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Tuesday, November 1, 2011

Samsung vs. Apple

Will Samsung's success in Smartphones help the bottom line on a consistent basis? A bit of a risky assumption given the competition they face from Apple. We also know full well that people held back purchases of a new phone with the news of the release of the Iphone4s (I did). Those new record sales from Apple will be in the next quarter reported, so we will see how Samsung does in the next round. Overall this continues the issue with the struggle in the consumer electronics industry to profit from this business.

JZ


SEOUL—Samsung Electronics Co. made headlines for passing Apple Inc. in smartphone shipments during the just-ended third quarter, but the company's results also showed that it is making headway in reducing the volatility of its profits, a development that is likely to have longer-term significance for investors.

Samsung's profits have made broad swings for years, usually due to pricing forces in the chip industry that were beyond the South Korean company's control. The quarterly results that Samsung released Friday—a 23% drop in profit against a record result in the year-earlier period—were better than expected and, coming amid global economic uncertainty, amounted to a sign that long-term structural bets were starting to pay off for the company.

"Our efforts to create a balanced earnings structure between component and set businesses are beginning to materialize, which will lead to more stabilized earnings," Robert Yi, the company's chief of investor relations, told analysts during a conference call.

Samsung became a force in the electronics industry in the 1980s and later a mainstay holding of emerging-market investors. But all that time, Samsung shares have been subject to big swings in value, mainly shaped by the ups and downs of pricing and profits in memory chips, which for years was Samsung's biggest business.

Even now, analysts' research and forecasts for the company's earnings—and even Samsung's daily share-price movements—are influenced heavily by expectations and developments in the semiconductor market.

But the latest results showed that a multiyear effort to diversify Samsung's chip business had reduced the impact that the current cyclical downturn in prices of memory chips for personal computers had on the company. Sales of memory chips for data centers and fast-growing sales of logic chips, which Samsung makes for digital cameras and other gadgets, provided a cushion to the division's profitability.

Meanwhile, the rise of smartphones pushed Samsung's cellphone business past the chip business in both revenue and profit. The two businesses together offset a third consecutive loss in Samsung's liquid-crystal-display division and marginal profit in its consumer-products unit.

Samsung's net profit totaled 3.44 trillion won, or $3.11 billion, in the third quarter, down from earnings of 4.46 trillion won in the same period a year earlier. Revenue increased 3% to 41.27 trillion won from 40.23 trillion won.

The company shipped about 88 million cellphones during the quarter and about 28 million smartphones, which have higher profit margins, passing Apple's shipment of 17 million smartphones.

Samsung shifted its cellphone mix sharply into smartphones this year. In the third quarter of last year, the company shipped 71 million cellphones, just seven million of which were smartphones.

The change drove Samsung's telecommunications unit to a third-quarter operating profit of 2.52 trillion won, about 59% of the company's overall operating profit of 4.25 trillion won.

The unit's operating-profit margin of 16.9% was the highest since 2004, and executives said they expect it to stay in the high teens for the next few years.

The company since April has been engaged in a high-profile legal battle with Apple over smartphone and tablet-computer patents and lost some preliminary court rulings in several countries. But Friday's results showed that the dispute has had little impact on Samsung's performance so far.

Write to Evan Ramstad at evan.ramstad@wsj.com

Sony Reorganizes Television Management Again

See the article below - Sony continue to struggle with their TV division. Trying to find a way to be profitable in the industry has been extremely hard. Panasonic just recently complained about how quickly TVs are becoming a commodity.

Still a lot to be said for understanding the Customer (not retail partner, but actual TV purchaser), and getting the right featured product at the right price for them. This is no easy task considering what the BRANDS want to do for their BRAND, as well as the Retailers want to do for their brand. Getting through the Component mess, past the brand marketing stuff, and working with retailers strategy is an incredible challenge to get product to the market a customer WANTS, and is willing to pay a certain price for.

Doing it = PROFIT , not just for the Brand, or the Retailer, but the value the customer receives has everyone win.

Is is time the consumer electronics industry got back to figuring that out. We will only continue to have success around flashy marketing / product of the moment which is not one that can be maintained.

