Untitled

2011
BUSINESS AND TECHNOLOGY REPORT
Prepared by Ferhat nlkal 6/4/2011

MAY 2011
Notebook Consumer Electronics (CE) Samsung SmartPhone Samsung shipped 10.8 million smartphones in Q1 2011, up from 2.4 million in Q1 2010. We're basically talking about a shipping growth of 350% year-over-year here, which can only be described as a fantastic achievement. According to Canalys, bada smartphones are now taking off in Western Europe (overall bada shipments account for 3.5 million units), while the company's vast Android smartphone fleet is making an impact on a global scale. According to IDC, Samsung's Windows Phones are also gaining traction. Canalys mentions the Samsung Galaxy S 4G as part of a successful Q1 2011 wave of 4G smartphones for the U.S. AT&T Wireless and Samsung Mobile announced the thin and light Infuse 4G smartphone during a press event Thursday in New York. Samsung and Google are hosting an event for their co-created netbook based on Google's Chrome operating system after Google I/O, eWEEK has learned.
Samsungs stock performance
Lawsuit & Competition Samsung Electronics Co. shares are poised to drop amid increased competition and the possible loss of orders from iPad-maker Apple Inc., BGC Partners Inc. said, recommending a so-called short sale of the stock.
Marketing Samsung Electronics Co. Ltd., a market leader in consumer electronics and the Worldwide Olympic Partner for Wireless Communications Equipment, today announced an exclusive agreement with David Beckham to be its global brand ambassador for the London 2012 Olympic Games. Beckham will begin his ambassador role with immediate effect and will play a key part in raising awareness of Samsung's sponsorship of London 2012 as a Worldwide Olympic Partner. The collaboration will start with appearances in multi-platform adverts and public relations campaigns, covering various elements of Samsung's London 2012 marketing programme.
Retina Display Samsung will unveil a 10.1-inch tablet display next week with 2560-by-1600 resolution that draws 40 percent less power than older RGB stripe LCD screens. The new PenTile WQXGA display has double the resolution found in the forthcoming Samsung Galaxy Tab 10.1 and has more than five times as many total pixels as the iPad's 1024by-768 display.
LG Refrigerators LG Electronics Inc. said Friday that it will contest a finding that U.S. rivals such as Whirlpool Corp. are being hurt by imports of bottom-mount refrigerators from South Korea and Mexico. As a result, the Commerce Department will continue its countervailing duty investigation on imports of the refrigerators from South Korea, and its antidumping duty investigations on imports of the products from South Korea and Mexico. Its preliminary countervailing duty ruling is due June 23, while the preliminary antidumping duty ruling is expected by Sept. 6.
Samsung - Google Chrome OS Samsung unveiled its first Chromebook running Google's Chrome operating system at a hands-on event in San Francisco Wednesday night. The lean, 12.1-inch notebook due out June 16 is an elegant-looking machine that is purpose-built to do pretty much everything on the Internet rather than locally.
Emerging Market Africa Samsung Electronics Co. aims to post US$10 billion in revenue by 2015 in Sub-Saharan Africa with its consumer electronics and mobile products built for the market, the chief of the company's African unit said Wednesday.
LGs stock performance
Storage Technology Samsung Electronics announced that it is now producing high-performance DDR 2.0 multi-level-cell (MLC) memory chips based on its smallest 20nanometer (nm) circuitry. The chips boast a performance improvement of three times over the companys current chip technology and have 64 gigabits of capacity, twice what Samsung had been producing with DDR 1.0 technology. Sony Business Sony Corp. is expecting an annual loss of $3.2 billion, reversing its earlier projection of a return to profit, as the electronics giant struggles with production disruptions from Japan's tsunami and a hacker attack on its online gaming service. The Japanese maker of PlayStation 3 video game machines and Bravia flat-panel TVs said Monday that the projection of a 260 billion yen ($3.2 billion) net loss for the
fiscal year ended March 2011 was largely due to writing off 360 billion yen ($4.4 billion) related to a tax credit booked in a previous quarter. Sony announced the loss ahead of its official earnings announcement Thursday under Tokyo Stock Exchange guidelines. The company had earlier projected a 70 billion yen ($860 million) profit. Like many other Japanese manufacturers, Sony has been hampered by the production disruptions set off by the March 11 earthquake and tsunami that killed more than 25,000 people, destroyed many factories and sent the nation's economic recovery into reverse.
shortages for high-end models due to a lack of component supplies. Production will not begin again until AugustSeptember. Other Japan-based LCD TV firms such as Panasonic and Sharp are also facing the same problems. Sony forecast a return to profit for this fiscal year after sinking into its third straight year of red ink, hammered by the costs of massive online security breaches and the damage from a March quake and tsunami in northeastern Japan. Tokyo-based Sony Corp. said Thursday it expects an 80 billion yen ($975.6 million) profit for the current fiscal year, as sales recover in flat-panel TVs, games, personal computers and network services.
3DTV Sony recently demonstrated a glassesfree 3D panel, without much fanfare, at the SID Display Week 2011 convention in Los Angeles, California. Sony's 3D panels range from 10 to 23 inches and employ a "new" technology that utilises two LCD backlights to achieve the 3D effect sans glasses. Turning off one backlight makes the TV display 2D images. Another interesting technology that Sony quietly demonstrated was a fragile-looking 13.3-inch sheet of colour e-paper. This futuristic 150-micron thin display has a 10:1 contrast ratio as well as a 150 pixels-per-inch density.
Sonys stock performance
Due to low sales for its LCD TV department, Sony might decrease shipment targets by 20-30%, according to industry sources. Sony predicted optimistically in 2010 that shipments will reach 30 million units in 2011. However, Europe and the US have not been revived by the upturn in the global economy, hence an adjustment in Sony's targets might be possible, industry sources stated. Sony has faced annual losses for three consecutive years. The focus for Sony in recent years has been to improve the LCD TV business unit and it has been aggressively tackling the LED and 3D TV markets. But demand dwindled in the second half of 2010 causing lowerthan-expected sales. The recent earthquake in Japan has caused
Security Problems Sony said it discovered a security breach affecting 8,500 user accounts in a music entertainment website in Greece that comes on the heels of a hacker attack which forced its flagship gaming site offline. Sony Corp. spokesman Shigenori Yoshida said Tuesday that personal data including names, phone numbers and e-mail addresses may have been stolen. Yoshida said no credit card numbers have been affected.
Game Console Play Station Network Sony is looking to its insurers to help pay for its massive data breach, an amount that one expert estimates could exceed $2 billion, but others said insurers may balk at ponying up that kind of money. The Sony data breach that compromised the personal data of more than 100 million customers of the Japanese electronics conglomerate may claim yet another victim -- the cloud computing industry. Some businesses are rethinking plans to move to cloudbased computer systems located at remote data centers that can be accessed over the web. Shares of companies that specialize in cloud computing have been some of topperforming stocks over the past year. But the attack on Sony, as well as a massive outage at Amazon.com Inc's cloud computing center, have caused some businesses to put the brakes on plans to move their operations into the cloud. Sony began restoring its PlayStation Network service in the United States and Europe on Sunday after shutting down the service almost a month ago due to a massive security breach affecting over 100 million online accounts.
America and China. On Friday, the company began launching in Japan six models of Aquos Phone smartphones that can send photo and movie data wirelessly for display on its Aquos liquid crystal display televisions.
Sharps stock performance
Toshiba Business Toshiba Corp (6502.T), Japan's biggest chipmaker, expects its operating profit to rise by 25 percent in the year to March 2012, roughly in line with market expectations, but warned that potential power outages could jeopardize that outlook.
Sharp SmartPhone Sharp Corp is aiming to increase its fiscal 2011 smartphone sales in Japan 2.5-fold from the previous year to 5 million units to capture the largest market share in Japan in place of Apple Inc of the United States. In fiscal 2010 ended March, when Sharp introduced smartphones, sales reached a robust 2.08 million units, prompting the company to seek the annual target of 5 million units a year ahead of schedule. Sharp said it will also enhance smartphone sales in major overseas markets including Europe, North
Toshibas stock performance
Notebook & PC Toshiba Computer Systems, a division of Toshiba Europe GmbH, has seen its market leadership in Saudi Arabia rise through the results of the recent market study conducted by GfK Retail and Technology. Toshiba exhibited 5
evident market dominance in Saudi Arabia as it ended 2010 with 24.41 percent of sales units in the notebook category, maintaining recent position as market leader. Energy Management - Smartgrid Toshiba Corp. is near an agreement to buy Landis+Gyr AG, a Swiss electronicmetering company, for more than $2 billion, said two people with knowledge of the matter. The companies may announce the sale in the coming days, said the people, who declined to be identified because the details are private. Tokyo-based Toshiba beat private equity firms TPG Capital and EQT Partners AB, which also submitted takeover proposals by a May 9 deadline, the people said.
Eco Product Panasonic pledged Friday the environment will continue to be core to its business growth and profitability and demonstrated that commitment by announcing new targets in eco product sales and carbon emission levels as well as around "comprehensive" energy management offerings. For instance, the Japanese electronics giant aims to reduce 600,000 tons of CO2 emissions from its factories' production activities by March 2013, a 20 percent increase from original 500,000-ton target set last year. Yorihisa Shiokawa, managing director of Panasonic Asia-Pacific, announced the revision at the Panasonic "eco ideas" Declaration 2011 event held here. Since 2009, the annual event is a platform for the company to discuss the results and progress made since the preceding declaration, and share new business targets for the region. This year's targets also reflect the goals of a new Panasonic group, after the company acquired Sanyo in December 2009. The acquisition was mooted back in November 2008, but was delayed first by Sanyo investors and then regulatory concerns. According to Shiokawa, Panasonic had already met its initial target of 500,000-ton reduction in carbon emissions by March 2011, as a result of productivity enhancements. The revised higher target of 600,000 tons of CO2 emission reduction is equivalent to planting 33 million trees, he said. Panasonic, he added, is "on track" in its goal of having eco products contribute 80 percent of revenue in the Asia-Pacific region by March 2013. The products, which include energy-efficient refrigerators and air-conditioners, made up 66 percent of sales in March 2011, up from 49 percent a year ago.
