WASHINGTON, USA: From GridWeek, the Bluetooth Special Interest Group (SIG) announced an enhanced focus on the needs of manufacturers of consumer devices in the Smart Grid environment. This effort, called Bluetooth Smart Energy, addresses the needs for wireless connections of sensors and actuators in the residence.
The organization has released two key strategy documents. The first describes the market for in-home wireless in Smart Energy, domestic HVAC, and home appliances; the second is a technical justification of Bluetooth technology as the choice for these markets. Both papers are available on the Bluetooth website at www.bluetooth.com/smartenergy.
Recently, at the Bluetooth SIG Working Group Summit, an optimized business and technical structure was adopted to ensure the continued success of Bluetooth technology over the coming decade. The revised structure will allow the SIG to better address specific requirements for both existing and evolving markets. Reflecting the continuous evolution of the wireless market, the SIG has now aligned around five key focus areas: phones; automotive; home and personal computer; health and fitness; and Smart Energy.
“Ten years ago, the first Bluetooth enabled mobile phone and headset shipped,” said Michael Foley, Ph.D., executive director of the Bluetooth SIG. “In the decade since, more than three billion Bluetooth enabled devices have come to market, serving the world’s broadest range of wireless applications. By 2020, the industry could be integrating more Bluetooth chips into smart meters and home appliances than it is into mobile phones and laptops.”
The Bluetooth SIG’s more than 13,500 members deliver innovative wireless solutions to a worldwide market. Nearly every smart phone and feature phone that ships in the
developed world contains Bluetooth technology, as do most portable computers.
Integration of Bluetooth technology into vehicles has enabled a safer and richer driving experience, while lightweight, cost-effective health and fitness monitoring solutions containing Bluetooth technology enjoy broad acceptance. With the Bluetooth SIG’s embrace of Smart Energy, consumers, utilities, and vendors will now benefit from an ecosystem which has qualified more than 12,000 wireless products over the last ten years.
“Bluetooth wireless technology offers a number of key advantages for Smart Energy applications,” added Foley. “First and foremost, the industry needs assurances that a chosen wireless technology is robust, readily able to cope with interference from the multitude of other wireless products in the home. Second, the wireless technology must be sufficiently secure, ensuring billing accuracy and consumer privacy while protecting against theft of service.
“Third, the technology must be interoperable, backed up by a stringent and effective qualification program. Since Bluetooth wireless technology is the only standard that can give full assurance to each of these concerns, we are excited to publicly announce the Bluetooth Smart Energy Group, which has been working since early this year to define solutions for Smart Energy and Smart Grid applications.”
The Bluetooth specification is the only major unlicensed wireless standard that can deliver a full solution from radio to host application. Bluetooth frequency hopping technology provides robust operation in the home environment, providing a high level of assurance for interference-free communication.
“The comprehensive scope of our specifications enables Bluetooth technology to provide an integrated solution that can cope with interference and which is optimized to have the lowest power consumption for these applications,” said Tom Siep, chairman of the Bluetooth Smart Energy Group.
“That places Bluetooth technology as the prime candidate for the Smart Energy market, giving manufacturers and utilities the confidence that their products and data will be secure and reliable. The Bluetooth SIG is confident in our projections for success as the world addresses the need to make better use of energy.”
Tuesday, October 19, 2010
S1 mobile adoption on the rise
BAI 2010 Retail Delivery, Booth #1053; NORCROSS & LAS VEGAS, USA: S1 Corp., a leading global provider of payments and financial services software solutions, announced that more than 35 customers across three continents have licensed the S1 Mobile application.
In addition, S1 mobile-enabled customer applications are available on the App StoreSM for the following financial institutions: Trustmark, Mercantile Bank of Michigan, First Community Bank, and Ventura County Credit Union.
According to Jupiter Research, "the number of mobile subscribers who use their phones for mobile banking will exceed 400 million globally by 2013, which is double the number of users this year."
As mobile banking popularity and usage continues to increase, the need for financial institutions to offer compelling and convenient mobile banking and payments applications is vital to support a customer base that is managing more of their daily lives with mobile smart devices. In order to meet that demand, S1 continues to focus on delivering rich new features and applications. S1's banking customers can enhance their mobile banking and payments offerings with an iPad and Blackberry application and a personal payments feature through a relationship with PayPal.
"The S1 Mobile application has enabled us to truly deliver our customers anytime, anywhere access to their financial information," said Joe Gibbs, senior VP, e-Business Services, Trustmark.
"Within the first month of launching our Mobile solution at the beginning of June, which also included an iPhone app, we had over 3,200 downloads of our application from the App Store. We are also using S1's launcher app for BlackBerry and are in the process of testing an iPad app from S1. Our customers have given us very positive feedback, and we are tremendously excited about the potential mobile presents to both Trustmark and our customers."
Trustmark National Bank is a subsidiary of Trustmark Corporation, a $9.8 billion asset, diversified financial services company, with locations in Florida, Mississippi, Tennessee and Texas.
"We have been extremely pleased with S1's Mobile applications because our customers expect to have access to their financial lives in the same manner they manage other aspects of their lives through mobile devices," said John Hanley, Advertising and PR officer, Sunflower Bank.
"We did very little marketing, in fact just a single promotion. Within our first day live, we had 300 customers enroll, and by the end of the first week in production, there were 1,000 customers live without any support calls for help with the service." Sunflower Bank is a $1.8-billion community bank headquartered in Salina, Kansas with 33 branch locations throughout Kansas and Colorado.
