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Friday, February 29, 2008
HTC to expand investment in Shanghai plant
High Tech Computer (HTC) has decided to increase investment in its plant in Shanghai, China to US$42.96 million from the original budget of US$15.5 million, the company announced after a recent board meeting.
Wednesday, February 27, 2008
Nokia expected to expand partnerships with Taiwan handset chip solution vendors
Industry source said, that Nokia will grow its component procurement flexibility and proportion, expect that Taiwan-based IC design houses will benefit from the move.
Thursday, February 21, 2008
Taiwan handset makers may produce DVB-SH enabled devices
Taiwan handset makers that have ventured into the development of mobile devices supporting DVB-T and DVB-H standards are likely to also develop devices supporting DVB-SH (digital video broadcasting-satellite services to handsets) technology in the near future now that the DVB-SH broadcast system is expected to enter commercial operations by the end of this year, according to sources in Taiwan's handset industry.
In addition to the main supporter Alcatel-Lucent, the DVB-SH standard has also drawn support from a number of solution vendors, handset makers and telecom operators, including Sagem, DiBcom, UDcast, TeamCast, Abertis Telecom, Eutelsat, SES Astra, and recently from Samsung Electronics and LG Electronics, the sources noted.
US-based ICO Global Communications will enter trial broadcasts through the DVB-SH system in March this year, while other member companies of the supporting camp will also begin a series of field tests starting in the second quarter, indicated the sources.
Companies in the US and France are expected to lead companies in other areas to bring the DVB-SH system into commercial operations before the end of 2008, with Eutelsat and SES Astra of Spain to jointly launch DVB-SH broadcasting programs in the first quarter of 2009, the sources added.
Taiwan-based companies such as High Tech Computer (HTC), E-Ten Information Systems and Gigabyte Communications that have already begun volume production of DVB-T and DVB-H devices will be able to put out DVB-SH products in the near-term, the sources speculated.
China Mobile Eyes Overseas Expansion Opportunities
China Mobile, the world's largest operator by subscriber numbers has announced plans to seek overseas expansion and is considering setting up an MVNO in the saturated European market, along with industry favourite - the emerging markets of Asia and Africa.
Henry Ge, chief representative of China Mobile UK, told the Financial Times that the company would focus on three areas: emerging markets; overseas Chinese customers wanting to keep in touch with home; and "the short-term visiting market", which included travelling business customers and the growing number of Chinese tourists.
Vodafone has built up a 3.3 percent stake in China Mobile over a couple of purchases and has a representative on the company board of directors.
Last year, the China Mobile's unlisted parent company took control of Pakistan based Paktel for US$460 million and announced plans to spend a similar amount on improving the network.
On the web: Financial Times
Wednesday, February 20, 2008
Taiwan market: Sony Ericsson to push sales of 3.5G data cards
Sony Ericsson plans to introduce three 3.5G data cards in Taiwan starting in the second quarter of this year, according to Steve Yeh, president of Sony Ericsson Taiwan.
The lineup will include the MD300 supporting a USB interface, the EC400 supporting ExpressCard and the EC400g supporting GPS technology, Yeh said, noting that Sony Ericsson is now in talks with three to four telecom operators for joint promotion of the MD300.
In addition, Sony Ericsson is expected to launch 10 new handsets in Taiwan in the first half of this year, including the R306 Radio and about three 3.5G handsets, Yeh stated.
Sony Ericsson also plans to introduce the Windows Mobile-based Xperia X1, which will be outsourced to High Tech Computer (HTC), into the local market, with a launch schedule yet to be decided, Yeh revealed.
Brain-reading headset to sell for $299
Hands cramping up from too many video games?
How about controlling games with your thoughts instead? Later this year, Emotiv Systems Inc. plans to start selling the $299 EPOC neuroheadset to let you do just that.
The headset's sensors are designed to detect conscious thoughts and expressions as well as "non-conscious emotions" by reading electrical signals around the brain, says the company, which demonstrated the wireless gadget at the Game Developers Conference in San Francisco.
The company, which unveiled a prototype last year, says the headset can detect emotions such as anger, excitement and tension, as well as facial expressions and cognitive actions like pushing and pulling objects.
The headset will be sold with a game developed by Emotiv, but it can also be made to work with existing PC games, the company said. Users will also be able to access an online portal to play more games, chat or upload their own content such as music or photos.
Emotiv plans to work with IBM Corp. to explore applications beyond video gaming. The "brain computer interface" technology could transform not only gaming, but how humans and computers interact, said Paul Ledak, vice president of IBM's Digital Convergence business.
Source: AP News
Tuesday, February 19, 2008
Taiwan market: Handset sales reportedly total 7.42 million units in 2007
Sales volumes of handsets in Taiwan totaled 7.42 million units in 2007, up 7.5% from a year earlier, according to the Chinese-language Commercial Times, which cited data from Taiwan retail channels.
Handset sales in Taiwan are expected to top 7.5 million units in 2008, with 6.6-6.8 million units to accounted for by six major telecom service providers, the paper quoted sources in the channels as indicating.
Chunghwa Telecom (CHT) will top the purchasing list with a projected volume of 2.4-2.5 million units, followed by Far EasTone Telecommunications (FET) with 1.2-1.3 million units, Taiwan Mobile with 1.2 million units, Asia Pacific Broadband Telecom (APBT) with 1.0 million units, Vibo Telecom with 500,000 units and First International Telecom (Fitel) with 300,000 units, the paper said.
Number of Taiwan mobile phone subscribers tops 24 million in 2007
Taiwan had 24.282 million subscribers of mobile communication services at the end of 2007, according to statistics published by Taiwan's National Communications Commission (NCC). The total number of subscribers consisted of 15.907 million for 2G services, 6.915 million for 3G and 1.46 million for low-power PHS (personal handy-phone system).
The total number of 2G subscribers in Taiwan reached a peak of 25.29 million at the end of August 2003 and then has steadily decreased mainly due to a shift from 2G to 3G services, the NCC pointed out. In 2007, the number of 3G subscribers increased by a monthly average of 290,000, NCC noted.
Chunghwa Telecom (CHT), the largest operator of both 2G and 3G services, expects the number of its 3G subscribers to rise from 2.29 million at the end of 2007 to 3.50 million at the end of 2008, with about one million subscribers to come from its existing 2G users, according to the company.
Sunday, February 17, 2008
China's ZTE in Cooperation Talks with Motorola
China's ZTE is reported to be in talks with Motorola over a wider cooperation - which could presumably spark rumours about a possible merger of the two companies respective handset divisions. Speaking to Reuters, Xiong Hui, a marketing vice president for handsets said that ZTE was looking to deepen its relationship with Motorola.
"We've been keeping in touch with Motorola on a wider cooperation," Hui said through a translator in an interview with Reuters. He did not give specific details about the companies' existing ties or their future plans.
ZTE recently started selling its first handsets in the USA, and has a long term partnership for low-cost phones with Vodafone.
Motorola's handset division has been valued at between US$9-12 billion. Last week, both Samsung and LG denied being interested in taking on Motorola's handset division.
Last week though, Motorola's Chief Executive Greg Brown said at the Mobile Congress World that the company is fully committed to its handset division, so a SonyEricsson style merger with another company might be more likely.
