Sony Ericsson to Achieve Top Three Status in 2011
Fujitsu Considers Spinning Off HDD Operation
Sega Toys to Roll Out Compact, Inexpensive Digital Photo Frame
Will Disney Bring Magic to Japanese Cellular Phone Users?
Willcom to Debut China-Ready PHS Phone
One Out of Four Handsets to be Korean-made in 2008
SGH-E250 Cell Phone to Surpass 20 Million Units Sold
Nokia’s N95 8GB Phone Certified by DLNA

Nihon Keizai Shimbun reported in early January 2008 that Sony Ericsson’s new CEO, Hideki Komiyama, commented that the company would become one of the world’s top three manufacturers of cell phones by 2011. Sony Ericsson’s global market share was estimated at 9.2 percent in 2007. Itmedia, a Japanese technology news site, reports that Sony Ericsson sold 103.4 million phones in 2007, which increased its market share by 2 points from the previous year. Currently, the Japanese Swedish joint venture ranks as the fourth largest maker of cell phones in the world, but it plans to adjust its production and distribution network in the U.S., India, and China to boost its global market share to around 15 percent.

Mr. Komiyama stressed that his company wants to improve its share in the U.S., where its market share is only 2 percent at present. [M. Robertson, Portelligent]

According to Itmedia, a Japanese technology news site, Fujitsu of Japan is considering spinning off its HDD operation. The company decided that it can no longer compete cost-effectively with its rivals in the HDD market. Fujitsu, currently the 7^th largest HDD manufacturer in the world, is considering merging the operation with another company or selling it outright.

One reason for the move is that portable music players are increasingly using flash memory instead of HDD. As a result, the outlook is not good for Fujitsu and other HDD manufacturers. In fact, Hitachi, the third largest maker of HDDs, has been reporting losses ever since it took over IBM’s HDD operation. In December 2007, Japanese media reported that Hitachi planned to sell almost half of its stake in HGST (Hitachi Global Storage Technologies) to a foreign fund.

Fujitsu announced in late January 2008 that it will spin off its semiconductor operation as well. The company foresees worsening profitability in the HDD and semiconductor markets due to international competition and changing technology. Shedding these money-losing operations will allow Hitachi to focus on its core information system services. However, no definite date for either move has been set. [M. Robertson, Portelligent]

Sega Toys of Japan plans to market a small, inexpensive digital photo frame. The Digipod D series measures 7.7cm (W) x 5.5cm (H) x 2.7cm (D) and has a 1.5-inch color LCD panel. The Digipod D series will be available in March 2008 for 3,675 yen ($34.78 @ yen 105.65/$US 1). It uses two AAA alkaline batteries as a power source. When connected to a personal computer via a USB cable, the Digipod can transfer and hold up to 55 images. It also supports slide presentation and time display. Supported OS are Windows XP and Vista.

Walt Disney Japan announced in late January 2008 that the company would enter the Japanese wireless market in March. The company will collaborate with Softbank Mobile on network, service plans, and handset distribution. Disney will concentrate on providing content.

The service, dubbed Disney Mobile, is primarily targeted at young professional females in their 20’s and 30’s. Disney will enter the Japanese wireless market with a dedicated handset supplied by Sharp called the DM001SH and based on Softbank’s 821SH. The DM001SH is decorated with a Mickey Mouse silhouette on both the casing and the center key. The top right D (for Disney) button enables the user to access Disney Web, which is a collaborative effort of Disney Mobile and Yahoo. The phone comes installed with original Disney video clips, ringer melodies, icons, stamps, and photo frames for photos. The DM001SH supports a 2MP CMOS camera, One Seg TV broadcasting, mobile FeliCa, and a Windows MP3 player supporting WMA. It has a 2.6-inch wide QVGA LCD. The phone is compliant with Softbank’s HSDPA service. Disney Mobile subscribers will be entitled to free Disney content as well as video, music, and games. Disney plans to add three models a year to the line. Images of the DM001SH can be seen at http://plusd.itmedia.co.jp/mobile/articles/0801/22/news158.html.

