Category: Products

Tablet juggernaut rolls on

nexus7Worldwide tablet sales continued to surge, growing 142.4 percent in the first quarter of 2013.

According to IDC’s latest figures, tablet shipments totalled 49.2 million units in Q1, surpassing the first two quarters of 2012 combined. It seems growth is now being fuelled by smaller and cheaper devices.

Since small and cheap tablets are almost exclusively powered by Android, Google’s once fledgling mobile OS is starting to overtake Apple, and we might see a repeat of the smartphone wars. However, Apple is not going anywhere anytime soon. It still managed beat IDC’s latest projections, shipping 19.5 million iPads, 800,000 more than the original forecast and up 65.3 percent compared to a year ago. Samsung also did well, piggybacking the success of its Galaxy series phones with Galaxy branded tablets. The Korean giant shipped 8.8 million tablets, up 282.6 year-on-year. Asus shipped 2.7 million, up a whopping 350 percent in a single year.

Amazon ranked fourth, with 1.8 million units shipped and 157 percent YoY growth. Not exactly a bad result, but then again Amazon really doesn’t have much to show for all its Kindle Fire hype. Good old Microsoft sold just 900,000 Surface tablets, which are still struggling to become relevant. Worse, total Windows tablet sales, including the Surface RT, Surface Pro and all other tablets based on Windows RT and Windows 8 totalled just 1.8 million units.

The numbers clearly show that most growth is coming from Android tablets. Although Apple is still growing at an impressive pace, the market is slowly becoming saturated with inexpensive droids. The combined Android market share stands at 56.5 percent, while apple is down to 40 percent.

This is nothing new, we saw the same trend in the smartphone market a couple of years ago and it worked like a charm. By flooding the market with cheap 7- to 8-inch Android tablets, Google might pull it off in the tablet space as well, although it still has a long way to go.

Intel confirms $200 Android notebooks

Intel-logoIntel is working on $200 notebook designs, powered by cheap chips and Google’s free Android operating system.

Dadi Perlmutter, Intel VP and chief product officer told CNET that $200 notebooks will predominantly be Android products based on Atom chips.

Now the ball is in Microsoft’s court, if Redmond wants to gain a toehold in the ultra cheap notebook market it will have to make its operating systems a bit cheaper.

Perlmutter said the price of Windows 8 gear depends on how Microsoft prices the OS, and it could end up slightly pricier. In addition, Perlmutter pointed out prices of notebooks based on Core processors should go down to $399 to $499.

As netbooks are about to die a quiet death, $200 droidbooks might be the best way to replace them. Upcoming Atom chips are roughly on a par with ARM SoCs in terms of power consumption and performance per watt, so from a technical standpoint Intel should have everything covered.

The big question is software. Android is a good operating system for touch enabled devices, but it has yet to prove itself on more traditional form factors, that is,  notebooks.

Cheap smartphones are the next big thing

nexus4-ceAs the smartphone juggernaut rumbles on, vendors are increasingly turning their efforts to emerging markets, with less disposable income and a much lower smartphone penetration rate. As smartphones are projected to outsell feature phones this year, the need for inexpensive smartphone designs is greater than ever and ABI Research reckons it will continue to grow.

ABI Research divides the smartphone market into three price brackets, low-cost smartphones priced at up to $250, mid range models in the sub-$400 price range and high-end devices, priced at $400+. Shipments of low-cost phones are expected to grow from 259 million this year to 788 million in 2018. Sales of high-end and mid-range phones are forecast to grow from 635 million to 925 million.

It is clear that there is a lot more room for growth in the low-end, and to some extent the mid-range. ABI Research estimates that low-cost units will account for 46 percent of all smartphone shipments by 2018, up from 28 percent last year.

Although most growth is expected in emerging markets, it is very likely that western consumers will change their habits as well. As smartphones mature it will become increasingly difficult to come up with very innovative designs and the lukewarm response to the Samsung Galaxy S4 and iPhone 5 might be a sign of things to come.

“As smartphone penetration moves from early adopters to mass-market and laggard consumer segments, the smartphone as a product will be less dependent on technical superiority, and more dependent on reliability and value,” said senior practice director, Jeff Orr.