Panasonic R&D in India Panasonic Corporation today announced that it has established Panasonic Research & Development Center India (PRDCI) in Gurgaon in the northern state of Haryana. As Panasonic's first R&D base in India, PRDCI will contribute to the company's business expansion in the growing market with efficient R&D tailored to local needs.
Panasonics Stock Performance
Arelik Growth in Middle East Beko, the leading international home appliance brand from the Turkeyheadquartered Arelik Group, Wednesday night announced an expected 250 percent growth in sales by 2016 in the Middle East region, driven by the companys commitment to creating products designed with the environmentally-conscious consumer in mind. Speaking at the event marking the unveiling of its new product range in Dubai, Murat Bykerk, Arelik Sales Director responsible for the Middle East, Africa and Turkic Republics, said: Our products have been very well received since we first launched them in the UAE nearly ten years ago, with sales doubling each year since. Our refrigerators and washing machines have been particularly popular with the regions customers. As a company, we invest significant resources in research and development to ensure that our products are as environmentally friendly as possible. We predict a sharp uptick in sales, with growth forecasts for the region averaging 26 per cent each year over the next five years.
Moreover, these technologies significantly broaden the available range of multimedia types and uses such as file downloads, content sharing and much more. Vestel, the leader of digital product in Europe, has signed an agreement with NetRange MMH, which cooperate with content prodiver companies more than 100 countries. The television maker plans to sell 1 million internet TV's to Europe this year and raise its total exports to $2.5 billion, Turkish newspapers reported citing company executive Turan Erdogan.
Trk Telekom IPTV services SeaChange International (NASDAQ: SEAC), the leading global multi-screen video company, today announced details of its role in TTNETs nationwide IPTV service, Tivibu Ev (Tivibu Home), part of its multi-screen video service that is currently available in 30 cities across Turkey. As the systems integrator and a primary technology provider for Tivibu Ev, SeaChange assembled a multinational team of engineers, project managers and technology partners to build one of the worlds newest and most advanced television services. Tivibu Ev consists of more than 100 linear multicast channels of standard- and highdefinition television; 3,100-plus hours of standard- and high-definition videoon-demand (VOD) content; start-over TV functionality; and up to 90 minutes of pause time for live TV. Commercially launched on Feb. 23, 2011, Tivibu Ev is marketed and sold by TTNET, a Turk Telekom company and operator of television, broadband and mobile communication services throughout Turkey. Among the critical projects to take place while building TTNETs IPTV platform was the integration of SeaChanges TV Navigator set-top box client middleware with back office software from Argela, the combination that forms the functionality and user interface for the Tivibu Ev experience.
Vestel Connected TV Vestel, one of Europes largest TV manufacturers, will be showcasing DRM-ready Connected TVs and hybrid set-top boxes, at the upcoming ANGA Cable tradeshow. The result of close collaboration with Discretix, the leading provider of field-proven content protection solutions, will see the deployment of widely supported Microsoft PlayReady digital rights management (DRM) technology across Vestels range of TVs and set-top boxes. This major rollout of embedded DRM will be a catalyst for premium video on demand (VOD) and over-thetop television (OTT-TV) services.
Other key technologies comprising Tivibu Ev include Envivio encoders, Verimatrix digital rights management and encryption, Motorola, Airties and Vestel set-top boxes. A combination of SeaChange MDS and FMS disk- and flash-based storage servers provide ondemand streaming for the Tivibu EV VOD service. BBC Youview IPTV services YouView has confirmed that innovation partner Technicolor has pulled out of developing a set-top box for the planned service. A YouView spokesperson said: "We can confirm that Technicolor have decided to withdraw from YouView set top box development. However, they were one of seven manufacturing partners and YouView remains on track for a consumer launch in early 2012. YouView continues to work closely with a range of device partners notably Humax, Huawei, Pace as well as Manhattan, Vestel, and Cisco."
CE Market LCD TV The global LCD TV market grew by almost a third in 2010 to 192 million units. Prices for flat panels fell though owing to sharply weaker than expected TV sales in the second half of the year. Growth this year is expected to more than halve to 13 percent to 217 million units due to weak growth in the United States and Europe, research firm DisplaySearch forecasts. And analysts said that the industry is not turning quickly enough to boost revenues this year. They predict that global dollar revenues from LCD TV sales will fall between 3 percent and 4 percent in 2011. In Japan, beset by weak consumer spending even before the devastating earthquake and tsunami in
March, demand is expected to shrink by 43 percent, DisplaySearch says. By comparison, China is set to overtake North America as the world's biggest LCD TV market with demand growth of nearly 20 percent this year. That will give it a 21 percent share of the global market, up from 13 percent in 2008. Chang said TV sales in China rose 15 percent to 2.6 million units in the two weeks through China's Labour Day holiday in early May. The outlook is a welcome reprieve for the industry. Most producers, from Samsung to LG and to Taiwan's Chimei Innolux, reported losses in the January-to-March quarter as flat-panel prices continued to fall. LG, whose first-quarter operating loss was 239 billion won ($219.6 million), is expected to swing to a profit of 196 billion won in the April-to-June quarter, Thomson Reuters I/B/E/S consensus estimates show. Samsung's LCD division, which includes results from lucrative OLED display business, reported an operating loss of 230 billion won in the first quarter of 2011. Chang though signaled results would improve this quarter as the market tightens and prices rise, which he said was prompting the division to boost its production rate to a range of 90 percent to 95 percent of capacity this quarter from 85 percent to 90 percent last quarter. Investors have started taking note of the improved outlook for earnings. Shares in LG Display, which counts LG Electronics and Philips AG as its major TV screen clients, have risen 7 percent in the past one month. Stock in the more diversified Samsung, where the LCD division generates 14 percent of group revenues, has risen 1 percent, outperforming a 2 percent drop in the wider market. expected to be half that of 2010 with growth shifting from developed countries to emerging markets, according to market research firm DisplaySearch. "As the household installed base for flat panel TVs increases above 50-60 percent, the
growth rate slows, which is currently the situation in Japan, Western Europe, and North America. Emerging markets, however, are still ripe for sustained growth due to a low level of household flat panel TV penetration," noted Paul Gagnon, Director of North America TV Research for DisplaySearch, in a statement. Japanese TV demand is falling sharply due to the end of government incentive, with the devastating March 11 earthquake likely to reduce demand further. Total TV shipments grew by nearly 18 percent Y/Y in 2010 to 248 million units. However, shipment growth is expected to slow to less than 4 percent Y/Y in 2011, as slower price erosion cools demand in developed markets. LCD TVs continue to be the primary TV type shipped worldwide, and are expected to account for about 84 percent of all TV shipments in 2011. Worldwide LCD TV shipments will increase from about 192 million units in 2010 to almost 217 million units in 2011, a 13 percent increase. Total LCD TV shipments are expected to increase steadily, reaching 270 million units by 2014, according to the report. Within the LCD TV category, several key features are gaining share as cost premiums decline. LED backlights will account for about 50 percent of the total LCD TV units shipped during 2011, penetrating a large number of screen sizes, especially above 40 in. Larger screen size sets are usually fully featured and focused on performance. As a result, performance-oriented features like high frame rate and 1080p resolution have much better penetration among larger screen sizes. 120Hz and higher refresh rates will account for about a quarter of total LCD TV units in 2011, but for 40+ sizes, the share is more than 60 percent. Emerging regions, which include China, Asia Pacific, Latin America, Eastern Europe, Middle East, and Africa, will have the strongest flat panel TV growth over the next four years, averaging 17 percent growth each year. The Asia Pacific region is
positioned for strongest growth as the late adopting India market begins to boom. By comparison, developed regions (North America, Japan, and Western Europe) will see no growth over the same time period.
3DTV The global 3D television market will grow more than 5-fold to account for 11 percent of flat-screen TV sales this year, as prices fall sharply and manufacturers add the function as an add-on feature, research firm IHS iSuppli predicted on Friday. It projected 3D TV shipments would rise to 23.4 million units this year from last year's 4.2 million units, gaining further to 159 million units in 2015. By that time, iSuppli said, 3D TVs would account for more than half of global flat-panel shipments. The global 3D TV market is seen growing more than five fold this year to 23 million units, accounting for 11 percent of flat-screen TV sales, research firm IHS iSuppli says. Taiwan-based firms have not been able to achieve a high penetration of the 3D TV market. Firms such as Chimei Innolux (CMI) and BenQ will be introducing new lines of 3D TVs in the second half of 2011. However, the penetration of LED TV in Taiwan's market is about 25% in March and is expected to increase to 30% in April. Consumer acceptance of 3D TV has been opening up faster than Internet TVs. The market expects penetration of 3D TV to reach beyond 10% in 2011. According to industry observers, 3D TV sales did not meet expectations in 2010, with the penetration rate being 2% only. The market leaders are mostly international brands. Many firms such as South Korea-based LG, Samsung and Japan-based Sony all introduced various lines of 3D TVs. CMI plans to adopt active 3D TV panels for its large-size LED TVs, while BenQ will
adopt passive 3D panel technology for its 3D TV product line.
Tablet PC Revenues from tablet applications will reach $15 billion in 2015 as they acquire their own identity from smartphones and as they develop their full market potential, according to the latest In-Stat research report. Global shipments of tablet PCs are expected to top 60 million units in 2011, of which iPads will account for 35-40 million and non-iPads will total 20-25 million, estimated industry sources, noting that this means AUO will ship up to 10 million table PC panels for the year.
smartphones market is forecast to reach 1641.82 million units by the year 2017. Thriving economies, growing employment opportunities, rising income levels, continuous development of cellular markets, rising 3G penetrations, and increasing spending power in major countries will drive demand for smartphones in the post recession period.