Mobile banking adoption continues to grow globally and S1 customers are increasingly meeting the demand for on-the-go banking solutions. The S1 Mobile platform offers flexible options, including mobile Internet browser (WAP/xHTML) access, SMS (with an option for IVR PIN) and downloadable applications, which support all key mobile channels, enabling deeper, more profitable customer relationships.
"Mobile banking has quickly become an essential component of a successful multi-channel banking environment," said Johann Dreyer, CEO, S1 Corp.
"We are seeing increased interest for mobile solutions across the global markets we serve. As demand for more convenient banking and payments services continue to grow, financial institutions that deploy S1 Mobile are positioned to deliver real-time mobile payment solutions that ensure they remain an integral part of the payment process and create more revenue generating opportunities."
In addition, S1 mobile-enabled customer applications are available on the App StoreSM for the following financial institutions: Trustmark, Mercantile Bank of Michigan, First Community Bank, and Ventura County Credit Union.
According to Jupiter Research, "the number of mobile subscribers who use their phones for mobile banking will exceed 400 million globally by 2013, which is double the number of users this year."
As mobile banking popularity and usage continues to increase, the need for financial institutions to offer compelling and convenient mobile banking and payments applications is vital to support a customer base that is managing more of their daily lives with mobile smart devices. In order to meet that demand, S1 continues to focus on delivering rich new features and applications. S1's banking customers can enhance their mobile banking and payments offerings with an iPad and Blackberry application and a personal payments feature through a relationship with PayPal.
"The S1 Mobile application has enabled us to truly deliver our customers anytime, anywhere access to their financial information," said Joe Gibbs, senior VP, e-Business Services, Trustmark.
"Within the first month of launching our Mobile solution at the beginning of June, which also included an iPhone app, we had over 3,200 downloads of our application from the App Store. We are also using S1's launcher app for BlackBerry and are in the process of testing an iPad app from S1. Our customers have given us very positive feedback, and we are tremendously excited about the potential mobile presents to both Trustmark and our customers."
Trustmark National Bank is a subsidiary of Trustmark Corporation, a $9.8 billion asset, diversified financial services company, with locations in Florida, Mississippi, Tennessee and Texas.
"We have been extremely pleased with S1's Mobile applications because our customers expect to have access to their financial lives in the same manner they manage other aspects of their lives through mobile devices," said John Hanley, Advertising and PR officer, Sunflower Bank.
"We did very little marketing, in fact just a single promotion. Within our first day live, we had 300 customers enroll, and by the end of the first week in production, there were 1,000 customers live without any support calls for help with the service." Sunflower Bank is a $1.8-billion community bank headquartered in Salina, Kansas with 33 branch locations throughout Kansas and Colorado.
Mobile banking adoption continues to grow globally and S1 customers are increasingly meeting the demand for on-the-go banking solutions. The S1 Mobile platform offers flexible options, including mobile Internet browser (WAP/xHTML) access, SMS (with an option for IVR PIN) and downloadable applications, which support all key mobile channels, enabling deeper, more profitable customer relationships.
"Mobile banking has quickly become an essential component of a successful multi-channel banking environment," said Johann Dreyer, CEO, S1 Corp.
"We are seeing increased interest for mobile solutions across the global markets we serve. As demand for more convenient banking and payments services continue to grow, financial institutions that deploy S1 Mobile are positioned to deliver real-time mobile payment solutions that ensure they remain an integral part of the payment process and create more revenue generating opportunities."
Monday, October 18, 2010
Nokia N8 smart phone matches iPhone 4 costs
EL SEGUNDO, USA: Despite major differences in features and component selection, Nokia’s new N8 smart phone carries a Bill of Materials (BOM) cost nearly identical to that of the iPhone 4, according to a preliminary teardown analysis conducted by iSuppli Corp.
The N8’s BOM amounts to $187.47, according to a preliminary estimate from iSuppli. The 16Gbyte version of the iPhone 4’s BOM came in at $187.51, based on pricing from iSuppli’s teardown in June, although Apple’s component prices have eroded since that time.
“The N8’S BOM shows Nokia is targeting the product squarely at the touch-screen smart phone segment now dominated by the iPhone,” said Andrew Rassweiler, director, principal analyst and teardown services manager, for iSuppli. “Although the two phones differ markedly in key areas, including the camera and the core silicon, both are designed to hit similar production cost budgets.”
When the approximately $9.50 manufacturing expense of the N8 is factored in, the total cost to produce the smart phone rises to $196.97.
The table presents iSuppli’s preliminary estimate of the N8’s BOM and manufacturing cost. Please note that iSuppli’s teardown assessment accounts only for hardware and manufacturing costs, and does not take into consideration other expenses such as R&D, software, licensing and royalties.
Source: iSuppli, USA.
Costly camera
Although not the most costly design feature of the N8, the camera stands out as one of the most striking differences between the N8 and the iPhone 4—and between the N8 and other recent smart phone designs. The primary camera in the N8 is based on a CMOS sensor with a 12-megapixel resolution, compared to just 5 megapixels for the iPhone—and 8 megapixels for the most cutting-edge smart phone designs.
“The 12-megapixel resolution represents the leading edge of camera resolution in handsets, and the N8 is the first smart phone model iSuppli has torn down with such an advanced image sensor,” Rassweiler said. “Apple has never regarded the camera module as a key differentiating feature on iPhones, and has always spent its budget elsewhere within the design. Clearly, Nokia wants the N8 to be distinguished in this aspect.”