Low-cost smartphones are expected to do exceptionally well in underdeveloped markets, with plenty of pre-paid users and very little in the way of subsidies. However, they could also play a role in developed markets, helping feature phone consumers convert to smartphones at a fraction of the cost of high-end gear.

Nissan turns over a new Leaf

nissanleaf2gNissan has revamped the Leaf for the UK market, and the updates aren’t just skin deep. The new Leaf boasts more than 100 improvements over the first generation, including spiced up trim levels, new battery warranty programme and perhaps most importantly, the option of leasing a battery.

The battery pack is the single most expensive component in any fully electric car, and concerns about battery life and the cost of a replacement battery have plagued electric cars since their inception. However, by simply leasing the battery for £70 to £109 per month, Nissan is practically eliminating the risk altogether.

Leafs with leased batteries will bear the “Flex” moniker and they will end up cheaper than previous models. The cheapest Flex model with the Visia trim level starts at £15,990, which is pretty competitive for an all-electric car. Then again, buyers will have to spend at least £840 per year on the battery lease.

Consumers who opt for the more traditional approach and buy their own battery stand to benefit from Nissan’s new warranty protection. Nissan is now covering capacity loss under its 5-year warranty. A battery that loses 25 percent of its capacity over the first five years of 60,000 miles will be eligible for repair or replacement, which should put some minds at ease. The cheapest Leaf with a battery starts at £20,990.

In addition to cosmetic improvements, ranging from new alloys to LED headlamps and a Bose audio system, the new Leaf also promises to deliver a bit more range. Nissan claims the car’s range has been extended from 109 miles to 124 miles and the battery is now capable of recharging in about half the time of the first-gen Leaf, provided a 32 amp charger is used.

HP chucks Moonshine at non-x86 SECCs P.I.E

hpmoonshineHP has announced the latest in Project Moonshine, which CEO Meg Whitman said in a web conference should be a shift in the way servers handle data. It may also be a shift away from X86.

If nothing is done to address core infrastructure problems, Whitman said, infrastructure could be something that actually holds back the development of the web instead of enabling it. “It’s not just about cellphones and tablets connected to the internet but millions of sensors collecting data,” she said, machines talking to machines, and generating not petabytes but brontobytes of data.

Project Moonshine, Whitman promised, would not be jailhouse toilet booze but a “multiyear” and “multi phased” program to shape the future of data centres – as the current path we’re on is “not sustainable from a space, energy and cost perspective”. Using years of HP Labs research, Whitman and HP Moonshine will hel create “the foundation for the next 20 billion devices”.

In a webcast, HP’s Dave Donetelli mentioned the proof of concept for Moonshine which was unveiled in 2011, and since HP roped in 50 beta customers to thoroughly develop and test its various iterations. Now, HP has given the world the second gen Moonshine servers, which it claims are based on the concept of the ‘software defined server’ – that is, specifically with internet scaled workloads in mind, and designed for the software that needs to run on it.

Donetelli said the servers address Space, Energy, Cost, and Complexity (SECC). By which he means there’s less of all of the above.

The Moonshot 1500 enclosure, Donetelli points out, can hold 45 Moonshot servers, and compared to the traditional ProLiant server, it uses up to 80 percent less energy, 80 percent less space, and is 77 percent cheaper. Customers, then, will be able to build better revenues from a smaller footprint for less cash. These servers run on the Intel Atom s1200, though partners like AMD, Applied Micro, Texas Instruments and Calxeda are all bringing in new chipsets – which HP hopes will provoke market competition and more innovation.

Targeting big data, high performance computing, gaming, financial services, facial recognition, video analysis and other stuff, Donetelli promised that the portfolio of the servers will grow – and at a quicker rate thanks to the competition between its partners as it’s not tied to an 18 to 24 month chip cycle.

Partners will be able to, and encouraged to join the Pathfinder Innovation Ecosystem, or P.I.E., including operating system developers and software vendors.

Donetelli said this announcement is not an “incremental change” but a “new class of servers designed for the data centre”.