Digital Camera Taiwan-based digital still camera (DSC) makers including Ability Enterprise, Altek, Foxconn Electronics (Hon Hai Precision Industry) and Asia Optical may see their DSC shipments in the second quarter lower than fore casted due to a shortage of small-size panel because of demand from Apple's iPhone and iPad, according to sources from upstream players. However, although demand for DSCs has taken a hit by the growth of the DSLR camera and smartphone segments, consumer DSC shipment volumes in 2011 will still be higher than in 2010. In additional news, as Samsung is seeing its global DSC market share expanding in 2011, the market watchers that originally expected Samsung to start outsourcing some of its DSC models to Taiwan maker now argue that Samsung is releasing only niche-type products with small shipment volumes, so Taiwan DSC makers are unlikely to benefit significantly from any orders from the vendor in 2011
SmartPhone Overall, worldwide sales of smartphones hit 101 million units in the first quarter of 2011, up 83% against the same quarter in 2010. Phones running Android represented just over 35 million phones. Even though Android was the clear winner as far as platforms go, Nokia didn't cede its number one position as the largest manufacturer. It stayed in the lead with 24% of the market, though that is down substantially from the 39% share it held last year. At best, Windows Phone shipped 2.5 million devices globally in the same period. That gives it 2.5% share and puts Windows Phone 7 in fifth place behind Android, Blackberry, iPhone, and Bada. While WebOS isn't mentioned and I'd be surprised if it did better than 2.5% share given neither it nor HP are mentioned in the report at all. That should bring the total Windows Phone units to 4.5 million since its launch as Microsoft reported two million shipped in 2010. GIA announces the release of a comprehensive global report on Smartphones market. World
Turkish Electronics Sectors Mr. Fatih Ebiliolu, who is the president of Istanbul Electric, Electronics Machine and Information Technology Exporter Association, said that players will increase the investment and focus on new business areas to reach the aim which is 45 Billion $ export in 2023 from 10 Billion $ export in the last year.
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Brazil market Brazils commodity and consumerdriven economy imported $22.2-billion worth of electronics equipment last year, up nearly 43 per cent from 2009, trade data show. Its trade deficit in high-technology goods grew more than 11 per cent in the first three months of this year to $6.8-billion.
ICT Industry Acer Market Expectation Compatibility problems between Android 3.0 and Acer's 7-inch Iconia A100 tablet will reportedly delay the launch of the new tablet, according to a story in DigiTimes. Originally set to start selling the new tablet by May or June, Acer is now rescheduling the launch to an August-September time frame.
Central Air Conditioning Systems In 2010, Italy, Germany and France represent the largest European Central Air Conditioning Systems manufacturers in terms of shipment value, with a combined share of nearly 50%. Italy is the largest manufacturer of Central Air Conditioning Systems with a shipment value of US$1.1 billion in 2010 and expected to reach US$1.8 billion by 2015 with a CAGR of 6.7%. Emerging manufacturing countries, Czech Republic and Turkey, are forecast to register double digit growth rates over the 2006-2015 analysis period and gain share at the expense of other major regions in Europe. Europe was adversely affected by the recent world recession and the Central Air Conditioning market has been dampened in all countries except Italy, Turkey, Spain, the UK and Czech Republic which achieved a positive growth during 2010. European shipments of Central Air Conditioning Systems stand at an estimated 2.52 million units in 2010, valued at US$5.14 billion. Though unit shipments are forecast to witness a low CAGR over 2006-2015, value of shipments are expected to maintain a positive trend over the aforementioned years.
Acers Stock Performance
Production in Brazil
In addition to Asustek Computer and Foxconn Electronics (Hon Hai Precision Industry), Taiwan-based notebook brand vendor Acer reportedly will increase investments in its subsidiary in Brazil with an amount of NT$1.45 billion (US$50 million); however, when asked to comment, Acer did not respond by the time of publication. According to media reports from China, Brazil and China are the markets that Acer has been focusing on the most aggressively, since consumer demand from the two countries is strong, and with Brazil's economy is starting to take off, Acer expects the market to have strong potential in the future. Asustek CEO and president Jerry Shen also
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announced previously that he will visit Brazil for two weeks in the third quarter to work on a thorough investment plan in the country. Due to Brazil's high customs fees for importing PC products, Asustek in the past, almost had no shipments to the market, but as the company is turning aggressive on entering the market and is sending a team to the country looking for cooperation with local OEMs, the company is expected to start gaining share from the local notebook market. Currently, the notebook market in Brazil is mainly occupied by US-based Hewlett-Packard (HP), Taiwan-based Acer and Brazil-based Positivo with each having 15% shares, while Acer has a share close to 50% of the local netbook market. With the entrance of Asustek and Foxconn, the current market share lineup is expected to see significant fluctuations in the future, the sourced added.
Foxconn Production in Brazil The prospect of a mammoth $12-billion (U.S.) investment by iPhone maker Foxconn Technology Group has sent Brazilian government officials scrambling to rethink the countrys industrial policy. The aim is to nurture a high-tech industry that will slash Brazils costly dependence on tech imports and create a complete production chain in Brazil to feed rampant demand for products like smartphones and tablet computers. Development of an electronics production chain would help ease one of Brazils most serious economic imbalances a huge trade deficit with China and other countries in high-value manufactured products that create the smarter, higher-paying jobs that Brazil wants. Government officials told Reuters they plan to use the Foxconn opportunity, which they say could be
the single biggest foreign direct investment in Brazil, to encourage a home-grown industry centered on the production of LCD screens used in a swathe of products from high-end televisions to tablets. Foxconn whose main listed flagship is Hon Hai Precision Industry could start producing Apples iPhones and iPads at its existing factory in Sao Paulo state by July, Brazilian officials said. But the bulk of the $12billion is to build an intelligent city production center to make screens, said Ricardo Schaefer, deputy vice minister at Brazils trade and industry ministry. LCD technology is dominated by Taiwan, Korea, Japan and a growing part in China. We are thinking of the next step that will allow us to catch up with these countries we are designing a new industrial policy, he said. The network of services to support the new factory, such as broadband Internet and energy, could be compared to that required by the auto industry, he said. To achieve this production chain the government is willing to give high-tech companies special treatment on tax and other incentives to make their products in Brazil, helping to counter common complaints about high labor costs, red tape and poor infrastructure.
Foxconns Stock Performance
Taiwanese electronics giant Foxconn wants to begin assembling iPads in Brazil by July, but it is still seeking tax breaks and other government concessions as part of an investment
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plan that could be worth up to $12 billion, Brazilian media reported on Friday. Foxconn Technology Group, maker of Apple Inc's iPhone and iPad, announced its intention to dramatically ramp up production in Brazil last month during a visit to China by Brazilian President Dilma Rousseff. LCD Monitorproduction Foxconn Electronics (Hon Hai Precision Industry) has reportedly been setting up LCD monitor production lines at its plant in Chongqing City, western China, with a planned annual capacity of 10 million units in three years, according to industry sources.
Nokias stock performance
Blackberry SmartPhones RIM shipped 13.9 million smartphones in Q1 2011, up from 10.6 million in Q1 2010. That's 31.1% shipping growth year-over-year. The BlackBerry portfolio lacks capacitive all-touch phones and landscape QWERTY sliders - the two form factors that drive smartphone sales as we speak. The leaked BlackBerry Touch all-touch phone indicates that RIM will make a significant move in that regard later this year.
Nokia SmartPhones Nokia shipped 24.2 million smartphones in Q1 2011, up from 21.5 million in Q1 2010. While the smartphone shipments in general grew 79.7%, Nokia smartphones have seen an insignificant shipping growth of 12.6%. According to IDC, EMEA and Asia/Pacific markets are driving smartphone sales for Nokia, but the Finnish manufacturer has yet to release a new flagship in 2011. According to Canalys, Greater China accounted for 8.9 million shipments in Q1 2011. Despite a 79% year-overyear growth in that market, it's worth noting that Nokia recently announced that Symbian will be outsourced to Accenture, as internal development rapidly shifts to Windows Phone.
RIMs stock performance
Apple SmartPhones Apple shipped 18.7 million smartphones in Q1 2011, up from 8.7 million in Q1 2010. This represents a 114.4% shipping growth year-over-year, 13
primarily driven by a cheap iPhone 3GS, introduction of the CDMA iPhone 4, as well as iPhone demand in Greater China. Only time will tell what exactly Apple is up to next.
Flat Panel Industry Samsung Market Expectation Samsung Electronics Co. <005930.KS> and LG Display <034220.KS>, the world's top two flat-screen makers, expect the depressed LCD market to start rebounding as demand rises in China and new TV models are rolled out. Global LCD makers are hoping China, widely expected to become the world's biggest TV market this year, pulls the sagging flat-screen industry out of a year-long downcycle when oversupply pushed prices lower.
Apples stock performance
HTC SmartPhones HTC shipped 8.9 million smartphones in Q1 2011, up from 2.7 million in Q1 2010. Carrier-branded HTC smartphones are not included here. Still, that gives HTC a shipping growth of 229.6% year-over-year. HTC Sense smartphones powered by Android are currently driving HTC's growth (key phones in the U.S. are the EVO 4G and Shift 4G, Thunderbolt and Inspire 4G, according to Canalys), and the company is expected to spread the HTC Sense experience to more markets, carriers, devices as well as operating systems moving forward.
AMOLED A Korean paper is claiming that Apple is teaming up with Samsung to bring its Active-Matrix Organic Light-Emitting Diode (AMOLED) display technology to the iPad 3.
Tablet PC In other news, Samsung Electronics shipped a total of four million 9.7-inch panels for iPads in the first quarter, outpacing rival LG Display (LGD) as the largest tablet PC panel supplier for Apple, the sources indicated. LGD's iPad panel shipments reached only 3.2 million units in the first quarter.