In addition to the 12-megapixel camera module is a secondary VGA resolution module and a conventional Xenon flash unit, which allows the N8 to rise to the quality level of digital still cameras in low-light conditions. Most other smart phones employ white LED lights to help in low-light conditions—a solution generally considered to be unsatisfactory.
The camera subsystem costs $31.08, including both camera modules and the Xenon flash unit. This makes it the third most costly subsystem of the N8.
Displays of uniqueness
The most expensive subsystem within the N8, like most other smart phones, is the display and capacitive touch screen section. The technology used in this section also represents one of the bigger differences between the iPhone and N8.
The iPhone 4 employs a 3.5-inch LCD using advanced Low-Temperature Polysilicon (LTPS) and In-Plane Switching (IPS) technology. In contrast, the N8 employs an alternative display technology to the LCD—the Active Matrix Organic Light Emitting Diode (AMOLED).
The AMOLED display is supplied by Samsung Mobile Display, which also provides similar screens commonly found on high-end Android phones.
Not long ago, AMOLED was an exotic new display technology. However, the quality of displays and touchscreens has become the key differentiating feature for smart phone manufacturers. This is especially true now that the display and touch screen practically define the user’s experience as the primary output and input for smart phones.
The N8’s display and touch screen subsystem, which also includes a controller Integrated Circuit (IC) made by Synaptics Inc., is the most expensive portion of the smart phone, carrying a collective $39.25 cost for Nokia.
Valuable memories
Unlike Apple designs that use conventional NAND, the Nokia N8 employs a variant of NAND flash memory known as Embedded MultiMediaCard (eMMC). eMMC NAND flash can be slightly more expensive than the conventional variety used in the iPhone 4.
eMMC combines memory with interface circuitry and a controller in a single package, facilitating the design cycle for those who use it in their designs. Although memory is always multisourced, Toshiba was found to be the source in the sample of the N8 iSuppli’s Teardown Analysis Service used for this analysis.
When 4Gbits of additional OneNAND memory and mobile Double Data Rate (DDR) DRAM from Samsung are added in, the memory subsystem carries a total cost of $37.12, making it the second most expensive portion of the N8.
Processor particulars
Fourth on the cost ranking is the applications, media and baseband processing subsystem, at $22.00.
This section features a digital baseband processor IC that is a custom part manufactured by Texas Instruments Inc. It also sports a Broadcom Corp. mobile multimedia processor chip.
The Broadcom multimedia chip, the first time iSuppli has seen this device in a product teardown, features HD support, including the High Definition Multimedia Interface (HDMI), allowing the transfer of 720p-format video. iSuppli hasn’t identified any discrete HDMI transmitter ICs, and doesn’t expect to find them. The processing subsystem also features a Texas Instruments analog baseband/power management chip.
Supplier lineup
Other notable suppliers and components in the N8 include:
* Murata Manufacturing Co. Ltd.’s Bluetooth/wireless local area network IC.
* Texas Instruments’ single-chip GPS device and audio power amplifier.
* ST-Ericsson SA’s RF Transceiver, RF power management IC and power reset device.
* Renesas Electronics Corp.’s Power Amplifier.
* Epcos AG’s front-end module.
* AKM Semiconductor Inc.’s electronic compass,
* STMicroelectronics’ MEMS accelerometer.
Source: iSuppli, USA.
The N8’s BOM amounts to $187.47, according to a preliminary estimate from iSuppli. The 16Gbyte version of the iPhone 4’s BOM came in at $187.51, based on pricing from iSuppli’s teardown in June, although Apple’s component prices have eroded since that time.
“The N8’S BOM shows Nokia is targeting the product squarely at the touch-screen smart phone segment now dominated by the iPhone,” said Andrew Rassweiler, director, principal analyst and teardown services manager, for iSuppli. “Although the two phones differ markedly in key areas, including the camera and the core silicon, both are designed to hit similar production cost budgets.”
When the approximately $9.50 manufacturing expense of the N8 is factored in, the total cost to produce the smart phone rises to $196.97.
The table presents iSuppli’s preliminary estimate of the N8’s BOM and manufacturing cost. Please note that iSuppli’s teardown assessment accounts only for hardware and manufacturing costs, and does not take into consideration other expenses such as R&D, software, licensing and royalties.
Source: iSuppli, USA.Costly camera
Although not the most costly design feature of the N8, the camera stands out as one of the most striking differences between the N8 and the iPhone 4—and between the N8 and other recent smart phone designs. The primary camera in the N8 is based on a CMOS sensor with a 12-megapixel resolution, compared to just 5 megapixels for the iPhone—and 8 megapixels for the most cutting-edge smart phone designs.
“The 12-megapixel resolution represents the leading edge of camera resolution in handsets, and the N8 is the first smart phone model iSuppli has torn down with such an advanced image sensor,” Rassweiler said. “Apple has never regarded the camera module as a key differentiating feature on iPhones, and has always spent its budget elsewhere within the design. Clearly, Nokia wants the N8 to be distinguished in this aspect.”
In addition to the 12-megapixel camera module is a secondary VGA resolution module and a conventional Xenon flash unit, which allows the N8 to rise to the quality level of digital still cameras in low-light conditions. Most other smart phones employ white LED lights to help in low-light conditions—a solution generally considered to be unsatisfactory.