When asked if these will replace X86 servers, an HP spokesperson said PCs were the high volume product at that time, today things that people buy in high volume are smartphones and tablets. A transition from Unix to X86 took time, and HP believes a transition from X86 to Moonshot will take time. “X86 will be here for a very long time, but Moonshot will be here for a long time,” the spokesperson said.

Analyst Patrick Moorhead said that the developments are positive because the servers of today aren’t ready for the explosion in data driven by future trends such as the all-singing all dancing totally connected internet of things.

The first Moonshot server is shipping today in US & Canada and will be available to channel partners around the world next month.

Notebook shipments in Q2 to remain weak

notebooksIncreasing demand for tablets, coupled with weak demand from China, is expected to hit notebook shipments in the second quarter.

According to Barclays Capital, global shipments will tumble 17 per cent from Q4 2012, traditionally the strongest quarter for notebook shipments. Notebook sales in Q2 usually grow by about 6 per cent, but Barclays believes shipments will grow only 4 per cent this year. Yang attributed the decline in demand from China to the ever increasing demand for tablets.

Barclays analyst Kirk Yang believes the weaker than expected growth also reflects delays in the introduction of new models. Both Intel and AMD are about to introduce new mobile processors and a new generation of touch enabled Ultrabooks is also on the way.

Taipei Times reports that Quanta, the world’s leading notebook ODM, is simply not receiving many orders. International brands are reluctant to place large orders, as better gear is just around the corner.

The really bad news is that things will not pick up anytime soon. Weak demand will plague the market well into the fourth quarter of 2013.

There are some technical challenges as well. Next generation hybrids and convertibles aren’t making much of an impact on the market yet. A shortage of touchscreen panels means that the production of touch enabled notebooks won’t pick up until later this year, which will roughly coincide with the rollout of new Intel mobile chips. SSDs remain prohibitively expensive for some market segments and they are still reserved for quite pricey SKUs. The same goes for high definition 1080p screens in sub 14-inch market.

In other words, consumers who don’t opt for high end devices really don’t have much of an incentive to upgrade.

DRAM is strong, NAND is sluggish

nand-chipsIndustry analysts believe the memory sector will continue to do relatively well despite a decline in NAND demand. Although NAND might not be a very hot commodity, DRAM sales are expected to surge, reports The China Post.

The price of 2GB DDR3 chips in the first quarter rose 57.8 per cent, while NAND prices rose by 19.8 per cent, according to TrendForce. Strong demand for tablets and smartphones seems to be boosting DRAM sales, and the fact that an increasing number of vendors are introducing Android devices with 2GB of RAM should also help.

However, strong demand could also result in even higher DRAM prices. TrendForce believes the price of 4-gig DDR3 DRAM modules has the potential to rise by another 30 per cent. The outfit points out that the high season for mobile device launches is drawing near, which means more demand should be expected.

Although DRAM prices will remain strong, NAND prices are expected to decline in the short term. NAND prices should remain relatively stable, due to a reduction in supply.

It might sound a bit counter intuitive, but it is worth noting that smartphone and tablet peddlers are not increasing the amount of NAND storage in their devices. Most devices still ship with 8GB or 16GB of storage, while high end gear tends to ship with 32GB, or in some cases 64GB. This is in stark contrast to market trends just a couple of years ago, when each new generation of devices tended to offer a twofold increase in storage.

On the other hand, the amount of RAM is steadily growing. Three years ago smartphones used to ship with 512MB, which was upped to 1GB for the last two generations and as of late last year we are seeing an increasing number of Android devices with 2GB of RAM.

On Monday, just a year before XP goes

framedwindowsThis coming Monday will mark just one year until Microsoft ends extended support for Windows XP. Vista was a joke – but Windows 7 is quite good, and companies are being urged to upgrade their OS before exposing themselves to unnecessary risk.

Microsoft has itself advised companies to upgrade to 7 or 8, but according to a report from 1E, under a quarter of surveyed companies had migration in place. Just under half said they were in the process of upgrading – meaning headaches for IT departments if they do not get their upgrades guaranteed in time. 1E warns that with just a year left to complete that migration, it won’t be long before budgets are complicated by costly extended IT support.

