The below is a compilation of recent announcements and events occurring during February 2005. Coverage includes components such as battery, ICs, software, as well as mobile device player movements in China, Japan, Korea and Taiwan. Also presented are new rollouts probing the newer niches of the mobile device space.

Batteries

KDDI

KDDI has started to develop fuel cells for use in mobile phones through collaborative ties with Toshiba and Hitachi. Such charger will be capable of continuously generating 200 milliamperes of current for ten to 15 hours on a single fuel cartridge. KDDI hopes to come up with the prototype of the charger by the end of 2005.

Sony

Sony has developed a new battery that features a higher density of lithium ions and therefore has about 30% greater capacity than its current models. Dubbed "Nexelion", the battery will be first adopted in Sony's camcorders, allowing users to record for 230 minutes -- 40 minutes longer than conventional batteries. The Nexelion can also be charged in half the time.

Sony plans to produce the battery in a tube shape like that of a dry battery at the initial stage and then add rectangular models for use in mobile phones and laptop PCs. The Nexelion will be used in Sony's own devices for the time being.

Toshiba

Toshiba's DMFC (Direct Methanol Fuel Cell) was certified in the 2006 edition of Guinness World Records as the world's smallest. The model is 22 millimeters wide, 56 mm long, and 4.5 mm high. It can produce 100 milliwatts of power and power a small music player for up to 20 hours on a single two cubic centimeter charge of highly concentrated methanol. Commercial samples of the DMFC for handheld electronic devices will be introduced later in 2005.

IC

Broadcom

Broadcom unveiled a new multimedia processor, called VideoCore, optimized for mobile phones. The processor is capable of demonstrating high-quality video on 2" color LCD (Liquid Crystal Display) screens that capture 4MP (Mega Pixel) images and provide MPEG-4 encoding and decoding functionality for video recording and playback.

Fujitsu

Fujitsu has developed a low-power AD (Analog to-Digital) converter that will help prolong viewing of terrestrial digital broadcasting on mobile phones. Adopting a delta-sigma modulator, the new converter can greatly reduce power consumption of embedded tuners to 30mW, approximately one-sixth to one-third less than the current levels. The integration of the converter with OFDM (Orthogonal Frequency Division Multiplexing) demodulator onto a single chip is expected to facilitate development of more compact handsets.

NEC

NEC and TTP Communications will be working together to develop dual mode chips that incorporate TTPCom's EDGE (Enhanced Data rates for Global Evolution)/GPRS/GSM silicon and software architecture. Integration of TTPCom's solutions is expected to help NEC accelerate delivery schedule for the chips and further address the growing global demand for dual-mode mobile devices.

Samsung

Samsung Electronics has begun mass production of the world's largest-capacity MCP (Multi Chip Package). The new 2.5Gb MCP consists of four dies -- a stack of two 1Gb NAND flash memory chips and two 256Mb Mobile DRAMs (Dynamic Random-Access Memory) and operates on only 1.8 volts. It is also capable of storing up to four hours of QVGA (Quarter Video Graphics Array) video data.

TI

TI has developed a single chipset that contains a modem and a processor on a single piece of silicon, replacing two components with one. Adopting new technology called OMAP-Vox, the all-in-one chip is capable of running video at 30 frames per second on high-end mobile phones and will thus help reduce their production cost. The company said handset makers are now testing the chip, primarily developed in TI's development center in Bangalore, India.

Vodafone

Vodafone Japan has inked an agreement with FeliCa Networks to jointly introduce IC card technology in mobile phones. The vendor is looking to roll out IC chip embedded handsets in the Japanese market by October 2005 with an objective of shipping over one million of such models.

Software

PalmSource has completed the acquisition of China MobileSoft for US$16 million. PalmSource issued approximately 1.6 million shares of common stock in exchange for the outstanding equity and rights to acquire equity in China MobileSoft. Through the Chinese company, PalmSource is expected to provide software to a much broader handset and mobile device market. 

Samsung

Samsung said it will partner with operating system suppliers such as Trolltech, Infineon Technologies, Emuzed to develop the first Linux-based UMTS mobile phone. They have created a Linux-based reference platform for Smartphones running on EDGE and UMTS networks.

