2013

BUSINESS AND TECHNOLOGY REPORT

Week 14

Prepared by Ferhat nlkal 7/4/2013

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BUSINESS AND TECHNOLOGY REPORT

Week 14
Headlines

Shipments in 2013 of TVs into the US market will amount to a projected 36.6 million units, compared to 37.6 million in 2012. Social and digital entertainment users is predicted to reach 2.4 billion by 2018 with 7.9% CAGR.

ICT Samsung Electronics is aiming to reach 500 million in handset shipments. Samsung will bring two large screen display bearing smartphonetablet hybrid devices under its 'Galaxy Mega' series. Mozilla and Samsung are tag-teaming on a new, highly secure Web browser engine dubbed Servo. LG plans to launch mobile phones by the middle of this year that support Mozillas Firefox operating system. Sony is tapping into the fastest-growing segment for digital book sales. Google Inc will launch a new version of its Nexus 7 tablet powered by Qualcomm. Cisco recently announced that it has agreed to buy cellular-network-gear provider,Ubiquisys Ltd. for $310 Million. Compal Communications has for the first time adopted to develop entrylevel Android smartphones.

Consumer Electronics (CE) Samsung said it expected to earn an operating profit of $7.7 billion in the first quarter of 2013. Samsung Electronics Co Ltd is planning to install its brand shops in more than 1,400 Best Buy Co Inc stores. Samsung has inked a deal with TeliaSonera to develop a Smart TV solution. LG Electronics are now rated on the EPEAT global registry for greener electronics. Sharp Corp. is considering selling a Polish factory. Panasonic Corp. will refocus its business toward producing car and home electronic equipment for other companies. Finlux have taken the decision to sell direct online, cutting out the retailer completely. Foxconn indicated plans to establish up to 30 additional retail locations in the Greater China. Foxconn Electronics (Hon Hai Precision Industry) has dismissed rumors that it is closing its Cybermart IT retail operations in Taiwan. Global shipments of all kinds of televisions in 2012 amounted to 238.5 million units, down 6.3 percent from 254.6 million in 2011.

Panel Industry Samsung Display has reportedly dropped pricing for its 40-inch TV panels. Samsung invested $4.8 Bn in 2011, $6B in 2012, and will invest $4 Billion in 2013. LG invested $225 million in 2010, planned investment of approx. $2.8 Bn in 2012, of that $1.9Bn. AUO is unlikely to land orders for the next-generation iPad mini. Innolux has already shipped over 300,000 6.1-inch panel shipments. BOE has plans to start producing 28inch TV panels as of June 2013. Amoled display shipments for mobile handset applications are expected to

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grow to 447.7 million units in 2017, up from 195.1 million units in 2013. The shipments of TV panels amounted to 16.8 million units, down 10% from 18.7 million units. Shipments of 9.7-inch panels rose to three million units in February, compared to 1.1 million units in January.

Retail and Payment Industry Cardtek Group has recently signed an agreement with TREVICA on a new project. Epson announced its collaboration with Jimac, Inc to equip new Epson point-ofsale (POS) printers with Web-based applications.

Semiconductor Industry Broadcom and SK Telecom recently collaborated to launch the first 5G WiFi hotspot router. STMicroelectronics has begun working with research partners to develop a pilot line for next-generation MEMS devices. NXP and Cohda have signed the Car2Car Communication Consortium Memorandum of Understanding (MoU). NXP announced that the Moscow Department of Transport has selected MIFARE Plus for the new "TROIKA" smart card Project. The ZigBee Alliance has just released for public access its third wireless specification. Gartner's global chip market numbers put the market at $299.5 billion in 2011 and falling by 2.7 percent to $291.6 billion in 2012. China-based handset and tablet manufacturers in 2012 more than doubled their share of purchases of (MEMS) motion sensors.

Software Industry Facebook has developed new software to showcase the social network on mobile devices powered by Googles Android operating system. The TV Middleware market has seen a number of recent acquisitions.

