Thursday, March 27, 2008

Handset demand growth in China promising

Having an early presence in the China TD-SCDMA chip solution market, NXP Semiconductors reiterates its confidence about the penetration of the TD-SCDMA standard in China in 2008 amid anticipated positive catalysts stemming from the upcoming Beijing Olympics. While projecting positive handset demand growth this year, however, uncertainties still exist. Read more

Friday, March 21, 2008

China-based TechFaith aims to ship 1.5 million handsets in 2008

21 March 2008
China-based handset and handset-solution provider TechFaith Wireless Communication Technology aims to ship 1.5 million units, including one million handsets and 500,000 smartphones, in 2008, compared to a total of 600,000 units shipped in 2007, company president and COO Gilbert Lee said recently in Taipei.
In addition, TechFaith has also ventured into the development of MID (mobile Internet device) products and Android-based handsets, with plans to launch its first Android-based product in the fourth quarter of this year at the earliest, Lee noted.
With established business relations with Nokia, Motorola, LG Electronics, and Toshiba already, TechFaith is also seeking opportunities to cooperate with Taiwan-based handset vendors, including BenQ, to offer handset production services, Lee stated.
In other news, TechFaith has transferred a 31% stake it held in a joint venture set up with China-based handset maker BYD in early 2007, to its partner. Lee said that the two companies will continue to cooperate on handset production for international brand vendors.
TechFaith did not make equity investments in the joint venture and instead contributed a 300-engineer team, TechFaith said in a statement released in February 2007. With the transfer of the 31% stake, the venture now becomes a wholly-owned subsidiary of BYD.

Thursday, March 20, 2008

ZTE, Potevio Obtain HSDPA Licenses

Source : Chinatechnews

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2008-03-20

The Telecom Research Institute of China's Ministry of Information Industry has begun to issue the first batch of TD-SCDMA network licenses, and ZTE and Potevio have been among the first Chinese communications equipment providers to obtain their licenses.

To obtain an access license, a company's equipment must undergo a range of strict indoor and in-field tests. The series of wireless equipment provided by Potevio that fully supports TD-SCDMA HSDPA has passed the relevant telecom equipment tests and been given a licenses.

Though ZTE and Potevio have both confirmed obtaining their respective licenses, TD equipment providers Datang and TD Tech have not published their relevant information. These latter two companies are expected to gain their licenses soon.

TD HSDPA is an important technology that is used by TD-SCDMA to increase the speed of downloading capacity and data services. It is applicable for high-speed downlink data services such as online order programs, real-time news and live broadcasting of sports.

Friday, March 14, 2008

WiMAX Telecom plans to kick off service in 2Q-3Q08

14 March 2008
WiMAX Telecom, a WiMAX licensee for the northern region of Taiwan, plans to kick off its WiMAX service at the end of the second quarter or early in the third quarter this year, according to company president Teddy Huang.
WiMAX Telecom will complete the installation of its first-phase WiMAX infrastructure with 100 WiMAX base stations in early June, enabling the firm to begin trail operations, Huang noted.
By the end of this year, the company plans to increase the number of its base stations to 200-500, while the number of its WiMAX service subscribers is expected to reach 30,000, Huang projected.
WiMAX Telecom also plans to expand its capital from the current NT$1 billion (US$32.7 million) to NT$1.5 billion in the near future, and it welcomes equity investments from strategic partners such as Intel, Huang stated.

Tecom lands US$60 million in orders for WiMAX base stations and related products

14 March 2008
Taiwan-based telecom equipment maker Tecom has so far received orders worth US$60 million for WiMAX base stations and base station-related products, including remote radio heads and outdoor modems, according to company chairman CK Liu.
In addition, Tecom will supply about 50% of the 200-500 WiMAX base stations to be installed by Taiwan-based WiMAX licensed operator, WiMAX Telecom, in 2008, Liu noted. Tecom is a major shareholder of WiMAX Telecom, holding a 44.3% stake in the operator.
Tecom will also continue to develop WiMAX CPE products, including WiMAX and WLAN/WiMAX dual-mode handsets, Liu indicated.
With more than 200 WiMAX operators around the globe already beginning to offer WiMAX services, the WiMAX-related industry is expected to experience robust growth in 2008, Liu asserted.

Taiwan market: Nokia launches high-end 8800 Sapphire Arte

14 March 2008
Nokia on March 13 launched its most expensive handset, the 8800 Sapphire Arte, in Taiwan with a price tag of NT$53,800 (US$1,758). The 3G-enabled device is decorated with leather, stainless steel and diamonds and features a 3.2-megapixel camera.
Nokia launched a total of 33 handsets in Taiwan last year and plans to offer a similar amount of new models in 2008, with over 50% of the new handsets supporting 3G technology, according to CK Cherng, general manager of Nokia Taiwan.
Sales of 3G handsets now account for about 40% of total handsets sold in the Taiwan market compared to 30% at the end of last year, stated Cherng, asserting that sales of 3G handsets will accelerate in the rest of the year.