Devices

Ningbo Bird

Ningbo Bird has unveiled China's first fingerprint identification phone, which guarantees security for Internet-based transactions and thus opens up a new channel for shopping or banking on-line. The phone was jointly developed by Ningbo Bird, the Chinese Academy of Sciences, and Beijing-based Digital Fingerpass Technology.

NTT DoCoMo

NTT DoCoMo announced it will release new lower-priced 3G mobile phones to drive for wider adoption of 3G services. The new 700i series are likely to cost 10,000 Yen (US$94.8; US$1=105.5 Yen) less than current 3G handsets, and will lack only e-money functionality. However, industry players believe such move will lead to a price war and further erode profits of handset makers.

Sony Ericsson

Sony Ericsson announced at the 3GSM World Conference that in 2006 it will roll out a digital Walkman phone compatible with the most popular digital music file formats and services.  

 T-Mobile

T-Mobile announced it will roll out the world's first 3G PDA (Personal Digital Assistant) Phone in the second half of 2005.  The model, named MDA IV, not only runs on GSM (Global System for Mobile Communications), GPRS (General Packet Radio Service), Bluetooth and Wi-Fi standards, but also support the WCDMA (Wideband Code Division Multiple Access)-based 3G. The MDA IV is also the first UMTS (Universal Mobile Telecommunications Service)-compatible PDA Phone based on Windows Mobile platform. Taiwanese maker HTC is believed to be the maker of the MDA IV.

Device Frontiers

Compal-C

Compal-C and chip supplier SiRF jointly announced that they have developed the world's first GSM/GPRS-compliant AGPS (Assisted Global Positioning System) mobile phone. The AGPS technology can first identify a handset user's approximate location via a GSM base station and then pinpoint the exact location via a GPS satellite, further reducing the positioning time.

LG Electronics

LG Electronics has developed the world's first PTV (Push-to-View) mobile phone, which allows a user to send real-time moving images to more than one recipient at the same time. The Korean company said it is gearing up for commercialization of PTV services for major WCDMA operators and marking activities of this video conferring phone will commence at early as July 2005.

NTT

NTT (Nippon Telegraph & Telephone) has finalized the prototype of a small data terminal that uses the human body a conduit of signal transmission. Without the need to be in contact with the skin, the device can convert data into signals that travel on a faint electric field and propagate along the body surface. One of likely applications is that marketing personnel can transmit data to a mobile phone from products touched by the handset user. 

NTT plans to come up with a practical version of the leading technology in 2006. If massed produced in the future, the device is expected to cost approximately 2,000 (US$19) to 3,000 Yen (US$28.4).

Omron

Omron has developed a facial recognition system that can identify mobile phone users in approximately one second via their handsets.The built-in software matches a mobile phone photo with a pre-registered picture to compare as many as 80 facial features. The system, with an accuracy rate of over 99%, works by processing one-thirtieth the data volume required in traditional facial recognition systems.

Company Strategy

BenQ

To accommodate its drive for 3G adoption, BenQ has signed a commercial CDMA subscriber unit and modem card license agreement with Qualcomm. Under the terms, Qualcomm has granted BenQ a patent license to develop, manufacture, and sell WCDMA, TD-SCDMA (Time Division Synchronous Code Division Multiple Access), cdmaOne (IS-95), and CDMA2000 subscriber units as well as WCDMA and TD-SCDMA modem card devices.

China Unicom

China Unicom released value-line handset orders to several Chinese CDMA handset makers, such as Kyocera, ZTE, Hisense, and Daxian, setting a departure from the company's previous strategy of placing high-end orders. These makers are required to produce an aggregate volume of 300 million handsets aimed to retail at 800 RMB (US$96.7; US$1=8.3 RMB). 

Foxconn

It has been reported that Foxconn is planning to acquire Chi Mei Communications to draw on its handset design capabilities. The strategic move is part of Foxconn's strategy to grow by acquisition and further beef up its handset business. However, the deal has yet to be confirmed.  

