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Volume 1 Number 1           Mobile Handset analyst
                     May 25, 2004        THE INTERNATIONAL BUSINESS NEWSLETTER OF DEVICES, COMPONENTS, SOFTWARE AND SMART CARDS




           Contents                        III   Components


                            NEWS
             Investment could open
                                    2      Qualcomm looks to the future with
                  doors for Intuwave

                            NEWS    3
                                           complete HDSPA solution
  Low-end vendors force Sewon to
                                           CDMA-chipset supplier Qualcomm might have gotten a              megapixels for camera functions.
            close / IPWireless rolls
                                           jump on its rivals with the announcement last week of an           The chipset forms part of an overall solution covering
                         out UMTS/TDD
                                           HSDPA-enabled solution that is due to ship in sample            transmit and receive hardware that includes the U.S.-based
                            NEWS    4      quantities in 2H05. According to industry watchers, gain-       firm’s RT6275 transceiver, RFR6275 diversity receiver and
 Foreign vendors held top slots in         ing an early lead in the market will be critical in the long    PM6650 powerOne power-management solution.
          China / Openwave details         term, with analysts predicting that HSDPA will come of             The RFR6275 receiver has been specially developed in
                   Magic4 purchase         age by 2006 or 2007.                                            conjunction with the MSM6280 for HSDPA and builds
                                              Qualcomm says its MSM6280 solution will offer peak           on the firm’s RTR6275 solution, which was announced at
                          SHORTS    5
                                           data rates of 7.2Mbps across GPRS, EDGE, WCDMA                  the same time. The RFR chip uses CMOS digital process
       HP offers wireless printing /       and HSDPA networks. The chipset is pin-compatible with          technology that is common in the components industry.
      Symbian offers apps signing /        Qualcomm’s MSM6275 product, which means that hard-              The chip includes a second antenna for HSDPA that
       Parts shortage afflicts Treo /      ware and software platforms can be shared in order to cut       Qualcomm says provides improved signal reception to en-
   Upgraded UI solution ships / LG         certification and development times.                            able higher data throughput, which it claims gives the
           picks ART voice solution           With high data rates perceived to be the savior of the       product the ability to enable up to 5dB receive diversity
                                           mobile industry because they offer the ability to deploy        gain. In addition, the 6x6mm, 40-pin Quad Flat No-Lead
                             DATA   6
                                           multimedia services, Qualcomm has geared the                    RFR chip integrates a GPS receiver, making it suitable for
Selected 1Q04 handset shipments
                         by technology
                                           MSM6280 to work with QVGA and CIF resolution video              devices shipping in the U.S. and other markets where
                                           decode and encode. Other multimedia capabilities include        emergency location services are mandatory.
       BUSINESS ANALYSIS            8      MPEG-4 decode and encode, 2D/3D graphics support                   “When it comes to handset interoperability, the lead play-
                                           for gaming, and support for imaging sensors up to 4




                                                                                                                                                                          M
         Warren Saunders looks at                                                                                                                   continued on page 2

        conformance testing in 3G
                                           III   WCDMA
                                    9
             NEWS ANALYSIS
                 Vendors jockeying
                                           Motorola aims to ‘own’ UMTS-handset market
 for position / KTF likely to follow       U.S. vendor Motorola wants to become the dominant
                                                                                                             Evolution of Motorola’s UMTS devices
           LGT’s free-MP3 crusade          player in the dual-band UMTS handset market by next
                                           year as it uses next-generation platforms to gain 20-30%         Handset                  A830         A835            E1000
           SECTOR PROFILE         10       market share. “In 2005, we want to own the market,” said         Introduced               2002         2003             2004
  Java: Fragmentation threatens to         Ward Vermoere, senior manager of 3G product operations           Size                     173cc       139cc            105cc
      stall growing handset market         at Motorola’s Personal Communications Sector. “We are            Weight                  210g*         155g             140g
                                           working with a lot of network partners, and they are work-       Display                176x220     176x220          240x320
 SUBSCRIBER SERVICE              12        ing with three to four strategy partners each.”                  Colors                   4,000      65,000          262,000
                                              Motorola started shipping UMTS handsets in late               Camera                    VGA         VGA      1.2 megapixel
                                           2002 and, according to Vermoere, had shipped more                P2P video                  No          Yes               Yes
                                           than 750,000 by end-March. In fact, the vendor shipped           PDA                      A920         A925            A1000
                                           a total of 450,000 units in 1Q04 alone – mainly to               Introduced               2003         2003             2004
From the publishers of
                                           Hutchison 3G.                                                    Size                     173cc       173cc            114cc
                                              This year, Vermoere says Motorola will use current 3G         Weight                   212g         212g             160g
                                           software platforms and drive down the size, weight and           Display                208x320     208x320          208x320
                                           battery-drain reductions of terminals (see fig.). “We’re get-    Colors                  65,000      65,000          262,000
and
                                           ting there,” he said. In 2002, UMTS handsets were 160%           Camera                    VGA         VGA      1.2 megapixel
                                           the size of a GSM unit. That figure had fallen to 140% in        P2P video                  Yes         Yes               Yes
                                           2003 and 110% this year, and parity is expected to be            *Including camera
                                                                                                            Source: Motorola
                                           reached next year.
news
Editor                             M continued from page 1
Michael Carroll
michael.carroll@informa.com
                                   er has a significant edge because all new-   sson. While Sony Ericsson has been           er,” by enabling them to close the gap on
Editorial Director
                                   comers to an operator’s handset stable       making a good comeback in handsets,          rivals KDDI, Verizon, Sprint PCS and
Gavin Patterson
gavin.patterson@informa.com        will have to keep pace with the leader,”     which will help drive some degree of         China Unicom, which have deployed
Correspondents                     says Joe Nordgaard, managing director of     consumption for the Ericsson chipset,        1xRTT and EV-DO technologies.
Peggy Albright (U.S.)              U.S. consulting firm Spectral Advantage.     the Ericsson solution has the ‘competi-          But investment bank CSFB points
Ahn Mi-Young (South Korea)
                                       Nordgaard admits that the new            tors stigma’ printed right on it.”           out that any weakness in existing
Chief Subeditor
                                   Qualcomm solutions have caused him               The spinout of Motorola’s semicon-       CDMA markets could affect Qual-
Charles Gordon
                                   to rethink the future of WCDMA tech-         ductor division last year certainly lends    comm’s results in the near term. The lat-
Production Manager
Felicity Agyemang                  nology as a whole. “For some years, I        credence to Nordgaard’s view. But            est figures from the bank show
Marketing                          have maintained that WCDMA will              Qualcomm is still in a strong position       India-based CDMA carrier Reliance
Paul Waite                         become irrelevant around 2007,” he           with regard to WCDMA chipsets and            with 236,000 net subscriber additions
T: (44) 20 7017 5614
                                   says. “These two announcements from          last week announced that its list of ven-    for April, down 36% month on month
paul.waite@informa.com
                                   Qualcomm now have me seriously re-           dor customers has grown to 21 with the       and 27% on the 359,000 adds in April
Publisher
Mark Newman                        considering that assessment. Indeed,         addition of BenQ, Mitsubishi Electric,       2003. “Given that Reliance has added
Main Office                        2007 may be the date that WCDMA              Pantech & Curitel and Vitelcom Mo-           only 1.2 million subscribers through
Mortimer House                     does become seriously relevant.”             bile Technology. Qualcomm’s customer         April, we continue to believe our full-
37-41 Mortimer Street
                                       Although the technology problems         list already included Hisense Group,         year estimate of 10 million units in In-
London W1T 3JH
T: (44) 20 7017 5000               might be solved by then, Nordgaard           Huawei Technologies, LG Electronics,         dia is the largest risk to our Qualcomm
F: (44) 20 7017 4288               points out that the established dichoto-     Novatel Wireless, Option NV, Sam-            forecasts,” the bank says.
Web Site                           my of independent chipset firms vs.          sung, Sanyo Electric, Sierra Wireless,           Handset sales in South Korea, by
www.baskerville.telecoms.com       vendor’s own components arms will re-        Toshiba and ZTE. “I doubt Ericsson           contrast, remain on track to meet
Subscriber Service                 main. “An important issue in this            will amass such a following, no matter       CSFB’s 2004 forecast of 18 million
Kate Halls and Rob Turner          chipset footrace is having a chipset of-     how well their chipsets may work,”           units, despite an 18% month-on-month
Baskerville
Sheepen Place
                                   fering divorced from other competitive       Nordgaard says.                              decline to 1.56 million in April. “We at-
Colchester                         interests,” he says. “Why would I buy a          Nordgaard says the RFR6275’s com-        tribute the sequential decline to a slow-
Essex C03 3LP                      chipset from a handset vendor who is         patibility with quad-band GSM850/            down in demand from mobile number
T: (44) 20 7017 5533               my competitor?                               900/1800/1900 could prove a bonus for        portability, along with a reduction in
F: (44) 20 7017 4783                   “The next-closest competitor in the      Qualcomm because it might “draw              channel inventories that we believe were
telecoms.enquiries@
informa.com
                                   WCDMA chipset race – by all inde-            NTT DoCoMo, Cingular, Vodafone               built in 1Q04,” the bank says.
                                   pendent accounts – appears to be Eric-       and eventually China Mobile much clos-                michael.carroll@informa.com
Americas
T: (1) 978 258 2500
F: (1) 978 258 2500                III   Software
colleen.barron@informa.com

Printed in the UK 23 times a
                                   US$3.6 mil. investment could open doors for Intuwave
yearand distributed by air mail.   Sales of a smartphone-software-testing       to bring a level of automation to smart-         Intuwave’s m-Test solution offers
(Print) ISSN 1744-1250             solution from UK-based Intuwave              phone software testing. “Vendors are         what Fox describes as “a window into
(Online) ISSN 1744-1269
                                   could be aided by a recent investment        our first port of call for m-Test, but       the device to speed up vendor’s own
No part of this publication may
be copied, photocopied or
                                   from GemVentures, the venture-capi-          we’d like to know more about opera-          software script testing.” Thus, the
duplicated without prior written   tal fund of French smart-card provider       tors and their requirements in handset       product covers testing of applications,
permission from the publishers.    Gemplus, by granting Intuwave access         and network testing,” says Intuwave          regression and interoperability, local-
© 2004 Baskerville                 to Gemplus’ handset-vendor cus-              product manager Angus Fox. “Ven-             ization and basic acceptance, such as
                                   tomers.                                      dors have a multitude of test solutions      phone boot and UI response.
                                       The deal – announced last week –         and requirements … and have tried to             The solution is initially available
                                   will see GemVentures invest US$3.6           shape them to their own require-             only for Symbian-based terminals us-
                                   million in cash in Intuwave and gives        ments.”                                      ing the Series 60 platform and UIQ
                                   Gemplus a seat on Intuwave’s board.             Fox says the variety of test solutions    user interface, though Fox says it will
                                   Terms of the investment will also re-        has led to a lot of manual testing.          be compatible with Series 80 devices
                                   quire Intuwave to merge with smart-          “None of [the systems] work very well,”      when the platform is ready. “We’re ef-
                                   card-security firm Apeera, in which          he says. “They do test the devices, but      fectively offering a pushbike to a
                                   GemVentures holds a minority stake.          don’t offer advanced automation solu-        group of people who are walking,” he
                                       Crucially, though, the investment        tions. Phone development involves a          says. “We think we know how to build
                                   will open up new avenues for In-             lot of testing, but it’s still very expen-   a car, but need to see some ROI on the
                                   tuwave’s m-Test solution, which aims         sive.”                                       first release before doing so.”