JZ

 

Sony Reorganizes Television Manufacturing Business in Drive to Stem Losses

Q

Sony Corp. CEO Howard Stringer

Sony Corp. CEO Howard Stringer
Chris Ratcliffe/Bloomberg
Howard Stringer, chairman and chief executive officer of Sony Corp. said TVs remain vital to Sony’s sale of related products, including Blu-ray players and video cameras.
Howard Stringer, chairman and chief executive officer of Sony Corp. said TVs remain vital to Sony’s sale of related products, including Blu-ray players and video cameras. Photographer: Chris Ratcliffe/Bloomberg

Sony Reorganizes Television Business in Struggle for Profit

Sony Reorganizes Television Business in Struggle for Profit
Kiyoshi Ota/Bloomberg
Customers look at Sony Corp. Bravia televisions at an electronics store in Tokyo, Japan.
Customers look at Sony Corp. Bravia televisions at an electronics store in Tokyo, Japan. Photographer: Kiyoshi Ota/Bloomberg
Sony Corp. (6758), reeling from seven consecutive annual losses in television manufacturing, plunged the most in more than seven months in Tokyo after announcing a reorganization of the business into three groups.
One group will oversee the liquid-crystal-display operations, another will coordinate contract manufacturing and a third will oversee the development of next-generation sets, Ayano Iguchi, a spokeswoman, said by telephone. The changes take effect today, a day before the company announces earnings.
Sony, which sells products ranging from PlayStation game consoles to life insurance, is trying to compete against Samsung Electronics Co. and low-cost TV set maker Vizio Inc. in an industry where sales have stagnated in developed countries. Chief Executive Officer Howard Stringer has said TVs remain vital to the Tokyo-based company’s sales of related products, including Blu-ray players and video cameras.
The stock slumped 6.3 percent to 1,576 yen at the close of trading in Tokyo. Sony has lost 46 percent of its market value this year, compared with a 16 percent decline for the broader Topix index.
Samsung, the world’s biggest TV maker, has gained 4.3 percent this year and LG Electronics Inc. (066570), the No. 2, has dropped 38 percent.

Smart TVs

Sony makes LCD and LED TVs, sets that connect to the Internet using Google Inc.’s Android operating system and models that let users watch video in 3-D. The company uses other manufacturers, including Taipei-based Hon Hai Precision Industry Co., to produce lower-end sets.
Sony has indicated it will create a separate unit to handle the commodity hardware side of the TV business, said Ben Bajarin, director of consumer technology practice at consulting firm Creative Strategies Inc. in Campbell, California.
The other units would be free to work on so-called smart TVs, which are more expensive sets that can pull content off the Internet, Bajarin said in an interview. These groups also would look at using Sony’s music, movie and video-game assets in high-end TVs, tablets and smartphones.
“They are taking a much harder look at the three pillars of their business,” Bajarin said. “It makes sense for them to have more of the manufacturing side outsourced.”
Investors have been awaiting the company’s turnaround plan after Sony, Japan’s largest exporter of electronics, announced in August that a strategic review of the business was under way.

Panasonic, Toshiba

“Sony needs to focus on the strength of its mobile and set products,” Eiichi Katayama, a Tokyo-based analyst at Bank of America Corp., wrote yesterday.
Other Japanese TV manufacturers also are trying to turn around their business. Panasonic Corp. (6752), the maker of Viera televisions, yesterday forecast its biggest annual loss in 10 years and cut its annual TV sales target to 19 million from 25 million.
Toshiba Corp. (6502), the maker of Regza televisions, said profit fell 19 percent as a strengthening yen eroded overseas sales. The falling prices of TVs and the end of a sales boom triggered by switching to digital broadcasts in July hurt the audiovisual division, the company said in a statement yesterday.
Toshiba’s TV business had an operating loss of at least 10 billion yen in the six months ended Sept. 30, Corporate Executive Vice President Makoto Kubo said.
To contact the reporters on this story: Cliff Edwards in San Francisco at cedwards28@bloomberg.net; Takashi Amano in Tokyo at tamano6@bloomberg.net
To contact the editors responsible for this story: Anthony Palazzo at apalazzo@bloomberg.net; Michael Tighe at mtighe4@bloomberg.net

