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Qualcomm’s new partnership with Nokia
Follow-up:
Nokia Lumia (Windows Phone 7) value proposition [Oct 26, 2011]
Note: The “affordable” Nokia Lumia 710 is the one produced by Compal (the 800 is by Nokia itself). Snapdragon S2 MSM8255 @ 1.4GHz is used in both models.
From being an enemy to being a partner [China Daily, Aug 4, 2011]
Paul Jacobs, chairman and chief executive officer of Qualcomm Inc, said the biggest challenge for him since he took over the company in 2005 was to turn Qualcomm from an enemy disliked by many industry players to a popular and amiable partner.
The company, which was founded by his father, Irwin Jacobs, in the United States city of San Diego in 1985, had been known for providing support for a digital wireless technology named Code Division Multiple Access (CDMA).
Unlike his father, who closely focused on CDMA technology, the son has a much broader vision and he strongly believes in the upcoming mobile Internet, in which cell phones are going to be the devices that everybody uses and connects to the Internet.
The idea has driven Jacobs junior to expand his father’s business into two major parts – mobile phone chipset production and patent licensing. The patent licensing includes CDMA technology and European-adopted technology Wideband Code Division Multiple Access (WCDMA).
Jacobs said he has witnessed some critical changes in the past six years. Instead of being caught up in lawsuits concerning intellectual rights, which used to be a common occurrence, companies have begun to regard Qualcomm as a good partner.
“Partnership was the thing we were missing,” he said in an exclusive interview with China Daily. It was great that Qualcomm had been known for two things – innovation and execution– because the company would come up with new things and would deliver qualified chips on time.
However, many companies didn’t like Qualcomm because it imposed high intellectual property royalties on its products. “They felt like they were our hostages. They didn’t like us. They resented us,” Jacobs recalled.
So in the first all-hands meeting after the son took the helm in 2005, he got up and said: “We are going to be known for three things – innovation, execution, and partnership.”
The company seemed to benefit from the decision and win back partners. Qualcomm and Nokia Corp, the world’s biggest mobile phone maker by volume, had fought for years over intellectual property disputessince Jacobs started to act as CEO.
Now the two companies have settled the lawsuits and are working together in San Diego to develop Nokia’s first smart phone running on a Windows platform.
Nokia Corp’s chief executive officer, Stephen Elop, said Qualcomm would be “an important partner” as his company is about to enter the Windows phone era.
“But Nokia still has a general strategy that we would like to have multiple partners for critical components,” Elop said at the Nokia Connection 2011 event in Singapore in June.
Jacobs said he is “very excited about that opportunity”, as Nokia eventually paved the way to adopt Qualcomm’s chips. “Our relationships are good and I think they will be even better when the first batch of Nokia phones starts to come out.”
Currently, all nine Windows phone models in the world’s markets are powered by Qualcomm’s Snapdragon chips, said the company.
“Qualcomm has the lead position on Windows Phone and it will take its competitors time to get up to speed on that operating system,” Jon Erensen, research director of Gartner’s mobile handset and consumer electronic semiconductors, wrote in an email to China Daily.
Qualcomm also sees good partnerships growing in the Chinese market, as China contributed the biggest revenue share of 29 percent in the company’s 2010 fiscal year, surpassing South Korea.
In China, the most important strategic alliance for Qualcomm is China Telecom Corp Ltd, the smallest telecom carrier of the country. The operator took the 3G license in 2009and runs a CDMA network in China.
China’s CDMA industry chain has flourished since 2009. Wang Xiaochu, general manager of China Telecom Corp Ltd, said the toughest time for China’s CDMA terminal industry chain had passed, since the market volume grew to 41.9 million units in 2010 from 7.67 million mobile phones in 2008.
China Telecom expects to sell more than 60 million CDMA mobile phones in 2011 and, by mid-June, about 25 million units had already been shipped.
“China Telecom is really where the center of the CDMA universe is now. It used to be more North American focused. Now I think it’s much more about China and Asia,” Jacobs said.
Qualcomm could be one of the companies that benefits most from China’s booming CDMA industry, since the company dominates the world’s CDMA chip market.
Meanwhile, the company has also cooperated with China Unicom to help produce WCDMA handsets.
Qualcomm’s relationship with China Mobile Ltd, the world’s biggest telecom carrier with more than 600 million subscribers, was relatively weak in the past. China Mobile adopted GSM technology in the 2G era and home-grown TD-SCDMA technology in the 3G era. Qualcomm had few products supporting these standards.
But Jacobs said his company’s latest chips, such as dual-core MSM 8960, are about to support various international telecommunication standards, including TD-LTE technology, which China Mobile is actively promoting.
Since China is now the world’s biggest mobile phone production country and mobile phone market, Qualcomm would really like to build up its partnerships with Chinese carriers and mobile phone makers here, the CEO added.
Wang Yanhui, secretary-general of the China Mobile Phone Alliance, said Qualcomm had signed patent licensing agreements with more than 50 mainland handset manufacturers and is setting up a research and development team of roughly 1,000 people in Shanghai.
Domestic handset makers, such as Huawei Technologies Co Ltd and ZTE Corp, are all in good relationships with Qualcomm. Jacobs expected these Chinese companies to achieve a similar success with South Korea companies such as LG Corp and Samsung Electronics Co Ltd.
Jacobs said it was very interesting in China that because China issued 3G licenses relatively later than other countries, Chinese mobile phone makers had built up an export market first.
“Then they come back to China’s 3G market with rich experience. That’s going to help them to achieve a greater success.”
In addition to providing high-end chips, which run at a fast speed and have rich functionality, Qualcomm also focuses on low-end mobile chips aimed for the mass market.
“We are driving the price down at that low endto get the mass market smart phone because we really believe that providing mobile broadband very widely to a lot of people is important, not just because of the good business for us, but because it also improves people’s lives,” he added.
Qualcomm’s move to further cut the low-end mobile phone chips could apply more pressure on some Taiwan-based chip makers, such as MediaTek Inc, but the hundreds of small- and medium-sized mobile phone manufacturers in China would benefit from the competition.
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Qualcomm’s global annual revenue rose to $11 billion in fiscal year 2010 from $7.53 billion in 2006. The company shipped 207 million MSM chips in fiscal year 2006, and the figure increased to 399 million in fiscal year 2010.