               2                                                                                                                                         May 25, 2004
news




                                                                                                                                      Mobile Handset analyst
III   South Korea                                                                        III   Data cards

Low-end vendors force Sewon to close                                                     IPWireless rolls
Growing competition from Chinese           the pair started feeling the pinch of         out UMTS/TDD
vendors at the low end of the market       greater local competition. Telson Elec-
forced South Korean vendor Sewon           tronics is struggling not to go the same      U.S.-based broadband wireless tech-
Telecom into receivership May 3, and       way as Sewon and has reduced its de-          nology provider IPWireless last week
the company will be delisted from the      pendence on China by diversifying sales       announced that it has begun shipping
KOSDAQ secondary bourse June 1.            outlets to the Americas while also try-       dual-band UMTS/TDD laptop PC
   Analysts say the firm’s plight should   ing to increase GSM phone shipments.          cards to carriers in Europe, Australia
serve as a sobering reminder that South        Telson said it is filling its pipeline    and Japan. It also said it is developing a
Korea can no longer rely on China as its   with new deals in Mexico and Brazil af-       tri-mode variant.
major sales-revenue generator.             ter signing carrier agreements in those           The current UMTS/TDD PC card
   “In China, Sewon Telecom could          markets in 2H03. The vendor promis-           operates in the 1900MHz and
not survive the price competition in the   es it is near its targeted sales-generation   2010MHz frequencies, which the firm
low-end segment, where price pressure      breakdown of 40% for the Americas,            estimates gives it a potential market of
from local rivals like TCL is the most     30% for China and 30% from the rest           some 120 carriers in Europe and Asia.
intense, while its attempt towards the     of the world.                                     One of the key features claimed by
midrange segment was blocked by Mo-            The setback for Sewon comes at a          IPWireless is that the frequencies used
torola or Nokia,” says Steven Oh Se-       time when Samsung and LGE are gain-           should facilitate global roaming, since
Wook, an analyst at Samsung                ing ground globally. South Korean an-         the bulk of 3G licenses are for the
Securities.                                alysts indicate that Samsung and LGE’s        1900MHz and 2010MHz spectrum.
   Sewon generated about 90% of its        combined world market share increased             The first devices featuring the PC
sales in China, with its portfolio com-    from 10% in 2002 to 18.3% in 2003             card were shipped to Portuguese carri-
prising mainly low-end units in the        and project that the combined world           er SonaeCom in April, and IPWireless
US$50-60 range. By contrast, Samsung       market share of Samsung, LG and Cu-           says other vendor licensees are in the
and LGE were switching to middle- to       ritel will reach 25% by the end of 2004.      process of developing new devices
high-priced handsets in the range of           From a global perspective, Samsung        based on its technology.
US$150-200.                                is now closer to Nokia than to its local          The company counts Alcatel, Solec-
   The emergence of strong Chinese         counterparts, with 1Q04 shipments up          tron, Nortel, Flextronics, Axcera, Pos-
brands has polarized South Korean ven-     30% compared to 1Q03. “If Nokia               sio and UP Tech among its partners
dors into a prosperous first-tier group    uses an economy of scale as its weapon        and licensees.
comprising Samsung, LG Electronics         to gain profit, Samsung uses a high               In addition, IPWireless is working
and Curitel, and a second tier of un-      price as its margin-fattening weapon,”        on a tri-band 1900/2010/2500MHz
derperforming vendors, led by Sewon.       Oh told MHA.                                  variant, which it says will help open up
   Sewon and Telson Electronics were           In 2003, the average sale price for a     the U.S. market because it will cover
the main South Korea vendors to have       Samsung handset was US$194, com-              MMDS spectrum, while also sitting
cashed in on the fledgling Chinese         pared with Nokia’s US$149 and                 well with any European expansion into
CDMA phone market. But in 2003,            US$143 for Motorola.                          the 2500MHz band.




May 25, 2004                                                                                                                          3
news
Mobile Handset analyst
                         III   China                                                                            III   Software

                         Foreign vendors held top slots in March Openwave details
                         Sales of data-enabled handsets in Chi- devices before the fourth quarter. Magic4 purchase
                         na contributed to a 19% year-on-year            Nevertheless, non-Chinese vendors
                         rise in sell-through numbers to 4.83        achieved a 55.4% share of the market       U.S. software-solutions provider Open-
                         million units in March, with nondo-         in March and dominate the top 10           wave Systems has rounded out an-
                         mestic vendors shipping more devices        slots in MMS handset shipments (see        nouncements of deals with IBM and
                         than local rivals.                          fig.). U.S. vendor Motorola shored up      Siemens covering its mobile browser by
                             Credit Suisse First Boston says that    its second-place standing, achieving a     revealing that it has signed a definitive
                         overall March shipments were down           15.4% market share – though CSFB           agreement to buy UK-based messag-
                         5% compared with February’s figure          notes that Motorola remains top dog        ing-software firm Magic4.
                         and that sales of CDMA units in par-        when it comes to ASP value – while            Under terms of the deal, Open-
                         ticular declined 7% to 530,000 –            Samsung echoed its global 1Q04 per-        wave will purchase all outstanding
                         roughly 11% of the total market.            formance with a market share of 9.8%       shares of Magic4 for US$82.6 million
                             GSM-based units accounted for           in March.                                  in cash and stock. The final split has
                         89% of the market in March, though              Meanwhile, Siemens has continued       not been decided, but the pair have
                         CSFB states that both technologies en-      to lose market share and was ranked        agreed on a minimum cash payment
                         joyed stronger ASPs because of growing      just 15th in March. CSFB said the ven-     of 40% of the price.
                         sales of midtier data-enabled products.     dor had a 2% share of the overall mar-        The acquisition is due to close in
                             “The proportion of CDMA 1x              ket in March. The German vendor’s          July, and Magic4 should contribute
                         handsets in the overall sales mix has       partnership with domestic player Ning-     US$9-11 million in revenue by year-
                         risen from 48% a year ago to 85% in         bo Bird is viewed as a positive, because   end, according to Openwave’s figures.
                         March 2004,” CSFB said. “For GSM,           of the 30,000 additional retail outlets    That figure is expected to grow to
                         the proportion of handsets sold with a      Siemens will gain access to. Bird ended    US$35 million by end-2005.
                         camera increased from 2.3% to 16.4%         March with a 7% share of the market,          Scott Ellison, director of wireless
                         during the same period, and the pro-        though the bank cautions that the firm     and mobile communications at re-
                         portion of MMS-capable phones in-           – like Nokia – is too focused on low-      search group IDC, says the move is
                         creased from 6% in April 2003 to 35%        end products.                              timely. “Tighter integration between
                         in March 2004.”                                 TCL, a joint-venture partner of        the primary data applications on the
                             The bank say the trend toward mid-      French vendor Alcatel, ended March         phone – messaging and browsing – is
                         or high-end devices is not good news        with a 6.5% market share. “Similar to      essential to improving service usabili-
                         for Finnish vendor Nokia, because of        Ningbo Bird, TCL’s focus is more on        ty and driving adoption,” he says.
                         the firm’s focus on low-end devices in      the low-end segment, and it had a 15%         Openwave perhaps demonstrated
                         China. While Nokia maintained its           share in the RMB1,000-1,500                its understanding of Ellison’s view
                         leading position in March with a share      (US$121-181) segment in March,”            when it teamed up with IBM to inte-
                         of 15.6%, CSFB expresses little confi-      CSFB says. “TCL’s local distribution       grate WebSphere Everyplace Mi-
                         dence that the vendor will be able to re-   network does not seem to help it gain      croenvironment with its Openwave
                         act to the upward shift with higher-end     market share any longer.”                  Phone Suite v.7. IBM’s product fea-
                                                                                                                tures certified implementations of
                          Top 10 MMS models, Mar-04                                                             J2ME technology, including CLDC
                          Rank           Vendor             Model     Retail price (US$)   Market share (%)     and MIDP, while Openwave’s mobile
                          1              Nokia               3100                    185                 2.9    software offers a raft of multimedia
                          2              Nokia               6108                    271                 1.7    solutions, including browsing, client
                          3              Nokia               3108                    214                 1.5    provisioning, download, DRM,
                          4              Nokia               6100                    250                 1.1    MMS and e-mail.
                          5              Motorola            C550                    200                 1.1       The pair expects the first devices
                          6              Samsung         SGH-S508                    302                 1.0    based on the combined software to ship
                          7              Nokia               6610                    230                 1.0    in early 2005.
                          8              Motorola            E365                    283                 0.9       Before then, the first Siemens de-
                                                                                                                vices based on v.7 – the 65 series – are
                          9              Motorola            E380                    204                 0.9
                                                                                                                expected to ship in mid-2004, follow-
                          10             Sony Ericsson       T618                    322                 0.9
                                                                                                                ing Openwave’s announcement of a
                          Source: CSFB
                                                                                                                deal with the German vendor last week.

  4                                                                                                                                         May 25, 2004
shorts




                                                                                                                                   Mobile Handset analyst
BLUETOOTH                                 PLATFORMS                                     PDAs

HP offers wireless printing               RIM builds application list                   Laplink updates sync solution
Sony Ericsson and Hewlett-Packard         Wireless e-mail solutions provider Re-        U.S.-based synchronization technolo-
have agreed on a deal to offer mobile     search In Motion has reached an               gy provider Laplink has announced
printing facilities on Sony Ericsson’s    agreement with SAP – a provider of            details of its latest PDA-synchroniza-
P800 and P900 smartphones using           business software – to integrate the          tion application, which the firm
HP’s Wireless printing for Mobile         mySAP CRM and SAP(r) solutions with           claims offers more functionality and
Phones software application. The solu-    its BlackBerry handheld platform to of-       compatibility than stand-alone Palm
tion uses Bluetooth to connect the        fer an integrated mobile sales solution.      Hotsync or MS ActiveSync solutions.
handset to compliant HP printers and      The combined product is aimed at mo-          PDAsync 3.0 synchronizes contacts,
can handle JPEG images, e-mail, SMS,      bile sales staff and will offer the abil-     calendar, tasks, e-mail and notes be-
contacts and calendar items. The soft-    ity to view sales orders and CRM              tween mobile devices and desktop or
ware is being made available for down-    analytics. Both firms will contribute         laptop PCs. The solution also adds
load from Sony Ericsson’s web site.       engineering, technical, marketing and         compatibility with Pocket PC 2003,
                                          sales resources to the solution, which        Microsoft Outlook 2003, Lotus notes
OSes
                                          SAP plans to make available later this        6.5 and selected Sony Ericsson ter-
Symbian offers apps signing               year. In a separate announcement,             minals. Laplink is offering PDAsync
UK-based operating-system provider        RIM has announced networking and              3.0 as a download for US$60.
Symbian has launched an application       systems-integration firm LAN 2 LAN
                                                                                        USER INTERFACE
signing program to standardize content    as its first officially accredited provider
for the platform in order to drive ap-    of an integrated wireless enterprise ap-      Upgraded UI solution ships
plication development. The Symbian        plication service for BlackBerry de-          UK-based mobile interface firm Tri-
Signed program tests applications         vices in the UK. LAN 2 LAN supports           genix has begun shipping the latest
against industry standards for carriers   access to back-end databases, includ-         version of its UI solution, which it
and vendors as well as providing de-      ing IBM Lotus Domino and Microsoft            claims provides the first practical for-
veloper authentication and anti-tamp-     SQL server, in addition to word-pro-          mat for defining handset UIs and serv-
er security. The program will also        cessing tools, spreadsheets and pres-         ice stores. Trigenix T4 builds on the
provide a distribution channel for Sym-   entation applications.                        firm’s previous solutions by adding
bian-based applications, and develop-                                                   compatibility with Windows Mobile,
ers whose applications are approved       Symbian adds Philips to list                  Java MIDP 1.0 and 2.0 and Symbian
will be permitted to employ a logo sig-   Royal Philips Electronics last week an-       OS-based devices, which Trigenix es-
nifying compliance with the tests.        nounced that it has joined Symbian’s          timates will account for roughly half of
                                          Platinum Partner program in order to          all handset shipments by end-2004.
I-MODE
                                          grow the customer base for its Nexperia
NTT DoCoMo grows portfolio                products. The Nexperia range consists         LG picks ART voice solution
Japanese operator NTT DoCoMo con-         of reprogrammable and ready-to-inte-          South Korean vendor LG Electronics
tinues to expand its range of i-mode      grate system and IC solutions for mobile      will deploy voice-control solutions
handsets with the launch this week of     multimedia applications, with features        from ART in its latest range of CDMA
the D506i and F506i models from           including software IP libraries.              terminals for the U.S. market, follow-
domestic vendors Mitsubishi and Fu-                                                     ing the announcement of a deal be-
                                          COMPONENTS
jitsu, respectively. The D506i fea-                                                     tween the two firms last week. ART’s
tures a voice-activated camera            Parts shortage afflicts Treo                  smARTspeak XGT embedded speech
shutter that takes pictures in re-        U.S.-based vendor PalmOne – the               interface will feature in LG’s 4500 se-
sponse to a prerecorded word and a        hardware arm of Palm – is reportedly          ries devices to enable voice dialing
multifunction button on the side of       facing a shortage of parts because of         from contacts or spoken-phone-num-
the device to control camera, voice       strong demand for its Treo 600 smart-         ber input. The solution also recognizes
recorder, photo viewing and incom-        phone. The components in short sup-           commands including “contact” and
ing-call-log features. The F506i in-      ply include displays and associated           “redial” and offers trainable digit di-
cludes an autofocus CCD camera with       connections, though the firm is said          aling that can be adjusted to the
2-megapixel resolution, a 262,144-        to be confident of sourcing alternative       user’s accent. ART’s solution is fully
color QVGA TFT display and a sweep-       supplies to satisfy demand for the            speaker-independent and features
type fingerprint sensor for locking and   160,000 Treo units it expects to ship         voice-feedback capability to confirm
unlocking the keypad.                     by end-May.                                   spoken commands.