Monday, October 24, 2011

Nutrition and Hydration tips

Nutrition, Hydration Tips Can Give Marathon Runners a Leg Up

Expert offers guidelines on what to eat and drink while preparing and competing


SATURDAY, Oct. 22 (HealthDay News) -- Marathons place heavy demands on the body and runners need to take certain measures to ensure they stay healthy and are able to cross the finish line, according to a nutrition expert.
Runners need enough energy to perform at their best and to prevent injuries, advised registered dietitian Brooke Schantz, of the Loyola University Health System. She offered a simple guideline for calorie intake:
  • 30 to 60 minutes of activity a day requires 16 to 18 calories per pound of body weight.
  • 1 to 1.5 hours of activity a day requires 19 to 21 calories per pound.
  • 1.5 to 2 hours of activity a day requires 22 to 24 calories per pound.
  • 2 to 3 hours of activity a day requires 25 to 30 or more calories per pound.
Runners should consume 30 to 60 grams of carbohydrates per hour when running for more than one hour. Marathon-friendly carbs include gels, jelly beans, sports drinks, sports bars or a combination of these products.
Protein is another essential part of a runner's diet because it increases lean muscle mass and helps in muscle repair. Endurance athletes should consume between 1.2 to 1.4 grams of protein per kilogram of body weight per day. But don't exceed more than 1 gram of protein per pound of body weight per day, Schantz said in a university news release.
And, she added, runners should avoid high-fiber foods the night before and the morning of a race because they could cause intestinal distress and cramping during the race.
It's crucial to drink enough water to stay properly hydrated. Schantz offered the following fluid-replacement guidelines:
  • Two hours before exercise, consume 16 to 20 ounces of water and drink another 7 to 10 ounces of water 10 to 20 minutes before exercise.
  • Drink 6 to 8 ounces of water every 15 to 20 minutes during exercise. If you exercise for longer than one hour, consume a sports drink with 4 to 8 percent carbohydrates.
  • After exercise, drink 24 ounces of fluid for every pound lost during exercise.
Monitoring the color of your urine is a good way to assess your hydration status. The clearer your urine, the more hydrated you are, Schantz said.
More information
The Hospital for Special Surgery has more marathon training tips.
Robert Preidt SOURCE: Loyola University Health System, news release, Oct. 6, 2011

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Monday, October 3, 2011

Consumer Electronics the Money Losing Game

More CE items continue to be Money Losing items like the video game consoles. How many items will be dependant on services to make money. Can the CE industry support this model across more and more items? How many monthly fees or services can customers sign up for to support this model?


JZ

 

Amazon Tablet Cost Exceeds Retail Price: IHS

By Joseph Palenchar -- TWICE, 9/30/2011

El Segundo, Calif. - Amazon will retail its Kindle Fire tablet at $199 even though IHS iSuppli estimates that it costs $209.63 to build the device.

The pricing underscores Amazon's focus on using its e-readers and tablet to promote the online sale of its physical good, the research company said.

A preliminary estimate conducted by the IHS iSuppli Teardown Analysis Service places Kindle Fire's bill of materials (BOM) cost at $191.65. With the addition of manufacturing expenses, the total cost to produce the Kindle Fire hits $209.63, IHS said. (See table.) LINK TO 21AMAZONTAB11.xlsx)

Amazon Fire - Preliminary Hardware Cost Estimates
ComponentsCost
Display & Touchscreen$87.00
Main PCB$70.40
Memory$25.00
Apps Proc$15.00
WLAN$6.00
Other & Peripheral PCBs$24.40
Battery$18.25
Enclosure$11.00
Box Contents$5.00
Sub Total$191.65
Device Costs
Manufacturing Costs$8.40
EMS Margin$9.58
Hardware Cost to AMZ$209.63
Source: IHS iSuppli Research, September 2011
With the expected lifetime sales of digital content per device, however, Amazon will likely generate a razor-thin marginal profit of $10 on each Kindle Fire sold, IHS continued, given that Amazon sells content at a loss. The real value of the tablet, as with the Kindle e-readers, is to use content "to get shoppers in the door" and then sell them all sorts of other goods, IHS said. "The real benefit of the Kindle Fire to Amazon will not be in selling hardware or digital content."

The tablet and the "content demand it stimulates will serve to promote sales of the kinds of physical goods that comprise the majority of Amazon's business."

Friday, September 30, 2011

Energy Star Large TVs

New Energy Star spec excludes many large TVs

By:

Due to how much power they use, some of the largest TVs will no longer qualify to bear this logo.
(Credit: energystar.gov)

Tomorrow the latest iteration of the Energy Star program for TVs goes into effect. As a result of the new version 5.3 requirements a number of the largest 2011 TVs, particularly plasmas, will actually lose Energy Star certification.
The reason those TVs no longer qualify is because Energy Star made its requirements more strict this time around compared to the earlier version, designated 4.2, which has been in effect since April 30, 2010. According to Energy Star:

Televisions that meet the new ENERGY STAR Version 5.3 requirements are on average more than 40 percent more energy efficient than conventional models. Larger sets must meet even more stringent levels to qualify as ENERGY STAR. A 60-inch TV will be on average 60 percent more efficient than a conventional model.