There have also been rumours that Motorola could be in talks with Nortel on a possible merger of their respective network infrastructure divisions. Nortel's current CEO, Mike Zafirovski was Motorola's president and chief operating officer before taking over as head of the Canada-based company in November 2005.
On the web: Reuters
Saturday, February 16, 2008
The Impact of Cell Phones on Grain Markets in Africa's Niger
A new research study by Jenny Aker, an independent PhD candidate at the University of California-Berkeley has looked at the impact of mobile phones on the prices of farm produce in the African country of Niger - which faced serious food shortages in 2005. In theory, the increasing use of mobile phones should have improved distribution efficiency and hence lower the variations in prices around the country. The study set out to see if that was the case.
With an estimated 85 percent of the population living on less than US$2 per day, Niger is the lowest-ranked country according to the United Nations' Human Development Index. The majority of the population consists of rural subsistence farmers, who depend upon rainfed agriculture as their main source of income. Grains (primarily millet and sorghum) are dietary staples, accounting for over 75 percent of food consumption. These commodities are transported from farmers to consumers through an extensive system of markets that run the length of the country, which is roughly three times the size of California.
As grain markets occur only once per week, traders have historically traveled long distances to potential sales markets to obtain information on supply, demand and prices. Between 2001 and 2006 though, cell phone service was phased in throughout Niger, providing an alternative and cheaper search technology to grain traders and other market actors.
To test the predictions of the theoretical model, the researchers use a unique market and trader dataset from Niger that combines data on prices, transport costs, rainfall and grain production with cell phone access and trader behavior. They first exploited the quasi-experimental nature of cell phone coverage to estimate the impact of the staggered introduction of information technology on market performance.
The results provide evidence that cell phones reduce grain price dispersion across markets by a minimum of 6.4 percent and reduce intra-annual price variation by 10 percent. Cell phones have a greater impact on price dispersion for market pairs that are farther away, and for those with lower road quality.
It is worth noting how important this is - as during the 2005 food crisis, areas where food was plentiful had prices some 20% lower than in famine areas, which in such a poor country had a serious impact on the ability of people in famine struck areas to afford to buy staple foods. At the time of the food crisis, only 24 percent of the markets in famine regions had cellphone coverage, as compared to 83 percent of markets in plentiful regions.
As a grain trader operating in Zinder noted, "(With a cell phone), I know the price for US$2, rather than traveling (to the market), which costs US$20."
A factor which should be noted that improved distribution results in fewer surpluses in some regions and shortages in others - which flattens the price difference between markets. So in surplus areas the price rises, and in famine areas - the price falls. This obviously benefits those in dire need in the short term, but there is also a long term economic benefit for the country as a whole as there is more price stability and that makes it easier for families and traders to plan ahead for their financial budgets.
The primary mechanism by which cell phones affect market-level outcomes appears to be a reduction in search costs, as grain traders operating in markets with cell phone coverage search over a greater number of markets and sell in more markets.
The results suggest that cell phones improved consumer and trader welfare in Niger, perhaps averting an even worse outcome during the 2005 food crisis.
Tuesday, February 12, 2008
HTC lands Sony Ericsson Xperia X1 handset orders, says paper
High Tech Computer (HTC) has landed an ODM order from Sony Ericsson to manufacture the company's Windows Mobile-based Xperia X1 handset
Sunday, February 3, 2008
Compal Communications voices concerns over Motorola plans to break up handset unit
Taiwan-based Compal Communications, a major handset OEM maker for Motorola, is concerned that China-based consortiums may eventually take up the handset unit of Motorola after the US vendor said last week it is considering separating the money-losing unit, according to Rock Hsu, chairman of the Compal Group.
The China-based companies might switch the majority of handset orders from Motorola to OEM makers in China if they do take up Motorola's handset unit, Hsu stated.
However, Hsu reiterated that the order adjustment would take 1-2 years and therefore, the planned sale of Motorola's handset unit will not affect Compal's operations in 2008.
Asked if there is the possibility of Compal acquiring Motorola's handset unit, Hsu said the company currently does not have a base to operate a brand product and instead will continue to expand its pool OEM clients.
Friday, February 1, 2008
Giantplus seeing China white-box handset orders rebound
Taiwan-based small- to medium-size LCD panel and LCM maker Giantplus Technology has seen its orders from China-based white-box handset makers rebound in January amid strong demand for the Lunar New Year holidays, according to the company.
The company revealed that nearly 80-90% of its white-box handset customers have started preparing orders and thus Giantplus expects its revenues in January to rebound to around NT$782 million (US$24.2 million), the peak level it generated in November 2007.
Commenting on the recent heavy snows in China, the Taiwan-based maker said its plant in Kunshan did see some impact, with revenues of NT$10 million affected. However, as the plant is going to be offline during the holidays, the affect will not continue, Giantplus stated.
Regarding handset panel inventory, the company stressed there are no problems, except in the 2.4- and 2.8-inch segments, for which the company is preparing more stock.
With the company recently gaining orders from Altek, Giantplus said the move can reduce its risk from paying too much concentration on handset panel development. Demand from digital cameras is the second largest application in the small- to medium size panel market and the company is positive about the market potential, Giantplus pointed out.
Compal Communications aims to ship 60 million handsets in 2008
Compal Communications expects handset shipments to grow 20-25% sequentially to 60 million units in 2008, according to company chairman Ray Chen.
Handset shipments fell sharply to 47.8 million in 2007 due to the decline in performance of Motorola, the major customer of the Taiwan company, according to market sources.
After an organizational reshuffle at its major customer, Compal's operation will gradually rebound in the second half of the year with average selling prices (ASPs) to increase between the second and the third quarters, Chen commented.
As orders are not coming as early as expected, Compal has not begun operations at its new plant in Ningbo, China. Chen noted that the company completed establishment of the plant last year, and official operations will kick off in the second half of 2008.
In response to questions relating to the possibility of setting up a plant in Vietnam, the chairman noted that Compal will not consider any such projects for at least two or three years.
Compal has formed a second business group to focus on 3G and GPS smartphones. The company will begin offering smartphones from the fourth quarter with an annual shipments target of less than one million units, Chen revealed, although shipments will jump in 2009. Compal will still make GPS-based products in the future and WCDMA and EVDO-based 3G phones, but it will focus on the smartphone market, Chen added.
Commenting on the recent heavy snows hitting China, Chen stated that shipments in January will not be affected as the company's Nanjing plant is not far away from the airport. However, Compal has strengthened its material inventory preparations in case of any potential damages. The bad weather may affect demand during the Lunar New Year in China, but this would be only a short-term impact, he added.
The chairman also noted that although the industry is pessimistic over the global economy, the company holds a different outlook, noting that some customers are even increasing orders or preparing shipments in advance due to the situation.
China mobile phone user base tops 547 million in December 2007
There were 547.29 million subscribers of mobile communication services in China as of the end of December 2007, growing by 1.47% on month and by 18.70% on year, according to statistics published by China's Ministry of Information Industry (MII) on January 31.
The number of subscribers at the end of December accounted for 41.6% of the country's population.
