proposal for bu1

7/31/2019 Proposal for BU1

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Proposal for BU1


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Contents

Market competition

Arimacomms insight

Heavy steps in growth


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A3618 GC75 T100 Z200 J200 K300J210

2005 2006

Z300J220 J230

Before 2004

K220K200

More volume not equal to more value

WW ShipmentVendor 2005 2006 YoY(%)

Nokia 265 345 30.19%

Motorola 146 209 43.15%

Samsung 104 116 11.54%

SEMC 51 74 45.10%

LG 55 62 12.73%

(Unit: M)

2005 Arima occupiedSEMC 20 %

2006 Arima occupiedSEMCs 16 % 2007 Arima expect to

SEMCs 10 %

2007

T250
http://www.xuncai.com/toolbar/pic2_to/imagedown.asp?imageUrl=http://www.dabaoku.com/sucai/shangwu/shangwurenshi/032bf.jpg&publisher=xuncai010@dabaokuhttp://www.xuncai.com/toolbar/pic2_to/imagedown.asp?imageUrl=http://www.dabaoku.com/sucai/shangwu/shangwurenshi/032bf.jpg&publisher=xuncai010@dabaokuhttp://www.xuncai.com/toolbar/pic2_to/imagedown.asp?imageUrl=http://www.dabaoku.com/sucai/shangwu/shangwurenshi/032bf.jpg&publisher=xuncai010@dabaokuhttp://www.phonedaily.com/mobile/phone/?prod_id=1956http://www.phonedaily.com/mobile/phone/?prod_id=1957http://www.phonedaily.com/mobile/phone/?prod_id=1955


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Top 5 Vendor ASP

1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07

Nokia 145.9 135.2 131.1 140.5 145.6 133.1 125.3 119.2 125.1 129.0 119.4 119.1 118.7

Motorola 161.3 161.1 167.9 155.6 153.8 144.6 144.7 146.2 138.8 137.6 130.8 118.8 119.2

Samsung 196.7 174.6 174.3 164.6 182.1 170.4 158.4 165.0 155.0 161.8 152.1 145.5 130.4

LG 152.9 166.7 167.7 168.2 165.1 149.3 143.7 146.0 121.0 139.0 135.2 138.4 143.4

Sony Ericsson 190.1 174.2 191.6 206.1 180.0 170.9 181.5 170.5 180.1 181.8 187.3 192.0 177.7

Note: ASP (Average Sales Price)Source: MIC Data, May 2007 Whats the value of entry phone ??


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SEMC 07 Q2 financial result

Whats the value of entry phone ??


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Market competition


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WW mobile phone shipment forecast (2004-2010)

Source: MIC June 2007


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WW mobile phone shipment by product type


Smart cellular device grow fast!

Feature phone keeps main stream


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13.80%

9.60%

7.30%

36.50%37.1%36.2%34.7%

33.0%33.1%

32.1%

18.5%

17.7%

20.3%

21.8% 21.1% 21.5%

14.40%

14.2%11.3%12.0%11.1%12.8%12.5%

8.9%9.0%7.8%

6.4%5.8%6.2% 6.4%6.3%

6.5%

6.6%6.9%6.7%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

2005 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07

Nokia Motorola Samsung SEMC LG

Source : company data

Top 5 vendors take lions share at 82%.

Top 5 Vendor - market share ranking

(Unit:%)


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Top five 07 new models launch schedule

Samsung name ruleC series :Classic and practical

D series :DeluxeE series :Exclusive and FashionP series :Premium and multimediaX series :New Generation and stylisZ series :WCDMAF series :Ultra SpecialI series :PDA SPU series :Ultra Edition II

LG model name ruleKE series New generation and shining styleKG series Black label chocolate

KU series 3G chocolate family

Sony Ericsson name ruleK series :CameraW series :MultimediaZ series :Fashion clamshellP series :EnterpriseT series: DesignJ/K series :Entry

07 May


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Street price range

ource: retail price from http:// www.phonesource-usa.com

(UNIT:USD$)

$100

$200

$300

$400

$500

U600(10.9)

U700(12.1) U300(9.6)

U100(5.9)