Qualcomm Signs MOU with China’s Ministry of Information Industry for CDMA [Dec 4, 2000]
The MOU confirms MII’s support of Qualcomm’s Framework Agreement with China Unicom dated January 28, 2000, pursuant to cooperation between China and Qualcomm in developing CDMA technologies. This MOU also supports the deployment in China of a nationwide network based on CDMA technology with continued migration to advanced CDMA technology supporting higher data rates. With over 70 million mobile communications subscribers, China has become the second-largest and fastest-growing mobile market in the world. Qualcomm’s MOU with MII has laid down the foundation of long-term cooperation between Qualcomm and China’s information industry.
Qualcomm Announces Signing of Commercial License for CDMA Network Products with Huawei Technologies [Nov 1, 2001]
Under the terms of the royalty-bearing license agreement, Qualcomm has granted Huawei a license under Qualcomm’s CDMA patent portfolio to develop, manufacture and sell cdmaOne™ and third-generation (3G) CDMA2000 1X/1xEV network equipment. The license grants Huawei the right to use Qualcomm’s patented technology and chipsets to make and sell cdmaOne and CDMA2000 1X equipment in China and worldwide.
Qualcomm Enters into CDMA Subscriber Unit and Infrastructure License Agreements with 11 Chinese Manufacturers [Jan 23, 2002]
… making a total of 17 domestic Chinese telecommunications equipment manufacturers that are now licensed by Qualcomm. Under the terms of the worldwide royalty-bearing license agreements, Qualcomm has granted these Chinese manufacturers licenses under Qualcomm’s CDMA patent portfolio to develop, manufacture and sell cdmaOne™ and third-generation (3G) CDMA2000 1X/1xEV-DO subscriber unit and/or infrastructure equipment.
China Unicom Announces the Signing of a Detailed Agreement with China Telecom on the Disposal of its CDMA Business [July 28, 2008]
Previously, on 2 June 2008, Unicom announced that it had entered into a CDMA Business Framework Agreement with China Telecom. On that same day, Unicom announced that it planned to merge with China Netcom Group Corporation (Hong Kong) Limited (“Netcom”) (HKSE: 0906, NYSE: CN).
The total consideration, payable in cash to Unicom by China Telecom, remains unchanged at RMB43.8 billion (approximately HK$50.1 billion [US$6.3B]) and Unicom expects to realise an estimated net gain before tax of approximately RMB37.6 billion (approximately HK$42.9 billion). The net proceeds from the disposal are expected to be used by Unicom for the expansion of its GSM network coverage, the improvement of GSM customer service and the enhancement of IT support systems and platforms for value-added services, in order to lay a solid foundation for the introduction of 3G services. The net proceeds will also fund the Unicom’s working capital and other general corporate purposes.
Upon completion of the Transaction, Unicom will focus on the operation of its GSM network and prepare for the introduction of 3G services. As of 30 June 2008, Unicom had 127.6 million GSM subscribers and 43.17 million CDMA subscribers. As part of the Transaction, 29.3% of Unicom’s employees will be transferred to China Telecom.
After that restructuring – however – Qualcomm had no China Telecom related press releases at all showing clearly that the company’s focus moved elsewhere on the China market (CDMA/EV-DO tech. manufacturing or other technologies), e.g. ZTE to Develop CDMA2000 Femtocells Based on Qualcomm System on Chip Solutions [March 23, 2010] or Qualcomm Now Demonstrating Products Based on LTE TDD Technology [Sept 8, 2010].
The Changes in the Nokia relationship
– Qualcomm Initiates Patent Infringement Proceedings in the UK against Nokia [May 24, 2006]
– Qualcomm Files Complaint Against Nokia with International Trade Commission [June 12, 2006]
– Nokia’s Announced Plan to Ramp Down its CDMA2000 R&D and Manufacturing Will Not Impede the Continued Growth of CDMA2000 [June 23, 2006]
– Qualcomm Responds to Nokia’s Latest Maneuver to Delay Judicial Determinations that Nokia’s GSM Handsets Infringe Qualcomm’s Patents [March 20, 2007]
– Qualcomm Files Additional GSM Patent Infringement Suits Against Nokia [April 3, 2007]
– Qualcomm Files Arbitration Demand Against Nokia to Resolve Dispute Over License Agreement [April 5, 2007]
– Nokia and Qualcomm Enter Into a New Agreement [July 23, 2008]
Companies Agree to Settle All Litigation
Nokia (NYSE: NOK) and Qualcomm (Nasdaq: QCOM) today announced that they have entered into a new agreement covering various standards including GSM, EDGE, CDMA, WCDMA, HSDPA, OFDM, WiMAX, LTE and other technologies. The agreement will result in settlement of all litigation between the companies, including the withdrawal by Nokia of its complaint to the European Commission.
Under the terms of the new 15-year agreement, Nokia has been granted a license under all Qualcomm’s patents for use in Nokia mobile devices and Nokia Siemens Networks infrastructure equipment. Further, Nokia has agreed not to use any of its patents directly against Qualcomm, enabling Qualcomm to integrate Nokia’s technology into Qualcomm’s chipsets. The financial structure of the settlement includes an up-front payment and on-going royalties payable to Qualcomm. Nokia has agreed to assign ownership of a number of patents to Qualcomm, including patents declared as essential to WCDMA, GSM and OFDMA. The specific terms are confidential.
“We believe that this agreement is positive for the industry, enabling the market to benefit from innovation and new technologies,” said Olli-Pekka Kallasvuo, CEO of Nokia Corporation. “The positive financial impact of this agreement is within Nokia’s original expectations and fully reflects our leading intellectual property and market positions.”
“I’m very pleased that we have come to this important agreement,” said Dr. Paul E. Jacobs, CEO of Qualcomm. “The terms of the new license agreement, including the financial and other value provided to Qualcomm, reflect our strong intellectual property position across many current and future generation technologies. This agreement paves the way for enhanced opportunities between the companies in a number of areas.”