Service Industry Vivendi Universal said that it would buy its one-time legal foe MP3.com Inc.

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Consumer Electronics (CE) Samsung Financial South Korea's Samsung Electronics said it expected to earn an operating profit of 8.7 trillion won ($7.7 billion) in the first quarter of 2013, up 52.9 percent from a year earlier.

LG Greener Electronics More than 50 television models from LG Electronics are now rated on the EPEAT global registry for greener electronics, which expanded to include televisions for the first time.

LGs stock performance Samsungs stock performance Brand Shops Samsung Electronics Co Ltd is planning to install its brand shops in more than 1,400 Best Buy Co Inc stores this year, a move that some on Wall Street said could help the world's largest consumer electronics chain boost in-store traffic, sales and profitability. Sharp Selling Polish Factory Sharp Corp. is considering selling a Polish factory where it has been assembling liquid crystal display televisions for the European market as part of turnaround efforts, sources familiar with the matter said Monday. European sales of Sharp's LCD TVs stood at 1.4 million units in fiscal 2010. But, hit by the anemic European economy, the sales fell to some 1 million units in fiscal 2012. Sharp operates television assembly plants in Malaysia and the Chinese city of Nanjing, in addition to those in Poland and Mexico.

Smart TV with TeliaSonera Samsung has inked a deal with TeliaSonera to develop a Smart TV solution to offer 'set-top box free' IPTV service. This solution will eliminated the need for an external set-top-box (STB) for IPTV.

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Sharps stock performance Panasonic Refocusing its business Looking to shift away from its reliance on home electrical appliances, Panasonic Corp. will refocus its business toward producing car and home electronic equipment for other companies, according to its newly issued midterm business programme. "We'll break our dependence on home electric appliances," Panasonic President Kazuhiro Tsuga said at a Tokyo press conference last week. The firm aims to increase sales from car-related business to 2 trillion yen or more--twice the current figure--in fiscal 2018, with an eye to complete more mergers and acquisitions with other companies. In the housing sector, Panasonic plans to enhance cooperation with PanaHome Corp., a house construction firm under its umbrella, to accelerate the expansion of its home remodeling business and marketing of its nextgeneration, energy-efficient houses.

Panasonics stock performance Finlux- Vestel Direct Online Finlux have taken the decision to sell direct online, cutting out the retailer completely - hence the new name of Finlux Direct. Finlux Direct is showing a raft of new products including several LED TVs with Smart features and 3D.

Foxconn Retail shops in China Leaders of Taiwanse multinational electronics contract manufacturing company Foxconn and its affiliates indicated plans to establish up to 30 additional retail locations in the Greater China markets this year.

Foxconns stock performance

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Cybermart Retail Channel Foxconn Electronics (Hon Hai Precision Industry) has dismissed rumors that it is closing its Cybermart IT retail operations in Taiwan. Rumors about Cybermart, a retail chain in China and Taiwan under the Foxconn Group, quitting the Taiwan market have spread after several of its highranking executives reportedly left the company in January. Meanwhile, the company has also recently started discussing about canceling orders and clearing up inventory with its consumer electronics and home appliance distributors, according to sources from Taiwan's channel retailers. Foxconn pointed out that the company's channel retail business is currently undergoing a strategic transformation. The company is set to adopt a business model where its outlets will serve as experiencing centers for consumers with ecommerce at its business core.

By 2017 global television shipments will rise to 270.5 million units for a number of reasons as Chinese manufacturers flood the Asia-Pacific markets with new models; as Japan, North America and Western Europe continue to recover; and as ultra-high-definition (UHD) and organic light-emitting diode (OLED) TV uptake becomes more affordable.

TV Shipments in US Shipments in 2013 of TVs into the US market will amount to a projected 36.6 million units, compared to 37.6 million in 2012. The anticipated 2.7% contraction will be smaller than the 5.8% slide suffered by the industry in 2012 when domestic TV shipments retreated from 39.9 million units in 2011. However, it will mean that shipments will have declined for two straight years by the time 2013 is over, said IHS.

