Displaying items by tag: personal computer
ASUS chief executive, Jerry Shen, said “always-connected PC” will soon be a reality at Qualcomm’s 4G/5G Summit in Hong Kong on October 17. He said the company is always in search of new ideas and user experiences, and is currently looking to attract customers to the new category of always-connected personal computers.
“We are looking forward to bringing this new category of always-connected PCs,” said Mr. Shen speaking at the event. “More and more, consumers are turning to mobile technology because it’s convenient and you can connect anytime, anywhere. There is growing demand for constant connectivity for PCs.
“ASUS has the history of designing great smartphones and PCs and we are well-positioned to bring to life the benefits of always-connected PCs,” Mr. Shen added. “We look forward to seeing operators offer more flexible data plans for this category to deliver better user experiences.”
Connecting more devices to operators’ networks will bring more revenue, he suggested.
“ASUS and Qualcomm are committed to perfecting the consumer mobile and PC experience. Therefore, a connected PC is the natural extension of our mission,” said Mr. Shen. “We recently announced the ASUS ZenFone 4 Pro smartphone with gigabit connectivity and multi-gigabit Wi-Fi, delivering an ultra-fast virtually seamless gigabit experience.
“With this device, we start to see what improved user experience will look like,” he added. “The ASUS ZenFone 4 Pro is the world’s first smartphone with gigabit LTE. We are entering a new era where consumers will have access to gigabit speeds everywhere. While on the go, you can enjoy 1Gbps with gigabit LTE.”
Qualcomm technology powers the Taiwanese company’s ZenFone 4 Pro smartphone with gigabit connectivity and multi-gigabit Wi-Fi, delivering an ultra-fast virtually seamless gigabit experience. Integrated into the Snapdragon 835 Mobile Platform, the Snapdragon X16 Gigabit LTE modem gives the phone the ability to execute fast download speeds over 4G LTE.
Qualcomm’s 11ad Wi-Fi allows users to download and share 4K videos in seconds, sync their photos, videos and other files with super fast speed, and enjoy quick access to cloud services. Moreover, when users connect other devices, such as laptops, with the phone’s Wi-Fi hotspot feature, the Snapdragon mobile platform is designed to provide end-to-end gigabit wireless connectivity with 802.11ad access and Gigabit LTE backhaul, on a compatible network, even in crowded places such as airports.
Like the upcoming 5G New Radio (NR) standard, 11ad utilizes the mmWave spectrum – in this case, the 60 GHz band— tapping into a massive amount of data-carrying capacity that complements existing cellular and Wi-Fi networks. Additionally, ZenFone 4 Pro users will get robust Wi-Fi connectivity using Qualcomm’s integrated 802.11ac 2x2 MU-MIMO technology, which offers twice as much throughput as 1x1 Wi-Fi and improved coverage, especially in buildings with brick or concrete walls.
“With Qualcomm, we have solved the millimeter wave problem,” said Mr. Shen. “ASUS and Qualcomm have a strong history of collaboration. We will keep moving forward together.”
“This is another example of solving the technology challenge of getting millimeter wave into a smartphone,” said Christiano Amon, EVP of Qualcomm Technologies, later thanking Mr. Shen for the partnership between Qualcomm and ASUS. “This is a product that has already launched 11ad 60 GHz technology,” he emphasized.
According to the latest IDC (International Data Corporation) Quarterly Personal Computing Device Tracker May 2017, the overall India Traditional PC shipment for Q1 2017 stood at 2.16 million units (i.e. quarter on quarter growth of 12.5 percent over Q4 2016 and year on year growth of 8.5 percent over Q1 2016).
The overall consumer PC market registered a shipment of 1.05 million units in Q1 2017, with a healthy 14.5 percent growth from the same period last year and 19.4 percent quarter on quarter growth.
“Post demonetization reform, market observed an upbeat demand owing to an optimistic shift in discretionary spending from consumers in first quarter of 2017,” says Manish Yadav , Associate Research Manager, Client Devices, IDC India.
