of $75 [Nov 4, 2010 — Jan 11, 2011]
Marvell beaten by Chinese chipmakers in sub 1,000 yuan handset procurement tender of China Mobile [Nov 15, 2010]
Marvell to capitalize on BRIC market with the Moby tablet [Feb 3, 2011]
Kinoma is now the marvellous software owned by Marvell [Feb 15, 2011]

Blue Ocean Strategy [Wikipedia] (emphasis is mine, see also: What is Blue Ocean Strategy? Ten Key PointsBlue Ocean Strategy book by W. Chan KIM and Renée Mauborgne

Blue Ocean Strategy is a business strategy book first published in 2005 and written by W. Chan Kim and Renée Mauborgne of The Blue Ocean Strategy Institute at INSEAD. The book illustrates what the authors believe is the high growth and profits an organization can generate by creating new demand in an uncontested market space, or a “Blue Ocean”, than by competing head-to-head with other suppliers for known customers in an existing industry.

Unlike the “Red Ocean Strategy”, the conventional approach to business of beating competition derived from the military organization, the “Blue Ocean Strategy” tries to align innovation with utility, price and cost positions. The book mocks at the phenomena of conventional choice between product/service differentiation and lower cost, but rather suggests that both differentiation and lower costs are achievable simultaneously.

The authors criticize Michael Porter‘s idea that successful businesses are either low-cost providers or niche-players. Instead, they propose finding value that crosses conventional market segmentation and offering value and lower cost. Educator Charles W. L. Hill proposed this idea in 1988 and claimed that Porter’s model was flawed because differentiation can be a means for firms to achieve low cost. He proposed that a combination of differentiation and low cost might be necessary for firms to achieve a sustainable competitive advantage.

China Mobile 2010 Interim Results [Aug 19, 2010]

China Seeks Blue Ocean Dominance in Mobile Internet [Borqs company news, Jan 8, 2011]

China Mobile is striving for blue ocean dominance in China’s mobile Internet, during which, the launching of OPhone has become an important milestone. At a recent conference, Xi Guohua, Vice Minister of Industry and Information Technology of China, recognized the development and achievements of OPhone over the past two years since its birth, and expressed his wish for introducing OPhone to the global market.

the mobile Internet is the largest breakthrough innovation in the communication industry in the 21st century. Those who have dominated any blue ocean of the industry will obtain the greatest benefits and lasting advantages. The strategy and development of the mobile Internet is essential to China if the country wants to win an appropriate industry position and take the power to reshuffle the communication industry.

With the help of iPhone, China Unicom has achieved great market performance in a very short time. However, the success of iPhone attributes more to the worship of Steve Jobs by millions of Apple fans than to the product innovation of Apple. … China Unicom has no say on iPhone and has not entered into any cooperation in technology during the cooperation with Apple. Therefore, in my view, a great risk may sneak in the success of iPhone since China Unicom rests its market on a single product from its partner. This is almost against the “Blue Ocean Strategy” of the mobile Internet industry.

Quite differently, China Mobile has avoided this dependency relation wisely. Based on Android, an international advanced operating system, it develops a technical platform within its control, further cooperates with upstream and downstream vendors, and creates a global system featuring complete industrial chain with its advantage of leading position in user base. That is the origin and development strategy of OPhone.

Talking about OPhone, Mr. Li Yue, new President & CEO of China Mobile, defines the company’s short-term strategy as “Giving priority and building quality in par with competitors”. This strategy reveals the correct attitude and understanding of China Mobile in terms of the development of OPhone: The exclusive support policy used in China before shall be thoroughly abandoned to help OPhone become a powerful weapon for controlling mobile Internet. With priority given, OPhone must be built with the same and even higher quality than its competitors. OPhone, from its version 1.0 to 2.0, is reported to undergo an extensive rage of development and test in the aspects of web data processing, multimedia performance, graphic/entertainment performance, and full-range service processing. For China Mobile, whether mobile Internet is the “last ocean” in the communication industry remains unclear. But I believe that we will never act before it’s too late.

Guided by the idea of “Giving priority and building quality in par with competitors”, OPhone is breaking the monopoly of iPhone in mobile Internet. Thus, our understanding of mobile Internet is experiencing slight changes. … mobile Internet  users have no real “loyalty”: they have switched to iPhone from Blackberry today, and in future they may again switch from iPhone to OPhone. Sticking to the strategy proposed by President Li , OPhone will substitute for iPhone, and easier to use. Openness is the key to realize these two advantages. The first character “O” of “OPhone” does stand for “open”.

Other strategy related communication of relevance from the new CEO Li Yue:
China Mobile chief not optimistic on industry’s growth [Nov 18, 2010] (emphasis is mine)

“There are some who think the increase in data usage will lead to growth, but I am not so optimistic,” Li said at the GSMA Mobile Asia Congress conference in Hong Kong yesterday.

The head of the world’s biggest phone carrier by market value said operators need to offer services that integrate well with the daily lives of consumers and businesses.

Li is adding services such as a search-engine for mobile phones and wireless payments to sustain growth at China Mobile, where he took over as chief executive this year.

New China Mobile CEO builds bridges [Nov 17] (emphasis is mine)

There is a big opportunity for mobile operators to act as the bridge between different partners within the telecoms space and between the telco industry and others, and future revenue is to be found in penetrating the daily lives of mobile users, according to the new man at the helm of the world’s largest mobile operator, China Mobile.

“The mobile market will become the future channel for all walks of life,” said Li Yue, president and CEO of China Mobile, in his first international keynote speech since taking over at the telco in August.

He also highlighted some of China Mobile’s new services, including the mobile reading offering launched by the telco in May. The service has attracted more than 30 million users, and now has 6 million paying customers, Li explained.

In a bid to drive mobile data services forward, China Mobile has created a platform to engage with content creators and partners, including a pool of terminals and operating systems to aid applications developers. The company believes it can create a “win-win situation” in the mobile marketplace, where all members of the value chain benefit.

China Mobile aims to be “a bridge with all suppliers… and also a hub,” said Li, adding that the telco is working on signing up more partners.

“[The mobile Internet] is changing our traditional ecology as a mobile operator,” said Li, since it has changed the way end users collaborate. And changing customer behaviour provides “a lot of opportunities” for mobile providers, he said.

Those opportunities also include vertical markets.

“[We will] try whatever possible to penetrate into all kinds of industries,” said Li. “We are the connecting bridge with all kinds of industries.”

Related development: Government Drives New Chinese Search Engine [Feb 24, 2011]

Transcript by http://www.newsy.com

BY KELSEY WAANANEN

You’re watching multisource tech video news analysis from Newsy.
If you want something done right, you have to do it yourself. That seems to be China’s approach to the Internet. State-owned news agency Xinhua and state-owned China Mobile – China’s largest phone carrier – are teaming up to run Panguso – China’s newest – and government-approved search engine.

This joint venture was announced last summer – right after Google decided to pull out of China because the search giant refused to continue censoring material. A CBS report details the repercussions of Google’s departure.

“Now when users in mainland China go on to use this site, like this, they’re automatically redirected to a different site based in Hong Kong, where Google isn’t legally required to censor itself. … China’s own filter, known as the ‘Great Firewall of China’ is still at work screening out sensitive material. In fact there are concerns that China could now clamp down even harder…”

And it certainly looks like they have. In terms of just what Panguso is leaving out, PC Magazine notes…

“According to Panguso, Nobel Peace Prize Laureate Liu Xiaobo doesn’t exist. The same is true for the People’s University in Beijing, the first university founded after the 1949 communist revolution. “Dalai Lama” returns only tourism sites or state-sponsored criticism.”