In a statement, Sumir Karayi, CEO of 1E, said businesses will be under threat of security risk unless they upgrade their IT systems in time – and the migration should be done with as little disruption to the business as possible.

“Organisations that are not yet off the starting blocks or only a little way down the track are highly unlikely to complete before the Microsoft deadline,” Karayi said. “Whether the delay is because they misunderstood the sheer scale of the project, or that they are coming across technical hurdles, it means they cannot confidently predict when they will finish or how much it will cost them”. The prospects, Karayi warns, are a little grim – “few IT teams will have ever experienced such a complex migration,” he said.

Karayi said 1E leans toward fully automating the process on as many as machines as possible instead of partiallyautomating the process for every machine, because it can lead to 80 to 90 percent less desk visits. Using a totally automated approach “means organisations can deploy literally thousands of machines per day,” which is the “only way to get migrated within the available time”.

Camwood, a migration services company ‘s CEO Adrian Foxall said IT knows full well that the end of Windows XP is around the corner, but business isn’t paying as much attention.

“In these tough economic times, it is not surprising that business leaders do not want to invest a substantial amount of money in something that essentially isn’t broken, as is the case with Windows XP today,” Foxall said. “But with an estimated 40 percent of business desktops still running Windows XP and with the clock ticking, IT and the board need to join forces and work together to migrate to a new OS that will support their organisation now and into the future”.

If they don’t, companies will be putting themselves “in jeopardy”.

AMD extends Never Settle bundle to select APUs

AMD, SunnyvaleAMD’s Never Settle game bundles seem to have been quite successful in the past, so it’s hardly surprising that AMD has decided to extend the programme to select APUs. So far the Never Settle promotion was limited to discrete graphics cards.

According to a set of slides unearthed by German tech site hardwareluxx.de, AMD will start bundling Sim City with several APU SKUs later this month. Sim City is a rather interesting title for casual gamers and it doesn’t need discrete graphics to run properly, so it looks like a good choice. Sadly though, the Sim City launch has already been marred by a number of technical and DRM issues. However, everything will probably be sorted out before AMD’s new promotion takes off.

It appears that the programme will be limited to select A8 and A10 APUs. As AMD is expected to introduce a new series of desktop APUs based on the Richland core, it is safe to assume that the promotion will cover them, along with some Trinity chips.

In any case the buyers of eligible chips will get a free download code for Sim City, valued at $59.99. This sounds like more than a fair deal, as even the fastest AMD APUs tend to be quite cheap. A $59.99 gift as icing on the cake seems like a very clever way of adding even more value to these mid-range chips. Provided consumers like Sim City, of course.

Acer to slowly revamp product line, focus on tablets

acer-logo-ceAcer is apparently planning to revamp its product line in an effort to revive sales and growth momentum.

Last week Acer announced that it will increase R&D spending to between 1.2 and 1.5 percent of annual sales this year. Acer apparently wants to invest more in order to stay competitive in the tablet market, while at the same time improving its notebook line. Acer hopes to sell between 5 and 10 million tablets this year.

Analysts, however, see trouble ahead. Deutsche Bank analyst Ivy Lee said Acer might encounter new challenges that might cause its sales to remain flat, reports Taipei Times. Windows 8 is apparently the biggest risk, since there is still not enough consumer feedback on Windows 8 tablets and notebooks.

Acer recently killed off a couple of its value brands, after it experienced a huge inventory loss in late 2011. Like other leading PC makers, Acer is experiencing a lot of margin erosion and falling market share.

Citigroup Global Markets analyst Kevin Chang believes Acer will continue to struggle in the near future. In a recent note he argued that Acer’s current strategy is simply not working and that it has to be more aggressive on pricing.

As the PC slump drags on, Lenovo, Asustek, Dell and HP will try to hold their ground and fierce price competition is to be expected. As for tablets, Asus and Lenovo have done a bit better than other major PC players. Lenovo did particularly well in China in the last two quarters, while Asus has managed to make quite a name for itself in the Android tablet space with the Transformer series. It also builds Google’s Nexus 7 tablet.