The camera subsystem costs $31.08, including both camera modules and the Xenon flash unit. This makes it the third most costly subsystem of the N8.
Displays of uniqueness
The most expensive subsystem within the N8, like most other smart phones, is the display and capacitive touch screen section. The technology used in this section also represents one of the bigger differences between the iPhone and N8.
The iPhone 4 employs a 3.5-inch LCD using advanced Low-Temperature Polysilicon (LTPS) and In-Plane Switching (IPS) technology. In contrast, the N8 employs an alternative display technology to the LCD—the Active Matrix Organic Light Emitting Diode (AMOLED).
The AMOLED display is supplied by Samsung Mobile Display, which also provides similar screens commonly found on high-end Android phones.
Not long ago, AMOLED was an exotic new display technology. However, the quality of displays and touchscreens has become the key differentiating feature for smart phone manufacturers. This is especially true now that the display and touch screen practically define the user’s experience as the primary output and input for smart phones.
The N8’s display and touch screen subsystem, which also includes a controller Integrated Circuit (IC) made by Synaptics Inc., is the most expensive portion of the smart phone, carrying a collective $39.25 cost for Nokia.
Valuable memories
Unlike Apple designs that use conventional NAND, the Nokia N8 employs a variant of NAND flash memory known as Embedded MultiMediaCard (eMMC). eMMC NAND flash can be slightly more expensive than the conventional variety used in the iPhone 4.
eMMC combines memory with interface circuitry and a controller in a single package, facilitating the design cycle for those who use it in their designs. Although memory is always multisourced, Toshiba was found to be the source in the sample of the N8 iSuppli’s Teardown Analysis Service used for this analysis.
When 4Gbits of additional OneNAND memory and mobile Double Data Rate (DDR) DRAM from Samsung are added in, the memory subsystem carries a total cost of $37.12, making it the second most expensive portion of the N8.
Processor particulars
Fourth on the cost ranking is the applications, media and baseband processing subsystem, at $22.00.
This section features a digital baseband processor IC that is a custom part manufactured by Texas Instruments Inc. It also sports a Broadcom Corp. mobile multimedia processor chip.
The Broadcom multimedia chip, the first time iSuppli has seen this device in a product teardown, features HD support, including the High Definition Multimedia Interface (HDMI), allowing the transfer of 720p-format video. iSuppli hasn’t identified any discrete HDMI transmitter ICs, and doesn’t expect to find them. The processing subsystem also features a Texas Instruments analog baseband/power management chip.
Supplier lineup
Other notable suppliers and components in the N8 include:
* Murata Manufacturing Co. Ltd.’s Bluetooth/wireless local area network IC.
* Texas Instruments’ single-chip GPS device and audio power amplifier.
* ST-Ericsson SA’s RF Transceiver, RF power management IC and power reset device.
* Renesas Electronics Corp.’s Power Amplifier.
* Epcos AG’s front-end module.
* AKM Semiconductor Inc.’s electronic compass,
* STMicroelectronics’ MEMS accelerometer.
Source: iSuppli, USA.
Android becomes smart phone market’s secret sauce for success in Q2
EL SEGUNDO, USA: In a sign of the growing momentum behind Google Corp.’s Android, makers of handsets utilizing the operating system represented the majority of the fastest-growing firms among the Top 10 smart phone brands in the second quarter , according to the mobile and wireless research firm iSuppli Corp.
Droid phone specialist HTC Corp. achieved industry-leading growth, with its smart phone shipments rising by a stunning 63.1 percent in the second quarter compared to the first.
Meanwhile, on the strength of its Android-based Galaxy line of smart phones, Samsung Electronics posted the second strongest performance, with a 55.6 percent sequential rise. New Android licensee Sony Ericsson came in fourth in terms of growth, with shipments rising by 15.4 percent. Finally, Droid-focused Motorola Inc. ranked fifth, with an increase of 12.5 percent.
The table presents iSuppli’s ranking of the Top 10 smart phone brands in the second quarter.
Source: iSuppli, USA.
“Every brand that has put effort into designing smart phones using Google’s mobile operating system is riding the Android wave,” said Tina Teng, senior analyst for wireless communications at iSuppli. “From the spectacular growth of HTC and Samsung, to the steady advances of Motorola, Android is the secret sauce for smart phone growth for many companies in 2010.”
HTC on center stage
HTC’s Android success can be traced to wireless operators that want to showcase the capabilities of their upgraded networks by offering handsets with sophisticated features to subscribers.
For example, US wireless carrier Sprint Nextel Corp. is offering HTC’s EVO 4G, a feature-packed Android handset that can capitalize on the high speed of its WiMAX-based 4G network. To keep its momentum going, HTC is expected to offer an Android phone that supports Long Term Evolution (LTE)—the other major standard for 4G.
HTC’s share of global smart phone shipments in the second quarter rose to 8 percent, up from 5.3 percent in the first quarter, allowing the company to solidify its No. 4 position in the market.
Meanwhile, the share of No.5-ranked Samsung rose to 4.6 percent during the same period, up from 3.2 percent in the first quarter. The company’s advance is being driven by its Android-based Galaxy S smart phones, which are enjoying strong acceptance from consumers.
In contrast, Samsung’s phones using its own bada platform don’t appear to be garnering as much interest. The company’s ranking in the global smart phone market rose one position from sixth place in the first quarter.
