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Portelligent TechAlert Service:
Competitive Alert - Third Quarter 2008

August 21, 2008

In This Issue:
H.I.S. to Offer Airline Tickets to Overseas Destinations via Cell Phone
Canon and Sony Ship100M DSC
Japan to Market Advanced Wireless Technology Overseas
Sharp Teams Up with GOME Electric to Prop Up Handset Sales in China
HTC to Debut Android Handset
Aigo Rolls out MID
Theme Song of Beijing Olympics Downloaded 5.73 Million Times
STMicroelectronics and Ericsson Set Up Joint Venture
H.I.S. to Offer Airline Tickets to Overseas Destinations via Cell Phone
CA080821-01

H.I.S., a leading travel agency in Japan, will allow its customers to purchase airline tickets to overseas destinations using their cell phones beginning this fall, reported Fuji Sankei Business i in August 2008.
 
Up till now, customers had to first call H.I.S. after checking for ticket availability on the Internet. The new service allows them to both reserve seats and pay using only their cell phones. H.I.S. is trying to capture business by offering one-stop shopping to a new generation of consumers who may not have personal computers but like being able to purchase items online using their cell phones. Payment options include credit card, electronic money, and in-store payment. H.I.S. will gradually enhance its website to make it easy for cell-phone users to take advantage of the new service.

ANA and JAL, Japan’s two leading airlines, began offering a similar reservation/purchase program through NTT DoCoMo’s i-mode service in 1999. Business users are the core of that service. Close to 70% of all airline ticket sales are purchased through online sales. However, only 6%–10% of those tickets are currently purchased via a cell phone connection to the Internet.

Typically, travel agency websites offer only information on travel packages within Japan and abroad as well as hotel reservations. The new reservation/purchase option from H.I.S. is aimed at the younger generation. It it proves popular, expect to see rival travel agencies getting on board. [M. Robertson, Portelligent]

Canon and Sony Ship100M DSC
CA080821-02

Canon of Japan announced on August 19, 2008 that it had shipped over 100 million compact digital still cameras (DSCs), reported Mainichi Shimbun.

The same day, Sony announced that it too had shipped 100 million compact DSCs cumulatively. Sony achieved the milestone in mid-June 2008, becoming the first company in the world to do so.

Canon’s IXY Digital, introduced in June 2000, was the first mass-produced DSC to be both extremely compact and fashionably designed. The company introduced the 3.2-megapixel PowerShot A70 in 2003. Canon has now released 106 DSCs since introducing its first model, the PowerShot 600, 12 years ago. The company will continue enriching its lineup with models that address an expanding consumer base with diverse needs. [M. Robertson, Portelligent]

Japan to Market Advanced Wireless Technology Overseas
CA080821-03

Japan's Ministry of Internal Affairs and Communications of Japan and an organization of industry representatives will form an alliance to send delegations overseas to market advanced wireless communication technology, including the Osaifu Keitai ("wallet phone"), reported Fuji Sankei Business i in August 2008.

Japanese wireless communication equipment manufacturers have the world’s best cell-phone technology. However, they have not been successful in cultivating overseas demand or achieving a significant presence abroad. For this reason, the Ministry of Internal Affairs and Communications is encouraging overseas corporations to adopt Japanese proprietary technologies and other technologies that Japan is known for so that export of these standards and products is possible.

Officials from the Ministry working together with an organization of representatives from the cell-phone industry have selected eight technologies as “strategic wireless systems.” In September, they will draft and publish action plans, conduct seminars, and engage in person-to-person exchanges in multiple countries primarily in Asia. Simultaneously, to improve international competitiveness, the alliance will reinforce development activities of related wireless technologies, including 3G cell phones with GSM support, VICS FM multiplex broadcasting, and disaster-prevention wireless warning system, next-generation PHS, WiMAX, 3.9G, and 4G.

The wallet phone, using FeliCa contactless IC card technology, has been widely adopted in Japan as a storefront payment alternative. In overseas markets, FeliCa technology has not yet been adopted for use with cell phones, although it has seen use in other applications. If this changes, Japanese manufacturers are in position to reap the benefits from exporting their advanced cell phones, components, and related technology. [M. Robertson, Portelligent]

Sharp Teams Up with GOME Electric to Prop Up Handset Sales in China
CA080821-04

Sharp of Japan plans to start handset sales through GOME Electric, China’s leading home electronics chain, in the fall, reported Nikkan Kogyo Shimbun in August 2008. Sharp, which ventured into China’s cell-phone market earlier this year, wants to solidify its position there by expanding its sales network and enhancing its lineup of offerings.

