Developing Business with Greater China Handset vendors

Transcription

Developing Business
with Greater China
Handset vendors
Karl J. Weaver
Freescale Semiconductor Confidential Proprietary. Freescale™ and the Freescale logo are trademarks of Freescale Semiconductor, Inc.
All other product or service names are the property of their respective owners. © Freescale Semiconductor, Inc. 2004
Greater China integration strategy
“Greater China” is leading in
technology for the mobile device
market.
•Taiwan - source for R&D and
finances.
• China – assembly & distribution
•1/3 of all cell phones assembled in
China
•50% of all mobile devices designed
in Taiwan
Slide 2
A Global Sourcing Taxonomy
OEM – Original
Equipment Manufacturer
The company behind the “brand name” of a product (like Motorola, Samsung, Sony,
Nokia). OEMs designed, manufactured, marketed and provided customer support to
their products. However, in many cases now, the OEM only owns the design (or
design decision), and all manufacturing is outsourced to contract manufacturers.
ODM- Original Design Manufacturer
A company developing and manufacturing electronics that are ultimately sold as
branded products by OEMs, such as Dell. ODMs differ from EMS providers in that
they own intellectual property in addition to offering manufacturing services. ODM
designs account for more than one-half of all notebook computers and also most
three-quarters of desktop motherboard designs sold world-wide. Largely based in
Taiwan with some in South Korea, ODM companies include BenQ, Compal, Arima,
Quanta, Seowon, and Telson.
OBM – Own Brand Manufacturer
Companies that started out handling original design and original equipment and
manufacturing for the big Western handset manufacturers and have begin to build
their own proprietary brands, which is the only way for mostly high-tech industries
in Taiwan or South Korea to survive in an economy where manufacturing is flooding
to PR China.
Slide 3
A Global Sourcing Taxonomy (Continued)
IDH – Independent Design House
Small and mid-tier OEMs looking to build products in Asia in smaller production
quantities than would be attractive to EMS providers or Taiwanese original design
manufacturers are increasingly turning to independent design houses. More than just
engineers for hire, these design firms are in effect becoming virtual ODMs-using
relationships they've established with manufacturers to create best-in-class services
that give customers both full support and flexibility.
IDM – Integrated Device Manufacturer
A semiconductor company that not only designs its own chips, but manufactures
them as well. IDMs are companies like Intel, AMD, Freescale, ST Micro, Infineon,
Toshiba, NEC, among others. In contrast to IDMs, there are so called “fabless”
semiconductor companies that concentrate exclusively on semiconductor design and
contract out all their production.
EMS – Electronic Manufacturing Services
The company that performs manufacturing on behalf of an OEM. Typically, the EMS
provider does not own any intellectual property, branding or distribution rights to the
end-product. EMS companies instead invest in their manufacturing capabilities to
offer contract production services to OEMs. Examples EMS companies would be are
Flextronics, Solectron and Celestica.
Slide 4
Where is the market?
The market for wireless convergence will be mainly driven by
higher-end cell phone manufacturers and supported by the large
carriers in Asia.
In the Greater Chinese markets, there are at least 10 local
mainland Chinese handset manufacturers that have designed 3G
phones, with the cooperation of the Taiwanese, or have procured
3G phone kits directly from the Taiwanese ODMs.
All the Chinese handset vendors want to migrate up to mid/upper
tier 3G handsets.
In China, I confirm Huawei, Amoisonic, ZTE, Ningbo have
announced and DEMOed 3G handsets based on WCDMA. DBTel
(Taiwanese), Samsung, Amoisonic and Quanta (Taiwan) have
designed 3G handsets based on TD-SCDMA.
Slide 5
Where is the market?
3G in China will reshuffle the handset market, as licensing
requirements for 3G handsets are likely to be lifted, leading to the
entry of new players like Huawei and ZTE. They have stronger inhouse R&D.
Mobile phones are becoming customized consumer products.
OEMs are under pressure to produce low-cost, feature-rich
phones that address demands of a growing market.
The top 8 domestic mobile handset companies in China
are
Ningbo Brid, Huawei, ZTE,
Konka,
Amoisonic, TCL Haier Group
Slide 6
UTStarcom,
China’s Handset Manufacturing Hub in
Yangtze River Delta Region
Finest resources for handset
manufacturing environment
•Efficient logistics to sea/air
links
•Rich water supply
•Skilled Univ.-educated
engineering/professional
labor
•Magnet for multinational
handset R&D, Production and
assembly
Nokia = R&D, Motorola =
Production, UT Starcom =HQ,
Toshiba (Manufac), Foxcomm,
BenQ, Arima, Compal, Eastcom,
Ningbo Bird, Contract Manufac =
Flextronics, Solectron
Slide 7
China’s Mobile Phone Vendors
Company
Alcatel
Amoisonic
Capital Group
Chabridge
CEC
Dalian Daxian
Datang Telecom
DBTel
Eastcom
Ericsson Beijing
Haier
Hisense
Huawei
Kejian
Konka
LangChao
Legend/Xoceco
Mitsubishi Beijing
Motorola China
NEC Wuhan
Ningbo Bird
Standard
GSM
GSM/GPRS
GSM/CDMA
GSM
GSM/GPRS, CDMA
CDMA
CDMA
GSM
GSM/GPRS, CDMA
GSM
GSM, CDMA
GSM, CDMA
WCDMA
GSM, CDMA
GSM/GPRS, CDMA
CDMA
GSM/GPRS, CDMA
GSM
GSM, CDMA
GSM
GSM/GPRS, CDMA
Company
Nokia Beijing
Nokia Dongguan
Panasonic Beijing
Panda Elec
Philips
Putian
Samsung Elec.
Sanyo
Shenzhen SED
Siemens
Sony Beijing
Soutec
TCL
Telsda
Top Group
Zhenhua
ZTE
Slide 8
Standard
GSM
GSM
GSM
GSM
GSM
GSM, CDMA
GSM, CDMA
CDMA
GSM
GSM
GSM
GSM
GSM/GPRS, CDMA
GSM
GSM
CDMA
GSM/GPRS, CDMA,
PCS, WCDMA
China Handset GSM to CDMA Percentage Comparison
TCL
Samsung
GSM/GPRS
Bar 2
CDMA
Ericsson PTIC
Ningbo Bird
Siemens
Other
Nokia
Motorola
0%
20%
40%
60%
Slide 9
80%
100%
China’s top 10 handset sales, market share
Handset Vendor
Sales
Market shares
Motorola
4,079.8
12.05%
Nokia
4,032.2
11.91%
Samsung Electronics
3,342.8
9.87%
Ningbo Bird
3,239.8
9.57%
TCL Mobile
2,765.0
8.16%
Konka
1,895.4
5.60%
Dbtel Technology
1,848.6
5.46%
Amoi Electronics
1,317.5
3.89%
Guangzhou Soutec Technology
1,214.2
3.59%
Sony Ericsson
1,159.2
3.42%
Others
8,972.1
26.49%
Total
33,866.6
100%
Source: CICT, compiled by DigiTimes, September, 2004.