With its entry into the Android smart phone marketplace in 2010, Sony Ericsson’s share of shipments climbed to 2.5 percent, up from 2.3 percent in the first quarter.
Motorola’s Droid success
While Motorola’s second-quarter growth was relatively modest compared to the high-flying results of HTC and Samsung, there are signs that the company’s decision to put all its eggs in the Android basket are paying off. On the strength of its Droid product line, Motorola now has experienced five consecutive quarters of growth starting in the second quarter of 2009—and has outgrown the overall smart phone market for the last four quarters.
Motorola’s Droid strategy is paying off. In North America, Motorola is benefitting from its advertising campaign with Verizon. Motorola also has been refreshing its smart phone portfolio constantly, keeping consumers interested in its product line.
However, even this success wasn’t enough to keep Motorola from slipping one position to sixth place, down from fifth in the first quarter because of Samsung’s prodigious growth.
Among the fastest-growing smart phone brands, the only one that cannot credit its success in the second quarter to Android was Sharp, which enjoyed the third fastest growth of 48.7 percent. Sharp only recently threw its hat into the Android arena in the fourth quarter; its advance in the second quarter was due to the company gaining market share in Japan.
Slight setback for Apple
Amid the advance of Android, Apple Inc. suffered a 4 percent drop in smart phone shipments in the second quarter. However, the decline doesn’t represent a major setback for the benchmark iPhone brand.
Apple’s decline in the second quarter was because of the transition from the iPhone 3G S to the iPhone 4. The iPhone 3G S was reaching the end of its life, causing sales to drop off. Meanwhile, Apple had trouble keeping up with iPhone 4 demand, resulting in the small decline in shipments.
The contraction caused Apple’s share of smart phone shipments to fall to 13.9 percent in the second quarter, down from 15.7 percent in the first quarter. Nonetheless, the company maintained a firm grip on third place in the global smart phone market.
Source: iSuppli, USA.
Droid phone specialist HTC Corp. achieved industry-leading growth, with its smart phone shipments rising by a stunning 63.1 percent in the second quarter compared to the first.
Meanwhile, on the strength of its Android-based Galaxy line of smart phones, Samsung Electronics posted the second strongest performance, with a 55.6 percent sequential rise. New Android licensee Sony Ericsson came in fourth in terms of growth, with shipments rising by 15.4 percent. Finally, Droid-focused Motorola Inc. ranked fifth, with an increase of 12.5 percent.
The table presents iSuppli’s ranking of the Top 10 smart phone brands in the second quarter.
Source: iSuppli, USA.“Every brand that has put effort into designing smart phones using Google’s mobile operating system is riding the Android wave,” said Tina Teng, senior analyst for wireless communications at iSuppli. “From the spectacular growth of HTC and Samsung, to the steady advances of Motorola, Android is the secret sauce for smart phone growth for many companies in 2010.”
HTC on center stage
HTC’s Android success can be traced to wireless operators that want to showcase the capabilities of their upgraded networks by offering handsets with sophisticated features to subscribers.
For example, US wireless carrier Sprint Nextel Corp. is offering HTC’s EVO 4G, a feature-packed Android handset that can capitalize on the high speed of its WiMAX-based 4G network. To keep its momentum going, HTC is expected to offer an Android phone that supports Long Term Evolution (LTE)—the other major standard for 4G.
HTC’s share of global smart phone shipments in the second quarter rose to 8 percent, up from 5.3 percent in the first quarter, allowing the company to solidify its No. 4 position in the market.
Meanwhile, the share of No.5-ranked Samsung rose to 4.6 percent during the same period, up from 3.2 percent in the first quarter. The company’s advance is being driven by its Android-based Galaxy S smart phones, which are enjoying strong acceptance from consumers.
In contrast, Samsung’s phones using its own bada platform don’t appear to be garnering as much interest. The company’s ranking in the global smart phone market rose one position from sixth place in the first quarter.
With its entry into the Android smart phone marketplace in 2010, Sony Ericsson’s share of shipments climbed to 2.5 percent, up from 2.3 percent in the first quarter.
Motorola’s Droid success
While Motorola’s second-quarter growth was relatively modest compared to the high-flying results of HTC and Samsung, there are signs that the company’s decision to put all its eggs in the Android basket are paying off. On the strength of its Droid product line, Motorola now has experienced five consecutive quarters of growth starting in the second quarter of 2009—and has outgrown the overall smart phone market for the last four quarters.
Motorola’s Droid strategy is paying off. In North America, Motorola is benefitting from its advertising campaign with Verizon. Motorola also has been refreshing its smart phone portfolio constantly, keeping consumers interested in its product line.
However, even this success wasn’t enough to keep Motorola from slipping one position to sixth place, down from fifth in the first quarter because of Samsung’s prodigious growth.
Among the fastest-growing smart phone brands, the only one that cannot credit its success in the second quarter to Android was Sharp, which enjoyed the third fastest growth of 48.7 percent. Sharp only recently threw its hat into the Android arena in the fourth quarter; its advance in the second quarter was due to the company gaining market share in Japan.
Slight setback for Apple
Amid the advance of Android, Apple Inc. suffered a 4 percent drop in smart phone shipments in the second quarter. However, the decline doesn’t represent a major setback for the benchmark iPhone brand.