Also at the end of December 2007 there were 365.45 million subscribers of fixed telecommunication networks in China.
In December 2007, mobile phone subscribers in China sent 57.02 billion text messages, averaging 3.39 text messages per phone number a day.
China market: Nearly 40 million GSM and CDMA handsets sold in 4Q07
There were 39.96 million GSM and CDMA handsets sold in China in the fourth quarter of 2007, with Nokia, Samsung and Motorola being the top three vendors with a combined market share of 60.2%, according to China-based consulting company Analysys International.
For CDMA models alone, Samsung and China-based Huawei Technologies were the top two vendors with market shares of 25.1% and 24.7%, respectively, last quarter, Analysys indicated.
The total sales volume in 2007 stood at 149.13 million handsets, rising by 64.5% from 2006 and consisting of 139.05 million GSM phones and 10.08 million CDMA phones.

Mio announces partnership with Qualcomm to develop connected PNDs
Mio Technology has announced the forming of a partnership with Qualcomm to develop connected PND products. These new devices will leverage Qualcomm's QST1100 chipset to deliver industry-leading GPS performance and cellular connectivity for real-time traffic updates, voice call capabilities and more, stated Mio.
With the new strategic partnership, Mio looks to offer consumers a next generation GPS device that goes beyond traditional A to B navigation, the company said. With real-time content, search capabilities and more, Mio's connected PNDs will provide a uniquely dynamic navigation experience that can be customized for any lifestyle.
Qualcomm's QST1100 chipset is the first solution to integrate application processing, GPS and cellular connectivity into a single chip for ubiquitous connectivity and sleeker form-factors, highlighted the company. The QST1100 chipset leverages Qualcomm's gpsOne technology that supports several modes of operation including: Assisted-GPS and Standalone-GPS as well as gpsOneXTRA Assistance technology for enhanced Standalone-GPS performance. Currently, more than 300 million devices around the world leverage gpsOne technology for accurate, ubiquitous positioning capabilities, the company claimed.
Thursday, January 31, 2008
HTC forecasts revenues up 20-30% in 2008; new products to launch in 2Q
High Tech Computer (HTC) expects its revenues will grow 20-30% on year in 2008, with plans to launch a series of new products starting in the second quarter, company CFO Huei-ming Cheng said on January 30 during an online investors conference.
The new products will differentiate from the current Touch-series lineup, focusing on models supporting the 3G standard initially and then followed by EDGE-compliant models for emerging markets, Cheng indicated.
In addition, revenues will continue to grow at a robust annual rate of 35% in the first quarter of this year, although the first-quarter figures are likely to slide 15-20% from the fourth quarter of 2007, Cheng added.
For the fourth quarter of 2007, revenues were up 34.7% on year to NT$39 billion (US$1.21 billion), with non-ODM business growing over 60% on year, Cheng noted.
HTC's total shipments of mobile devices were up 3.7% on year to 9.92 million units in 2007, falling slightly short of its target of 10 million units. However, the ASP (average selling price) climbed 7.9% on year to NT$11,300 last year, according to company data.
In other news, the company's new plant in Pudong, Shanghai is scheduled for completion in September-October 2008, with the plant's production capacity to ramp up gradually to one million units a month, Cheng revealed.
LG Electronics to double handset sales in Taiwan in 2008
LG Electronics aims to double its sales of handsets in Taiwan to 700,000 units in 2008, with handset revenues reaching US$100 million, accounting for a 10% share in the local market in terms of sales value, according to Finsen Chen, vice president of telecom business unit at LGE Taiwan.
In 2007, LG sold 350,000 handsets in Taiwan worth US$49 million, accounting for a 5% share in terms of unit sales and a 5-6% share in terms of sales value, Chen stated.
In line with increasing sales of handsets in Taiwan, LGE expects handset revenues to account for 30% of its total revenues in Taiwan in 2008, up from slightly over 20% in 2007, Chen said.
A total of 30-35 new handsets are to be launched in Taiwan in 2008, with 10-15 models supporting 3G standard and 20 models supporting 2G and CDMA standards, indicated Chen, noting that the company also plans to introduce Android-based handsets into the market by the end of this year.
HTC forecasts revenues up 20-30% in 2008; new products to launch in 2Q
High Tech Computer (HTC) expects its revenues will grow 20-30% on year in 2008, with plans to launch a series of new products starting in the second quarter, company CFO Huei-ming Cheng said on January 30 during an online investors conference.
The new products will differentiate from the current Touch-series lineup, focusing on models supporting the 3G standard initially and then followed by EDGE-compliant models for emerging markets, Cheng indicated.
In addition, revenues will continue to grow at a robust annual rate of 35% in the first quarter of this year, although the first-quarter figures are likely to slide 15-20% from the fourth quarter of 2007, Cheng added.
For the fourth quarter of 2007, revenues were up 34.7% on year to NT$39 billion (US$1.21 billion), with non-ODM business growing over 60% on year, Cheng noted.
HTC's total shipments of mobile devices were up 3.7% on year to 9.92 million units in 2007, falling slightly short of its target of 10 million units. However, the ASP (average selling price) climbed 7.9% on year to NT$11,300 last year, according to company data.
In other news, the company's new plant in Pudong, Shanghai is scheduled for completion in September-October 2008, with the plant's production capacity to ramp up gradually to one million units a month, Cheng revealed.
Wednesday, January 30, 2008
C-Media sales in January to see big leap on buyoant Amoi music phone sales
C-Media Electronics, which partners with handset vendor Amoi Electronics and handset chip designer Spreadtrum Communications in China on music phones
Tuesday, January 29, 2008
Nokia to acquire Trolltech to accelerate software strategy
28 January - 2008
The company has offered 844m Norwegian kroner (£77.7m) to acquire Trolltech, the Norwegian developer of a widely used application framework in order to give its own software efforts a boost.
Espoo, Finland and Oslo, Norway , 28 January - 2008 - Nokia and Trolltech ASA today announced that they have entered into an agreement that Nokia will make a public voluntary tender offer to acquire Trolltech (www.trolltech.com), a company headquartered in Oslo, Norway and publicly listed on the Oslo Stock Exchange. Trolltech is a recognized software provider with world-class software development platforms and frameworks. In addition to the key software assets, its talented team will play an important role in accelerating the implementation of Nokia’s software strategy.