Slide 10
(In Thousands of Units)
Global Handset Outsourcing from OEMs
Handset
OEM
Tier 1 Partner
Tier 2 Partner
OEM
Units
EMS%
ODM%
Nokia
Elcoteq
Celestica, Jabil, Solectron, Teson,
Hon Hai
165
15
0
Motorola
Flextronics, BenQ**,
Pantech
Solectron, Celestica, Compal**,
Telson
65
10
50
Samsung
N/A
N/A
65
0
0
SonyEricsson
Flextronics
Elcoteq, Arima, GVC-Lite-on
30
40
60
Siemens
Flextronics, SanminaSCI
Quanta
28
30
30
LGE
N/A
N/A
25
0
0
Panasonic
N/A
Celestica
16
5
20
NEC
N/A
Celestica, BenQ, Arima
14
5
15
Mitsubishi
N/A
Solectron
11
10
0
Kyocera
Solectron
N/A
10
30
0
Alcatel
Flextronics
GVC-Lite-on
4
40
60
TCL (China)
Alcatel
N/A
12
N/A
35
Others
N/A
N/A
28
10
70
**Motorola has stopped woerking with BenQ because they are changing into an OBM, Also Motorola
**
Slide 11
stopped using COMpal for Smart Phone ODM business in Taiwan
472 Million
Year 2004 mobile handset market share(Q3,04)
China's 2004 CDMA Handset Market
ZTE, 2.1
Eastcom,
2.8
Soutec,
3.6
Hisense,
3.8
Langchao
, 12.4
Samsung,
26.9
Sanyo,
2.1
Other, 5.5
Motorola,
40.8
Notes: Percentage is based on CDMA handset sales in China
(excluding exports). Other major brands include Daxian, Haier,
TCL, Konka, Eastcom and Ningbo Bird.
Motorola
Samsung
Langchao
Hisense
Soutec
Eastcom
ZTE
Sanyo
Other
China's 2004 GSM/GPRS Handset Market
Samsung
6%
Ericsson
PTIC
6%
Ningbo
Bird
7%
Siemens
8%
Other
30%
Slide 12
TCL
4%
Motorola
19%
Nokia
20%
Motorola
Nokia
Other
Siemens
Ningbo Bird
Ericsson PTIC
Samsung
TCL
Notes: Percentage is based on
GSM/GPRS handset sales in China
(excluding exports). Other major brands
include Konka, Haier, DBTel, AMoi,
Soutec,Panasonic, Panda, Eastcom and
Lenovo Source: Ministry for Information
Industry, Company Reports, CHinaNex
Septemer 2004
Chinese Handset OEM breakdown
Handset Designs & Product
Vendor Skills
Design Cycle
Cost
Comparison
Business Model
Ningbo Bird
NO handset design capabilities.
Does only form design. Buys
modules and designs on it.
Buys software from European
providers. Has R&D partnership
with Philips and Holly
Launched more than 20
modules in 2003
Scale: 9-10m. About a
third CKD sourced from
Taiwan (500k from
BenQ), Korea and Sagem
(1.5m).
Purely an OEM hopes to
export product beyond
Southeast Asia to France,
Italy and India.
Eastcom
Has a manufacturing JV with
Motorola for CDMA phones, and
Samsung for WCDMA phones
Does only form design. Has
R&D partnerships with DBTel
and Philips
Scale: 3m + 4m OEM for
Motorola. Buys modules
for own brand from
Pantech
Sells own brand in China
and manufacturers on
contract basis for
Motorola
Haier
CCT gets design from Sendo.
Design partnership with Philips
N/A
Scale 2m (domestic) + 2
m (export). Production
by CCT Telecom
and supplies Sendo in
the UK.
Kejian
Designs based on ADI chipset
fotr GSM. JV with Samsung for
CDMA
N/A
Scale 6-million Samsung
Kejian & Kejina
and supplies Sendo fotr
UK
Konka
GSM from BenQ. And
CDMA from Telson mainly
a socket assembler.
Wants to establish R&D
Building handsets on
Agere and Infineon
chipsets. Software from
Neclear
Scale: 3 m GSM and
1 m CDMA ASP of
US$100 to US$250
Appears to be
targeting the mid
market segment
Lenovo
Using TI chipset to design
handsets, no signicant
R&D
N/A
Scale 1 million
mainly secured
designs from Taiwan
N/A
Scale : 9-10 m
N/A
TCL
CDMA from Pantech.
Design syscle for chipset
Designs products based
model is 6 months,
on ADI chipsets and TTP
module based model take
Slide 13
Comm
software
1-3 months
Ningbo Bird
Ningbo Bird Co., Ltd. started in 1992 making pagers and rose steadily to
the second largest pager supplier in China (after Motorola). In 1999, the
company began handset design and production during the peak of
mobilecom market boom. A year later, Bird sold more handsets than all
other Chinese companies, and has remained a leader in sales during the
past three years surpassing archrivals likes Motorola and Nokia. According
to MII, Bird held 9.5% of GSM/GPRS handset market by June 2004 (15%
in 2003). Bird is a major force behind rising share of Chinese handset
brands that remained above 50% in mid-2004.
BIRD Company began to cooperate with SAGEM Ltd., France, and introduced advanced mobile phone
R&D technology to China. In the meantime, BIRD set up research platforms with top mobile phone
manufacturers, such as Broadcom, SEWON and so on. Therefore, BIRD owns top R&D ability in any
R&D field of mobile phone products in China, and the product portfolio covers the top-end, mid-range
and low-end markets.
Slide 14
http://www.chinabird.com, http://www.birdmobile.com.cn
Huawei Technologies
– First Chinese 3G handset vendor
Established in 1988, Huawei Technologies is a private high-tech enterprise which specializes in research
and development (R&D), production and marketing of communications equipment, and providing
customized network solutions for telecom carriers in different areas. Huawei's contracted sales in 2004
reached 5.58 billion USD, an increase of 45% year on year, among which 2.28 billion USD came from
international sales. Huawei's customers include China Telecom, China Mobile, China Netcom, China
Unicom as well as BT, NEUF, AIS, Telefonica, Telfort, SingTel, Hutchison Global Crossing, PCCW HKT,
SUNDAY, Etisalat (UAE), Telemar (Brazil) and Rostelecom (Russia). Currently Huawei provides telecom
products and solutions for over 270 operators worldwide and 22 of the world's top 50 operators are using
Huawei's products and solutions.
FutureWei is the North American subsidiary of
Huawei Technologies Co. Ltd.
(www.huawei.com), a global leading player of
telecommunications systems and network
solutions based in Shenzhen, China. Huawei
posted US$3.83 billion sales revenue in
2003and has products deployed in over 40
countries.
With a strong focus on network infrastructure,
FutureWei Technologies, Inc., designs, markets
and supports a wide range of advanced
telecommunication products to provide
customers with both carrier and enterprise
network solutions.
Slide 15
Huawei Technologies announced the
global launch of commercially readyfor-market UMTS devices at the 3G
World Congress & Exhibition in Hong
Kong. With the launch of the three
types of commercially marketable
series terminal UMTS products,
Huawei is the first producer of 3G
handset in China.
It is the second major 3G contract won by the
Huawei after inking a deal to build the 3G
network for Hong Kong mobile operator
Sunday, which was announced as the launch
partner for Huawei’s 3G handsets.
ZTE – Zhong Xing Electronics
China's ZTE to debut 3G handsets at 3GSM
Founded in 1985, ZTE Corporation has been listed as an A-Share company on Shenzhen Stock
Exchange since 1997. In December 2004, ZTE was successfully listed on the Main Board of The Stock
Exchange in Hong Kong, becoming the first Chinese company that held both A shares and H shares. ZTE
recorded the contract sales of approximately USD 4,111 million (RMB 34 billion) in 2004. In the field of
wireless products,
ZTE is capable of providing total network solutions in CDMA, GSM and PHS products. ZTE has become
the definite “Top Wireless Brand” in China. In China Unicom’s CDMA network construction project, ZTE’s
mainstream products were used in 18 provinces. To date, ZTE has been the only Chinese vendor with
complete package of independently developed base stations and switching systems with self-owned
brands.