Apple’s decline in the second quarter was because of the transition from the iPhone 3G S to the iPhone 4. The iPhone 3G S was reaching the end of its life, causing sales to drop off. Meanwhile, Apple had trouble keeping up with iPhone 4 demand, resulting in the small decline in shipments.
The contraction caused Apple’s share of smart phone shipments to fall to 13.9 percent in the second quarter, down from 15.7 percent in the first quarter. Nonetheless, the company maintained a firm grip on third place in the global smart phone market.
Source: iSuppli, USA.
9 million BWA/WiMAX subscribers reached in Q2 2010
MONTREAL, CANADA & MIAMI, USA: 1.8 million BWA/WiMAX subscribers were added in Q2 2010 and 2 million will be added in Q3 2010, according to the 12th issue of the 4GCounts Quarterly Report from Maravedis.
With over 600 WiMAX deployments and more than 200 devices and 60 base stations certified, the worldwide WIMAX industry accounted for over 9 million subscribers at the end of Q2 2010. Maravedis predicts 13 million BWA/WiMAX subscribers by the end of 2010. The BWA/WiMAX subscriber market share by standard was 57 percent mobile WiMAX, 25 percent fixed WiMAX and 17 percent proprietary in Q2 2010.
Maravedis also anticipates that 14 LTE networks will be operational worldwide by the end of the year 2010. "The list of operators committed to LTE has grown to 127 members as of the end of Q3 2010," said report co-author Esteban Monturus. "As several 4G spectrum auctions take place before the end of the year (especially in Europe), more operators will feel the need to set their plans regarding LTE," he added.
"Despite the hype around TD-LTE, many important questions remain unanswered. There isn't much of an ecosystem in the near term" said 4GCounts team leader Cintia Garza. "If a carrier is to deploy WiMAX now with the idea to migrate to TD-LTE in the future, a challenge emerges in how to manage the millions of WiMAX device users that it may sign up in the next 2-3 years," she added.
"WiMAX remains a viable alternative for broadband connectivity, particularly where migration to full mobility is not expectedm," said Robert Syputa, Senior Analyst and Advisor. "While the issue of migration to LTE/TD-LTE equipment is being met, operators must still consider how the subscriber device base can converted. The use of multiple-mode WiMAX/LTE is an option now worth considering," he said.
Mobile data traffic continues to be a major challenge for mobile operators. Global mobile data traffic usage increased significantly with 68 percent growth in the first half of 2010, the majority of the traffic generated comes from multimedia applications and streaming video.
This quarter's summary findings
* The residential and business WiMAX ARPU generated among operators during Q2 2010 across all regions was of $39.97 and $112.52, respectively.
* Total BWA/WiMAX revenues for the first half of 2010 totaled $1.92 billion, compared to $1.34 billion for the first half of 2009.
* Indoor modems have the largest market share accounting for over 4.2 million units or 57 percent, followed by 1.5 million USB Dongles and, 553,000 PCMCIA cards.
* Base station sectors installed base as of Q2 2010 totaled 333,323,of which 10% were deployed during the quarter.
With over 600 WiMAX deployments and more than 200 devices and 60 base stations certified, the worldwide WIMAX industry accounted for over 9 million subscribers at the end of Q2 2010. Maravedis predicts 13 million BWA/WiMAX subscribers by the end of 2010. The BWA/WiMAX subscriber market share by standard was 57 percent mobile WiMAX, 25 percent fixed WiMAX and 17 percent proprietary in Q2 2010.
Maravedis also anticipates that 14 LTE networks will be operational worldwide by the end of the year 2010. "The list of operators committed to LTE has grown to 127 members as of the end of Q3 2010," said report co-author Esteban Monturus. "As several 4G spectrum auctions take place before the end of the year (especially in Europe), more operators will feel the need to set their plans regarding LTE," he added.
"Despite the hype around TD-LTE, many important questions remain unanswered. There isn't much of an ecosystem in the near term" said 4GCounts team leader Cintia Garza. "If a carrier is to deploy WiMAX now with the idea to migrate to TD-LTE in the future, a challenge emerges in how to manage the millions of WiMAX device users that it may sign up in the next 2-3 years," she added.
"WiMAX remains a viable alternative for broadband connectivity, particularly where migration to full mobility is not expectedm," said Robert Syputa, Senior Analyst and Advisor. "While the issue of migration to LTE/TD-LTE equipment is being met, operators must still consider how the subscriber device base can converted. The use of multiple-mode WiMAX/LTE is an option now worth considering," he said.
Mobile data traffic continues to be a major challenge for mobile operators. Global mobile data traffic usage increased significantly with 68 percent growth in the first half of 2010, the majority of the traffic generated comes from multimedia applications and streaming video.
This quarter's summary findings
* The residential and business WiMAX ARPU generated among operators during Q2 2010 across all regions was of $39.97 and $112.52, respectively.
* Total BWA/WiMAX revenues for the first half of 2010 totaled $1.92 billion, compared to $1.34 billion for the first half of 2009.
* Indoor modems have the largest market share accounting for over 4.2 million units or 57 percent, followed by 1.5 million USB Dongles and, 553,000 PCMCIA cards.
* Base station sectors installed base as of Q2 2010 totaled 333,323,of which 10% were deployed during the quarter.
Telecoms operator capex still falling but poised for 9 percent rebound in 2011
Matt Walker, Principal Analyst, Ovum.
AUSTRALIA: Service provider (SP) capital expenditure (capex) has been hit hard by recent economic troubles, falling 8 percent in 2009 and on track for another 4 percent drop in 2010.
