CAIRO, EGYPT: SySDSoft, a leading supplier of 4G embedded software solutions for the broadband market, announced the availability of its LTE Protocol Stack supporting TDD in addition to FDD, which has been demonstrated before.
SySDSoft’s LTE stack hence, offers chip makers, OEMs, and ODMs a real chance to increase their market shares in promising markets supporting unpaired spectrum such as the Chinese market.
“At SySDSoft, we are not only focused on the customer immediate needs, but we exceed this by having an outlook on the whole market to provide practical designs that fit with the entire ecosystem, which finally reflects on end-users experience”, said Khaled Ismail, CEO of SySDSoft.
“Our configurable stack offers chip and equipment manufacturers the flexibility and the freedom of choice between FDD and TDD modes. This is to assist them widening their customer base in massive markets adopting the TDD-LTE such as the Chinese market,” he added.
The 3GPP consortium has identified fifteen paired and eight unpaired spectrum bands for LTE. For all these bands, SySDSoft’s LTE stack has the flexibility to switch between FDD and TDD according to the type of the operator’s eNB.
The stack is a distinctive implementation of L2 and L3 of the 3GPP-LTE standard. The implementation includes MAC, RLC, PDCP, and RRC sub-layers with well-defined APIs to the upper layers.
Abstraction layers providing RTOS and PHY layer independence are also part of the deliverables. SySDSoft has demonstrated Release 1 last February and is planning to demonstrate Release 2 and 3 in Q2/Q3 2009.
Monday, May 4, 2009
Sunday, May 3, 2009
Embedded netbooks could blur broadband service boundaries
NEW YORK, USA: The growing popularity of netbooks and laptops with embedded broadband wireless modems could lead network operators to offer single-price broadband services that include both mobile and fixed connectivity, marking a significant shift in the way broadband services are used and sold, according to the latest report from Light Reading Insider.
The Netbook Effect: Remaking Broadband Price Structures identifies and analyzes key issues that will affect the embedded laptop and netbook market through 2010. It forecasts the adoption of these products and discusses barriers to and drivers of that adoption. This report also examines the competitive environment, such as pricing pressure on modem vendors and how embedded PCs will affect the wired broadband market.
"Until the past year or so, embedded laptops were aimed primarily at enterprises and business users, but with the arrival of embedded netbooks, the addressable market now includes consumers," says Tim Kridel, research analyst for Light Reading Insider.
"While the full impact of embedded PCs on broadband services is not likely to be felt over the next 12 to 18 months, network operators will have to respond with different service options as more of these devices are put into use," he added.
As embedded netbooks grow in popularity and accessibility, consumers will look for more choices from their broadband service providers, Kridel notes. "Operators that figure out how to offer service that cuts across fixed and mobile lines stand the best chance of succeeding with this emerging user group," he says. "The amazing growth of mobile data services driven by devices such as the BlackBerry and the iPhone, coupled with the arrival of higher-speed mobile data services, will likely spur a huge opportunity for operators that can adapt their services to fit user demands."
Key findings of The Netbook Effect: Remaking Broadband Price Structures include:
* About 3 million embedded laptops and netbooks were sold in 2008, with at least 4.5 million possible this year.
* Some laptop and netbook vendors say that up to 40 percent of their 2008 sales were embedded.
* Despite the growth of embedding, USB/PC card adapters are selling briskly and remain in the majority.
* Bundling wired/wireless broadband removes a major barrier to consumer adoption of embedded products.
* Competition and pricing pressure are fierce among makers of embedded modems.Embedded netbooks could blur broadband service boundaries.
The Netbook Effect: Remaking Broadband Price Structures identifies and analyzes key issues that will affect the embedded laptop and netbook market through 2010. It forecasts the adoption of these products and discusses barriers to and drivers of that adoption. This report also examines the competitive environment, such as pricing pressure on modem vendors and how embedded PCs will affect the wired broadband market.
"Until the past year or so, embedded laptops were aimed primarily at enterprises and business users, but with the arrival of embedded netbooks, the addressable market now includes consumers," says Tim Kridel, research analyst for Light Reading Insider.
"While the full impact of embedded PCs on broadband services is not likely to be felt over the next 12 to 18 months, network operators will have to respond with different service options as more of these devices are put into use," he added.
As embedded netbooks grow in popularity and accessibility, consumers will look for more choices from their broadband service providers, Kridel notes. "Operators that figure out how to offer service that cuts across fixed and mobile lines stand the best chance of succeeding with this emerging user group," he says. "The amazing growth of mobile data services driven by devices such as the BlackBerry and the iPhone, coupled with the arrival of higher-speed mobile data services, will likely spur a huge opportunity for operators that can adapt their services to fit user demands."
Key findings of The Netbook Effect: Remaking Broadband Price Structures include:
* About 3 million embedded laptops and netbooks were sold in 2008, with at least 4.5 million possible this year.
* Some laptop and netbook vendors say that up to 40 percent of their 2008 sales were embedded.
