11-14: Alibaba Group processing CNY120.7B worth of sales for 2016 Singles’ Day sales; JD.com has disclosed that total sales of 3C products made from the shopping event exceeded 42.5M on the Singles’ Day; etc.

Chipset

Apple has replaced the legacy USB ports with Thunderbolt 3 ports. TheThunderbolt 3 capability inside of the entry-level 13” MacBook Pro is provided by an Intel JHL6540 Thunderbolt 3 controller. Former Intel PC chief Kirk Skaugen has indicated that Intel has a history of intelligent integration, when Intel integrates they add a little bit to their ASP, they give a little back to their OEM, and to the end user—its Thunderbolt controllers are USD6.45~8.55, and with integration it allows Intel to raise its Core processor ASP by USD2~3. (CN Beta, Motley Fool)

intel-thunderbolt-3

Taiwan-based IC design houses, including MediaTek, FocalTech Systems and Global Mixed-mode Technology (GMT), are to see their shipments gain a boost in 2017 due to increasing orders from China-based smartphone vendors, particularly OPPO and vivo, according to Digitimes. (Digitimes, press)

digitimes-taiwan-ic-oppo-vivo-2017

Siemens AG, Europe’s biggest industrial group, is nearing a deal to buy Mentor Graphics Corp, which makes software for designing semiconductors, for USD4.5B~4.6B in cash. (CN Beta, Business Insider)

Touch Panel

Isaiah Research projects Apple iPhone 7 series sell-in shipment forecast to reach 30~32M. LGD still leads the panel supply of iPhone 7 series while JDI and Sharp may keep minimizing the allocation gap for the supply. (Isaiah Research report)

isaiah-iphone-7-panel-allocation-shipments-1q17

IHS has revised 2016 shipment forecast of touch module from 1,905M in 2Q16 to 1,890M due to declining tablet PC and smartwatch applications. For the coming years, IHS raised forecast due to better-than-expected mobile phone replacement demand in emerging markets. The mobile phone forecast was slightly revised from 1,522.9M to 1,523.4M. (IHS Markit report)

ihs-touch-module-shipment-2013-2020

Increase price of TV panel has first impact the Internet TV market, which focuses mainly on low-profit products. Based on the international panel market price on 19 Oct. 2016, 40” 1080P full HD TV LCD panel price has increased USD17 to USD135. Panel is more than 65% of the cost of a TV, and this increase range has caused a lot of pressure to Internet TV vendors. (CN Beta, 163, IT Times, press)

ihs-panel-supply-demand-2016

Camera

OmniVision Technologies has announced 4 new smartphone sensors—20MP OV20880 and OV20880-4C; 16MP OV16885 and OV16885-4C—capable of capturing more dynamic range and less noise than ever before. The 4 sensors use OmniVision’s 2nd-generation PureCel Plus and PureCel Plus-S pixel technologies to achieve the increase in performance. (Digital Trends, PR Newswire, DP Review, Yahoo, CN Beta)

omnivision-image-sensor

Memory

3D flash memory has gradually become the mainstream of new generation of memory, with each vendor actively has entered the 3D flash memory market. Module makers ADATA Technology and Transcend are launching their 3D Flash SSD to compete in the market. (TechNews, China Times, Etime)
Yangtze River Storage Technology (YRST), Fujian Jin Hua Integrated Circuit, and a joint venture set up by GigaDevice Semiconductor and the Hefei city government of China’s Anhui province, are all gearing up to compete in the DRAM field and targeting to become China’s largest DRAM producer, according to Digitimes. (Digitimes, press, China Flash)

Smartphones

Samsung Electronics Vice Chairman Lee Jae-yong, Hyundai Motor Chairman Chung Mong-koo and LG Group Chairman Koo Bon-moo. They may be summoned or face written questioning in regards to scandal surrounding Choi Soon-sil, a confidant of President Park Geun-hye. The prosecution will investigate whether President Park forced them to provide money to the foundations and whether they asked for business favors in return. (CN Beta, Money Control, Korea Times)
According to CCTV, the state quality inspection administration has conducted a large-scale consumer products inspection, and from the 2nd time inspection in Shenzhen market, there are more than 1000 elderly phone do not pass the standard requirements. In addition to the 1st time inspection, there are nearly 3000 elderly phones from 5 brands do not pass the test. (CN Beta, Tencent, 21CN)

elderly-phone-problems

Gartner’s 2016 survey in the U.S., the U.K. and Australia (with more than 9500 respondents) shows that 20% users now owns either a hybrid or a phablet. This is supported by data from the same survey that shows that 62% of respondents bought a hybrid in the last 2 years and 74% bought 1 phablet in the same time frame. (Gartner report)

gartner-personal-own-and-use-devices-2016

Gartner’s 2016 survey with more than 9500 respondents in US, UK and AUS show that the top reason for buying a hybrid is the two-in-one option (39%), while for phablets it is the screen size (45%). But for both form factors, it was the urge to “try something new” that was mentioned in 2nd place —making it a “want” rather than a “need” purchase. (Gartner report)