LG Display Panel Business South Korean liquid crystal display (LCD) panel giants LG Display Co. and Samsung Electronics Co. accounted for nearly half of global shipments in the first quarter of this year, an industry report showed Wednesday. LG Display shipped 43.8 million units of LCD
HTCs stock performance
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panels larger than 9 inches in the January-March period, claiming 26.7 percent of the global large-sized LCD market, according to the report by market research firm DisplaySearch. Samsung Electronics trailed LG with 37.7 million units in the quarter, accounting for 23 percent of the market. Their combined market share was up from 47.2 percent a year earlier, but down 2.1 percentage points from three months ago.
indicated, adding LG Display's shipments are to meant to clean its inventory of 9.7-inch touch panels that do not meet Apple's requirement. Sharp Super Hi-Vision Japan's Sharp has developed an 85inch LCD (liquid crystal display) panel with resolution equivalent to 16 times that of today's HDTV panels. The screen, which is only a prototype, was developed for Super Hi-Vision, a nextgeneration television system currently under development in Japan. At 7,680 pixels by 4,320 pixels, Super Hi-Vision images will have four times as much detail horizontally and vertically than the best of today's HDTV images. The system is being developed by Japan's public broadcaster, NHK (Nippon Hoso Kyokai), and demonstrations of early prototypes have shown a very detailed image with beautiful colours. The images are so good, the viewer can feel immersed in a scene in a way not possible with current 3D TV technology.
LG Displays Stock Performance
Tablet PC LGD was forced to reduce its shipments in the first quarter due to light leakage problem for panels produced at its 6G production lines. The company reportedly has fixed the problem and will resume shipment momentum to Apple in the second quarter, said the sources.
Touch Panel LG Display, a supplier of 9.7-inch touch panels with brightness of 380 nits for use in iPad 2, has begun shipping touch panels of the same size but with lower brightness of 200 nits to second-tier tablet PC vendors at about US$70 per unit, according to Taiwan-based panel makers. Except Apple, no major tablet PC vendors have so far adopted 9.7inch touch panels, the sources
Sharps Stock Performance
AUO Eco Panel AU Optronics Corp. ("AUO" or the "Company") (TAIEX: 2409; NYSE: AUO) announced today that its G8.5 fab
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located in Houli of Central Taiwan Science Park has been awarded LEED (Leadership in Energy & Environmental Design) Platinum Certification by U.S. Green Building Council (USGBC), becoming the world's first LEED Platinum-certified TFT-LCD plant. Following the recognition of the LEED Gold certifications of its first G8.5 fab in Taich ung of Central Taiwan Science Park and the solar module plant in Tianjin, China, AUO's persistence in promoting the concept of green and energy-saving designs from the source stage of fab construction has brought its innovative green competitiveness to the next level and garnered the ultimate acknowledgement for green buildings.
Taiwan-based TFT-LCD panel makers: Breakdown of 1Q11 shipment volumes (m units)
Company TV CMI AUO CPT HannStar Total for each application 11.45 9.35 1.54 0 22.34
Main applications Monitor 11.81 8.12 2.48 0.34 22.75 Notebook/tablet PC 8.85 13.19 1.71 1.64 25.39
Total shipments
32.11 30.66 5.73 1.98 70.48
Source: Digitimes Research, compiled by Digitimes, May 2011
AUOs stock performance
CMI Business
AUOs Stock Performance
Tablet PC AU Optronics (AUO) is expected to see its shipments of tablet PC panels, mostly 10.1-inch models, increase substantially in the second quarter of 2011, according to industry sources. Although not yet entering the supply chain for iPad, AUO aims to take up a 50% share of the global non-iPad tablet panel market in 2011, AUO executive vice president Paul Peng said earlier.
Panel maker Chimei Innolux (CMI) on May 3 reported its financial report for the first quarter of 2011, posting consolidated revenues of NT$124.327 billion (US$4.18 billion), gross margin of negative 5.33%, net operating loss of NT$13.547 billion, net loss of NT$13.804 billion and net loss per share of NT$1.89. However, CMI expects its operation to rebound from the first-quarter bottom and prices for large-sized panels to rise in the second quarter. Of the first-quarter net sales, 37%, 29%, 6% and 23% came from TV, monitor, notebook and small- to medium-size applications, respectively. Chimei Innolux will be Taiwan's top supplier of large-size TFT-LCD panels in the second quarter by shipping 32.11 million units, followed by Au Optronics (AUO) with shipments of 30.66 units.
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Taiwan-based panel makers will ship an estimated 71.28 million large-sized (over 9 inches, including for use in tablet PCs) panels during the second quarter of 2011, rising by 9.4% on quarter and by 1.6% on year and accounting for 40.3% of global total, according to Digitimes Research. Taiwan-based TFT-LCD panel maker Chimei Innolux (CMI) on May 9 reported consolidated revenues of NT$40.292 billion (US$1.38 billion) for April, slipping by 13.54% on month and by 19.30% on year.
sources estimated. As Apple is currently purchasing touch sensors mainly from Taiwan-based makers, CMI's capability to roll out touch sensors will make the company a strong contender for orders from Apple, leveraging the integration in assembly processing and component procurement under the Foxconn Group, commented the sources. CPT Business Taiwan-based TFT-LCD panel maker Chunghwa Picture Tubes (CPT) has received increasing orders for small- to medium-sized panels from Samsung Electronics, white-box handset vendors and vendors of tablet PCs, and expects input of glass substrates to make such panels to exceed 50% of total input of glass substrates in July, according to the company.CPT shipped 350 million small- to medium-sized panels in 2010, 139.1 million panels in January-April 2011, and is expected to see 2011 shipments grow by about 40% from 2010, according to industry sources. Currently, CPT has a 6G plant with a monthly production capacity equivalent to an input of 110,000 glass substrates, two 4.5G plants each with that of 90,000 substrates and a 4G plant with that of 70,000-75,000 substrates. In addition to TFT-LCD panels, CPT has stepped into production of touch panels through making touch sensors at domestic plants and then delivering them for production of touch panel modules at its plant in Fuzhou, southeastern China, with production of such modules accounting for 10% of total revenues currently. CPT is setting up integrated production lines of touch panels at the Fuzhou plant, and hopes that touch panel production can make it become the largest Taiwan-based maker of small- to medium-sized panels.
Tablet PC Chimei Innolux (CMI), which has been selected as a supplier of IPS panels for iPad, is still waiting for verification from Apple, which will enable CMI to start shipping tablet PC panels in May, the sources noted.
Touch Panel Chimei Innolux (CMI), after signing an IPS (in-plane switching) technology licensing agreement with Hitachi recently, has also begun the development of touch sensors aiming to start shipping the products to Apple in June, according to industry sources. The development of IPS flat panel and touch sensors by CMI, an affiliate of Foxconn Electronics, will enable the giant EMS firm to offer one-stop service from panel production to touch components and to final assembly for the iPad 2 and therefore is likely to affect the tablet's supply chain, the sources indicated. Apple currently purchases the panels needed for the iPad 2 from LG Display and Samsung Electronics with the former being the major supplier, as Samsung has also launched its own-brand Galaxy Tab tablets to compete with Apple, noted the sources. LG Display is expected to ship three million 9.7-inch tablet panels to Apple in May compared to two million units shipped in April, and the shipment volume could top four million a month in the third quarter, the
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Business Second-tier LCD panel makers Chunghwa Picture Tubes (CPT) and HannStar Display have both reported narrowed losses for first-quarter 2011. CPT's first-quarter net loss came to NT$2.326 billion (US$81.29 million), compared to NT$5.86 billion in net loss for the previous quarter. HannStar's first-quarter net loss reached NT$1.441 billion, an improvement from the previous quarter's net loss of NT$4.011 billion. Their better performance was due to larger proportions of small- to medium-size panels and of touch panels in their shipments, according to industry sources.
based on data gathered by Digitimes Research. The shipment growth is being driven mainly by demand for TV and tablet PC applications. Taiwan makers will have an about 40% share of the global market by shipping 71.28 million large-size TFT-LCD panels, up 9.4% sequentially. The panel industry is generally optimistic about LCD TV sales in the second quarter. Both LG Display and AU Optronics (AUO) expect their TV panel shipments to have a double-digit growth in the second quarter. Taiwan makers' monitor panel shipments will have stable growth in the second quarter, with both AUO and Chimei Innolux (CMI) likely to see 67% growth for the segment.
LCD Panel Market Business Panel Shipments Large-size TFT-LCD panel shipments totaled 56.34 million units in April 2011, down 2.1% sequentially, according to WitsView. The firm attributed the slight drop to a seasonal weakening in TV and consumer electronics demand. After seeing their inventories swell in March, downstream vendors slowed down their pace of orders in April which marked the beginning of the traditional low season, WitsView noted. About 16.37 million TV panels were shipped in April, down 3.9% sequentially, WitsView said. Meanwhile, monitor panel shipments were down 5.5% on month to 16.88 million units, the firm indicated. Buoyed by increased demand, tablet PC panel shipments grew by a record 17.4% sequentially to 4.95 million units in April, according to WitsView. Meanwhile, notebook panel shipments fell by 4.3% on month to 14.7 million units. Global large-size TFT-LCD panel shipments (9-inch and above, including tablet PC applications) are expected to reach 177 million units in the second quarter of 2011, up 10.2% sequentially, according to predictions First-quarter 2011 shipments of largearea TFT LCD (larger than 9.1-inch) fell to 164 million units, down 7% on quarter, but up 5% on year. Revenues for the quarter were US$17.5 billion, falling 12% on quarter and 19% on year, according to DisplaySearch. LCD panel manufacturers are targeting an aggressive 18% shipment growth in second-quarter 2011, as panel demand increases due to low inventories in the supply chain and as capacity utilization rates gradually rise.
Competition In first-quarter 2011, LG Display continued its leadership in revenue terms with 25.9%, but its share declined from 27.9% in fourth-quarter 2010. Samsung Electronics ranked second on a revenue basis with 25.6%, an increase from 25.2% in fourthquarter 2010. AU Optronics (AUO) and Chimei Innolux (CMI) both increased their revenue shares in first-quarter 2011, from 15.1% to 16.5% and from 14.1% to 15.6%, respectively. Sharp ranked fifth, with 7.9%, down from 9.8% in fourth-quarter 2010.
