From CES to Look Next Waves

Trend and Product

Creative Design Center
Feb 2,2007

2007 CES Snapshot

2007 International CES Defined by
New Convergence of Broadband, Content and Consumer Electronics

Create cool experiences in digital lifestyles

2007 CES Hot Topic Focus

1080p LCD HDTV Sharp:108LCD TV Sony:28OLED TV
NextGen Blu-ray Tech.
HD DVD VS Blu-ray Disc 51GB Sony50GB LGSuper Multi Blue

Car Tech.

GPS application

iPod Peripheral Product

Vista

Wireless Tech. ( Bluetooth / Wi-Fi)

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Storage Media
NAND FLASH :from 2GB to 8GB

Hitachi 4

Who steal the show against CES in 2007?

CES Jan 7-10 Las Vegas Bill Gates 140,000 attendees thousands of new products

Macworld Jan 10 San Francisco Steve Jobs 40,00 attendees iPhone Apple TV

Apple unveil two stunning products iPhone Apple TV

Apple launches the iPhone; Shares of Rivals Tumble

Finally show up~~~ Apple's stck price was up 7.10% to US 92.57 after Steve Jobs' keynote.

Source: New York Post January 10, 2007

From CES and Macworld Look Ahead Vision 2010 Nowadays 2007 Could we find out some creative business ideas behind CES & Macworld?

From Industry Viewpoint

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From Product Viewpoint

Digitalize your life

Digital Home

Notebook PC Desktop PC

Mobile Phone

item
middle Circle 1 Circle 2 Circle 3

content
CPU OS transmission Digital Video Recorder Interface Terminal device

Wi-Fi

EV-DO WCDMA
HSXPA
MP3 player

WiMAX

UMB

Palm

Linux

Ethernet
Telematics

DVD player & Recorder

MIMO
Digital STB Home Server

Dual-core Multi-core processor

Symbian

DVI/HDMIPDP TV
LCD TV Digital RP TV

Windows
IEEE-1394

W-USB

Game console Digital Camcorder

Digital Camera

Home Theater

Source:

iPhone

WiMAX

Multimedia Phone Multi-Touch

WiMAX is next big thing?

Vista

Wii

Vista enabled in converged phone? Windows Mobile 5.0 Crossbow 9

Disruptive innovation

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Apple Reinvents the Phone

It is rumored that~~~
Touch screen +iPod Clamshell iPhone Slim iPhone

Slide +QWERT Keypad

Video iPhone

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Explore Apple iphone

Market Position Assumption ID design Specification (Hardware & Software) Unique Feature (UI/ Advanced Sensors ) Application service models Pricing model& Product launch Strategy Competition scenario Challenge & industry impact
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 Market Position Assumption

Target market

High-end multimedia feature phone and smartphone market (consumer oriented)

Selling Point

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ID design- Say goodbye to traditional cell phone buttons!

11.6 MM
Receiver

61 MM

200MP DSC

Volume control

115 MM

3.5-inch widescreen display Speaker/MIC

HOME
3.5 mm earphone jack

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Technical Specifications (HW)

Dimensions
115 x 61 x 11.6 mm

Weight
Screen size GSM Screen resolution Input method Storage Wireless data Camera

135 grams
3.5 inches

missing something: 3G GPS Mobile TV

Quad-band (MHz: 850, 900, 1800, 1900)+ EDGE 320 by 480 at 160 ppi Multi-touch 4GB or 8GB Wi-Fi (802.11b/g) +Bluetooth 2.0 with EDR and A2DP 2.0 mega pixels

Battery

Up to 5 hours Talk / Video / Browsing Up to 16 hours Audio playback

Filed for over 200 patents for all the inventions in iPhone
Source: Apple website
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Technical Specifications (SW)

Safari web browser

Google maps

OS:MAC OS X

HTML e-mailweb browsingwidgetsSafaricalendartext messagingNotesand Address Book etc. widgets

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 Distinctive Feature -UI design(1)

Let's not use a stylus, best pointing device in the world Our Fingers Multi-touch Virtual QWERTY keypad

Cover flow

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 Distinctive Feature - iPhone's Advanced Sensors

when the user has rotated the device from portrait to landscape, then automatically changes the contents of the display accordingly.