* Despite the growth of embedding, USB/PC card adapters are selling briskly and remain in the majority.
* Bundling wired/wireless broadband removes a major barrier to consumer adoption of embedded products.
* Competition and pricing pressure are fierce among makers of embedded modems.Embedded netbooks could blur broadband service boundaries.
Friday, May 1, 2009
Global mobile phone shipments decline 15.8 pc in Q1
FRAMINGHAM, USA: The worldwide mobile phone market began 2009 with an expected sequential downturn, exacerbated by the challenges of the ongoing worldwide recession.
According to IDC's Worldwide Quarterly Mobile Phone Tracker, vendors shipped a total of 244.8 million units in the first quarter of 2009 (1Q09), approximately 15.8 percent lower than the 290.8 million units shipped during 1Q08.
The first quarter of a new year is typically characterized by seasonally lower shipment volumes following a busy holiday quarter with channels clearing out excess inventory. However, the 1Q09 decline was especially sharp due to weak end-user demand, currency volatility, and lack of credit for merchants as consumers and the supply chain adapt to the recession.
"That the worldwide mobile phone market started off 2009 with a year-over-year decline highlights just how much the economic recession has affected all industries, including the wireless market," says Ramon Llamas, senior research analyst with IDC's Mobile Devices Technology and Trends team. "The market continues to adapt to the new economic reality with both vendors and retailers exercising caution to remain profitable. In some cases, this has meant holding less inventory, or even reducing headcount. Fortunately, new features and demand for phones will help the market resist the financial pressure. We expect to see further year-over-year declines worldwide, even as some regions show signs of improvement."
As the overall market dropped 15.8 percent in 1Q09, converged mobile devices (commonly referred to as smartphones) continue to grow year on year at 4 percent. Growth within this segment was evident in Western Europe, North America, and Asia/Pacific (excluding Japan). Mobile operators have become progressively more open to raising subsidies within this segment as dependence on data revenue has increased as a result of reduced consumer demand for new handsets.
"Creativity appears to be the key to success for large mobile operators during this tough time as changes to business practices from past years have become necessary," says Ryan Reith, senior research analyst with IDC's Mobile Phone Tracker. "Some of the big operators in mature markets have shifted product portfolios, and some have smartphones accounting for as much as 50 percent of the entire handset offering. We believe this strategy will continue, along with an increase in devices that are media and messaging centric, to help operators maintain revenues."
Regional analysis
Shipments of mobile phones into North America started the year slightly higher than the same quarter a year ago even as the economic recession bit deeper into the United States and started to impact Canada. Carriers' efforts to lure customers with unlimited plans and free device promotions helped offset a sharper decline, even in the face of slower subscriber growth.
Converged mobile devices at lower price points helped stimulate consumer interest in the midst of the economic recession, providing a needed boost to shipment volumes.
As expected, the Latin American mobile phone markets took a negative turn in 1Q09 as most of the economies in the region began to see slower economic growth. In addition, local currency devaluation drove prices higher on imported phones, reducing demand. This has not deterred future plans of enterprise customers, who have voiced interest in increasing spending on mobile devices in 2009.
Much of the Western European handset market was characterized by weaker consumer confidence and lower demand, while channels, already holding low inventory, were reluctant to re-stock. This set up challenging conditions for vendors in both the traditional mobile phone and converged mobile device spaces.
Meanwhile, the CEMA market posted some positive news, as much of the inventory was cleared at the end of 2008. Shipments into the Middle East and Africa contracted at a slower pace in 1Q09, while demand in Central and Eastern Europe and Russia decreased rapidly due to currency devaluation.
Asia/Pacific: In a difficult economic climate, China and India offered signs of encouragement in 1Q09. India reported strong subscription additions during the quarter, while China's rural subsidies have helped to prop up handset demand. Still, with growth coming increasingly from lower-end segments in the region, phone makers will find their average selling prices and profit margins challenged.
Vendor highlights
Nokia saw its shipment volumes dip below the 100 million unit mark for the first time in two years, while its ASP slid due to pricing pressure and greater emphasis on lower-priced devices.
Despite these challenges, Nokia posted a healthy 33.8 percent gross margin on its devices and services, with the success coming from the 5800 XpressMusic device as well as the launch of several services including Comes With Music, Nokia Messaging, Ovi Store, and Point and Find.
Samsung returned to double-digit profitability to start the year, resulting from improved operating efficiencies and a favorable product mix for the quarter. Samsung's strong position in feature phones sustained interest during an otherwise quiet quarter, with touch devices like the F480 and messaging devices like the A767. Samsung also recently announced its first Android-powered device, the i7500, due to hit the European market in June.
LG Electronics began the year on a positive note, posting an increase in operating margins despite a year-over-year decrease in shipment volumes. Driving its improvement was a combination of cost, supply chain, and operational efficiencies as well as warm reception for its touch screen, messaging, and digital imaging devices.
Even as the recession continues, the company is targeting double-digit sequential growth in 2Q09 with the release of high-end models to key regions as well as low-cost devices into emerging markets.