May 25, 2004                                                                                                                       5
data

Selected 1Q handset shipments by technology
           Vendor              Model             Radio frequency (MHz)                                 Display Battery type              Battery life


           Alcatel     One Touch 332a                         800/1900                             4,096-color    Lithium Ion 600 mAh       360 mins
    GSM




                        One Touch 156                                                              4,096-color
                        One Touch 155                                                              4,096-color                              270 mins
           Philips               355                                                               4,096-color                              240 mins


           Alcatel     One Touch 735i                         900/1800              128x128-pixel, 4,096-color    Lithium Ion 800 mAh       420 mins
                        One Touch 756                    900/1800/1900                       262,000-color TFT    Lithium Ion 950 mAh       480 mins
                        One Touch 835                         900/1800                           262,000-color    Lithium Ion 785 mAh       420 mins
                        One Touch 556                    900/1800/1900         128x160-pixel, 65,000-color STN    Lithium Ion 800 mAh       420 mins
                        One Touch 355                                                             65,000-color
           Motorola             V600                 850/900/1800/1900         176x220-pixel, 65,000-color TFT    Lithium Ion 750 mAh   210-450 mins
                                V220                           Tri-band                                   Color
                                 V80                     900/1800/1900         176x220-pixel, 65,000-color TFT                              210 mins
                               V400p                 850/900/1800/1900
                                 MPx                     900/1800/1900    320x240-pixel, 256,000-color TFTcolor                             180 mins
                              MPx100                     900/1800/1900                        65,000-color TFT                              450 mins
                               A840*          GSM 900/1800; 1x 800/1900        220x176-pixel, 65,000-color TFT
           NEC                  N900                          900/1800                  120x160-pixel color TFT
                                N910                          900/1800         128x160-pixel, 65,000-color TFT    Lithium Ion               180 mins
                                N820                          900/1800                320x240-pixel QVGA LCD
                               N331i                     900/1800/1900         128x160-pixel, 65,000-color TFT    Lithium Ion 700 mAh       200 mins
           Nokia                5140       900/1800/1900, 850/1800/1900                    128x128-pixel color                              300 mins
                                7610    900/1800/1900 and 850/1800/1900                           65,000-color    Lithium Ion 900 mAh       180 mins
    GPRS




           Panasonic            X700                     900/1800/1900                        65,536-color TFT
                                X300                                                              65,000-color
                               P341i                     900/1800/1900         132x176-pixel, 65,000-color TFT    Lithium Ion               300 mins
           Philips               535                          900/1800                        65,000-color TFT    Lithium Ion               360 mins
                                 855                                                    128x160-pixel color TFT                             240 mins
                                 639                          900/1800                65,000-color PolyLED TFT    Lithium Ion               240 mins
                                 759                     900/1800/1900         128x160-pixel, 65-000-color TFT    Lithium Ion 720 mAh       300 mins
                                 755                     900/1800/1900         128x160-pixel, 65,000-color TFT    Lithium Ion 720 mAh       300 mins
           Sagem               myX-7                                                              65,536-color
                              myC-3b                          900/1800                 128x160-pixel, color STN   Lithium Ion 750 mAh       240 mins
                              myX3-2                          900/1800                             4,096-color    Lithium Ion 890 mAh       300 mins
                              myX5-2                      850/900/1800                            65,536-color
           Samsung          SGH-e715                          900/1900                        65,000-color TFT    Lithium Ion 800 mAh       180 mins
                           SGH-D100                      900/1800/1900       160x128-pixel, 65,536-color OLED     Lithium Ion 800 mAH       180 mins
                           SGH-E710                           900/1800         128x160-pixel, 65,536-color TFT    Lithium Ion 900 mAH       330 mins
           Sendo                S600                                                              65,000-color                              420 mins
                                M570                                                              65,000-color                              300 mins
           Siemens              ST60                                                              65,000-color    Lithium Ion
                                CX65                     900/1800/1900                           65,536-color     Lithium Ion 750 mAh       300 mins
                                CF62                     900/1800/1900                      65,536-color CSTN                               300 mins


6                                                                                                                                       May 25, 2004
data

Selected 1Q handset shipments by technology (cont.)
 Vendor                     Model                Radio frequency (MHz)                                   Display    Battery type            Battery life


 Siemens (cont.)                 C65                     800/1800/1900               130x130-pixel, 65,536-color    Lithium Ion 600 mAh       300 mins
                                  S65                          Tri-band                         65,536-color TFT                              360 mins
                                 M65                           Tri-band                             65,000-color




                                                                                                                                                           GPRS (cont.)
                                 CX66                    850/1800/1900               132x176-pixel, 65,000-color    Lithium Ion 750 mAh       300 mins
                                 C66                     800/1800/1900               130x130-pixel, 65,536-color    Lithium Ion 600 mAH       270 mins
                                 CF63                    850/1800/1900           130x130-pixel, 65,000-color STN    Lithium Ion 600 mAh       300 mins
 Sony Ericsson                   T630                    900/1800/1900                          65,000-color TFT    Lithium Ion 750 mAh       840 mins
                                 S700                    900/1800/1900          240x320-pixel, 262,000-color TFT                              420 mins
                                 T237                         850/1900                               4,096-color    Lithium Ion               720 mins
                                 K700                    900/1800/1900           176x220-pixel, 65,000-color TFT                              420 mins
                                 T637                    850/1800/1900                          65,536-color TFT                              540 mins


 Audiovox                 PPC5050                                                         65,000-color TFT QVGA     Lithium Ion 1500mAH       300 mins
                         CDM-8425                             800/1900                           4,096-color STN
                         CDM-8475                             800/1900                           4,096-color STN
                          Vox 8610                                                              65,000-color TFT
 LGElectronics           VX-4400B                             800/1900           120x160-pixel, 65,000-color STN    Lithium Ion 950 mAh       205 mins
 Motorola                    T300p                                  800




                                                                                                                                                           1xRTT
                                 V65p                               800                                     color
                                 V710                               800                      168x120-pixel color                              100 mins
 Nokia                           6255                    800/1900/AMPS               128x160-pixel, 65,536-color    Lithium Ion 720 mAh       140 mins
                                 3205                         800/1900
                                 6012                         800/1900                                     Color
                             6015i                            800/1900                                     Color
 Sony Ericsson             A5404S                                   800                  240x320-pixel, color TFT                             170 mins


 Fujitsu                     F900i                                 2100                  262,144-color QVGA TFT                               160 mins
 LGElectronics              U8150                                                              260,000-color TFT
                            G7200                                                            External organic EL
 Motorola                   E1000                                                            256,000-color QVGA                               130 mins     WCDMA
                            A1000                               Tri band         208x320-pixel, 65,000-color TFT                              225 mins
                                 A845                                                                      Color
 NEC                         N900i                                 2100                   65,536-color QVGA TFT                               140 mins
                                 c313                                                220x176-pixel, 65,000-color    Lithium Ion 1100 mAH      130 mins
 Panasonic                   P900i                                 2100              240x320-pixel, 65,000-color                              150 mins
 Samsung                 SGH-Z105                                                              262,144-color TFT
 Sharp                      SH900i                                 2100    320x240-pixel, 262,144-color QVGA TFT                              140 mins


 Nokia                           6620                    850/1800/1900                          65,536-color TFT                              240 mins
                                                                                                                                                           EDGE




                                 9500   900/1800/1900 and 850/1800/1900                             65,000-color    Lithium Ion 1,300 mAh     360 mins
                                 6820                    850/1800/1900                128x128-pixel, 4,096-color    Lithium Ion 850 mAh       420 mins
 Sony Ericsson                   Z500                    850/1800/1900                              65,536-color                              600 mins
*GSM/GPRS/1xRTT device
Source: Mobile Handset Analyst


May 25, 2004                                                                                                                                                              7
business analysis
Mobile Handset analyst
                         Warren Saunders looks at conformance testing in 3G
                         How to ensure the next generation of devices deliver
                         Deciding whether a phone is function-                                 In GSM and its offshoots, the           ing a proliferation of multifeatured de-
                         ing correctly is no simple process. Be-                           process is completed, and while there       vices that take advantage of 3G’s data
                         fore you even start, everyone involved                            is some work to do in GPRS and              communications capabilities, further
                         needs to agree on what “correctly”                                EDGE (EGPRS), the strong founda-            complicating the testing challenges.
                         means. Standards definitions must be                              tion offered by vanilla 2G means it is      For example, advanced 3G handsets
                         flexible enough to allow innovation,                              mostly tweaks, rather than fundamen-        that bring together integrated PDAs,
                         while giving the guidance required to                             tals. In WCDMA, however, there is           digital cameras, color web browsing,
                         enable rapid service launch.                                      still plenty to do, including much that     etc., can entail very complex testing re-
                             Such necessary ambiguity leaves the                           relates to the crucial handover between     quirements because of the need to
                         rules open to a degree of interpretation                          2G and 3G, the cause of many of 3’s         check that the device functions prop-
                         that can cause serious problems, espe-                            problems at launch in early 2003. It is     erly across all possible permutations
                         cially if manufacturers are testing their                         the job of the standards bodies and fo-     and combinations.
                         new handsets against their own infra-                             rums to define both the test cases and           Despite the recent upswing in for-
                         structure. It is therefore critical that an                       their relative priority – i.e. which ones   tunes of the mobile industry, some
                         industrywide independent testing and                              get written first. It is then up to the     commentators are still unconvinced of
                         certification process be put in place, one                        test-equipment manufacturers to get         the future of 3G in the face of forth-
                         that can evolve with the standard and                             them approved for use as quickly as         coming PWLAN services, which are
                         offer a level of confidence for operators                         possible and deliver them to the hand-      likely to offer increased data rates. This
                         launching handsets around the world.                              set manufacturers and operators.            unpredictability has fed a general at-
                             To be effective, test strategies need                             In the WCDMA arena, this process        mosphere of postponement among
                         to thoroughly exercise device designs                             is still very much ongoing, and at          many industry players, in which “wait
                         and functionality across a range of nor-                          press time there was still no defined       and see” has erroneously appeared to be
                         mal and abnormal operating condi-                                 process for certification of 3G hand-       the safest choice.
                         tions. In complex communications                                  sets. The handset manufacturers and              Whichever way the industry swings,
                         structures, such as 3G systems, this re-                          the operators must therefore decide         it is a safe bet that from a testing perspec-
                         quires explicit testing of protocol                               how much of a risk they want to take.       tive, the loose ends will be largely dealt
                         stacks in hundreds of different specif-                           And with increasing pressure from           with this year, both for WCDMA and in-
                         ic and repeatable situations (see fig.).                          shareholders desperate for a return on      ter-RAT handover-related problems, but
                         This requirement is important across                              the enormous investments made so            it may take some time before it filters
                         the development, conformance and in-                              far, it is no surprise that services have   down into available handsets.
                         teroperability phases of the testing cy-                          been launched before all the relevant            3G is an evolution, not a revolu-
                         cle, though it is imperative that faults                          technical problems have been success-       tion, and it will take time before all of
                         be identified as early as possible, be-                           fully ironed out.                           the problems associated with the tech-
                         cause the later they’re spotted, the                                  The competition to differentiate        nology are successfully addressed. The
                         more expensive they are to correct.                               new 3G product offerings is also driv-      industry’s firm understanding of these
                                                                                                                                       issues, which were just as prevalent in
                          Growth in test-case numbers
                                                                                                                                       GSM, will help expedite the process,
                                                                                                                                       but it will probably be two years before
                                                 Number of test cases           Cumulative total                            1,400
                                                                                                                                       there is a base on which the industry
                                       1,200
                                                                                                                                       can confidently build the future. Once
                                                                                                                                       reached, there will be no time to rest,
                                        900                                                                                            as the continued evolution of the tech-
                          Test cases




