The penetration rate of VR-enabled smartphones and tablets, as well as shipments of VR devices bundled with gaming consoles or PCs will continue to soar in the fourth quarter of 2016, according to Digitimes Research.Among these devices, shipments of VR video-enabled smartphones and VR devices bundled with consoles will be higher compared to other devices. Meanwhile, vendors of VR-enabled tablets and VR headset bundled PCs are advised to target niche markets initially before they make headways by coming out with products with reduced prices and enriched content, Digitimes Research commented.While VR applications are diverse, gaming and video are still the dominant VR applications in 2016. The successful launch of VR video-enabled flagship smartphones by Samsung Electronics in the first half of 2016 will encourage other vendors to follow suit. Additionally, Google and ARM are expected to update their VR video applications with reduced algorithm requirements in the fourth quarter of 2016 which will foster the development of more VR video-enabled mobile devices. Shipments of VR video-enabled smartphones are expected to reach 70 million units in 2016, accounting for 5% of global smartphone shipments, Digitimes Research estimated.Since the price/performance ratio of games consoles bundled with VR headsets is higher than for PCs bundled with VR headsets on average, shipments of VR devices supporting consoles will be higher than VR devices paired with PCs in the fourth quarter of 2016, Digitimes Research indicated. Sony is expected to ship over three million PlayStation VR devices in the quarter, far higher than rival vendors.

The top-5 notebook vendors and top-3 notebook ODMs saw their shipments rise 27% and 31% on month in August thanks to inventory preparation for the year-end holidays in Europe and North America, Windows 10's annual upgrade, and mass shipments of Intel's Kaby Lake processors.Hewlett-Packard's (HP) new product releases for August successfully widened the vendor's shipment gap by nearly 700,000 units with number two Lenovo. HP stayed firmly as the largest notebook vendor in the month. Dell turned its focus to the consumer sector in August, but its shipments only grew a single-digit percentage on month, according to Digitimes Research's latest report on notebook shipments.Asustek Computer and Acer both enjoyed over 10% on-month growths in August thanks to seasonality.With HP's significant shipment growth in August, the top-3 ODMs, which are all suppliers of HP, together achieved higher on-month growth than the top-5 vendors combined, while ODM's combined on-year shipment growth also turned positive for the first time in the past 16 months.Quanta benefited from HP's orders the most in the month, growing nearly 40% from July.

Buoyed by increasing investments by makers and rising popularity in use, collaborative robots, which are designed to promote collaborative operations between human being and machines, are expected to become a major force to push forward Industry 4.0 smart manufacturing, according to Digitimes Research.Meanwhile, the release of the ISO/TS 15066 safety standards not only ensure the safety of the human being and machines, but also endorses the ongoing collaborative robot business model, paving the way toward low-cost and multi-application developments for industrial manufacturing, Digitimes Research said.The development of collaborative robots has made headway recently as manufacturers have been seeking to roll out new products or solutions to cope with the rise of Industry 4.0. Collaborative robots are packed with soft materials to cover sharp edges and are equipped with advanced sensors which will enable them to slow down or even stop to protect the safety of workers; the built-in vision systems within the robots allow operators to directly stimulate robotic arms to move and guide the actions, and even enable robots to operate independently utilizing their memory pathways.Switzerland-based ABB (YuMi brand robotic products), Germany-based Kuka (LBR iiwa), Japan-based Fanuc (CR-35iA), and Yaskawa Electric (Motoman-HC10) all launched their respective collaborative robots in 2015 with prices ranging from EUR20,000-25,000 (US$22,350-27,938). While Japan-based makers currently are still focusing on development of collaborative robot products, fellow companies in Europe have expanded their R&D efforts to include the development of system products and low-cost robotic models, Digitimes Research indicated.While industrial robots are designed to work in the segments which have a long production cycle such as the automotive industry, collaborative robots, which are easy for installation, relocation and teaching, are suitable for the electronics industry where production cycle is short and automation is not so prevailing. They are also favorable for small and medium businesses as they are less expensive.The release of ISO/TS 15066 safety standards in April 2016 will help foster a fast growing collaborative robot market as the document highlighted the design and installation requirements for collaborative robots, as well as the guidelines for security risk assessment, allowing manufacturers and parts developers to develop related products complying to the standards, Digitimes Research commented.

