Observing the OTT/TV market in February, the US Federal Communications Commission (FCC) has proposed to make the set-top box (STB) market more open, allowing consumer electronics players to improve their competitiveness, while Korea-based TV brand vendors are shifting their focuses away from the 3D TV market.FCC tried to open the STB market previously with CableCard, but do not achieve solid results. This time, the FCC is demanding cable service providers open up their channel information to allow consumer electronic players to develop TVs or STBs that can display channel listings from different service providers.With the move, consumer electronics players will be able to enhance their competitiveness with a better user interface or added functions, and give consumers cheaper and better product choices. However, Digitimes Research expects cable service providers to boycott the proposal using technical methods.At the same time, Korea-based LCD brand vendors reportedly are moving their focuses away from the 3D TV market in 2016. Digitimes Research believes Samsung will continue to keep 3D technology in its LCD TVs, but will no longer provide expensive 3D glasses to consumers since Samsung's Shutter Glass 3D technology only added a little cost.LG Technology uses Pattern Retarder technology for 3D effects and the larger the panel, the higher the cost. Adding 3D into its high-end models could put related models at a disadvantage against competitors, but for small-size models, the technology may benefit the Korea-based vendor, Digitimes Research noted.

Observing China's mobile market in 2016, Digitimes Research expects smartphone AP price competition to grow fiercer, while Qualcomm and MediaTek will continue to push Internet of Things (IoT) to seek new business opportunities.Second- and third-tier AP suppliers are expected to experience a wave of mergers and acquisitions as smartphone demand continues to weaken. As for 5G network roll-outs in China, Tsinghua Unigroup's lineup in the semiconductor industry supply chain and Huawei, which has been chosen by the China government as the pioneer of 5G network standards, have both been certified to operate 5G network technologies in outdoor areas.Digitimes Research found that China's smartphone market was able to maintain strong shipment growth in 2015 mainly due to handset replacement due to 4G LTE network deployments. In the third quarter of 2015, China's 4G handsets already account for 87% of the country's overall handset shipments, growing significantly by 42pp from the same period a year ago.

If Foxconn Electronics bails out Sharp, China-based Nanjing CEC Panda LCD Technology is likely to be at a disadvantage competing for smartphone panel orders from China-based vendors, according to Digitimes Research.CEC Panda LCD acquired a 6G a-Si TFT-LCD factory from Sharp, has invested in a 8.5G factory on a joint venture basis with Sharp, and transferred IGZO TFT-LCD technology from Sharp.CEC Panda LCD started production of IGZO TFT-LCD panels for use in smartphones in October 2015, but few China-based smartphone vendors have adopted such panels due to low yields.If Foxconn bails out Sharp, Sharp may withdraw from the already crowded smartphone panel market in China and focus on high-end panels for the international market. If Sharp withdraws, its market share is expected to be occupied by Taiwan-based Innolux, of which Foxconn is the major shareholder, as well as China Star Optoelectronics Technology and newly established LTPS TFT-LCD factories in China, which would make CEC Panda LCD a second-choice supplier of IGZO panels for use in mid-range smartphones.