Nokia and Qualcomm Plan to Develop Advanced Mobile Devices [Feb 19, 2009]
Nokia and Qualcomm Incorporated (Nasdaq: QCOM) today announced that the two companies are planning to work together to develop advanced UMTS mobile devices, initially for North America. The companies intend for the devices to be based on S60 software on Symbian OS, the world’s most used software for smartphones, and utilize Qualcomm’s advanced Mobile Station Modem™ (MSM™) MSM7xxx-series and MSM8xxx-series chipsets for cutting-edge processing performance and ubiquitous mobile broadband capabilities. The first mobile devices based on this collaboration would be expected to launch in mid-2010 and be compatible with the forthcoming Symbian Foundation platform.
“Nokia is very pleased to be in discussions with Qualcomm around designing mobile devices that can benefit from the high level of integration found on MSM chipsets,” said Kai Oistamo, executive vice president, Devices, Nokia. “We are eager to demonstrate to the industry the possibilities that exist when innovative and open software is combined with advanced hardware solutions.”
“Nokia and Qualcomm are leaders in advanced wireless technologies, and this new level of cooperation would bring exceptional leaps in mobile performance to people around the world,” said Steve Mollenkopf, executive vice president of Qualcomm and president of Qualcomm CDMA Technologies. “We are very excited about the possibility of the substantial synergies between S60 software and MSM chipsets.”
Qualcomm Innovation Center Joins the Symbian Foundation [Oct 29, 2009]
Qualcomm Innovation Center, Inc. (QuIC) and the Symbian Foundation today announced that QuIC, a wholly-owned subsidiary of Qualcomm Incorporated, has joined the Symbian Foundation and has been appointed to the Symbian Foundation board of directors. QuIC will support the Symbian Foundation with active participation on the board of directors and each of the four councils that govern the development of the Symbian platform.
QuIC’s charter is to focus on optimizing open source software for use with Qualcomm technology. QuIC brings to the Symbian Foundation a wealth of knowledge and expertise in open source and, as a Symbian Foundation board member, QuIC is committed to working with its fellow board members for Symbian’s continued commercial success. QuIC joins wireless operators AT&T, Vodafone and NTT DOCOMO; silicon providers ST Microelectronics NV and Texas Instruments; and handset manufacturers Samsung, Sony Ericsson and Nokia on the Symbian Foundation board.
The Symbian platform comprises a complete, open source mobile operating system, user interfaces, middleware and key mobile applications used in more than 300 million smartphone devices worldwide. It includes the critical software elements a manufacturer or operator needs to build a mobile device. Symbian was built for mobile and enables mobile developers to use open SDKs to create compelling mobile applications that take full advantage of all Symbian-based handsets.
“QuIC joining the Symbian Foundation and the Symbian Foundation board demonstrates our commitment to provide expertise and to optimize technology with the Symbian platform,” said Rob Chandhok, president of QuIC. “High-level operating systems offer the potential to unleash tremendous innovation and we are excited to help advance that process on the Symbian platform. Working as part of the Symbian Foundation, QuIC looks forward to participating in technology innovation in areas such as multi-core CPU support, Web browser and application enhancement, and CDMA and LTE support.”
“The Symbian Foundation welcomes QuIC, whose membership and board participation brings us significant wireless technology expertise and whose leadership will act as an important catalyst for the growth of the Symbian ecosystem,” said Lee Williams, executive director of the Symbian Foundation. “On behalf of the Symbian Foundation board, we look forward to collaboratively evolving and rapidly expanding the Symbian open source software platform with QuIC.”
Qualcomm, HP, HTC and Nokia Executives to Keynote at Uplinq 2011 [April 28, 2011]
Qualcomm Incorporated (Nasdaq: QCOM), the leading developer and innovator of 3G and next-generation wireless technologies, products and services, today announced the general session keynote speakers for the Uplinq® 2011 conference, hosted by Qualcomm on June 1-2 at the Manchester Grand Hyatt in San Diego. Speakers will include Dr. Paul E. Jacobs, chairman and CEO of Qualcomm, Jon Rubinstein, senior vice president and general manager, Palm Global Business Unit, Hewlett-Packard Company, Peter Chou, CEO of HTC and Stephen Elop, CEO of Nokia.
Dr. Paul E. Jacobs will open the conference on June 1 with his keynote, “Mobile Computing: The Next Great Frontier,” which will focus on the continuing evolution of mobile and expanding opportunities for developers to take the mobile experience to new levels. In addition, Dr. Jacobs will share insights about how advances in mobile computing and other technology enablers are breaking down barriers for developers and empowering them to change the lives of people everywhere. HP’s Jon Rubinstein will follow Dr. Jacobs with a fireside chat on the opening day of Uplinq.
On June 2, the second day of Uplinq, HTC’s Peter Chou will give the opening keynote. Rounding out this lineup of wireless industry leaders will be Nokia’s Stephen Elop who will give the second keynote on Day Two of the conference.
Key message: transition from device-to-device battle to ecosystem-to-ecosystem battle
Uplinq 2011: Nokia Stephen Elop Keynote Highlights [June 17, 2011]
The Uplinq Daily Show on Qualcomm LIVE! Interview with Nokia’s Stephen Elop [June 2, 2011]
Stephen Elop’s keynote at Qualcomm’s Uplinq [June 10, 2011]
… There is an opportunity for a third and competitive ecosystem to emerge. …
It is not just the device, or the software on that device. These ecosystems that I described are so much more than what you are holding in your hand. Nokia will be contributing mapping, navigation and various location-based services… and you know what… all the manufacturers of Windows Phone will be taking advantage of that… I want HTC and Samsung to be successful with Windows Phone because our principal competitor is not each other, but Android. So we are contributing service elements for the benefit of everyone in the ecosystem.
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Equally, Microsoft is contributing a number of services and capabilities… for example: Bing, AdCenter, Xbox, Office productivity experience, unified communications (voice, video etc.) You will have heard about the acquisition of Skype ten days ago, clearly that will be part of the Windows Phone ecosystem.
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Parts of the ecosystem, as well, are the chipset and other hardware contributors. Which is why Qualcomm, ourselves, Microsoft, are all working together to deliver the best experiences for this ecosystem.
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How do we take the ecosystem beyond the mobile experience? We believe that, fundamentally, we are just at the beginning of the mobile revolution. The mobile platform, with a variety of sensors and capabilities associated with a device, is giving opportunities to create entirely new and extended experiences that are only possible on that mobile device. So we are only at the beginning of mobility and have an opportunity to extend the ecosystem in different directions to make that even more compelling.