gartner-2016-purchase-reasons

Taiwan major technology firms, a gauge of global electronics demand, saw falling revenues for the 2nd consecutive month in Oct. 2016 compared with a year ago mainly due to a delay of Apple’s new MacBook Pro and waning sales of 4.7” iPhone 7. Sales of 12 out of 19 Taiwanese IT companies on the Nikkei Asian Review’s watchlist dropped YoY, with 4 of them posting double-digit declines. On average, their revenue tumbled 6.36% from a year ago. (TechNews, Asia Nikkei, Sohu)
Apple contractors assemble iPhones in 7 factories—6 in China and 1 in Brazil. If the phones were assembled in the U.S. but Apple still sourced components globally, it would be USD30~40 more expensive than now. If the components are sourced domestically, the price could go up USD60~100. (TechNews, Technology Review, article)

technology-review-made-in-us-iphone-scenarios

Tablets / PCs

The MacBook Pro may have found success straight out of the starting blocks, but it is unlikely to change Apple’s focus. Its future does not feel like it is focused on the classic laptop form and macOS, but on sealed Pro tablets running iOS. The mobile market is where Apple’s strength lies—Apple takes over 100% of the market’s profits.  (Forbes, CN Beta)

Wearables

IMAX Corporation and IMAX China Holding, Inc. announced that together, the Companies have completed the first phase of a USD50M VR fund between IMAX and other strategic investors to help finance the creation of at least 25 interactive VR content experiences over the next three years for use across all VR platforms including in IMAX VR centres. (Engadget, Gamasutra, Leiphone, PR Newswire, 91.com
Gartner’s 2016 Personal Technologies Study with 9592 online respondents in US, UK and AUS, found out that of the respondents who are not planning to buy a smartwatch within a year, 54% responded that they are not useful. Similarly for fitness tracker, 56% responded they are not useful. (Gartner report)

gartner-smartwatch-purchase-intention-2016 gartner-smartwatch-purchase-intention-bands-2016

According to Gartner’s Personal Technologies Study, out of 9592 online respondents in UK, US and AUS, most people (85%) have never used HMDs. Among people who know what VR glasses are, 6% are interested in purchasing one within the next 12 months. An additional 6% are interested in or open to buying a VR HMD, but will wait. The majority, 78%, have no plans to buy a VR HMD. (Gartner report)

gartner-arvr-usage-purchase-intention-2016

CEO of an online optical company Eye Buy Direct, Roy Hessel, indicates that the next great wave of tech innovation may come in the form of the one of the most intimate of all wearables: contact lenses. Google, Samsung, Sony and other tech companies have patented smart contact lenses technologies. (CN Beta, Channel News, Venture Beat)

Internet of Things

Google has been busy acquiring a number of companies on the journey of artificial intelligence (AI) development. Since Google established AI department in 2011, more than 100 teams have been using AI, including Google Search, Google Now, Gmail, etc. Additionally they are building AI into their Android operating system. (PopSci, CN Beta, Leiphone)

google-ai-acquisition

Mid-to-small home appliance companies in Foshan, Zhongshan area have notified their channel dealers that they will readjust their prices. A number of home appliances makers in China have already mentioned the increase of costs. (CN Beta, Sina, Hexun)

sina-home-appliance-material-prices-2016

BMW wants to boost sales of electric cars by 2/3 in 2017 to 100K vehicles as the luxury automaker is offering more battery-powered models, citing CEO Harald Krueger. BMW expects to increase its deliveries of fully electric and hybrid vehicles to around 60K units in 2016. Sales of battery-powered BMW models have totalled about 100K cars since 2013. (CN Beta, Channel News Asia, Auto News)
Weak consumer drone industry and falling prices drive startups to shift their focus to specialized business applications. 3D Robotics, a drone startup that raised more than USD125M, has seen its consumer business all but crash. It has recently unveiled a new commercial strategy, announcing a camera-equipped drone with imaging software designed for construction companies. (CN Beta, CRN, SF Chronicle)

3drobotics

Samsung Electronics said it would buy U.S. auto parts supplier Harman International Industries for USD8B in an all-cash deal. Samsung says the acquisition will give it “a significant presence in the large and rapidly growing market for connect technologies, particularly automotive electronics”, which Samsung estimates will be a USD100B market by 2025. (CN Beta, Barron’s, Samsung, Reuters)

Economics

Alibaba Group smashed another Singles’ Day record in 2016, processing CNY120.7B (USD17.7B) worth of sales. (Barron’s, Huxiu, South Money, 163)

alibaba-cny120-7b

JD.com has disclosed that total sales of 3C products made from the shopping event exceeded 42.5M on the Singles’ Day (Double 11, 1~11 Nov. 2016) shopping event—4.34M mobile phones, 17.28M computer and office accessories, 20.88M digital / smart products, 5M tablets. (Gizmo China, 163, iHeima)

jd-11-11

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