In addition to increasing the stringency of the requirements for all screen sizes, the new version incorporates a "hard cap" of 108 watts regardless of screen size. That cap effectively disqualifies most plasma TVs larger than 50 inches, and many other large-screen DLP and non-LED LCD-based sets.
Looking at the spreadsheet of models that qualify for the current Energy Star version 4.2, about 14 percent (297 of the 2096) use 108 watts or more. Many are 2010 models, and only three of them, including the 65-inch Samsung UN65D8000, are LED-backlit LCDs. Among TVs that miss the cut are the 51-, 55-, 59-, 60-, 64- and 65-inch members of CNET's favorite plasma TV series. The only 2011 plasmas that still qualify are 51-inch PND490/491/450/440 Samsungs and all 50-inch and smaller Panasonics.
Katherine Kaplan, program manager for Energy Star, told CNET via e-mail how the program has prepared for the disqualification of these large TVs. "With the intention of seeing products that meet the newest requirements on retail shelves when 5.3 takes effect, EPA halted certification of new TVs that met the 4.2 requirements (but not the 5.3 requirements) as of May 31, 2011. All new products certified since May 31 meet the 5.3 requirements. A product newly manufactured and certified in June had to meet the 5.3 requirements to be labeled."
What that means in practice is that some of the 2011 models that no longer qualify may still bear the Energy Star logo, either on the TV itself, the box or the product documentation.
Tomorrow, Energy Star will update the list on its Web site (right column here) to include only the models that qualify for version 5.3.
Who cares?
Power consumption among new TVs has decreased significantly. Assuming our standard average "on" time of 5.2 hours per day, an electricity cost of 11.55 cents per kw/Hr and the Energy Star-reported On time wattage of 119 watts, the yearly cost of the 55-inch Panasonic TC-P55VT30 plasma, for example, is just $26.18. And it's the least-efficient TV we've tested this year.
Energy Star measures default picture settings, allowing dim presets like the 55VT30's to "game" the system, but even if calibrated to a respectable light level (40 fL), it still only costs $62.71 per year to run. The most efficient like-sized TV we've tested, Sony's XBR-55HX929 local dimming LED-based LCD, costs $13.66/year worth of electricity after calibration, a savings of about $50 annually over the Panasonic plasma. That kind of difference is unlikely to make or break anybody's budget.
Indeed since the yellow FTC's Energy Guide labels, which use the same wattage measurement methodology as the EPA's Energy Star program, started appearing on TVs this year, the main reaction we've heard is something like "$20 per year? Who cares?"
Of course those numbers can vary if your electricity costs more or you watch more TV, but the point is that, for most viewers, the out-of-pocket cost of powering even the least-efficient TVs isn't a big deal. So why does Energy Star on TVs matter, anyway?
The main reason is aggregate energy use. Energy Star puts it this way:

With more than 19 million televisions greater than 40 inches expected to ship this year, the new requirements will guide purchasers of the largest televisions to more efficient choices. If all televisions sold in the United States met the new ENERGY STAR requirements, Americans would save over $4 billion annually in energy costs while reducing annual greenhouse gas emissions equivalent to the emissions of more than 5 millioncars.

In other words, we wouldn't recommend buying a more efficient TV just so you can save money on your electricity bill. We would recommend it, however, for people who consider the societal benefits of saving energy in addition to other TV buying factors.
For more check out our TV energy efficiency guide, which includes a few handy power-saving tips.


Read more: http://news.cnet.com/8301-17938_105-20113409-1/new-energy-star-spec-excludes-many-large-tvs/#ixzz1ZTTDChaI

Thursday, September 8, 2011

TV Rival

Stories like below tend to rub me the wrong way. Title implies that the TV is being replaced by Video Game Consoles, DVDs and other sources to watch content.

Reality of this article is that the DVDs are watched on a TV. DVRs are watched on TVs! Blu-Rays are watched on TVs. Netflix movies are watched on TVs. Video Game Consoles are used and connect to/watched on - yes you guessed it.......    TVs.


Now if this article wanted to correctly point out that LIVE TV SHOWS are at risk, that would be one thing, but people jump all over this as cutting the cord crap and watching content on Laptop and mobile device and such as gaining significant ground on enjoying content on TV.

You have to be kidding! So let's get it right folks! We love our TVs, we love watching all sorts of stuff and playing games on our TV.

You can NOT replicate a 40" - 70" TV experience on a 3-10" screen.

Thank you!