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Of course, this ecosystem is not just about mobility and the smartphone, it is also about tablets, it’s about television sets, gaming platforms, automobiles and all the different places where people expect to have a fully connected digital experience.
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And so we at Nokia definitely recognise the importance of delivering on this broader promise of the larger connected digital experience.
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Perhaps the first and most notable of these today relates to tablets. So there’s a lot of activity and hype about tablets in the marketplace. But the market conditions are not yet optimised… Say there are 201 tablets being sold today, only one of them is being sold out a furious rate… and being very successful. The other 200 tablets… are not really landing with consumers. For Nokia, when I get asked about our tablets strategy, the first thing I say is that I don’t just want to be tablets number 202. Because, really, if we cant differentiate from that pack… then we’re not going to be successful. So as we look at it, we believe we have to do something that is fundamentally differentiated. And we have some options to do that, given our market penetration, our strengths in emerging markets… so watch this space, you will see some interesting things.
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We do have the ability to reach out to very large numbers of well identified consumers. With our existing smartphone operating system we have, today, over 200 million registered users, 60 million of whom are active in our apps and store environment on a [rolling] thirty day basis. … Around the world we have tremendous reach. It is today that we are adding 140,000 new registered users [every day]… and they are downloading 5 million items a day [now 6 million]
Now part of the reason, in many parts of the world, that this has been attractive is because of the focus we have had on monetisation enablers. I mentioned earlier the operator billing relationships – we are able to measure the uplift for developers in areas where there is operating billing, compared to those where there is not. You get a three and half times uplift in the volume of money you can make when we have an operating billing relationship. The reason is simple… it is much easier for consumers to just click the button.
A lot of other things we are doing for developers: removing the registration fees to participate in Windows Phone development, all sorts of thing to make it easier to publish and distribute your application. We are also hoping you will recognise the extended opportunity, even beyond Windows Phone, to monetise your application on other platforms [Symbian, Series 40] that reach into China, India and Russia.
Nokia picks Qualcomm for Windows phone, seeks others [Reuters, May 20, 2011]
Nokia said on Friday it was negotiating with several chipset suppliers for its future Windows Phone models after deciding to use Qualcomm in its first smartphones using Microsoft’s software.
Nokia announced in February it would use Microsoft’s Windows Phone software in all of its smartphones.
Microsoft Windows Phone operating system (OS) is available only on Qualcomm’s chips, but the U.S. software giant has said it was expanding the supplier base.
“The first Nokias based on Windows Phone will have the Qualcomm chipset,” said a Nokia spokesman.
“Our aim is to build a vibrant ecosystem around Nokia and the Windows Phone OS and with that intent we are naturally continuing discussions with a number of chipset suppliers for our futureproduct portfolio,” he said.
He said one of the companies involved in the talks was ST-Ericsson.
Nokia To Use ST-Ericsson Chips For Windows Phone 8 Handsets [May 19, 2011]
In an interview at STMicroelectronics’ annual Analyst Day, [Carlo] Bozotti [the Chief Executive of the European semiconductor maker] told Forbes that ST-Ericsson will be one of two chip suppliers for Nokia’s upcoming Windows Phones.
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The first ST-Ericsson chipset that will appear in a Nokia Windows Phone is the U8500, a sophisticated dual-core system-on-a-chip that has been favorably compared to Qualcomm’s Snapdragon line because it offers multiple wireless technologies like Wi-Fi, Bluetooth, GPS and a fast, built-in HSPA+ modem, all in a compact format. Some later Nokia Windows Phones – the company has previously said it is planning to release 12 Windows Phone devices over the course of 2012 – will run on future versions of the U8500, said Bozotti.
The 5-years long experience of close partnership with Microsoft
– Microsoft and Qualcomm to Revolutionize the Next Generation of Smartphones [May 4, 2006]
– Qualcomm’s Collaboration with Microsoft Reshapes the Smartphone Market [Oct 23, 2007]
– Qualcomm [Snapdragon] Powers Next-Generation Windows Phones [Windows Mobile 6.5] Launching Around the Globe [Oct, 2009]
– Qualcomm Becomes the First Chipset Company to Support Microsoft Windows® Phone 7 Series [Feb 15, 2010]
The Company is working with Microsoft and multiple device manufacturers on smartphones powered by its Snapdragon™ platforms and running Windows Phone 7 Series software, currently scheduled to begin launching in time for the 2010 holiday season. Snapdragon chipsets integrate high-performance, custom CPUs with 3G and powerful multimedia capabilities in a single chip.
The latest version of Windows Phone software, announced today, is distinguished by its smart design and delivery of truly integrated experiences. Combining the capabilities of Windows Phone 7 Series software and Qualcomm’s industry-leading chipset solutions will enable a new generation of devices that redefine the possibilities of mobile experiences.
“People’s lives are not a set of discrete tasks and their phones should not be either. Windows Phone 7 Series software offers a fresh approach that integrates the Web, applications and content and brings new services such as Zune and Xbox LIVE to the phone for the first time,” said Andy Lees, senior vice president, Microsoft. “We’ve worked closely with Qualcomm on Windows Phone 7 Series software and Qualcomm’s Snapdragon chipsets are an integral partof bringing to life the rich, integrated experiences on a Windows Phone in a way that conserves battery life and provides always-on connectivity.”
“Qualcomm has a long history of working closely with Microsoft on Windows Phone, and we are continuing this collaboration to support the launches this year of exciting new Windows Phone 7 Series devices based on our Snapdragon chipsets,” said Steve Mollenkopf, executive vice president of Qualcomm and president of Qualcomm CDMA Technologies. “We are very excited about the next generation of devices that will leverage the synergy of our highly integrated system on a chip solutions and Microsoft’s Windows Phone 7 Series software.”
Qualcomm Snapdragon SoCs with a new way of easy identification
Follow-up: Next-gen Snapdragon S4 class SoCs — exploiting TSMC’s 28nm process first — coming in December [Aug 9 — Nov 16, 2011]
Update: Qualcomm Snapdragon S1-S2-S3 SoCs lineup in production as of 16-Nov-2011
- Qualcomm Snapdragon S1-S2-S3 SoCs lineup in production as of 16-Nov-2011
End of Update
In the last 24 hours there has been an incredible barrage of posts about “rebranding Snapdragon”. These posts are providing a kind of summary of changes referring to Qualcomm as the source of the information but not linking to that. When one finally finds the Qualcomm source it comes out that there is no rebranding in the conventional sense just a new classification for existing SoCs. So the individual SoC identifiers are the same, there is just a possibility to refer to them by a higher level of indentification which is related to the class of systems they are targeted to.