Nokia will offer NOK 16 per share in cash. The board of directors of Trolltech has unanimously recommended that its shareholders accept Nokia’s Offer. Holders of 35,024,830 shares, representing approximately 66,43 % of Trolltech’s issued shares and votes have as of January 27, 2008 irrevocably undertaken to accept the Offer. Haavard Nord, Vuonislahti Invest AS (controlled by Eirik Chambe-Eng), Teknoinvest and certain funds managed by Index Ventures are among the shareholders who have agreed to tender their shares to Nokia. The acquisition of Trolltech will enable Nokia to accelerate its cross-platform software strategy for mobile devices and desktop applications, and develop its Internet services business. With Trolltech, Nokia and third party developers will be able to develop applications that work in the Internet, across Nokia’s device portfolio and on PCs. Nokia’s software strategy for devices is based on cross-platform development environments, layers of software that run across operating systems, enabling the development of applications across the Nokia device range. Examples of current cross-platform layers are Web runtime, Flash, Java and Open C. “The technology landscape evolves and, for Nokia, software plays a major role in our growth strategy for devices, PCs and the integration with the Internet. We continue to focus on areas where we can differentiate and add more value. Common cross-platform layers on top of our software platforms attract innovation and enable Web 2.0 technologies in the mobile space,” said Kai Öistämö, Executive Vice President, Devices, Nokia. “Trolltech’s deep understanding of open source software and its strong technology assets will enable both Nokia and others to innovate on our device platforms while reducing time-to-market. This acquisition will also further increase the competitiveness of S60 and Series 40.”Nokia aims to continue the development of Trolltech’s products and support of new and existing customers. Nokia strives for an open approach to technology that will encourage and support innovation in the industry, enable fast adoption of new technologies and advance healthy competition. Nokia embraces open source technology and will take further the open source development culture found in Trolltech. “Trolltech and Nokia share the goal of accelerating the adoption of Trolltech’s Qt based technology in the commercial market and in the open source community,” said Haavard Nord, CEO and founder of Trolltech. Eirik Chambe-Eng, Chief Troll and co-founder of Trolltech continues “We are thrilled to join forces with Nokia. The company’s innovative culture and resources will give our employees new and exciting possibilities and fulfill our vision of “Qt everywhere”.”Nokia intends to continue to enhance Trolltech products through active and ongoing development, for both desktop and mobile. To further stimulate industry innovation based on Trolltech’s products, Nokia plans to continue to license Trolltech technology under both commercial and open source licenses.The acquisition is subject to customary closing conditions, including acceptance by shareholders representing more than 90 % of the fully diluted share capital, and the necessary regulatory approvals. The complete details of the offer, including all terms and conditions, will be set forth in an offer document expected to be sent to Trolltech shareholders within two weeks. The offer is expected to be open for acceptance for a period of four weeks and to be completed in the second quarter of 2008. If the conditions to the offer are satisfied or waived, Nokia will have a legal duty to make a mandatory cash offer for or compulsory acquisition of the remaining shares.
E-Ten to showcase mobile TV-supporting PDA phone at GSMA congress
E-Ten Information Systems will showcase its forthcoming mobile TV-supporting PDA phone, the Glofiish V900, at the GSM Association's Mobile World Congress from February 11-14, 2008 in Barcelona, according to company chairman Hwang Shan-rong.
The V900, which is powered by a Samsung Electronics 667MHz processor and Windows Mobile 6, supports the reception of DVB-H, DVB-T, T-DMB and DAB broadcasts, said Hwang, noting that the device also supports 3.5G and features a 3.2-megapixel camera.
However, Hwang declined to specify a timetable for the availability of the V900.
Including the V900, E-Ten plans to launch six new handsets in 2008, with half supporting 3.5G technology and another half supporting the 2.5G standard, Hwang noted.
In other news, E-Ten saw its after-tax profits grow 61% on year to NT$646 million (US$20 million), or NT$4.02 per share, in 2007.
HTC share of Windows Mobile smartphone segment declining
Can you keep winning in a market without significant differents
29 January 2008
High Tech Computer (HTC) has lost the title as the global top ranking vendor of Windows Mobile-based smartphones (excluding touch-screen models), with its share of the segment falling to below 30% currently, trailing behind Motorola and Samsung Electronics, according to internal data from Microsoft.
Motorola, Samsung and HTC have been competing fiercely in the segment with each vendor accounting for a 20-30% share globally, with Motorola now leading the contest with a small margin, the data showed.
Previous data indicated that HTC topped the segment with a market share of over 50% in Microsoft's fiscal 2007 (from July 2006-June 2007).
However, HTC still retained the number one title in the Windows Mobile-based PDA phone segment, accounting for nearly a 50% share, according to the same data.
Palm was ranked second in the Windows Mobile PDA phone segment with a market share of over 10%, followed by Samsung and Asustek Computer with each accounting for less than a 10% share, the data indicated.
HTC is expected to see its share in the Windows Mobile PDA phone segment continue to erode since a number of vendors, including Motorola, Samsung, LG Electronics, Hewlett-Packard (HP), Palm, Asustek, E-Ten Information System and Gigabyte Communications, are all planning to launch touch-screen PDA phones, according to sources in Taiwan's handset industry.
Monday, January 28, 2008
Arima Communications handset shipments to peak at 5-6 million units in 3Q08
Arima Communications is expected to ship two million handsets in the first quarter of this year, with the shipments growing to 2.5-3 million units in the second quarter before peaking at 5-6 million units during the July-September period, according to sources at Taiwan-based handset component makers.
Handset shipments for all of 2008 are expected to total 14-16 million units, up from 9.5 million units shipped in 2007, the sources estimated.
Arima will begin shipping the T270 and T280 to Sony Ericsson in the first quarter, followed by the R300 Radio in the second quarter, while phasing out production of Sony Ericsson's T250, K200 and K220 during the first half, the sources noted.
Arima will also manufacture four new handsets for LG Electronics this year with total shipments expected to reach two million units, indicated the sources, noting that all of the four models, including the KP320 slated for shipment in the first quarter, will be built using handset solutions from MediaTek.
Arima's other handset clients also include Sharp of Japan and imobile of Thailand, said the sources.
Taiwan makers to ship 7.47 million smartphones in 1Q08, says paper
Shipments of smartphones from Taiwan-based handset makers are expected to grow 13.8% sequentially to 7.47 million units in the first quarter of this year and continue to expand at a sequential rate of 5.6% to 7.89 million units in the second quarter, the Chinese-Language Economic Daily News (EDN) quoted Taiwan's Market Intelligence Center (MIC) as saying.
MIC expects High Tech Computer (HTC), Inventec Appliances and Asustek Computer will all post strong on-quarter growth in smartphone shipments in the first half, said the EDN. The paper also indicated that UBS Securities, while acknowledging that HTC has decided to delay the launch of new products originally slated for the first quarter of this year, currently still maintains a "buy" rating for HTC stock of HTC with a target price of NT$802 (US$25) per share.
Sony Ericsson reportedly outsources production of new handsets to Taiwan-based makers
Sony Ericsson is outsourcing the production of its four newly released entry-level handsets to two Taiwan OEMs – Arima Communications and Chi Mei Communication Systems (CMCS) – with total shipments from the two makers expected to reach 15-18 million units in 2008, according to sources in Taiwan's handset industry.
Arima will handle the production of Sony Ericsson's T270, T280 as well as R300 Radio, whereas CMCS will manufacture the R306 Radio, the sources noted. Sony Ericsson has announced that the T270 and T280 will be available in the first quarter of this year, followed by the R300 in the second quarter and the R306 in the third quarter.
Including the T270, 280, R300 and R306, Sony Ericsson is expected to launch a total of 5-6 entry-level handsets targeting emerging markets in 2008 with the company likely to outsource 1-2 more models to Arima and an additional model to CMCS during the year, the sources indicated.
Sony Ericsson purchased about 8.5 million handsets from Taiwan-based OEMs in 2007, according to an estimate of market sources.