                                                                                                               700    700              nology moves toward advances like
                                        600                                                                                            HSDPA/3.5G and beyond toward
                                                                                                   400                                 3G-to-Wi-Fi handover and myriad ap-
                                                                           300                           300
                                        300      200    200                                                                            plications and enhancements.
                                                                   100                   100
                                                                                                                                              Warren Saunders is head of market-
                                          0
                                                   GSM-1                GSM-2              GSM-2+          GPRS        WCDMA
                                                                                                                                              ing at Anite. For more information,
                                               Source: Anite
                                                                                                                                                 please call (44) 1252 775 200 or
                                                                                                                                              e-mail warren.saunders@anite.com

  8                                                                                                                                                                   May 25, 2004
news analysis




                                                                                                                                         Mobile Handset analyst
Chipsets
                                              part count and size. We note that            It offers only LGE’s LP3000 handset for
Vendors jockeying                             Freescale and EMP have had some suc-         MP3 file downloads. The MP3-enabled
                                              cess in the merchant market, Freescale       handsets of LGT or KTF cannot also
for position                                  with Siemens and EMP with LG and we          receive music-on-demand content.
Michael Thelander – Signals Research          believe a major Japanese handset manu-           SKT, meanwhile, has sold 250,000
“We envision some much needed com-            facturer. Over the long term, EMP could      IM7200 EV-DO terminals from SK
petition and some likely consolidation,       face some pushback from potential cus-       Teletech, which can receive and play both
while at the same time we believe that it     tomers unless it can convince them that      MP3 downloads and MoD download
will be difficult for any one vendor to       it will not give preferential treatment to   content, according to SKT representative
completely dominate the sector.               Sony Ericsson.                               Won Hong-Shik. But there are two ver-
    “Without exception, Qualcomm is               News out of Intel remains few and        sions of the IM7200. The first, which
the perennial favorite for capturing the      far between, although there is some          launched in early January, requires a soft-
most market share, as many consider it        good indication that some announce-          ware upgrade in order to receive MP3
to have the most advanced Release ’99         ments are forthcoming, likely involving      content, and Won says SKT has no idea
UMTS solution; its GSM/GPRS/                  Taiwanese ODMs and/or some Japan-            how many first-version IM7200 handset
EDGE solution is still playing catch up.      ese handset manufacturers.”                  owners have completed the upgrade.
    “Turning to NEC, all signs still indi-                                                     Won says SKT will take a wait-and-
cate that the company is struggling with      South Korea                                  see attitude toward the 72-hour-limit
its handsets on the UMTS standard (its                                                     debacle, probably because SKT could
FOMA handsets seem to be fine), al-           KTF likely to follow                         have the largest number of MP3 users in
though its 616 handset does offer a sig-      LGT’s free-MP3 crusade                       the South Korean market, thanks to its
nificantly lower bill of materials than its                                                MOD-MP3 handset interoperability.
313 handset. … NEC and Panasonic              KTF is considering following LG Tele-            “MP3 is ready to become standard
are currently working on their next           com by offering a service that allows        function of all of our models to be
chipset, which will be used in their          unlimited playback of music files over       launched for price tag of Won500,000 or
phones and the merchant market, while         MP3-enabled handsets after LGT re-           higher,” adds Won. KTF also plans to
NEC is supposedly moving away from            fused to sign up to an agreement limit-      add MP3 capability to 70-80% of its new
using the Agere fab.                          ing the free-play period to 72 hours.        models, earmarked to launch in 2H04.
    “Texas Instruments also continues to          KTF, SKT, LG Electronics, Samsung            From the vendor perspective, local
struggle with its UMTS development,           and the Korean Association of Phono-         first-tier handset manufacturers LGE,
although it seems to be doing much            gram Producers reached a tentative           Samsung, Curitel and SK Teletech are
better with its CDMA development ef-          agreement March 18 to restrict maxi-         planning to launch numerous high-end
fort. LG should have a handset using          mum sound quality to 64KB, com-              MP3-enabled handset models this year.
the TI 1x chipset in India later this year.   pared with 128KB for a paid MP3 file.            Samsung says that at least of 20 of its
In particular, one of its first UMTS cus-         “If LGT remains unbudged in its          50 new models to be launched this year
tomers – a major Asian handset manu-          stance [against imposing the maximum         will be MP3-enabled, while LGE rep-
facturer – has reportedly dropped plans       free playing time of 72 hours], we will      resentative Yoon Won-Il says LGT is
to use the TI chipset in an upcoming          probably also scrap the 72-hour time         ready to launch MP3-enabled handsets
phone. Over time, we believe that TI          limit from July this year,” said KTF rep-    for SKT and KTF in May and June, re-
will have a more dominant role in             resentative Kim In-Tae. “We may have         spectively. Third-ranked handset ven-
UMTS, primarily driven by its                 to follow the lead of LGT, because if we     dor Curitel also plans to launch six or
GSM/GPRS success and its strong re-           continue to deny the no-time-limit           seven MP3-enabled terminals in 2004.
lationships, but it isn’t there yet.          conveniences, we are worried that our            In May, LGT plans to launch the
    “From a compliance perspective,           subscribers might leave us [for LGT].”       Canyou HS6550 MP3-enabled phone,
Freescale and EMP seemingly have very             KTF claims to have distributed only      which offers a 256MB external memo-
strong solutions. Motorola PCS, we            20,000 MP3-enabled 1xEV-DO ter-              ry stick that can store up to 60 MP3
point out, has several handsets that are      minals in the two months to mid-May.         music files. The 1xRTT handset, which
commercially available using the              It offers Samsung’s SPH-V4200 for            will also feature a 1.34 million-pixel
Freescale solution, while a contact famil-    Won682,000 (US$581) and Samsung’s            CCD built-in camera and FM radio
iar with its performance in IOT notes         SPH-S1000 for Won594,000, with the           streaming, will cost Won600,000. In
that the performance of the A835 has          SPH-V4200 offering an external mem-          contrast, most current MP3-enabled
come a long way in the last few months.       ory stick.                                   handsets have a storage capacity of only
The challenge, especially for EMP and to          During the same period, LGT sold         32-128MB, compared with 512MB for
a lesser extent for Freescale, is reducing    130,000 MP3-enabled 1xRR handsets.           a typical MP3 player.

May 25, 2004                                                                                                                             9
sector profile
Mobile Handset analyst
                         JAVA
                         Fragmentation threatens to stall
                         growing Java-handset market
                         The media’s attention on the impending launch                       billion downloads, or 85% of the sector, in 2003. ARC ex-
                                                                                             pects that level to be maintained for the next five years, fore-
                         of 3G services worldwide and the relative dis-                      casting overall Java entertainment downloads to rise from 4.3
                         appointment of WAP have played substantial                          billion events in 2003 to just over 50 billion by 2008.
                                                                                                 In term of revenues, ARC Group estimates that Java mar-
                         roles in boosting Java, heralding it as the de
                                                                                             ket earned operators almost US$1.4 billion in 2003, a figure
                         facto enabling technology for wireless data                         it forecasts will jump dramatically to more than US$15.5 bil-
                         services, writes Malik Kamal-Saadi.                                 lion by 2008. The numbers equate to about 3% of all data
                                                                                             revenues in 2003, rising to 12.4% by 2008. Removing per-
                         Handsets equipped with Java tripled in number in 2003,              son-to-person messaging revenues as an application catego-
                         reaching sales of 95.5 million in 2003, up from 32 million in       ry from both the total and Java markets is estimated to leave
                         2002. Java is already well entrenched in the handset market         Java with a 10.7% share of total revenues in the remaining
                         worldwide, with key markets being South Korea and Japan.            categories in 2003, increasing to 27.4% by 2008 – a fair re-
                         Java-enabled CDMA phones dominate the South Korean                  turn for Java applications in the contents categories.
                         market, and in Japan more than half of handsets in circula-             Since 2000, many venture-capital companies have rushed
                         tion are already Java-enabled.                                      to market Java because they thought it would be lucrative and
                             Today, despite the proliferation of Java handsets worldwide     would induce a high return on investment. The wireless Java
                         and the increasing number of vendor models containing the           market has secured a level of financing of about US$15 bil-
                         platform, the number of actual Java users is significantly low-     lion, but total revenues from wireless Java services are not fore-
                         er. There are some very stark regional differences in this analy-   cast to reach US$15 billion before 2006 or 2007. Thus, the
                         sis, since in Japan and South Korea it is believed that about       global market for wireless Java will take another two to three
                         four-fifths of all Java handsets sold in 2003 led to active Java    years to achieve a certain level of profitability. ARC Group says
                         users. In Europe, the opposite is understood to be the case,        that if the wireless Java market starts to be largely overfunded,
                         with only about 10% of handsets sold leading to active users.       it might take even longer for investors to realize their ROI.
                             The promise of Java has been mainly to serve the mobile
                         entertainment market, with the sector forming 76% of total          Open or proprietary?
                         Java application volumes in 2003, according to research             One of the advantages of Java technology is its openness, which
                         house ARC Group. By 2008, however, the figure is expected           has helped convince more than 500 companies to contribute
                         to fall to about 40% because of increased use of Java-based         to different expert groups under the Java Community Process.
                         messaging platforms. As might be expected, games provided           But that advantage is being depleted. More than 260 Java spec-
                         the most use in the entertainment sector, with volumes of 3.6       ifications requests (JSRs) have been initiated by the leading play-
                                                                                             ers, which generally aim first and foremost to benefit their own
                          Fig. 1: Market opportunities for different Java profiles
                                                                                             technologies rather than help the Java industry improve as a
                                                                                             whole. The high number of JSRs has made Java one of the most
                                                                 VSCL
                                                                                             fragmented technologies in the history of the data industry. As
                                 2003
                                 2008                       DoJA
                                                                                             a result, tool vendors cannot easily take advantage of standard
                                                                                             APIs when building functionality into their tools and often cre-
                                                     MIDP                                    ate proprietary techniques to achieve the benefits the standards
                                                                                             were originally created to address.
                                                                            CDC
                                 CLDC                                                            In addition, the great number of companies – most often
                                                                                             rivals – involved in standardizing different JSRs has made the
                               Low-end               Mid-range           High-end   2008     standardization process relatively slow. For example, the spec-
                                                                                             ification for MIDP2.0 profile was released 20 months after
                                                                                             the initial proposal, and the first devices implementing the
                            Low-end      Mid-range           High-end   2003
                                                                                             profile were available four months later. The sluggishness of
                          Source: ARC Group                                                  the standardization process has pushed many players, includ-
                                                                                             ing NTT DoCoMo, KDDI and Vodafone, to initiate their

10                                                                                                                                                May 25, 2004
sector profile




                                                                                                                                                       Mobile Handset analyst
own implementations to speed up time to market – a trend
that has made Java even more fragmented, since several im-               Fig. 2: Evolution path of Java and WAP services
plementations exist concurrently. Implementations exist based
on JCP profiles such as CLDC1.0, CLDC1.1, MIDP1.0,                                                      Java     WAP

MIDP2.0 and CDC and proprietary implementations such
as NTT DoCoMo’s DoJa for i-mode services (see fig. 1),