JZ


TV Rival: Video Games, DVDs On Rise
by Wayne Friedman, Yesterday, 10:47 AM



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videogamers
Alternative devices for viewing TV/entertainment content have been growing -- but nowhere has this gain been more evident than with video-game devices.
Knowledge Networks says that in 2011, playback/recorded content via video-game devices amounts to 12% of all 13- to-54-year-olds who watch streamed or downloaded TV programs or movies through a video-game system at least once a month.
The biggest category for alternative TV viewing, according to the survey, is DVDs -- which register 60%, slightly down from the 2010 total of 62%. DVR content, the second-largest category -- increased to 36% from 34%. Streaming video over a PC rose to 24% from 20%. Video On Demand services followed, grabbing 20% from its previous number of 17%. Blu-Ray usage was also up 14%, from 8%.
Netflix also continues to see big growing numbers. Forty-nine percent of its current customer base have used the service in less than a year. The service has around 22 million subscribers.
The study says 46% of all 13- to-54-year-olds have used Netflix at least once, with 35% watching at least one TV or movie on a monthly basis. Fify-two percent of Netflix customers are between 13 and 31; 46% are 32 to 45; and 35% are 46 to 54 years old.
Concerning new technology and Netflix, 11% of its broad swath of consumers 13-64 have used the service via mobile device. The biggest use here comes from its 13-31 customers, at 17%. Older boomers have only used Netflix via a mobile device at a 3% rate.

Tuesday, August 30, 2011

Japan Companies try to hold on in small LCD

Joint venture - see news below.

JZ

Toshiba, Hitachi, Sony to set up LCD firm

Toshiba Corp., Hitachi, Ltd. and Sony Corp. have basically agreed to jointly establish a company to manufacture small and midsize liquid crystal display (LCD) panels by year-end in a bid to compete with South Korean and Taiwan rivals, it has been learned.
According to industry sources, the envisaged company, intended to integrate the three companies' businesses in the field, will be partly financed by the Innovation Network Corporation of Japan, a private-public investment fund established in 2009 to support next-generation businesses.
The agreement will be officially announced as early as Wednesday.
The new company's global market share is expected to be the world's largest, as the three companies' combined share in the field in 2010 was 21.5 percent, exceeding Sharp Corp.'s leading 14.8 percent share.
About 70 percent of the new company's capital will be financed by the investment fund. The remaining capital will be equally shared by the three companies.
The demand for small and midsize LCD panels has risen sharply due primarily to international growth in smartphone use, making the LCD business highly competitive.
Although Japan currently leads the LCD market, South Korean and Taiwan rivals, which have invested heavily in the industry, are catching up.
The joint project is being led by the investment fund, which aims to strengthen Japan's competitiveness and keep Japan's leading status in the field.
According to industry observers, the consolidation stems from the trio's decision that individually they cannot win the competition. The project's success is crucial for Japan's shrinking LCD business.
According to DisplaySearch, a U.S. research company, the global market for small and midsize LCDs in 2011 will be $25.1 billion (about 1.9 trillion yen), 20 percent higher than 2010.
Industry sources said currently Japanese companies have an advantage in LCD technology for touch screen devices.
However, Samsung Electronics Co. of South Korea leads in organic electroluminescence (EL) panels, which are said to provide higher-definition images.
Advanced technology and investment capital will be indispensible for competing in the LCD market. However, after Hitachi suffered a 2.5 billion yen loss in fiscal 2010 and Toshiba went into the red from 2007 to 2009 in the small and midsize LCD business, neither company can afford to invest much in their LCD business individually.
There is a fear that without this venture, the Japanese small and midsize LCD display industry may face a similar defeat to that of large LCD TV panels, which were technologically superior to those of foreign competitors, but lost in competition for investment.
(Aug. 31, 2011)

Samsung to cut LCD output sharply!

Worldwide industry numbers continue to cause problems for everyone in the industry - even Samsung!

JZ

Samsung Elec to cut TV LCD output sharply -report



SEOUL | Tue Aug 30, 2011 3:06pm IST

SEOUL Aug 30 (Reuters) - Samsung Electronics Co plans to reduce its monthly television panel output by fourth-fifths by the end of this year and convert some of the lines to produce displays used in tablets and notebook, a media report said on Tuesday.

The move comes as global flat-screen makers are struggling with depressed consumer demand for televisions and computers amid mounting uncertainty over global economic prospects.

The Korea Economic Daily said in an unsourced report that Samsung plans to reduce its monthly TV panel production from between 1 million and 1.3 million units to around 200,000-300,000 units by the end of this year.

Samsung also plans to shift some of its TV panel production lines to make tablets and notebook panels, the report said.

Samsung said on Tuesday it would not comment on market rumours.

The South Korean firm, which vies for the top title worldwide with LG Display in the large-sized liquid crystal display (LCD) flat-screen market, has said it would keep production flexible according to the market outlook.

LG Display also said on Monday that it would slash next year's capital spending by a quarter as booming sales of mobile devices from iPads to Android smartphones saps demand for TV panels, its main source of earnings.