Walt Disney operated a similar MVNO (Mobile Virtual Network Operator) service targeted at children and their parents in the U.S., but ended the service at the end of 2007 (http://disneymobile.go.com/home/homepage.html). [M. Robertson, Portelligent]

Willcom, Japan’s PHS (Personal Handyphone System) carrier, plans to debut the X Plate WX130S phone, which can be used in China and Japan. The phone will be manufactured by Seiko Instruments.

The X Plate is a compact PHS handset targeted at business users. It supports the high-speed PHS protocol W-OAM (Willcom-Optimized Adaptive Modulation) as well as international roaming in Taiwan and Thailand.

The phone also features a PIM (PHS Subscriber Identity Module) card slot, which is a SIM card used for Chinese PHS. When a Chinese PIM card is inserted into the X Plate, it can be used as a phone in China; however, a Japanese phone number cannot be transferred for use in China.

Willcom plans to offer rental PIM cards in time for the 2008 Summer Olympics in Beijing. Charges for use in China will be combined with charges for use in Japan and billed together to the subscriber.

The phone’s display is a 1.8-inch TFT-LCD with 128 x 160 pixels and 65536 colors. The X Plate supports IrDA (Infrared Data Association protocol) communication but has no camera. The X Plate will be launched in Japan in late February 2008. [M. Robertson, Portelligent]

In 2008, one out of four phones sold globally will be made in South Korea.

According to sources in the industry, global cell phone sales for 2008 are estimated to be 1188 million units. Samsung Electronics, LG Electronics, and Pantech, which have all raised their shipment goals for 2008, together are forecasted to provide more than 309.6 million phones in 2008. If that happens, one out of every four phones sold globally will be made in South Korea.

Samsung Electronics plans to ship 200 million phones in 2008, 38.5 million more than it shipped in 2007. About half of those 38.5 million additional units will be produced at its factories in China, India, and Brazil. Samsung Electronics is also considering setting up a cell phone factory in Vietnam to capture rising demand in Southeast Asia.

LG Electronics plans to sell 100 million phones this year. The company sold 80 million phones globally in 2007.

Pantech hopes to ship 9.6 million handsets this year, 20 percent more than the 8 million units it shipped in 2007. It plans to increase overseas production to 2 million phones. [M. Robertson, Portelligent]

The SGH-E250 cell phone, which Samsung Electronics targeted at emerging markets, is expected to surpass 20 million units sold by February 2008.

According to industry sources, the SGH-E250, which Samsung Electronics first marketed in November 2006, targeting Asia and Central and South America, reportedly sold 18 million units after one year. The SGH-E250 features a 300,000-pixel camera, color screen, MP3 player, and Bluetooth.

A source at Samsung Electronics said that, if the sales trend continues, the company expects the phone to sell more than 20 million units by February 2008.

Although several cell phone models have sold more than 10 million units, models that sell more than 20 million units are rare. Nokia has sold over 200 million Nokia 1100 phones since its release in late 2003, and Motorola has shipped more than 50 million RAZR handsets.

Nokia’s 1100 phone is categorized as a super low-priced phone, which sells for less than $50. RAZR sells for around $150. The SGH-E250 sells for $150, which makes it a premium phone in low-income nations. [M. Robertson, Portelligent]

Nokia, the world’s largest cell phone supplier, announced that its N95 8GB handset was certified by the DLNA (Digital Living Network Alliance). Nokia claims this is the first time a cell phone has received a certification from the DLNA.

The DLNA is a packaging specification that ensures interoperability of digital content on home networks, based on internationally recognized open industry standards. The N95 8GB was certified as a Digital Media Server, which supports storing and distributing digital content. It can connect to consumer electronics and personal computers that are also DLNA-certified.

For instance, the N95 8GB can display images stored in the phone on DLNA-certified TV, or play music tunes stored in the phone by DLNA-certified AV (audio-visual) products. Contents can be exchanged wirelessly between the N95 8GB and home electronics/personal computers. [M. Robertson, Portelligent]