Friday, January 25, 2008
Handset shipments up nearly 16% to 1.15 billion in 2007, says ABI Research
25 Jan 2008
Worldwide shipments of handsets totaled 342 million units in the fourth quarter of 2007, bring the whole year total to 1.15 billion units, a 15.8% increase
HTC to ship CDMA handset to Reliance directly, say sources
25 Jan 2008
Accelerating its expansion in emerging markets, High Tech Computer (HTC) recently received CDMA handset orders from Indian telecom carrier Reliance with shipments expected to kick off in the first quarter, according to market sources.
Taiwan Market: CHT-HTC jointly launch Touch Cruise
Thursday, January 24, 2008
Asustek to ship V1520 PDA phone to Vodafone in 1Q08, says paper
24 Jan 2008
Asustek Computer will begin shipping its latest PDA phone, the P550, to Vodafone in the first quarter of this year, with the UK-based vendor to market
Apple lowers iPhone shipment projection for fiscal 2Q08, says paper
24 Jan 2008
Apple has lowered its projected shipments of iPhones from two million units to around 1-1.2 million units for the second fiscal quarter, which will end
Tuesday, January 22, 2008
Samsung and LG aim to up sales of US$200 handsets in 2008,
Samsung Electronics aims to ship 50 million handsets with a unit price tag of above US$200 in 2008, accounting for 25% of the company's shipment goal of 200 million handsets for the year, the Chinese-language Commercial Times quoted South Korean media as indicating.
Monday, January 21, 2008
Lg Launches New Variant of its Viewty Mobile Phone
LG Electronics has shown off a new Dark Silver colour option for its popular LG Viewty camera phone, which the company says has now sold over 550,000 units. LG says that it chose this new colour to further the LG Viewty's polished, premium image, after researching colour preferences in countries where the phone is sold and colour trend forecasts for 2008.
"With this new Dark Silver colour option LG has made the LG Viewty even better, giving buyers an opportunity to customize their phones with a new high-tech finish that is still professional and complements its overall design," said Dr. Skott Ahn, President and CEO of LG Electronics Mobile Communications Company. "We knew we had something special when we created Viewty, and it turns out that over half a million customers agree with us."
Another improvement to the LG Viewty is a redesigned jog wheel that makes scrolling through menus even easier. This improvement is based on customer feedback and available in some markets.
The LG Viewty, which includes a 5.0 megapixel camera and a 3.0-inch touchscreen has now topped 550,000 units in sales. This comes only two and half months after the phone's November 2007 release in Europe. LG expects the LG Viewty will continue to sell well in Europe, where up to 10,000 units are leaving store shelves daily. The company attributes this success to the LG Viewty's combination of top-notch features and great design.
Later this year LG will release more colour choices for the LG Viewty.
Thursday, January 17, 2008
China market: TD-SCDMA user base expected to hit 13 million in 2011
TD-SCDMA, China's self-developed 3G mobile communication standard, will come into commercial operation in China in 2008 and the number of subscribers is expected to grow quickly to 13.0 million in 2011, according to China-based consulting company Analysys International.
Standard TD-SCDMA
M units
2007 0
2008 0.2
2009 3.0
2010 6.4
2011 13.0
Wednesday, January 16, 2008
UMPC (Ultra Mobile PC)
Sanyo to finalize deal to sell cellphone operations to Kyocera
Struggling Sanyo Electric Co. will sign a final agreement to sell its cellphone operations to Kyocera Corp. possibly by the end of next week, sources familiar with the situation said Wednesday.
The cost of the transaction will likely amount to 45 billion to 50 billion yen, the sources said. The deal would signify the first amalgamation of cellphone operations between Japanese manufacturers.
The envisioned transaction includes sale of parts of the premises and buildings of Sanyo's factory in Daito, Osaka Prefecture, where Sanyo engineers have been developing cellphones.
Under the proposed deal, Kyocera will take over cellphone operations, including personal-handy system operations, as well as employees in charge of the cellphone business, they said.
Last October, Sanyo and Kyocera struck a basic agreement on the sale. The two have since been trying to hammer out details of the deal, including its cost and how to handle Sanyo's cellphone-related patents.
The deal will give Kyocera access to Sanyo's marketing network in North America. Kyocera is keen on bringing its North American cellphone operations into the black on the strength of the acquisition of the marketing network, they added.
White-box handset demand to stabilize after Lunar New Year, say IC designers
While MediaTek's sales guidance trim raises concerns over white-box handset demand trends from China in the first quarter of 2008, some IC design houses from Taiwan project that the demand will stabilize after the Lunar New Year in early February.
MediaTek, which has strong sales exposure to China-based white-box handset makers, said the slow demand from its customers is a reflection of the China government's macroeconomics control policy. The number one design house in Taiwan projected that demand from these customers should warm up after the Lunar New Year.
Sources at white-box handset makers echoed MediaTek's sentiment, saying that the control does pose a stronger impact over companies that have an unstable sales record. When the cost for securing investment funds grows, and demand does not trend as strong as expected, many of these companies hold off their procurements for components.
When the inventory effectively eases after the Lunar New Year, demand is expected to resume growth amid the effect of the upcoming Beijing 2008 Olympics.
Some industry players highlighted that the growing popularity of handsets supporting dual SIM cards has added to the volatility. Demand for these handsets soared in the third quarter of 2007 as evident in the over 45% sequential sales growth at MediaTek in the quarter. Quarterly handset chips shipments hit 40-50 million units also, the players noted.
However, as demand for these handsets was not sustained, MediaTek thus requires a longer-than-expected time to clear its inventory, they remarked.
Senao sets revenues record in 2007
Senao International has announced non-consolidated revenues for December 2007 of NT$1.93 billion (US$60.03 million), a new record high for the company with an increase of 42% on year. Total non-consolidated revenues in 2007 were NT$19.49 billion, also a new historic high with an increase of 13.8% on year, while profit growth surpassed 40% on year.
The company shipped over 300,000 handsets in December, which brought total shipments in 2007 to 3.2 million units. 55-60% of shipments were to Chunghwa Telecom (CHT), while the remainder was supplied to the channel. The company expects shipments in 2008 will increase to above 3.5 million units.
In addition to handsets and related accessories, the company will continue to expand other product lines including digital family and games console related products.
Tuesday, January 15, 2008
China Mobile calls off iPhone deal
15 Jan 2008
Apple’s global sales target of selling ten million iPhone handsets by the end of 2008 was shattered as talks with the number one carrier, in the world's largest wireless market, has come to a halt.
Of China’s 522 million mobile phone subscribers, state-controlled China Mobile has 363 million subscribers and therefore a stronger upper hand in negotiating deals than other operators. "We can only say that negotiations have ended for now. We have no other news to report," said Li Honghui, a spokeswoman for China Mobile Communications Corporation."We have held talks with Apple to launch the iPhone device in China. However, those talks have ended," said Rainie Lei, a spokeswoman for China Mobile. Speculations point to disagreements over revenue-sharing terms in the preliminary discussions between the two companies.China Mobile, the world’s largest mobile phone operator based on the number of subscribers, was reportedly unwilling to accept Apple's request for a 20 per cent to 30 per cent share of China Mobile's user fees from future iPhone users.The Cupertino, California-based company, which released the hyped handset in the US, Germany, the UK, and France in 2007, has said it plans to launch the iPhone in Asia in June of this year. Apple, which so far has only released the device on the country's largest networks, has already begun talks with China Unicom to offer the iPhone exclusively in mainland China. Analysts believe smaller rival China Unicom is more willing to give Apple a larger piece of the revenue pie than China Mobile.