Thursday, March 13, 2008

LG aims to ship two million handsets in 2008; Arima to be direct beneficiary

13 March 2008
LG Electronics has said it is aiming to grow its handset sales contribution in 2008, and Arima Communications, the OEM partner of LG, should be the direct beneficiary of the move.
During a March 12 event to launch new handsets in Taiwan, Finsen Chen, LG president of telecom business unit, Taiwan, said the company aims to grow its handset sales contribution by 7-8 percentage points on year in 2008, up from 24% in 2007. As for the Taiwan market, LG aims for a handset sales amount of US$100 million for the year.
Arima, which has already secured OEM orders for three 2.5G handsets from LG, is believed to be the direct beneficiary of the aggressive sales plans. Industry sources estimate that LG is likely to ship a total of two million handsets in 2008. The sources added in saying that Foxconn International Holdings (FIH) also produces another 2.5G handset for LG.
In addition to handsets supporting Symbian and Windows Mobile platforms, LG said it is closely working with Google to develop Android-based handsets. Chen remarked in saying that the company will introduce a Android handset to the Taiwan market during late 2008 to early 2009 if the company sees demand for the platform.
On a separate note, LG introduced five new handsets to the Taiwan market: the KS20, KF600, KF510, KP215 and KP320, of which, the KP320 is produced by Arima.

Sony Ericsson invites Compal Communications to bid for 2009 low-cost handset orders, says paper

13 March 2008
Sony Ericsson has invited Compal Communications to participate in a bidding for orders of five ODM handsets, including low-cost and mid-range models, to be launched by the vendor in 2009, according to a Chinese-language Commercial Times report. Sony Ericsson switched most of its low-cost ODM orders from Compal to Chi Mei Communication Systems (CMCS) in the second half of 2007, the paper noted.
Compal is emerging, once again, as a potential supplier for Sony Ericsson now that CMCS has already received 2009 orders for 30 million ultra low-cost handsets from Motorola, while Arima Communications, another ODM handset maker for Sony Ericsson, is reluctant to accept orders for low-cost handsets, the paper said.

HTC ties up again with Synnex to promote handset sales

13 March 2008
High Tech Computer (HTC) has tied up again with Synnex Technology International to increase handset sales in the Taiwan market, the companies announced on March 12.
HTC suspended its ties with Synnex following its acquisition of Dopod International in June 2007 and began to cooperate with Senao International, now a subsidiary of Chunghwa Telecom (CHT), to promote HTC handsets in Taiwan.
With the resumption of cooperation with Synnex, HTC aims to expand the number of sales outlets for its handsets in the local market to 1,500-2,000 in a short period of time, from the current 1,000, according to Jack Tong, vice president of HTC, Asia Pacific.
To begin with, HTC and Synnex will jointly launch a GPS PDA phone, the P3470, in Taiwan, said Tong, who noted that HTC also plans to launch the PDA device in the major markets in the Asia-Pacific region.
HTC aims to ship two million handsets in the Asia Pacific (including China but excluding Japan) in 2008 compared to one million units in 2007, according to market sources familiar with the company's sales plans.

Wednesday, March 12, 2008

China-based ZTE aims to become a global top-five handset vendor

12 March 2008

China-based ZTE aims to become one of the top-five handset vendors in the global market within five years after shipping about 30 million handsets in 2007, according to sources at the Taiwan handset industry.
The sources, citing data from Gartner, pointed out that ZTE's handset shipments accounted for 1.2% of the global market in the fourth quarter of 2007, ranking as the world's seventh largest handset vendor.
ZTE has projected handset sales will account for 50% of its total revenues by 2012, compared to 20% in 2006 and 25% in 2007, the sources quoted an internal company estimate as saying.
To utilize its cooperation relationships with a number of telecom services providers around the globe, ZTE also plans to launch own-brand smartphones and multi-mode handsets to boost sales, in addition to current entry-level handsets, said the sources, noting that over 70% of the 30 million handsets ZTE shipped in 2007 were distributed by its worldwide telecom partners.
There are market rumors stating that ZTE is likely to acquire the handset unit of Motorola.

