Friday, September 26, 2008

MStar looks to challenge MediaTek in white-box handset baseband chip market

2008/9/26
According to market watchers, Taiwan IC design house MStar has shipped handset baseband chips to China white-box handset customers priced almost 30% lower than MediaTek's chips. In addition, MStar is also planning to introduce multimedia chips recently, which may affect MediaTek's margins in the future.

Thursday, September 25, 2008

China Mobile Seeking Cut-Down Version of Apple's iPhone

China Mobile is expected to officially launch the Apple iPhone on its network shortly - but with some of the functionality removed to comply with Chinese regulations. The South China Morning Post, citing a report from the Daiwa Institute of Research said that the 3G and Wi-Fi services would be disabled on the Chinese model.Daiwa analyst Calvin Huang said that Taiwan Hon Hai Precision Industry, which is responsible for assembling iPhone products for Apple, is waiting for verification from the mainland to ship the phone without W-CDMA and Wi-Fi functions.
As China Mobile is widely expected to have to build outs its eventual 3G network using the Chinese developed TD-SCDMA format, disabling the 3G functionality would make it less appealing to users who might buy the handset and unlock it to be used on the expected W-CDMA network from China Telecom.
"Apple shouldn't customise a model of iPhone for the mainland market, given that it only provides a standardised product to operators around the world," Frederick Wong, a BNP Paribas analyst told the newspaper - although making the unit compatible with the Chinese language would be quite a customisation anyway.
China Mobile has been in on/off talks with Apple ever since the iPhone was launched. The talks broke down in January but resumed again in July.
"The talks with Apple to launch the iPhone device in China have resumed because Apple is not insisting on revenue-sharing anymore," China Mobile Ltd. spokeswoman Rainie Lei said at the time.
According to figures supplied by China Mobile to research firm In-Stat earlier this year, there were over 400,000 unlocked Apple iPhones being detected on its network.
In-Stat says that it has never doubted that the iPhone will achieve greater success than iPod in China if Apple teams with China Mobile to launch its Chinese version. There are two reasons. Firstly, different from the US where the smartphone market is fairly limited, appealing primarily to business users, The smartphone market in China, though, is an entertainment-oriented individual consumer market. The main reasons that Chinese mobile users purchase smartphones include entertainment (such as music players, cameras and video) and to access mobile Internet applications (such as IM, e-book, and games).
The company also estimates that 20% of handsets sold in China in 2007 cost more than 4,000 RMB (US$533). In another words, there are an estimated 28 million potential users for the iPhone in China.
On the web: South China Morning Post

Research In Motion's Profit, Forecast Miss Estimates (Update3)

Sept. 25 (Bloomberg) -- Research In Motion Ltd. forecast third-quarter profit that missed analysts' estimates after boosting marketing to ward off Apple Inc.'s new iPhone and introduce handsets. The shares fell 21 percent in late trading.
Profit will be 89 cents to 97 cents a share on sales of as much as $3.1 billion, Research In Motion said today in a statement. Analysts predicted 99 cents in profit on average and revenue of $2.96 billion, according to a Bloomberg survey.
Research In Motion's earnings forecast missed projections for the second straight quarter as it readied four new phones. The cost of promoting new models contributed to $379.6 million in sales and marketing costs last quarter, almost double the year- earlier amount. The company also had to delay the U.S. release of its Bold product, which will challenge the iPhone 3G.
``The cost of selling and launching all these platforms is much higher than what people thought,'' Pablo Perez-Fernandez, an analyst with Global Crown Capital in San Francisco, said in an interview. He recommends buying the shares, which he doesn't own.
Second-quarter net income rose 72 percent to $495.5 million, or 86 cents a share, from $287.7 million, or 50 cents, a year earlier, the company said. Analysts predicted a profit of 87 cents on average for the period, which ended Aug. 30. Revenue climbed 88 percent to $2.58 billion, compared with a projection of $2.59 billion from analysts.
Shares Plunge
Research In Motion, based in Waterloo, Ontario, fell $20.06 to $77.47 in extended trading after closing at $97.53 on the Nasdaq Stock Market. The shares have dropped 14 percent this year.
The company is working on a touch-screen phone and an update to its Curve consumer model, in addition to the Bold and a flip- phone version of its Pearl, according to Mike Abramsky, an analyst at RBC Capital Markets in Toronto.
Some of the new phones aren't as profitable as older models, co-Chief Executive Officer Jim Balsillie said on a conference call today. The Bold, for example, has a brighter screen, making it more expensive to produce.
``It's difficult to pass on all these costs to customers,'' Balsillie said.
That will push down gross margin, the percentage of sales remaining after deducting production costs, to 47 percent in the current quarter from 50.7 percent, Vice President Edel Ebbs said on the call. That measure may drop further in the fourth quarter, she said.
Rising Costs
Sales expenses in the current quarter may climb between 10 percent and 11 percent from the previous period, Ebbs said.
Research In Motion added 2.6 million users last quarter, compared with a 2.64 million estimate from Perez-Fernandez. The company expects to add 2.9 million users this quarter, missing Perez-Fernandez's projection of 3.09 million. Research In Motion currently has about 19 million BlackBerry users.
The company, which once focused mainly on corporate users, is offering cheaper phones as it competes for consumers with Apple's $199 iPhone. About 40 percent of Research In Motion's customers are now consumers, while the rest are business customers. The U.S. accounts for more than half of the company's annual revenue.
In the past quarter, Verizon Wireless reduced the price tag on the BlackBerry Pearl to $79 from $99.
Apple, meanwhile, is going after corporate users with features such as access to office e-mail. Based in Cupertino, California, Apple introduced the iPhone 3G in July, selling a million units in the product's first three days. The original iPhone, which ran on a slower network, debuted in June 2007.
Wireless carriers are promoting so-called smart phones, devices with e-mail and Web-browsing features, as revenue from traditional land-line service declines. Research In Motion increased its share of the U.S. smart-phone market to 53.6 percent in the second quarter from 44.5 percent in the first, according to Framingham, Massachusetts-based research firm IDC.
To contact the reporter on this story: Vivek Shankar in San Francisco at vshankar3@bloomberg.net