Digital Entertainment Social and digital entertainment users is predicted to reach 2.4 billion by 2018 with 7.9% CAGR. Digital entertainment revenue including social driven is expected to grow 10.06% CAGR reaching US$ 850 billion by 2018.

CE Market TV Shipments Global shipments of all kinds of televisions in 2012 amounted to 238.5 million units, down 6.3 percent from 254.6 million in 2011. Shipments arent expected to rise back to the 2011 level until 2015, when they will amount to 253.1 million units.

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ICT Industry Samsung Handset Shipments Samsung Electronics is aiming to reach 500 million in handset shipments throughout 2013, according to industry supply chain sources. The sources said that at present Chinabased panel maker BOE is shipping approximately 10 million panels a month to Samsung for its entry-level and midrange handsets. Samsung also has panel supply for use in entry-level and midrange handsets from Tianma MIcro-electronics, Chunghwa Picture Tubes (CPT), AU Optronics (AUO), as well as high-end panel technology from Sharp and Japan Display in addition to supply from Samsung Display, added the sources.

LG Mozilla Firefox OS in Smartphones South Koreas LG Electronics Inc., which has long used Google Inc.s Android in its smartphones, plans to launch mobile phones by the middle of this year that support Mozillas Firefox operating system. The company plans to launch the phones in Brazil, Colombia, Spain and Venezuela, a company spokesman said. It also plans to expand the launch of new Firefox phones to Hungary, Mexico, Montenegro, Poland and Serbia during the second half of this year or next year.

Sony Digital Book Sony is tapping into the fastest-growing segment for digital book sales by launching a dedicated shopping portal for children called Kids Corner. Launched last month as part of the Sony Reader Store, Kids Corner sells ebooks in the EPub 3.0 format. That format is readable on most e-readers, smartphones and tablets, excluding Amazon.com Inc.s Kindles, which use a proprietary format. EPub 3.0 lets publishers insert interactive elements like video and music into ebooks.

Galaxy Mega Series Samsung will bring two large screen display bearing smartphonetablet hybrid devices under its 'Galaxy Mega' series. These two Galaxy Mega phones will feature 5.8-inch and 6.3-inch touchscreens, according to SamMobile which also said that the devices are expected to arrive in the second quarter (between May and June) of this year.

Cooperation with Mozilla Mozilla and Samsung are tag-teaming on a new, highly secure Web browser engine dubbed Servo, built on Mozilla's new "safe systems" programming language called Rust. The engine is aimed at taking advantage of multicore, heterogeneous computing architectures, according to Mozilla CTO Brendan Eich.

Sonys stock performance

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Google New Generation Nexus 7 Google Inc will launch a new version of its Nexus 7 tablet powered by Qualcomm Inc's Snapdragon processor around July, two sources told Reuters, as the software giant pushes deeper into the cut-price mobile hardware market. Compal Entry Level Android Smartphone Compal Communications has for the first time adopted a reference design platform offered by Broadcom to develop entry-level Android smartphones with the first wave of such models likely to be shipped, probably to China, in the second quarter of 2013, according to industry sources.

Ciscos stock performance

Googles stock performance Cisco Acquisiton of Ubiqusys Cisco Systems Inc. ( CSCO ) recently announced that it has agreed to buy cellular-network-gear provider, Ubiquisys Ltd. for $310 million. Swindon, U.K.-based Ubiquisys Ltd. is a privately-held mobile communications company. It designs and develops communications devices and solutions for mobile operators and consumers. It specializes in small-cell radio transmitters called picocells or femtocells that improve cellular services.

Compals stock performance

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Panel Industry Samsung Display Price dropping for 40 TV panels Samsung Display has reportedly dropped pricing for its 40-inch TV panels in the China market in order to compete with makers of 39-inch panels such as Innolux Corporation and AU Optronics (AUO), according to industry sources.