Microsoft starts selling Surface tablets in bulk

surface-rtMicrosoft’s Surface tablets are off to a rather unimpressive start, but Redmond now believes that it can woo more business users by selling its gear in bulk. The new service allows business users to place volume orders for Surface tablets, reports ZDNet. We are, however, not convinced it will help Microsoft’s cause.

The Surface Commercial Order service is only available to authorized partners and volume licensees, which means smaller outfits can’t take advantage of it. The real question is whether anyone will take up Microsoft’s offer. Microsoft is still not saying much, but it seems the bulk rollout will be very limited indeed.

Surface sales are another thing Microsoft is willing to talk about. Analysts reckon that it manage to shift upwards of one million Surface RT tablets, along with 400,000 units of the pricier Surface Pro. The figures are unimpressive to say the least.

Microsoft still believes that Surface tablets, and especially the x86 based Pro version with Windows 8, are the right choice for businesses. The decision to make it a bit easier for partners and volume licensees to order heaps of Surfaces seems like a logical move in that direction, but Microsoft might have missed the boat already.

Apple’s iPad still reigns supreme in the business space, and it is being challenged by Android tablets, not Microsoft gear. BYOD is another worrying trend that should be taken into account. Few people will buy Surface RT tablets for personal use and even fewer will go for the chunky and expensive Pro version. They will try to use their iPads and Android slates at work and most companies will be happy to let them do so.

Apple selling refurbished iPads in online store

refurb-ipadConsumers want cheaper tablets and even Apple has given in to the trend, with the introduction of the iPad mini last year. Now it is going a step further, by selling refurbished iPads online.

Appleinsider reports that Apple is already listing a number of refurbs in the US. For example, a black 32GB iPad mini with Wi-Fi and cellular is up for grabs for $429, while a Wi-Fi only 32GB white unit goes for $389. Fourth generation 9.7-inchers are also there. A Wi-Fi only 16GB Retina pad will set you back $449, while a black one with Verizon cellular is priced at $579.

Although they are refurbished, they are hardly bargains. Going for a refurbished iPad mini should save consumers $30 to $40 depending on the SKU, or $50 on Retina 9.7-inch models. They are still a lot pricier than brand new Android tablets, but there is a very good reason for that.

Apple still enjoys a comfortable lead in the tablet space, courtesy of its app ecosystem, which is second to none. Demand for Android tablets is going up, but consumers are going after cheaper models, not high-end gear with HD screens.

Ultra HD TV panel shipments to hit 2.6 million units this year

lg-ultra-hdThe first Ultra HD devices are hitting the market and analysts now estimate 2.6 million Ultra HD TV panels could be shipped by the end of the year.

Since Ultra HD, or 4Kx2K is a relatively new standard, shipments last year were negligible, just 63,000 units. This year we should see the first generation of commercially viable Ultra HD televisions, but it will take years before they go mainstream.

Ultra HD sets are extremely expensive and they are pretty pointless for the time being. There is practically no 4K content out there and spending thousands on “future proof” TVs just isn’t an option for most consumers. NPD Display Search reckons panel makers are looking to speed up 4Kx2K adoption by strengthening their relationships with TV brands and stepping up their manufacturing and sales efforts.

DisplaySearch Vice President, Greater China Market, said Innolux Corp is the most aggressive Ultra HD panel maker at this point, as it is developing a full line-up of panels in the 35- to 85-inch range.

“Despite this, 4K×2K panel manufacturers’ shipments are primarily focused on 50″, 55″/58”, and 65″ sizes, which are expected to have the highest volume shipments, especially in China,” said Hsieh. “4K×2K LCD TV is the newest TV technology available, and in order for it to be successful, it will be critical for the supply chain to avoid falling behind when making their purchases, even if content is still scarce. Some panel makers are also working with design houses to develop circuits built into the panel, to enable up-scaling of HD to 4K×2K content. This will help to drive the 4K×2K LCD TV market and encourage panel makers, especially those that have already started design-in work with TV brands in 2013.”

It all sounds a tad optimistic. New chips and upscaling are no substitute for 4K content, which is simply not around and it won’t be readily available for years to come.