Currently, Sharp is selling about 10,000 handsets a month in China. It plans to boost sales volume to over 100,000 units by the end of March 2010. Sharp released the SH9010C, a premium model, in China in June 2008, in partnership with mobile phone retailer Dixintong. In October, when Sharp releases its new model, it will use both Dixintong’s and GOME’s sales networks.

Sharp’s new model is expected to be cheaper than the SH9010C, which sells for about USD $600–$700. Sharp debuted the SH9010C in China to boost its brand image as a high-end handset supplier, but now plans to add lower-price models to increase sales volume. [M. Robertson, Portelligent]

HTC to Debut Android Handset
CA080821-05

HTC of Taiwan plans to roll out a handset called the "Dream" in the U.S. in November 2008, reported China Press in August.

The Dream, which has been screened and approved for release by the FCC (U.S. Federal Communications Commission), will adopt the Android cell-phone platform developed by Google. In doing so, the Dream will be the world’s first Android-enabled phone.
 
The new handset reportedly measures 5 inches (l) x 3 inches (w) and includes such features as a large touchscreen with haptic feedback, full QWERTY keypad, 3G (W-CDMA) support, 802.11b/g WiFi, camera, and Bluetooth 2.0 + EDR (Enhanced Data Rate). [M. Robertson, Portelligent]

Aigo Rolls out MID
CA080821-06

Consumer electronics company Aigo of China has rolled out a new model of its MID (Mobile Internet Device), the P8860 "Patriot," in China, reported yesky.com in August 2008. The P8860 supports the Linux OS and Intel's 800MHz Atom Z500 processor and is priced at 4,999 yuan ($731.96 @ yuan 6.83/$US 1).

The new MID, a specialized wireless Internet connection terminal, also features a 4.8-inch touchscreen (800 x 480), camera, 512MB RAM, 4GB SSD, 802.11b/g WiFi, Bluetooth, and CDMA network support. It weighs 300 grams.

An industry analyst noted that China has been proactive in creating wireless cities through its development of WiFi networks. MIDs are expected to become the next-generation information terminal in China, following PCs and laptops. Images are available at http://notebook.yesky.com/153/8269653.shtml. [M. Robertson]

Theme Song of Beijing Olympics Downloaded 5.73 Million Times
CA080821-07

"You and Me," the theme song of the Beijing Olympics sung by British soprano Sarah Brightman and Chinese singer Liu Huan during the opening ceremony, has proved to be hugely popular.

According to the Chinese Information Bureau, the song was downloaded 5.73 million times during a 26-hour period from 22:00 (10 p.m.) August 8 to 24:00 (12 a.m.) August 9, 2008. This was the highest number of downloads for any song released through China Mobile’s wireless music platform, www.12530.com, over a similar span of time. On average, over 220,000 people downloaded the song every hour during that period.

China leads the world in the number of mobile subscribers. In July 2008, the government said that some 601 million people, or nearly one of every two Chinese citizens, owned a cell phone. [M. Robertson, Portelligent]

STMicroelectronics and Ericsson Set Up Joint Venture
CA080821-08

STMicroelectronics and Ericsson announced that they would create a joint venture by merging ST-NXP Wireless and Ericsson Mobile Platforms (EMP), reported ITpro in August 2008.

The new fabless joint venture, a 50-50 equity split, will supply semiconductor products and platforms for mobile applications. It will be based in Geneva and have about 8,000 employees, with pro-forma 2007 sales of USD $3.6 billion. In setting up the joint venture, STMicroelectronics will acquire a 20% share of ST-NXP Wireless, the joint venture created by STMicroelectronics and NXP in July 2008.

The joint venture will supply various platforms, including modem, multimedia, and connectivity solutions for 2G/EDGE, 3G, HSPA (High-Speed Packet Access), and LTE (Long-Term Evolution) technology. The joint venture will be an important supplier for major cell-phone manufacturers, including Nokia, Samsung, Sony Ericsson, LG Electronics, and Sharp. Together, these companies control about 80% of the global wireless handset market. [M. Robertson, Portelligent]