But Panguso isn’t the only search engine on the market. Baidu, the current prominent search engine, accounts for more than 75 percent of web searches. But as TMCnet notes, Panguso offers a platform that Baidu doesn’t.

“…Baidu only controls about 36 percent of the mobile search market. By partnering with China Mobile, Xinhua may soon have a leg up on its competition in the mobile space.”

But a blogger for Download Squad suggests the Chinese government might have an ulterior motive — trying to get a slice of the search engine market.

“China already has a very strict policy on censoring politically-sensitive material, which Baidu strictly abides by — so unless it wants to further extend its control of information inside its borders, why would the Chinese government be interested in offering an alternative?”

According to Xinhua, the search engine will primarily focus on news for now. Xinhua will provide the news content — and China Mobile – the mobile subscriber base.

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Transcript by Newsy

ASUS Joins Hands with China Mobile to Launch ASUS TD Smart Phones [Borqs company news, Feb 28, 2011] (emphasis is mine) 

On February 24th, ASUS held the ASUS TD Smart Phone Launch & Strategy Press Conference jointly with China Mobile and Marvell in Beijing. At this conference, the strategic cooperation of ASUS with China Mobile and Marvell has become the industry focus in addition to the launch of new TD smart phones and a TD slate.

Distinguished attendants at the conference include Mr. Wang Jianzhou, Chairman of China Mobile, Ms. Li Huidi, Chairman Assistant, Mr. Wu Wining, General Manager of Terminal Business Department of China Mobile, Mr. Huang Xiaoqing [also known as Bill Huang], President of the Research Institution of China Mobile, Mr. Shi Chongtang, ASUS President, Mr.  Pat Chan, President & CEO of Borqs (accompanied by some other vice presidents of the company), and Ms. Dai Weili, President of Marvell.

Mr. Wang Jianzhou, Chairman of China Mobile, comments that China Mobile is very pleased to work with ASUS for the TD industry; since the emergence of this industry, terminal vendors have helped drive China’s TD industry. All terminals launched by ASUS at this time use OPhone OS and Marvell’s chips with significantly reduced costs, meeting the demand of China Mobile for low-price smart terminals. Also, Chairman Wang says that China Mobile will promote TD terminals this year, and purchase middle- and high-end TD terminals following its purchase of middle- and low-end TD terminals in 2010, bringing more choices to consumers.

At this conference, ASUS launches five new TD-SCDMA smart phones, including T10, T20, T25, T60 and TD-LTE, and one TD slate [TD Pad]. Based on the latest OPhone OS, these products adopt Marvell PXA 920 – the first TD-SCDMA single chip solution in the industry as core processor. TD smart phones with a single chip-based processor feature a slim body, high efficiency, and low price. By applying single chip solution into TD smart terminals, ASUS has maintained a benign partnership with Borqs and Marvell. This helps them meet the market demands for both quality but price. Furthermore, ASUS has become the first TD smart phone manufacturer applying single chip solutions in the world.

ASUS TD Pad -- 24-Feb-2011

China Mobile has maintained a good share in China’s communication market and a great potential in OPhone OS system. This may be the main reason that ASUS has chosen to partner with it. As an open operating system developed by China Mobile, OPhone OS allows users to create personalized interfaces and install applications upon their demands, delivering users the operating experience of “My phone, my decisions”. By empowering mobile terminal products to deliver innovative, easy-to-use applications and enhanced experience, OPhone OS is a better choice for Chinese users.

The joining of ASUS has further expanded China’s TD camp, signifying a brand new beginning in the TD-SCDMA industry between the Mainland and Taiwan. This will promote and expand the development of the TD industry and OPhone-based terminals, also showcasing ASUS’s robust competitiveness in the Mainland market.

Borqs OPhone OS Roadmap [Feb 2011]

OPhone OS roadmap by Borqs -- Feb-2011

Greatest Shanzhai may prove to be an OS, not a handset [March 2, 2011] (emphasis is mine)

OMS is based on the Linux Kernel, and uses Android source code and integrated Java application framework to provide a complete software platform for application developers and users. … OMS is the first Android customization project where the developer (China Mobile and partners like Borqs) customized the entire user interface and applications of Android for a non-English language (in this case, Chinese).

… In a short span of time, China Mobile has been able to rope in the world’s leading mobile manufacturers to launch smartphones in China based on OPhone mobile OS. Motorola, LG, Philips, Dopod, Lenovo, ZTE, Samsung, and Sony are just a few of the distinguished makers of China Mobile’s OPhone range.

The extensive range of phones running the OPhone OS, based on the OMS platform, supercharged the 3G business and value added services of China Mobile. The OPhone OS, although it’s a variant of Android, doesn’t support Android Market; however, it has been tailored to include a built-in mobile app market called Mobile Market (MM), and other exclusive applications like Flying Letters, 139 Email, wireless music players and many more value-added services.

China Mobile is happy with the progress of the OPhone OS and unlike the rumors of it being shelved [see: China Mobile’s Ophone is Dead [Dec 16, 2010]], they have plans to provide new upgrades in 2011. Lu Zhihu, a deputy director at the China Mobile Research Institute, confirmed new updates at the 2010 International Mobile Internet Conference in Beijing. Version 2.5 will be out somewhere in February or March 2011 and version 3.0 later in 2011, with advanced features like voice recognition and better connectivity to mobile services.

China Mobile’s partner, Borqs, has already rolled out an international version of OPhone, which has been used by Dell and will run on AT&T. China Mobile has also established an industry alliance, the OPhone Innovation Alliance, to encourage developers and manufacturers to the OMS platform and OPhone OS. Rumor has it that China Mobile now want to show more convergence with Papa Android and they are planning to bring support for Android Market and many Android features into future releases to attract more users.

Important and quite illustrative information about the significant user interface improvements in 2.0 version:
Mobile OPhone2.0 design documents Exposure: compatible Android2.1_China Mobile China Mobile G3 / TD-SCDMA [June 4, 2010]
All other details about Ophone (OMS) on this blog:
OPhone OS (OMS) 2.0 based on Android 2.1 [July 5 — Dec 13, 2010]

Asustek announces 4 TD-SCDMA smartphones [Digitimes, Feb 24, 2011] (emphasis is mine)

… and the Taiwan-based company noted that it will participate in telecom carrier China Mobile’s open bid for TD-SCDMA handsets in February with result announcement scheduled for April.

The smartphone launch marks Asustek’s first foray into the TD-SCDMA segment. The devices include the T10, T20, T25 and T60. At the press event, the company also showcased a TD-LTE smartphone, and indicated it plans to incorporate TD-SCDMA modules in its tablet PC for China Mobile networks.

Asustek’s TD-SCDMA line is based on the Marvell 920 chip. The T10 is Ophone OS 2.0 enabled.

AsusTek Announces New Handsets, Partnership with China Mobile [Feb 25, 2011] (emphasis is mine)

Taiwan’s AsusTek Computer Inc announced a strategic partnership with China Mobile in Beijing on Feb. 24 while unveiling several customized products for the Chinese telecom operator.

At a press conference, AsusTek launched five smartphones and one tablet computer, using the Chinese time division-synchronous code division multiple access (TD-SCDMA) standard for mobile communication, with China Mobile chairman Wang Jianzhou attending the event.

This is the first time that Wang has taken part in such a product launch, which market observers viewed as a move by China Mobile to show the importance of its cooperation with AsusTek.

Wang’s presence was also seen as a positive sign for the Taiwan company, which made a bid with three of its models — the T20, T25 and T60 — in response to China Mobile’s announcement on Feb. 23 that it wanted to place orders for 12.2 million smartphones.