The LCD business is the most underperforming unit among Samsung's core operations, which also includes memory chips, handsets and televisions. The flat-screen division reported a second consecutive quarterly loss in the second quarter, and Samsung replaced the division head and combined it into its chip business. (Reporting by Miyoung Kim; Editing by Ken Wills)

Apple TV rumors

See article below from the Huffington Post

JZ


Is Apple working on a smart LCD TV powered by iOS software?
According to a recent report by Venture Beat, "multiple sources in Silicon Valley" say yes.
Apple analyst Gene Munster told VentureBeat that an Apple TV could be ready by late 2012 or early 2013.
Furthermore, writes VentureBeat, "The price of LCD panels has droped fairly steadily, thanks to increased manufacturing efficiency, so eventually quality screens became cheap enough to make the 9.7-inch iPad economically feasible." If the trend continues, VentureBeat predicts that "15-inch or 19-inch touchscreen televisions running iOS" will hit shelves in the foreseeable future.
Apple has already released two generations of a set-top box, called Apple TV, which in its current iteration lets users purchase and stream content from iTunes, as well as access streaming services like Netflix, Flickr, YouTube, Vimeo and more. But a TV built on iOS would function more like an iPhone or an iPad, with access to the web, apps and more.
PCMag's John C. Dvorak says that demand may be high for an Apple-branded television set, despite Apple's current set-top offering.
"Every time I mention it to anyone, especially to younger people who seemed to have traded TV for Hulu altogether, they all say the same thing: 'If Apple built a TV, I'd buy it,'" writes Dvorak. "With the market the way it is, I think people would go nuts over a branded Apple television."
In June, an unnamed former Apple exec told DailyTech that the company was planning a television set with deep iTunes integration that would "blow Netflix and all those other guys away."
"You'll go into an Apple retail store and be able to walk out with a TV. It's perfect," the source said, according to DailyTech.
But not everyone thinks an Apple TV is on its way.
Gdgt's Ryan Block maintains that rumors about an Apple-made TV set are "highly unsubstantiated."
Writes Block:
TVs are very low frequency purchases, meaning if Apple built intelligence into the sets, their replacement cycles would be far longer than for lower cost consumer electronics (i.e. 5-10+ or more years on a $3,000 TV vs. 1-3 years on a $99 set-top-box). Talk about adding insult to injury: not only do TVs have low margins, people hardly ever buy them.

Blogger Erik Schwartz wrote that he is "quite confident" there will be no Apple-branded TV "in the near future."
"If Apple was raking in the money selling media at high margins it might make sense to ship a TV as a moat for the media business," Schwartz wrote in a post on his Tumblr blog, "but media sales via iTunes is a low margin moat to defend Apple’s high margin hardware business."

Wednesday, August 24, 2011

Vizio - Trouble?!

Vizio pretty loud and proud about their sales number. Now going quiet and not responding to calls as noted at the end of the article. What will Q3 and Q4 bring for the TV industry?


Is The Bloom Off Vizio HDTV?

August 22nd, 2011 · 2 Comments · 3D HDTV, LCD Flat Panel, LED LCD Flat Panels




Vizio fell off its perch as the number one brand of LCD TVs in the second quarter of 2011 according to industry marketing research firm DisplaySearch. The honor now goes to Samsung. In terms of overall TV shipments into the US and Canada, Vizio is now number four, topped again by Samsung (1), Panasonic including new subsidiary Sanyo (2) and LG (3).