Motorola, although posting another quarter of operational loss, showed signs of improvement to start 2009. Co-CEO Sanjay Jha underscored the company's operational effectiveness and cost savings, noting the reduction in operational loss compared to the previous quarter.
In addition, Jha highlighted plans to add more smartphones to its portfolio before the end of the year. During the quarter, Motorola launched its Evoke QA4 and MOTOSURF A3100, as well as the industry's first eco-friendly device, the MOTO W233 Renew.
Sony Ericsson saw its market share decline as several key markets moved away from mid- and high-tier devices towards low-cost devices, where the company does not compete. Meanwhile, the company continued to build its content and services platform, with roll out of PlayNow Plus, Movies, and Arena across Europe. Although Sony Ericsson has been implementing a cost reduction plan since the summer of 2008, President Komiyama cited further need to reduce costs and headcount.
Top Five Mobile Phone Vendors, Shipments, and Market Share, Q1 2009
(Units in Millions)
Source: IDC Worldwide Quarterly Mobile Phone Tracker, April 30, 2009
Note: Vendor shipments are branded shipments and exclude OEM sales for all vendors.
According to IDC's Worldwide Quarterly Mobile Phone Tracker, vendors shipped a total of 244.8 million units in the first quarter of 2009 (1Q09), approximately 15.8 percent lower than the 290.8 million units shipped during 1Q08.
The first quarter of a new year is typically characterized by seasonally lower shipment volumes following a busy holiday quarter with channels clearing out excess inventory. However, the 1Q09 decline was especially sharp due to weak end-user demand, currency volatility, and lack of credit for merchants as consumers and the supply chain adapt to the recession.
"That the worldwide mobile phone market started off 2009 with a year-over-year decline highlights just how much the economic recession has affected all industries, including the wireless market," says Ramon Llamas, senior research analyst with IDC's Mobile Devices Technology and Trends team. "The market continues to adapt to the new economic reality with both vendors and retailers exercising caution to remain profitable. In some cases, this has meant holding less inventory, or even reducing headcount. Fortunately, new features and demand for phones will help the market resist the financial pressure. We expect to see further year-over-year declines worldwide, even as some regions show signs of improvement."
As the overall market dropped 15.8 percent in 1Q09, converged mobile devices (commonly referred to as smartphones) continue to grow year on year at 4 percent. Growth within this segment was evident in Western Europe, North America, and Asia/Pacific (excluding Japan). Mobile operators have become progressively more open to raising subsidies within this segment as dependence on data revenue has increased as a result of reduced consumer demand for new handsets.
"Creativity appears to be the key to success for large mobile operators during this tough time as changes to business practices from past years have become necessary," says Ryan Reith, senior research analyst with IDC's Mobile Phone Tracker. "Some of the big operators in mature markets have shifted product portfolios, and some have smartphones accounting for as much as 50 percent of the entire handset offering. We believe this strategy will continue, along with an increase in devices that are media and messaging centric, to help operators maintain revenues."
Regional analysis
Shipments of mobile phones into North America started the year slightly higher than the same quarter a year ago even as the economic recession bit deeper into the United States and started to impact Canada. Carriers' efforts to lure customers with unlimited plans and free device promotions helped offset a sharper decline, even in the face of slower subscriber growth.
Converged mobile devices at lower price points helped stimulate consumer interest in the midst of the economic recession, providing a needed boost to shipment volumes.
As expected, the Latin American mobile phone markets took a negative turn in 1Q09 as most of the economies in the region began to see slower economic growth. In addition, local currency devaluation drove prices higher on imported phones, reducing demand. This has not deterred future plans of enterprise customers, who have voiced interest in increasing spending on mobile devices in 2009.
Much of the Western European handset market was characterized by weaker consumer confidence and lower demand, while channels, already holding low inventory, were reluctant to re-stock. This set up challenging conditions for vendors in both the traditional mobile phone and converged mobile device spaces.
Meanwhile, the CEMA market posted some positive news, as much of the inventory was cleared at the end of 2008. Shipments into the Middle East and Africa contracted at a slower pace in 1Q09, while demand in Central and Eastern Europe and Russia decreased rapidly due to currency devaluation.
Asia/Pacific: In a difficult economic climate, China and India offered signs of encouragement in 1Q09. India reported strong subscription additions during the quarter, while China's rural subsidies have helped to prop up handset demand. Still, with growth coming increasingly from lower-end segments in the region, phone makers will find their average selling prices and profit margins challenged.
Vendor highlights
Nokia saw its shipment volumes dip below the 100 million unit mark for the first time in two years, while its ASP slid due to pricing pressure and greater emphasis on lower-priced devices.
Despite these challenges, Nokia posted a healthy 33.8 percent gross margin on its devices and services, with the success coming from the 5800 XpressMusic device as well as the launch of several services including Comes With Music, Nokia Messaging, Ovi Store, and Point and Find.