According to a US-based research institute forecast, by 2020, 36% of car insurance will be converted to usage-based insurance (UBI) where insurance costs are calculated based on individual driving behavior. Some described this custom-tailored car insurance model a disruptive innovation comparable to Uber and Zipcar; this alone shows that the connected car and big data represent golden opportunities for businesses.The technology behind intelligent transportation primarily centers on leveraging data gathered from a wide array of sensors in vehicles and on roadsides. The data is extracted, processed and converted into meaningful information through big data analytics, and delivered to people, vehicles and roadside infrastructures interconnected by communication systems to improve on-road interactions, transport safety and travel comfort. One of the most vital technologies powering intelligent transportation is the connected car.Today, the combined strengths of the connected car and big data not only have created various intelligent transportation applications, but also redefined automotive designs, opening up many new business models and opportunities.The Connected Car Redefining Automotive DesignsTony Chiu, Product Division Manager of NEXCOM's Mobile Computing Solutions Business Unit, states that an increasing number of innovations in the automobile industry are on the horizon, bringing new capabilities to intelligent vehicle applications. Furthermore, the advancement of sensor technology and the increase use of different types of sensors in vehicles have enabled a greater degree of detection accuracy. For example, accelerometers with robust thermal stability paired with gyroscope can now more accurately calculate the angular velocity of vehicles to increase the precision of motion detection and control.In addition, the combined use of in-vehicle sensors and cameras can enable advanced driver assistance systems (ADAS) to provide drivers alert information such as relative speed and distance to other vehicles or entities to avoid collisions or even actively apply brakes before impacts. This inclusion of active ADAS will enable vehicles to shift from passive safety systems into the realm of active safety systems, significantly reducing the potential rate of accidents with proactive measures.Using the timing of a braking system as an example, Chiu explains, "ADAS will first operate in 'semi-active' mode and warn the driver about an imminent collision. If no action is taken by the driver, ADAS will actively take over control of the brakes. However, understanding the brake intervention time is an intricate task as it relies on sensors and cameras to collect data on the vehicle speed, road smoothness and weather conditions, and then carefully examine the information to calculate the appropriate time of intervention. NEXCOM in-vehicle computers have, on numerous occasions, taken on the role for algorithm development for many simulated ADAS applications in a range of vehicles, from passenger cars to large mining trucks."Compared to smaller passenger cars, large mining trucks contain larger vehicle parts and are often located in large mining sites where any event of vehicle breakdown can be serious. To provide safety, in-vehicle computers can also be used for ADAS to ensure mining trucks travel within safe distances. Furthermore, in-vehicle computers integrated with sensors can detect pupil dilations, eyelid movements and head tilt angles to determine driver's mental awareness. If signs of drowsiness are detected, in-vehicles can activate seat vibrators to keep driver's attentiveness in check.NEXCOM's in-vehicle computers have branched out into agricultural equipment as well. Used on driverless farm tractors in a similar manner to ADAS on passenger cars, NEXCOM in-vehicle computers provided tractors with precise route directions to accurately guide tractors throughout the fields without traversing out of path to prevent crop damages, while also ensuring tractors accurately perform land preparation, plantation, fertilization, irrigation and other farming operations.New Business Models for Value-added Business TransformationChiu observes that one of the most clear examples of new business models driven by the connected car and big data is UBI. UBI uses on-board diagnostics (OBD) information to analyze driver's driving pattern to determine relevant risk factors and associated insurance costs, diverging away from traditional age-based pricing. However, with insurance companies now promoting UBI, it is often more ideal to outsource UBI implementation to a third-party vendor compared to developing UBI internally as it involves high hardware and software cost. Third-party vendors can offer a cost-effective and complete hardware and software UBI solution with relevant data to insurance companies. This model of approach alone is enough to spur many other new business models.In addition to the emerging UBI transition, Chiu envisions that other new business models will continue to develop. The most notable one to take note of is Product as a Service (PaaS), as it represents a blue ocean opportunity for businesses competing in the red ocean. This opportunity gives providers of fleet management systems, taxi infotainment services and car interiors the chance to transform from pure hardware vendors into value-added service providers to capitalize on a stream of maintainable earnings.Connected cars are driving new businesses opportunities, creating more intelligent transportation applications, and redefining automotive designs.