Accelerometer

Proximity sensor

when you lift iPhone to your ear and immediately turns off the display to save power and prevent inadvertent touches until iPhone is moved away.

Ambient light sensor

iPhones built-in ambient light sensor automatically adjusts the displays brightness to the appropriate level for the current ambient light, thereby enhancing the user experience and saving power at the same time.

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 Application Service Models

Buy music, movies, TV shows, and audiobooks, or download free podcasts from the iTunes Store 24 hours a day, 7 days a week.

Cooperation

Search engines Google map

Yahoo Go services (package service)

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Apple iPhone product launch information

Exclusive carrier partner: Cingular
(two year contract )

8GB model :USD$599 4GB model :USD$499

Most popular iPod is $199 Smartphone cost? Average around $299

iPhone will be available

Europe Region
2

Asia-Pacific Region
3

US Region
1

Europe in late 2007

Asia in 2008 (estimate)

US in June 2007

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Apple iPhone BOM analysis

Large margins
Apple iPhone to Generate 50 Percent Margin.

iPhone Sales price Total cost Margin

4GB $499 $245.83 50.7 %

8GB $599 $280.83 53.1 %

Prediction:
Apple is facing extensive competition in the music-phone market, the company maybe need to cut into its margins to reduce pricing in the future.

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source: iSuppli January 18, 2007

iPhone Supply Chain Analysis

Major iPhone Supplier List

Implications for supply-chain in Taiwan

Taiwan suppliers are largely involved with Tier one handset OEMs. (from assembly, PCB, cable/ connectors,mechanical & optical components)

Items Baseband/RF transceiver Memory MP3 player processor Bluetooth Wi-Fi

Suppliers Infineon Samsung Toshiba Samsung CSR Marvell

Touch Panel Controller IC

PCB Conector/cable Camera CMOS sensor Camera lens Camera module Metal casing Battery Assembly Display

Broadcom
Unimicron Nan Ya PCB Cheng Uei Micron Largan Altus, Primax Catcher Sony Hon Hai TMD Sharp Optrex

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Source: UBS estimates January 16, 2007

 Challenge-A heavy load for the iPhone to bear

Apple's entry into a competitive market full of large companies far more established than the MP3 player firms that got flattened by the iPod.
Product position
It doesn't appear that Apple is targeting corporate customers with the iPhone, but executives and salespeople have so far been the biggest smart-phone customers, at least in the U.S.!
iPhone runs "OS X." (but Steve didn't say much about it!) How much work would it take to alter a simple game, spreadsheet or text editor for OS X to run on the iPhone? Or will the iPhone be as closed as the iPod? What types of applications are going to be available for the iPhone? It's unclear if Apple will support popular third-party mobile applications beyond the ones from its buddies at Google and Yahoo (ex: Skype VOIP) key question: What about standby time? Is the battery sealed like the iPod or easily replaceable? Which applications processor is Apple using inside the iPhone? iPhone will use Cingular's EDGE (75Kbps to 135Kbps) No 3G EDGE support isn't going to fly outside the U.S., The iPhone is expensive, comes in at the top of the smart-phone market! Selling iPhone through Cingular stores rather than 3C channel like iPod.

OS

Applications

Battery life

Networking Pricng Channel 23

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Reverse the trend for mobile phone market

Entering New Competitive World~

SW app. HW spec. ID design

Total fully service solution!

(HW/SW/UI/Service model/)

Create innovative model Maximize customers value!