Demand for handsets in China expected to increase 15% in 2008

12 March 2008

Due to falling shipments of MediaTek handset chips in the fourth quarter of 2007, chip makers have been conservative about demand for handsets in the China market. However, industry sources recently noted that Nokia expects demand for handsets in the China market to increase about 15% this year, and that handset makers have not faced any inventory problems.

While heavy snowfall in late January did postpone handset demand partially, it also made consumers realize the importance of handsets, which should help contribute to increased shipments, China handset makers pointed out.

Demand for handsets in China totaled 250 million units in 2007, the sources indicated, making China's handset market the second largest in size after the US market.

IC design houses such as MediaTek, Elan Microelectronics, Richtek Technology, Global Media Technology, and Pixart Imaging would benefit from growing demand for handsets in the China market.

Meanwhile China's white-box handset makers are also determined to increase exports, and an increasing number of makers are already enjoying strong sales performance in Southeast Asia.

Sunday, March 9, 2008

China Mobile Handset Market Analysis, Q2 2008

Sept. 3, 2008
DUBLIN, Ireland, Sep 03, 2008 (BUSINESS WIRE) -- Research and Markets ( http://www.researchandmarkets.com/research/d71610/china_mobile_hands) has announced the addition of EJL Wireless Research's new report "China Mobile Handset Market Analysis Q2 2008" to their offering.
EJL Wireless Research announces its second quarter 2008 China mobile handset production and shipment analysis report. Shipments of handsets into China for the second quarter decreased by 16.4% when compared to the first quarter of 2008. The China mobile handset analysis reports are issued on a quarterly and annual basis and provide a unique perspective on the production and sales of GSM and CDMA mobile handsets within the Chinese market. Major handset vendors analyzed include: Changhong, Haier, Huawei, Lenovo, LG, Motorola, Nokia, Samsung, and ZTE. "Nokia continued to dominate the GSM and overall handset market in China while Samsung moved past Motorola in GSM shipments to become the second largest vendor. Within the CDMA market, Huawei leapt into the top supplier position after having only entered the market in Q1 of 2008" says founder and President, Earl Lum. Demand for Motorola GSM and CDMA handsets in China continued to show weakness. GSM shipments have dropped nearly 75% in volume on a quarterly basis from 2006 levels without any signs of a recovery.
"Domestic Chinese handset suppliers such as Huawei and ZTE are poised to dominate the CDMA handset market going forward but remain at a significant disadvantage in the GSM market as foreign vendors captured 75% market share in Q2," says Lum.
This report presents an analysis of the Chinese handset market for the second quarter of 2008 and includes the following handset suppliers:
Nokia
Samsung Electronics
Motorola
Lenovo
LG
Haier
Huawei Technologies
Changhong Electric
ZTE

Wednesday, March 5, 2008

Internet communication device makers forecast revenues to drop 1-3% in 1Q08

5 March 2008

With the exchange rate of NT to US dollars having increased to 30.95, most Internet communication device makers expect revenues will be affected by around 1-3% in the first quarter of 2008, while the impact on profits is still unclear.

D-Link has calculated that every one cent increase in the rate of NT dollars will lead to an approximate 0.3% affect on revenues. With the NT dollar gaining around three cents in recent time, the company's revenues have taken a 0.9% hit. However, since the company takes shifting exchange rates into account, it will not revise its earlier guidance that first quarter 2008 revenues are expected to drop sequentially between 5-10%. D-Link added that it is confident profits will not suffer from losses due to the exchange rate.

Gemtek Technology pointed out that its revenues will be affected by around 3%, while profits will be dependent on the exchange rate at a later time. The company expects its first quarter of 2008 gross margin will at least maintain the same as the previous quarter.

Although Cameo Communications has not made any predictions over its first quarter performance, the company expects the delayed shipments from January to February due to the heavy snows in China will help its February revenues surpass January's NT$835 million (US$27.02 million), and they may even surpass NT$900 million.

Gemtek also pointed out although the dropping exchange rate has put pressure on its revenues and profit, client demands to drop pricing have been eased a little after negotiations over the falling exchange rate.

ICT to evolve towards TIME, says Ericsson Taiwan president

5 March 2008

Viewing that companies like Google and Apple Computer are starting to encroach into the communications sector, the existing industrial chain of information and communication technology (ICT) will develop into a complicated ecology made up of telecom, Internet, media and entertainment (TIME) industries, according to president Stefan Johansson of Ericsson Taiwan at a press conference on March 4.

Telecom carriers are facing increasing competition from other industries and they have to integrate resources or seek cooperation as well as minimize operating costs through IMS (IP multimedia subsystem) platforms, Johansson indicated.