While China Mobile is not expected to announce its decision on suppliers until April, Wang said that the company plans to purchase more high-end smartphones to offer better options to its customers using third-generation (3G) mobile services.

Meanwhile, Benson Lin, general manager of AsusTek’s hand-held devices business, said that the company’s T-10 smartphone will make its debut on the market in March.

China Mobile to procure over 10 million TD-SCDMA handsets [March 2, 2011] (emphasis is mine)

China Mobile will announce suppliers in the second quarter, with large shipments slated for the second half of 2011, the sources indicated.

China Mobile had previously placed more emphasis on low-end smartphones since international handset vendors lacked higher end devices supporting the TD-SCDMA platform. Smartphones represent less than 20% of China Mobile’s revenues versus 40% for China Unicom and more than 20% for China Telecom, according to the sources.

Since China Mobile plans to procure higher-end TD-SCDMA handsets this time, both international and China-based vendors will see orders, unlike last round of procurement when China-based companies dominated the mainstream segment.

Both Taiwan’s HTC and Asustek Computer have already formed strategic alliances with China Mobile, the makers said, adding that the two companies should receive orders as long as their pricing and specifications match the procurement criteria.

Marvell Technology Group’s CEO [dr. Sehat Sutardja] Discusses Q4 2011 Results – Earnings Call Transcript [Seeking Alpha, March 3, 2011] (emphasis is mine):

Last year, we introduced the PXA920 [see: Marvell Drives $99 Smartphones to Market With New Pantheon Platform [Feb 12, 2010] and Marvell Empowers Mass Market TD-SCDMA OPhones with PXA920 Chipset [Sept 8, 2009]]. 920 is a single-chip solution enabling mass-market availability of high-end TD smartphone markets specifically to the China market. These solutions that we provide includes a modem, application processor, management and RF devices. We are the first and only suppliers in the world with the complete high-performance TD smartphone solution for this market.

At the Mobile Congress last month, we announced the follow-on of the 920 device. The 978 [PXA978] device is a single-chip solution of TD-SCDMA but now is combined with rigorous performance and advanced 3D graphics and 1080p multimedia, as well as the traditional 3G UMTS release [indiscernible] solution to address the requirements of the rest of the world. With these new solutions, cellphone OEMs will now no longer need to design separate development platforms to accommodate different wireless standards for the rest of the world and China. And they will be able to target markets around the world saving at the same time in development cost.

Now hopefully, you can see how our TD platform strategy unfolding. The 920 introduced last year initially targeted TD high-end and as well as medium-end smartphones. However, over time, as we reduce cost of the silicon, the wafers that used to build the 920, this platform will quickly transition to low-end and high-volume smartphones replacing the feature phones, which is the sweet spot market for many of the smartphones in this market. While the 978 will emerge as the new high-end TD-SCDMA phone, as well as high-end global phone.

… At Mobile World Congress, we, Marvell, introduced Kinoma, a software platform that is dedicated to dramatically transform the consumer interactions with electronic devices. Kinoma is a new foundation for creating and delivering fast, simple user experience for a wide range of devices and offers an experience and solution that is truly integrated of silicon to applications, creating new opportunities for OEMs and manufacturers.

…. Last year, when they [China Mobile] introduced the first-generation OPhones, the first-generation OPhones were selling for $300, $400, even $500, U.S. dollars. … In contrast, today, the 920 devices … are high-end smartphones targeted for prices the range of $100 to $150 smartphones. So now, we just need to figure out. The time will tell what will be the difference in the volumes of the TD smartphones when it’s priced between $100 to $150 versus when it was priced at $300 to $500.

Update: The PXA920 opportunity was realized only in September 2011, two years later than the September 2009 launch. See:First real chances for Marvell on the tablet and smartphone fronts [Aug 21, 2011]

ARM at MWC 2011 with Marvell – Kinoma [Feb 25, 2011]

All details about Kinoma on this blog:
Kinoma is now the marvellous software owned by Marvell [Feb 15, 2011]

Marvell Announces First ‘World Phone’ Single Chip Solution: 3G TD-SCDMA Baseband Combining High Performance 1.2 GHz Application Processor with Advanced 3D Graphics and 1080p Multimedia [Feb 14, 2011] (emphasis is mine)

Marvell (Nasdaq: MRVL), a worldwide leader in integrated silicon solutions, continues to build on its heritage of mobile communications innovations with the announcement of its world phone platform based on the Marvell® PXA978 communications processor with Marvell HSPA modem. Marvell’s PXA978 is the industry’s first single-chip solution to feature 3G UMTS (Universal Mobile Telecommunications System) and China’s TD-SCDMA (Time Division Synchronous Code Division Multiple Access) standard with HSPA (High-Speed Packet Access) support and is intended to enable mobile developers to design 3G cellular devices and tablets that can be used and supported globally.

“… It’s truly amazing that a tiny chip like the PXA978 integrates both 3G and TD-SCDMA basebands, a powerful application processor, all advanced 3D graphics capability, with a very low-power profile and affordable cost structure ideal for mobile devices, such as smartphones and tablets,” said Weili Dai, Marvell’s Co-Founder. “With the addition of Kinoma‘s elegant and intuitive software experience and integration of cutting-edge mobile technologies, Marvell has enabled the entire ecosystem – in both its depth and breadth – to convert conventional cell phones into multi-functional mobile gadgets ideal for gaming, video chatting, live news, and more. This small device has the potential to make a huge impact on our world. I envision that a true world phone will transform the global economy by lowering the cost and barriers to entry for billions more consumers and innovators.”

Unlike current technology on the market, the Marvell world phone development platform is the world’s first and only available solution of its kind featuring R7 3G UMTS and TD-SCDMA with HSPA. Additionally, the platform will feature the industry’s first Mobile MIMO, Avastar(TM) 88W8797, an 802.11n 2×2 dual-band Wi-Fi SoC designed to support high data rates for next-generation mobile devices.

Original equipment manufacturers (OEMs) no longer need to design separate development platforms to accommodate different wireless standards and target markets around the world, saving months of design time and cost. Instead, they can focus on creating a wide portfolio of 3G UMTS supported phones that can be used globally with other UMTS carriers worldwide – all based on a single development platform.

Marvell’s PXA978 single chip solution uses advanced 40nm process technology and is designed to deliver 3G TD-SCDMA baseband combining high performance 1.2 GHz application processor with advanced 3D graphics and 1080p multimedia, ensuring a feature-rich, fast and exceptionally smooth user experience. Additionally, the processor’s extremely high power efficiency and true multitasking capabilities is intended to enable OEMs to design mobile devices that represent a significant leap beyond today’s most advanced smartphone and tablet devices. The platform will support all leading OS platforms.

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

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

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

 

STATEMENTS IN THE ABOVE VIDEO YOU WILL FIND NOWHERE ELSE:

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

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

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

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

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

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

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

What about Symbian? What about Qt?

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The market for gray handsets

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

The market for non-gray handsets

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

ELOP SELLS MICROSOFT, BUYS NOKIA

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Microsoft was not immediately available for comment.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

 

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

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

Top Five Mobile Phone Vendors in 2010 by IDC

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

Top Five Mobile Phone Vendors in Q4 2010 by IDC

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

Top Five Smartphone Vendors in 2010 by IDC

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

Top Five Smartphone Vendors in Q4 2010 by IDC

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

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

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

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

Regarding Nokia IDC was even somewhat positive:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Radical strategy shift/reorg at Nokia

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Structure

July 1, 2010

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

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

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

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

White-box (Shanzhai) vendors

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

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

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

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

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

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

Link: China’s white-box handset market

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

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

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

… why are we instantly attracted to shanzhai products?