Because this is much more important new information than the non-existant rebranding I am first copying here the Qualcomm source and then some additional important information regarding their Adreno graphics capabilities and Qualcomm’s latest strategic moves to enter mobile gaming in a very big way. A report of current assesment of that is also available: Qualcomm hopes to make game consoles obsolete [Aug 4, 2011] Anandtech has published the slides of the Qualcomm event: Qualcomm’s March into the Gaming Market [Aug 3, 2011] and draws attention to this particular slide:

Please note the “Wireless Display” option which comes via the WCN3660 companion chip to Snapdragon S4 class of SoCs from the recently acquired Atheros (now Qualcomm Atheros). That chip will support the emerging Wi-Fi Display standard (said not to be confused with Intel’s WiDi) for streaming video directly from a smartphone or tablet to a Wi-Fi enabled display or television. (See also Wireless Gigabit Alliance – WiGig where Atheros is a member which is competing with Wireless HD where one of the members is Intel)
A Simple Way to Identify Which Snapdragon System is Right for You [Tim McDonough Vice President, Marketing, Qualcomm QCT on Qualcomm’s blog: OnQ, Aug 3, 2011]
Today Qualcomm is introducing a new way for our customers, our industry colleagues and consumers to identify the Snapdragon chipset that fits their needs. Those of you who know us well know that our current Snapdragon family of processors has grown to encompass over 15 different chips with feature sets that target mass market smartphones all the way through high end smartphones and tablets. And, although our Snapdragon chips are called processors, they are really system on chip solutions. Inside each Snapdragon chip are multiple hardware subsystems including CPUs, GPUs, modems, multimedia processors, GPS, DSPs, sensors, as well as advanced management software.
And all of these components are integrated into a single small chip that is designed with mobile in mind. The result is that Snapdragon processors deliver outstanding performance and longer battery life. But with such a deep roadmap of chips, our customers and industry colleagues have told us that it has become increasingly difficult to quickly and easily identify which chips are best suited for different devices.
We have arrived at a simple solution. Now our Snapdragon processors are classified into three system classes, System 1 (S1), System 2 (S2) and System 3 (S3): Simple names which denote performance and feature set. Moving forward, we will continue to add new classes as our roadmap grows. Without further ado, I present you with the Snapdragon S1, Snapdragon S2 and Snapdragon S3.
Snapdragon S1: Mass Market Smartphones [note: Up to 3G HSPA]
Snapdragon S1 processors offer great performance and longer battery life for today’s mass market smartphones. Boasting CPU speeds of up to 1Ghz, Adreno 200 graphics and a 3G modem, Snapdragon S1 processors are powering some of today’s coolest devices.
“The HTC Wildfire S could be the darling of the affordable Android handsets……..The most important factor for us is that we’ve found the HTC Wildfire S capable to performing those core tasks without too much of a compromise.”
— Pocket-Lint’s review of the HTC Wildfire S powered by the Snapdragon S1The Snapdragon S2: High Performance Smart Phones & Tablets [note: 3G HSPA+]
The Snapdragon S2 processor is an excellent choice for high performance smartphones and tablets. The S2 class of processors have some of the same design foundations as the S1 class but with some key performance improvements including a single core Scorpion CPU that clocks to speeds of up to 1.4Ghz, the fastest single core mobile CPU in the market, and the Adreno 205 GPU, which is designed to provide a 2x performance boost over the Adreno 200 GPUs. Web browsing and multimedia performance gets a serious performance boost too. With just one CPU core, the Snapdragon S2 can offer smoother graphics than other solutions that use dual-core CPUs.
“You can see clearly in the video that Qualcomm’s 2nd generation, single-core processor chewed up YouTube’s 720p Flash content without a hitch while the others failed to keep up in a smooth fashion.”
— Phandroid– (6/2011)Snapdragon S3: Multi-tasking & Advanced Gaming [note: 3G HSPA+, 1440×900/1080p HD/Dolby 5.1, Stereoscopic 3D capture & playback]
Here’s where things really get kicked up a notch. Simply put, the Snapdragon S3 is designed to offer 2x the graphics performance of the S2 and 4x the graphics performance of the S1. The S3 class of processors also feature a dual core Scorpion CPU at speeds of up to 1.5Ghz per core. With a more powerful [Adreno 220] GPU and a fast dual core CPU, the things our customers are starting to do with the S3 are pretty incredible. Take the HTC EVO 3D, this smartphone features a front-facing camera for video calls, two cameras on the back to create 3D photos and a display that uses a parallax barrier so you can view 3D photos without 3D glasses!
This performance boost also allows our customers to create devices with bigger and sharper displays. The Snapdragon S1 and S2 are typically in devices with 3-4-inch displays that offer a resolution of 800×480. The Snapdragon S3 in the HTC EVO 3D drives a 4.3-inch display with a resolution of 960×540, while the HP TouchPad tablet uses a monstrous 10.1-inch with a resolution of 1024×768.
The Snapdragon S3 Mobile Processor and Your HDTV [Aug 2, 2011] [note the “extend that experience to a 40-inch display” both in the video and the attached caption]
To maintain great battery life while also improving performance, Qualcomm designed the S3’s Scorpion CPU cores to be asynchronous, so each core can operate at different frequencies and voltages for superior performance at lower power. The S3 class of processors also support a host of video codecs and multimedia acceleration. You can learn more about the devices that use Snapdragon processors in our Snapdragon Showcase
“It (The Snapdragon S3) has arguably the best CPU and GPU in the dual-cores…The CPU being asynchronous can be a real battery saver… including NEON and has a 128-bit pipeline rather than 64 bit found in all other CPU thus a better speed…About multimedia, Its one of the best when it comes to multimedia… Qualcomm is also known for the stability of chipsets due to the fact that everything is on the chipset itself rather than making manufacturers add it.”