Slide 16
Konka
Company profile
PHS handset
Found on May 21, 1980, Konka Group is China’s first Sino-foreign joint electronic enterprise. In
Aug 1991, Konka was restructured into a Sino-foreign public share-hold company, and on Mar 27,
1992, the company’s A-share and B-share come onto market in Shenzhen Stock Exchange.
Currently, the Group has a total capital of over RMB10billion, net capital of RMB4billion, and has
been listed as the country’s 300 most important enterprises. It is one of the companies mostly
supported by the Guangdong Province and the City of Shenzhen. And it is the first electronic
company in Guangdong Province and Shenzhen with business volume exceeding RMB10billion,
and comes top on the list of China’s 100 Best Electronic Enterprises for several consecutive
years.
In 1999, Konka successfully launched its first all-patent mobile phones, and passed authentification
conducted by the international authority of the GSM network. And in 2001, Konka obtained the
country's CDMA mobile phone production license. Konka ships a rich array of mobile phone
products covering high, middle and lower end of the market. The company continuously introduced
its C688, C699, C869, KC827, D108, R768, and R718 model from January to April of this year.
CDMA
Handset
Konka’s mobile phone’s market share has increased from last year’s 3% to
this year’s 7.74%, jumping to the list of top 3 of domestic brands, and top 5
of all brands. Konka has set a new target for mobile phone business. It is
estimated that the production and sales volume of this year will reach
6million, and that the domestic market share will hit 10% to become China’s
No1 mobile phone provider.
Slide 17
GSM
Handset
UTStarcom Profile
CDMA
UTStarcom is a Chinese company with
Handsets
headquarters for strategy in the USA but R&D,
manufacturing takes place in China. They
recently purchased Audiovox Communications.
PAS/PHS
They have Major penetration in China with
Handsets
activity in the telecommunication markets
around the world, such as Japan, India,
Vietnam, Taiwan, Thailand, Brazil, Mexico, and
Colombia
UTStarcom’s cellular requirements
Wireless Solutions:
VERY low cost 3G handset
MovingMedia 6000 - TD-CDMA
WCDMA Single mode only + Qualband in 2005-2006
MovingMedia 2000 - CDMA/CDMA 2000
PHS/WCDMA solutions support in the roadmap
UTStarcom PAS™ wireless access
Need basic features as 2.5G plus Voice/Audio Codec + Drivers
2M Pixels or above
network
Linux based OS, must be opened for self development
Bluetooth/WiFi such wireless connectivity must be available in future
PoC is the trend in China
Target to sell one of potential 3G licensees such as their existing customer China Telecom
(One of four potential 3G licensees in china)
Not limited to sell their 3G phone in oversea as UTStarcom is global and US based company
Need flexibility to change chipset components in particular PA
Sourcing 2nd 3G solutions in the market, but solutions availability is no. 1 in their plan
Bundled 3rd party solutions and licensing (One stop shopping model)
Open to further discussion, will issues NDA in place
Slide 18
WiFi
Handsets
Audiovox –
Wireless
PDA
phones
UTStarcom – Background & existing Projects
Two major operation in China (Hang Zhou and Shanghai)
Hang Zhou R&D on WiFi, PHS, CDMA & GSM
Shanghai R&D on 3G WCDMA handset only and now ~50 peoples mostly development on HW & SW
Shanghai R&D Center Handset Development Priority
1. WCDMA Single band 2100MHz only and GSM Dual Band
2. CDMA2000
3. PHS and WCDMA
3G Solutions on hand & Handset Status
Engaged by Qualcomm
Started 1st WCDMA feature phone development in mid 2004, target SA end of Nov 2004
What Solutions are currently provided by Qualcomm
Qualcomm provides 3 local engineers to support their development. Engineers also need to support the rest of
3G customers in Shanghai as well
Lack of FAE experience
No IDH support model
8-10 months development life-cycle model
4 pieces IC chipset solution – BB including 1 MCU & 2 DSP, 1 TX , 1 RX , 1 PWR management Unit
2 pieces PA – 1 GSM , 1 WCDMA
Proven reference design and documentation (UTStarcom appreciated)
Qualcomm Propriety OS
Part count of Qualcomm platform ~ 400
Bundled SW MP3/MPEG4 in DSP
AGPS available and integrated in the platform solution
Available Bluetooth API
2M Pixels in developing
CMOS camera in developing
Slide 19
Amoisonic
August 1981, Xiamen Solid Electronics Limited was founded in
Xiamen as the first Sino-foreign joint venture of the city; May 1997,
Amoisonic Electronics Company Limited was incorporated, with
Xiamen Solid as its main sponsor. June 4, 1997, "Amoisonic
Electronics" was officially listed in Shanghai Stock Exchange (SWAP
code: 600057). July 28, 2003 Amoisonic Electronics Company Limited
was re-registered as Amoi Electronics Company Limited, a part of our
Brand name re-engineering project. In year 2003, the sales turnover of
Amoi came up to RMB 6,817,000,000 (approx US$823,300,000) while
the net profit reached to RMB 614,000,000 (approx US$ 74,150,000).
In 2003, Amoi achieved continuous and sustainable growth in Mobile
Phone market and its PHS sale becomes one of top 3 of China.
Meanwhile Amoi has expanded its business to new areas and
developed its products of Notebook PC, flat panel TV and Mp3 player.
Year 2004, Amoi will focus on digital 3C field and plan to develop high
end Digital TV and Digital Camera. Also, Amoi will start its business in
automobile Electronics and Amoi Shanghai Institution was opened on
April 8th 2004, located in Shanghai Zhangjiang High-tech Zoon. It has
a 7,400 with an investment of 4.2Million US$( not including instrument
and research devices)
Slide 20
TCL Mobile Communications
A leading player in mobile communication industry in China, TCL
Mobile Communication Co., Ltd was set up in March 1999. It is a hightech enterprise engaged in the R&D, design, manufacturer, sales and
service in handset industry. It has since established a leading brand
presence in domestic markets, and business has expanded
considerably in all areas to support customer needs and the growth of
the telecommunications industry in China. Now it is one of the pillar
industries of the TCL Holding Co., Ltd. In 2002, the sales of TCL
mobile exceeded one billion US dollars, which enabled us to be
among the top three in China’s mobile phone market. In addition, TCL
became No.1 among China’s mobile phone manufacturers from then
on. By the the end of 2002, TCL had its business turnover increased
by 263.3 times during the past 3 fiscal years, ranking first in DTT Asia
Pacific Technology Fast 500. In April 2004, in order to compete
effectively in the international market, TCL associated with ALCATEL
to create a joint venture by jointing respective strengths in the mobile
R&D, sales, manufacture and service.
Slide 21
Haier Group
Haier Group is China's ambassador to appliance stores all over the world.
Formerly Qingdao Refrigerator Plant, the company climbed from the verge of
bankruptcy to establish itself as a world-renowned brand. China's largest
appliance maker manufactures refrigerators and freezers, air conditioners,
dishwashers, microwaves, televisions, vacuums, mobile phones, computers,
and more. Haier Group exports goods to more than 160 countries. CEO
Zhang Ruimin took the reins of the government-controlled company in 1984.
His first act as CEO was to smash 76 poor-quality refrigerators with a hammer
to drive home his intentions to improve product quality.
