China Mobile to Offer 3G Service in 38 Cities
Haier to Boost Overseas Production to Control Production Costs
Softbank Mobile Cuts Communication Charge for Smartphones
Sony to Boost Personal Computer Output
Sony Ships New and Enhanced PSP Model
UQ Communications Installs First Mobile WiMAX Cell Station
Samsung Electronics Showcases MacBook Air Contender
Korean Flat-Panel Producers to Offer TV Manufacturing Service

China Mobile will launch 3G service in 38 cities throughout China beginning in June 2009, reported Digital Times in August 2008.

China Mobile, the world’s largest wireless carrier based on number of subscribers, began offering TD-SCDMA 3G service in Beijing, Shanghai, and six other cities in time for the Beijing Olympics. It will begin installing 3G networks in 38 more cities in October 2008. The company's announcement came two days after rival China Unicom announced that it would start offering domestic 3G mobile service in 50 cities within two years.

Bloomberg reported that China Mobile’s net profit for the first half of 2008 improved 45% year on year to $8 billion, which was more than the market expected. Its sales for the first half 2008 increased by 18% year on year to $28.7 billion. [M. Robertson, Portelligent]

Haier, a leading Chinese home electronics manufacturer, plans to produce products abroad in order to curtail production costs, reported China Press in August 2008.

Multiple factors, such as a surge in prices for raw materials and energy, the higher cost of domestic labor, and the appreciation of the yuan against the US dollar, have begun putting pressure on China’s export industry and diluting the cost competitiveness of Chinese products abroad.

Haier plans to expand its overseas production to remain competitive. [M. Robertson, Portelligent]

Softbank Mobile of Japan has reduced the fixed-rate communication charges of its “Packet Flat-rate Full” plan for smartphone users from 1,695 yen ($15.56 @ yen 108.93/$US 1) a month to 1,029 yen a month ($9.45) for a certain amount of packets. Depending on usage volume, that basic monthly rate can increase to as much as 5,985 yen ($54.96).

NTT DoCoMo, Softbank’s larger domestic rival, announced in late August 2008 that it would introduce a new communication plan this October for its smartphone users. In response, Softbank, which has vowed to match competitors’ plan within 24 hours, launched its new plan. It lowered its monthly charge for the  iPhone 3G, which went on sale in July 2008, to 2,324 yen ($21.34) a month. The move comes barely a month after Softbank lowered the monthly rate to 2,999 yen ($27.54) in early August.

When the iPhone 3G became available, Softbank's monthly plan cost 5,985 yen ($54.96), which it reduced twice to make it more affordable. The iPhone 3G sold out everywhere in Japan the day it went on sale, July 11, 2008. Now that the craze has calmed down a bit, most stores have iPhones in stock and the new lower-cost rate plan from Softbank is aimed at getting the popular smartphone into more and more hands. [M. Robertson, Portelligent]

Sony Corporation of Japan plans to boost its output of personal computers from 5.2 million units in fiscal 2007 to 10 million units by fiscal 2010, reported Fuji Sankei Business i in August 2008.

Sony is currently the eight largest personal computer (PC) maker in the world. It plans to cultivate high-end demand of upscale users in emerging markets to reach its lofty sales goals. The company shipped 5.2 million VAIO-branded PCs in fiscal 2007. It plans to ship 6.8 million units this fiscal year, up 30% year on year.

Sony previously announced in June 2008 that it would expand its PC operation into a 1 trillion yen ($9.18 billion @ yen 108.93/$US 1) a year business, when combined with its Blu-ray and semiconductor business. For it to achieve that level of sales with PCs alone, it would have to ship more than 10 million PCs.

Research company IDC (International Date Corp.) of the U.S. says that global PC shipments were at 260 million units in 2007. It predicts that volume will grow to 380 million by 2010. While demand for PCs has slowed down in developed countries, in emerging economies such as Russia and Asia it is still growing. Sony hopes to capitalize on that growth by supplying high-end, high-quality PCs to upscale consumers in those emerging markets. [M. Robertson, Portelligent]

Sony Computer Entertainment of Japan announced that it would market a new model of its popular handheld game console, the PlayStation Portable (PSP), reported Fuji Sankei Business i in August 2008.