Furthermore, reflecting a shift in consumer buying habits, Vizio no longer has an industry top five selling LCD model (by dollar value in Q2), with Samsung now occupying four places and Sharp the fifth, reports Tamaryn Pratt, principal of TV industry marketing data company, Quixel Research.
With a formula that combined low prices, outsourcing panels and parts, and using a Taiwan based assembler to build its TVs Vizio came from nowhere in 2002 to become a major flat panel player in the American market. Vizio kept distribution costs low by selling its brand mainly through warehouse clubs, Wal-Mart and Target.
Lately, the company appears to be struggling. Unlike Sony, Samsung, LG and the other tier one manufacturers, Vizio has yet to introduce the bulk of its 2011 models including any of its passive 3D HDTVs, no doubt due to a glut of leftover 2010s which are still offered for sale in the warehouse clubs and on-line.
DisplaySearch analyst Paul Gagnon told HD Guru the bright spots in Q2 2011 sales were the low end under $500 models, dominated by price leaders and sets selling for over $1000. It appears consumer preferences are shifting to the cheapest sets available in the size/feature class such as RCA and Philips (now made by Funai) or to the established, panel producing high quality set makers i.e. Panasonic, Samsung and LG.
Amazon’s latest top 20 best sellers statistics support this, with Vizio capturing only 4 of the 20 models. Here is the link.
Recent visits to warehouse clubs BJs and Costco revealed a sea of leftover 2010 Vizios competing with new 2011s from Panasonic, Samsung, Sharp and other top vendors. According to industry sources, Vizio’s Chief Sales Officer Randy Waynick is no longer with the company. Waynick was quoted in Feb. 2011 in Dealerscope a CE trade publication saying “Vizio grew last year. Our partners grew last year. We’ve got a winning formula, from the component all the way to the retail floor.”
Dealerscope added: In fact, a Vizio spokesman said that the company will be named #1 in North American LCD sales for the full year (2010) when Displaysearch sales and market share numbers are announced later this week.
After what he termed an incredible year, Waynick expressed disappointment at a recent spate of mainstream news articles about an underlying lack of health in the HDTV business.
“That’s just not our experience,” he said. “We’re not seeing that side of the business at all. Even with our retail partners, we’re not seeing that sort of dismal outlook. The consumers are spending money. We’ve seen such a dramatic spike in the high end of our business.”
Based on the new numbers, fortunes appeared to have substantially changed soon after publication of the February story.
We submitted numerous requests to Vizio media relations regarding the status of its delayed 2011 models, and inquired, along with other questions, as to where the sets will be sold, but Vizio chose not to respond.

Sunday, August 21, 2011

Remember when Japan took over the TV business - maybe over!

Japan ponders pulling the plug on TVs
Tokyo— Financial Times

The television was bright, elegantly designed and -- here was the downside -- damnably tricky to make. But when Sony engineers learnt to finesse the new Trinitron’s three-cathode tube into place, they created a worldwide hit.
It has been more than 40 years since the Trinitron vaulted Sony into the top ranks of consumer electronics companies. Today, as industry watchers know, the picture is dimmer: Samsung and LG of South Korea are the top sellers of tube-free flatscreens, and Sony’s TV division is mired in its eighth year of losses.

Sony is not the only Japanese producer to struggle in the flatscreen era: Hitachi, Toshiba, Sharp are among those to have lost market share.
In the past decade, Japanese technology groups have lost almost a third of their overall market share to Taiwanese and South Korean rivals, according to a survey by CLSA, the independent brokerage and investment group. In televisions the decline has been sharper: Japanese companies make less than 10 per cent of the LCD panels that are the core of modern flatscreen sets, down from half a decade ago and virtually 100 per cent when the technology was first commercialized in the 1990s.
Yet there are signs - finally, many shareholders would say - that at least some Japanese producers are asking a once unthinkable question: should they be making televisions at all? Hitachi executives said this month they were considering outsourcing all their TV production to cheaper contract manufacturers elsewhere in Asia. Other companies are weighing similarly drastic measures, though they are reluctant to say so publicly.
Even Sharp - a relative success story and the leading seller of liquid crystal display (LCD) televisions in the Japanese market - is backing away from TV manufacturing, at least in Japan.
Hisakazu Torii, an analyst at DisplaySearch, says the choice facing Japanese groups has grown starker because of a global slowdown in flatscreen TV sales, particularly in richer markets where the latest and biggest Japanese sets still fetch premium prices. “People are buying smaller TVs for their second or third set, but there are no margins there,” he says.
Even in Japan, where consumers have mostly stayed loyal to homegrown brands, price competition has been fierce amid a persistent glut of panels, a set’s most important component. In the year to May the average price of a 32-inch LCD TV fell from $800 (U.S.) to $610, according to BCN, a market research group.
In the analogue era, when products such as the Trinitron ruled, Japanese companies prospered thanks to an unmatched ability to mass produce high-quality products at relatively low prices. The relentless rise in the value of the yen has eroded the price competitiveness of their factories in Japan, but it is the quality issue that has executives worried for the ultimate future of their TV businesses. Digital products can be churned out more easily and uniformly, making the sort of finicky hands-on work that made the Trinitron a success less valuable.
“You can’t differentiate today,” says Atul Goyal, an analyst at CLSA. “Now the industry is all about moving fast so nobody can catch up, and that’s not in Japanese companies’ DNA.”
Kazuo Hirai, the Sony executive who is the leading candidate to succeed Sir Howard Stringer as chief executive, acknowledges that televisions have become a “commodity business”. Sony now makes only about half of its TVs in-house, having closed or sold several factories as part of a restructuring. It promised further steps last month after it cut its full-year profit forecast by 25 per cent, owning largely to worse than expected TV sales.
Sony recently appointed a new head of its TV division, Masashi Imamura, whose job Mr. Hirai says will be to “fight commoditization” and differentiate its offerings. That will not be easy. Recent innovations such as 3D technology have not proved as popular as the company hoped, and rivals quickly matched its features. Sony’s shares are at less than half the level they were back when the TV business was making money, and pressure to give up manufacturing sets, if not selling them, is mounting.
Sony’s equity would be worth 70 per cent more if losses at its television division were eliminated, according to data compiled by Bloomberg.
Still, letting go of a business with a long history is difficult, not only because of the workers who depend on it.
“Manufacturing is an art, even in this day and age when a lot of stuff is automated,” Mr. Hirai insists, saying Sony will continue to make at least some TVs in-house. “If you manufacture everything outside, then all the expertise that we’ve build in-house of the past 50-60 years doesn’t really manifest itself in the product any more.”