AUO Next Generation Ipad Mini Orders AU Optronics (AUO) is unlikely to land orders for the next-generation iPad mini due to Apple's (AAPL) demand of Retina-lass panels based on oxide TFT technology, reports DigiTimes. According to Taiwan-based supply chain makers, AU Optronics has been struggling along the way to reach high production yields and is now incapable of producing panels with oxide TFT technology for the time being.

OLED investments Samsung invested $4.8 Bn in 2011, $6B in 2012, and will invest $4 Billion in 2013. It has sold more than 100 million OLED displays used in the galaxy S series alone.

LG Display OLED investments LG invested $225 million in 2010, planned investment of approx. $2.8 Bn in 2012, of that $1.9Bn in R&D related to OLED. Innolux 6.1 Panel shipments Innolux Corporation has already shipped over 300,000 6.1-inch panel shipments a month for Huawei Technology's Ascend Mate, according to industry sources. The 6.1-inch large-size smartphone is expected to sell well in the China market during 2013, which will help give Innolux steady handset panel shipments during the year, said the sources. Additionally, Innolux has also recently been selected as a supplier of TFT-LCD panels for use in Amazon smartphones, and has obtained 30-35% of orders for panels used in Nokia handsets, including entry-level, mid-range and high-end handsets, to become Nokia's largest handset panel supplier. AUOs stock performance

LG Displays stock performance

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from 195.1 million units in 2013, according to research firm IHS iSuppli.

Innoluxs stock performance BOE TV Panel Shipments 28 TV Panels China-based panel maker BOE has plans to start producing 28-inch TV panels as of June 2013, according to industry sources. The company's decision follows increasing demand for 29-inch TV panels made by Taiwan-based Innolux Corporation and 28-inch TV panels made by China-based China Star Optoelectronics Technology (CSOT). Both 28- and 29-inch sets are meant to replace 26-inch ones, said the sources. BOE is expected to cut the 28-inch TV panels on its 8.5G line and aims to provide the technology to vendors that are looking to sell TV units in China's rural household, student and commercial segments, the sources added. TV panels sized 28-inch are currently priced around US$80 while 29-inch ones at US$82-83, noted market observers. In the TV segment, shipments of panels amounted to 16.8 million units, down 10% from 18.7 million units. Demand, according to China-based vendors, continued to decelerate as excess inventory remained in the channel and had to be first digested. All told, TV panel shipments have experienced three consecutive months of decline, and the drop in February was the largest seen among the four large-size LCD panel applications. A total of five panel makers saw doubledigit shipment decreases, led by Taiwan-based Innolux Corporation, down 20%, said IHS.

9.7 panel shipments Shipments of 9.7-inch panels rose to three million units in February, compared to 1.1 million units in January. Apple had slashed orders in January for the 9.7-inch after ordering approximately 6.1 million units a month earlier in December 2012, ostensibly to fulfill annual contract purchase agreements with suppliers Samsung Display and LG Display. Apple resumed ordering in February of the following year on a larger basis as it prepares to transition to its next generation iPad later in 2013, said IHS.

Panel Market AMOLED Displays Amoled display shipments for mobile handset applications are expected to grow to 447.7 million units in 2017, up

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Semiconductor Industry Broadcom Cooperation with SK Telecom Leading semiconductor solutions provider Broadcom Corp (BRCM) and SK Telecom Co. Ltd (SKM) recently collaborated to launch the first 5G WiFi hotspot router to ensure reliable and faster connectivity.

STMicroelectronicss stock performance NXP MoU with Cohda for Car2Car Com. NXP Semiconductors and Cohda have signed the Car2Car Communication Consortium Memorandum of Understanding (MoU). The memorandum aims at implementing and deploying harmonized technology for the wireless communication between cars, or between cars and traffic infrastructure, in Europe. NXP and Cohda, a leading specialist in wireless communication for automotive safety applications, are the first automotive electronics suppliers to sign the MoU, following twelve major car manufacturers in October 2012.