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

MediaTek as the catalyst of the white-board ecosystem

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

India’s Micromax, Indonesia’s Nexian and i-Mobile of Thailand are some of the domestic brand vendors that have taken down global giants at home with current market share rankings at third, second and fourth, respectively, in their countries.

Their business models are sourcing handsets from white-box manufacturers to target the entry-level segment as well as niche opportunities that were neglected by larger international vendors, according to sources from Taiwan-based handset makers.

The low-end strategy is certainly effective since consumers in emerging regions are typically more price sensitive. For niche markets, Micromax introduced phones with long standby time of 30 days and models with dual-card, dual-band and dual-standby functionalities. Nexian heavily promoted devices with dual-card and dual-standby features and QWERTY keypads. i-Mobile launched dual-card and dual-standby phones and models with analog-TV features.

Besides entry-level products, local vendors have rolled out smartphones and begun to expand to markets overseas, the sources said.

Most of the local vendors are also well-known distributors with strong ties within domestic sales channels and are responsible for their own after-sale services, the sources pointed out. This solves two major issues white-box critics often bring up – low brand recognition and poor service. Combined with protectionism policies and consumer preferences for home-made brands, the local players still have plenty of room for growth.

Recently, several brand vendors ranked in the top-five globally have contacted manufacturers in Taiwan and China-based handset designers to outsource new models that are comparable in both features and price to those sold by local vendors, said the sources.

Taiwan handset manufacturers have previously produced for local players in emerging markets but gradually gave up orders to white-box makers, since those clients never provided long-term order commitment and often shopped around between seven to eight contract manufactures, the sources noted.

And just now came the news that MediaTek reportedly to secure new orders from Nokia and Samsung for 2011 [Feb 17] (emphasis is mine):

IC design house MediaTek will likely attract new orders for entry-level and mid-range handsets from Nokia and Samsung Electronics in 2011, in addition to its existing ones from Motorola and LG Electronics (LGE), according to market sources.

New contracts, as well as continued-strong demand from China’s white-box handset market, may assist MediaTek to fulfill its handset-chip shipment goal of 550 million units for 2011, the sources said.

Having grown its market share in China’s white-box handset market with 2.5G solutions, MediaTek finds it hard to gain a further larger presence in the white-box handset market. As a newcomer to the 3G and smartphone chip segment, MediaTek is facing strong competition from international chipset companies. Meanwhile, price cuts initiated by local China-based rivals have squeezed its 2.5G market share.

MediaTek now stands a chance of breaking into the supply chains of more brand-name handset companies in 2011, the sources pointed out. MediaTek is likely to grab orders mainly for entry-level and mid-range devices from four out of the global top-five handset vendors, the sources indicated. The orders could boost MediaTek’s handset-IC shipments to 600 million units in 2011, the sources said.

In addition, the sources pointed out that MediaTek is preparing the launch of its next-generation 2.5G single-chip solution, which will be built using 40nm process technology with more features integrated in the compact all-in-one package.

MediaTek's MT6253 - MT6516 - MT6268

Note that in 4Q10 at least one mainland China rival started to use heavily MediaTek’s major foundry – albeit at 65nm not the 40nm MediaTek is aiming for – as reported by TSMC to get 60% more orders from Spreadtrum in 4Q10 [Oct 15, 2010]. In fact MediaTek had two make two pricecuts in the second half of 2010 and smartphone chipsets MT6516 and MT6268 now down to under US$10 [Dec 3, 2010] (that price is without the WCDMA license which should be additionally paid to Qualcomm, see above). There is more information about that came in MediaTek to take on MStar with 40nm single-chip 2.5G solutions [Feb 17]:

MediaTek will take on rival MStar Semiconductor in the 2.5G handset chipset segment with single-chip solutions built using 40nm process technology soon, according to industry sources.

MediaTek aims to take back the service privilege in the 2.5G chipset sector with advanced manufacturing processes after MStar managed to boost its share in the segment in the China market from the original 5-10% to almost 30% in the second half of 2010, the sources noted.

MediaTek’s next-generation 40nm parts will integrate baseband, RF, Bluetooth, power amplifier and power management ICs into an all-in-one package, said the sources. In comparison, MStar’s 40nm chips, which are still in development, will come with only baseband and RF chips.

Having cut its chip prices drastically in the past few months to stop MStar from further denting its share in the 2.5G segment, MediaTek’s strategy to launch parts made with advanced technology will also force MStar to channel its newly earned profits into a technology race, the sources asserted.

Note: MStar is a Taiwan-based competitor of MediaTek as per MediaTek to see challenges in China market [Sept 9, 2009]

In this way the white-board ecosystem will expand not only outside mainlad China but also to the international brand vendors, and MediaTek will likely remain the major catalyst of that peculiar ecosystem for the years to come.

ZTE et al.

@ MWC: ZTE Goes For The High End With The Skate [Feb 14, 2011]:

ZTE, the Chinese handset and wireless equipment maker, epitomises a certain kind of new entrant in the mobile industry: very determined, very cheap, and very much on the rise. At an overheated stand crowded with competitors, partners and non-partisan observers checking out ZTE’s newest devices — led by the Skate Android-based smartphone—I retreated to a quiet, air-conditioned room with Zhang Xiaohong, ZTE’s VP for handsets, to talk cannibalization, me-too Android competitors and more.

North America is our fastest-growing market. ZTE’s home market of China, where it ships devices with the three major operators China Unicom, China Mobile and China Telecom, is the company’s single largest market. But North America, shays Zhang is growing the fastest. Shipments in that region went up four-fold in the last year, with ZTE signing distribution deals with the U.S.‘s four major operators (selling both handsets and data cards for mobile broadband). Europe also grew—by a rate of 100 percent, with notable increases also in Japan, Australia, Russia and Latin America.

ZTE has already made a crucial shift in the last year to exporting more devices than it sells domestically. Zhang says the current rate is 35:65. If you take IDC’s recent number that indicates that ZTE shipped 60 million units in 2010, that works out to 21 million in China and another 39 million everywhere else.

Is it all about the cheapest price? No, she says. ZTE has disrupted the market with devices like the Blade (which sold for under $200), but it looks like it is now trying to leverage that market share to expand into the more premium segment against higher-end competitors like HTC and Apple:

“We will continue to focus on low-cost solutions for developing and developed markets, especially developing markets” she says. “But it’s also about new devices like the Skate.” No prices have yet been revealed for the Skate, which features a 4.3-inch screen and runs using Android 2.3—but the device, when I tried it out, seemed a little slow and jerky in its graphics. The specs say it runs on a 800MHz processor, compared to some of the newer devices from other Android OEMs built on 1GHz chips. The device is set to debut in May 2011.

Who is your biggest competitor? No straight answer on this one. Zhang says ZTE splits their competitors into two segments: “established” companies like Nokia (NYSE: NOK) and Samsung and “new ones” like HTC and Apple (NSDQ: AAPL). “ZTE can produce devices that compete with both,” she says.

What makes you different from other Android device makers? Ultimately a lot of these devices start looking more or less the same as each other, I say.

We are good at customisation, according to different cultures and customs. We can differentiate.” ZTE says that it can and has developed devices for specific operators, making them unique in the marketplace. It also looks like ZTE is looking to take customisation to the software level, too: the company launched a new app store this week, to deliver services that complement those in the Android Market.

One other key area, says Zhang, is that, unlike a lot of the other Android OEMs, ZTE also sells network equipment: this means that ZTE can sell “total solutions”—at very competitive prices. She says that ZTE has such agreements with 28 of the top 30 operators worldwide.

