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TechInsights TechAlert Service:
Competitive Alert - First Quarter 2007

March 1, 2007

In This Issue:
Softbank Pre-installs QUICPay in Mobile Wallet Phones
Olympus to Roll out 18x Optical Zoom DSC
DoCoMo Ships Phone with Aromatic Change Panels
Softbank Mobile Opens 24-hour Shop in Tokyo
Toshiba Forays into Smartphones
Double GSM Phone
Philips Sells Handset Operation to CEC
Samsung too Announces Touch Screen Phone
Softbank Pre-installs QUICPay in Mobile Wallet Phones
070301-04

Softbank Mobile and JCB have tied up and Softbank will pre-install JCB’s mobile credit card system, QUICPay, into Softbank’s new models which support the mobile wallet (or in Japanese Osaifu Keitai) function. By pre-installing QUICPay execution software, Softbank Mobile makes the application process simple to attract more mobile credit users.

Mobile credit card systems allow users to hold a cellular phone with mobile wallet support over the reader/writer and make purchases on credit. There are multiple mobile credit card standards in Japan. They are JCB’s QUICPay, NTT DoCoMo/Mitsui Sumitomo Card’s iD UFJ Nicos’ smartplus and Visa International’s Visa Touch. Visa Touch is based on Smartplus standard.

Users of mobile credit are skyrocketing in Japan. Nihon Keizai Shimbun, Japan’s largest financial daily, reported the number of mobile credit users has topped 2.6 million in January 2007. The number of stores and taxi companies accepting mobile credit as a means of payment are on the rise. The number of mobile credit users is expected to grow rapidly.

As of January 2007, NTT DoCoMo and Mitsui Sumitomo Card had 1.5 million iD mobile credit users. JBC and Toyota Finance had 1 million QUICPay users. UFJ Nicos and Visa International had 100,000 Visa Touch (smartplus) users. Back in January 2006, the number of users for the three mobile credit standards was 40,000. [M. Robertson, Portelligent]

Olympus to Roll out 18x Optical Zoom DSC
CA070301-01

Olympus Imaging of Japan is going to roll out the world’s first compact digital camera featuring an 18x optical zoom lens, the Camedia SP-550UZ, in early March 2007. The camera also supports 5.6x digital zoom. The focus distance is 28 mm to 504 mm (35mm camera equivalent).

The SP-550UZ supports handshake compensation, ISO sensitivity 5000, 20MByte of embedded memory and internal flash reaching up to 22.7m. The optics is based on a 7.1 million-pixel 1/2.5-inch CCD. The SP-550UZ measures 116 mm x 78.5 mm x 78 mm at 365g of weight.

The camera shoots 15 frames/sec in sequential mode. The expected retail price is around 55,000 yen ($458.33 @ yen 120/$US 1). Olympus Imaging plans to output 30,000 units a month. [M. Robertson, Portelligent]

DoCoMo Ships Phone with Aromatic Change Panels
CA070301-02

NTT DoCoMo of Japan is going to commercialize the SO703i (manufactured by Sony Ericsson Mobile Communications), which features a Style-Up Panel with Aroma Sheet.

The SO703i supports changeable covers as well as aroma sheets. The phone offers optional Style-Up panels (9 styles with each different fragrance). The Aroma sheet can be attached near the hinge before putting on the panel. DoCoMo’s online shop offers Style-up panels with aroma sheet for 945 yen ($7.88 @ yen 120/$US 1) per panel. The fragrance is claimed to last 6 months to a year.

The SO703i integrates a 2.7-inch 240 x 432 dot 262,144-color TFT LCD, 2 mega pixel CMOS camera, and a 110,000-pixel sub CMOS camera. It supports up to 2GByte microSD card. The phone supports audio playback, full song download, Osaifu Keitai (mobile wallet), phone lock activation by calling DoCoMo, back up service for phonebook, picture symbols for decoration mails, mail with maximum 2MB file attachment, transfer of data within IC card to the IC card of SO703i, and iC communication. The phone’s core target market is females in their 20’s-30’s.

The clamshell SO703i measures 105 mm x 47 mm x 18.4 mm at 104g of weight. Images are available at: http://k-tai.impress.co.jp/cda/article/news_toppage/32758.html [M. Robertson, Portelligent]

Softbank Mobile Opens 24-hour Shop in Tokyo
CA070301-03

Softbank Mobile of Japan has opened the largest Softbank Mobile shop, Softbank Harajuku in the Harajuku district of Tokyo on February 10, 2007. The CEO of Softbank Mobile, Mr. Masayoshi Son, commented, “This is the shop that top-rated staff welcomes you with our coolest and most fashionable cellular phones.” Harajuku is the center of Japanese fashion. The Harajuku shop stays open 24 hours a day. The first floor is a showcase space of Softbank Mobile’s latest handsets including those currently on the market and upcoming models. The basement has 70 reception desks which will be increased to 100 in the future. Softbank Mobile’s flagship store is claimed to have the largest selling floor space among carrier shops in Japan.