Haier America is the US sales and marketing arm of Chinese home
appliance and consumer electronics giant Haier Group. Haier Group makes
refrigerators, freezers, air conditioners, dishwashers, laundry machines, and
small appliances, as well as mobile phones and plasma and flat screen
televisions. Its newest products are wine cellars and beer dispensers. Its
products are sold through retailers such as Fortunoff, Wal-mart, Bed Bath &
Beyond, Home Depot, Lowe's, and Target. The division was founded in 1999
and has operations in New York and South Carolina. Haier America’s mobile
handset division is located in San Diego
Revenue (2005):
229.70 M
Slide 22
Employees (2005):
105
Web URL：
http://china.haier.com
Address：Haier
Industrial Park, Haier
Road, Qingdao,
Shandong, P.R.China
Postcode：266101
Tel：86532-8938888
Fax：86532-8938666
Evolution of the Handset Industry
OEM handset companies
China handset
Major cell phone
vendors are now
Top Taiwan R&D teams for ODM,
manufacturers no longer OBM of cell phone, smart phone,
using domestic
do their own production PDA mobile devices. Most Taiwan
EMS services and
or design
manufacturers now mass produce in
IHD’s to build up
China.
3G handsets
Evolution of today’s multimedia handset: OEM’s engaged Taiwanese contract
manufacturing and Electronic Manufacturing Services, who morphed into ODMs to
design and produce cell phones in Taiwan and now the production has moved into
China and Taiwan ODM are trying to build themselves into OBMs.
Slide 23
Taiwan ODM/OBM
Handset Shipments: 2004~05
(In thousands
of units)
2004
2005f
2005 major customers*
Arima
Communication
10,000-11,000
12,000
Sony Ericsson (J200, K300), NEC, Toshiba
Asustek Computer
250
2,000 (1,000 from ASMobile)
-
BenQ
15,000
10,000** (4,000 from ODM
segment and 6,000 from ownbrand)
Nokia (3128, entry-level models)
Chi Mei
Communication
Systems (CMCS)
1,500-2,000
2,000-2,500
Motorola (MPx220, one EDGE-based model)
Compal
Communications
8,500
15,000
Motorola (C157, C115, C155 and V171),
Panasonic, Alcatel
Compal Electronics
2,500
2,500
Motorola (MPx)
Darts Technologies
1,200
1,500-2,000
Hitachi, LG Electronics (LGE), NEC, label deals in
China and Southeast Asia
Dbtel Technology
4.000 (3,450 in first three quarters)
4,500-5,500
Panasonic, Hyundai Mobile
High Tech Computer
(HTC)
2,000 (1,500 from smartphone and
PDA-phone segment)
4,000**
Europe- and US-based telecom carriers (mmO2,
Orange, PalmOne, T-Mobile, AT&T Wireless)
Inventec Appliances
3,000-3,500 (2,000 PHS phones and
1,000-1,500 GSM/GPRS phones)
5,000-6,500** (1,500-2,000 from
ODM segment)
Label deals in China, Philips
Lite-On Technology
5,000
7,000-8,000
Alcatel, LGE, Nokia, Siemens
Quanta Computer
5,500
7,000-8,000
Siemens, Philips, Panasonic (2-4 models)
*Compiled from market sources
**DigiTimes estimate
Sources: company sources, compiled by
DigiTimes, Jan 2005.
*Compiled from market sources
**DigiTimes estimate
Sources: company sources, compiled by DigiTimes, Jan 2005.
Slide 24
Compal Communications
ODM Vendor
Compal Electronics
Compal has a high level of
Established in 1984, Compal Electronics was a reputation of
customer concentration, with
its top five clients accounting
producing high product quality and flexibility to design detail,in
for 77.1% of its consolidated
response to market trends. In 2003, its total annual revenue has revenue in 2004, up from
reached US 4.713 billion dollars and its worldwide workforce over 72% in 2003. The company's
product concentration is also
10,000. Compal has founded plenty of customer service branches high, with notebook PC
systems accounting for about
in Taiwan, China, South Korea, the U.S., and the U.K. which
73% of the company's
provide customers with prompt and flexible services.
consolidated revenue in 2004.
Compal produces PDA products, and with Wireless products, it
produces CDMA handsets, broadening the scope of its alreadyconsiderable range of information and communications products.
Compal merged Palmax on July 2001, to form PMCC Business
Unit to produce PDA , GPRS , UMTS and CDMA handsets, for
integrating other products of its sister companies: Compal
Communications, Vacom Wireless Inc. and Toppoly
Optoelectronics to broaden the scope and the range of its
information and communications products.
Top Export
Slide 25
Volume Q1, 2005
HONG KONG (Standard &
Poor's) April 18, 2005--Standard
& Poor's Ratings Services said
today that it had assigned its
'BBB-' issue rating to Compal
Electronics Inc.'s upcoming
US$300 million senior unsecured
convertible bond due 2010. The
proceeds will be used to
purchase raw materials
overseas. At the same time,
Standard & Poor's affirmed its
'BBB-' corporate credit rating on
the company. The outlook on the
corporate credit rating is stable.
Arima Communications Corp - ODM
Arima Group of Taiwan became famous for the
huge notebook computer orders it received in
July 2002 from HP-Compaq (HPQ). Arima has
many entities such as, Arima Communication
(mobile phone unit), Arima Computer (notebooks)
and Arima Display (mobile phones and PDA
LCD/LCM displays). Arima Group is the third
largest notebook computer contract
manufacturer/outsourcing partner in Taiwan.
Arima also has become a dominant player in
GPRS mobile phones, supplying to companies
such as Toshiba.
Arima Group, not merely a publicly-held OEM /
ODM company, has moved beyond to be the
leading integrated service provider headquartered
in Taoyuan, Taiwan, with the full-ranged
professions and core technologies to design,
manufacture, and deliver completely seamless
integrated customized solution!
Slide 26
GSM/GPRS,
handsets and
Smart Phones
Arima enables customers to meet
the needed supports of Arima
products, technologies, and
services with the worldwide
manufacturing, service and R&D
facilities in Taiwan, China, Europe,
Japan, and North America!
BenQ - OBM/ODM
About BenQ BenQ is the world's third-largest
manufacturer of LCD displays and is ranked among
the "Top 100 IT" companies in the world by Business
Week magazine. Formerly Acer Communications &
Multimedia, the name BenQ was adopted in
December 2001 to reflect BenQ's motto "Bringing
Enjoyment and Quality to Life." BenQ's product lines
are managed by four business groups: Imaging
Network (scanners, optical drives, digital cameras,
color laser printers), Digital Media (Digital Hub,
projectors, LCD TV's, MP3 players/USB flash drives,
plasma displays, multi-functional DVD), Network
Display (LCD monitors, CRT monitors, smart
displays) and Networking & Communications
(GSM/GPRS/CDMA/CDMA2000 mobile phones,
wireless LAN, home networking, SOHO routers,
smart phones, wireless PDAs, wireless modules).