The overall commercial PC market recorded a shipment of 1.11 million units in Q1 2017. On the backdrop of seasonality, execution of state-owned manifesto deals and increase spending from BFSI vertical, Q1 2017 observed a quarter on quarter growth of 6.7 percent and 3.3 percent year on year over Q1 2016.
“Commercial spending remained optimistic about the economic scenario and the potential for growth, despite uncertainty surrounding the stability of global economy,” says Sanjeev Sharma , Research Manager, Client Devices, IDC India.
“IDC India anticipates a short-term postponement and resistance by traders during GST implementation phase. But in the long run owing to this structured tax regime the effect will get neutralized and will propel growth owing to festive season,” adds Yadav.
With focus, around enriching gaming as potential segment in consumer business, OEMs are looking to revamp their product portfolio and upsell in mid to premium range. On the other hand, commercial business is expected to grow over the next few quarters driven by state owned education projects.
Top 3 Vendor Highlights:
HP Inc. led the market with a 29.5% share of the overall India traditional PC market in Q1 2017. In addition to their success in the consumer segment, HP Inc. picked up some key wins and executed a few state-owned education projects along with fulfillment of projects in the banking and financial sector. This has led to a 5.8% growth quarter on quarter in the overall India traditional PC market in Q1 2017.
Dell took the second spot with 22.5 percent market share in the overall India traditional PC market in Q1 2017. The vendor continues to drive new initiatives and programs to provide seamless experience of learning for students through technology. Owing to such initiatives the vendor grew by 19.9 percent quarter on quarter in overall traditional consumer PC market in Q1 2017. Simultaneously the Dell EMC merger has provided the vendor an extra space for customer expansion, which could prove to be beneficial in the near future as well.
Lenovo held on to the third spot, with a 17.7 percent market share in the overall India traditional PC market in Q1 2017 and recorded a quarter on quarter growth of 15.1 percent, owing to the complete execution of manifesto project. The vendor also grew by 16.9 percent quarter on quarter in the overall consumer market owing to the efforts observed in improving the after sales support with different initiatives using not just the traditional way, but also social media and other new age technologies.
China’s Lenovo Group announced results on Thursday May 25, for its fourth fiscal quarter and full-year ended March 31, 2017. It was a year of significant transformation for Lenovo which made good progress in implementing and executing its new “three-wave strategy,” designed to meet the critical business challenges of today, while positioning the company for continued long-term profitable growth.
As part of Lenovo’s transformation, the company put in place an aggressive new end-to-end ownership model to manage each business differently, led by strong new leaders, and is seeing improvements as a result.
“Despite challenging market conditions, Lenovo saw revenue resume to growth in the fourth quarter, after five quarters of decline,” said Yang Yuanqing, Lenovo Chairman and CEO. “To drive further growth, we have clearly defined the three-wave strategy. We will maintain PC leadership in scale, profitability and innovation in the first wave, while building our second wave, mobile and data center businesses into growth engines. Simultaneously, we will execute our third wave of “Device + Cloud” and “Infrastructure + Cloud” to capture the opportunities brought by new technologies. With this new strategy, we are confident to achieve long term, sustainable growth.”
For the fourth fiscal quarter, Lenovo’s revenue was US$9.6 billion, an increase of 4.9 percent year-over-year, fueled in part by a good performance in the PC/smart devices and mobile businesses. For the full-year ended March 31, 2017, Lenovo’s revenue was US$43 billion, down 4.2 percent year-over-year.
The company’s gross profit for the fourth fiscal quarter decreased 9.8 percent year-over-year to US$ 1.4 billion, while for the full year, gross profit fell 7.8 percent to US$6.1 billion. Operating profit for the fourth fiscal quarter was US$74 million. For the full year, Lenovo’s operating profit was US$672 million. Fourth-quarter net income was US$107 million, while net income for the full year was US$535 million, an increase of US$660 million year-over-year.
Basic earnings per share in the fourth fiscal quarter was 0.97 US cents or 7.56 HK cents, and for the full year basic earnings per share was 4.86 US cents or 37.71 HK cents. Lenovo’s Board of Directors declared a dividend of 2.63 US cents, or 20.5 HK cents per share for the fiscal year ended March 31, 2017.