                                                                        Service deployment
Vodafone’s VSCL and JSCL and KDDI’s ezplus in Japan.
    While JCP profiles are adhered to by almost all device
manufacturers worldwide, DoJa is only implemented by
Japanese manufacturers. These manufacturers have initially
designed their Java i-mode handsets to work over PDC net-
works in Japan. Consequently, Java i-mode handsets they of-
fer are not particularly well optimized for European services
that use GSM network. Vodafone, on the other hand, is ded-                                   2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

icating the JSCL profile to work on PDC networks in Japan                                    Source: ARC Group
and VSCL, a modified version of JSCL, to work in the GSM
environment.                                                          sumers a flawless mobile web-surfing experience and ad-
    On top of the diversity of Java profiles, there is also a grow-   vanced wireless data services, but it did not materialize, be-
ing concern about Java virtual machines (VM) fragmentation.           cause the content was not compelling enough to attract
As the number of commercially available optimized VMs has             users in sufficient volumes.
increased, so has it become apparent that applications will               The Java community has much to learn from the WAP
work slightly differently on different VMs. This is not to sug-       experience and should strive to ease the way for applications
gest that applications will not function at all on different VMs.     developers, a condition that is vital if the technology is to
Any certified VM will have undergone the Java compatibili-            succeed. Without such efforts, the fragmentation of the Java
ty test and is therefore guaranteed to function, though no such       market; the problems of applications portability, together
guarantees when it comes to clean-room implementations.               with the poor performance of Java applications compared
But compatibility is a problem for application performance            with native applications; and the lack of support for appli-
and could affect the user experience, which is a focus of Java        cations other than games could all limit the use of Java in
technology. Therefore, developers need to be careful that the         the future.
functionality central to an application is appropriate to the             In addition, the wireless Java industry is facing tough
VM on which it is being implemented. For example, a VM                competition from within, as well as from other technolo-
better at handling graphics than a competitor is will be better       gies, such as BREW and advanced OSes. In order to re-
for applications such as games. Similarly, a memory-intensive         main competitive and win market share, players
application will function better on a VM that emphasizes              throughout the supply chain will have to maintain attrac-
memory-management techniques.                                         tive price points while differentiating their products. They
    The fragmentation of Java technology makes it difficult           will thus need to reduce their margins if they want to re-
to build sustainable models for developing applications               main competitive. Leading device vendors and wireless net-
that can be ported through a variety of handset device                work suppliers are still using proprietary technologies and
models and operators services. Indeed, an application will            will not outsource alternatives unless they can save money
run only on devices featuring the same profile. For exam-             and reduce time to market. Such an approach has led to
ple, porting an application from a MIDP-based profile to              strong pressure on pricing, challenging competitors and
Java i-mode or other non-Java-based technology, such as               pushing them to either align themselves or lose share if
Microsoft or Symbian OSes or even CDC, has proved to                  they want to maintain margins.
be an extremely hard task. Java fragmentation makes it dif-               As has been the case for many hyped technologies before,
ficult for service providers because deploying a wireless data        the wireless Java industry must undergo rapid consolidation.
service based on different implementations is not easy to             It is a trend that is already happening in many segments of
manage and significantly increases both operational costs             the supply chain, and industry players will be forced to cre-
and customers’ management costs. In addition, the issue               ate partnerships and collaborate to cover overall wireless Java
of application portability is slowing down developers’ in-            service delivery in a more efficient and effective way in order
volvement. Therefore, until a clear standard is presented,            to survive.
there is a danger that wireless Java take-up will be slower              Malik Kamal-Saadi is co-author of Mobile Application
than in its early deployment.                                         Platforms and Operating Systems 2003-2008, published
    It seems that Java is undergoing the same experience              in March by ARC Group. For more information, please see
WAP did in its early years (see fig. 2). WAP promised con-            www.arcgroup.com/mapos

May 25, 2004                                                                                                                                          11
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Handset report