August 2016 average retail price for 7W LED light bulbs (equivalent to 40W incandescent ones) in the China market increased 6.4% from June to CNY26.5 (US$4.0), while that for 9W models (equivalent to 60W incandescent ones) decreased 13.4% to CNY26.6, according to Digitimes Research.Average retail prices for 40W- and 60W-equivalent LED light bulbs in the Japan market in August stood at JPY1,293 (US$13.0) and JPY1,961 respectively, with the former slipping 6.9% from June and the latter growing 7.0%, Digitimes Research indicated.April average retail prices for 40W- and 60W-equivalent LED light bulbs in other markets were: KRW7,839 (US$7.1, up 1.2% from June) and KRW12,302 (down 0.3%) in South Korea; US$18.3 (up 8.9%) and US$20.3 (down 1.9%) in the US; EUR6.8 (US$7.7, down 4.7%) and EUR8.2 (down 5.6%) in Europe.Philips 40W-equivalent LED light bulbs and Osram 60W-equivalent models for sale in the South Korea market had the highest average lumen-price ratios of 124.7lm/US$ and 201.8lm/US$ respectively in August. In terms of luminous efficiency, Toshiba 40W-equivalent LED light bulbs and Hitachi 60W-equivalent models available in the Japan market had the highest average level of 84.2lm/W and that of 109.2lm/W, respectively, in August.

The exhibition at Touch Taiwan has been beyond touch panels and technology, for Taiwan-based TFT-LCD panel makers AU Optronics (AUO), Innolux and Chunghwa Picture Tubes (CPT) and EPD (electrophoretic display) e-paper maker E Ink Holdings (EIH) showcased various display panels at the Touch Taiwan 2016 taking place in Taipei during August 24-26, according to Digitimes Research.At the exhibition, these makers focused on ultra-thin, narrow-bezel and LCD TV and monitor panels, thin, narrow-bezel and In-Cell or On-Cell notebook panels as well as automotive display panels, Digitimes Research indicated.AUO showcased narrow-bezel 8K4K curved-surface LCD TV panels based on quantum dot technology featuring high color saturation and curved-surface high-response-rate LCD monitor panels for use in gaming, while Innolux exhibited 100-inch 4K2K LCD TV panels and narrow-bezel LCD monitor panels which can also be used in mosaic public information displays (PIDs).For automotive displays, AUO, Innolux and CPT showcased 12.3-inch rectangular dashboard panels. In particular, AUO and Innolux showcased AMOLED dashboard panels and rectangular PID panels, while EIH exhibited flexible e-paper PID panels which are readable under sunlight. In addition, AUO and Innolux showcased large-size touch panels based on infrared optical technology.

Shipments of handsets, mostly smartphone models, by Taiwan-based handset makers are expected to peak at 14.49 million units in the third quarter of 2016 before sliding to 13.47 million units in the fourth quarter, according to an estimate of Digitimes Research.�CSmartphone shipments from brand vendors including Asustek Computer, HTC and Acer in the second half of 2016 will be higher than those they shipped in the first half of the year, while ODMs Compal Electronics, the Foxconn Group, Arima Communications and Wistron are expected to see their shipments decline during the July-December period as compared to the previous six months, Digitimes Research noted.However, Compal and Arima will see their shipments remain strong in the third quarter due to shipments of new models to Sony Mobile Communications, while Wistron will suffer shipment declines in the second half due to decreased orders from BlackBerry.Asustek and HTC will continue to be the top-2 Taiwan-based handset suppliers in the second half of 2016. Buoyed by the release of ZenFone 3 series products, Asustek is expected ship 4.4 and 5.0 million smartphones in the third and fourth quarters, respectively.HTC's smartphone shipments are expected to reach 3.4 million units in the third quarter before declining to 3.2 million units in the fourth. HTC may also begin ship new Nexus devices in September, Digitimes Research indicated.