For Lenovo’s PC and Smart Devices (PCSD) business group, which includes PCs, tablets and smart devices, its quarterly sales were up 4.9 percent year-over-year to US$6.7 billion. Quarterly shipments grew one percent to 14.4 million, four points better than the overall market. Pre-tax income for the quarter was US$288 million, a decrease of 4.7 percent year-over-year.
For the full year ended March 31, 2017, Lenovo’s PCSD sales were down 2.3 percent, but beating the overall market, at US$30 billion. Shipments for the year beat the market significantly by 7.1 points, with 66.6 million, while pre-tax income margin stood at five percent, a slight increase year-over-year.
Importantly, Lenovo continued to deliver strong results in both the fourth quarter and full year in the hyper-growth categories in this business, such as gaming, detachables, Chromebooks and Millennial PCs (in China). For example, Lenovo’s gaming and Chromebook shipments were up 20.5 and 38.2 percent respectively in the fourth quarter. Meanwhile Lenovo’s detachables grew at a double digit premium compared to the market, and Millennial PC continued its rapid rise in China with triple digit growth for the fourth quarter in a row.
Lenovo’s Mobile Business Group (MBG), which includes Moto and Lenovo-branded smartphones, saw 19.7 percent revenue growth in the fourth fiscal quarter outside of China,
with total sales of US$1.7 billion. Fourth quarter smartphone shipments increased 17.4 percent to 11.3 million units outside China, beating the market significantly by 12.8 points. For the full year ended March 31, 2017, overall sales were down 5.4 percent and pre-tax income margin decreased 1.9 points outside China.
In Asia Pacific and Latin America, led by success in India and Brazil respectively, Lenovo’s mobile business continued to improve throughout the year. In Western Europe, shipments were up in France, Germany and the UK, while in North America, Lenovo’s channel expansion plans are on track. In China, Lenovo added new leadership, re-aligned its strategy and product portfolio, and cleared inventory to introduce a new product lineup.
Recent preliminary results from Gartner, Inc. shows that worldwide PC (personal computer) shipments totaled 72.6 million units in the fourth quarter of 2016, a 3.7 percent decline from the fourth quarter of 2015. In total, for the year 2016, PC shipments totaled 269.7 million units, a 6.2 percent decline from 2015. The significance of PCs is diminishing as the smartphone trend and popularity of connected devices takes center stage. PC shipments have declined annually since 2012, while mobile broadband subscriptions have been growing by around 25 percent annually, increasing by approximately 190 million in Q3 2016 alone, Ericsson reports.
Mobile subscriptions are growing at around three percent year on year globally and reached 7.5 billion in 2016, according to Ericsson’s recent Mobility Report. The increased efficiency of smartphones is outweighing traditional PCs, making them less necessary to own. While Lenovo holds the position as the world’s biggest PC and laptop maker, it cannot hide from the fact that globally, PC sales in 2016 were down by 6.2 percent. Meanwhile, the number of mobile subscriptions exceeds the population in many countries, according to Ericsson.
"Stagnation in the PC market continued into the fourth quarter of 2016 as holiday sales were generally weak due to the fundamental change in PC buying behavior," said Mikako Kitagawa, principal analyst at Gartner. "The broad PC market has been static as technology improvements have not been sufficient to drive real market growth. There have been innovative form factors like 2-in-1s and thin and light notebooks, as well as technology improvements, such as longer battery life. This end of the market has grown fast, led by engaged PC users who put high priority on PCs. However, the market driven by PC enthusiasts is not big enough to drive overall market growth."
Ms. Kitagawa continued: "There is the other side of the PC market, where PCs are infrequently used. Consumers in this segment have high dependency on smartphones, so they stretch PC life cycles longer. This side of the market is much bigger than the PC enthusiast segment; thus, steep declines in the infrequent PC user market offset the fast growth of the PC enthusiast market."
In Ericsson’s Mobility Report, it says greater device affordability is encouraging new mobile subscribers in developing regions, while growth in mature markets is largely due to individuals adding more devices; meanwhile, PC sales are declining. What’s more, with 5G on the horizon, smartphones will be able to cater to even higher demands of service. The introduction of 5G, according to Ericsson, will accelerate transformation in many industry verticals, enabling new use cases in areas such as automation, IoT and big data.