Slide 27
Manufacturing Operations Taiwan,
Taoyuan : Communications, Display
China, Suzhou : Communications, Display,
Optoelectronics
Malaysia, Penang
Mexico, Mexicali
No. of Employees13,895 employees, over
30 nationalities (3/2005)
Taiwan (3,478), China (8,366), Malaysia
(1,096), Other regions (955)l R & D talents
(over 2,000)
Founded April 21, 1984 Paid-In CapitalUSD
681 Million Revenue2001: USD 2 Billion
2002: USD 3 Billion
2003: USD 3.6 Billion
2004: USD 5 Billion
They produce GSM/GPRS, CDMA
handsets and Smart phones, and
PDAs
Lite-ON
ODM/OBM
Lite-On Information Technology, a subsidiary of Lite-On Group, is a
worldwide supplier of computer peripherals, ranging from optical disc
solutions to digital consumer appliances for the PC and Consumer
392 Ruey Kuang Rd.,
Electronics industry .Lite-On IT is headquartered in Taipei, Taiwan. 22F,
Neihu, Taipei, 114, Taiwan
Phone: +886-02-8798-2888
The US division of Lite-On IT is based in Milpitas, California.
Fax: +886-02-8798-2868
In 1999, leveraging our core technology and intellectual resources, Lite-On
IT was established with a mission to provide superior products and
services to the global economy. Our technologies are methodically
designed and created to ensure optimal quality and performance and
thereby, offering greater user experiences. We have been regarded by the
PC community as one of the top manufacturers of optical disc drives,
ranking #1 and #2 worldwide.
In 2002, recognizing the rapid convergence between the computer and
consumer worlds, we expanded our portfolio and formed the Consumer
Electronics Division, focusing on the development of Digital Audio-Video
Appliances. Today, we continue to thrive and deliver innovative Consumer
Electronics Appliances that offer “DVD capabilities and So Much More” in a
set-top box for easy integration into existing home theater systems.
Slide 28
Key Numbers
Company TypePublic (Taiwan: LTC )
Fiscal Year-EndDecember2003 Sales (mil.)$2,922.31-Year Sales
Growth109.8%2003 Net Income (mil.)$213.51-Year Net Income
Growth45.6%2003 Employees3,4351-Year Employee Growth(4.9%)
Lite-On Technology
Corporation
22F, 392 Ruey Kuang Rd.,
Neihu
Taipei, 114, Taiwan
Phone: +886-02-8798-2888
Fax: +886-02-8798-2868
Primary US Office
Milpitas, California.
http://www.liteon.com
DBTel
ODM/OBM
DBTEL has 24 years experience in manufacturing
telecommunications products. DBTEL ' s research &
development team of 1200 and worldwide marketing team of
4000 tap their own tastes to develop unique designs that meet
the needs of consumers throughout the world.
DBTEL focuses on creating fashionable mobile devices
with revolutionary attitude, refined designs and compact
features.
We have developed a full product line with 30 unique designs.
DBTEL handsets are popular among consumers for their
functionality and competitive prices. DBTEL high-end models
combine elegance and elite features including audio recording,
video recording and photo taking capabilities.
2002 Shanghai D&B Industry Co., Ltd. has officially changed its
company name to"Shanghai DBTEL Industry Co. Ltd". DBTEL Inc.
displayed a series of its own-brand handsets at the CeBIT show held in
Germany in March; the products displayed included built-in antenna
handsets, clamshell handsets, colour display handsets, clamshell GPRS
handsets, etc. "DBTEL", the own-brand handset of DBTEL Inc., has
been successfully marketed in Hong Kong.
DBTel is the major Taiwanese company that has
successfully built a strong brand name in China
Slide 29
Established in 1979 in Taipei, Taiwan by our
Chairman Michael Mou, DBTEL is now a major
manufacturer of telecom products worldwide,
supplying many national network providers with
DECT products. Our factories are located in
Shanghai, Taipei, Penang and Tienjing and comprise
a total of 778,000 sq.ft. capable of producing 16.5
million GSM telephones and 14.5 million
cordless/ADSL/cable telephones annually.
We have expertise in providing a total solution from
In-house ID design, Tooling, Moulding, Painting and
in providing a response to customers' form factor
demands in different markets.
Our personnel consists of:
280 R&D engineers.
105 Manufacturing engineers.
58 Quality Control engineers
Quanta Computer Corp
ODM
Quanta Computer is a leading designer and manufacturer of
notebook computers. The company also makes servers, settop boxes, monitors, optical storage products (CD-ROMs,
DVD-ROMs, CD-RWs, rewritable DVDs), liquid-crystal display
TVs, and mobile phones. Quanta Computer's customers
include leading computer vendors such as Apple, Dell,
Gateway, Hewlett-Packard, Matsushita Electric Industrial, and
Sony.
Key Numbers
Company TypePublic (Taiwan: Full Quote )
Fiscal Year-EndDecember2003 Sales
(mil.)$8,569.91-Year Sales
Growth110.7%2003 Net Income (mil.)$388.5
1-Year Net Income Growth25.2%
Slide 30
QUANTA COMPUTER http://www.quanta.com.tw/
No 4 Yue Shan Village Wen
Ming 1st St
Tao Yuan Shien, Kuei Shan
Hsiang
TAIWAN
HTC – High-Tech Computer Corp - ODM
HTC Corporation, founded on May 15th 1997, specializes in
designing and manufacturing world-class mobile computing
and communication solutions for OEM (original equipment
manufacturer) and ODM (original design manufacturer)
customers. Since its establishment, HTC has become one of
the most respected Windows CE device OEMs/ODMs.
Chosen by Microsoft as a hardware platform development
partner for the Windows CE operating system, HTC has since
built up an exceptionally strong engineering team with two
divisions—the IA (Information Appliance) engineering division
and the WM (Wireless Mobile) engineering division. These
divisions have devoted all their efforts to designing highly
innovative, quality products—and taken a market-centric
approach with customers. Meanwhile, as an innovator and
pioneer, HTC is adding wireless expertise to its portfolio and is
expanding the frontier of mobile computing, and Internet and
wireless convergence.
Besides having excellent engineering capability, HTC also has
the production capacity and logistical support to maintain a
large customer base through its efficient, high-volume, ISO9001/ISO-14001-qualified facilities.
To ensure the most rapid time to market for customers,
HTC has built close strategic relationships with leading
software and hardware component suppliers, such as
Microsoft, Intel, Texas Instruments, QUALCOMM, Sony,
Citizen, among others. These close relationships enable
early access to key technologies and guarantee that
supplies arrive on time
Slide 31
HTC is one of the most respected
Windows CE device ODMs (original
design manufacturers), and as a
result, the company has truly become
the name behind world class
Windows CE solutions. Our
unparalleled aptitude enables us to
render services beyond that of
traditional ODMs. We provide not
only technological services but also
product planning supports to our
customers.
Headquarters & IA
Engineering Division
No.23, Hsin Hua Road,
Taoyuan, 330
Taiwan, R.O.C.
Tel : +886 (3) 375 3252
Fax: +886 (3) 375 3253
WM Engineering Division
1F, No.6-3, Bau-Chian Rd,
Hsin-Tien, Taipei, 231
Taiwan, R.O.C.
Tel : +886 (2) 8912 4138
Fax: +886 (2) 8912 4135
HTC Curent Market Status (Continued)
Taiwan-based handheld-device maker High Tech Computer (HTC) has produced seven Windows-based
handheld devices worldwide since 2002, including three PDA phones and four smartphones under different
product names and in various markets.
HTC acquired IA Style, a Taiwan-based software development firm specializing in software R&D and system
integration for handheld products, in the fourth quarter of 2003, as reported on November 3. The merger
helped HTC increase its ability to compete in the PDA, PDA-phone and smartphone markets, allowing it to
offer more complete solutions.