China Mobile may offer Android handsets through cooperation with HTC, say Taiwan makers

2008/9/25
China Mobile Communications (China Mobile), the largest operator of mobile communication services in China, may take the initiative to offer Android handsets in the China market through outsourced production by Taiwan-based High Tech Computer (HTC), the maker of the T-Mobile G1, according to industry sources in Taiwan.

Android and Windows Mobile smartphones are complementary, says HTC

2008/9/25
Android and Windows Mobile handsets can complement each other in the market, offering consumers and telecom service providers more choice, according to John Wang, CMO, High Tech Computer (HTC), who added in saying the company will continue to simultaneously develop smartphones based on the two platforms.

Wednesday, September 24, 2008

Sony Ericsson boss says studying Android system

LUND, Sweden (Reuters) - Sony Ericsson is studying Google's Android mobile operating system, but was not able to embrace it yet, President Dick Komiyama said on Wednesday.
"We are certainly studying this opportunity, although we're not in a position to do this at this moment," Komiyama told journalists at a media event in the southern Swedish city of Lund, where the company has a research and development site.
"We should look at this application," he said. "We are certainly interested."
Android is an open source platform for designing mobile devices which Google (GOOG.O: Quote, Profile, Research, Stock Buzz) says will encourage innovation by allowing outside software developers to tinker with the system and create better mobile programs and services.
However, Komiyama said Sony Ericsson was already part of the Symbian Foundation, a group which since June has attracted some 40 companies and gives developers free access to its software.
Deutsche Telekom AG's T-Mobile unveiled on Tuesday the first cellphone that uses Android software. The phone is being touted as Google's answer to the iPhone. The G1 phone, made by HTC Corp, has a touch-sensitive screen, a computer-like keyboard and Wi-Fi connections.

Thursday, September 11, 2008

T-Mobile Planning "Google Phone" Launch at End of Sept - Report

T-Mobile USA is reported to be planning a launch of its first Google Android phone within just a few weeks. Sources told the Reuters news agency that the mobile operator would make an announcement in New York City, and said that Sept 23rd was the probable date for the press conference.

There had been reports that the phone would be delayed - but T-Mobile has said that it is still on target for a launch in (or by) October.

"T-Mobile is on track to bring an Android-based phone to market in the fourth quarter," said a T-Mobile spokesman earlier this month. "We haven't announced any specific details about the Android phone at this point and don't comment on rumors."

T-Mobile did not comment when Reuters contacted them today.

The touchscreen based smartphone will be supplied by Taiwan's High Tech Computer, or HTC, a company which has traditionally focused on Windows Mobile based handsets. There were unconfirmed rumours last month that Sony Ericsson is in talks to buy HTC.

Google is also widely expected to announce improvements to the Android platform in the next few weeks - including a new software development kit (SDK) following complaints about the current platform.

On the web: Reuters

Posted to the site on 11th September 2008

Nokia Expects to Support China's TD-SCDMA Standard

11 Sept 2008

Nokia is planning to support all three of the proposed 3G standards in China by releasing handsets for each of the networks. It is anticipated that China Mobile will use the Chinese developed 3G standard, TD-SCDMA, while China Telecom will use CDMA2000 and China Unicom will use WCDMA.
Nokia's vice-president of Greater China sales, David Tang told the South China Morning Post that the company aims to retain its number one position in the market.

As China Mobile has a market share of around 70%, supporting the TD-SCDMA format is essential for any handset vendor seeking to retain their market position.

"Nokia supports the development of TD-SCDMA. We will have the handsets in the market when the service becomes active," said Mr Tang in an interview at Nokia's Green Campus headquarters in Beijing.

Although Nokia does not currently have any TD-SCDMA based handsets, the company is a 49% holder in a Chinese joint venture, Potevio(中国普天 www.potevio.com ) with China Putian to develop network infrastructure based on the 3G standard, so it has access to the necessary technical expertise. Potevio was set up in 2005 and has also been the major supplier of equipment to China Mobile's TD-SCDMA trial networks in Tianjin and Qinhuangdao.