  • 1. Volume 1 Number 1 Mobile Handset analyst May 25, 2004 THE INTERNATIONAL BUSINESS NEWSLETTER OF DEVICES, COMPONENTS, SOFTWARE AND SMART CARDS Contents III Components NEWS Investment could open 2 Qualcomm looks to the future with doors for Intuwave NEWS 3 complete HDSPA solution Low-end vendors force Sewon to CDMA-chipset supplier Qualcomm might have gotten a megapixels for camera functions. close / IPWireless rolls jump on its rivals with the announcement last week of an The chipset forms part of an overall solution covering out UMTS/TDD HSDPA-enabled solution that is due to ship in sample transmit and receive hardware that includes the U.S.-based NEWS 4 quantities in 2H05. According to industry watchers, gain- firm’s RT6275 transceiver, RFR6275 diversity receiver and Foreign vendors held top slots in ing an early lead in the market will be critical in the long PM6650 powerOne power-management solution. China / Openwave details term, with analysts predicting that HSDPA will come of The RFR6275 receiver has been specially developed in Magic4 purchase age by 2006 or 2007. conjunction with the MSM6280 for HSDPA and builds Qualcomm says its MSM6280 solution will offer peak on the firm’s RTR6275 solution, which was announced at SHORTS 5 data rates of 7.2Mbps across GPRS, EDGE, WCDMA the same time. The RFR chip uses CMOS digital process HP offers wireless printing / and HSDPA networks. The chipset is pin-compatible with technology that is common in the components industry. Symbian offers apps signing / Qualcomm’s MSM6275 product, which means that hard- The chip includes a second antenna for HSDPA that Parts shortage afflicts Treo / ware and software platforms can be shared in order to cut Qualcomm says provides improved signal reception to en- Upgraded UI solution ships / LG certification and development times. able higher data throughput, which it claims gives the picks ART voice solution With high data rates perceived to be the savior of the product the ability to enable up to 5dB receive diversity mobile industry because they offer the ability to deploy gain. In addition, the 6x6mm, 40-pin Quad Flat No-Lead DATA 6 multimedia services, Qualcomm has geared the RFR chip integrates a GPS receiver, making it suitable for Selected 1Q04 handset shipments by technology MSM6280 to work with QVGA and CIF resolution video devices shipping in the U.S. and other markets where decode and encode. Other multimedia capabilities include emergency location services are mandatory. BUSINESS ANALYSIS 8 MPEG-4 decode and encode, 2D/3D graphics support “When it comes to handset interoperability, the lead play- for gaming, and support for imaging sensors up to 4 M Warren Saunders looks at continued on page 2 conformance testing in 3G III WCDMA 9 NEWS ANALYSIS Vendors jockeying Motorola aims to ‘own’ UMTS-handset market for position / KTF likely to follow U.S. vendor Motorola wants to become the dominant Evolution of Motorola’s UMTS devices LGT’s free-MP3 crusade player in the dual-band UMTS handset market by next year as it uses next-generation platforms to gain 20-30% Handset A830 A835 E1000 SECTOR PROFILE 10 market share. “In 2005, we want to own the market,” said Introduced 2002 2003 2004 Java: Fragmentation threatens to Ward Vermoere, senior manager of 3G product operations Size 173cc 139cc 105cc stall growing handset market at Motorola’s Personal Communications Sector. “We are Weight 210g* 155g 140g working with a lot of network partners, and they are work- Display 176x220 176x220 240x320 SUBSCRIBER SERVICE 12 ing with three to four strategy partners each.” Colors 4,000 65,000 262,000 Motorola started shipping UMTS handsets in late Camera VGA VGA 1.2 megapixel 2002 and, according to Vermoere, had shipped more P2P video No Yes Yes than 750,000 by end-March. In fact, the vendor shipped PDA A920 A925 A1000 a total of 450,000 units in 1Q04 alone – mainly to Introduced 2003 2003 2004 From the publishers of Hutchison 3G. Size 173cc 173cc 114cc This year, Vermoere says Motorola will use current 3G Weight 212g 212g 160g software platforms and drive down the size, weight and Display 208x320 208x320 208x320 battery-drain reductions of terminals (see fig.). “We’re get- Colors 65,000 65,000 262,000 and ting there,” he said. In 2002, UMTS handsets were 160% Camera VGA VGA 1.2 megapixel the size of a GSM unit. That figure had fallen to 140% in P2P video Yes Yes Yes 2003 and 110% this year, and parity is expected to be *Including camera Source: Motorola reached next year.
  • 2. news Editor M continued from page 1 Michael Carroll michael.carroll@informa.com er has a significant edge because all new- sson. While Sony Ericsson has been er,” by enabling them to close the gap on Editorial Director comers to an operator’s handset stable making a good comeback in handsets, rivals KDDI, Verizon, Sprint PCS and Gavin Patterson gavin.patterson@informa.com will have to keep pace with the leader,” which will help drive some degree of China Unicom, which have deployed Correspondents says Joe Nordgaard, managing director of consumption for the Ericsson chipset, 1xRTT and EV-DO technologies. Peggy Albright (U.S.) U.S. consulting firm Spectral Advantage. the Ericsson solution has the ‘competi- But investment bank CSFB points Ahn Mi-Young (South Korea) Nordgaard admits that the new tors stigma’ printed right on it.” out that any weakness in existing Chief Subeditor Qualcomm solutions have caused him The spinout of Motorola’s semicon- CDMA markets could affect Qual- Charles Gordon to rethink the future of WCDMA tech- ductor division last year certainly lends comm’s results in the near term. The lat- Production Manager Felicity Agyemang nology as a whole. “For some years, I credence to Nordgaard’s view. But est figures from the bank show Marketing have maintained that WCDMA will Qualcomm is still in a strong position India-based CDMA carrier Reliance Paul Waite become irrelevant around 2007,” he with regard to WCDMA chipsets and with 236,000 net subscriber additions T: (44) 20 7017 5614 says. “These two announcements from last week announced that its list of ven- for April, down 36% month on month paul.waite@informa.com Qualcomm now have me seriously re- dor customers has grown to 21 with the and 27% on the 359,000 adds in April Publisher Mark Newman considering that assessment. Indeed, addition of BenQ, Mitsubishi Electric, 2003. “Given that Reliance has added Main Office 2007 may be the date that WCDMA Pantech & Curitel and Vitelcom Mo- only 1.2 million subscribers through Mortimer House does become seriously relevant.” bile Technology. Qualcomm’s customer April, we continue to believe our full- 37-41 Mortimer Street Although the technology problems list already included Hisense Group, year estimate of 10 million units in In- London W1T 3JH T: (44) 20 7017 5000 might be solved by then, Nordgaard Huawei Technologies, LG Electronics, dia is the largest risk to our Qualcomm F: (44) 20 7017 4288 points out that the established dichoto- Novatel Wireless, Option NV, Sam- forecasts,” the bank says. Web Site my of independent chipset firms vs. sung, Sanyo Electric, Sierra Wireless, Handset sales in South Korea, by www.baskerville.telecoms.com vendor’s own components arms will re- Toshiba and ZTE. “I doubt Ericsson contrast, remain on track to meet Subscriber Service main. “An important issue in this will amass such a following, no matter CSFB’s 2004 forecast of 18 million Kate Halls and Rob Turner chipset footrace is having a chipset of- how well their chipsets may work,” units, despite an 18% month-on-month Baskerville Sheepen Place fering divorced from other competitive Nordgaard says. decline to 1.56 million in April. “We at- Colchester interests,” he says. “Why would I buy a Nordgaard says the RFR6275’s com- tribute the sequential decline to a slow- Essex C03 3LP chipset from a handset vendor who is patibility with quad-band GSM850/ down in demand from mobile number T: (44) 20 7017 5533 my competitor? 900/1800/1900 could prove a bonus for portability, along with a reduction in F: (44) 20 7017 4783 “The next-closest competitor in the Qualcomm because it might “draw channel inventories that we believe were telecoms.enquiries@ informa.com WCDMA chipset race – by all inde- NTT DoCoMo, Cingular, Vodafone built in 1Q04,” the bank says. pendent accounts – appears to be Eric- and eventually China Mobile much clos- michael.carroll@informa.com Americas T: (1) 978 258 2500 F: (1) 978 258 2500 III Software colleen.barron@informa.com Printed in the UK 23 times a US$3.6 mil. investment could open doors for Intuwave yearand distributed by air mail. Sales of a smartphone-software-testing to bring a level of automation to smart- Intuwave’s m-Test solution offers (Print) ISSN 1744-1250 solution from UK-based Intuwave phone software testing. “Vendors are what Fox describes as “a window into (Online) ISSN 1744-1269 could be aided by a recent investment our first port of call for m-Test, but the device to speed up vendor’s own No part of this publication may be copied, photocopied or from GemVentures, the venture-capi- we’d like to know more about opera- software script testing.” Thus, the duplicated without prior written tal fund of French smart-card provider tors and their requirements in handset product covers testing of applications, permission from the publishers. Gemplus, by granting Intuwave access and network testing,” says Intuwave regression and interoperability, local- © 2004 Baskerville to Gemplus’ handset-vendor cus- product manager Angus Fox. “Ven- ization and basic acceptance, such as tomers. dors have a multitude of test solutions phone boot and UI response. The deal – announced last week – and requirements … and have tried to The solution is initially available will see GemVentures invest US$3.6 shape them to their own require- only for Symbian-based terminals us- million in cash in Intuwave and gives ments.” ing the Series 60 platform and UIQ Gemplus a seat on Intuwave’s board. Fox says the variety of test solutions user interface, though Fox says it will Terms of the investment will also re- has led to a lot of manual testing. be compatible with Series 80 devices quire Intuwave to merge with smart- “None of [the systems] work very well,” when the platform is ready. “We’re ef- card-security firm Apeera, in which he says. “They do test the devices, but fectively offering a pushbike to a GemVentures holds a minority stake. don’t offer advanced automation solu- group of people who are walking,” he Crucially, though, the investment tions. Phone development involves a says. “We think we know how to build will open up new avenues for In- lot of testing, but it’s still very expen- a car, but need to see some ROI on the tuwave’s m-Test solution, which aims sive.” first release before doing so.” 2 May 25, 2004
  • 3. news Mobile Handset analyst III South Korea III Data cards Low-end vendors force Sewon to close IPWireless rolls Growing competition from Chinese the pair started feeling the pinch of out UMTS/TDD vendors at the low end of the market greater local competition. Telson Elec- forced South Korean vendor Sewon tronics is struggling not to go the same U.S.-based broadband wireless tech- Telecom into receivership May 3, and way as Sewon and has reduced its de- nology provider IPWireless last week the company will be delisted from the pendence on China by diversifying sales announced that it has begun shipping KOSDAQ secondary bourse June 1. outlets to the Americas while also try- dual-band UMTS/TDD laptop PC Analysts say the firm’s plight should ing to increase GSM phone shipments. cards to carriers in Europe, Australia serve as a sobering reminder that South Telson said it is filling its pipeline and Japan. It also said it is developing a Korea can no longer rely on China as its with new deals in Mexico and Brazil af- tri-mode variant. major sales-revenue generator. ter signing carrier agreements in those The current UMTS/TDD PC card “In China, Sewon Telecom could markets in 2H03. The vendor promis- operates in the 1900MHz and not survive the price competition in the es it is near its targeted sales-generation 2010MHz frequencies, which the firm low-end segment, where price pressure breakdown of 40% for the Americas, estimates gives it a potential market of from local rivals like TCL is the most 30% for China and 30% from the rest some 120 carriers in Europe and Asia. intense, while its attempt towards the of the world. One of the key features claimed by midrange segment was blocked by Mo- The setback for Sewon comes at a IPWireless is that the frequencies used torola or Nokia,” says Steven Oh Se- time when Samsung and LGE are gain- should facilitate global roaming, since Wook, an analyst at Samsung ing ground globally. South Korean an- the bulk of 3G licenses are for the Securities. alysts indicate that Samsung and LGE’s 1900MHz and 2010MHz spectrum. Sewon generated about 90% of its combined world market share increased The first devices featuring the PC sales in China, with its portfolio com- from 10% in 2002 to 18.3% in 2003 card were shipped to Portuguese carri- prising mainly low-end units in the and project that the combined world er SonaeCom in April, and IPWireless US$50-60 range. By contrast, Samsung market share of Samsung, LG and Cu- says other vendor licensees are in the and LGE were switching to middle- to ritel will reach 25% by the end of 2004. process of developing new devices high-priced handsets in the range of From a global perspective, Samsung based on its technology. US$150-200. is now closer to Nokia than to its local The company counts Alcatel, Solec- The emergence of strong Chinese counterparts, with 1Q04 shipments up tron, Nortel, Flextronics, Axcera, Pos- brands has polarized South Korean ven- 30% compared to 1Q03. “If Nokia sio and UP Tech among its partners dors into a prosperous first-tier group uses an economy of scale as its weapon and licensees. comprising Samsung, LG Electronics to gain profit, Samsung uses a high In addition, IPWireless is working and Curitel, and a second tier of un- price as its margin-fattening weapon,” on a tri-band 1900/2010/2500MHz derperforming vendors, led by Sewon. Oh told MHA. variant, which it says will help open up Sewon and Telson Electronics were In 2003, the average sale price for a the U.S. market because it will cover the main South Korea vendors to have Samsung handset was US$194, com- MMDS spectrum, while also sitting cashed in on the fledgling Chinese pared with Nokia’s US$149 and well with any European expansion into CDMA phone market. But in 2003, US$143 for Motorola. the 2500MHz band. May 25, 2004 3