What do you think of the Nokia/Microsoft (NSDQ: MSFT) deal, and do you have any plans for MeeGo? For now, Nokia’s choice to work on Windows Mobile phones “means the future does not look good for MeeGo,” she says. “Last week’s news may have been the last straw or it, and we have no plans to develop on it for now. But whether going with Microsoft will give Nokia advantages over the long term remains to be seen.”

http://www.shanzai.com/ remark on that article is that ZTE is still singing tried and true Shanzhai tune: “We are good at customisation” [Feb 11, 2011]

ZTE is a Shanzhai success story. Starting out small and then big in China, ZTE is now doing well in North America and is expected to increase market share there even more this year. When their VP was asked this week, why they have been so successful, their Shanzhai their Shanzhai roots showed through.

According to IDC, ZTE shipped 60 million products in 2010. Their exports were mainly to North America and also to Japan, Australia and Latin America.

Now what we have seen, time and time again, is that the successful Shanzhai make handsets that fulfill a local (rather than generalized global) market need. Sometimes that can lead to quirky products, like exchangeable solar batteries, cigarette lighters, or more practical factors like dual SIM support, etc. It turns out that even in “mainstream” North America, catering to the local audience is the key.

Zhang Xiaohong, ZTE’s VP for handsets at the Mobile World Congress said that ZTE’s success is because “We are good at customisation, according to different cultures and customs. We can differentiate”.

It’s ironic that the Shanzhai are often seen as strangers to differentiation because of the high profile of clone models, when actually it’s the Shanzhai’s adaptability that keeps their business strong.

But ZTE and Huawei are not alone. Here is another example, G’Five so far known only in India but expanding rapidly both in India and into the other parts of the world:

India Mobile Handset shipments grow 6.7%, to 101 million units in 12 Months ending June 2009 [IDC India, Oct 9, 2009]

Market intelligence firm, IDC’s India Quarterly Mobile Handsets Tracker, 2Q 2009, September 2009 release issued today states that in terms of units shipped Nokia had the largest share of 56.8%, followed by Samsung with a 7.7% share while LG stood third with a 5.4% share in the 12-month period ended June 2009.

New Vendors Make a Mark
A number of new vendors entered the India mobile handsets market in the last 12 to 18 months to carve a niche for themselves by offering feature-rich (dual SIM card, full QWERTY keyboard) and application-rich (IM enabled) mobile handsets at attractive price points. They also introduced entry-level models for the ‘price sensitive’ Indian consumer.

Figure 1: India Quarterly Mobile Handsets Market: New Vendor Shipments Growth

Source: IDC’s India Quarterly Mobile Handsets Tracker, 2Q 2009, September 2009 releasee

This development shows that even in a crowded market there is room for vendors to enter with the right product-feature-price mix.

IDC’s India quarterly mobile handsets tracker 2Q 2010 [Sept 28, 2010] (some emphasis is mine):

According to Mr. Anirban Banerjee, Associate Vice President-Research, IDC India, “In the recent quarters several new players successfully launched their own devices at significantly lower Average Selling Values (ASVs) in the price sensitive India market. Such handsets found ready acceptance amongst first time buyers, especially from small towns and villages.”

This influx of new brands led to a spurt in overall market and saw ‘emerging vendors’ corner as much as 33.2% of total India mobile handset shipments in 2Q 2010. The Finnish handset maker Nokia retained its No.1 spot with a market share of 36.3% in terms of units shipped. The Korean electronic giant Samsung retained the No. 2 position, while Chinese brand G’Five emerged as the No. 3 player.

According to IDC’s India Quarterly Mobile Handsets Tracker, 2Q 2010, September 2010 release, the number of emerging vendors in India’s burgeoning mobile handsets market grew to 35 in 2Q 2010 and they together garnered 33.2% of total shipments for the first time during the April-June 2010 quarter. This represented a manifold increase from five (5) new vendors representing a 0.9% combined share of units shipped in the January-March 2008 quarter.

During the last 6 months (January-June 2010) the top five mobile handset vendors in India were Nokia, Samsung, G’Five, Micromax and Spice.

Figure 1: India Mobile Handsets Market: New Vendor Contribution to Shipments, Q1 2008 to Q2 2010

Source: IDC India, 2010

July-September 2010 mobile phone shipments (sales) log 3.6% quarter-on-quarter growth to
cross 40 million units: ‘Emerging Vendors’ capture 41.2% combined share [IDC India, Dec 29, 2010] (emphasis is mine):

… the Finnish handset maker Nokia had the largest share of 31.5%* in terms of units shipped during 3Q 2010.
The Chinese brand G’Five emerged as No. 2 player in terms of unit shipments market share and Korean handset manufacturer Samsung stood at No. 3 in 3Q 2010.

The India mobile handsets market continued to grow in 3Q 2010 as well to record a quarter-on-quarter (3Q 2010 over 2Q 2010) growth of 3.6%* to touch 40.08 million units in the quarter, according to IDC India. The year is expected to end with total mobile handset sales of 155.9 million units.

The number of emerging vendors in India’s burgeoning mobile handsets market grew to 68 and they together garnered 41.2%* of total shipments (sales) for the first time during the July-Sep 2010 quarter.

Smartphone prices continued to drop through the year and as competition increased, devices were made available by vendors at successively lower price points. So, while 80%* of total India smartphone sales were below the ASV (Average Sales Value) of Rs. 18,000 in 2Q 2010, this proportion increased to 90%* in 3Q 2010.

Top G’Five mobile phones in India [Jan 13, 2011] (emphasis is mine)

Which are the top two cell phone brands today in India in terms of shipment volumes? Nokia and Samsung, many of us would like to think, right? Or maybe Sony…or LG…or Micromax which has been advertising quite a bit.

Not quite, folks. A recent report from leading market intelligence firm IDC India reaffirms the Finnish telecom giant’s status as the leading cell-phone player in the country, with Nokia accounting for 31.5% of the domestic cell-phone market during the July-September period last year. But, surprisingly, a little known Chinese brand called G’Five has made it to the second spot by capturing a 10.6% market share–with Samsung coming in third at 8.2%!

Sounds shocking, right? How can a Chinese player, without any big-ticket advertising campaign or any celebrity as its brand ambassador, manage to create such a big impact in the cut-throat Indian cell phone industry–without any fanfare? Well, the answer lies in G’Five’s strategy of rolling out a bevy of feature-rich phones at competitive prices (in the Rs.1,400-Rs.7,000 range), targeted exclusively at urban first-time buyers and those in semi-urban and rural areas looking to upgrade from basic phones.

So if you are looking to buy a G’Five mobile phone, here is a list of eight affordable (costing not more than Rs.5,000) models from around 26 G’Five phones currently available in India (in the order of ascending prices)– with each of them having their own USPs.

G’Five D10 Price: Rs.1,820 [US$40.4] … G’Five X5 Price: Rs.1,899 [US$42.1] … G’Five N92 Price: Rs.2,249 [US$49.9] … G’Five i310 Price: Rs. 2,400 [US$53.2] … G’Five M33 Price: Rs.2,499 [US$55.4] … G’Five L600 Price: Rs 2,700 [US$59.9] … G’Five X33+ Price: Rs.3,786 [US$83.9] … G’Five V60 Price: Rs. 4,490 [US$99.6] …

And these phones are not crap as you can even see from their pictures (for features info it is worth to go into the article).

G'Five D10 - i310 - V60

Note that to target the upper part of this range Social networking is Nokia’s latest mobile strategy [Feb 17, 2010] (which the above phones do not have):

The company’s latest launch on Nokia X2-01 mobile, at Rs 4,459 [US$99.2] is one such product. “QWERTY is one of the fastest growing mobile phone category in the world due to the rise in messaging and social networking. The Nokia X2-01 makes it easy to set up chat and email direct from the mobile phone,” said Nokia India General Manager-South T S Sridhar. “This means superfast access to your favourite Ovi Mail, Ovi Chat or other popular accounts.”