HTC produced its first PDA-phone device, the “HTC Wallaby,” in 2002. In the US, it is called the “T-Mobile
Pocket PC Phone” and is sold through T-Mobile USA. It is also known in the US as the “Siemens SX-56,” sold
through AT&T Wireless. In the UK, it is available from O2 and is dubbed the “XDA.” In New Zealand, it is called
the “Qtek 1010.” In China, it is named the “Dopod 686.” The “HTC Himalayas,” introduced in 2003, features
Windows Mobile 2003 and has built-in Bluetooth connectivity. The device has also been marketed under
different names in the US, UK, New Zealand and China. HTC introduced a new model, called the “HTC Blue
Angel,” in August this year. The slide-to-open PDA phone will soon be sold in Europe through mmO2, in the
XDA-series, in the US via T-Mobile under the MDA-series brand, in Australia under the i-Mate series and in New
Zealand under the Qtek-series.
For the smartphone line, HTC launched the “HTC Canary” and “HTC Tanager” in 2002, the “HTC Voyager” in
2003 and the “HTC Typhoon” this year. These models were sold under famous brand names in different
regions, including the Orange SPV series in Europe, the Qtek series in New Zealand, the i-Mate in Australia
and the Dopod in China. The recently launched “HTC Typhoon” smartphone, known as the Orange SPV-C500,
is the company’s smallest and lightest model to date, according to the company. In addition, the company will
introduce the “Feeler” smartphone, and agreements with T-Mobile Germany (with the brand name of SDA) and
Australia-based i-Mate (with the brand name of SP3i) have been finalized for the marketing of the product.
For third-generation (3G) mobile technology, the company introduced a CDMA version of its “HTC Blue Angel”
PDA-phone, the “HTC Harrier,” in August.
Slide 32
Rise of the Taiwan Handset ODMs
ODM
Customer
Models
Arima
Sony Ericsson
Toshiba
T100, A3618
T535i
BenQ
Motorola
T190, T191, C300
Compal
Motorola
Panasonic
E360, E365
G60
Dbtel
Siemens
N/A
GVC
Sony Ericsson
R600, T200
HTC
mmO2
Orange
Siemens
XDA
SPV
SX56
Microcell
Sony Ericsson
T66
Quanta
Panasonic
Siemens
GD55, G50
CL50
Source: Northstream and ARCchart research
Slide 33
Taiwan Handset Market Statistics
☯Handset shipments from Taiwan are projected to reach 68.28 million units
in 2005
☯Shipments increased from 42.9 million units in 2003 to 52.3 million in 2004
☯Taiwan handset shipments are expected to account for 10.9% of global
handset shipments this year, up from about 8.3% in 2004, the statistics
indicate.
☯The Taiwan-based Topology Research estimated that mobile-phone
shipments globally would hit 635 million units in 2004, of which the Taiwan
industry would contribute 8.2%. The contribution should grow to 9.4% of
total shipments of 679 million phones worldwide in 2005, said the marketresearch firm.
☯The Taiwan-based Market Intelligence Center (MIC) anticipated that mobilephone shipments from Taiwan would climb to 63.6 million units this year, up
21.6% on year, as reported on November 10.
☯Global mobile-phone shipments are forecast to top 705 million units in
2005 and exceed one billion in 2008, according to a January 19 press release
by IC Insights. Shipments have grown from 520 million units in 2003 to 670
million last year, mainly buoyed by surging demand for camera-equipped
models,
IC Insights stated.
Slide 34
China – Independent Design Houses
Established in July 2002, Techfaith Wireless Communication Technology Limited is an
R&D enterprise specializing in wireless communication terminal products. Until now
Techfaith Wireless has established the largest handset R&D centre in Beijng
Headquarter dealing with GSM, WCDMA and TD-SCDMA products. As the pioneer in
Chinese WCDMA industry, Techfaith Wireless set up a design center in Shanghai
focusing on CDMA 1X and CDMA EVDO. Techfaith Wireless also has an ID/MD and
manufacturing support office in Shenzhen. As of the end of 2004, the corporation has
staff of over 1,000, including 90% technical development personnel. They became
Qualcomm’s first handset design partner in China.
Cellon International is a leading independent design center for wireless terminals and
modules. The Company provides complete module, platform and terminal-ready
production solutions for top-tier handset OEMs and private label distributors
worldwide. Cellon has more than 800 employees worldwide and operations in the
United States, China and France. In addition, the company has built strategic
relationships with leading technology players and third-party software developers.
Over 20 million wireless handsets that are in use today are powered by Cellon
technology.
Slide 35
China – Independent Design Houses
YuHua TelTech (ShangHai) Co., Ltd. was founded in June 2001,
located in Jin Qiao Develop Zone in Shanghai. It was funded with
a capital of 6 million USD by Mr. Wu Xiaozhong, an American
Chinese engineer, and several of his partners. They are focused
on the R&D of mobile communication products with their own
independent intellectual property rights; their goal is to turn the
company into an international top R&D center.
Slide 36
Taiwan – Independent Design Houses
Remotek Corporation is a leader in the design and manufacture of cellular repeater
systems and RF (Radio Frequency) components in Taiwan. Remotek has more than
15 years of experience and is built from a solid research and development team of
specialist RF technology engineers.
Remotek focuses on providing indoor/outdoor GSM coverage solutions for
GSM/DCS systems. Our representative products are available in more than 15
countries, across four continents. Our products include band selective repeaters,
channel selective repeaters and fiber optical repeaters. RF components include
couplers, splitters, antennas, etc.
WPG has 150 engineers in Taiwan and China doing complete system design.
WPG also owns major stakes in four Taiwan-based independent design houses
(one spin-ff and three startups): Omniblue, for Bluetooth applications: MasterIA,
for RISC-based CPU and Linux OS; Lighten, for DSP-based MP3 application; and
Lab 105 for network-attched sotrage servers. These IDHs act as design partners
and facilitators, guilding the OEM to mass production.
Slide 37
Handset Value Chain in China
Chipsets
OS/Stack
Software
Hardware
Integration
APP/MMI
Software
Industrial
Design/Manuf.
Post Production
Haier
TCL
ZTE (or DBTel)
Motorola
Slide 38
Marketing &
Branding
Chipset Vendor
Distribution
Soutec CDMA
Design House (Such
as Cellon)
Wavecom
Testing
Final
Assembly
PCB Layout
Industrial
Design
Design &
Coding
SubAssembly
Design
Design &
RF
Coding
Base
Band
ODM (Such as Pantech)
Source: BDA China Research
Module Suppliers and Design Houses
Squeezed in the Value Chain
Chipsets
OS/Stack
Software
APP/MMI
Software
Post Production
Marketing &
Branding
Distribution
Testing
Final
Assembly
Slide 39
PCB Layout
Module
Suppliers
Design
Houses
Industrial
Design/Manuf.