Samsung returned to double-digit profitability to start the year, resulting from improved operating efficiencies and a favorable product mix for the quarter. Samsung's strong position in feature phones sustained interest during an otherwise quiet quarter, with touch devices like the F480 and messaging devices like the A767. Samsung also recently announced its first Android-powered device, the i7500, due to hit the European market in June.
LG Electronics began the year on a positive note, posting an increase in operating margins despite a year-over-year decrease in shipment volumes. Driving its improvement was a combination of cost, supply chain, and operational efficiencies as well as warm reception for its touch screen, messaging, and digital imaging devices.
Even as the recession continues, the company is targeting double-digit sequential growth in 2Q09 with the release of high-end models to key regions as well as low-cost devices into emerging markets.
Motorola, although posting another quarter of operational loss, showed signs of improvement to start 2009. Co-CEO Sanjay Jha underscored the company's operational effectiveness and cost savings, noting the reduction in operational loss compared to the previous quarter.
In addition, Jha highlighted plans to add more smartphones to its portfolio before the end of the year. During the quarter, Motorola launched its Evoke QA4 and MOTOSURF A3100, as well as the industry's first eco-friendly device, the MOTO W233 Renew.
Sony Ericsson saw its market share decline as several key markets moved away from mid- and high-tier devices towards low-cost devices, where the company does not compete. Meanwhile, the company continued to build its content and services platform, with roll out of PlayNow Plus, Movies, and Arena across Europe. Although Sony Ericsson has been implementing a cost reduction plan since the summer of 2008, President Komiyama cited further need to reduce costs and headcount.
Top Five Mobile Phone Vendors, Shipments, and Market Share, Q1 2009
(Units in Millions)
Source: IDC Worldwide Quarterly Mobile Phone Tracker, April 30, 2009Note: Vendor shipments are branded shipments and exclude OEM sales for all vendors.
Vopium first mobile VoIP application on BlackBerry App World
COPENHAGEN, DENMARK & LONDON, UK: Vopium has launched its free application on the BlackBerry App World.
As the world’s first mobile VoIP application available on BlackBerry App World, the launch cements Vopium’s commitment to offering consumers and businesses worldwide a free and heavily-discounted international communications service.
Vopium’s award winning technology takes advantage of 3G, GSM, WiFi and GPRS networks and doesn’t limit users to just using WiFi hotspots. Vopium automatically re-routes calls via the cheapest available route, ensuring that customers are always able to save money when calling international numbers.
Once downloaded, the Vopium application on BlackBerry App World seamlessly integrates with the address book. It intelligently recognises international numbers and then automatically re-routes calls without the need for user input. When an international number is dialed, the call is made using the cheapest method available while also preserving the highest level of call quality.
The launch of Vopium on BlackBerry App World comes hot on the heels of the company’s iPhone application. Vopium is now compatible with more than 500 devices across all operating systems including Windows Mobile, Symbian and Java. Users that download and register Vopium from BlackBerry’s App World, will receive 30 minutes of free calls and 30 text messages (SMS). View a step-by-step registration guide for BlackBerry.
“Whilst consumers and businesses alike are looking to save money where they can, they don’t want to compromise on quality. Vopium is dedicated to helping friends, families and businesses communicate, regardless of where they are in the world, providing the same high level of call quality they’re used to receiving with their mobile operators,” said Vopium CEO, Tanveer Sharif. “Vopium on BlackBerry App World will enable the millions of BlackBerry users to significantly cut their international call costs whether these are for business or pleasure.”
The Vopium application will be available in the BlackBerry App World from 5pm GMT on May 1.
Vopium: Key Facts
* Vopium is compatible with more than 500 handsets across Java, Symbian, BlackBerry RIM, and Windows Mobile, as well as offering a complete iPhone solution.
* Vopium is free to download at www.vopium.com; BlackBerry users can download the application directly from the BlackBerry App World.
* Vopium re-routes international calls as a local call to a Vopium gateway and then via global traffic carriers as ordinary voice traffic in order to ensure voice quality.
* All new users are given 30 minutes of talk time and 30 international SMS for free.
* Calling internationally with Vopium can result in up to 90 percent savings versus traditional carrier rates; click here for an overview of current pricing.
* Calls made through Vopium are always routed using the cheapest method while preserving the highest quality.
* Vopium Wi-Fi users can call each other around the world for free.
* Vopium users keep their own mobile number and SIM card, and maintain their numeric identity when making calls.
* When a user calls from their home country, a local rate may be applied by their operator.
* When calling from abroad a roaming charge will be applied by the subscriber’s operator.
* Wi-Fi calls made with Vopium will not incur additional charges from a subscriber’s operator.
As the world’s first mobile VoIP application available on BlackBerry App World, the launch cements Vopium’s commitment to offering consumers and businesses worldwide a free and heavily-discounted international communications service.
Vopium’s award winning technology takes advantage of 3G, GSM, WiFi and GPRS networks and doesn’t limit users to just using WiFi hotspots. Vopium automatically re-routes calls via the cheapest available route, ensuring that customers are always able to save money when calling international numbers.