As young users want to stay connected with friends on the move, instant messaging is rapidly on the rise. With messaging devices like Nokia X2- 01, we are empowering the youth, he said. The handset also provides live updates from social networks such as Facebook, Orkut and Twitter directly from home screen. The Nokia X2-01 is Series 40 2G phone with VGA camera and FM radio. It has one click access the music player and has 3.5mm AV connector ideal for headphones or speakers. It also has Bluetooth and can support up to an 8GB micro SD memory card and has a standby battery time of up to 20 days, he claimed. For affordable access to internet, Nokia has also tied up with country’s largest mobile service provider Airtel which allows 100 mb of free data download per month for 12 months to its subscribers on this phone. Under this scheme one can access Face Book, and OVI Chat and Ovi Mail free of charges.

Gfive Mobile Phones (by Devika Rajpali)

The company of GFive is from China. The investors of the company are a syndicate named Zerone group that of the most esteemed OEM factories that boost of producing around 100 million mobile phones. The GFive mobile phones are the hottest running brand in indisputable imei china mobiles. The company has now established itself completely in the field of tech support, repairing and software installation. You will find the GFive mobile phone to be very stylish with large number of mobile phones to offer to its consumers. The company claims to have experience, confidence and data along with the in-depth insight of their Chinese mobile phones.

The KingTech Telecom (Shenzhen) Co Ltd. is behind the brand with KingTech Telecom (HK) Limited behind the export activities. As far as India is concerned the arrangement will be developed into a stronger local representation as Victor Infotech ties up with King Tech Telecom [Nov 11, 2010] (emphasis is mine):

Victor Infotech Ltd has tied up with King Tech Telecom Ltd (a Hong Kong-based telecom company) to form a joint venture company — Asian Telecom Ltd. The majority stake of 51% in the new company will be held by King Tech Telecom Ltd and the balance 49% equity will be held by Victor Infotech Ltd.

Asian Telecom Ltd., the new joint venture company, will come into being with immediate effect to launch the G’Five brand of mobile phones in the Indian market. The company plans to take the G’Five brand of mobiles to new heights in India and achieve 20% of the market share in the next two years.

As part of the collaboration, Kingtech Telecom shall manufacture the mobile phones and Victor Infotech will be responsible for distribution and marketing of the phone in India. Initially Kingtech Telecom will manufacture the Indian specific mobile phones in Hong Kong [rather in Shenzen] and gradually the same shall be manufactured in India.

The Indian mobile phone market is growing very fast. The company expects the sales of the mobile phones to grow 5 times in the next two years and plans to take advantage of this growth to gain the maximum market share. To achieve this, the company shall introduce many variations in its mobile phones, which shall be specific to the needs of the Indian consumer.

Meanwhile for other parts of the world a new sales and marketing operation has been set up: GLX mobile – G’FIVE Mobile’s Brother Company [Dec 14, 2010] (emphasis is mine)

A new member of Zerone Group called GLX mobile has been founded. With its full name as GLX International Limited, GLX mobile is dedicated in global distribution of GLX mobile phone.

Since G’FIVE is a member of Zerone Group, G’FIVE and GLX are brother companies. The new-founded GLX focuses on international markets, especially emerging markets. GLX mobile covers the whole range of mobile phone user market, from low-end to high-end with stylish and unique handsets.

GLX is aiming to create golden life for worldwide consumers with all ranges of mobile phones.

And the GLX company’s website indicates that it has taken over (almost all) the rest of the existing G’Five business network:

GLX Mobile initial business network

Marvell to capitalize on BRIC market with the Moby tablet

Follow-up: First real chances for Marvell on the tablet and smartphone fronts [Aug 21 – Sept 25, 2011]

Brazil, Russia (sort of), India, and China (BRIC) are the current leading lights for most of the businesses looking for high growth markets in 2011. This is not different for the ICT industry either. See more about that in the “Analysts about the BRIC market potential” part of this post far below. This will also be showing how promising is the new BRIC-oriented end-customer strategy of Marvell.

If one knows very little or nothing about Marvell it is recommended first to read my preceding post Marvell ARMADA beats Qualcomm Snapdragon, NVIDIA Tegra and Samsung/Apple Hummingbird in the SoC market [again] [Sept 23, 2010 with updates upto Jan 17, 2011].

Follow-up: High expectations on Marvell’s opportunities with China Mobile [May 28, 2011]

No wonder that Marvell has started to implement one of its long-range end-customer strategies, the so called Moby (see above and/or click) first in India then in other parts of the BRIC. As PC World (IDG News) reported in its Tablets Using Marvell’s Moby Design in India Soon [Jan 27] article (emphasis is mine):

Tablet computers built to Marvell’s Moby reference design should launch in India in the first half of this year, an executive of the company said on Thursday.

The chip company is partnering in India with consumer electronics vendors, mobile handset makers, and mobile service providers who will be offering the product under their own brands, said Anand Ramamoorthy, Marvell’s country head of sales and marketing in India, on Thursday. He did not disclose the names of the partners.

Marvell announced in March last year a US$99 prototype for a multimedia tablet targeted at education.

The basic configuration in India is likely to be priced closer to 10,000 rupees ($216) because of the high import duties and the cost of distribution in the country, Ramamoorthy said. In emerging markets, there isn’t a model whereby hardware costs are subsidized by service contracts, he added.

India and China will be the first among emerging markets where the tablets will ship, with plans to also introduce the products in Latin America and Eastern Europe.

As emerging markets are price-sensitive, Marvell’s strategy is to position a low-cost configuration as a volume product.

In India, the company is expecting its partners to deliver for 10,000 rupees a 7-inch tablet with a capacitive LCD screen, that will be built around the Armada 168 processor at 800 MHz, and offer 720p video and Wi-Fi connectivity. It will run the Android operating system and other open source software, Ramamoorthy said.

The actual price in these markets will depend on partners and their business and margin models, Ramamoorthy said. Some partners may decide to offer high-end, more expensive devices as well, he added.

Marvell will have two primary manufacturers globally, including Foxconn. Partners selling the tablets will however be free to choose manufacturers from a pool of Marvell’s manufacturing partners, Ramamoorthy said.

Follow-up: Kinoma is now the marvellous software owned by Marvell [Feb 15]

Marvell’s current on-line press kit [Jan 9] contains the following documentation and images related to the Moby design:
Mobylize Prototype – It’s Time to Mobylize for America’s Students! [Fast Facts, Jan 3]
Marvell Showcases Moby Tablet and Extensive Line of Other Advanced Connected Devices for the Always-On Lifestyle at International CTIA Wireless 2010 [CTIA Press Release, March 23, 2010]
Marvell Drives Education Revolution with $99 All-in-One Mobile Tablet Designed for the World’s Students [Press Release, March 18, 2010]

Marvell Moby White Vertical: students screen

In the latest Jan 3 Fast Facts (linked above) the following prototype features and technical specifications are given:

Moby Prototype Features
• Future-Proof Learning: Mobylize leverages the powerful and open Android OS platform to ensure an open and growing ecosystem of learning technologies
• Multi-Sensory Interaction: Mobylize’s touchscreen interface, as well as video and audio capabilities, creates a highly interactive and engaging learning experience.
• Always-On Technology: With 802.11 b/g wireless connectivity and web browsing with Adobe® Flash® Lite 3.1, students can learn seamlessly with online and offline technologies in today’s always-on environment.
• Multimedia Education: Integrated multi-media player, photo viewer, instant messaging and more drive learning potential exponentially beyond the classic textbook.
• Drives Green Classroom: Marvell technology provides high energy-efficiency that energizes hours of learning.