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Panel Prices The price for large-size TV panels is expected to climb out of the trough, according to industry sources. Demand in the China TV market has been considerable since the May 1 Labor Day holidays. The price of TV panels will likely rise by the end of May when inventory diminishes and demand returns. Sales volume of LCD TVs in China for the first quarter was around 9.08 million units, a 5.17% growth from the same period last year. To stimulate consumption, many Chinese retailers have been slashing prices for large-size LCD TVs. According to the Chinese retailer, GOME, LED TVs accounted for 50% of the LCD TV sales during the Labor Day period this year, and 3D TVs about 8%. Market observers forecast the price of largesize TV panels (40-inch and greater) to increase US$3-5 in May and June. Stronger demand in second half of the year will drive an upsurge of TV panel price again, said industry observers in China. Recent market research has reported flat trends for panel prices for the first half of May except the 42-inch segment, which has shown a 1% growth.
manufacturers are focusing on CCFL production to ensure stability in the business lines as they ramp up their 6G and 8G lines.
DisplaySearch: LED backlight penetration in LCD TV panel shipments forecast LED Penetration 1Q Report 2Q Report
1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 9% 9% 19% 19% 26% 26% 29% 29% 36% 33% 50% 38% 59% 52% 62% 57%
Source: DisplaySearch, compiled by Digitimes, May 2011
DisplaySearch: LED backlight LCD TV panel shipment share, 1Q11 Panel Maker LG Display Samsung Sharp AUO Chimei Innolux Others 4Q10 31% 21% 22% 14% 9% 3% 1Q11 27% 24% 18% 18% 9% 4%
Source: DisplaySearch, compiled by Digitimes, May 2011
LED Backlight Global shipments of LCD TV panels with LED backlights reached 16.4 million units in the first quarter of 2011, a slight decrease from 16.6 million units in the fourth quarter of 2010, according to DisplaySearch. LED penetration in LCD TV panels reached 33% in the first quarter, a healthy growth from 29% in the previous quarter. However, LCD panel manufacturers have adjusted their targets for 2011 LCD TV panel shipments with LED backlights down from 53% to 47%. Key reasons for this change in outlook include the current sell-through climate, price erosion in premium LED models, making them less attractive, and a shift in strategy towards 3D panels. New LCD TV panel
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Software Industry Microsoft Tablet PC/SmartPhone OS Microsoft reportedly will demonstrate its Windows 8 tablet operating system next week, according to a report. Bloomberg reported Thursday that the software company will address both the AllThingsD conference next week as well as the Computex show in Taipei. Microsoft chief executive Steve Ballmer said Monday that Windows 8 would be coming out in 2012. Microsoft later retracted the statements, leading to the possibility that perhaps Microsoft intended to launch Windows 8 next year, but may in fact issue a point release or a dedicated tablet version of the OS.
integrated Twitter and LinkedIn feeds and automated Facebook check-ins. People are communicating not just phone to phone, but phone to PC and even to TV, Mr Lees said. The problem is that today smartphones only include the very basic communications. Everything else is an app, and you need different apps for different communications. Microsoft described the way Windows Phone Mango approaches communication as people-centric rather than centred on the apps they use. The update brings together all the ways to connect and share information with people into one place, and allows users to switch between text messages, Facebook chat and Windows instant messages. Acquision of Skype Microsoft Corp (MSFT.O) is close to buying web video conferencing service Skype Technologies for $8.5 billion including debt, a source familiar with the situation said, in a deal which would rank as the biggest for the software company.
Cloud Services Microsoft is working on a major overhaul of its Windows Live SkyDrive cloud storage service, acording to WinRumors.com. The new version of SkyDrive will sport a new interface will include a HTML5 version of its image viewer, alongside a refreshed interface to view documents and files uploaded to the free service, according to WinRumors.
Microsofts Stock Performance
MICROSOFT HAS issued a major update for its mobile phone software, seven months after its launch. The update, known as Mango, brings more than 500 new features to using the phone, including handsfree messaging through speech-to-text features, integrated e-mail inboxes and opening up the application Marketplace to more countries. It builds upon our mission to make the smartphone smarter and easier, Andy Lees, president of Microsofts mobile business said. Mango also aims to integrate more social networking features, such as
Google Chrome Operating System After a prolonged delay, Google on Wednesday unveiled its first notebooks loaded with the Chrome operating system, a widely anticipated push to get consumers to use online
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applications rather than download software to their computers. Google has released Android 3.1 and will cooperate with Intel to push for Oak Trail/Chrome or Cedar Trail/Chrome platforms for netbooks and notebooks. Asustek Computer, Acer and Lenovo reportedly all plan to roll out Android 3.1 models. Prior to the release of Android 3.1, Google has slowed down its process for licensing Android 3.0 to tablet hardware vendors due to some operational problems and a lack of applications for tablet PCs. As a result, only a small number of vendors, including Asustek, Acer and Motorola Mobility, have launched Android 3.0 tablet PCs. The release of Android 3.1, officially set in June, will encourage more hardware vendors to venture into the Android 3.1 tablet segment, according to industry sources. Google also announced that Motorola has upgraded the OS for its Xoom tablets to Android 3.1 and that Google TV will also support Android 3.1. Intel will also exert efforts to push the adoption of Intel/Android 3.1 platforms, with Acer, Asustek Computer and Lenovo to launch Oak Trail/Android 3.1 tablet PCs soon and also Cedar Trail/ Chrome models in the second half of the year, the sources noted.
Semiconductor Industry Samsung Solar Battery Samsung SDI said on Friday it would invest 2.2 trillion won ($2 billion) in the solar battery business by 2015 to generate 3.5 trillion won in revenue from a new business it is acquiring from its affiliate Samsung Electronics. Solar batteries account for one of five areas that Samsung Group had identified as its next growth drivers last year along with car batteries, light emitting diode (LED), medical equipment and healthcare businesses. The group plans to invest a total of 23 trillion won in the new businesses. It has since acquired local ultrasonic medical equipment maker Medison and formed a 300 billion won venture with drugmaker Quintiles, which on Friday started construction of a biopharmaceutical plant in Korea for commercial production from April 2013. The group's flagship firm, Samsung Electronics, said on Friday it would transfer its solar battery operation to Samsung SDI for 161 billion won to focus on its core business. Samsung SDI, which also makes rechargeable batteries and plasma flat screens, said it aimed to secure 8 percent of the global solar battery market by 2015.
Googles stock performance
Samsung SDIs Stock Performance
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IC Suppliers Samsung, based in South Korea, is spending billions to expand its only factory in the United States to make logic chips that analysts believe will go into many Apple iPhones and iPads. When completely finished next month, the plant will be 2.3 million square feet, one of the largest factories of any kind in North America. Chip makers ramped up their global spending on land, equipment and buildings last year by 91 percent over 2009 to nearly $50 billion. This year, Semico Research predicts, semiconductor companies will invest an additional 15 percent.
There may be another desirable feature coming with the introduction of 32nm Atoms, however, that we really didnt expect to happen: they could be significantly cheaper to buy. DigiTimes is reporting that Cedar Trail Atoms will be between 30-50% cheaper than the current 45nm chips. The Atoms vendors buy today cost between $64$86, the Cedar Trail Atoms are expected to only cost between $42$47.
Intel New Product Series- Atom Intel's Atom series of processors debuted in May of last year. We may see the latest generation -- codenamed "Oak Trail" -- in tablets this summer. Long absent from the mobiledevice arena, Intel processors may arrive in tablets as soon as this summer. Acer will launch a tablet powered by Intels Oak Trail processor, which could start selling as early as July, according to sources cited by DigiTimes. Asus and Lenovo will follow Acers lead shortly thereafter, say the sources. Earlier this month Intel announced the new phases of a multi-year Atom processor update. The revised Atom release schedule will see a 32nm tablet and smartphone chip (Medfield) in 2012, a 22nm chip (Silvermount) in 2013, and a 14nm chip (Airmount) in 2014. Later this year we are set to see a new Atom chip for the desktop, though. It is called Cedar Trail and will see the desktop dual-core Atom processor move to a 32nm process rather than the current 45nm offerings. That move to 32nm will bring with it a cut in power requirements and increased performance by default.
Intels Stock Performance
Femtocell Intel and Ubiquisys have joined to develop next-generation femtocell base stations that will harness the power of the cloud, the companies said Wednesday. The goal is to create cloud-based, IP-enabled computing engines. According to ABI Research, Ubiquisys has been the world's top femtocell vendor for the past three years. By teaming with Intel, Ubiquisys will be able to build "intelligent small cells" based on Intel's Atom and Xeon processors, development software, and tool chains, the U.K.-based company said.
ARM Processor Market ARM Holding plc's process architecture has yet to penetrate the desktop, mobile or x86 server markets, but this
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early, International Data Corp. (IDC) is already predicting that it will capture a 13 percent market share by 2015. In the first quarter of 2011 Intel led the market with 80.8 percent unit market share while Advanced Micro Devices and Via Technologies earned 18.9 percent and 0.2 percent, respectively. This totals 99.9 percent leaving other architectures in the rounding noise. Intel had a larger market share in the mobile sector in 1Q11 with 86.3 percent share while AMD lost market share with 13.4 percent.
3-D TVs. The HED group, headed up Philippe Lambinet, STs senior executive vice president, is switching its processing core from ST40 (based on SH4 core originally developed Hitachi) to ARM in its Ge n. 4 platform designed for open Internet-connected TV. While the Gen 4 is scheduled for 2012 rollout, the bulk of this core work of porting to ARM, in fact, has been already carried out by ST-Ericsson, not by Lambinets team.
STs Stock Performance ARMs stock performance
Broadcom Security & Payment Leading chipmaker Broadcom Corporation (NasdaqGS: BRCM - News) completed the acquisition of security software developer SC Square Ltd. for $41.9 million. The company paid the consideration in cash, with a certain sum placed into escrow. Consequently, Broadcom acquired outstanding shares of capital stock and other equity rights of SC Square. Based in Israel, SC Square is a provider of Security Chip and Communication solutions, including e-Health, e-ID, e-Passport, Citizen cards, Signature cards, e-Employee cards and e-Banking solutions. Consumer device chip maker Broadcom has acquired SC Square, a security software maker based in Tel Aviv, Israel, the company announced over the weekend. Broadcom will pay $41.9 million, net of cash, to purchase all of