Once downloaded, the Vopium application on BlackBerry App World seamlessly integrates with the address book. It intelligently recognises international numbers and then automatically re-routes calls without the need for user input. When an international number is dialed, the call is made using the cheapest method available while also preserving the highest level of call quality.
The launch of Vopium on BlackBerry App World comes hot on the heels of the company’s iPhone application. Vopium is now compatible with more than 500 devices across all operating systems including Windows Mobile, Symbian and Java. Users that download and register Vopium from BlackBerry’s App World, will receive 30 minutes of free calls and 30 text messages (SMS). View a step-by-step registration guide for BlackBerry.
“Whilst consumers and businesses alike are looking to save money where they can, they don’t want to compromise on quality. Vopium is dedicated to helping friends, families and businesses communicate, regardless of where they are in the world, providing the same high level of call quality they’re used to receiving with their mobile operators,” said Vopium CEO, Tanveer Sharif. “Vopium on BlackBerry App World will enable the millions of BlackBerry users to significantly cut their international call costs whether these are for business or pleasure.”
The Vopium application will be available in the BlackBerry App World from 5pm GMT on May 1.
Vopium: Key Facts
* Vopium is compatible with more than 500 handsets across Java, Symbian, BlackBerry RIM, and Windows Mobile, as well as offering a complete iPhone solution.
* Vopium is free to download at www.vopium.com; BlackBerry users can download the application directly from the BlackBerry App World.
* Vopium re-routes international calls as a local call to a Vopium gateway and then via global traffic carriers as ordinary voice traffic in order to ensure voice quality.
* All new users are given 30 minutes of talk time and 30 international SMS for free.
* Calling internationally with Vopium can result in up to 90 percent savings versus traditional carrier rates; click here for an overview of current pricing.
* Calls made through Vopium are always routed using the cheapest method while preserving the highest quality.
* Vopium Wi-Fi users can call each other around the world for free.
* Vopium users keep their own mobile number and SIM card, and maintain their numeric identity when making calls.
* When a user calls from their home country, a local rate may be applied by their operator.
* When calling from abroad a roaming charge will be applied by the subscriber’s operator.
* Wi-Fi calls made with Vopium will not incur additional charges from a subscriber’s operator.
Palm Pre aims at iPhone: iSuppli
EL SEGUNDO: Palm Inc. is aiming high with its new Pre, a smart phone that rival’s Apple Inc.’s iPhone in terms of slickness—and in terms of hardware features—according to a virtual teardown conducted by iSuppli Corp.
The Palm Pre carries a materials cost of $137.83 and a combined total projected Bill-of-Materials (BOM) of $170.02 which includes hardware, manufacturing and software and IP licensing costs, according to an estimate from iSuppli. Since the Pre is not yet shipping, iSuppli has not conducted an actual physical teardown of the product.
However, iSuppli has produced an estimate of the Pre’s hardware and manufacturing costs based on second-quarter component pricing and assembly pricing from the company’s Mobile Handset Cost Model to develop this cost analysis. An iSuppli cross-functional team also participated in developing the virtual teardown, including experts in memory, displays, baseband, component pricing, mobile handsets and wireless connectivity.
“The similarity in features between the Pre and the iPhone clearly reveals the mark Palm is trying to hit,” said Tina Teng, senior analyst, wireless communications, for iSuppli.
From a user perspective, Palm seems to be right on target, combining a multi-touch display interface with an intuitive operating system that makes operation easier and more convenient to use, according to Teng. The Pre is the only announced smart phone besides the iPhone to support a multi-touch display interface, a feature that allows multiple simultaneous touch inputs.
“The use of a multi-touch screen—a key allure of the iPhone—and Palm’s innovative WebOS operating system, are likely to allow the pre to appeal to a broad range of consumers, going far beyond the company’s core group of business-oriented customers,” Teng said.
Outside of the user interface and software, the Pre’s other features match up well with the iPhone 3G and the other lineup of “iPhone killers” including the BlackBerry Storm. These features include 3G wireless broadband, an accelerometer, an ambient light sensor, a proximity sensor, large capacity memory for storage, Wi-Fi and a 3-megapixel camera.
Pre’s price tag
iSuppli’s total Pre cost estimate of $170.02 consists of a hardware cost of $137.83, including the battery, $9.58 for manufacturing and basic test costs and software & licensing cost of $22.61. iSuppli is projecting that Palm will try to sell the Palm Pre to Sprint Nextel at a price of about $300.
However, as is the case with virtually all mobile phones, the Pre’s price to consumers will be lower, at about $200, due to the wireless operator’s subsidy. Software and licensing includes the cost of intellectual property, royalties and licensing fee. Not included in this analysis are shipping, logistics, marketing and other channel costs.
The figure presents a summary of the results of iSuppli’s cost analysis of the Pre.