TECHNICAL SPECIFICATIONS
• ARMADA 168 (1 GHz), WMMXTM multi-media acceleration engine
• 256MB DDR2 RAM
• Android OS
• 2D graphics engine, WMMX, QdeoTM intelligent color, remapping technology
• 10.1” TFT LCD display, 1024 x 600 resolution, Capacitive touch panel
• 4GB NAND flash, Micro-SD up to 16GB
• Two stereo speakers (1W each), built-in microphone
• USB 2.0 (x1 host, 1x device) • Micro SD card, MIC and Ear phone jack, 12V DC-in
• 802.11 b/g connectivity
• 2800mAh; 7.4 volts battery

Note however that in the press release of last March (also linked above in  PDF form) the higher ARMADA™ 600 class processor has been indicated:

About Marvell Moby Tablet

Powered by high-performance, highly scalable, and low-power Marvell® ARMADA™ 600 series of application processors, the Moby tablet features gigahertz-class processor speed, 1080p full-HD encode and decode, intelligent power management, power-efficient Wi-Fi/Bluetooth/FM/GPS connectivity, high performance 3D graphics capability and support for multiple software standards including full Adobe Flash, Android™ and Windows Mobile.  The ultra low power Moby tablet is designed for long-battery life.

as well as for the Moby MED reference design announced in another press release Marvell Drives ‘Telehealth” Revolution with Moby MED Always-On Medical Tablet [Apr 21, 2010]. Note that Moby MED devices are quite different since (as per the press release):

Healthcare-focused Tablets With Multiple Simultaneous Viewing Screens Including Video Conferencing and Live TV Allow Consumers to Manage Medical Records, Conduct Live Physician Consultations, View 3D Images and Sonograms, Collect Real-Time Data From Personal Monitoring Devices, Access Information From Online Sources, and More.

which is currently looking much more suitable for the developed markets.

The remark, that “Some partners may decide to offer high-end, more expensive devices as well” could — however — point to the fact that even for the education market Marvell partners could use a higher end tablet offering as well, at least as an alternative. This could also explain why a Moby2 prototype design is already existing as evidenced by the image gallery shown above.

On CES 2011 the ARMADA 168 based Moby prototype has also been called Marvell 100 series tablet [Jan 6, 2011].

[CES 2011] Marvell’s foray into the tablet market sees this rather cute and well designed model, the 100 series. Unlike other tablets that are in the market, this one comes with Android 2.2 (instead of 2.1), while sporting a rather young, all-white design with all the lines in the right places. A microSD memory card slot is there for expansion purposes, and you won’t get multi-touch support on the 10” display which is a bummer, so forget about zooming in or out in Angry Birds. There is 1GB of internal memory inside, while Wi-Fi connectivity is supported although 3G will not be present when it hits the market sometime this year for $199 a pop [with $99 manufacturing cost — see in the below video]. Of course, as with Marvell’s OLPC project, the 100 series will target the educational environment more. It is pretty heavy, but it won’t weigh a ton like most textbooks. Looks hardy enough to stand up to the rigors of restless kids, too! Interestingly enough, being an Android-powered device, it has more than the usual 4 buttons of Home, Menu, Back and Search, but will include the “Up” and “Down” buttons, too.

while the more performant one which is based on ARMADA 600 is also called 600 series accordingly. More information:
Marvell 600 series tablet has interesting implications [6 Jan]
Marvell 600 Tablet Series Graphics Performance Demo at CES 2011 [Jan 24]
– and the video Mobylize Tablet on ABC News: Good to Know [Jan 10, 2011]


Note while watching the video that the LCD screen used in the tablet has wide viewing angle.

The title of the above is mentioning “Mobylize” instead of “Moby”. This is a typical confusion. The truth is that Mobylize is:

a campaign aimed at improving technology adoption in America’s classrooms

which was announced with the One Laptop per Child and Marvell Join Forces to Redefine Tablet Computing for Students Around the World [May 27, 2010] by which:

Marvell and OLPC Empower Education Industry to Revolutionize the Classroom Experience through Advanced, Affordably-Priced Tablets

and which was extensively discussed in my post Marvell ARMADA with sun readable and unbreakable Pixel Qi screen, and target [mass] manufacturing cost of $75 [Nov 4, 2010].

The campaign (http://www.mobylize.org/) has a Tablet Demos page which absolutely clarifies the education tablet offering as:

7″ Tablet with a 7″ TFT LCD display of 800 x 480 resolution, Bluetooth 2.1 and with form, size and weight as shown below:

Marvell Moby 7 inch tablet

10″ Tablet with a 10.1″ TFT LCD display of 1024 x 600 resolution and with form, size and weight as shown below:

Marvell Moby 10 inch tablet

with the rest of the specifications the same, i.e.
Processor: ARMADA 168 (1 GHz), WMMX™ multi-media acceleration engine
Memory: 256MB DDR2 RAM
OS: Android
Graphics/Video: 2D graphics engine, Various format video decode up to 720p through S/W, Qdeo™ intelligent color remapping technology
Display: with resistive touch panel
Storage: 4GB NAND flash, Micro-SD up to 16GB
Audio: Built-in microphone, Two stereo speakers
Sensors: Accelerometer [s ?for 10″ one?]
Ports: USB 2.0 (x1 host, 1x device), 2-in-1 card reader, MIC and Ear phone jack, 12V DC-in
Connectivity: 802.11 b/g
Battery: 2200mAh; ~8 hour use
Example Features: Complete web browsing experience with Adobe® Flash® Lite 3.1, Multi-media player, Photo viewer, Instant messaging

Currently the Mobylize Development Kit with the 10″ version is available for pre-order from Aluratek for $299.  Till Feb 28 there is CES Promotion with 20% off. It is shipping April 15th. Aluratek will introduce a similar 10″ product of its own in February, called Cinepad, which is ensuring Moby tablets availability in the US as well:
CES 2011: Aluratek Announces Libre Air eBook Reader with Wi-Fi and
New Cinepad Android Tablet
[Jan 6]
Aluratek Cinepad & Libre Coming In April [VIDEO] [Jan 13]
CES 2011 – Aluratek Cinepad [Jan 10]
The Year of the Tablet [Jan 18]

Within Mobilize there was also an app competition (see: Marvell to Fund Next Generation Education Apps [Sept 27, 2010]) with recent results as per Marvell Announces Winners of Its ‘$100K Challenge’ Tablet App Competition [Jan 6]:

The winner of the $50,000 top prize is the application Battleship Numberline, a multitouch educational game that helps strengthen math skills. “Improving your ability to estimate along a number line correlates with math performance all the way up to 6th grade,” said lead developer Derek Lomas, a 29-year-old Ph.D. student at the Human-Computer Interaction Institute at Carnegie Mellon University. “Marvell is doing great things for the future of education by seeding a development community for educational apps.”

The winner of the second-place prize of $30,000 is the application Imagine Mathematics, which illuminates math disciplines like algebra, trigonometry and calculus by taking students behind the scenes and showing them how these disciplines are used in the creation of animated movies from studios like Disney and Pixar. The creator of the app is 36-year-old Seth Piezas, a former technical director at Pixar Animation Studios who now runs his own interactive agency, Colabi.

“I want high school students to see the practical applications of math and the cool things they can create,” said Piezas. “The tablet computer really is an amazing platform for the classroom. I just wish I had something like it when I was a kid.”

The third-place prize of $20,000 goes to Homework Management System, an application that allows students to create quiz questions based on what they have learned in the classroom, which  teachers then can distribute to other students for quiz-show style gaming or for homework assignments.