Broadcoms stock performance STMicroelectronics Next Generation MEMS STMicroelectronics (NYSE: STM), a global semiconductor leader serving customers across the spectrum of electronics applications, has begun working with research partners to develop a pilot line for next-generation MEMS devices augmented with advanced technologies such as piezoelectric or magnetic materials and 3D packaging. The project was launched by the European Nanoelectronics Initiative Advisory Council (ENIAC) Joint Undertaking (JU), a public-private partnership in nanoelectronics.

NXPs stock performance Transportation Project in Moscow NXP Semiconductors N.V. (NASDAQ: NXPI) announced that the Moscow Department of Transport has selected MIFARE Plus for the new } 11

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"TROIKA" smart card project in order to provide a smooth system migration to higher security. The new multi-modal card aims to improve the quality of passenger service and make public transport more attractive to use. The Moscow transport network serves an urban area with a population of over 20 million people, and enables over 350 million trips per month. Zigbee Alliance Zigbee IP The ZigBee Alliance has just released for public access its third wireless specification, the ZigBee IP for Direct Internet Connections.

MEMS in China China-based handset and tablet manufacturers in 2012 more than doubled their share of purchases of microelectromechanical systems (MEMS) motion sensors, reflecting the rising prominence of the companies in the global market, IHS iSuppli said. China-based makers as a whole were the third major user of motion sensors for handsets and tablets in 2012, accounting for 15% of the market, up from 7% in 2011, IHS indicated.

Semiconductor Market Global Chip Market Gartner's global chip market numbers are slightly lower than those quoted by the World Semiconductor Trade Statistics organization, which put the market at $299.5 billion in 2011 and falling by 2.7 percent to $291.6 billion in 2012.

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Software Industry Facebook Facebook Home Mark Zuckerberg, the co-founder and chief executive of Facebook, said the company has developed new software to showcase the social network on mobile devices powered by Googles Android operating system. The company unveiled Facebook Home, an Android app that will change your phones home screen and core features. It will be released in the Play Store on April 12, with an update coming every month.

Nagra, Microsoft, Motorola Home, and Rovi account for 70% of the market. Meanwhile, a significant number of startups offering innovations on one aspect of the television experience account for 20% of the market.

Facebooks stock performance Software Market Acquisition of TV Middleware Market The TV Middleware market has seen a number of recent acquisitions, notably Ciscos acquisition of NDS and Arris acquisition of Motorola Home from Google. Ericssons rumored acquisition of Microsofts Mediaroom Middleware Group would further the consolidation. About 80% of revenues within the middleware, conditional access (CAS), and digital rights management (DRM) markets come from companies with end-to-end solutions, according to a recently published study by ABI Research. Within the total market, the top 5 players, including Cisco/NDS, } 13

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Service Industry Vivendi Online Music French media giant Vivendi Universal said that it would buy its one-time legal foe MP3.com Inc. for about $372 million in hopes of bolstering its online music business. MP3.com,which operates a music download Web site and a series of other music services, represents one possible springboard for the distribution of music over the Internet for Vivendi Universal, which owns the world's largest record company, Universal Music Group.

Payment Industry Cartek Agreement with Trevica for TSM Cardtek Group, the global payment systems solutions provider, has recently signed an agreement with TREVICA on a new project. Cardtek Group, will provide a mobile payment system infrastructure to Trevica with their product TSMXpert for NFC (Near Field Communication) enabled mobile payment solutions.

Epson Cloud Based POS Epson Philippines Corporation (EPC) announced its collaboration with Jimac, Inc., a Filipino-owned software company, to equip new Epson point-ofsale (POS) printers with Web-based applications.

References Vivendis stock performance Tweets Please follow my twitter accounts (ferhatunlukal) if you want to reach the details of the news in the report.

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