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Friday, May 30, 2008
Linux to Drive Cell Phone Industry
"Linux has begun to open doors for handset manufacturers, developers and mobile operators. Strategy Analytics predicts that the development of a single standard will eventually position Linux to shape the mobile industry, expanding its global ecosystem of developers," says Mehar Zulfikar, Analyst, Handset Component Technologies. She adds, "Linux will provide opportunities for mobile operators to influence the handset market by giving them significant control on development."
Stuart Robinson, Director, Handset Component Technologies adds, "Although Linux may be in future, Symbian and Microsoft currently maintain the edge over Linux. The vision of a single standard Linux OS is still a long way off."
Sunday, May 25, 2008
Mobile phone users top 3.3 billion
The number of mobile phone users worldwide soared to over 3.3 billion by the end of 2007, equivalent to a penetration rate of 49 per cent, the International Telecommunications Union said in a report this week.
Africa showed the strongest gains over the past two years and more than two thirds of all mobile subscribers were from developing countries by the end of 2007, the ITU said.
This is "a positive trend that suggests that developing countries are catching up," the report said.
Mobile subscription growth stood at 39 per cent annually in Africa between 2005-2007, and 28 per cent in Asia over the same period.
India and China added 154 million and 143 million new subscribers respectively.
The global annual average growth rate stood at 22 per cent, the ITU said.
Mobile phones are eclipsing traditional fixed lines and in Africa they account for nearly 90 per cent of all telephone subscribers, the report said.
"The continued growth in the mobile sector is matched by no-growth in the fixed-line sector. Fixed telephone penetration has been stagnating at just under 20 per cent globally for the last years and growth has been below one per cent between 2005 and 2007," it said.
While developing countries have made great strides in mobile growth, a significant 'digital divide' remains for internet use and particularly the availability of broadband connections, it noted.
High-income countries account for 66 per cent of all fixed broadband subscribers although they only represent 16 per cent of the world's population, while developing countries have just one per cent of fixed broadband users but 38 per cent of the global population.
"Low-income countries, where broadband access remains very low, risk falling behind in an area that is particularly important in delivering innovative applications and services," the ITU warned.
Some countries have made progress and the ITU highlighted Chile, Senegal and Turkey as states where almost all internet subscribers have now gone high speed.
"For more people to benefit from the potential of broadband and the applications that it can deliver, governments need to do their share to ensure that high-speed technologies become more accessible as well as more affordable," the ITU urged.
Wednesday, May 21, 2008
China handset-design house Wingtech aims to become ODM handset maker
China-based handset-design house Wingtech Group has emerged as the top handset solution vendor in China, and the company now aims to become an ODM handset maker, according to sources at the company and in the market.
Wingtech saw its shipments of handset solutions increase by more than four fold from four million units in 2006 to 18 million units in 2007, outpacing those from previous leaders, including TechFaith Wireless, Longcheer Group and SIM Technology, said market sources.
For 2008, the company expects its shipments of handset solutions, which comply with a number of standards, including GSM, CDMA, PHS and TD-SCDMA, will top 50 million units, indicated the company sources.
In addition to cooperating with China-based handset chipset vendor Spectrum Communications, Wingtech has also established business relations with other chipset vendors, including NXP Semiconductors and Marvell Technology, the sources noted.
In order to boost its profitability, Wingtech has decided to transform itself into an ODM handset maker by investing US$70 million to build a handset production base in Jiaxing, Zhejiang Province in China, said the sources, indicating that the production base aims to turn out 30 million handsets a year initially.
Tuesday, May 20, 2008
HTC second largest smartphone vendor in India
High Tech Computer (HTC) has become the second largest vendor of smartphones in India, trailing after only Nokia, according to the latest data available from market research company Canalys.
While Nokia is enjoying a 90% share in the smartphone segment in India, other major vendors, including HTC, RIM (Research in Motion), Motorola and Sony Ericsson, each hold a single-digit share.
In India, HTC is cooperating with Bharti Airtel to promote the HTC Touch smartphones and the company also has joined hands with Reliance Communications in sales of CDMA handsets.
China-based Datang Telecom to re-enter handset market, say sources
20 May 2008
It looks like a logical guess. TD-SCDMA is still a island so far without tier 1 handset manufacturers. China-based companies do have the advantage of close to the market. Datang is also the key technology player too.
China-based Datang Telecom Technology and Industry Group has decided to re-enter the China handset market with plans to launch 15 handsets before the end of 2008, according to market sources in China and Taiwan.
Datang will focus on TD-SCDMA/GSM and GSM/PHS dual-mode handsets as well as GSM handsets, the sources said.