More information:

Marvell ARMADA beats Qualcomm Snapdragon, NVIDIA Tegra and Samsung/Apple Hummingbird in the SoC market [again] [Sept 23, 2010 with updates up to Jan 17, 2011] with all SoC product information including background

Marvell ARMADA with sun readable and unbreakable Pixel Qi screen, and target [mass] manufacturing cost of $75 [Nov 4, 2010]

Marvell beaten by Chinese chipmakers in sub 1,000 yuan handset procurement tender of China Mobile [Nov 15, 2010]

Analysts about the BRIC market potential

In recent Forrester report (see the Forrester: Global Tech Economy Will Substantially Outgrow The Overall GDP In 2011 [Feb 2] press release copy since on the Forrester’ site it is not more available) the #1 prediction is that:

The Tech economy will substantially outgrow the overall GDP.

with the following details:

The global technology industry is in a multiyear up-cycle of industry innovation and growth, during which tech investment grows faster than overall economic growth. This cycle, which is already under way in the US and other developed countries, is based on adoption of a new generation of Smart Computing and Cloud Computing technologies. We expect this cycle to ensure 7.5% growth in US IT purchases, and 7.1% growth globally (measured in USD), despite economic worries in Europe, uncertainties about the strength of economic recovery in the US, and the potential for slowing growth in China.

in 2011, Brazil, Russia (sort of), India, and China (BRIC) will see some of the fastest (11%) growth in IT purchases in 2011, with other emerging markets such as South Africa, Saudi Arabia, Indonesia, Chile, and Mexico seeing similarly strong growth.

The 2011 Accenture Consumer Electronics Products and Services Usage Report which came out under the title “Finding Growth:  The Emergence of a New Consumer Computing Paradigm” [Jan 3] has some very significant survey results regarding the BRIC market (in text empasis is mine):

[p. 4, Executive Summary part] A widening enthusiasm gap

The urban consumers in Brazil, Russia, India and China (the BRIC markets) have leapfrogged the average mature market consumer in their use of technology. They have a much greater appetite for consumer technology from many measures, including the devices they own, their purchase plans and their use of applications. Counter to common misperceptions, a large segment of BRIC consumers are more interested in the newest and most innovative technologies than in the lower price point technologies with less functionality. BRIC market consumers have a higher rate of adoption of the newest technologies and a greater willingness to pay premiums for features and enhancements. For instance, a full 84 percent of Indian respondents say they will pay a premium for enhanced smartphone capabilities. That translates into roughly 148 million consumers.

In the BRIC markets, in particular, prospects are bullish for spending on consumer electronics in 2011. This is especially true in China, where this year’s purchasing plans for technologies such as smartphones and high-definition TVs are staggering. Assuming China has an estimated 167 million urban households and an estimated urban population of 434 million people in the consuming age, 38 million high-definition TVs and 63 million smartphones will be purchased there in 2011.

In contrast, mature markets are more conservative and price sensitive. Consumers in the US, Japan, Germany and France have less ambitious plans to purchase new devices in 2011, use fewer applications overall, and are far less willing to pay premiums for new features and enhancements. And, while consumers 55 years or older in mature markets tend to have higher disposable income (and therefore greater ability to spend on technology), they more often wish to spend as little as possible to keep up on the technology adoption curve. In contrast, younger consumers in BRIC markets demonstrate a huge appetite for electronics, but like millennials around the globe, they are often harder to please, less loyal and have less disposable income to spend.

A new consumer technology paradigm

Another benchmark of the new technology paradigm is that as new technologies emerge, consumers are increasingly quick to stop using particular devices if they feel they have the same functionality in another device that performs the same function better—especially in BRIC markets. Twelve percent of consumers surveyed in the BRIC markets stopped using mobile phones in 2010 because they had another device with the same functionality. This compares with only five percent of consumers in mature markets who jettisoned their mobile phones. And, in both mature and emerging markets, younger people appear to be far more willing to let go of duplicative devices.

[p. 5] In summary, in the fast-changing consumer electronics industry, exploiting big growth opportunities is becoming increasingly difficult. Our research helps consumer tech companies with this challenge by offering information on the hottest current and emerging geographic, product and  application markets for consumer technology. For instance, the highest spending in 2011 (and we believe for years to come) is projected to be in urban and semiurban BRIC markets. Demand for mobile applications such as banking continues on a strong growth trajectory. And new technologies (such as tablet PCs and e-book readers) and next-generation technologies (such as smartphones, 3-D and Internet-capable TVs) are projecting substantial growth.

[p. 13] Interestingly, one-quarter of respondents globally don’t plan to purchase any consumer technologies in 2011. More than one-third (37 percent) of those 55 and older don’t plan any purchases, compared with only 15 percent of those between 18 and 24 years of age. And a stark contrast in purchasing plans exists between mature and BRIC markets: 40 percent of respondents in mature markets don’t plan to purchase any consumer electronics in 2011, compared with only 9 percent of those in the BRIC markets.

[p. 16] Our study shows that BRIC markets have far greater enthusiasm for technologies and appetite for purchasing them than non-BRIC countries, especially the latest devices such as tablet PCs. One could infer that the lower use of computers in BRIC countries is an indication that these consumers are finding alternate devices to do those activities formerly done on the computer—and may, in fact, have simply leapfrogged the step of owning a computer that those in mature markets had to take because at the time there were no other options.

[p. 24] When reviewing information on “heavy users” of activities—those who do the activity at least five hours per week—interesting patterns emerge. For instance, among millennials in the BRIC markets who are heavy watchers of shows and videos, a larger share (44 percent) watch them on a PC or laptop than on a television (chosen by 30 percent).

… Of those who don’t own an e-book reader, more than half said that it is because they prefer paper books. But 20 percent said they preferred other electronic devices than an e-book reader
for reading books, such as a phone, PC or tablet PC. In emerging markets, the percentage of respondents who prefer other electronic media for e-book reading is much higher: 34 percent in BRIC markets versus 7 percent for mature-market countries.

[p. 34] The tablet PC: The hot consumer electronic

The tablet PC is gaining market momentum. One need only look at the millions of sales of iPads and Galaxy Tab tablet computers since they were each launched in 2010 to know that this device is rapidly becoming popular among consumers.

According to Accenture’s research, 8 percent of consumers surveyed now own a tablet PC and about one-third of those individuals (3 percent total) purchased their tablet PC in 2010 (Figure 21). Eight percent of respondents globally plan to purchase a tablet PC in 2011—a purchase rate that would double tablet PC ownership globally in just one year.

BRIC market consumers are more enthusiastic purchasers of tablet PCs than are mature-market consumers. More than double the percentage of BRIC consumers currently own one, and double the consumers plan to buy one in 2011, than consumers in mature markets. But what is most astounding about tablet PC consumption is that nearly one-quarter of Chinese respondents (across ages within urban areas) currently own one. That is nearly three times the global average. The purchase rate in China was more than double the global average in 2010. And looking forward, China is potentially the strongest market for tablet PCs this year, with 18 percent of Chinese respondents planning to purchase one in 2011. If one does the math, tablet PC ownership would reach almost 40 percent of the urban adult population of China by 2012.

Although far behind China in consumption, India has the second-highest penetration of tablet PCs globally, with 10 percent of consumers owning one. Future growth for tablet PCs in India also looks strong: 10 percent of Indian respondents plan to purchase a tablet PC in 2011. Interestingly, Indian consumers seem less committed to the new technology than other countries. Five percent of those owning a tablet PC quit using it last year because they had the same functionality in another device (globally, the defection rate for tablet PCs was 2 percent).

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.