— Droid Gamers—Beastly Dual-Core Android Devices: A Rundown on Each Chipset (5/2011)Coming Soon: Snapdragon S4—Next Generation Devices
The Snapdragon S4 class will include the newest generation of Snapdragon processors and will feature a new CPU microarchitecture [Krait instead of the previous Scorpion] and integrated 3G/LTE multimode. The S4 will stay true to its roots by delivering exceptional battery power—a 65% decrease in power consumption, yet at the same time boost performance by 150%. This combo is going to create mobile products that offer graphics [Adreno 225 and up] that are comparable to current gaming consoles.
You’re also going to see Snapdragon S4 processors in new form factors and running a full blown desktop operating system. We’re currently working with Microsoft so the S4 can run the next version of Windows—Windows 8.
Stay tuned for big things. Or should we say small things?
Snapdragon™ Adreno 220 GPU Powers “Desert Winds” Game at MWC [Brent Sammons, Graphics Product Manager, Qualcomm QCT on Qualcomm’s blog: OnQ, March 1, 2011]
Attendees of Mobile World Congress 2011 got to see the newest generation of the Adreno GPU, Adreno 220, in action as part of the new Desert Winds game demo at Qualcomm’s booth. The graphics performance, new 3D effects, and level of graphical realism now possible with the dual-core Snapdragon MSM8660 chipset and its Adreno 220 GPU grabbed the attention of virtually all passing by the booth.
Snapdragon’s Adreno GPU – Desert Winds Game Demo [note the “console quality” differentiation in the attached text]
Desert Winds was shown in stereoscopic and non-stereoscopic 3D via HDMI out to a 55-inch HD LCD display. As with Qualcomm’s other dual-core Snapdragon MSM8660 demos at the show, the new Desert Winds game was running on the Snapdragon Mobile Development Platform (MDP), which is a device available to developers who want early access to Snapdragon chipsets and Adreno GPUs. (Get more info on the Snapdragon MDP and how to purchase at www.bsquare.com.)
The Desert Winds game ran in interactive and non-interactive modes, giving users the ability to play the game and help the game’s heroine, Amira, slay the giant scorpion character, Alacran, and his army of scorpions.
Developed by Southend Interactive, the game showcases the console-quality 3D graphics and high-end effects made possible by the Adreno 220 GPU, such as:
- Advanced particle physics and vertex skinning
- Full-screen post-processing shader effects
- Dynamic lighting with full-screen alpha blending
- Real-time cloth simulation
- Advanced shader effects like dynamic shadows, god rays, bump mapping and reflections
- 3D animated textures
Qualcomm will continue to use the Desert Winds game to showcase the ever-evolving, advanced capabilities of the Adreno GPU, with more 3D effects, smoother stereoscopic HD gaming, market-leading performance, and industry leading power-efficient 3D graphics. Based on our research (*), the Adreno 220 GPU in Qualcomm’s dual-core Snapdragon MSM8660 offers twice the performance of the GPU in other leading dual-core ARM9-based chips.
With more Android devices based on Snapdragon and Adreno and with over 100 games optimized for Snapdragon and Adreno, it seems clear that the mobile industry is already well aware of the many advantages that Snapdragon and its Adreno GPU.
In my opinion, it was apparent at this year’s Mobile World Congress that Qualcomm is well-positioned to continue its strong momentum in providing OEMs and 3D game developers with a powerful and efficient graphics platform that brings more of the industry’s latest and best 3D games to more smartphones, tablets and laptops everywhere.
_____
(*) Source Qualcomm – Average of Industry benchmarks composed of Neocore, GLBenchmark, 3DMM and Nenamark
Anandtech’s reports are not contradicting that:
– Hands on and Benchmarks of two MSM8x60 Phones – HTC Sensation 4G and HTC EVO 3D [June 3, 2011]
– Dual Core Snapdragon GPU Performance Explored – 1.5 GHz MSM8660 and Adreno 220 Benchmarks [March 30, 2011]
GLBenchmark 2.0
… GLBenchmark 2.0 is the best example of an even remotely current 3D game running on this class of hardware–even then this is a bit of a stretch. GLBenchmark 2.0 is still our current go-to test as it is our best best for guaging real world performance, even across different mobile OSes. … Comparatively, the 1.5 GHz MSM8660 with Adreno 220 is 2.2x faster than the 1 GHz MSM8655 with Adreno 205.
…
Quadrant 3D and 2D
Last and definitely least (at least in my mind) on the list is Quadrant, which has unfortunately become something of a de-facto one stop shop for benchmarking Android devices, famously spitting out one easy to digest score.
… Adreno 220 shows anywhere from 2-5x performance gains over Adreno 205.
Final Words
When we first started looking at Qualcomm’s Snapdragon SoCs we were impressed by their CPU performance but largely put off by the performance of the Adreno 200 GPU. The 45nm Snapdragon with the Adreno 205 GPU changed things as it roughly doubled GPU performance. The Adreno 220 brings about another doubling in GPU performance. …
How Snapdragon is Changing the Mobile Gaming Industry [Brent Sammons, Graphics Product Manager, Qualcomm QCT, Feb 10, 2011]
Qualcomm Shows Strong Support of the Mobile 3D Gaming Ecosystem at GDC [Brent Sammons, Graphics Product Manager, Qualcomm QCT on Qualcomm’s blog: OnQ, March 18, 2011]
Qualcomm has been clearly demonstrating its support of the entire mobile 3D gaming ecosystem at recent conferences like this month’s Game Developers Conference (GDC) in San Francisco. This support showed up as a press release with Gameloft; a new video with Gameloft and NAMCO BANDAI Games America; joint marketing activities with Sony Ericsson around their new PlayStation Certified Xperia Playdevice; a GDC speaker session featuring presentations by leading mobile developers Southend Interactive and Polarbit; a new Snapdragon mobile 3D gaming ecosystem video and a very well-attended and well-received party at Ruby Skye!
In the press release Qualcomm announced its agreement with Gameloft to deliver an enhanced, Snapdragon-optimized experience for Gameloft’s premier HD mobile 3D game titles like “SpiderMan Total Mayhem HD,” “Real Football 2011 HD,” “GT Racing: Motor Academy HD” and “Modern Combat 2: Black Pegasus.” These will be optimized for current and future Snapdragon processors, such as the MSM8x55 with its Adreno 205 GPU (currently shipping), and the dual-core MSM8x60 with its Adreno 220 GPU.