Since the Datang Group is currently the largest vendor of solutions for TD-SCDMA handsets and the company also holds a number of patents for core TD-SCDMA technology, Datang's move will place itself in direct competition with its handset clients, the sources noted.
Datang has signed over 35 licensing contracts with 25 terminal-end makers for TD-SCDMA devices, according to company data.
Beijing Tianyu largest domestic-brand handset vendor in China
China-based Beijing Tianyu Communication Equipment has outperformed its domestic rivals, including Lenovo, Amoi, TCL and Ningbo Bird, to become the largest domestic-brand handset vendor in China, according to data available from market research firm CCID Consulting.
Beijing Tainyu also was ranked as the fourth largest handset vendor in China in the first quarter of this year with a 5% market share, trailing after only Nokia, Samsung Electronics and Motorola, the data showed.
Other China domestic-brand handset vendors, including Gionee, Changhong and Telsda, have also emerged as major vendors in the China handset market, indicated CCID, noting that Gionee is currently among the top-ten handset vendors in China with a 2.1% market share.
Adopting a flexible channel strategy by giving more profits to channel operators has helped emerging handset vendors make more inroads into the handset market in China, according to sources in Taiwan's handset industry.
Although current major vendors such as Lenovo, Amoi and Ningbo Bird are still among the top-ten handset vendors in China, market shares of those vendors actually are declining, the sources noted.
Sales of handsets in China expanded by 4% on year to reach 43.05 million units in the first quarter of this year, with foreign-brand vendors combined taking up a 65% share, down 2.5 percentage points from a year ago, CCID data shows.
Distributing NXP ICs is "easy": Q&A with NXP Asia Pacific sales and marketing VP TL Chow
Soon after meeting with distributors in the Asia Pacific region, NXP Semiconductors Asia Pacific sales and marketing vice president, TL Chow met with Digitimes and shared his comments about doing business with NXP, as well as how NXP differentiates itself from other semiconductor vendors.
Q: Distributors have long been stressing the importance of "one-stop shopping," do you think this concept is suitable for channel management in the future?
A: The advent of the one-stop shopping concept stems from the pursuit by customers for a complete solution. But I think it is time to revise this concept.
I think a very key strategy for channel management is differentiation. Distributors must provide customers with added value as customers do not necessarily have to source components from one distributor. They can easily buy different components via the Internet.
Distributors are not playing the role as a "trader" anymore. They have to have the power to perform "design in" for customers. We have a distributor named ZLG in China for the distribution of micro-controller units (MCUs). Since this distributor just distributes MCUs, and has devoted considerable efforts to designing a wide array of solutions for customers, their business model is very successful I think.
Q: How much of NXP's sales will be contributed by distributors? And, how will NXP achieve this goal?
A: About 30% of our sales were generated by distributors in 2007, and I expect the ratio to grow in 2008. Our slogan for distributors are "focus," "engage" and "grow" this year.
In the aspect of "focus," we will establish specialized team to serve big customers such as WPG Holdings. I think this is something that other vendors can hardly do. We will also continue hosting distributors/agents meetings on a periodic basis in key regions in order to strengthen our ties with distributors.
Q: How does NXP differentiate itself from other vendors in terms of product portfolio? And how does NXP motivate distributors to dedicate more focus to marketing NXP products?
A: Global semiconductor companies are narrowing down their differentiation. The key to motivating distributors to dedicate more focus to marketing NXP products is to let them realize that distributing NXP products is "easy" as they do not have to report their distribution status as other vendors request. We do not think many status reports will help business. We aim to offer customized service for every single customer, as well as a proven gross margin.
Q: What kind of support are NXP's distributors looking for from NXP? And what is the biggest challenge that they are now facing?
A: Most of them are looking for more technological support from NXP alongside business growth. We have been very concerned about this issue in the past and we have grown our technological support for these partners when their sales scale expand.
NXP currently has more than 30 distributors in Asia Pacific. We will not necessarily grow the number of distributors in the future but we will either add or reduce the number of distributors by consistent performance reviews.
I think distributors from Taiwan are doing a good job. They help a lot in terms of expanding our sales in the region and our partnership is "easy."
Also, we do value our partnership with China-based distributors, given that the market is huge. According to estimates, about one-fifth of sales have to be made through distributors.
This interview was translated from Chinese.
Wednesday, May 14, 2008
HTC expects Touch Diamond sales to top two million units in 2008
Monday, May 12, 2008
FIH reportedly to forge partnership with China-based Longcheer
Foxconn International Holdings (FIH), the Hong Kong-listed handset subsidiary of Foxconn Electronics (Hon Hai Precision Industry) reportedly is in talks to establish a strategic partnership with China-based handset design company Longcheer Holdings, according to industry sources in Taiwan and China.