Gigabyte

Gigabyte Communications, a handset business arm of first-tier motherboard maker Gigabyte, will announce its brand at Cebit in March 2005. The first shipment is scheduled to start by the second quarter of 2005.

Microsoft

Microsoft announced in February that it will forge a cooperative link with Flextronics to market high-specification mobile phones running Windows Mobile. The new "Peabody" phone platform serves as a blueprint on which new models can be designed at customers' request, thus enabling handset makers to cut down cost and production time.  

NEC

NEC said it is planning to invest approximately US$24.2 million to US$36.2 million in mobile phone advertising in China in 2005. The figure triples the investment NEC made in 2004, demonstrating that the vendor is showing greater interest in the potential of China's 3G market.  

Nokia

Nokia announced it has forged cooperation with Microsoft and Loudeye, a provider of music download service in the US. Their alliance will enable users to download songs and ring-tones to Nokia handsets equipped with Microsoft's digital music-playing software.

Nokia also plans to adopt some of Microsoft technology that will allow users to synchronize their e-mail and address books between high-end Nokia handsets and corporate PCs running Microsoft's software.

These moves are considered significant in that they represents a significant departure from Nokia's traditional strategy of preventing Microsoft from expanding presence in the mobile phone software market.

Sony

Sony announced that it will soon stop manufacturing its Clie PDA (Personal Digital Assistant) for the Japanese market in July 2005, citing that the PDA market has been increasingly eroded as more high-specification mobile phones become available. Sony decided last year that it would not introduce new Clie models in the US market.  

T3G

T3G Technology completed its third round of financing in early February, adding Motorola as a key investor. The Chinese company, founded to promote the TD-SCDMA standard, declined to reveal the amount of the investment.

Shipment and Order Awards

China

Customs in Shenzhen reported that approximately 20 million handsets were exported from Shenzhen during 2004, reaching an export value of nearly US$2 billion. The high volume is partly due to the fact that brand-name vendors such as Philips and Samsung were increasingly shifting production capacity to this region. Also, looking to leverage the better industry environment, Chinese handset makers such as ZTE and Hwa Wei pumped up their handset investment.   

Compal

Compal plans to reach a handset shipment volume of 4.2 million units during 2005. The company is also looking to ship 3G handsets in the second half of 2005, targeting at 500,000 units. 

Japan

According to the Japan Electronics and Information Industries Association, the country's domestic handset shipment dwindled 14.9% to 43.19 million units in 2004, marking its first yearly drop in two years. The association attributed the downturn partly to the near-saturated mobile phone market, which now has more than 85 million subscribers. Another factor is a weakening replacement demand in Japan.

Motorola

An initiative organized by the GSM Association along with regional operators such as Telefonica Moviles, Turkcell, SingTel, and Telenor has awarded Motorola the bid to develop a low-end handset for emerging markets. According to the agreement, Motorola will ship a minimum of two million of its sub-US$40 handset, the C115, to operators in order to address the growing demand in emerging markets. The second such tender will be organized later this quarter.

Nokia

Nokia is expected to supply custom designed mobile phones to China Mobile in attempts to forge a closer cooperative link with the operator and further strengthen its market share in China. Delivery of the 6102 is planned for second half of 2005, marking the first time Nokia has offered a customized design to a single operator.

Macroenvironmental

China

China's NDRC (National Development and Reform Commission) announced that Chinese mobile phone equipment makers will now only need its approval to obtain production licenses, relegating the MII (Ministry of Information Industry) to an advisory role. According to new regulations, companies applying for licenses to manufacture handsets must have over 200 million RMB (US$24.1 million) worth of registered assets, while those applying for licenses to produce wireless telecom system equipment must have over 300 million RMB (US$36.2 million) worth of registered assets. Applicants are also required to be involved in handset business for at least three years.

The new rules cover all switching equipment, base

station equipment and handsets that are based on GSM, CDMA, CDMA2000 and TD-SCDMA standards.

So far, companies such as Ningbo, AUX Group, Gionee, Skyworth, Huawei, and Sichuan Changhong Electric have already filed applications with the NDRC.

The NDRC also forecast that Chinese production capacity will grow from 300 million handsets in 2004 to 500 million units in 2005.