BOM breakdown
The combination of the display and touch screen module is expected to be the Pre's most expensive single subsystem, at $39.51, representing 23.2 percent of the device's BOM. iSuppli believes the Pre employs a 3.1-inch TFT-LCD screen that has a pixel format of 320 by 480 pixels and supports the display of 16 million colors. The display subsystem also likely includes a capacitive touch screen overlay that allows multi-touch input through software.
Other significant contributors to the Pre's cost include:
* 8GBytes of NAND flash memory for storage, accounting for $15.96, or 9.4 percent of the Pre’s total BOM.
* A dual-band CDMA EVDO air interface, at a cost of $15.41, OR 9.1 percent of the total BOM.
* The 3-megapixel camera, costing $12.39, or 7.3 percent of the BOM.
Can Pre help Palm get a leg up on the market?
With the arrival of the iPhone and a range of competitive products, Palm in recent years has been suffering a decline in its already-minor share of global smart phone sales. Palm's share of global smart phone shipments declined to 2 percent in 2008, down from 2.9 percent in 2006, according to iSuppli.
Can the Pre reverse Palm's slide and allow the company to become a more significant player in the smart phone market?
“Palm has been known for years for its touch screen enabled PDA devices, its easy to use, simple operating system and its Treo smart phone product line,” Teng observed. “However, just a glance at the Pre at CES has changed the industry’s opinions about Palm, showing it is a company that can be competitive with Apple iPhone or any other leading-edge product in the global smart phone market.”
The Palm Pre carries a materials cost of $137.83 and a combined total projected Bill-of-Materials (BOM) of $170.02 which includes hardware, manufacturing and software and IP licensing costs, according to an estimate from iSuppli. Since the Pre is not yet shipping, iSuppli has not conducted an actual physical teardown of the product.
However, iSuppli has produced an estimate of the Pre’s hardware and manufacturing costs based on second-quarter component pricing and assembly pricing from the company’s Mobile Handset Cost Model to develop this cost analysis. An iSuppli cross-functional team also participated in developing the virtual teardown, including experts in memory, displays, baseband, component pricing, mobile handsets and wireless connectivity.
“The similarity in features between the Pre and the iPhone clearly reveals the mark Palm is trying to hit,” said Tina Teng, senior analyst, wireless communications, for iSuppli.
From a user perspective, Palm seems to be right on target, combining a multi-touch display interface with an intuitive operating system that makes operation easier and more convenient to use, according to Teng. The Pre is the only announced smart phone besides the iPhone to support a multi-touch display interface, a feature that allows multiple simultaneous touch inputs.
“The use of a multi-touch screen—a key allure of the iPhone—and Palm’s innovative WebOS operating system, are likely to allow the pre to appeal to a broad range of consumers, going far beyond the company’s core group of business-oriented customers,” Teng said.
Outside of the user interface and software, the Pre’s other features match up well with the iPhone 3G and the other lineup of “iPhone killers” including the BlackBerry Storm. These features include 3G wireless broadband, an accelerometer, an ambient light sensor, a proximity sensor, large capacity memory for storage, Wi-Fi and a 3-megapixel camera.
Pre’s price tag
iSuppli’s total Pre cost estimate of $170.02 consists of a hardware cost of $137.83, including the battery, $9.58 for manufacturing and basic test costs and software & licensing cost of $22.61. iSuppli is projecting that Palm will try to sell the Palm Pre to Sprint Nextel at a price of about $300.
However, as is the case with virtually all mobile phones, the Pre’s price to consumers will be lower, at about $200, due to the wireless operator’s subsidy. Software and licensing includes the cost of intellectual property, royalties and licensing fee. Not included in this analysis are shipping, logistics, marketing and other channel costs.
The figure presents a summary of the results of iSuppli’s cost analysis of the Pre.BOM breakdown
The combination of the display and touch screen module is expected to be the Pre's most expensive single subsystem, at $39.51, representing 23.2 percent of the device's BOM. iSuppli believes the Pre employs a 3.1-inch TFT-LCD screen that has a pixel format of 320 by 480 pixels and supports the display of 16 million colors. The display subsystem also likely includes a capacitive touch screen overlay that allows multi-touch input through software.
Other significant contributors to the Pre's cost include:
* 8GBytes of NAND flash memory for storage, accounting for $15.96, or 9.4 percent of the Pre’s total BOM.
* A dual-band CDMA EVDO air interface, at a cost of $15.41, OR 9.1 percent of the total BOM.
* The 3-megapixel camera, costing $12.39, or 7.3 percent of the BOM.
Can Pre help Palm get a leg up on the market?
With the arrival of the iPhone and a range of competitive products, Palm in recent years has been suffering a decline in its already-minor share of global smart phone sales. Palm's share of global smart phone shipments declined to 2 percent in 2008, down from 2.9 percent in 2006, according to iSuppli.
Can the Pre reverse Palm's slide and allow the company to become a more significant player in the smart phone market?
“Palm has been known for years for its touch screen enabled PDA devices, its easy to use, simple operating system and its Treo smart phone product line,” Teng observed. “However, just a glance at the Pre at CES has changed the industry’s opinions about Palm, showing it is a company that can be competitive with Apple iPhone or any other leading-edge product in the global smart phone market.”