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Taiwan mobile ODM status

2005 EPS 2006 EPS(e) 2007 EPS(F) 2006 shipment forecast 1200 (PDA+Smartphone) 9 716800 17 3 1300 100

2498

28.3

60.0

82.0 Pocket PC 12.3 PDA phone Smartphone Others 2.8 Total

8078

7.7

10.5

8101

1.5

Source:,,2006/10

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Boundary Overlapping between ODM/EMS

EMS EMS+ODM FIH ODM

Global Logistics

Ratio of self-made components

Design capability

KSF of FIH
Core value
CMMs provider

NoteC : component/M: Module /M: Move /S : Service

Source :MIC, DEC. 2005

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FIH core competence

FIH Ratio of self-made components:44.6
vs EMS: High design capability

Strength
vs ODM: High in-house components

Foxconn group Component Self-made ratio

Item PCB LCM CCM

FIH vendor (panintl) (Innolux) (Premier) / (Altus)

Case Battery / Bluetooth FPC EM 29

Source: MIC, Oct.2006

(Foxconntech) (Foxlink) (Foxconn) (Foxconntech)

Keypad

Sun Arrow

What is next step for Arima?

Apple

dropped the computer from corporate name!

From 3C to 6C!
Computer/Communication/CE

Channel/Car Tech/Digital Content

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Backup Slide

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 Impact for Handset Industry

First generation iPhone have limited impact on key mobile phone player!
Geographical limit Price Service offing

Moto (20-25% of Cingular) US market

SEMC (lots of MP3 phones sold at Cingular) US market

Smaller US exposure

Enterprise base

Enterprise base

Limited markets

Handset ODM/OEM opportunities: Apple iPhone outsourcing strategy

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Competition scenario: head-to-head competition

Shipments of music-enabled mobile phones will rise to 618.1 million units in 2007 up 39.9 percent from 441.7 million units in 2006, iSuppli predicts. Apples goal is to capture 1 percent of these unit sales

Vendor Apple Nokia

Model iPhone Nokia N Series XpressMusic ROKR Series

Service iTunes 2007 start

Note Software/ID capability Top 1 handset maker/good relationship with chipset maker and operator. Top 2 handset maker/good relationship with chipset maker and operator. Shipment over 1500 million.

Motorola

iRadio

Sony-Ericsson

Walkman Series

PlayNow

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Apple
Mobile music service Music phone

Nokia

Motorola iRadio

Sony-Ericsson PlayNow Connect Walkman W850i 6-Oct US$500 TFT GSM/UMTS Slider 2MPx Yes 16Mb 7.5 hrs 98 x 47 x 21 116 Walkman Player 2.0 Stereo headsets OTA music download

Samsung

Blackberry

Palm

iTune iPhone 7-Jun US$499/599 TFT (3.5) " GSM/EDGE Bar 2MPx -4GB/8GB 5 hrs 11.6 (thinness) XpressMusic N76 7-Mar Euro390 TFT/CSTN GPRS/EDGE/WCD MA Clamshell 2MPx Yes 26Mb 2.7 hrs 106.5 x 52 x 13.7 115 Touch control Music keys on front cover 3.5mm headset jack Windows Media DRM Video capture

ROKR ROKR E6 6-Dec US$450 TFT touchscreen Tri-band GSM Bar 2MPx Yes 8Mb 7 hrs 111 x 51.5 x 14.5 121 Music function sidekey

Ultra Music SGHF300 1Q07 -TFT Tri-band GSM Bar type with Dual face 2MPx Yes 100Mb 2.5 hrs 103.5 x 44 x 9.4 78 Stereo headsets

Pearl 8100 6-Sep US$199 TFT GPRS/EDGE Bar 1.3MPx -64Mb 3.5 hrs 107 x 50 x 14.5 89.5 Media Player

Treo 750 6-Sep US$399 TFT GSM/UMT S Bar 1.3MPx -60Mb 4.5 hrs 111 x 58 x 22 154 Windows Media Player 10

Launch date Price

Display/Sub-display Network

Form factor

Phone camera FM Radio

Memory embedded Talk time Dimensions (mm) Weight (g) Music function

Cover Flow Stereo headsets Proximity sensor

Music function sidekey USB 2.0 Windows Media DRM/ Video capture

Note

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Wi-Fi / Multi-touch display / Visual voice mail

Symbian S60 OS /XpressPrint /LED flashlight

Linux based /Business card

LED flashlight

QWERTY keypad

Touch screen /Voice memo