In an interview with Machina Research during Mobile World Congress, Patrick Kuo, CEO of ThroughTek, shares his thoughts on the mobile industry and addresses challenges in developing IoT devices for surveillance and smart home market.Machina Research: For readers who aren't very familiar with ThroughTek, can you introduce us to your company?Patrick Kuo: ThroughTek is a software company, providing turnkey IoT solution and cloud services with the Kalay Platform. Our extensive partnership with chipset vendors enables businesses to easily implement and rapidly deploy IoT ecosystems. We work mostly with enterprises, such as technology brands, device manufacturers, system integrators, and service providers to deliver managed services for multimedia and smart home application with integrated products.What are ThroughTek's main focus areas?Security continues to lead in smart home applications, so delivery of multimedia content plays a large part in surveillance. Our streaming server, is what largely differentiates us from our competition, supporting real-time two-way communication for the transmission of audio and images simultaneously. We offer video recording features with event detection to automate event capture capability and video playback to offer a complete smart home security.ThroughTek also works with device makers to extend their application use. We have started to see an increase in demand for smart home devices that relate to security, such as doorphones, which are now wireless and require remote access for monitoring and controlling door entry. Lighting, on the other hand, works well when combined with motion sensors to improve levels of comfort for the home, and adds a certain level of security when combined with wireless cameras. Robotics and telecare devices are another area we expect to make an impact in the near-future, used for the elderly and for child care to provide improved communication and interaction between end points. At the same time, we are currently improving our service offerings and expanding our partnerships to integrate third-party services to enrich applications for the delivery of IoT security, live broadcast and video analytics.Additionally, ThroughTek is currently developing the data collection and analytical framework of the Kalay Platform to define standards for data processing and machine learning. Through adaptive learning, we hope to offer an enterprise solution to capture and analyze data in real time to create values for predicting anomalous events or behaviors. Our goal is to provide an end-to-end solution to help enterprises connect devices and then manage and make the most out of their data through business intelligence.Until now, ThroughTek has focused a lot of attention on the surveillance segment. Which sectors do you think are particularly ripe for growth in 2016?Absolutely, the security and surveillance market was our main focus last year, but it will continue to grow across the globe, particularly as new applications create different types of demand. We are seeing the smart home market slowly mature, as telecoms and service providers are waking up and beginning to integrate security systems as part of their overall services. This has given us the opportunity to work on delivering increased manageability to devices and sensors for energy saving, security, and comfort for a more comprehensive smart home solution. End users can assign device groups, control lighting, room temperature, and more from their smart phones, wherever they happen to be.Can you share some thoughts on what the mobile industry is doing to support IoT, in particular as it affects the areas on which ThroughTek focuses?As consumers begin to buy-in with IoT, we will start to see device manufacturers realize the need to work closer with software companies. Semiconductor companies will be required to provide comprehensive solutions — for instance, those that involve security, software, or systems integration services in addition to hardware. ThroughTek being an example, we have always and will continue to work closely with our chipset partners to ensure that embedded chips within devices will be able to support software applications and increase product innovation.With the Internet of Things, real-time communications is key in real world networking environments. IoT growth will require comparably significant infrastructure development. Telecoms and service providers will need to improve network infrastructures in order to manage largescale data transportation, as more devices and sensors will be processing and handling data. The ability to operate efficiently and scale management of network infrastructure will be required to achieve the promise of the Internet of Things. Telecoms and service providers will also need to evaluate whether their pricing models will be competitive enough to scale and meet consumer needs.

Average retail pricing for 7W LED light bulbs (equivalent to 40W incandescent ones) in the China market decreased 5.5% from December 2015 to CNY30.9 (US$4.8) in February, while 9W models (equivalent to 60W incandescent ones) also saw a drop of 3.0% to CNY32.7, according to Digitimes Research.Average retail prices for 40W- and 60W-equivalent LED light bulbs in Japan in February stood at JPY1,413 (US$13.0) and JPY2,086 respectively, the former slipping 12.8% from December and the latter dropping 17.9%, Digitimes Research indicated.February average retail prices for 40W- and 60W-equivalent LED light bulbs in other markets were: KRW10,582 (US$9.70, up 2.1% from December) and KRW12,064 (up 0.5%) in South Korea; US$17.80 (down 1.1%) and US$19.40 (down 5.8%) in the US; EUR8 (US$8.90, up 8.1%) and EUR8.30 (down 4.6%) in Europe.Samsung 40W-equivalent LED light bulbs and Osram 60W-equivalent models for sale in the South Korea market had the highest average lumen-price ratios of 117lm/US$ and 154.5lm/US$ respectively in February. In terms of luminous efficiency, Toshiba 40W-equivalent LED light bulbs and 60W-equivalent models available in the Japan market had the highest average levels of 83.7lm/W and 105.1lm/W respectively.

Viewing that Samsung Display and LG Display have started volume production of flexible AMOLED panels for use in smartphones and other mobile devices, China-based panel makers BOE Technology, Kunshan Visionox Display, Guangzhou New Vision Opto-Electronic Technology have also been developing such panels, with Kunshan Visionox planning to begin volume production in first-quarter 2017, according to Digitimes Research.BOE, Kunshan Visionox and Guangzhou New Vision initially focus on 9.5-, 4.6- and 5.0-inch, respectively, flexible AMOLED panels, Digitimes Research indicated.The three China-based makers adopt PI (polyimide) substrates for flexible AMOLED panels. For TFT backplanes Kunshan Visionox adopts LTPS while the other two adopt Oxide TFT.Judging from the difficulties other makers have experienced developing such panels, Kunshan Visionox is unlikely to begin volume production as planned, and there will probably be a delay of 1-1.5 years.China-based Tianma Micro-electronics, China Star Optoelectronics Technology and Truly Opto-electronics have also been developing non-flexible AMOLED panels.