Mobile operators resiliently beating recession: Ovum
LONDON, UK: Mobile operators are comfortably and steadily beating the recession. This is according to the findings of a new report from global advisory and consulting firm Ovum, titled ‘Mobile operators in a recession: lessons and coping strategies.’
Ovum’s report tracked the performance of mobile operators across all regions in the world for 2008. Overall, operators maintained revenue and customer growth during the period, but the rate of growth is down.
While most operators in emerging markets are yet to see any significant pressures on their performance, operators in countries such as the US and across Europe, where the recession has had dramatic impact, operators’ revenues are holding out. Indeed, it is not about immunity from the recession per se, but rather, adaptability to the downturn.
“It is comforting that mobile operators have shown remarkable resilience”, says Emeka Obiodu, senior analyst at Ovum and lead author of the report. “Whereas other industries have gone to the government with their begging bowls, mobile operators are actually pledging to invest billions to roll out a new high speed mobile network. In fact, after scouring the world, we are yet to find any mobile operator that is calamitously struggling solely because of the recession.”
The report projected the three key mechanisms of how the recession affects mobile operators:
· The threat to the number of revenue generating customers has yet to materialize as operators are generally still growing and adding customers.
· While the fear that existing customers will reduce their spending is valid, mobile operators have taken steps to avoid or ameliorate drastic impact.
· The biggest threat to mobile operators is that currency fluctuations reduces the value of the revenue they get. Lower value means it is difficult to maintain repayment on dollar or euro denominated debts and to fund new network investment.
The report warns that going forward mobile operators have to get back to worrying about competition and regulation, as these are the main challenges facing them.
“It is no use bickering about the recession when rivals are positioning themselves to outsmart you. Neither is it savvy to fret about the fall in roaming revenues from business travellers when the EU can force roaming prices down easily”, says Obiodu. “On many occasions where an operator has complained about the recession, it is possible to show a corresponding non-recessionary force at play.”
However, Obiodu warns that the recession will force a change in future direction for operators. “While the short term impact is limited, the recession will ultimately engineer a paradigm shift in strategic thinking across the industry. On the ground, the basics of the industry will surely remain the same, but the approach to service delivery will eventually change.”
Ovum’s report tracked the performance of mobile operators across all regions in the world for 2008. Overall, operators maintained revenue and customer growth during the period, but the rate of growth is down.
While most operators in emerging markets are yet to see any significant pressures on their performance, operators in countries such as the US and across Europe, where the recession has had dramatic impact, operators’ revenues are holding out. Indeed, it is not about immunity from the recession per se, but rather, adaptability to the downturn.
“It is comforting that mobile operators have shown remarkable resilience”, says Emeka Obiodu, senior analyst at Ovum and lead author of the report. “Whereas other industries have gone to the government with their begging bowls, mobile operators are actually pledging to invest billions to roll out a new high speed mobile network. In fact, after scouring the world, we are yet to find any mobile operator that is calamitously struggling solely because of the recession.”
The report projected the three key mechanisms of how the recession affects mobile operators:
· The threat to the number of revenue generating customers has yet to materialize as operators are generally still growing and adding customers.
· While the fear that existing customers will reduce their spending is valid, mobile operators have taken steps to avoid or ameliorate drastic impact.
· The biggest threat to mobile operators is that currency fluctuations reduces the value of the revenue they get. Lower value means it is difficult to maintain repayment on dollar or euro denominated debts and to fund new network investment.
The report warns that going forward mobile operators have to get back to worrying about competition and regulation, as these are the main challenges facing them.
“It is no use bickering about the recession when rivals are positioning themselves to outsmart you. Neither is it savvy to fret about the fall in roaming revenues from business travellers when the EU can force roaming prices down easily”, says Obiodu. “On many occasions where an operator has complained about the recession, it is possible to show a corresponding non-recessionary force at play.”
However, Obiodu warns that the recession will force a change in future direction for operators. “While the short term impact is limited, the recession will ultimately engineer a paradigm shift in strategic thinking across the industry. On the ground, the basics of the industry will surely remain the same, but the approach to service delivery will eventually change.”
Telepresence grows in Asia-Pacific: Ovum
UK: Telepresence was a global vendor (Cisco/Tandberg/Polycom), global service provider (AT&T/BT/Verizon Business) story. That changed recently when Hong Kong-based CPCNet launched a managed high-definition (HD) video conferencing solution, VC2, and China’s Huawei Technologies launched its own line of telepresence equipment.
Separately, SingTel has been giving visibility to its Managed HD Video Conferencing Service, which launched at the end of 2008 and which now includes telepresence.
Global managed telepresence offers from AT&T and BT have had limited reach into the Asia-Pacific region as the operators build up network operations centre capacity to support inter-carrier and inter-company video networking. Now regional enterprise users will have potentially even more choice than counterparts in Europe and the Americas, with the emergence of these regional players.
