Hisense to Focus on TD-SCDMA Handsets
Chinese Handset Manufacturers Plan Comeback with TD-SCDMA
Amoi Estimates 2008 Revenue at $475 Million
Warburg Pincus and Tianyu to Team Up
NXP and T3G Offer TD-SCDMA Solution
Asus Lamborghini Handset Unveiled
DoCoMo and KTF Implement Joint Procurement
Dai Nippon Printing to Distribute Content to Nintendo DS

China’s leading home electronics manufacturer, Hisense, plans to focus on TD-SCDMA handsets, reported tech portal China Press in May 2008. TD-SCDMA (Time Division-Synchronous Code Division Multiple Access) is a 3G mobile telecommunications standard currently being deployed in major cities in China to make it less dependent on Western technology.

A state-owned corporation whose products include TVs, air conditioners, and refrigerators, Hisense is concentrating its efforts on TD-SCDMA handsets at present in support of the government’s deployment of a TD-SCDMA network ahead of the Beijing Olympics.

It has already produced two such handsets and will soon market a third model. Besides TD-SCDMA technology, the company is also engaged in R & D of W-CDMA (Wideband Code Division Multiple Access), a high-speed transmission protocol used in Japan, and CDMA2000, a hybrid 2.5G/3G standard.

Hisense’s share of the Chinese CDMA market is reportedly around 10%. [M. Robertson, Portelligent]

China’s homegrown handset manufacturers are planning a comeback with production of TD-SCDMA handsets, reported tech portal China Press in May 2008.

After being badly out competed by foreign vendors in the production and sale of 2G wireless handsets, Chinese handset manufacturers are planning a comeback. And this time, with the introduction of TD-SCDMA (Time Division-Synchronous Code Division Multiple Access) technology, a proprietary 3G telecommunications standard being deployed in major cities in China, domestic manufacturers will have an advantage over foreign competition.

With the Beijing Olympics drawing near, China’s domestic handset manufacturers see a great business opportunity. Demand is expected to soar, and they are introducing TD-SCDMA handsets as fast as they can to meet that demand. [M. Robertson, Portelligent]

Amoi, a Chinese manufacturer of cell phones (including the 3 Skypephone), LCD TVs, and computer products, forecasted its revenue for 2008 to be over 3.3 billion yuan ($475.50 million @ yuan 6.94/$US 1), reported tech portal China Press in May 2008.

Based on this estimate, the company’s gross profit ratio is expected to be from 5–6%. As with other Chinese manufacturers, AMOI plans to shift its core business to 3G handsets during 2008 while strengthening ties with China Mobile, the country's largest wireless service carrier.

In order to improve its gross profit ratio, Amoi plans to promote sales of its products using the B2C (business to consumer) sales model, which eliminates the middleman. It will also beef up advertising and cultivate corporate resale channels. [M. Robertson, Portelligent]

Beijing Tianyu Communication Equipment and Warburg Pincus, a U.S.-based private equity company, signed a strategic partnership agreement, reported tech portal China Press in May 2008. Warburg Pincus plans to invest over $70 million in the Chinese company.

Warburg Pincus, no stranger to the Chinese market, has previously invested in Guomei Electric Appliances, a home electronics retailer, and Red Star Furniture Group, a furniture retailer. Industry sources agree that Warburg Pincus is one of the more successful foreign private equity companies operating in China.

In 2007, Tianyu, known for its K-Touch brand of cell phones, shipped over 17 million handsets, 28% of which were exported. K-Touch is the best-selling domestic brand in China. Tianyu plans to further cultivate its cell-phone brand strategy through this collaboration with Warburg Pincus.

Tianyu plans to introduce 40 to 50 handset models this year, producing as many as 30 million handsets. For the time being, its focus will be on low-end handsets. Noting that the TD-SCDMA (China's proprietary 3G network) market has not yet matured, the company has no plans to manufacture TD-SCDMA handsets at present. [M. Robertson, Portelligent]

NXP Semiconductors of the Netherlands and T3G Technologies of China announced in late May 2008 that they had begun offering a 3G cellular system solution, the T3G7208, reported tech portal japan.internet.com.

The Nexperia T3G7208 chipset is a multimode TD-SCDMA/EDGE solution already adopted in the Samsung SGH-L288 phone, which supports video calls, high-speed data communication, and a 2-megapixel camera. The T3G7208 enables a handset to perform automatic voice-call handover between TD-SCDMA and GSM/GPS/EDGE networks. Trials of the new 3G TD-SCDMA service are currently taking place in eight major Chinese cities, including Beijing, Shanghai, and Guangzhou.
 
The T3G7208 solution is being offered on sample basis. [M. Robertson, Portelligent]

The Asus Lamborghini ZX1 was unveiled in late May on eprice.com, a Taiwanese tech website. The new handset, which uses the Windows Mobile 6.1 operating system, was first showcased at 2008 CeBIT in Hannover. It will be exhibited in Taiwan for the first time at Computex Taipei 2008 in June.

The ZX1 measures 11.43cm (l) x 5.84cm (w) x 1.27cm (d) and weighs 119gm. It features a TI 2431 450MHz processor, 256Mbytes ROM/128MBytes RAM, Bluetooth 2.0, microSD card, built-in GPS, W-CDMA, and HSDPA.

The ZX1 is slated for a July/August release. Images are available at http://www.eprice.com.tw/mobile/news/?news_id=7222. [M. Robertson, Portelligent]

NTT DoCoMo of Japan and KT Freetel (KTF) of South Korea plan to jointly procure a 3G handset made by LG Electronics, also of South Korea, reported tech portal Chosun Online in May 2008.

DoCoMo and KTF will adopt LG Electronics’ Wine handset, a 3G phone targeted at consumers who prefer both functionality and design. The LG-made phone will make its Japanese debut in August 2008 as the FOMA L706ie, with its South Korean debut slated for September.

The LG Wine supports up to 3.6Mbps (HSDPA) downlink throughput as well as iChannel, the Canadian English-language digital cable specialty channel (http://www.nttdocomo.co.jp/english/service/imode/ichannel/), and Chaku Uta Full, a full-song download service. However, it does not support One Seg mobile TV service, "wallet phone" functionality, GPS, or document viewing.

The companies have established a Technical Cooperation Committee to carry out the joint procurement of phones in an effort to curtail overall procurement costs. [M. Robertson, Portelligent]

Dai Nippon Printing of Japan, a subsidiary of am3, plans to begin distributing novels, comics, and animations to Nintendo DS (aka NDS, a handheld game console), reported Japanese tech portal IT+PLUS. The company will provide content from leading publishing companies and animation providers.

"DS Vision," as the new service is called, will involve leading publishers and content providers such as Shinchosha (a comic bookstore in Akita Prefecture), Fujimi Shobo, Akita Shoten, Kadokawa Shoten Publishing Co., Nihon Bungei Co., and Tatsunoko Production. Dai Nippon Printing hopes to supply 1000 titles during the first year to over 200 million users.

Prices of novels and comic books will range from 100 to 600 yen ($0.95 to $5.69 @ yen 105.41/$US 1). Prices for movies and animation will range from 500 to 1,000 yen ($4.74 to $9.49). Before using the service, users must purchase a dedicated ROM and memory card set priced at 3,980 yen ($37.76). The memory card can store up to four movies (2 hours each) or 50 comics. [M. Robertson, Portelligent]