In a video shot during GDC, Baudouin Corman (Vice President Publishing of Americas for Gameloft) and Dominic Lobbia (Senior R&D Director of NAMCO BANDAI Games America) speak to their game optimization efforts and the value that Snapdragon and Adreno bring to the table. They cite the strong adoption of Snapdragon by manufacturers of high-end Android and Windows Mobile 7 devices, the high quality and great performance of mobile 3D graphics powered by Snapdragon and Adreno, as well as the valuable graphical optimization and development tools Qualcomm offers like the Adreno Profiler. (For more information on the Adreno tools, go to http://developer.qualcomm.com/dev/gpu/tools.)
Game Developers Explain the Value of the Adreno GPU [March 18, 2011]
…
Conference attendees also had the opportunity to get the whole story about Qualcomm’s mobile 3D gaming ecosystem support via a new video that was playing just outside the South Hall Expo Floor. The video features Qualcomm’s Vice President of Product Management, Raj Talluri, who explains that there is a huge ecosystem of Snapdragon game developers and games optimized to Snapdragon, that the majority of Android phones use the Snapdragon processor, and that all Windows Phone 7 products use the Snapdragon processor. Therefore, he explains, developers are able to reach a large audience of smartphone and tablet users.
Qualcomm’s Mobile 3D Gaming Ecosystem [March 20, 2011]
“Hey, You Got Your Snapdragon Chipset in My Xperia™ PLAY” [Brent Sammons, Graphics Product Manager, Qualcomm QCT on Qualcomm’s blog: OnQ, May 27, 2011]
Unlike the chocolate and peanut butter in Reese’s chocolate peanut butter cups, it was no accident that Snapdragon and the Xperia PLAY found themselves together. This week Sony Ericsson launched the Xperia PLAY at Verizon, with Qualcomm’s Snapdragon MSM8255 mobile processor with Adreno 205 Graphics Processing Unit(GPU) inside.
It is the world’s first PlayStation-certified phone (and perhaps the world’s most gaming-centric smartphone). And Sony Ericsson chose Snapdragon and Adreno to power it. If you’re wondering why, check out this recently posted Qualcomm video, featuring Aaron Duke and Kim Ahlstrom from Sony Ericsson, talking about the Xperia PLAY with Snadragon’s Adreno GPU.
Snapdragon’s Adreno [205] GPU powers the Xperia PLAY [May 26, 2011]
The Snapdragon MSM8255 chipset and Adreno 205 GPU together provide a fun and immersive gaming experience via the very device you will want to carry with you everywhere all the time – the new Xperia PLAY smartphone.
Not only does Snapdragon contain powerful graphics processing — enough to rival some in-home console systems — but it also has a lot of other valuable integrated features like video capture and playback, music playbackand a 1.4 GHz CPU.
The Xperia PLAY has a 4-inch 854×480 display, a 5 megapixel rear-facing camera, a VGA front-facing camera, 512 MB of RAM, and is based on Android 2.3 Gingerbread. Perhaps more importantly, the device comes with seven preloaded games. And you can download over 50 more games via Verizon’s VCAST apps store.
I would say that another big reason that Sony Ericsson chose to work with Qualcomm is that Qualcomm is really into mobile gaming!Keep your eyes peeled in the coming days for more details on just how big into gaming Qualcomm has become.
In the case of the Xperia PLAY, Qualcomm worked closely with Sony Ericsson not only to establish connections with some of the best mobile game developers and game titles around, but alsoto help game developers make sure that the games offered on the PLAY are the best they can be, using the Adreno graphics optimization tools.
We’re very pleased that Sony Ericsson chose Snapdragon for the Xperia PLAY device. We’re confident you will be, too. The Xperia Play may not be as tasty as a Reese’s peanut butter cup, but I’d say it’s a lot more fun and lasts a lot longer! For more information on commercially available Snapdragon-based devices and on the Adreno graphics optimization tools, check out our developer site at developer.qualcomm.com.
SoC’s for 2011: [ekin , Jan 23, 2011 >>> ]
(listed in what I believe is the best to the worse)
+ ARM Sparrow: Dual-core Cortex A9 @2.00GHz (on 32nm die), unspecified GPU
+ TI OMAP 4440: Dual-core Cortex A9 @1.5GHz, SGX 540 (90M t/s)
+ Apple A5 (iPad2): Dual-core Cortex A9 @0.9GHz, SGX 543MP2 (130M-150M t/s)
+ Qualcomm MSM8660 (Gen IV Snapdragon): Dual-core Cortex A9 @1.5GHz, Adreno 220 (88M t/s)
+ TI OMAP 4430: Dual-core Cortex A9 @1GHz, SGX 540 (90M t/s)
+ ST-Ericson U8500: Dual-core Cortex A9 @1.2GHz, ARM Mali 400 (50-80M t/s)
+ Samsung Orion: Dual-core Cortex A9 @1GHz, ARM Mali 400 (50-80M t/s)
+ Nvidia Tegra 2: Dual-core Cortex A9 @1GHz, nVidia ULP-GeForce (71M t/s)
+ Qualcomm Scorpion (Gen III Snapdragon): Dual-core Cortex A8 @1.2GHz, Adreno 220 (88M t/s)Notes:
– The SGX530 is roughly half the speed as the SGX535. The SGX540 is twice as fast as the SGX535.
– The Adreno 205 (41M tri/sec) is supposedly faster than the SGX535 but slower than the SGX540 (thus, is likely to be in the mid).
– The Adreno 220 is twice the speed of the Adreno 205 but it is slightly slower than SGX540 (88M vs 90M tri/sec).
– Samsung claims ARM Mali 400 to be 5 times faster than its previous GPU (S3C6410 – 4M tri/sec), about on par (80M tri/sec) with the Adreno 220, but few leaks benchmarked it to be only slighlty faster than the SGX535 (40M tri/sec).
– The gpu used in the Nvidia Tegra2 has been quite contained (little known). I estimated the Tegra2 has 71M t/sec (Tegra 2 Neocore=27fps/55fps=Galaxy S Neocore, x62% disadvantage of screen resolution, x 90Mt/s of SGX540 = 71M t/s). And recently some inside rumors via fudzilla actually confirmed this exact figure, so therefore the gpu-chip inside the Tegra2 is roughly equivalent to the MALI 400.All of these details are based on officially announced, rumors from trustworthy sources and logical estimations, so discrepancies can be existent.