Apple unveils super-thin "Air" laptop, Web movies
15-Jan 2008
SAN FRANCISCO (Reuters) - Apple on Tuesday launched an aluminum-clad laptop just three-quarters of an inch thick, seeking to bring a new computer to market with the same cachet as its iPod and iPhone devices.
Apple also said it would let people rent films over the Web with upgrades to its iTunes online media store, a technological challenge to a movie industry still largely focused on DVDs.
Shares of movie rental firms Netflix and Blockbuster fell sharply in response, and Apple's own stock lost 5.5 percent since the announcements were widely expected and Chief Executive Steve Jobs failed to conjure up any big surprises.
Jobs set a high bar last year by unveiling the iPhone. In addition, many times he ends presentations with by saying, "One more thing..." as a prelude to something unexpected. This year there was none.
Still, Jobs' talents as a showman were on display when he took the stage at the annual Macworld convention in San Francisco to cheers and applause from a few thousand software developers, customers and Apple employees.
He detailed a series of new products and services but saved the laptop, dubbed the MacBook Air, for last, drawing it out of a standard manila envelope to emphasize its slim dimensions.
Jobs said the new notebook was the thinnest available, measuring 0.76 inches at its thickest point and tapering to just 0.16 inches.
Priced from $1,800, the Air bridges the gap between Apple's entry-level and high-end laptops, but analysts voiced concern that it could steal customers away from pricier products.
"It's not really clear how many more incremental buyers you can drive, and there could be some cannibalization," said Shaw Wu, an analyst with American Technology Research.
MacBook laptops have been one of the company's strongest products, with sales rising 37 percent on the year in the fiscal fourth quarter ended last September.
NEW APPLE USERS SOUGHT
Phil Schiller, Apple's vice president of marketing, said the new laptop could appeal to a large swath of customers, including business travelers, those in education and people who wanted a more attractive computer at home.
"The goal overall is to continue to grow the business, so having another product in the line helps to do that. If the mix (of customers) changes a little bit, it doesn't matter as long as we grow everything," Schiller said.
Apple stock has nearly doubled since last year's Macworld, and in late December topped $200 for the first time, driven by market-share gains by Mac computers, continued iPod strength, and enthusiasm over the iPhone, which Jobs said had sold more than 4 million units since its release last June.
Jobs showed off new iPhone features such as displaying a user's location on a map and a way to customize the main screen with icons linking directly to specific parts of a Web site.
"The iPhone is not standing still. We keep making it better and better and better," Jobs said.
But the company has struggled to find a big audience for Apple TV, a product originally designed as a Mac accessory for watching Internet video on a television and unveiled alongside the iPhone a year ago.
"It's not what people wanted. We learned what people wanted was ... movies, movies, movies," Jobs said.
A new version of Apple TV will be able to connect to the Internet directly and download TV shows, movies and music through iTunes. Viewers will be able to choose movies directly from their TVs and Apple said viewers could start watching within seconds if they had a fast Internet connection.
Jobs announced deals with all six major movie studios and several smaller ones to offer movies for rental through iTunes, with new releases costing $3.99 and library titles $2.99. High-definition movies will also be available.
The revamp of Apple TV hardware combined with a broad selection of movies would give Apple an edge over competitors such as Amazon.com Inc , Netflix and Microsoft Corp , American Technology Research's Wu said.
News Corp's 20th Century Fox, Walt Disney Co , Time Warner Inc's Warner Bros, Viacom Inc's Paramount, General Electric Co's Universal, Sony Corp's Sony Pictures, Lionsgate , MGM and New Line have all signed on to Web rentals, Apple said.
"It's too early to declare that this is going to be a big hit but this is arguably the best offering out there right now," Wu said.
Apple shares fell to $169.04, while mail rental firm Netflix Inc shed 3.2 percent, and top video rental chain Blockbuster Inc dropped nearly 17 percent.
(For more tech news see the Reuters Mediafile blog at http://blogs.reuters.com/mediafile)
(Additional reporting by Duncan Martell in San Francisco, Sinead Carew and Kristina Cooke in New York; Editing by Toni Reinhold and Braden Reddall)
Copyright 2008 Reuters
Google's Android Platform Shown Working on a HTC Smartphone
The mobile Linux developer, "a la Mobile" has ported the Google Android mobile OS platform to run on HTC's Qtek 9090 smartphone. The demonstrated applications, some with enhanced graphical user interface (GUI) developed by a la Mobile, include: browser, phone dialer, audio player, maps, camera, games, calendar, contacts manager, calculator, tasks manager and notes.
The HTC Qtek 9090 smartphone is more typically sold running the Windows Mobile OS.
Dispelling the Mystery of Android
"While mobile Linux has made steady progress in the industry since 2006, Google's advocacy with the unveiling of the Android framework further substantiates the position of Linux as a major mobile operating system alongside Windows Mobile and Symbian," said Pauline Lo Alker, President and CEO of a la Mobile. "However, despite the market enthusiasm about Google Android, many questions remain concerning the technical details, and skepticism exists concerning its readiness. As the leader in mobile Linux, we believe it is our responsibility to take the initiative to allay the 'mystery' and dispel any skepticism surrounding Android by first demonstrating a complete mobile Linux system stack, including drivers, middleware, and a suite of Android-based applications running on an existing advanced smartphone manufactured by one of the premier handset vendors in the market."
Building a Complete Mobile Device System Stack
A Linux application platform for mobile devices, Android provides a framework and Application Program Interfaces (APIs) to enable third-party developers to create applications based on a 'unified application standard.' While Android's impending official release of the source code is a great stimulant for popular adoption of Linux and a good platform that enables application interoperability among various mobile devices, it is not an off-the-shelf complete software stack.
A complete system solution for mobile devices consists of numerous software components, including: device drivers, Linux kernel, system utilities, mobile middleware (such as security, device management, provisioning, etc.), an application framework (such as Android) that supports JAVA services, browser, and miscellaneous applications for the end device.
"Despite the open-source nature of the Android framework, developing a complete mobile system solution with customized, differentiated features continues to present major technical challenges requiring considerable time, effort, and resources -- a barrier and reach beyond the scope of many handset vendors," continues Alker. "Our mission is to remove the complexity for handset vendors and mobile operators to enable them to accelerate their device time-to-market, ensure high quality while reducing total development and device costs. The experience we have gained in putting together this demo will enable us to trim a device's time-to-market by at least half!"
"The wireless industry is preparing itself for the growth in the use of Linux as the operating system for smartphones," said Bill Hughes, Principal Analyst with In-Stat. "Some industry participants are seeking to offer mobile Linux platforms that are only partially 'open,' with key interfaces being kept proprietary. In contrast, a la Mobile is pursuing mobile solutions that are open and support third-party application developers and network partners to provide solutions that apply across multiple platforms. a la Mobile's demonstration of the Android framework on an actual smart device is a concrete example of this vision put into practice. Such efforts support the growth predictions In-Stat has made about the smartphone industry as a whole and the mobile Linux platform in particular."
a la Mobile's first Linux system offering -- Convergent Linux Platform (CLP) version 1.0 - based on the Qt application framework by Trolltech, was first introduced in 2006 and adopted by several handset vendors.