Due to increasing use of display panels in cars, global shipments of automotive display panels will increase from 157 million panels in 2015 to 207 million units in 2019, equivalent to a CAGR of 7.2%, according to Digitimes Research.Automotive displays consist of CID (central information displays), dashboard displays, rear-view mirror displays, back-seat entertainment displays and heads-up displays, Digitimes Research indicated.CID takes up the largest portion of automotive display shipments, with mainstream specifications shifting from 7- to 8-inch WVGA (840 by 480) or WXGA (1280 by 720) to 10-inch Full HD.Due to demand for larger sizes, higher resolutions and more power-savings, LTPS (low-temperature poly-Si) TFT-LCD or IGZO TFT-LCD panels have replaced a-Si TFT-LCD panels for high-end automobile models. Currently, Japan Display and Sharp dominate the supply of LTPS TFT-LCD and IGZO TFT-LCD automotive panels.

Worldwide tablet shipments dropped 9.4% sequentially and 13.2% on year to reach only around 40 million units in the second quarter of 2016. This was due to overall weak demand for tablets; seasonality; dropping sales of Wi-Fi-only tablets, tablets with phone functionality and 2-in-1 devices; and shortages for key components such as panels.Digitimes Research originally expected the release of the 9.7-inch iPad Pro to raise Apple's tablet shipments sequentially in the second quarter, but the volume turned out to drop 4% sequentially and reached only 9.6 million units in the quarter because the 9.7-inch iPad Pro took a lot more demand from its 12.85-inch counterpart than expected, while Apple also stopped producing the iPad Air in the quarter.Among the three major camps, white-box players performed the weakest in the second quarter. With more large-size independent design houses (IDH) quitting the market plus shortages of components including panels, memory and processors, white-box players saw their combined shipments drop to a new low at 13.8 million units in the second quarter.Non-Apple first-tier vendors' inexpensive tablets were mostly released in the second quarter, but combined shipments were down 7.1% sequentially to reach only 16.98 million units as product differentiation, number of models, and price competitiveness were all inferior to in 2015.Samsung Electronics was the largest vendor in the camp in the second quarter, but its new tablets launched in the quarter did not help its shipments grow from the first. Amazon maintained strong shipment performance in the second quarter slightly surpassing Lenovo to rank second. Lenovo and Huawei ranked three and four.As for Taiwan-based ODMs, combined shipments also reached to a new low at 13.52 million units in the second quarter since orders for iPads and Microsoft Surface products were down from a quarter ago. Foxconn Electronics (Hon Hai Precision Industry) and Compal Electronics were the largest and the second largest tablet ODMs in the quarter, with shipment shares both up from a quarter ago thanks stable orders from US-based clients.

Shipment of mobile application processors for smartphones and tablets in the China market are expected to grow 18.6% in the second half of 2016 from those shipped in the first half of the year due to seasonal demand and inventory build-ups for the first quarter of 2017, according to Digitimes Research.Due to a lack of high-end solutions, MediaTek is expected to see its smartphone AP shipments grow 6% sequentially in the third quarter, and the growth rate will dip to 5.6% in the fourth quarter despite seasonal demand, Digitimes Research said.Qualcomm will see shipment momentum of its mid-range to high-end smartphone APs continue in the second half of 2016 as its mobile APs have been verified for being able to support LTE Cat. 7 specifications as required by China Mobile. With additional orders from new clients, Qualcomm's smartphone AP shipments will grow 12.9% sequentially in the third quarter and expand another 26.6% in the fourth quarter.Spreadtrum is expected to begin small volume shipments of its 4G SC98960 solutions for the entry-level to mid-range smartphones in the fourth quarter of 2016. Although the SC98960 also supports LTE Cat. 7 technology, shipments of the chip will be limited due to its late launch and issues related to its software, Digitimes Research commented. However, buoyed by its existing portfolios, Spreadtrum will see its shipments increase 10.6% and 6.5%, respectively, on quarter in the third and fourth quarters.With regard to tablet APs, MediaTek is expected to have its shipments grow 9.1% and 16.7% on quarter in the third and fourth quarters, respectively, on inventory build-ups by clients. Meanwhile, Rockchip Electronics' tablet AP shipments will grow 15.4% and 16.7%, respectively, during the same quarters.Allwinner Technology will see its tablet AP shipments surge 90% sequentially in the third quarter thanks to the launch of new 64-bit products, but the growth rate will slow to 7.1% in the fourth quarter on seasonality. Intel will post a 28.6% growth in the third quarter as it continues to clear out its SoFIA solutions before recording a 44.4% decline in the fourth quarter on phasing out of the tablet APs.