  • 4. news Mobile Handset analyst III China III Software Foreign vendors held top slots in March Openwave details Sales of data-enabled handsets in Chi- devices before the fourth quarter. Magic4 purchase na contributed to a 19% year-on-year Nevertheless, non-Chinese vendors rise in sell-through numbers to 4.83 achieved a 55.4% share of the market U.S. software-solutions provider Open- million units in March, with nondo- in March and dominate the top 10 wave Systems has rounded out an- mestic vendors shipping more devices slots in MMS handset shipments (see nouncements of deals with IBM and than local rivals. fig.). U.S. vendor Motorola shored up Siemens covering its mobile browser by Credit Suisse First Boston says that its second-place standing, achieving a revealing that it has signed a definitive overall March shipments were down 15.4% market share – though CSFB agreement to buy UK-based messag- 5% compared with February’s figure notes that Motorola remains top dog ing-software firm Magic4. and that sales of CDMA units in par- when it comes to ASP value – while Under terms of the deal, Open- ticular declined 7% to 530,000 – Samsung echoed its global 1Q04 per- wave will purchase all outstanding roughly 11% of the total market. formance with a market share of 9.8% shares of Magic4 for US$82.6 million GSM-based units accounted for in March. in cash and stock. The final split has 89% of the market in March, though Meanwhile, Siemens has continued not been decided, but the pair have CSFB states that both technologies en- to lose market share and was ranked agreed on a minimum cash payment joyed stronger ASPs because of growing just 15th in March. CSFB said the ven- of 40% of the price. sales of midtier data-enabled products. dor had a 2% share of the overall mar- The acquisition is due to close in “The proportion of CDMA 1x ket in March. The German vendor’s July, and Magic4 should contribute handsets in the overall sales mix has partnership with domestic player Ning- US$9-11 million in revenue by year- risen from 48% a year ago to 85% in bo Bird is viewed as a positive, because end, according to Openwave’s figures. March 2004,” CSFB said. “For GSM, of the 30,000 additional retail outlets That figure is expected to grow to the proportion of handsets sold with a Siemens will gain access to. Bird ended US$35 million by end-2005. camera increased from 2.3% to 16.4% March with a 7% share of the market, Scott Ellison, director of wireless during the same period, and the pro- though the bank cautions that the firm and mobile communications at re- portion of MMS-capable phones in- – like Nokia – is too focused on low- search group IDC, says the move is creased from 6% in April 2003 to 35% end products. timely. “Tighter integration between in March 2004.” TCL, a joint-venture partner of the primary data applications on the The bank say the trend toward mid- French vendor Alcatel, ended March phone – messaging and browsing – is or high-end devices is not good news with a 6.5% market share. “Similar to essential to improving service usabili- for Finnish vendor Nokia, because of Ningbo Bird, TCL’s focus is more on ty and driving adoption,” he says. the firm’s focus on low-end devices in the low-end segment, and it had a 15% Openwave perhaps demonstrated China. While Nokia maintained its share in the RMB1,000-1,500 its understanding of Ellison’s view leading position in March with a share (US$121-181) segment in March,” when it teamed up with IBM to inte- of 15.6%, CSFB expresses little confi- CSFB says. “TCL’s local distribution grate WebSphere Everyplace Mi- dence that the vendor will be able to re- network does not seem to help it gain croenvironment with its Openwave act to the upward shift with higher-end market share any longer.” Phone Suite v.7. IBM’s product fea- tures certified implementations of Top 10 MMS models, Mar-04 J2ME technology, including CLDC Rank Vendor Model Retail price (US$) Market share (%) and MIDP, while Openwave’s mobile 1 Nokia 3100 185 2.9 software offers a raft of multimedia 2 Nokia 6108 271 1.7 solutions, including browsing, client 3 Nokia 3108 214 1.5 provisioning, download, DRM, 4 Nokia 6100 250 1.1 MMS and e-mail. 5 Motorola C550 200 1.1 The pair expects the first devices 6 Samsung SGH-S508 302 1.0 based on the combined software to ship 7 Nokia 6610 230 1.0 in early 2005. 8 Motorola E365 283 0.9 Before then, the first Siemens de- vices based on v.7 – the 65 series – are 9 Motorola E380 204 0.9 expected to ship in mid-2004, follow- 10 Sony Ericsson T618 322 0.9 ing Openwave’s announcement of a Source: CSFB deal with the German vendor last week. 4 May 25, 2004
  • 5. shorts Mobile Handset analyst BLUETOOTH PLATFORMS PDAs HP offers wireless printing RIM builds application list Laplink updates sync solution Sony Ericsson and Hewlett-Packard Wireless e-mail solutions provider Re- U.S.-based synchronization technolo- have agreed on a deal to offer mobile search In Motion has reached an gy provider Laplink has announced printing facilities on Sony Ericsson’s agreement with SAP – a provider of details of its latest PDA-synchroniza- P800 and P900 smartphones using business software – to integrate the tion application, which the firm HP’s Wireless printing for Mobile mySAP CRM and SAP(r) solutions with claims offers more functionality and Phones software application. The solu- its BlackBerry handheld platform to of- compatibility than stand-alone Palm tion uses Bluetooth to connect the fer an integrated mobile sales solution. Hotsync or MS ActiveSync solutions. handset to compliant HP printers and The combined product is aimed at mo- PDAsync 3.0 synchronizes contacts, can handle JPEG images, e-mail, SMS, bile sales staff and will offer the abil- calendar, tasks, e-mail and notes be- contacts and calendar items. The soft- ity to view sales orders and CRM tween mobile devices and desktop or ware is being made available for down- analytics. Both firms will contribute laptop PCs. The solution also adds load from Sony Ericsson’s web site. engineering, technical, marketing and compatibility with Pocket PC 2003, sales resources to the solution, which Microsoft Outlook 2003, Lotus notes OSes SAP plans to make available later this 6.5 and selected Sony Ericsson ter- Symbian offers apps signing year. In a separate announcement, minals. Laplink is offering PDAsync UK-based operating-system provider RIM has announced networking and 3.0 as a download for US$60. Symbian has launched an application systems-integration firm LAN 2 LAN USER INTERFACE signing program to standardize content as its first officially accredited provider for the platform in order to drive ap- of an integrated wireless enterprise ap- Upgraded UI solution ships plication development. The Symbian plication service for BlackBerry de- UK-based mobile interface firm Tri- Signed program tests applications vices in the UK. LAN 2 LAN supports genix has begun shipping the latest against industry standards for carriers access to back-end databases, includ- version of its UI solution, which it and vendors as well as providing de- ing IBM Lotus Domino and Microsoft claims provides the first practical for- veloper authentication and anti-tamp- SQL server, in addition to word-pro- mat for defining handset UIs and serv- er security. The program will also cessing tools, spreadsheets and pres- ice stores. Trigenix T4 builds on the provide a distribution channel for Sym- entation applications. firm’s previous solutions by adding bian-based applications, and develop- compatibility with Windows Mobile, ers whose applications are approved Symbian adds Philips to list Java MIDP 1.0 and 2.0 and Symbian will be permitted to employ a logo sig- Royal Philips Electronics last week an- OS-based devices, which Trigenix es- nifying compliance with the tests. nounced that it has joined Symbian’s timates will account for roughly half of Platinum Partner program in order to all handset shipments by end-2004. I-MODE grow the customer base for its Nexperia NTT DoCoMo grows portfolio products. The Nexperia range consists LG picks ART voice solution Japanese operator NTT DoCoMo con- of reprogrammable and ready-to-inte- South Korean vendor LG Electronics tinues to expand its range of i-mode grate system and IC solutions for mobile will deploy voice-control solutions handsets with the launch this week of multimedia applications, with features from ART in its latest range of CDMA the D506i and F506i models from including software IP libraries. terminals for the U.S. market, follow- domestic vendors Mitsubishi and Fu- ing the announcement of a deal be- COMPONENTS jitsu, respectively. The D506i fea- tween the two firms last week. ART’s tures a voice-activated camera Parts shortage afflicts Treo smARTspeak XGT embedded speech shutter that takes pictures in re- U.S.-based vendor PalmOne – the interface will feature in LG’s 4500 se- sponse to a prerecorded word and a hardware arm of Palm – is reportedly ries devices to enable voice dialing multifunction button on the side of facing a shortage of parts because of from contacts or spoken-phone-num- the device to control camera, voice strong demand for its Treo 600 smart- ber input. The solution also recognizes recorder, photo viewing and incom- phone. The components in short sup- commands including “contact” and ing-call-log features. The F506i in- ply include displays and associated “redial” and offers trainable digit di- cludes an autofocus CCD camera with connections, though the firm is said aling that can be adjusted to the 2-megapixel resolution, a 262,144- to be confident of sourcing alternative user’s accent. ART’s solution is fully color QVGA TFT display and a sweep- supplies to satisfy demand for the speaker-independent and features type fingerprint sensor for locking and 160,000 Treo units it expects to ship voice-feedback capability to confirm unlocking the keypad. by end-May. spoken commands. May 25, 2004 5
  • 6. data Selected 1Q handset shipments by technology Vendor Model Radio frequency (MHz) Display Battery type Battery life Alcatel One Touch 332a 800/1900 4,096-color Lithium Ion 600 mAh 360 mins GSM One Touch 156 4,096-color One Touch 155 4,096-color 270 mins Philips 355 4,096-color 240 mins Alcatel One Touch 735i 900/1800 128x128-pixel, 4,096-color Lithium Ion 800 mAh 420 mins One Touch 756 900/1800/1900 262,000-color TFT Lithium Ion 950 mAh 480 mins One Touch 835 900/1800 262,000-color Lithium Ion 785 mAh 420 mins One Touch 556 900/1800/1900 128x160-pixel, 65,000-color STN Lithium Ion 800 mAh 420 mins One Touch 355 65,000-color Motorola V600 850/900/1800/1900 176x220-pixel, 65,000-color TFT Lithium Ion 750 mAh 210-450 mins V220 Tri-band Color V80 900/1800/1900 176x220-pixel, 65,000-color TFT 210 mins V400p 850/900/1800/1900 MPx 900/1800/1900 320x240-pixel, 256,000-color TFTcolor 180 mins MPx100 900/1800/1900 65,000-color TFT 450 mins A840* GSM 900/1800; 1x 800/1900 220x176-pixel, 65,000-color TFT NEC N900 900/1800 120x160-pixel color TFT N910 900/1800 128x160-pixel, 65,000-color TFT Lithium Ion 180 mins N820 900/1800 320x240-pixel QVGA LCD N331i 900/1800/1900 128x160-pixel, 65,000-color TFT Lithium Ion 700 mAh 200 mins Nokia 5140 900/1800/1900, 850/1800/1900 128x128-pixel color 300 mins 7610 900/1800/1900 and 850/1800/1900 65,000-color Lithium Ion 900 mAh 180 mins GPRS Panasonic X700 900/1800/1900 65,536-color TFT X300 65,000-color P341i 900/1800/1900 132x176-pixel, 65,000-color TFT Lithium Ion 300 mins Philips 535 900/1800 65,000-color TFT Lithium Ion 360 mins 855 128x160-pixel color TFT 240 mins 639 900/1800 65,000-color PolyLED TFT Lithium Ion 240 mins 759 900/1800/1900 128x160-pixel, 65-000-color TFT Lithium Ion 720 mAh 300 mins 755 900/1800/1900 128x160-pixel, 65,000-color TFT Lithium Ion 720 mAh 300 mins Sagem myX-7 65,536-color myC-3b 900/1800 128x160-pixel, color STN Lithium Ion 750 mAh 240 mins myX3-2 900/1800 4,096-color Lithium Ion 890 mAh 300 mins myX5-2 850/900/1800 65,536-color Samsung SGH-e715 900/1900 65,000-color TFT Lithium Ion 800 mAh 180 mins SGH-D100 900/1800/1900 160x128-pixel, 65,536-color OLED Lithium Ion 800 mAH 180 mins SGH-E710 900/1800 128x160-pixel, 65,536-color TFT Lithium Ion 900 mAH 330 mins Sendo S600 65,000-color 420 mins M570 65,000-color 300 mins Siemens ST60 65,000-color Lithium Ion CX65 900/1800/1900 65,536-color Lithium Ion 750 mAh 300 mins CF62 900/1800/1900 65,536-color CSTN 300 mins 6 May 25, 2004
  • 7. data Selected 1Q handset shipments by technology (cont.) Vendor Model Radio frequency (MHz) Display Battery type Battery life Siemens (cont.) C65 800/1800/1900 130x130-pixel, 65,536-color Lithium Ion 600 mAh 300 mins S65 Tri-band 65,536-color TFT 360 mins M65 Tri-band 65,000-color GPRS (cont.) CX66 850/1800/1900 132x176-pixel, 65,000-color Lithium Ion 750 mAh 300 mins C66 800/1800/1900 130x130-pixel, 65,536-color Lithium Ion 600 mAH 270 mins CF63 850/1800/1900 130x130-pixel, 65,000-color STN Lithium Ion 600 mAh 300 mins Sony Ericsson T630 900/1800/1900 65,000-color TFT Lithium Ion 750 mAh 840 mins S700 900/1800/1900 240x320-pixel, 262,000-color TFT 420 mins T237 850/1900 4,096-color Lithium Ion 720 mins K700 900/1800/1900 176x220-pixel, 65,000-color TFT 420 mins T637 850/1800/1900 65,536-color TFT 540 mins Audiovox PPC5050 65,000-color TFT QVGA Lithium Ion 1500mAH 300 mins CDM-8425 800/1900 4,096-color STN CDM-8475 800/1900 4,096-color STN Vox 8610 65,000-color TFT LGElectronics VX-4400B 800/1900 120x160-pixel, 65,000-color STN Lithium Ion 950 mAh 205 mins Motorola T300p 800 1xRTT V65p 800 color V710 800 168x120-pixel color 100 mins Nokia 6255 800/1900/AMPS 128x160-pixel, 65,536-color Lithium Ion 720 mAh 140 mins 3205 800/1900 6012 800/1900 Color 6015i 800/1900 Color Sony Ericsson A5404S 800 240x320-pixel, color TFT 170 mins Fujitsu F900i 2100 262,144-color QVGA TFT 160 mins LGElectronics U8150 260,000-color TFT G7200 External organic EL Motorola E1000 256,000-color QVGA 130 mins WCDMA A1000 Tri band 208x320-pixel, 65,000-color TFT 225 mins A845 Color NEC N900i 2100 65,536-color QVGA TFT 140 mins c313 220x176-pixel, 65,000-color Lithium Ion 1100 mAH 130 mins Panasonic P900i 2100 240x320-pixel, 65,000-color 150 mins Samsung SGH-Z105 262,144-color TFT Sharp SH900i 2100 320x240-pixel, 262,144-color QVGA TFT 140 mins Nokia 6620 850/1800/1900 65,536-color TFT 240 mins EDGE 9500 900/1800/1900 and 850/1800/1900 65,000-color Lithium Ion 1,300 mAh 360 mins 6820 850/1800/1900 128x128-pixel, 4,096-color Lithium Ion 850 mAh 420 mins Sony Ericsson Z500 850/1800/1900 65,536-color 600 mins *GSM/GPRS/1xRTT device Source: Mobile Handset Analyst May 25, 2004 7
  • 8. business analysis Mobile Handset analyst Warren Saunders looks at conformance testing in 3G How to ensure the next generation of devices deliver Deciding whether a phone is function- In GSM and its offshoots, the ing a proliferation of multifeatured de- ing correctly is no simple process. Be- process is completed, and while there vices that take advantage of 3G’s data fore you even start, everyone involved is some work to do in GPRS and communications capabilities, further needs to agree on what “correctly” EDGE (EGPRS), the strong founda- complicating the testing challenges. means. Standards definitions must be tion offered by vanilla 2G means it is For example, advanced 3G handsets flexible enough to allow innovation, mostly tweaks, rather than fundamen- that bring together integrated PDAs, while giving the guidance required to tals. In WCDMA, however, there is digital cameras, color web browsing, enable rapid service launch. still plenty to do, including much that etc., can entail very complex testing re- Such necessary ambiguity leaves the relates to the crucial handover between quirements because of the need to rules open to a degree of interpretation 2G and 3G, the cause of many of 3’s check that the device functions prop- that can cause serious problems, espe- problems at launch in early 2003. It is erly across all possible permutations cially if manufacturers are testing their the job of the standards bodies and fo- and combinations. new handsets against their own infra- rums to define both the test cases and Despite the recent upswing in for- structure. It is therefore critical that an their relative priority – i.e. which ones tunes of the mobile industry, some industrywide independent testing and get written first. It is then up to the commentators are still unconvinced of certification process be put in place, one test-equipment manufacturers to get the future of 3G in the face of forth- that can evolve with the standard and them approved for use as quickly as coming PWLAN services, which are offer a level of confidence for operators possible and deliver them to the hand- likely to offer increased data rates. This launching handsets around the world. set manufacturers and operators. unpredictability has fed a general at- To be effective, test strategies need In the WCDMA arena, this process mosphere of postponement among to thoroughly exercise device designs is still very much ongoing, and at many industry players, in which “wait and functionality across a range of nor- press time there was still no defined and see” has erroneously appeared to be mal and abnormal operating condi- process for certification of 3G hand- the safest choice. tions. In complex communications sets. The handset manufacturers and Whichever way the industry swings, structures, such as 3G systems, this re- the operators must therefore decide it is a safe bet that from a testing perspec- quires explicit testing of protocol how much of a risk they want to take. tive, the loose ends will be largely dealt stacks in hundreds of different specif- And with increasing pressure from with this year, both for WCDMA and in- ic and repeatable situations (see fig.). shareholders desperate for a return on ter-RAT handover-related problems, but This requirement is important across the enormous investments made so it may take some time before it filters the development, conformance and in- far, it is no surprise that services have down into available handsets. teroperability phases of the testing cy- been launched before all the relevant 3G is an evolution, not a revolu- cle, though it is imperative that faults technical problems have been success- tion, and it will take time before all of be identified as early as possible, be- fully ironed out. the problems associated with the tech- cause the later they’re spotted, the The competition to differentiate nology are successfully addressed. The more expensive they are to correct. new 3G product offerings is also driv- industry’s firm understanding of these issues, which were just as prevalent in Growth in test-case numbers GSM, will help expedite the process, but it will probably be two years before Number of test cases Cumulative total 1,400 there is a base on which the industry 1,200 can confidently build the future. Once reached, there will be no time to rest, 900 as the continued evolution of the tech- Test cases 700 700 nology moves toward advances like 600 HSDPA/3.5G and beyond toward 400 3G-to-Wi-Fi handover and myriad ap- 300 300 300 200 200 plications and enhancements. 100 100 Warren Saunders is head of market- 0 GSM-1 GSM-2 GSM-2+ GPRS WCDMA ing at Anite. For more information, Source: Anite please call (44) 1252 775 200 or e-mail warren.saunders@anite.com 8 May 25, 2004
