Sluggish Semiconductor Market to Rally

Although semiconductor revenues may get off to a slow start in the first half, 2008 will end up being a positive year overall. Research firm iSuppli predicts global semiconductor revenue will rise to $291.4 billion in 2008, up 7.5% from an estimated $270.9 billion in 2007. (See Figure 1.) Global semiconductor sales in 2008 will be negatively impacted by rising energy costs and the U.S. sub-prime mortgage crisis. This will have global repercussions, impacting demand in other nations. These factors will contribute to underinvestment and nervous customers in 2008, restraining growth as they cut orders.

Source: iSuppli

5 Key Android Differentiators

Based on analysis of the Android SDK and follow-up conversations with senior executives at Google, Generator Research identified the top 5 ways Android is different from other mobile phone operating systems.

1. Mindset: Internet First, Mobile Second

Unlike Symbian and Windows Mobile, Android’s primary goal is to enable the mobile Internet. With Android, Google wants to create a mobile service development environment similar to what exists on the fixed internet.

Android, in effect, completely bypasses the service delivery infrastructure that has been developed by the mobile industry: In Google’s reductionist view of the market, all the mobile industry needs to provide is a hardware platform (the handset) and a broadband wireless connection.

2. Better Services: New Features

Android contains a range of new features that will allow application developers to create superior mobile services. For example, applications can be triggered by external events, such as when new content is available on the Web or when the user enters a defined geographic location.

3. Free, Open Software

Android is a free and openly available to anyone. Large companies will have no informational or creative advantage over amateur developers who want to work on Android applications in their spare time. Barriers to entry are virtually non-existent.

4. Leverage of Existing Global Service Brands

Google is making some of its core assets available as part of Android for free. Google Maps, Google Search and Google Mail are all integrated within Android which is therefore far more than just a software stack.

5. Part of a Wider, Proven Strategy

Google is not pursuing Android as a standalone business, as is currently the case with Symbian whose only source of revenue is licensing royalties. Instead, Google sees Android as important in further distributing the company’s existing service brands and as a way to develop a mobile advertising business.

Voyager Hits a Home Run

According to Compete’s newest holiday shopping data, the LG Voyager (Verizon’s iPhone competitor) ranks as the No. 1 phone viewed in detail at major carrier Websites in November 2007, an increase in viewing of 131% over last year’s No. 1 device – the Samsung t609.

The iPhone ranked 4th on Top 10 list, quite an achievement since it was launched five months ago. The mix of devices residing in the Top 10 in 2007 signals a shift from previous years.

Smartphones, still less than 15% of the overall market, are beginning to become more popular with consumers. However, the Sidekick is one of only two device series found in the Top 10 of both November 2006 and 2007.

Go Figure

166
Number of applications filed at the FCC for the 700 MHz auctions, which are set to begin Jan. 24, 2008.

96
Number of applications accepted.

170
Number of applications identified and rejected as incomplete.

1/4/08
New deadline to resubmit corrected applications with upfront payments.

$4.6B
Reserve price due for the highly prized C Block that Google is bidding on.

$15B
Projected amount the FCC auction could bring in.