Last thoughts:
As you can see there is some diversity in the next-gen chips (soon to-be current-gen), where the top tier (OMAP 4440) is roughly 1.5 times more powerful than the low tier (Tegra 2). However drivers and software will play a lead-role in determining which device could squeeze out the most performance. And this factor may alone favour the iPad2, Playbook or even MeeGo tablets to be better than the Honeycomb tablets which are somewhat bottleneck-ed by the lack of hardware accelaration and post-transcription through the Dalvik VM. I think we’ve hit the point where we could have some really impressive high definition entertainment, and even emulating the Dreamcast at decent/fullspeed.edit2 [March 13]: “ Just re-edited the post. Apple’s A5 details are added in, its looks to be one of the best chips for the year. If I had to choose between the OMAP4440 and A5, I probably would be reduced to a head-tail coin flip!”
Well, Apple’s been boasting over x9 the graphical performance over the original iPad. There are 2 articles on anadtech, one in Geekbench and a processor-specific details from imgtech (I dug up from 12months ago). It has been found that its a modified Cortex A9, 512MB RAM and the SGX543MP2. Everything points to the SGX543MP2 being significantly faster than the SGX540, and the given number was 133 Million Polygons per second (theoretical) for SGX543MP4 which is double SGX543MP2 performance. The practical figure is always less. Imgtech said the SGX540 is double the grunt of the SGX535, benchmarks show the SGX543MP2 is (on average) five times the grunt as the iPad (SGX535). So going by imgtech (the designer of sgx chips), the theoretical value that I list above, should be 70M t/s … going by Apple’s claim it should be 200M t/s … going by benchmarks it should be roughly 130 M t/s. Imgtech’s value is definently wrong since they claimed its faster than the SGX540 valued at 90M t/s. Apple’s claim also seems biased, they take only the best possible conditions and exaggerate it even more. It seems to be somewhere in between, and wouldn’t you know it, the average of the two “false” claims is equivalent to the benchmarked value
edit3 [April 3]: “Update. The benchmark results of the Snapdragon MSM8660 are in…. and it goes further to support the list. MSM 8660 = Dualcore A9 + Adreno 220 + Qualcomm modification (for better/worse).”
The benchmarks are out for the 4th-gen QSD, which confirms everything prior. It’s competing for top place against the 4440 and A5. I’ve changed the post (only updated chip’s name). If one were to choose between the processor of the A5 and the OMAP4440, they’d be really pressed to choose between more cpu grunt or more gpu grunt.
Qualcomm roadmap reveals quad-core, 2.5GHz ARM CPU [July 6, 2011]
MSM8960 [start shipping in Q4 2011]: Adreno 225 3D/2D 125 M tri./sec (DX9.3) – said to rival the GPU powering the Playstation Vita
MSM8930 [start shipping in Q3 2012]: Adreno 305 3D 80M tri./sec (DX9.3) – take us far beyond the possibilities of the Playstation Vita and more into the realm of the Xbox 360 or the Playstation 3
MSM8974 [start shipping in Q1 2013]: Adreno 320 3D 225M tri/sec (DX9.3)
While looking back one year: [Medion, Aug 19, 2010]
Samsung Galaxy uses PowerVR SGX540 (rated at 1 gigapixel fill-rate, and 28M triangles/sec)
Iphone 3GS/4 both use PowerVR SGX535 (1 gigapixel, 14M tri/sec)
Droid 2/Droid X use PowerVR SGX530 (500 megapixel, 14M tri/sec)
Droid uses underclocked PowerVR SGX530 (250 megapixel, 7M tri/sec)
Snapdragon uses Adreno 200 (133 megapixel, 22M tri/sec)So when it comes to the GPU, the Galaxy S phones kill anything that uses a current Snapdragon. The fill-rate is what is what’s really holding back the Adreno.
As for the CPU, I’ll generalize here.
Snapdragon – ARMv7 based Scorpion core (NOT an A8 like some state). Advantages over A8 is 5% faster clock for clock, and ability to be used in a multi-core configuration. Basically, it’s more future proof.
TI OMAP – stock Cortex A8, but currently running at 45nm, so better on battery life than Snapdragon (this will change with the new Snapdragons coming out)
Hummingbird – modified Cortex A8, 10-20% faster multi-threaded performance, but also 45nm so with better battery life as well.
So in terms of CPU, it’s Galaxy > Snapdragon/OMAP (depends, do you want 5% more performance, or significantly better battery life?)
So in conclusion, the Galaxy phones have more horsepower than the Incredible. If you plan to root and run custom ROMs, it should be the platform of choice.
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]
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 GSM , TD-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 v2.2CPU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)
- 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 GSM , TD-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 v2.2CPU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)
ZTE 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:
- 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.
- 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.
- 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 communication … LTE 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:
- 260 million dual-mode (TD LTE + FDD LTE) devices will be activated by 2016
- Android will account for 48.5% of the smart phone market, Windows 21% and iPhone (iOS) 16.5% by 2016.
- APAC and Europe will account for the largest number of smart phones and tablets activated by 2016.
- 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.
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.
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
- Fact Sheet: Global Intel Manufacturing Fact Sheet(PDF 414KB)
- Presentation: Intel Announces New 22nm 3D Tri-gate Transistors(PDF 6.4MB)
- Presentation: 22nm Details(PDF 1.1MB)
- Fun Facts: How small is 22nm?(PDF 150KB)
- Backgrounder: History of the Transistor (PDF 218KB)
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]
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.
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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.
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.






The images leaked online provides glimpses of new HTC Windows Phone 7, currently being called ‘Eternity’. HTC Eternity will land as one of the first most smart phones running Microsoft Windows Phone 7 Mango (WP7) operating system.
The i8350 has also received its very own (blank, for now) page in Samsung’s UK support database, pretty much confirming that it’s real. You can see a screengrab of that above.


1.0 Program Overview

ZTE Light Tab T9 ZTE Light Tab T9 





Tri-gate or 3-D are terms used by