Monday, January 14, 2008
China-based Huawei and ZTE expanding penetration in CDMA market
China-based Huawei Technologies and ZTE both claim that they increased their penetration in the CDMA segment of the global telecom network infrastructure market in 2007, according sources of the companies.
Huawei secured a total of US$16 billion worth of telecom network infrastructure contracts in 2007, including US$7 billion for mobile telecom networks, the China-based media quoted company sources as saying.
Contracts for WCDMA networks reached 39 in 2007, bringing the total number of WCDMA contracts received so far by Huawei to 86, said the sources.
In other news, ZTE accounted for 33% of a total 188 global mobile network infrastructure deals announced in the first half of 2007, the company cited Gartner data as saying.
ZTE was particularly strong in the CDMA segment where it took the number one ranking in base stations delivery and the number of contracts signed in the six-month period, ZTE quoted data from Gartner as indicating in a press release.
ZTE also recorded a 300% increase in GSM shipments volume in the period, allowing the company to expand its global GSM capacity to 90 million network lines, according to the release.
Commentary: Has CMMB already been selected as mobile TV standard in China?
The planned enactment of a national standard for mobile TV broadcasting in China got an apparent set back in November 2007 when the CMMB (China Mobile Multimedia Broadcasting) camp supported by the State Administration of Radio, Film and Television (SARFT) declined to participate in testing sponsored by China's Standardization Administration aiming to decide which mobile TV standard would be chosen as the national standard.
In addition to CMMB, four other technical standards – DMB-TH (DMB-terrestrial/handheld), T-MMB (terrestrial-mobile multimedia broadcasting), CMB (cell multimedia broadcast) and CDMB (China Digital Multimedia Broadcasting) – are also competing to become the national mobile TV standard in China.
While the Standardization Administration is planning to hold a new round of testing, the CMMB camp has apparently continued to ignore the standard-formation process with plans to install CMMB-compliant networks in 37 major cities in China.
In addition, the CMMB camp also plans to launch a satellite, codenamed CMMB-STAR, in June 2008 that will enable CMMB broadcast signals to reach a total of 324 cities by July.
With regard to the supply chain of CMMB, Beijing-based Innofidei Technology has begun volume production of CMMB core chips for use in handsets, digital video players and PMP (portable multimedia player) devices with total shipments of its CMMB chips to top over five million units in 2008.
For customer-end products, more than 200 makers and vendors, including China-based Lenovo and ZTE as well as leading vendors such as Nokia and Motorola, are also ready to roll out CMMB-compliant solutions. In addition, SARFT is also preparing content, either paid or free-of-charge, for CMMB broadcasts covering the whole nation or regions.
In other words, SARFT is building CMMB networks as a national standard, although it understands that the Standardization Administration is yet to select a standard and that its specifications are also subject to the approval of the administration.
However, since the CMMB plan initiated by SARFT was recently enlisted as one of the major technological development projects in China, entitling it to government subsidies of up to 400 million yuan (US$54.8 million) in three years, it has raised concerns that the CMMB standard might have already been selected as the mobile TV standard in China out of the public eye.
Friday, January 11, 2008
Quanta and Asustek to no longer produce handsets for MWG
After Telefonica Group's sale of O2 Asia Pacific to Mobile and Wireless Group (MWG), the suppliers of MWG (ex-O2 Asia) will change, according to industry sources. Asustek Computer and Quanta Computer will no longer make handsets for MWG while Gigabyte Communications and Arima Communications will become its major suppliers, the sources added.
Tuesday, January 8, 2008
Yahoo Opens Mobile Web Platform
8 Jan 2008
After losing some of its luster on the personal computer, embattled Internet icon Yahoo Inc. is hoping to outshine Google and other rivals on the mobile phone.
In a move announced Monday, Yahoo opened its mobile platform so outside programmers can develop new applications for Yahoo pages accessed on mobile handsets. Yahoo hopes the mini-applications, known as "widgets," will help attract more on-the-go users, which will bring the company more money from advertising.
The Sunnyvale-based company also unveiled a redesigned home page for mobile phones that includes more content and enables visitors to designate material they want highlighted.
And it released an upgrade to its "Go" software that is supposed to facilitate Web surfing on mobile phones and enable Yahoo to show ads with graphics.
Jerry Yang, a Yahoo co-founder who took over as chief executive nearly seven months ago as part of the company's turnaround efforts, discussed the changes Monday during an address at the International Consumer Electronics Show.
"We're committed to creating the best and richest mobile experience for all consumers," Yang said.
Yahoo believes its Go software, introduced at the same Las Vegas convention two years ago, gave the company an early advantage in a high-stakes battle to deliver more advertising and Internet services to the 3 billion mobile phone subscribers around the world.
But Yahoo is a step behind rival Google Inc. in the push to persuade programmers to develop applications for its mobile platform.
Mountain View-based Google began wooing outside programmers two months ago when it announced a long-anticipated mobile software package called "Android" that is expected to hit the market during the second half of this year.
Yahoo is betting more programmers will be interested in working on its mobile platform because it has the potential to reach billions of phones, said Yahoo spokesman Cory Pforzheimer. Google's Android software is expected to be installed on a few million phones initially.
Besides touting a better mobile platform, Yang also said Yahoo is planning to add more bells and whistles to its free e-mail service later this year.
In a preview at CES, Yang showed how the e-mail might allow users to highlight incoming mail sent by their closest friends and plant widgets in their mailboxes.
Yahoo emerged as an Internet powerhouse shortly after Yang and fellow Stanford University graduate student David Filo started the company in 1995. But Yahoo has been eclipsed in recent years by Google, which got a major lift in its early years when Yahoo hired the startup to provide its search results.
Other trendy online hangouts like Facebook and News Corp.'s MySpace also are hurting Yahoo.
But Google represents Yahoo's biggest headache. Once far smaller, Google has emerged as the most influential force in the rapidly growing Internet ad market while Yahoo's growth has faltered in recent years. It now takes Google about two months to make as much money as Yahoo does in an entire year.
Yang has promised to shake things up, but the results so far haven't impressed investors. Since Yang became CEO, Yahoo's stock price has dropped by 18 percent while Google shares have surged by more than 20 percent. That has left Google with a market value of $203 billion compared with $31 billion for Yahoo, whose shares added two cents Monday to close at $23.18.
Unless Yahoo can snap out of its funk later this year, some analysts suspect management will face mounting pressure to sell the company. Potential buyers include Microsoft Corp. and eBay Inc.
Establishing itself as a leader in the mobile advertising market could help Yahoo bounce back. U.S. spending on mobile ads is expected to triple from a projected $1.6 billion this year to $4.8 billion in 2011, according to the research firm eMarketer Inc.
