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Portelligent TechAlert Service:
Competitive Alert - Second Quarter 2008

June 16, 2008

In This Issue:
Apple to Introduce iPhone 3G in China
Datang Mobile Completes 3.5G Upgrade Monitor Test
Huawei Releases Handset in Japan
Sharp to Sell Handsets in China
Elpida Teams Up with Qimonda
KDDI Launches Sport Phone
Willcom’s PHS Recalled
LG Electronics Introduces Phone with Detachable Bluetooth Headset
Apple to Introduce iPhone 3G in China
CA080616-01

Apple announced recently that it would release the iPhone 3G in 22 countries and regions around the world, reported Japanese news portal livedoor.com in June 2008. Although the release schedule is not clear, Apple is reportedly having talks with China Unicom about bringing the iPhone to China.

At the same time, UK tech portal The Register reported that Apple CEO Steve Jobs had already revealed that the company would bring the iPhone 3G to China later this year.

As a prerequisite for the iPhone's release in China, Apple will have to obtain a network access permit from China’s Ministry of Information Industry (MII). The special permit could be a barrier to Apple’s immediate release of iPhone in China.

Earlier this year, China Mobile reportedly shied away from the iPhone deal. It was reported then that China Mobile would not concede to the revenue-sharing proposal that Apple put forward. [M. Robertson, Portelligent]

Datang Mobile Completes 3.5G Upgrade Monitor Test
CA080616-02

Datang Mobile, a subsidiary of Chinese telecommunications equipment giant Datang Telecom, completed a monitoring test of the upgrade from the TD-SCDMA (3G) network to a TD-HSDPA (3.5G) network in the cities of Shanghai and Guangzhou, reported China Press in June 2008.

Datang Mobile is the leading contractor for China Mobile’s TD-HSDPA upgrade. China Mobile, the largest mobile phone operator in China, opted for the TD-HSDPA technology to improve its TD-SCDMA network, instead of adopting the WiMAX standard.

In addition to the cities mentioned, China Mobile plans similar upgrades to its TD-SCDMA networks in Beijing, Tianjin, Qinhuangdao, Shenzhen, and Amoy. [M. Robertson, Portelligent]

Huawei Releases Handset in Japan
CA080616-03

Huawei Technologies of China introduced the H11HW handset through EMOBILE of Japan, reported tech portal Impress Watch. The handset, which went on sale in mid-June 2008, is priced at 29,800 yen ($276.18 @ yen 107.90/$US 1).

The H11HW features a 2.0-inch TFT-LCD (176 x 220) main display, 1.1-inch OEL (organic electroluminescent) external display (96 x 64), 2-megapixel external CMOS camera, and 300,000-pixel CMOS camera. It also supports a wide array of file formats, including WAV (ADPCM), MDI, AMR, MP3, AAC, AAC+, Enhanced AAC+, QCP, MP4, 3GP, 3G2, and PMD. Other features include a microSD card slot (up to 2 GBytes), Bluetooth, and EMnet, a satellite-based emergency messaging service.

The H11HW is the first handset capable of voice calls to be manufactured by Huawei and supplied to the Japanese market. It is based on the U550, which was marketed in Europe in 2007. Huawei developed the operating system and user interface for the phone, which has been customized for the Japanese market. All development and manufacturing was carried out in China.

The phone measures 49.5mm (w) x 97.8mm (l) x 17.5mm (d) and weighs 105 grams. The H11HW is compliant with HSDPA (max. 3.6Mbps for downstream; max. 384Kbps for upstream), W-CDMA, and GSM. It is also SIM lock free, which means its use is not restricted to certain countries and carriers. However, the handset supports only 1.7GHz W-CDMA. In Japan, therefore, the H11HW can be used only with EMOBILE’s network, which operates at 1.7GHz. Images of the H11HW can be seen at http://k-tai.impress.co.jp/cda/article/news_toppage/40329.html. [M. Robertson, Portelligent]

Sharp to Sell Handsets in China
CA080616-04

Sharp of Japan announced that it would begin selling handsets in China, reported Fuji Sankei Business i in June 2008. The company plans to begin its foray into the Chinese market with a high-end model aimed at upscale users, and will add two or three models by year’s end. Yoshisuke Hasegawa, group general manager of Sharp's communication systems group, commented that the goal is to make the operation profitable in China by the end of fiscal year 2009/2010.

The move by Sharp comes as other Japanese handset manufacturers have withdrawn from the very competitive Chinese market. Sharp anticipates that it will take time to establish a presence in the Chinese market. The company will begin by strengthening ties with local retailers and handset sales shops, expanding its sales network gradually.

Initially, the company will introduce its Japanese models in China, beginning with the SH9010C. Manufacturing will be outsourced to a Chinese OEM (original equipment manufacturer) manufacturer in Dongguan in the central Guangdong province. Although the SH9010C is based on a model Sharp produced for Softbank Mobile of Japan, Chinese-specific software has been added to it. In the future, the company may introduce China-only models.