Nokia sold just over 70 million mobile phones in China during 2007, giving it a 42% market share.

On the web: South China Morning Post

Posted to the site on 11th September 2008

Wednesday, September 10, 2008

Velocity Mobile Announces Availability of Its First Touchscreen Phone

Velocity Mobile has announced the retail availability of its first touchscreen phone, the Velocity 103. The Velocity Mobile 103 combines Windows Mobile 6.1 Professional, an Odyssey Interface, Velocity Over The Air updates (Vota) and will ship by the end of September.

Velocity 103
Velocity Mobile, in collaboration with Inventec, designs and engineers 2G and 3G mobile devices and data cards based on Qualcomm and Samsung platforms.

"Consumers these days are demanding more from their phones. Our research tells us that people want experiences, not applications and functions," said David Hayes, president and managing director, Velocity Mobile. "Velocity Mobile has brought together some of the greatest minds and best of breed partners in the industry to deliver positive experience and value to consumers."

Velocity Mobile's core leadership team collectively has nearly forty years' experience in innovative mobile engineering, design, sales and marketing, and is working in collaboration with Inventec Corporation, one of the world's top three original design manufacturers (ODMs) for notebook computers.

Posted to the site on 10th September 2008

Sony Ericsson Announces Xperia Launch Date

Sony Ericsson has finally confirmed the launch date for its first Windows Mobile phone - the Xperia X1. The phone will be initially available to consumers in the UK, Germany and Sweden from the 30th Sept and available in other markets across Europe, Asia and Latin America throughout Q4 2008.

Availability dates for North America, China, Australia and Russia along with other countries not mentioned above will be announced by local markets in the coming months.

"We are extremely pleased with the innovation and new user experience we have created for consumers on the Xperia X1," said Rikko Sakaguchi CVP and Head of Creation and Development at Sony Ericsson.

The Xperia X1 is the first product under Sony Ericsson's new premium sub-brand Xperia.

Posted to the site on 10th September 2008

Tuesday, September 9, 2008

Sony Ericsson Looking at Unlimited Music Downloads Service

Sony Ericsson is reported to be working on a mobile music service which would offer handset purchasers an unlimited download of music tracks. The move is expected to compete directly with the similar platform from Nokia which is just launching in the UK and offers 12 months worth of unlimited downloads with selected new handsets.

The Financial Times reported that the company is in talks with all the major music labels about a product launch prior to the end of this year.

Warner Music, Universal Music and Sony BMG are all suppliers to the Nokia service - although Sony, the 50:50 joint owner of Sony Ericsson recently took full control of the BMG music label.

Dan Cryan, an analyst at Screen Digest, told the newspaper that competition had encouraged Sony Ericsson to launch a product it had once rejected as devaluing music.

“Sony Ericsson’s market share is shrinking,” he said. “If everybody is launching 'all you can eat’ services, which make handsets more attractive to end users and to operators, they don’t have much choice, especially when so much of their brand value is built around the Walkman.”

On the web: Financial Times

Posted to the site on 9th September 2008

Sony Ericsson Shows Off 3G Slider Phone

Sony Ericsson has shown off a new 3G slider phone - the G705. The handset comes with built in aGPS, Wi-Fi, HSDPA and 3.2 megapixel camera.
"The G705 is ideal for those who need a bit of help organising their busy life." said Catherine Cherry, Global product marketing manager at Sony Ericsson. "This life-enhancing phone has everything you need to keep track of your daily activities and is perfect for keeping in touch with friends. It also allows you to stay fully up-to-date thanks to the full HTML browser, email support, and desktop RSS feeds - all delivered at turbo 3G speeds."

Also announced today is the G705u, the first UMA enabled phone from Sony Ericsson. UMA enables users to seamlessly roam between the mobile network and local area networks thanks to GSM/Wi-Fi dual capabilities. The G705u is exclusive to the operator Orange in its territories.

In addition, Sony Ericsson is pleased to today announce a partnership with Google meaning that YouTube will be integrated into selected upcoming models from Sony Ericsson. This capability will allow users to instantly download and upload video directly from their phone to YouTube. The G705 will be YouTube compatible and further models will be announced at a later stage.

The G705 and G705u (exclusive to Orange) support GSM/GPRS/EDGE 850/900/1800/1900 and UMTS/HSDPA 2100. G705 will be available in selected markets from early Q4.

The G705 will also be available in a version for American markets supporting networks GSM/GPRS/EDGE 850/900/1800/1900 and UMTS/HSUPA 850/1900/2100. G705 for American markets will be available early Q1 2009.

Posted to the site on 9th September 2008

SIM Technology eyes TD-SCDMA phone tenders

Frederick Yeung
Sep 09, 2008
SIM Technology Group, a contract manufacturer of mobile telephones on the mainland, expects to grow its market share as it goes after the tenders for the next phase of TD-SCDMA 3G phones later this year, according to chief financial officer Richard Chan Tat-wing....