  • 9. news analysis Mobile Handset analyst Chipsets part count and size. We note that It offers only LGE’s LP3000 handset for Vendors jockeying Freescale and EMP have had some suc- MP3 file downloads. The MP3-enabled cess in the merchant market, Freescale handsets of LGT or KTF cannot also for position with Siemens and EMP with LG and we receive music-on-demand content. Michael Thelander – Signals Research believe a major Japanese handset manu- SKT, meanwhile, has sold 250,000 “We envision some much needed com- facturer. Over the long term, EMP could IM7200 EV-DO terminals from SK petition and some likely consolidation, face some pushback from potential cus- Teletech, which can receive and play both while at the same time we believe that it tomers unless it can convince them that MP3 downloads and MoD download will be difficult for any one vendor to it will not give preferential treatment to content, according to SKT representative completely dominate the sector. Sony Ericsson. Won Hong-Shik. But there are two ver- “Without exception, Qualcomm is News out of Intel remains few and sions of the IM7200. The first, which the perennial favorite for capturing the far between, although there is some launched in early January, requires a soft- most market share, as many consider it good indication that some announce- ware upgrade in order to receive MP3 to have the most advanced Release ’99 ments are forthcoming, likely involving content, and Won says SKT has no idea UMTS solution; its GSM/GPRS/ Taiwanese ODMs and/or some Japan- how many first-version IM7200 handset EDGE solution is still playing catch up. ese handset manufacturers.” owners have completed the upgrade. “Turning to NEC, all signs still indi- Won says SKT will take a wait-and- cate that the company is struggling with South Korea see attitude toward the 72-hour-limit its handsets on the UMTS standard (its debacle, probably because SKT could FOMA handsets seem to be fine), al- KTF likely to follow have the largest number of MP3 users in though its 616 handset does offer a sig- LGT’s free-MP3 crusade the South Korean market, thanks to its nificantly lower bill of materials than its MOD-MP3 handset interoperability. 313 handset. … NEC and Panasonic KTF is considering following LG Tele- “MP3 is ready to become standard are currently working on their next com by offering a service that allows function of all of our models to be chipset, which will be used in their unlimited playback of music files over launched for price tag of Won500,000 or phones and the merchant market, while MP3-enabled handsets after LGT re- higher,” adds Won. KTF also plans to NEC is supposedly moving away from fused to sign up to an agreement limit- add MP3 capability to 70-80% of its new using the Agere fab. ing the free-play period to 72 hours. models, earmarked to launch in 2H04. “Texas Instruments also continues to KTF, SKT, LG Electronics, Samsung From the vendor perspective, local struggle with its UMTS development, and the Korean Association of Phono- first-tier handset manufacturers LGE, although it seems to be doing much gram Producers reached a tentative Samsung, Curitel and SK Teletech are better with its CDMA development ef- agreement March 18 to restrict maxi- planning to launch numerous high-end fort. LG should have a handset using mum sound quality to 64KB, com- MP3-enabled handset models this year. the TI 1x chipset in India later this year. pared with 128KB for a paid MP3 file. Samsung says that at least of 20 of its In particular, one of its first UMTS cus- “If LGT remains unbudged in its 50 new models to be launched this year tomers – a major Asian handset manu- stance [against imposing the maximum will be MP3-enabled, while LGE rep- facturer – has reportedly dropped plans free playing time of 72 hours], we will resentative Yoon Won-Il says LGT is to use the TI chipset in an upcoming probably also scrap the 72-hour time ready to launch MP3-enabled handsets phone. Over time, we believe that TI limit from July this year,” said KTF rep- for SKT and KTF in May and June, re- will have a more dominant role in resentative Kim In-Tae. “We may have spectively. Third-ranked handset ven- UMTS, primarily driven by its to follow the lead of LGT, because if we dor Curitel also plans to launch six or GSM/GPRS success and its strong re- continue to deny the no-time-limit seven MP3-enabled terminals in 2004. lationships, but it isn’t there yet. conveniences, we are worried that our In May, LGT plans to launch the “From a compliance perspective, subscribers might leave us [for LGT].” Canyou HS6550 MP3-enabled phone, Freescale and EMP seemingly have very KTF claims to have distributed only which offers a 256MB external memo- strong solutions. Motorola PCS, we 20,000 MP3-enabled 1xEV-DO ter- ry stick that can store up to 60 MP3 point out, has several handsets that are minals in the two months to mid-May. music files. The 1xRTT handset, which commercially available using the It offers Samsung’s SPH-V4200 for will also feature a 1.34 million-pixel Freescale solution, while a contact famil- Won682,000 (US$581) and Samsung’s CCD built-in camera and FM radio iar with its performance in IOT notes SPH-S1000 for Won594,000, with the streaming, will cost Won600,000. In that the performance of the A835 has SPH-V4200 offering an external mem- contrast, most current MP3-enabled come a long way in the last few months. ory stick. handsets have a storage capacity of only The challenge, especially for EMP and to During the same period, LGT sold 32-128MB, compared with 512MB for a lesser extent for Freescale, is reducing 130,000 MP3-enabled 1xRR handsets. a typical MP3 player. May 25, 2004 9
  • 10. sector profile Mobile Handset analyst JAVA Fragmentation threatens to stall growing Java-handset market The media’s attention on the impending launch billion downloads, or 85% of the sector, in 2003. ARC ex- pects that level to be maintained for the next five years, fore- of 3G services worldwide and the relative dis- casting overall Java entertainment downloads to rise from 4.3 appointment of WAP have played substantial billion events in 2003 to just over 50 billion by 2008. In term of revenues, ARC Group estimates that Java mar- roles in boosting Java, heralding it as the de ket earned operators almost US$1.4 billion in 2003, a figure facto enabling technology for wireless data it forecasts will jump dramatically to more than US$15.5 bil- services, writes Malik Kamal-Saadi. lion by 2008. The numbers equate to about 3% of all data revenues in 2003, rising to 12.4% by 2008. Removing per- Handsets equipped with Java tripled in number in 2003, son-to-person messaging revenues as an application catego- reaching sales of 95.5 million in 2003, up from 32 million in ry from both the total and Java markets is estimated to leave 2002. Java is already well entrenched in the handset market Java with a 10.7% share of total revenues in the remaining worldwide, with key markets being South Korea and Japan. categories in 2003, increasing to 27.4% by 2008 – a fair re- Java-enabled CDMA phones dominate the South Korean turn for Java applications in the contents categories. market, and in Japan more than half of handsets in circula- Since 2000, many venture-capital companies have rushed tion are already Java-enabled. to market Java because they thought it would be lucrative and Today, despite the proliferation of Java handsets worldwide would induce a high return on investment. The wireless Java and the increasing number of vendor models containing the market has secured a level of financing of about US$15 bil- platform, the number of actual Java users is significantly low- lion, but total revenues from wireless Java services are not fore- er. There are some very stark regional differences in this analy- cast to reach US$15 billion before 2006 or 2007. Thus, the sis, since in Japan and South Korea it is believed that about global market for wireless Java will take another two to three four-fifths of all Java handsets sold in 2003 led to active Java years to achieve a certain level of profitability. ARC Group says users. In Europe, the opposite is understood to be the case, that if the wireless Java market starts to be largely overfunded, with only about 10% of handsets sold leading to active users. it might take even longer for investors to realize their ROI. The promise of Java has been mainly to serve the mobile entertainment market, with the sector forming 76% of total Open or proprietary? Java application volumes in 2003, according to research One of the advantages of Java technology is its openness, which house ARC Group. By 2008, however, the figure is expected has helped convince more than 500 companies to contribute to fall to about 40% because of increased use of Java-based to different expert groups under the Java Community Process. messaging platforms. As might be expected, games provided But that advantage is being depleted. More than 260 Java spec- the most use in the entertainment sector, with volumes of 3.6 ifications requests (JSRs) have been initiated by the leading play- ers, which generally aim first and foremost to benefit their own Fig. 1: Market opportunities for different Java profiles technologies rather than help the Java industry improve as a whole. The high number of JSRs has made Java one of the most VSCL fragmented technologies in the history of the data industry. As 2003 2008 DoJA a result, tool vendors cannot easily take advantage of standard APIs when building functionality into their tools and often cre- MIDP ate proprietary techniques to achieve the benefits the standards were originally created to address. CDC CLDC In addition, the great number of companies – most often rivals – involved in standardizing different JSRs has made the Low-end Mid-range High-end 2008 standardization process relatively slow. For example, the spec- ification for MIDP2.0 profile was released 20 months after the initial proposal, and the first devices implementing the Low-end Mid-range High-end 2003 profile were available four months later. The sluggishness of Source: ARC Group the standardization process has pushed many players, includ- ing NTT DoCoMo, KDDI and Vodafone, to initiate their 10 May 25, 2004
  • 11. sector profile Mobile Handset analyst own implementations to speed up time to market – a trend that has made Java even more fragmented, since several im- Fig. 2: Evolution path of Java and WAP services plementations exist concurrently. Implementations exist based on JCP profiles such as CLDC1.0, CLDC1.1, MIDP1.0, Java WAP MIDP2.0 and CDC and proprietary implementations such as NTT DoCoMo’s DoJa for i-mode services (see fig. 1), Service deployment Vodafone’s VSCL and JSCL and KDDI’s ezplus in Japan. While JCP profiles are adhered to by almost all device manufacturers worldwide, DoJa is only implemented by Japanese manufacturers. These manufacturers have initially designed their Java i-mode handsets to work over PDC net- works in Japan. Consequently, Java i-mode handsets they of- fer are not particularly well optimized for European services that use GSM network. Vodafone, on the other hand, is ded- 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 icating the JSCL profile to work on PDC networks in Japan Source: ARC Group and VSCL, a modified version of JSCL, to work in the GSM environment. sumers a flawless mobile web-surfing experience and ad- On top of the diversity of Java profiles, there is also a grow- vanced wireless data services, but it did not materialize, be- ing concern about Java virtual machines (VM) fragmentation. cause the content was not compelling enough to attract As the number of commercially available optimized VMs has users in sufficient volumes. increased, so has it become apparent that applications will The Java community has much to learn from the WAP work slightly differently on different VMs. This is not to sug- experience and should strive to ease the way for applications gest that applications will not function at all on different VMs. developers, a condition that is vital if the technology is to Any certified VM will have undergone the Java compatibili- succeed. Without such efforts, the fragmentation of the Java ty test and is therefore guaranteed to function, though no such market; the problems of applications portability, together guarantees when it comes to clean-room implementations. with the poor performance of Java applications compared But compatibility is a problem for application performance with native applications; and the lack of support for appli- and could affect the user experience, which is a focus of Java cations other than games could all limit the use of Java in technology. Therefore, developers need to be careful that the the future. functionality central to an application is appropriate to the In addition, the wireless Java industry is facing tough VM on which it is being implemented. For example, a VM competition from within, as well as from other technolo- better at handling graphics than a competitor is will be better gies, such as BREW and advanced OSes. In order to re- for applications such as games. Similarly, a memory-intensive main competitive and win market share, players application will function better on a VM that emphasizes throughout the supply chain will have to maintain attrac- memory-management techniques. tive price points while differentiating their products. They The fragmentation of Java technology makes it difficult will thus need to reduce their margins if they want to re- to build sustainable models for developing applications main competitive. Leading device vendors and wireless net- that can be ported through a variety of handset device work suppliers are still using proprietary technologies and models and operators services. Indeed, an application will will not outsource alternatives unless they can save money run only on devices featuring the same profile. For exam- and reduce time to market. Such an approach has led to ple, porting an application from a MIDP-based profile to strong pressure on pricing, challenging competitors and Java i-mode or other non-Java-based technology, such as pushing them to either align themselves or lose share if Microsoft or Symbian OSes or even CDC, has proved to they want to maintain margins. be an extremely hard task. Java fragmentation makes it dif- As has been the case for many hyped technologies before, ficult for service providers because deploying a wireless data the wireless Java industry must undergo rapid consolidation. service based on different implementations is not easy to It is a trend that is already happening in many segments of manage and significantly increases both operational costs the supply chain, and industry players will be forced to cre- and customers’ management costs. In addition, the issue ate partnerships and collaborate to cover overall wireless Java of application portability is slowing down developers’ in- service delivery in a more efficient and effective way in order volvement. Therefore, until a clear standard is presented, to survive. there is a danger that wireless Java take-up will be slower Malik Kamal-Saadi is co-author of Mobile Application than in its early deployment. Platforms and Operating Systems 2003-2008, published It seems that Java is undergoing the same experience in March by ARC Group. For more information, please see WAP did in its early years (see fig. 2). WAP promised con- www.arcgroup.com/mapos May 25, 2004 11
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