Total handset shipments by Taiwan-based brand vendors and ODMs are expected to decline 13.3% on quarter and 11.4% on year to 15.55 million units in the first quarter of 2016, affected by seasonal factors, according to Digitimes Research.Shipments by brand vendors HTC, Asustek Computer and Acer combined will slide 7-8%sequentially in the first quarter, while those shipped by ODMs, including Compal Electronics, the Foxconn Group, Arima Communications and Wistron, are expected to decrease 20%, Digitimes Research estimated.Shipments of some models to Sony Mobile Communications and Microsoft by local ODMs will continue to decrease in the first quarter as these models are to enter the EOL (end of line) phase of their sales cycles, Digitimes Research noted.Microsoft has not yet released orders for new models to ODMs, affecting shipments of its production partners Foxconn and Arima in the first quarter. However, Compal will see its shipments increase slightly in the quarter thanks to orders from China-based LeTV.For shipment rankings, Asustek is expected to be No. 1 among brand vendors and ODMs with its shipments reaching 4.5 million units in the first quarter. Compal will take the second position with shipments of 3.5million units, with HTC coming in third with shipments of 3.2 million units, Digitimes Research said.

Total handset shipments by Taiwan-based brand vendors and ODMs reached 17.94 million units in the fourth quarter of 2015, decreasing 5.7% on quarter and 29% on year, according to data compiled by Digitimes Research.Among handset vendors, HTC and Acer saw their smartphone shipments increase in the fourth quarter of 2015 compared to a month earlier, while Asustek Computer suffered sequential shipment decline during the period.Combined shipments of handset ODMs, including Compal Electronics, Foxconn, Arima Communications and Wistron, dropped 20% sequentially in the fourth quarter, Digitimes Research noted.Orders from Sony Mobile Communications, Microsoft Mobile and BlackBerry continued to decrease in the fourth quarter, affecting shipments at Taiwan-based ODMs.Arima shipped less than 1.5 million smartphones in the fourth quarter as ODM client Asustek delayed some shipments to 2016. Although Compal received new orders from China-based LeTV in the quarter, the new orders were not sufficient enough to make up for the decreased orders from other clients, said Digitimes Research.HTC regained its title as the top handset supplier in Taiwan in 2015, but saw its shipments continue to slide for the fourth consecutive year, to 16.9 million units. Asustek managed to double its shipments to 14 million units in 2015 and ranked as the fourth largest supplier, trailing after Foxconn and Compal.For all of 2015, combined handset shipments at Taiwan's ODMs and brand vendors reached 76.58 million units, decreasing 9.7% from a year earlier.

Japan-based telecom carrier NTT DoCoMo began establishing Uchisuma (smart family) experience zone in its stores and distributors' stores on October 16, 2015, looking to help consumers see the convenience brought by high speed Internet combined with network-supported home appliances. The telecom carrier is pushing cheap prices for the combination of fixed and mobile networks to attract demand from home users, and such a demand is growing to become a potential business opportunity, Digitimes Research's latest report about Japan's smart family market shows.DoCoMo launched DoCoMo Hikari network service, which combines NTT East and West's optical fiber fixed network with mobile networks in March 2015. The service provides friendly pricing to attract home users, and the company started pushing the Uchisuma experience zone half of a year later to let consumers that mainly use handsets, understand the changes offered by optical fiber services, and is pushing a new business model that bundles fixed and mobile network services.The Uchisuma's optical fiber network is able to transmit 1Gbps and showcases DoCoMo's in-house developed software/hardware applications such as d Market, family helper, Runtastic for Docomo fitness tracking, and surveillance services, as well as the OHaNas robot and the Sumakame for docomo CS-QR10-d surveillance system. In addition, NTT DoCoMo has also partnered with Sony and Philips Electronics Japan to develop smart lighting, wearable devices and home theater products that support the network.d Market is a platform DoCoMo specifically designed for smartphones and tablets and reached 14.26 million users by January 2016. dTV, a video streaming service, is the most used service on the platform, and DoCoMo is looking to expand the service from mobile devices to living rooms via Uchisuma.Although DoCoMo is not very familiar with the smart home market, the company is still expected to achieve strong results du to its large user base and range of services, Digitimes Research forecasts.

Communication technology using LED diodes and image sensors offers many potential applications, such those for enhancing shopping, entertainment purposes and tourism, according to Digitimes Research.Such applications would only need support of inexpensive devices.Image sensor communication technology works when LED lighting with embedded ID signals is projected onto a target object and smartphone cameras are used to scan the object to receive the ID signals from the reflected light. The smartphones can then display the information based on installed application software, Digitimes Research indicated.Image sensor communication technology is currently used in mostly indoor applications, but has great potential for outdoor ones in the future.