ST ARM based smart devices As Taiwanese IC suppliers like MediaTek and Mstar continue to gobble up growing chip demand among Chinas consumer electronics OEMs and ODMs, the set-top box and digital TV businesses dont exactly look exciting (or lucrative) to the semiconductor market segment any longer at least to most chip suppliers in the West. Look no further than struggling financials of Trident Microsystems and Zoran Corp. in recent quarters. But of course, for Broadcom, this is a very different story. Geneva-based STMicroelectronics, keeping up its competitive position against Broadcom, also sees an upside for digital TV including Internet-connected TVs and
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the outstanding shares of capital stock and other equity rights of SC Square, which provides a number of chip security and communication products and solutions. SC Square is a subsidiary of Nisko Projects & Communications, a high-tech company listed on Israels stock exchange. Broadcom says, with the acquisition, it is gaining a team of architects and engineers focused on security, which it deems an essential ingredient across its platforms. The company just two weeks ago announced that it had acquired Provigent, which makes semiconductors for microwave backhaul systems, for $313 million. They also recently purchased Gigle Networks for more than $75 million.
complexity, size and overall system cost to accelerate deployment of HD satellite STBs throughout the BRICA markets. ABI Research estimates that the percentage of satellite STBs shipping that support HD in Brazil, Russia and India will grow from 13 percent in 2010 to 57 percent in 2016.
Western Dijital Storage Technology Consolidation Consolidation in the storage business is continuing in 2011. Western Digital today announced its intention to acquire Hitachi Global Storage Technologies (Hitachi GST) in a deal valued at $4.3 billion. Hitachi GST is a wholly owned subsidiary of Hitachi Ltd. The proposed deal involves $3.5 billion in cash and 25 million Western Digital (WD) common shares. The deal is expected to close in the third calendar quarter of 2011. Hitachi's storage division has its roots in IBM's hard disk drive (HDD) business, which Hitachi acquired from IBM in 2002 for $2.05 billion.
Broadcoms Stock Performance
Low-Cost SoC STB As the momentum to deploy HDTV programming intensifies throughout the world, Broadcom Corporation (Nasdaq:BRCM - News), a global innovation leader in semiconductors for wired and wireless communications, today announced its next-generation 40nm high definition (HD) satellite settop box (STB) system-on-a-chip (SoC) solution. Broadcom's new technology enables low cost HDTV and interactive services to emerging markets such as BRICA (Brazil, Russia, India, China, Africa). The new Broadcom BCM7358 HD satellite STB SoC reduces design
Western Digitals stock performance
Nvidia Acquisition of Icera Nvidia today announced that it intends to acquire a privately held company
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called Icera. Icera, based in the U.K., makes 3G and 4G cellular baseband chips, which Nvidia intends to mate with its own Tegra line of smartphone processors. The acquisition, valued at $367 million, will help Nvidia compete with rivals such as Qualcomm, Broadcom, and others for scoring deals with smartphone makers. The deal is expected to close during the second half of the year.
Mstars stock performance
Nichia LED Chips Japan-based Nichia, the world's largest producer of LED chips, will invest US$16 million to establish LED chip production and packaging lines with an annual capacity of 2.7 billion LED chips at its existing factory in Shanghai, eastern China, according to industry sources in Taiwan. According to industry estimates, Nichia's annual revenue in 2010 was around US$1.5 billion, top of the industry. South Korea-based competitors such as Samsung have been expanding LED production aggressively. In 2010, Samsung's annual revenue from LED reached around US$1.1 billion. Digitimes Research pointed out Nichia's global market share of LED in 2010 reached 25%, with annual shipments of over 12.5 billion units. To meet the growing demand, Nichia has invested over JPY1 trillion (US$12 billion) in LED equipment and R&D. By 2012, Nichia's total shipments are expected to reach 50 billion units.
Nvidias stock performance
Mstar Business Fabless IC firm MStar Semiconductor expects its consolidated revenues to grow by up to 6% sequentially in the second quarter of 2011, while gross margin will stay flat at 40-42%. Shipments of handset solutions are expected to continue rising on quarter while those of TV chips may stay flat due to seasonal factors, company chairman Wayne Liang said at a recent investors meeting. MStar enjoyed a rise of 30-50% sequentially in handset IC shipments in the first quarter, Liang indicated. Shipments are likely to climb at the same rate on a sequential basis in the second quarter, Liang added. MStar estimated consolidated revenues at between US$280 million and US$297 million in the ongoing second quarter, representing sequential growth of 0% to 6%. Its sales for April declined 11% on month to NT$2.83 billion (US$97 million).
IC Market OLED The global market for OLED (organic light emitting diodes) will reach $4.8 billion in 2016, according to market research firm NanoMarkets LLC. Of that estimate, Europe will be responsible for
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$1.5 billion in OLED lighting panel sales and Asia is expected to provide $2.1 billion. Japan is set to lead the OLED lighting business in Asia. Japanese companies have taken up key positions across the OLED lighting supply chain and sales of OLED lighting in Japan are expected to reach $1.1 billion by 2016. LED Chipmakers While China-based LED chipmakers have been rushing to install new MOCVD equipment to obtain local government subsidies which are expected to expire at the end of June, most of the additional capacity will come into operation in the second half of 2011, prompting concerns that there will be oversupply of LED chips amid weaker-than-expected demand for LED-backlit TVs. But Taiwan-based LED chipmaker Epistar remains optimistic, saying an oversupply of LED chips is unlikely to occur in the second half of the year. LED capacity utilization rate has been increasing since March, ShieShien Chang, spokesperson of Epistar said. The market should not see oversupply since the production in the third quarter is to meet the demand for the fourth quarter which is the traditional boom season for the market, added Chang. Overall, the supply of LED chips is expected to grow every quarter from beginning of 2010 to end of 2011.
shipments grew in the first quarter of 2011 by 1.6 percent sequentially and by 7.4 percent compared with 1Q10, IDC said. As a consequence it has raised its forecast for 2011 year-overyear growth to 10.3 percent from 10.1 percent. Semiconductors The global semiconductor equipment spending in 2011 is expected to increase by 16 percent with current estimation of 3 percent increase for 2012. At 16 percent growth, 2011 would see the second highest level in equipment spending for the semiconductor industry, second only to the $48 billion spent in 2000. In the Southeast Asia region, total semiconductor equipment spending is expected to reach $4.3 billion and $4.9 billion in 2011 and 2012, respectively. For 2011, about $2.6 billion to $2.8 billion will be spent on fab equipment, $900 million for test equipment, and $600 million on packaging equipment. In addition, the total semiconductor materials spending in Southeast Asia will reach $7.5 billion and $7.7 billion in 2011 and 2012 respectively. Packaging materials account for $5.8 billion of the spending this year, with fab materials spending forecasted to reach $1.7 billion.
NAND Flash The NAND flash memory market generated revenues of US$5.36 billion in the first quarter of 2011, up 9.9% from US$4.88 billion in the fourth quarter of 2010, according to DRAMeXchange. Samsung Electronics continued to lead the market with a 36.2% share, followed by Toshiba with 35.1%. Total NAND bit shipments rose by 13% sequentially in the first quarter, while ASPs slipped by about 3%, DRAMeXchange said. Despite sluggish retail sales for flash cards and drives as a result of seasonality, demand for system products such as smartphones
Processors Market research firm International Data Corp. expects this year's PC processor market to expand 10.3 percent in terms of units from 2010, and revenue to reach $43 billion for a 17.6 percent year-over-year increase. IDC did not indicate the number of processors for mobile and desktop computers and x86 servers it expects will ship. Nonetheless, with revenue growing faster than units, this trend implies increasing average selling prices in 2011. Worldwide PC microprocessor
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and tablet PCs grew steadily, DRAMeXchange indicated. Only Micron Technology and Intel among the world's major NAND flash producers expanded their market shares sequentially in the first quarter of 2011, DRAMeXchange said. Both enjoyed more than 10% sequential growth in NAND flash sales during the quarter thanks to higher bit shipments and transition to 25nm process technology. Market leader Samsung enjoyed a more than 20% growth in NAND bit shipments in the first quarter while ASPs declined approximately 10%, according to DRAMeXchange. Secondranked Toshiba mildly increased its bit growth, due to a power outage at its fab in December 2010 that caused shipments to fall in January and February, DRAMeXchange said.
Payment Industry Verifone Mobile Payment VeriFone Systems, Inc. (NYSE:PAY News), the leading global payment solutions provider, announced today it is partnering with Google (NASDAQ:GOOG - News) and top retailers to deploy Google Wallet, an Android app that allows consumers to use virtual versions of their existing plastic cards stored on their phones. Consumers will simply tap their phones to VeriFones NFC-enabled payment systems at the point of sale (POS) to pay, take advantage of promotions and redeem coupons.
Verifones Stock Performance
NextGen Payment VeriFone Systems, Inc. recently announced PAYMEDIA Solutions, a comprehensive, subscription-based offering that provides small to mediumsized merchants with payment solutions and access to paymentenabled media at the checkout counter, including the integration of online services such as digital couponing, loyalty, location-based social media and value-added services. PAYMEDIA builds on VeriFone's PAYware Connect intelligent gateway services to integrate traditional payment authorization with non-traditional payment-enabled media 27
and services that accommodate consumer mobile phones. VeriShield Total Protect, Secured by RSA, provides an end-to-end encryption and tokenization solution to alleviate PCI compliance issues. Merchant360, Inc., the leader in Point of Sale (POS) terminal application development and integration specializing in Mobile and Near Field Communications technology, has released a solution to enable retailers with a VeriFone Vx terminal to read barcodes from mobile phones for coupon redemption and loyalty program member identification.
