Tablets likely to transform ICT industry landscape: Computex 2011

Stephen Su, general director of IEK, Taiwan.

According to Stephen Su, general director of IEK (Industrial Economics & Knowledge Center), Taiwan, tablets are likely to transform the ICT industry. He was delivering a keynote at the Computex 2011 pre-show conference being held in the city’s well known Taipei World Trade Center (TWTC).

Tablets are now said to be moving from ‘experience’ to ‘industry.’  Tablets will provide more innovative user-interface experiences as well. More cost will be spent on the user interface on tablets, as far as BoM is concerned, he added.

Further, tablets are likely to change the transactional model of the ICT industry, and will emerge as the new ‘service platform’  for the integration of ICT and the other industries as well.

In this scenario, Taiwan is now well poised to once more play a leading role among mobile devices. The country not only has leading mobile device manufacturing capabilities, it can also supply most of the required electronic components, said Su.

The next step will be to strengthen the technology of key components, terminal design, application platform and service innovation. In future, Taiwan could go on to become te leading development and innovation center in the world, he added.

Earlier, he said that there was a cross-over evolution among mobile devices. In smartphone usage, messaging and apps had overtaken voice. As for non-voice usage, heavy media content was currently being accessed regularly on the Apple iPad than the iPhone.

The iPad users are said to be spending more time with media content other devices. The users’ response has shown that the iPad truly affects the usage of other devices, besides smartphones. Smartphones will soon impact the growth of mobile phones, PMPs and PNDs. However, the tablet will mostly affect the netbook and e-reader, while gradually impacting the notebook, Su noted.

Consequently, there has been a transition in the mobile device industry —  from product to the ecosystem. More companies are now creating their own ecosystems, such as Apple, RIM (Blackberry), Nokia Ovi, Samsung, etc.

Three types of smartphone platforms — closed, hybrid and open — are shaping up for the ecosystem based competition. Innovative applications are said to be leading the development of key components.

Mobile devices are now focusing more on the experience, than on the product. Cloud services are being offered  around the clock for experience offering.

As a result, tablets are likely to transform the ICT industry, noted Su, as it is now moving from ‘experience’ to ‘industry.’

Evolution of wireless market and emerging trends: Qualcomm

Matt Grob, SVP, corporate R&D, Qualcomm.

At the ISA CXO Conclave, Matt Grob, SVP, corporate R&D, Qualcomm, said that the company is a world leader in next-generation mobile technologies. It is celebrating 25 years of driving the evolution of wireless communications. It is making wireless more personal, affordable and accessible to people everywhere. Qualcomm is also the world’s largest fabless semiconductor company, #1 in wireless, and #9 in semiconductors.

Qualcomm’s unique business model is to be a technology enabler for the entire mobile value chain. It has continued strategic R&D investments, totalling more than $15.4 billion in 2010.

Industry trends
The 2G to 3G migration is currently taking place, with over 3.1 billion 3G subscriptions likely in 2015.  As for the emerging region growth, China leads with 640 percent, followed by Latin America at 465 percent and India at 168 percent, respectively.

Qualcomm is also said to be enabling the mobile broadband in India with 3G and LTE. Besides growing the LTE TDD ecosystem in region, it is building partnerships for long-term strategy and establishing 3G/LTE as best technology path for operators. Qualcomm is also driving the device evolution and growing the market by creating more choices for operators and consumers. It is developing low-cost 3G handsets for emerging markets using 1+ GHz mobile processors and supporting multiple popular OS.

The smartphone industry momentum has ensured that the ecosystem is benefitting from and driving growth. There has been as much as >25 percent YoY data revenue growth from leading operators. OEMs have launched 100+ new smartphones in the first half of CY 2010. The total mobile apps downloads from developers is likely to move up from 7 billion in 2009 to 50 billion by 2012.

2009 will not be 2001 repeat for global chip industry

The fact that the ongoing economic gloom has brought some doom for the global chip market is well known. H1-2008 held up well, better than most had predicted. However, now, the economic gloom in the global financial system has managed to nick the US, and Europe, and lately, Japan, into recessionary conditions, taking the global chip industry along with it!

Some fear that the recession will be as bad as 2001 and that 2009 could re-enact 2001! However, Future Horizons’ Malcolm Penn differs, and I’d agree with him. In 2001, there was this huge dotcom collapse, coupled with the unfortunate happenings of 9/11, and a ‘massive inventory burn just as a huge amount of excess capacity was coming on stream.’

What’s the situation now? There’s no serious overcapacity, and the pre-slowdown utilization rate were in the 90 percent region. Capex was already in retrenchment, well before the slowdown. Nor are there any serious excess inventory in the supply chain.

So, that only leaves the problem of the global financial gloom. Lot of money is being thrown about at the problem, hoping that it would pull the world out of the mess it currently finds itself in.

But, can the industry afford to NOT innovate? This is the time to innovate and find new ways to come out of the hole it finds itself in. The industry must also reconcile to single-digit growths mostly, from now on, I guess.

There has been no new ‘killer device of mass use’ like the mobile phone. Simply, no one has been able to come up with any new device of such mass appeal! The mobile phone, as we knew it, was only meant for voice. Now, it ports a camera, an MP3 player, Internet browsing, email, etc. It gave birth to PDAs, and probably, now, mobile Internet devices (MIDs).

It amuses me a lot when I find companies talking about providing full Internet experience on the mobile phone. It amuses me even further when I find a lot of people and companies talking about how they expect people to be on the Internet all the time! Surely, there are other things to do in one’s life than simply staying hooked to the Internet! Or maybe, they have a crystal ball to gaze in, all the time!

The industry needs to be careful about all the predictions and technologies. Not all will succeed. What they should try their hand at is at being innovative! Or, has innovation completely gone out of the window?