Yet, Ovum expects the global SP capex to rise 9 percent in 2011, to $303 billion. SP revenues, after declining 2 percent in 2009, are growing again, slowly: we expect 2 percent growth in 2010 and 3 percent in 2011, to $1,854 billion.
Pockets of strong growth exist, but telcos and vendors alike must be picky and open to reinventing business models as industry dynamics evolve towards 2020.
Improved economy and LTE support 2011 recovery; India on the mend
The telecoms industry remains challenged, and growth in most places is modest at best, but things are starting to improve. Looking at data for the four-quarter period ended 2Q10, global revenues grew 3.5 percent year-on-year (YoY), compared to a 2 percent decline in 3Q08–2Q09.
Capex fell 5.3 percent YoY in 3Q09–2Q10, a worse result than 2Q09 but improved from the previous three quarters, where YoY declines were in the upper single digits. Regionally, Asia-Pacific’s revenue strength has been the early driver in the global market’s pickup; India, though, was one key factor in the recent fall in global capex, along with the South & Central America region.
Looking ahead, Ovum has just updated its forecast of SP revenues and capex. For 2010, projected revenue growth of 2 percent and capex growth of -4 percent is consistent with 2Q10 actuals. In 2011, we expect modest upticks in several regional markets; revenues will track macro trends, but less saturated markets such as MEA and India will outperform.
Mobile revenues are growing at an average of 3.5 percent per year, based on the projected 2009–15 CAGR. Fixed revenues, which are shrinking in many developed countries, are still rising but just barely, at an estimated 1.3 percent CAGR in 2009–15.
Capex returns to normality in 2011 at 16.3 percent of revenues
As North America and Europe recovers, India will see the impact of its 3G spectrum auctions, reversing the recent drops in that market’s spending. Globally, we expect many large SPs to make 4G/LTE (or HSPA+) wireless, FTTx, and service- and software-layer investments aimed at reducing costs and enhancing competitiveness.
The impact is that global SP capex will grow from $277 billion in 2010 to $303 billion in 2011, resulting in a slightly increased ratio of capex-to-revenues (capital intensity) of 16.3 percent, from 15.5 percent in 2009.
The global average in 2005–08 was 16.4%, so 2011 marks a return to normality. For 2012–15, we have modest expectations for capex, likely to rise to $320 billion by 2015, with a continued shift away from fixed-line networks, as mobile hits 60 percent of the total in 2015, from 47 percent in 2005. Mobile’s share of revenues over time is comparable.
Tight capex climate requires innovation and business model revamp
Low revenue growth and predictable capex needs make telecoms sound dull: like a utility business, but without a guaranteed rate of return. Whether some parts of telecoms deserve the “utility” label is beyond this comment. What’s clear, though, is that there do remain highly profitable service-, vertical-, and region-specific markets in telecoms.
However, the more successful operators are not standing still. They are seeking out new operating models leveraging content and applications, more scale (often across borders), tighter partnerships with vendors and other third-parties on services and software, and help from regulators.
Vendors are not done consolidating, and continue to push into applications and services. The downturn helped vendors in some regards, as it pushed a few big operators to lay off or spin off and outsource key functions to their vendors. Much of this spending was previously an internal operational expense, so can represent a growth in vendors’ addressable market.
The challenge posed by Chinese vendors to their competitors has not faded, but has morphed as they have entered the mainstream. The urgency – for Ericsson, Cisco, Juniper, Tellabs, NSN, and many others – of developing offerings that can’t easily be matched by Huawei or ZTE has not gone away, and is unlikely to given the continued tight capex climate.
AUSTRALIA: Service provider (SP) capital expenditure (capex) has been hit hard by recent economic troubles, falling 8 percent in 2009 and on track for another 4 percent drop in 2010.
Yet, Ovum expects the global SP capex to rise 9 percent in 2011, to $303 billion. SP revenues, after declining 2 percent in 2009, are growing again, slowly: we expect 2 percent growth in 2010 and 3 percent in 2011, to $1,854 billion.
Pockets of strong growth exist, but telcos and vendors alike must be picky and open to reinventing business models as industry dynamics evolve towards 2020.
Improved economy and LTE support 2011 recovery; India on the mend
The telecoms industry remains challenged, and growth in most places is modest at best, but things are starting to improve. Looking at data for the four-quarter period ended 2Q10, global revenues grew 3.5 percent year-on-year (YoY), compared to a 2 percent decline in 3Q08–2Q09.
Capex fell 5.3 percent YoY in 3Q09–2Q10, a worse result than 2Q09 but improved from the previous three quarters, where YoY declines were in the upper single digits. Regionally, Asia-Pacific’s revenue strength has been the early driver in the global market’s pickup; India, though, was one key factor in the recent fall in global capex, along with the South & Central America region.
Looking ahead, Ovum has just updated its forecast of SP revenues and capex. For 2010, projected revenue growth of 2 percent and capex growth of -4 percent is consistent with 2Q10 actuals. In 2011, we expect modest upticks in several regional markets; revenues will track macro trends, but less saturated markets such as MEA and India will outperform.
Mobile revenues are growing at an average of 3.5 percent per year, based on the projected 2009–15 CAGR. Fixed revenues, which are shrinking in many developed countries, are still rising but just barely, at an estimated 1.3 percent CAGR in 2009–15.