leading petroleum distributor, will begin implementing VeriFones MX760 unattended payment solution at its SELFSTOP self-service dispensers beginning in May. Turkey is one of Europes leading credit card markets, but until now consumers have not been able to utilize pay-at-the-pump technologies. VeriFone is first to deliver automated payment solutions for Turkeys retail petroleum market, which has an estimated 75,000 fuel dispensers. Petline can utilize the payment system screens to display commercials and promotional videos as customers are fueling their vehicles. Hospitality Solution VeriFone Systems, Inc. (NYSE:PAY News), and MICROS Systems, Inc. (NASDAQ:MCRS - News), today announced a solution that integrates restaurant management systems with smart mobile devices, allowing consumers to pay at the table with electronic wallets on mobile phones utilizing Near Field Communications (NFC). The solution, which accommodates traditional payment cards and other mobile applications such as line-busting, is being demonstrated here this week at the NRA 2011 show (MICROS booth #4200).
Growth in South Africa VeriFone Systems Inc. (NYSE: PAY News) in an effort to expand in developing economy recently entered into an agreement to acquire South Africa-based Destiny Electronic Commerce (Pty) Ltd. The financial terms were not disclosed. Destiny Electronic Commerce provides secure payment technologies, services and solutions at the point of sale for SubSaharan Africa and the Indian Ocean Islands. With this acquisition, management expects to expand its footprint in South Africa, having sound growth prospects of a developing economy and exceptional infrastructure. Further, this acquisition will provide an opportunity to the company to expand in a potential $100 million market. The transaction is expected to close this summer. Consequently, Destiny Electronic Commerces talented management team and 160 employees possessing payments expertise will join VeriFone.
Acquisition of Hypercom US VeriFone Systems Inc., Hypercom Corp. and Ingenico SA have abandoned plans for Hypercom to sell its U.S. payment systems business to Ingenico SA in order to alleviate antitrust concerns about VeriFone's proposed purchase of the rest of Hypercom. The three electronic payment systems providers abandoned the planned transaction a week after the Justice Department sued to block both VeriFone's purchase of Hypercom and the sale of Hypercom's U.S. business to Ingenico. VeriFone Systems, based in San Jose, Calif.,
Pay at the pump VeriFone Systems, Inc. (NYSE:PAY News), today announced a contract to supply the first unattended pay-at-thepump and digital media solution in Turkey. Petline Petroleum, Inc., a
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announced plans to buy Hypercom of Scottsdale, Ariz., in November in an allstock deal valued at about $485 million, including $65 million of debt. And last month, Hypercom said it would sell its U.S. payment systems business to France's Ingenico for $54 million in cash to ease antitrust concerns about the deal with VeriFone. VeriFone would then acquire Hypercom's remaining operations, including its networking products business. But that did not satisfy the Justice Department since the three companies together account for more than 90 percent of all point-ofsale terminals in the United States. The sale of part of Hypercom's business to Ingenico, the Justice Department said in a suit filed in U.S. District Court in Washington, D.C., would not create a new, independent competitor in the market and would make it easier for VeriFone and Ingenico to coordinate pricing for point-of-sale terminals. ViVOtech, the near field communication (NFC) software and systems company, today said it has renewed its approach to VeriFone Systems, Inc. (NYSE: PAY) to acquire the U.S. assets of Hypercom Corporation (NYSE: HYC).
Hypercoms stock performance
NextGen Payment Hypercom Corporation (NYSE: HYC) today introduced IntelliNAC, a highdensity, multifunction point-of-sale network access controller that speeds transactions for financial institutions, merchants and other entities whose businesses benefit from processing large volumes of payment transactions securely, and gives Independent Sales Organizations (ISOs) a unique selling point to offer to their merchant customers. IntelliNAC builds on Hypercoms industry-leading secure networking technology that is considered the platinum standard for modern, high-performance transaction networks, routing billions of transactions daily for hundreds of financial institutions worldwide.
Hypercom Integrated Payment Solution Hypercom Corporation (NYSE:HYC News) today announced that Everlink Payment Services Inc., a leading provider of integrated payment solutions and services in Canada, has Class A certified Hypercoms high security SPOS32 payment software application V3.3 which supports both MSR1/EMV transactions and Everlinks MFC2 POS Specification on the Optimum T4200 countertop and M4200 mobile product family. With this certification, local Everlink distributors can now order Hypercom systems, considerably increasing the number of Canadian Independent Sales Organizations (ISOs) that can purchase Hypercoms products. Visa
Mobile Payment Visa announced a digital wallet service that will enable people to use their smartphones to make retail purchases. It stores and enables one-click buying through a range of credit or debit cards, putting Visa in direct competition with PayPal and Amazon's 1-Click Ordering.
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Google Mobile Payment Google Inc (NasdaqGS: GOOG - News) announced its digital wallet payment system amongst much controversy. Very soon after the company announced the new payment system at its New York offices along with partners Citibank, a subsidiary of Citigroup (NYSE: C - News) and Mastercard Inc. (NYSE: MA - News), eBay Inc (NasdaqGS: EBAY - News) and its payment unit Paypal slapped a suit on Google, as well as a number of key Google personnel. NFC kit manufacturer Ingenico has confirmed it is developing retail terminals for Google, but the search giant won't be running its own banking service just yet. Ingenico told French journalists that Google wants (US) customers to be able to redeem coupons and discounts using an NFCenabled phone, tapping it against the till to reduce the bill. For the moment that bill will have to be settled another way, though the terminals will support Google's payment mechanism when it comes.
Visas stock performance
Apple Mobile payment News that Apples cash pool increased by $US6.1 billion to $US65.8 billion in the March quarter has analysts speculating what the tech giant might do with the money. Apple chief Steve Jobs has said the cash could be used to make something big and bold a reality. Using its cash to acquire a banking licence would give Apple power over the lucrative payments business, currently dominated by Visa and MasterCard. The timing could also be perfect when you consider speculation Apple will eventually embrace Near Field Communications (NFC) technology, enabling true mobile payments. With every new release of the iPhone, hopes have risen Apple will include chips in the device to work with the contactless payment terminals popping up in stores throughout the world. Last month Visa made a strategic investment in Square, adding to the $US27.5 million of funding it received in its latest round of capital raising. Square has now shipped nearly 350,000 card readers. Apple is no doubt watching with interest. In March the Wall Street Journal reported Google was working with Mastercard, Verifone and CitiCorp to develop its contactless payment system for Android.
Square Mobile Payment First, mobile payments service Square made it easier for merchants to accept credit cards anytime, anywhere, with just a smartphone and a tiny, plastic credit-card reader. Now, the startup led by Twitter co-founder Jack Dorsey hopes to show them they can abandon cash registers, too. Square already has a smartphone app that allows people to pay for items by swiping their credit card through a tiny reader that plugs into the headphone jack of a phone or iPad. Customers can sign their name on the device's touch screen, and then have a digital receipt sent to them via email or text message. About 500,000
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merchants have these credit-card readers, which Square has given away for free since 2009. In return, the company takes a 2.75 percent transaction fee on sales. DigiMo Mobile Payment DigiMo has announced a new platform providing a mobile payment solution that requires no hardware or software modification at either the Point-Of-Sale (POS) or mobile device itself, whether cell phone, tablet computer smart phone, etc.
the decreasing cost of wireless POS terminals.
Payment Market Location Based Services The major players Apple, Google, Microsoft, Samsung, Sony Ericsson, RIM, Nokia, Palm, Motorola & others are actively developing new location technologies that will revolutionize smartphone usage, including standard features such as mobile navigation, search and social networking. When these applications come to market, consumers, mobile advertisers and enterprises will have significantly more power, literally in the palm of their hands.
Wireless POS terminal TechNavio analysts forecast that the Global Wireless POS Terminal market will reach $4.5 billion in 2014. One of the key factors contributing to this market's growth is the decreasing wireless POS costs. However, unreliable wireless connections could pose a challenge to the growth of this market. Research conducted by TechNavio reveals that the Global Wireless POS (Point of Sale) Terminals market is expected to grow at a CAGR of 17.2 percent. The report, which focuses on Americas, APAC, and EMEA, indicates that the market is currently driven by
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Energy Industry Energy Market Solar power According to IEK ITIS from Industrial Technology Research Institute (ITRI) in Taiwan, the contraction of Taiwanbased solar firms' gross margins in first-quarter 2011 was due to a lack of strong demand and clear incentive programs in Europe, in addition to the traditional low season. This slowed down the market growth with downstream firms suffering the most. The backlog in Europe has been causing uncertainties in the second quarter. The market is expected to go through shuffles as the big firms will survive and small firms will experience contraction of market share. According to IEK ITIS, most firms in the green energy business are solar-related firms and can be divided into two types: professional solar firms and firms that have solar production as subsidiaries. The first group includes firms such as Motech and Gintech. The latter includes Taiwan Semiconductor Manufacturing Company (TSMC) and AU Optronics (AUO). To analyze the trend and growth of the solar industry in Taiwan, IEK ITIS focused on nine representative solar firms. These firms include wafer, cell and module producers that are publicly traded, hence public financial reports can be used for analysis. The total revenue of these nine firms accounted for 82.9% of the total revenue of Taiwan's solar industry. Judging from the firms' financial performance according to onquarter and on-year growth for firstquarter 2011 revenues, Solartech outperformed peers with on-quarter growth of 21.4% while Gintech performed worst with a sequential decline of 20.6%. According to IEK ITIS, the main determinants of performance are technical capacity, cost control, and distribution channels.
The solar market has been facing fast changes in recent years, and therefore the performance of these firms are also experiencing large scale shocks.From IEK ITIS' analysis, the solar market will experience small growth in the second quarter as demand slowly returns in May-June. However, industry sources pointed out most solar firms are experiencing contracting revenues and production. It is quite difficult to see demand return in June, added industry sources.
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2011