F300(MUSIC)

F500(VIDEO)

i600

F700

E900

X830

Z150

D900

KE970(Shine)

KG800

KE820

KE850(PRADA)

KU800

KG600

K810

M600

Pi

S500

W300

W580

W880

W950Z610

K800

K310

J110/J120$60

C140

K200/K220


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Handset shipment: 37.4 mn units (8% QoQ ,49% YoY)

(cumulative sales of Ultra Edition :exceed 12 mn units)

More than 30 models with high-end camera and slim design

Main drivers

Good reference: Samsungs ambition


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Arimacomms insight


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Alliance with SEMC

Music

imaging

Design

Entry


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Not only assemble a phone, but more

Whats the spirit of ODM ?

2: If Cybershot is state-ofart but

proprietary >> Zeiss Optics/ Schneider

Nokia N90LG prada

Next product

1: Copy another Kxxx

Wxxx even better


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Lifelong planning


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:

2007/08/07 - 01:19:20

SymbianWindows Mobile


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Start to devoted to develop smartphone based on windows mobile OS

P series SP model

P1i featureLaunch date:2007 Q3(USD$692)Symbian OS 9.1UIQ 3.0 platformWCDMA GSM240x320 pixels3.2 MP cameraTouch screenNo GPS/HSDPA/802.11g Wi-fi

Extend SP battle line

Convergence phone


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Leverage branding image & goodwill to expand product mix

Smart phone function and quality,feature phone look

Low-end price, middle-end feature andquality

SEMC product strategy assumption

Follow the market Lead the market

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High-end section: smart phone and multimedia phone

Suggestion

mid-end/low-end section: rich feature phone


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WW converged phone market outlook by volume

0

100

200

300

400

500

600

700

800

900

1,000

2004 2005 2006 2007 2008 2009 2010 2011

-10

0%

10

20

30

40

50

60

70

80

90

100

Smart phone PDA phone Feature phone Smart phone YoY

PDA phone YoY Feature phone YoY

2004 2005 2006 2007 2008 2009 2010 2011Smart phone 25 48 82 120 169 211 241 265PDA phone 6 8 14 17 21 24 27 29

Feature phone 598 739 866 915 925 935 936 938Total 629 795 962 1,052 1,115 1,171 1,204 1,232

Smart phone YoY 87% 73% 45% 41% 25% 14% 10%PDA phone YoY 33% 73% 25% 21% 16% 10% 8%Feature phone YoY 24% 17% 6% 1% 1% 0% 0%

Unit: Million units


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Smartphone market share trends


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23Source: Morgan Stanley Taiwan May 21, 2007

0%

10%

20%

30%

40%

50%

60%

70%

2003 2004 2005 2006 2007E 2008E 2009E

Blackberry OS Linux Palm OS

Symbian Windows Mobile Others

WW smart device shipment ratio breakdown by OS (%)

15% 15%17% 19%


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Boundary is blurry!

Converged device snapshot

North America West Europe APAC

Samsung i620 SEMC M600MOTO Q9Nokia E90

Nokia N95Apple iphone


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Convergence trend is popular

Alliance diversity

WiMAX+T-DMB+VOIP+IMS

3G

GPS

WCDMA HSXPA6110 Navigator


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Emerging Market Handsets Plan (EMH

Asia and Africa market

ULC phone grow in emerging market

C series

Mobile phone manufacturer attempt to replace basic phone

with middle and low-end feature Phone.

1100 series C series J /K series

China and India market


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WW mobile phone market: replacement ratio(%)


S E i W lk i L t l i !


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SE W800

Sony Ericsson Walkman series- Let us play music!

2005 2006 2007

SE W550

SE W900

SE W810 SE W850

SE W950 SE W700

SE W880

SE W610

SE W660

SE W580

(9mm)


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Product Position

SEMC entry level phone should migrate the product image

from walkman and cyber-shot phone

(At least for ID image)

SEMC leverages SONY consumer experience

for walkman and cyber-shot brand image

Mobile phone considers a consumer-oriented merchandise nowadays

Marketingposition on: Low tier walkman or cyber-shot phone

proposal for bu1

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