CPCNet’s VC2 solution is provided through a range of CPE devices and allows laptop access to the conference room. CPCNet provides the managed network connectivity to maximise the efficient use of the network for video traffic at the same time as integrating different bandwidths to provide HD quality video to all participants in the conference.
The new solution provides a web portal for end users to manage video conferences and a 24×7 helpdesk to ensure quality of service can be given at all times.
CPCNet has focused its managed services model around video conferencing being accessible to all users, something that Ovum believed was essential for the development of video conferencing when telepresence made its entrance to the market in 2007. Telepresence has definitely spurred on the video conferencing market and CPCNet’s managed network connectivity is essential for the quality of video conferences using different devices.
Huawei also quietly announced its latest telepresence offering. It already offers a selection of end points for HD video conferencing, but this is the first move in the telepresence market.
The solution, ViewPoint Telepresence 3006, is based on open standards so that it can be interoperable over different networks and can provide HD and standard-definition conferencing to users with existing video conferencing solutions. The solution uses a wireless control to manage the call setup, which it says is simpler and more convenient to use than a telephone call.
Interoperability is key for telepresence, and Huawei has made the right choice to make sure that its solution is interoperable.
The potential for HD video conferencing in China is huge. It is an extremely useful tool to help manufacturers demonstrate their products without the need for travel. So far, telepresence deployments in China have been made by the major players in the HD video conferencing market: Tandberg, Polycom and Cisco.
The release of Huawei’s Telepresence solution will help the market grow within China. Huawei is renowned for its low-cost solutions so we may expect pricing to become more competitive for video conferencing units in the future if the Huawei solution can compete with its western competitors.
Western operators catch up in Asia-Pacific
It is not only the local players that are making moves in China. In March, AT&T announced that it would also extend its telepresence services into China during 2009 by working with local partners to provide the service. This month, Orange Business Services announced that it is upgrading its IP network in Asia-Pacific, citing video conferencing support as one of the reasons for the upgrade.
All this activity in the Chinese market shows that telcos are trying to maximise their efforts to make the most of the potential of these markets. Time will tell whether the economic downturn will restrict this growth or if the emergence of HD video conferencing will enable enterprises to make much-needed cost savings to help them through this difficult period.
-- Lucy Arole, Analyst at Ovum.
Separately, SingTel has been giving visibility to its Managed HD Video Conferencing Service, which launched at the end of 2008 and which now includes telepresence.
Global managed telepresence offers from AT&T and BT have had limited reach into the Asia-Pacific region as the operators build up network operations centre capacity to support inter-carrier and inter-company video networking. Now regional enterprise users will have potentially even more choice than counterparts in Europe and the Americas, with the emergence of these regional players.
CPCNet’s VC2 solution is provided through a range of CPE devices and allows laptop access to the conference room. CPCNet provides the managed network connectivity to maximise the efficient use of the network for video traffic at the same time as integrating different bandwidths to provide HD quality video to all participants in the conference.
The new solution provides a web portal for end users to manage video conferences and a 24×7 helpdesk to ensure quality of service can be given at all times.
CPCNet has focused its managed services model around video conferencing being accessible to all users, something that Ovum believed was essential for the development of video conferencing when telepresence made its entrance to the market in 2007. Telepresence has definitely spurred on the video conferencing market and CPCNet’s managed network connectivity is essential for the quality of video conferences using different devices.
Huawei also quietly announced its latest telepresence offering. It already offers a selection of end points for HD video conferencing, but this is the first move in the telepresence market.
The solution, ViewPoint Telepresence 3006, is based on open standards so that it can be interoperable over different networks and can provide HD and standard-definition conferencing to users with existing video conferencing solutions. The solution uses a wireless control to manage the call setup, which it says is simpler and more convenient to use than a telephone call.
Interoperability is key for telepresence, and Huawei has made the right choice to make sure that its solution is interoperable.
The potential for HD video conferencing in China is huge. It is an extremely useful tool to help manufacturers demonstrate their products without the need for travel. So far, telepresence deployments in China have been made by the major players in the HD video conferencing market: Tandberg, Polycom and Cisco.
The release of Huawei’s Telepresence solution will help the market grow within China. Huawei is renowned for its low-cost solutions so we may expect pricing to become more competitive for video conferencing units in the future if the Huawei solution can compete with its western competitors.
Western operators catch up in Asia-Pacific
It is not only the local players that are making moves in China. In March, AT&T announced that it would also extend its telepresence services into China during 2009 by working with local partners to provide the service. This month, Orange Business Services announced that it is upgrading its IP network in Asia-Pacific, citing video conferencing support as one of the reasons for the upgrade.
All this activity in the Chinese market shows that telcos are trying to maximise their efforts to make the most of the potential of these markets. Time will tell whether the economic downturn will restrict this growth or if the emergence of HD video conferencing will enable enterprises to make much-needed cost savings to help them through this difficult period.
-- Lucy Arole, Analyst at Ovum.
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