Capex returns to normality in 2011 at 16.3 percent of revenues
As North America and Europe recovers, India will see the impact of its 3G spectrum auctions, reversing the recent drops in that market’s spending. Globally, we expect many large SPs to make 4G/LTE (or HSPA+) wireless, FTTx, and service- and software-layer investments aimed at reducing costs and enhancing competitiveness.
The impact is that global SP capex will grow from $277 billion in 2010 to $303 billion in 2011, resulting in a slightly increased ratio of capex-to-revenues (capital intensity) of 16.3 percent, from 15.5 percent in 2009.
The global average in 2005–08 was 16.4%, so 2011 marks a return to normality. For 2012–15, we have modest expectations for capex, likely to rise to $320 billion by 2015, with a continued shift away from fixed-line networks, as mobile hits 60 percent of the total in 2015, from 47 percent in 2005. Mobile’s share of revenues over time is comparable.
Tight capex climate requires innovation and business model revamp
Low revenue growth and predictable capex needs make telecoms sound dull: like a utility business, but without a guaranteed rate of return. Whether some parts of telecoms deserve the “utility” label is beyond this comment. What’s clear, though, is that there do remain highly profitable service-, vertical-, and region-specific markets in telecoms.
However, the more successful operators are not standing still. They are seeking out new operating models leveraging content and applications, more scale (often across borders), tighter partnerships with vendors and other third-parties on services and software, and help from regulators.
Vendors are not done consolidating, and continue to push into applications and services. The downturn helped vendors in some regards, as it pushed a few big operators to lay off or spin off and outsource key functions to their vendors. Much of this spending was previously an internal operational expense, so can represent a growth in vendors’ addressable market.
The challenge posed by Chinese vendors to their competitors has not faded, but has morphed as they have entered the mainstream. The urgency – for Ericsson, Cisco, Juniper, Tellabs, NSN, and many others – of developing offerings that can’t easily be matched by Huawei or ZTE has not gone away, and is unlikely to given the continued tight capex climate.
Sunday, October 17, 2010
Windows Phone 7 - most important watershed for smartphone market since iPhone
Tony Cripps, Ovum principal analyst.
MELBOURNE: There’s a huge amount resting on the launch of Windows Phone 7 for Microsoft, its device and operator partners, and for the ecosystem market in general. As such, the commercial launch of Windows Phone 7 devices by OEMs and carriers looks set to mark the most important watershed in the smartphone market since the launch of Apple’s first iPhone.
If Windows Phone 7 devices sell in large numbers, Microsoft will rightfully be able to congratulate itself for starting with a clean sheet of paper in its efforts to return to the smartphone top table - a strategy launched by CEO Steve Ballmer in early 2009.
If it fails to claw back market share lost to iPhone and Android, then Windows Phone 7 may well mark the point at which Microsoft turns its back on smartphones forever: targeting its mobile resources at creating compelling services and attracting advertising may prove a better option than beginning again with another mobile operating system, in that instance.
On the face of it, though, Windows Phone 7 looks to have positioned Microsoft on the edge of a smartphone renaissance. Its all-important user experience looks to have brought some genuinely new thinking to a smartphone market in all operating systems feel somewhat similar in use. That’s not the case here and Microsoft should be thanked for taking a different road, especially given that its new operating system seems both intuitive and responsive in the limited time we’ve had to try it.
That said, Microsoft has clearly also borrowed a lot from Apple’s smartphone toolbox by tying the device and its user experience to some tempting content and application proposition, especially the long-awaited tie up with its impressive Xbox Live service.
This should mark out Windows Phone 7 devices as favourites for committed gamers, although there’s also plenty here for media hungry and web savvy users. If Microsoft does fail to make the headway we’d expect with Windows Phone 7, it may decide that its not worth the time, expense and uncertainty of heading back to the drawing board again.
MELBOURNE: There’s a huge amount resting on the launch of Windows Phone 7 for Microsoft, its device and operator partners, and for the ecosystem market in general. As such, the commercial launch of Windows Phone 7 devices by OEMs and carriers looks set to mark the most important watershed in the smartphone market since the launch of Apple’s first iPhone.
If Windows Phone 7 devices sell in large numbers, Microsoft will rightfully be able to congratulate itself for starting with a clean sheet of paper in its efforts to return to the smartphone top table - a strategy launched by CEO Steve Ballmer in early 2009.
If it fails to claw back market share lost to iPhone and Android, then Windows Phone 7 may well mark the point at which Microsoft turns its back on smartphones forever: targeting its mobile resources at creating compelling services and attracting advertising may prove a better option than beginning again with another mobile operating system, in that instance.
On the face of it, though, Windows Phone 7 looks to have positioned Microsoft on the edge of a smartphone renaissance. Its all-important user experience looks to have brought some genuinely new thinking to a smartphone market in all operating systems feel somewhat similar in use. That’s not the case here and Microsoft should be thanked for taking a different road, especially given that its new operating system seems both intuitive and responsive in the limited time we’ve had to try it.
That said, Microsoft has clearly also borrowed a lot from Apple’s smartphone toolbox by tying the device and its user experience to some tempting content and application proposition, especially the long-awaited tie up with its impressive Xbox Live service.
This should mark out Windows Phone 7 devices as favourites for committed gamers, although there’s also plenty here for media hungry and web savvy users. If Microsoft does fail to make the headway we’d expect with Windows Phone 7, it may decide that its not worth the time, expense and uncertainty of heading back to the drawing board again.
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