Sharp decided to foray into the Chinese cell phone market to capitalize on the name recognition established by its AQUOS LCD TV brand. The company decided that there are enough upscale Chinese consumers who can afford premium cell phones. The GSM SH9010C, for instance, will retail for $600–$700. Sharp also plans to introduce a dual-mode handset that supports both 3G and 2G protocols. [M. Robertson, Portelligent]

Elpida Teams Up with Qimonda
CA080616-05

Elpida Memory of Japan announced in June 2008 that it would partner with Qimonda of Germany to develop next-generation DRAM, reported Fuji Sankei Business i. The companies hope to roll out 40nm products by 2010, with 30nm technology enabling cell sizes as small as 4F² also on the roadmap. The 40nm technology allows more than twice the bits per wafer over the company’s 58nm trench technology.

Elpida and Qimonda also agreed to cross-license their intellectual properties. Per the agreement, the pair will share engineers between their respective R&D facilities in Hiroshima and Dresden. Qimonda will provide "buried wordline" technology, while Elpida will provide stack capacitor technology. The pair also discussed the possibility of joint development opportunities in the areas of Through Silicon Via technology.

Elpida’s CEO Yukio Sakamoto is very favorable towards the partnership, which was finalized in a relatively short period of time. Through this partnership, Elpida hopes to bolster its position as one of the leading DRAM producers in the world. [M. Robertson, Portelligent]

KDDI Launches Sport Phone
CA080616-06

KDDI (au), Japan’s No 2 wireless carrier, announced the Sportio phone (also known as the W63T), which can track and display the number of steps taken by a user during an exercise routine as well as the calories consumed, reported tech portal IT+PLUS in June 2008. The phone, which went on sale in mid-June, is sourced from Toshiba. It houses a 2.2-inch TFT-LCD display, a 1.96-megapixel camera, and a microSD card slot for up to 2Gbytes of additional storage.

The CDMA 2000 1x EV-DO Rev. A phone features a motion sensor that calculates the exact number of steps taken by the user while walking or running as well as the overall distance, and estimates the number of calories consumed during the workout. The user can store the data at a dedicated site and check it on a standby screen. The Sportio also features a function called “Beat Run”, which speeds up music when the user dances along. Adidas plans to market sportswear and armbands that incorporate the design of the Sportio.

The Sportio measures 52mm (w) x 93mm (l) x 13.7mm (d) and weighs 86grams. It supports the KCP+ phone platform and features EV-DO Rev. A, Bluetooth, as well as KDDI's au one Gadget application, which allows users to easily download favorite widgets. However, the Sportio, which targeted at females in their 20s and males in their 30s and 40s, does not support “wallet phone” functionality and One Seg broadcasting. [M. Robertson, Portelligent]

Willcom’s PHS Recalled
CA080616-07

Japanese PHS service provider, Willcom, announced in June 2008 that it would suspend sales of the X PLATE WX130S (http://www.willcom-inc.com/ja/lineup/wx/130s/), a PHS handset manufactured by Seiko Instruments, reported Mainichi Shimbun (one of the largest newspapers in Japan).

Because of a defect related to the generation of excess heat, Willcom will replace 8,300 units of the WX130S, which have already been sold, with new handsets. The cause of the defect is faulty insulation of the back speaker. If the phone rings for over a minute when a called is received, the phone becomes very hot. However, there is little danger of the phone catching fire. [M. Robertson, Portelligent]

LG Electronics Introduces Phone with Detachable Bluetooth Headset
CA080616-08

LG Electronics MobileComm U.S.A. announced the LG Decoy, which houses a detachable Bluetooth headset in June 2008, reported tech portal Tech-On! The company is showcasing the handset at the 2008 SIG (Special Interest Group) Holiday Gift Guide Event being held in New York City. The LG Decoy will be available through Verizon Wireless in the U.S.

The slider-style handset, also known as the LG-VX8610, integrates a detachable Bluetooth wireless headset that can be charged while attached to the phone. As a result, the user can conveniently charge both phone and headset at the same time. The handset features a five-direction joystick, 2-megapixel camera, camcorder, MP3 player, and microSD card slot. Its metallic finish and sophisticated design give it a futuristic feel, noted LG Electronics. Images of the LG Decoy are available at http://itnews.inews24.com/php/news_view.php?g_serial=335875&g_menu=020300.

At the event, LG is showcasing other models as well, including the LG Rumor in Blue, LG Vu, LG Flare, and LG Voyager. In addition, it is exhibiting several new Bluetooth-compliant headsets—the HFB-500, HBM-310, and HBS-250—which will hit the market in summer 2008. [M. Robertson, Portelligent]