Industrial
Design
Design &
Coding
SubAssembly
Design
Design &
RF
Coding
Base
Band
Chipset
Vendors Moving
downstream
Hardware
Integration
Handset Manufacturers
moving upstream
Source: BDA China Research
Global Branded Handset Supplier Shipments, 2004
This signifies handset type
OEM
ODM
OBM
Handset brand
Shpmt (in Millions)
2004 growth
Nokia
207.7
OEM
15.8%
Motorola
104.5
OEM
47.2%
Samsung
85.5
OEM
53%
Siemens
48.9
OEM
14.3%
LGE
44.1
OEM
87.4%
SEMC
42.5
OEM
56.3%
UTStarcom
16.7
OEM
67%
Panasonic
15.6
4.0%
NEC
15
Bird
13
OEM
OEM
OEM
Sanyo
10.7
OEM
18.9%
TCL
9.6
Slide 40
OEM
15.4%
15%
3.2%
OEM
ODM
OBM
Handset brand
Shpmt (in Millions)
2004 growth
Sharp
9.1
29.5%
Pantech & Curitel
9.0
Kyocera
8.9
Sagem
7.9
ZTE
6.8
Alcatel
5.6
Audiovox
5.4
Konka
OEM
ODM
OBM
80%
OEM
OEM
-6.3%
OEM
OEM
240%
35%
5.0
OEM
OEM
Toshiba
4.4
OEM
45%
Philips
3.8
OEM
31%
Mitsubishi
3.4
OEM
-2.9%
Slide 41
75.6%
-12.5%
244%
OEM
ODM
OBM
Handset brand
Shpmt (in Millions)
2004 growth
DBTel
3.2
192.7%
Amoi
3.2
Soutec
2.4
BenQ
2.4
Fujitsu
2.1
OEM
-4.5%
Huawei
2.0
OEM
95%
Haier
1.4
40%
Capital
1.2
OEM
OEM
Eastcom
1.2
OEM
-72.1%
Casio
1.2
OEM
500%
Lenovo
1.1
69.2%
Panda
1.1
OEM
OEM
Slide 42
OBM
ODM
OEM
OEM
OBM
ODM
186.4%
-20%
370%
9.1%
-19.2%
Handset brand
Shpmt (in Millions)
2004 growth
Sendo
1.0
66.7%
Hitachi
1.0
150%
Hisense
0.6
175%
Hanwa
0.6
175%
Daxian
0.5
66.7%
Total
715.1 Million
33.3%
Slide 43
China GSM/GPRS/EDGE Handset market Status
Two of the Chinese handset suppliers ranked
globally as GSM suppliers in 2004 – TCL &
Ningbo Bird
In 2003, Chinese GSM suppliers grew shares
significantly, where they captured a 43%
market share in the China market, but in 2004,
they shrank to 30% as foreign suppliers fought
back by lowering price, introducing new
feature-rich models.
Slide 44
China CDMA Handset Market Status
IN Q3 2004, USA CDMA Handset sales where down at least 25%,
accorsding to Samsung and LG (top two CDMA suppliers in the
USA).
Motorola ranked third biggest CDMA supplier, based on their
China market sales, where it is the leading foreign supplier in the
region. In China, mostly locals are licensed as CDMA suppliers,
including Soutec, ZTE, Bird, TCL, Amoi, Hisense, Eastcom, Haier,
Daxian and others
Note: WCDMA handsets are starting to hit the market in Taiwan
from tier one players. Hong Kong’s Hutchison Whompoa is also
fueling WCDMA handset demand for Europe and Asia, China
hasn’t released licenses for 3G usage but that has not stopped
Chinese handset companies from designing and producing them
for export: Huawei, Amoi, DBTel and others
Slide 45
China PHS Handset Supplier Market Status
UTSTarcom is the largest PHS/PAS handset provider in
China and shipped 16.7 million units in 2004. The PAS
Network relies on PHS-type handsets. PAS is a
wireless local loop-style service offering limited
mobility in a metro setting.
2004 market share for UTStarcom is estimated to be
49%, ZTE with 20%, Huawei with 6% and Sanyo-PTIC
with 5% and Amoi (sonic) with 3.5%
There were 32 million PHS handsets sold in China
during 2004.
Slide 46
Electronic Manufacturing Services in China
Headquartered in Singapore, Flextronics is a leading Electronics
Manufacturing Services (EMS) provider focused on delivering innovative
design and manufacturing services to technology companies. With fiscal
year 2005 revenues of USD$15.9 billion, Flextronics is a major global
operating company that helps customers design, build, ship, and service
electronics products through a network of facilities in 32 countries and five
continents. This global presence provides customers with complete design,
engineering, and manufacturing resources that are vertically integrated with
component capabilities to optimize their operations by lowering their costs
and reducing their time to market. Flextronics is partnering with Microsoft
for a Smart Phone reference design called Peabody for production in China.
Peabody
reference
design
platform
Solectron Corporation, founded in 1977, is a leading electronics manufacturing
services (EMS) company offering a full range of integrated supply chain solutions.
They serve the world's most innovative brand-name companies in industries that rely
on high-tech electronics. Their integrated collaborative design, lean manufacturing
and post-manufacturing services offer customers competitive outsourcing
advantages, such as access to advanced manufacturing technologies, shorter product
time-to-market, lower total cost of ownership and more effective asset utilization.
Slide 47
Celestica is a world leader in the delivery of innovative electronics manufacturing
services (EMS). Celestica operates a highly sophisticated global manufacturing
network with operations in Asia, Europe and the Americas, providing a broad range
of integrated services to leading original equipment manufacturers (OEMs) across a
variety of industries. Celestica's expertise in quality, technology and supply chain
management and leadership in the global deployment of Lean principles, enable the
company to provide competitive advantage to our customers by improving time-tomarket, scalability and manufacturing efficiency.
Sanmina-SCI Corporation, the world’s Premier Electronics Contract Manufacturer
(EMS), serves the fastest growing segments of the $125 billion global EMS market.
The Company provides end-to-end manufacturing solutions, delivering unsurpassed
quality and support to large OEMs primarily in the automotive, communications,
computing, defense and aerospace, industrial and semiconductor systems, medical
systems, and multimedia markets. The Company is at the forefront of the industry
due to its commitment to leading-edge technology, cost-effective manufacturing and
unparalleled customer service.
Slide 48
Jabil Circuit, Inc. is a global leader in the Electronic Manufacturing
Services (EMS) industry, offering innovative manufacturing and supply
chain solutions to world leading electronics and technology companies
across a broad range of industries. From conceptual design through
total product management, our design, manufacturing and postmanufacturing services are offered from facilities in the Americas,
Europe and Asia.
Foxconn is the registered trade name for Hon Hai Precision Industry Co.,
Ltd. Hon Hai Precision Industry Co., Ltd. ("Foxconn") is a global leader in
providing mechanical solutions. It is the largest manufacturer of
connectors for use in PCs in Taiwan, and a leading manufacturer of
connectors and cable assemblies in the world. The company also
manufactures enclosures, primarily for desktop PCs and PC servers.
Slide 49
Venture Corporation Limited, a leading global electronics services provider,
offers an excellent combination of outstanding management, world-class
technical capabilities, innovative manufacturing technology, reliable testing
capabilities and ultra modern facilities. Founded in 1984, the Venture group
comprises about 30 companies with global clusters of excellence in SouthEast Asia, North-East Asia, the Americas and Europe, and employs more
than 10,000 people worldwide
Slide 50
China Semiconductor Components Distributors
Established in 1981, World Peace Group (WPG) is Asia's largest distributors of
electronic components and computer products with 2003 sales of US$1.6 billion, up
by 50 percent compared to 2002. Headquartered in Taipei, WPG has over 25 sales
offices in Hong Kong, China, Singapore, Malaysia, Thailand, Philippines, Japan, and
India etc. around greater China and Asia Pacific region. WPG serves as a supply
channel partner for more than 60 suppliers and over 15,000 global and regional
contract electronic manufacturers (CEMs), original equipment manufacturers (OEMs),
and original design manufacturers (ODMs) in the telecommunications, industrial
electronics and consumer electronics industries. In 2003, WPG ranked among global
top 6 distributors By EBN, and has been voted "The Best Disty in Taiwan".