Monday, January 7, 2008
Vibo to purchase up to 500,000 handsets in 2008
Taiwan-based 3G operator Vibo Telecom expects to purchase 400,000-500,000 handsets, valued at NT$3 billion (NT$92.6 million), in 2008, according to company president Feng-hsiung Chang.
Vibo also expects the number of its 3G subscribers to double to 1.2 million in 2008 with one million subscribers to be active users of its services, Chang stated.
Chang estimated ASPs (average selling prices) of smartphones and general-function mobile phones to decline to US$400 and US$100, respectively, in 2008 and consequently, the declines in ASPs will help reduce telecom operators' subsidies to subscribers.
NXP-GloNav consolidation synergy to materialize as new solution to launch soon: Q&A with NXP EVP of mobile and personal business unit
Q: Why did NXP select GloNav to strengthen the company's GPS offering?
A: Power consumption, cost, yield and technology maturity determines the competitiveness of a GPS chip. By taking all these criteria into account, and seeing that GloNav already successfully developed a single chip on the 90nm process node, we believe the corresponding intellectual property (IP) in this field will be easily integrated into our handset and GPS single chip offerings.
As GloNav has already planned to advance its GPS single chip to 45nm, the consolidation means a timely introduction of a mature, cost competitive and power efficient solution to customers. It also helps broaden our wireless communication chip product portfolio.
Q: What do you think about the GPS handset market? And what will be the growth drivers in 2008?
A: Of course we are optimistic about the market or else we would not have acquired GloNav. To put it simply, NXP believes that GPS has substantial potential in the handset market and will deliver huge added value much like Bluetooth and FM radio reception. These two markets now have a penetration rate of 40-50% in the global handset market and the rate is set to pick up further in the future. As we believe GPS will have a similar penetration trend, we think we chose the right time to tap into the GPS segment.
When NXP will deploy in the handset segment, we will particularly assess the markets that will deliver substantial growth. NXP believes that applications such as Bluetooth, FM radio, GPS and near-field communications (NFCs) are essential. As the penetration rate for GPS and NFC is still under 10%, these are potential areas to focus on.
Q: Can you detail NXP's GPS deployment amid the consolidation?
A: Since GloNav already houses its own customer base in personal navigation devices (PNDs) and other handset products, besides adding the Nexperia line to the 90nm-made solutions of GloNav's product lineup, we will also start offering solutions from GloNav to our existing customers in the handset, automotive and portable consumer electronics sectors. Of which, our handset customers are expected to see solutions available for them in February at the earliest.
NXP will also try to integrate a GPS single chip into other mobile communication solutions. But since we just announced the consolidation with GloNav, we have no concrete schedule for deployment in this field yet.
Q: As one of the major chip supplier for the TD-SCDMA standard, does the consolidation with GloNav imply a possible GPS-equipped TD-SCDMA standard chip?
A: The GPS single chip that we are going to unveil next month will be available to all handset makers, and this of course supports the TD-SCDMA standard. There is a possibility of seeing a TD-SCDMA handset with built-in GPS connectivity in 2008.

Marc Cetto, executive vice president and general manager of NXP's mobile and personal business unit
Handset shipments from Compal Communications and Arima Communications down sharply in 2007
The two leading Taiwan OEM handset makers – Compal Communications and Arima Communications – both saw their handset shipments fall short of their respective targets in 2007 due to reduced orders from clients, according to market sources.
Compal shipped 10.9 million handsets in the fourth quarter of 2007, bringing the company's total shipments for all of 2007 to 47.8 million units, down 27% on year and also lower than its revised target of 50 million units, said sources at Compal.
Accordingly, Compal's revenues for 2007 were down 31.9% on year, to NT$48.74 billion (US$1.5 billion), according to company data.
However, market sources expect Compal's revenues to rebound strongly in the second half of 2008, buoyed by shipments of CDMA handsets to Nokia and shipments of smartphones to other clients.
Compal's handset shipments for the first quarter of this year are likely to grow marginally from the fourth quarter of 2007, with total shipments for 2008 expected to reach 53-58 million units, estimated the market sources.
In other news, Arima shipped 9.25 million handsets in 2007, compared to 13 million units shipped in 2006 and its target of 14-16 million units for 2007, according to company sources.
For all of 2007, Arima's consolidated revenues totaled NT$18.42 billion, down 25.7% from the previous year, according to company data.
Arima expects its handset shipments to again top 14-16 million units in 2008, according to estimates by sources at the company.
With electronics show set to open, Gates heralds new digital decade
7 Jan 2008
The world's largest consumer electronics trade show will officially open here Monday, with Microsoft co-founder Bill Gates heralding the onset of a new "digital decade".
The Consumer Electronics Show features for the first time a "Sustainable TechZone" dedicated to "pioneering technologies that benefit the environment and sustainability of the global economy."
Innovations in the TechZone will include voltaic solar-power generating backpacks and messenger bags made from recycled plastic soda bottles.
Control4 and other firms specializing in automating homes will display computerized systems that reduce the amount of energy wasted in cooling, heating or lighting residences or by televisions and other entertainment electronics.
In his last keynote speech late Sunday, Gates predicted the coming 10 years will deliver great technological changes.
"The first digital decade has been a great success," Gates told an overflow audience in a ballroom at the Venetian hotel and casino.
"This is just the beginning. There is nothing holding us back from going much faster and further in the second digital decade."
There are more than a billion personal computers in use in the world and more than 40 percent of people on the planet have mobile telephones, according to Gates.
The new digital decade will be increasingly "user-centric" and the trend is for media and entertainment to be software driven, Gates said.
"The second digital decade will be more focused on connecting people," he continued. "Those applications will run on the Internet, in the cloud as we say, and use the best of software services."
The comment came as an admission that the market is moving away from Microsoft's longtime core money-maker, packaged software that people install on their own machines.
Gates said high-definition video experiences "will be everywhere," from televisions to wall projections and even built into desks or tables.
People will roam in increasingly realist three-dimensional virtual worlds, tending to business, shopping and other aspects of daily life, he contends.
Electronics will be increasingly linked to the degree that people will eventually take for granted getting their data whenever and where ever they want, according to Gates.
"You will take getting your data for granted," Gates said. "No longer will users have to bridge between devices and remember what is where."
While the first digital decade was marked by the keyboard and the computer mouse, the new decade will be marked by "natural user interfaces" such as touch screens and gesture controls, according to Gates.
Consumer electronics trends, opportunities and creations will be highlighted at the show and scrutinized in more than a score of "TechZones," and industry experts will discuss hot topics in conference sessions continuing until the show ends January 10.
"This is where the gadgets are, and the people that like gadgets," said Nate Nelson of Zagg Inc., which is among the exhibitors at the event.
Electronics makers vying for the CES spotlight will tout new products and resort to the time-proven tactic of bringing in actors, musicians, magicians, comedians or sports stars.
The event offers a vault of high-tech marvels from the last in flat-panel television sets and mobile telephones to computer controlled homes and cars.
Gates has spoken 11 times at annual CES events. He steps down from his full time job as chief technology officer at Microsoft in July and will refocus his efforts to the philanthropic Bill and Melinda Gates Foundation.
"This is the first time since I was 17 that I won't have my full time Microsoft job," Gates said. "I don't know what that last day will be like; it could be strange."