As for the development of the global telecom market, voice, access to the Internet and mobile TV will be major applications of mobile communication networks while fixed networks will be used mainly to access the Internet and IPTV, Johansson pointed out. Although Ericsson does not supply WiMAX base station equipment, the company will provide other solutions related to WiMAX, Johansson noted.

Qisda reportedly lands ODM handset orders from Motorola

5 March 2008


Taiwan-based Qisda has received ODM handset orders from a first-tier handset vendor with shipments to begin in the fourth quarter of this year, company president Hsiung Hui was quoted by the Chinese-language Commercial Times as saying at an investors conference. The paper indicated that Qisda most likely secured the ODM orders from Motorola.

The selection of Qisda by Motorola would have been due to Qisda's previous experience in the development of customized handsets for telecom services providers in Europe where Motorola is trying to push up the ratio of handsets sold through telecom operators, the paper noted.

In other news, Qisda posted after-tax profits of NT$4.77 billion (US$154 million), or NT$3.11 per share, in 2007, according to a company filing with the Taiwan Stock Exchange (TSE). The company plans to deal out dividends of NT$1 for 2007, including NT$0.10 in cash and NT$0.90 in shares.

Monday, March 3, 2008

Acer acquires Taiwan smartphone maker E-Ten

3 March 2008

Acer, the world's third largest PC vendor, has signed an agreement to buy handheld device maker E-Ten Information Systems of Taiwan.

The acquisition will put Acer in the position to market and further develop a range of handheld devices, including smartphones and GPS devices. E-Ten has developed and sold several smartphone models over the past several years, including its Windows Mobile 6.0-based Glofish smartphone with GPS (global positioning system), in addition to other handheld electronic devices such as GPS devices and pocket PCs.

The deal is an all-stock transaction valued at NT$9 billion (US$291.3 million). Acer is offering to exchange one share of its stock for every 1.07 shares of outstanding E-Ten stock to pay for the deal.

The boards of directors at both companies have already approved the deal, but they still face shareholder votes and approval by government regulators.

The companies expect the deal to close in the third quarter of this year.

Acer cited mobility products as the main reason for the purchase, especially smartphones.

"The acquisition of E-Ten will allow Acer to play a key role in the development of the dynamic, fast-evolving market of smart handheld devices as well as ultra mobile devices in the future and will help bring Acer's cutting edge mobile solutions to an even wider audience," Acer said in a statement.

The E-Ten deal follows a string of acquisitions by Acer, including the purchase last year of PC maker Gateway and the recent deal to buy Packard Bell, the European electronics maker.

iPhone used less for talk, more for Web and music, says iSuppli

3 April 2008
US iPhone owners are spending their time enjoying all its capabilities – voice, data communications and multimedia entertainment – rather than exclusively using it for traditional voice calls, according to a latest consumer survey by research firm iSuppli.
Owners of all types of mobile handsets use their phones for voice communications 71.7% of the time, according to research from iSuppli's ConsumerTrak survey of US residents. In contrast, iPhone owners spend just 46.5% of their time with the product engaged in voice calls.
US consumers said they spent 12.1% of their iPhone usage time accessing the Internet, a stark contrast with 2.4% for all mobile phones on average. Furthermore, iPhone owners spent 11.9% of their usage time listening to music or other audio, compared to just 2.5% for all mobile handset users.
"This usage pattern shows Apple has succeeded in producing a true convergence product that consumers like to use for multiple purposes," said Greg Sheppard, chief development officer for iSuppli. "Apple has come as close as anyone to achieving a balanced convergence in mobile-handset features and usage."
It's a phone, too
Even before Apple released the iPhone, everyone anticipated it would integrate the mobile phone's voice communications capability with the iPod's audio and video playback functionality. However, Apple has also worked to tailor and promote the iPhone as a device that makes Internet access pleasant and productive, and more like using a computer, according to iSuppli. The large multi-touch screen, ergonomic user interface and Wi-Fi connection, make accessing the Internet something people want to do more with a device like the iPhone, the research firm claimed.
Although iSuppli's research indicates smartphones from HTC are used more than the iPhone on a percentage basis for surfing the Web, the iPhone has the most volume and market impact. Google and Bank of America recently commented on how the rapid rise of traffic from iPhone owners is forcing them to modify their support of mobile Internet activities.
Feeling used
iSuppli's ConsumerTrak survey revealed iPhone users also spent more time emailing than all users on average, with owners spending 10.4% of their time on this task, as opposed to 2.8% for all mobile-phone subscribers. In spite of having only limited corporate IT support so far, the speed (via Wi-Fi) and ergonomics of the iPhone arecompelling users to access their personal email more frequently.
iPhone users are no different from anyone else when it comes to text messaging, as 15% of their time is spent on this activity, according to iSuppli.