Smartphones are becoming more dominant than PCs, but Ms. Kitagawa indicates that there is still hope for the PC market. Although the overall PC market will see stagnation, there are growth opportunities within the market such as the engaged PC user market, the business market and gaming. However, these growth areas will not prevent the overall decline of the PC market, at least in the next year, she says.
Four of the top six PC vendors experienced an increase in worldwide PC shipments in the fourth quarter of 2016, according to Gartner’s research. The top three vendors all increased their global market share in the fourth quarter. Lenovo maintained the number one position, as the company experienced shipment increases in North America and EMEA, while Asia/Pacific and Japan continued to be challenging markets.
In addition, HP remained in the second position and it has recorded three consecutive quarters of shipment growth. HP secured the top position in PC shipments in the US and EMEA, growing faster than the regional averages.
Dell also registered three consecutive quarters of shipment growth in Q4 2016. Dell continued to place PCs as a strategic business segment in commercial and consumer markets during 2016. Asus suffered the steepest decline among the top six vendors in the fourth quarter of 2016. The company has been shifting its PC strategy more toward the high-end market, which will allow it to maintain better profit margins. Gartner analysts said the falling shipment volume could be the cause of this strategy shift.
According to Ericsson’s Mobility Report, North America saw 405 million mobile subscriptions in 2016. Subscriptions associated with smartphones continue to increase, the report says, and have surpassed those for basic mobile phones. Fifty-five percent of all subscriptions are now for smartphones and, in Q3 2016, smartphones accounted for close to 80 percent of all mobile phones sold. In comparison, Gartner’s research says PC shipments in the US totaled just 16.5 million units in Q4 2016, a 1.3 percent decline from Q4 2016.
Five of the top six vendors in the US PC market experienced a shipment increase in the fourth quarter of 2016, according to Gartner. However, this was offset by a 20.9 percent decline in the ‘Others’ category, and a 48.3 percent decline in shipments by Asus.
"Similar to low-key back to school sales in 3Q16, big sales events, such as Black Friday, Cyber Monday and holiday sales are no longer effective marketing opportunities for PCs since PC purchases are generally driven by a 'need,' rather than 'want,' motivation," Ms. Kitagawa said. "PCs are not a preferred gift item any longer, as consumers gravitate toward other consumer electronics, such as virtual personal assistant (VPA) speakers, virtual reality (VR) head-mounted devices and wearables. Vendors and channels did not have high expectations for the holiday PC sales, so the marketing campaigns remained relatively quiet."
The consumer items that Ms. Kitagawa refers to – such as virtual reality headwear and wearables – fall under the IoT (internet of things) umbrella. Ericsson predicts that the number of projected IoT devices will reach 1.5 billion in 2022. This growth, according to the report, is due to increased industry focus and 3GPP standardization of cellular IoT technologies.
Europe, the Middle East and Africa saw a decline in PC shipments in 2016. PC shipments in EMEA surpassed 21.9 million units in the fourth quarter of 2016, a 3.4 percent decline year over year, according to Gartner. PC shipments to the consumer market were driven by good Black Friday sales in Western European countries, such as the UK and France, especially on traditional notebooks, ultramobile clamshells, the hybrid form factor and gaming PCs. Gartner's early estimates also show PC shipment growth in the business segment, led by Windows 10 deployments during the fourth quarter.
In addition, the Asia/Pacific PC market totaled 24.8 million units in the fourth quarter of 2016, a 3.9 percent decline from the fourth quarter of 2015, according to Gartner. The PC market was affected by two major events. First, the demonetization of the Indian currency in India led to weaker-than-expected consumer PC demand. Second, the success of China's 11.11 (Singles Day on 11 November) online shopping event gave a boost to consumer notebook sales.
Ultimately, growth in the number of connected devices is driven by emerging applications and business models, and supported by standardization and falling device costs, Ericsson reports. The traditional PC market is being swamped by the growing needs consumers have for mobility and convenience, which can be provided by smartphones and other connected devices under the umbrella of IoT.