BUSINESS AND TECHNOLOGY REPORT

Prepared by Ferhat nlkal 6/4/2011

BUSINESS AND TECHNOLOGY REPORT

BUSINESS AND TECHNOLOGY REPORT

BUSINESS AND TECHNOLOGY REPORT

LGs stock performance

BUSINESS AND TECHNOLOGY REPORT

Sonys stock performance

BUSINESS AND TECHNOLOGY REPORT

Sharps stock performance

Toshibas stock performance

BUSINESS AND TECHNOLOGY REPORT

Panasonics Stock Performance

BUSINESS AND TECHNOLOGY REPORT

BUSINESS AND TECHNOLOGY REPORT

BUSINESS AND TECHNOLOGY REPORT

BUSINESS AND TECHNOLOGY REPORT

adopt passive 3D panel technology for its 3D TV product line.

BUSINESS AND TECHNOLOGY REPORT

Acers Stock Performance

BUSINESS AND TECHNOLOGY REPORT

Foxconns Stock Performance

BUSINESS AND TECHNOLOGY REPORT

RIMs stock performance

BUSINESS AND TECHNOLOGY REPORT

Apples stock performance

HTCs stock performance

BUSINESS AND TECHNOLOGY REPORT

LG Displays Stock Performance

BUSINESS AND TECHNOLOGY REPORT

Taiwan-based TFT-LCD panel makers: Breakdown of 1Q11 shipment volumes (m units)

32.11 30.66 5.73 1.98 70.48

Source: Digitimes Research, compiled by Digitimes, May 2011

AUOs stock performance

BUSINESS AND TECHNOLOGY REPORT

BUSINESS AND TECHNOLOGY REPORT

BUSINESS AND TECHNOLOGY REPORT

Source: DisplaySearch, compiled by Digitimes, May 2011

Source: DisplaySearch, compiled by Digitimes, May 2011

BUSINESS AND TECHNOLOGY REPORT

Microsofts Stock Performance

BUSINESS AND TECHNOLOGY REPORT

Googles stock performance

Samsung SDIs Stock Performance

BUSINESS AND TECHNOLOGY REPORT

Intels Stock Performance

BUSINESS AND TECHNOLOGY REPORT

STs Stock Performance ARMs stock performance

BUSINESS AND TECHNOLOGY REPORT

Broadcoms Stock Performance

Western Digitals stock performance

BUSINESS AND TECHNOLOGY REPORT

Nvidias stock performance

BUSINESS AND TECHNOLOGY REPORT

BUSINESS AND TECHNOLOGY REPORT

Verifones Stock Performance

BUSINESS AND TECHNOLOGY REPORT

BUSINESS AND TECHNOLOGY REPORT

Hypercoms stock performance

BUSINESS AND TECHNOLOGY REPORT

Visas stock performance

BUSINESS AND TECHNOLOGY REPORT