The new PSP-3000 model, which has an improved LCD screen and built-in microphone, will be available this coming October in Japan, Europe, and Asia. The new model is based on the PSP-2000, which is thinner and more lightweight. However, the PSP-3000 has five times better display contrast and twice the response speed, and is capable of displaying video more smoothly.

Using the PSP-3000's built-in microphone, users will be able to use Skype without attaching an optional microphone as with the previous version. The price of the PSP-3000 is $199 for two limited-edition bundles or $169 for the console alone, the same price as the PSP-2000.

Sony introduced the first PSP model, the PSP-1000, in December 2004. It has sold about 41 million PSPs worldwide since then. [M. Robertson, Portelligent]

UQ Communications of Japan announced that it has installed its first Mobile WiMAX base station, reported Impress Watch in August 2008.

UQ Communications is a mobile WiMAX operator jointly owned by KDDI, Intel, JR East Japan, Kyocera Corporation, Daiwa Securities Group, and the Bank of Tokyo-Mitsubishi UFJ.

The new base station is the first one for the carrier in the Tokyo metropolitan area. The company is preparing to launch Mobile WiMAX service using the 2.5GHz spectrum. It has additional plans to launch pilot service in 23 districts of Tokyo, Yokohama, and Kawasaki by February 2009. [M. Robertson, Portelligent]

Samsung Electronics of South Korea unveiled the X360, a notebook computer with a thin form factor, at the IFA2008 consumer electronics show in Berlin in August 2008, reported Computerworld.jp.

The X360 features a 13.3-inch display, which is the same size as the display on the Apple MacBook Air. The X360, dubbed “Lighter than Air,” weighs 1.27kg, which is 60gm less than the MacBook Air. However, Samsung Electronics has not published the dimensions of the new notebook. If it is indeed thinner than the MacBook Air, Samsung has said as much.

A performance comparison is difficult as the X360 runs Windows Vista, while the MacBook Air runs Mac OS X. The X360 features Intel’s Core 2 Duo processor and a 128GB SSD (solid-state drive). It has a display resolution of 1280 x 800 pixels and also features a 1.3-megapixel web camera, Bluetooth 2.0, IEEE802.11n, three USB ports, HDMI (High-Definition Multimedia Interface) port, and an Express Card slot. Samsung claims that the X360 supports 6–10 hours of battery life.

The X360 will go on sale in the U.K., France, Germany, Spain, Italy, Russia, and Hong Kong in September 2008. No word yet on pricing details or the release schedule for other parts of the world. [M. Robertson, Portelligent]

South Korean flat-panel manufacturers are venturing into OEM manufacturing of flat panel TVs, reported IT+PLUS in September 2008.

LG Display, the world’s second-largest LCD panel manufacturer, plans to start production of LCD TVs in early 2009 through a joint venture with AmTRAN (http://www.amtran.com.tw/about_2.html), a Taiwanese LCD TV OEM. The two companies will set up the joint venture in Suzhou, China, with an investment of $20 million, 51% by LG and 49% by AmTRAN. AmTRAN will also install an LCD panel module line in its TV factory so that it can produce LCD TVs from beginning to end. The capacity is estimated at 3 million LCD panel modules and 5 million LCD TVs annually.

Meanwhile, Samsung SDI, the world’s second-largest plasma panel producer, has begun pilot production of plasma TVs in Mexico. Now Samsung SDI and LG Display are getting away from producing just panels, they plan to offer manufacturing services to boost profits.

On a related note, Konka Group of China has decided to set up an LCM (Liquid Crystal Module) fab to fill current demand and prepare for future growth. The company will have eight LCM production lines, with a production capacity of 2.4 million modules annually. Construction will begin in the fourth quarter of 2008. Konka predicts that its LCD TV sales will surpass 3 million units a year by 2010. [M. Robertson, Portelligent]