Softbank Mobile is aggressive against the two leading Japanese wireless service operators, NTT DoCoMo and KDDI (au). Softbank announced 14 new models and 58 color variations for its spring 2007 lineup, which outnumbers the new models announced for the same season by DoCoMo or KDDI (au). [M. Robertson, Portelligent]

Toshiba Forays into Smartphones
CA070301-05

Toshiba of Japan announced on February 13, 2007 that the company would start manufacturing Smartphones. Demand for Smartphones is growing rapidly particularly in Europe and the U.S. Toshiba is going to roll out a Smartphone in Europe in spring 2007. Following Toshiba’s announcement, Softbank Mobile of Japan announced that the carrier would customize and commercialize the Toshiba’s Smartphone for the Japanese market.

Toshiba announced its new Smartphone, the G900, at 3GSM World Congress. The G900 supports Windows Mobile 6 as the OS. It is equipped with a slide-out QWERTY keyboard. Other highlights are fingerprint authentication sensor, 3-inch 480 x 800 dot wide VGA LCD, 2-mega pixel camera, mini SD card slot, irDA, Bluetooth and wireless LAN. The hardware configuration includes Intel PXA270, 64MByte RAM and 128MByte ROM. The G900 supports dual mode GSM/W-CDMA. Images of the G900 are located at: http://k-tai.impress.co.jp/cda/article/event/33214.html [M. Robertson, Portelligent]

Double GSM Phone
CA070301-06

Shenzhen Tinno Mobile Technology Co., Ltd. (http://www.tinnomobile.com/about/about_e.htm ) exhibited a GSM phone with two SIM card slots at 3GSM World Congress 2007.

One handset model can have two wireless service contracts. This is useful to consumers who travel far and wide for business and pleasure. Users can keep SIM cards from different travel regions in the phone and use them depending on location. By using two cards selectively, the cost can be cheaper than using overseas roaming service with one contract. Another usage pattern is to use one card for business calls and the other card for personal calls.

Tinno Mobile Technology showcased the phone with two SIM card slots. Users can choose which card to use by a selection button. The phone is available in China and the company has shipped over 200,000 units. Tinno’s double GSM phone information is available at: http://www.tinnomobile.com/Double%20GSM/double-GSM_e.htm [M. Robertson, Portelligent]

Philips Sells Handset Operation to CEC
CA070301-07

Philips of the Netherlands and CEC of China reached a final agreement on CEC to acquire the reminder of Philips’ handset operation; Philips made an announcement on February 12, 2007. The pair did not disclose the amount of the deal.

The two companies have been working together over 10 years. Philips, which has been accelerating its reorganization activities, decided that CEC is the ideal partner to take over its cellular phone operation.

Philips’ revenue from cellular phone operations was 320 million euros in 2006. The company’s cellular phone operation has activities in Asia Pacific, which includes China, and Eastern Europe. Per the agreement, CEC will be able to use the Philips brand on its cellular phones for the next five years. CEC will take over about 240 Philips employees. [M. Robertson, Portelligent]

Samsung too Announces Touch Screen Phone
CA070301-08

Samsung Electronics of South Korea announced a touch screen cellular phone, the Ultra Smart F700, on February 8, 2007. The phone can be operated through the screen, but also comes with a QWERTY keyboard. The F700 supports both HSDPA (7.2Mbps) and EDGE. It is quipped with a full touch screen 2.78-inch TFT LCD and 5-million pixel camera with auto focus. The phone supports playback of MP3 files and video. The phone’s dimensions are 104 mm x 50 mm x 16.4 mm. It supports microSD card as an external memory source. The F700 was showcased at 3GSM World Congress in Barcelona Spain.

The highly anticipated Apple iPhone features a touch screen. LG Electronics’ plush Prada phone also supports a touch-enabled screen. Touch screen with soft keys is becoming a trend in cellular phones. Samsung’s press release with an image of the F700 is located at: http://www.samsung.com/PressCenter/PressRelease/PressRelease.asp?seq=20070208_0000320566 [M. Robertson, Portelligent]