Slide 51
Problems to be Solved by Western Companies
☯Weak at developing long-term
relationships due to lack of
social contact, inexperience in
dealing with Asian crosscultures.
☯Not strong at promoting image
to local market and no Asian
Corporate Identity.
☯No local language product literature (Chinese,
Korean, Japanese) support.
☯Lack of stable, reputable local representation.
☯No product feature localization strategies
☯Pricing is fixed with U.S. standard list
Slide 52
Adopting proven tactics & strategies for success in China
☯Developing an Action Plan for Asia/China
☯Problems to be solved by Western companies
☯Defining Market and Blockers
☯Adopting Strategies and Tactics
☯Timing for Market development
☯Guanxi Building events
☯Asian Corporate Identification
☯Multi-Channel Selling Strategy
☯Roadmaps : Short Term & Long Term
☯Rules for improving profitability, challenges
☯The Value of WOFE ventures
Slide 53
Subtle Art of Doing Business with Chinese
☯ Shaping the Chinese Business Personality
☯ Modern Influences on China Today
☯ The Chinese Circle of Influence
☯ Confucianism – How it applies to business in China
☯ Face: Preserving individual dignity
☯ Guanxi: - Closed System Relationships
☯ Understanding China’s legal environment and contract
usage
☯ Navigating China’s Socialist System of “Red Tape”
Slide 54
Q2, 05 – PR China
Wireless Carriers Profile
PR China National Wireless Carriers
April 18, 2005
Karl Weaver
China Mobile
Welcome to China Mobile
ª China Mobile Communications Group is the largest telecom operator in China.
The company spun off from China Telecom in April 2000 orchestrated by the
government to create a competitive environment. China Mobile has 388 billion yuan
($46.7 billion) in asset and 121,000 employees. Revenue for 2004 was 192.4 billion
yuan ($23.2 billion), or 35.6% of total telecom revenue in China; net profit was 43.2
billion yuan ($5.2 billion), up 15.3% from 2003 . By the end of 2004, China Mobile
had 204.3 million cell phone customers, about 61% of total cell phone users in China
(GSM and CDMA combined). China Mobile is listed in the Hong Kong Stock
Exchange with ADR trading in New York with a market cap of over $60 billion. China
Mobile competes with Unicom in cell phone services and, to a less degree, with
China Telecom and Netcom which operate Xiao Ling Tong (Little Smart), a quasi
mobile service (PHS).
ªChina Mobile offers data services through its Monternet.com which hosts services
provided by third-party service providers via WAP. By the end of 2004, China Mobile
had 30 million registered WAP users. In 2003, China Mobile launched "M-Zone," a
service brand on Monternet that targets young cellphone users with mobile data
services like ring-tones, multimedia messaging, mobile payment and games. In June
2004, China Mobile announced "MO" (for Mobile Online), a bundled data service with
express access. In addition to mobile services, China Mobile offers VoIP calling
cards ("17951") and regular Internet access. In November, China Mobile completed
the world's largest softswitch network and will use it to carry all of its VoIP traffic
which accounts for one third of toll traffic. China Mobile also runs the largest wireless
LAN in China for GPRS and laptop users.
Slide 56
Contact Information
Addre
ss:
53A Xibianmen Ave.,
Xuanwu District
Bejing 100053, China
Phone
:
+86-106-360-4988
Fax:
+86-106-360-0364
China Unicom
•China Unicom Limited (the "Company") was incorporated in Hong
Kong in February 2000. The Company was listed on the New York
Stock Exchange and the Stock Exchange of Hong Kong on 21 June
2000 and 22 June 2000 respectively. On 1 June 2001, the
Company was included as a constituent stock of the Hang Seng
Index. China United Telecommunications Corporation ("Unicom
Group") is the major shareholder of the Company. As of 20 March
2004, Unicom Group indirectly and effectively holds 62.90% of
shares in the Company through China Unicom (BVI) Limited and
China United Telecommunications Corporation Limited. The public
investors of the A Share market in Shanghai indirectly and
effectively hold 14.52% of shares in the Company. The remaining
22.58% of shares in the Company are held by public investors in
Hong Kong and New York.
•As to its cellular business, the Company is one of the two mobile
telecommunications operators in the PRC. As of April, 2005, there were 114.93
million subscribers to the Company's GSM and CDMA cellular businesses on a pro
forma combined basis in 30 provinces, municipalities and autonomous regions. In
terms of the number of subscribers, the Company was ranked as the second largest
mobile telecommunication operator in the world. The number of the Company's
CDMA cellular subscribers reached 28.87 million and the Company was ranked as
the second largest CDMA cellular operator in the world.
Slide 57
-
900MHz: Global System for
Mobile Communication, or
GSM
-
1800MHz: DCS-1800, used for
GSM standard at the
1800MHz band.
-
CDMA: a global mobile
communication
system,
adopts IS-95A Standard.
China Unicom Corporation
Limited
No. 133A, Xidan North Street,
Xicheng District, Beijing
100032, P.R. China
Tel: (86) 10
66505588Website:http://www.c
hinaunicom.com.cn
China Unicom Limited
75th Floor, The Center, 99
Queen's Road Central, Hong
Kong.
Tel: (852) 21262018Fax: (852)
21262016Website:http://www.chi
naunicom.com.hk
China Telecom
China Telecom Corporation Limited (hereafter
referred to as the Company) is the leading
provider of wire-line telephone, data and Internet
and leased line services in 20 provinces/
Autonomous Regions and Municipalities in
China. For wireless, they are using PHS
Primary Products
services, called “Little Smart”
ADSL
1
Slide 58
Local wireline access lines in
service
184.5
PHS
million 800
ChinaVnet
D-Net
million Calling Card
2
Among: Residential
113.6
3
Enterprise
18.8
million
4
Public telephones
11.9
million
5
Wireless Local Access
Subscribers
40.1
million
12.6
million
Financial Highlights
Fiscal Year End:December
6
Revenue (2003):14309.00M
Revenue Growth(1yr):56.90%
Employees(2003):163,874
Employee Growth (1yr):59.60%
Broadband subscribers
Address: 31 Jinrong Street Xicheng
Dist. Beijing 100032,PRC
Telephone: (8610) 6642 8166
Facsimile: (8610) 6601 0728
China Netcom
China Netcom (Group), or CNC China, the second largest
facilities-based broadband telecommunication operator in China.
As the primary operating subsidiary of China Netcom Group,
CNC China provides broadband Internet access and telecom
services to residential and corporate customers. It also holds
licenses to operate international gateways outside of China.
CNC China was founded in 1999 by four entities of the Chinese
government as part of the breakup of China Telecom Group. A
consortium of international investors, including News Corp.,
Bank of China, China Construction Bank, and Goldman Sachs
acquired a minority stake in CHC China in 2001.
We own and operate extensive
local networks in our northern
service region, including the
"last mile" infrastructure, which
is costly for our competitors to
follow. We also own and
operate local networks in
selected major cities in our
southern service region.
PHS services are wireless telephone services based on PHS technology. PHS has a
nicknamed called "Little Smart“, in China. There are an estimated 60 million users between
China Telecom and China Netcom.
Contact Information
China Telecom and China
Netcom Join Hands in "Little
Smart Interconnection all over
China" —PHS short message
interconnection all over China
Slide 59
Address:
No. 1, Beihuan Donglu, Beijing
Development Area
Bejing 100176, China
Phone:
+86-10-6787-5599
Fax:
+86-10-6787-8560
Karl J. Weaver
Slide 60

Developing Business with Greater China Handset vendors

Transcription

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