The Truth about LCD TVs - CFL or LED backlight

Bit long - but if you can make it through - good stuff most people are not aware of on ALL LCD TVs.

JZ

Is LCD and LED LCD HDTV uniformity a problem?

By:
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(Credit: Geoffrey Morrison/CNET)
Nearly every LCD TV on the market has a problem: uniformity. Certain areas of the screen are going to be brighter than other areas. On dark scenes, this can be visible and sometimes distracting.
So what causes it? What can be done?
The problem
All LCD TVs are essentially two parts: a backlight, and the Liquid Crystal "glass." The backlight, commonly CCFL or LEDs, creates all the light. As I'll explain below, "LED TVs" are just regular LCD TVs that use LEDs as their backlight. The LC glass is a complex sandwich of electrodes and liquid crystal whose sole job is to block the light created by the backlight.
OK, so technically polarization filters block the light, the liquid crystal just twists the polarization, but for the ease of discussion, let's just say the LC "blocks" the light.
In the simplest of LCD TVs, the backlight creates a set amount of light. In more expensive TVs, the backlight may adjust depending on what is going on with the video. In other words, during a dark scene, the backlight may dim so the image appears darker than what would be possible with just the liquid crystal.
This LC/backlight system is never perfect, either due to manufacturing irregularities, design inefficiencies, or whathaveyou. Because it's not perfect, parts of the screen are going to "leak" light.
The backlight
CCFL backlights are a series of tiny fluorescent lights, like miniature versions of what's found in offices, stores, etc. Below is a look at the layers of a typical CCFL backlight TV. What you're seeing is the entire TV, spread out so that each layer is separate and visible.

The many layers of an LCD TV. The layer on the far left is the clear covering surface. The next layer (where you see the image) is the liquid crystal layer. The next layer (the bright white area in front of the gray plastic), is the diffusion layer. This is actually translucent "white" plastic. The back, far right, of the image is the backlight itself surrounded by the plastic frame of the TV.
(Credit: Geoffrey Morrison/CNET)


The image on the left is the same layers as the previous image, but with the camera stopped down to show the bright areas. Here you can see the translucent diffusion layer in between the liquid crystal and backlight. The right image is the CCFL backlight. For a sense of scale, this was a 40-inch LCD, each CCFL is little more than an 1/8th of an inch in diameter.
(Credit:Geoffrey Morrison/CNET (via Home Theater magazine))

Ideally, the diffusion layer perfectly evens out the light from the individual CCFLs, so that the entire screen is a uniform amount of light. This is pretty tough to do, made harder by the number of CCFLs, the expense spent on the diffusion material, and other design factors.
It's possible then, on dark images, for the areas directly in front of a CCFL tube to be brighter than the areas between the tubes. Smaller LCDs may only have the CCFLs along the edges, making them perform similar to edge-lit LED models. Which brings us to...
AllLED TVs are just LCD TVs
LED backlights, annoyingly and misleadingly referred to as "LED TVs," use tiny, efficient LEDs instead of CCFLs. How these are implemented has a dramatic effect on uniformity. Most LED LCDs today have their LEDs arranged along the edges of the screen (edge-lit). Some of these have their LEDs along just two sides (either top/bottom or on the sides), while others have LEDs on all four sides.
If you've ever put a lit flashlight on a table, you have an idea of the problem created by putting LEDs along the edge of a TV. The area directly in front of the LEDs will be bright, while the area farthest from (in this case, the center of the TV) will be dimmest. In these cases, the LEDs fire across a surface with ridges (or something similar) that gets progressively taller towards the center. This way, the tall central surfaces can reflect the light that would otherwise just bounce back from the opposite side of the television.
I used my extensive artistic talents to draw this diagram:

This wondrous diagram shows a top-down cutaway view of the right half of an edge-lit LED LCD. The LED (yellow here, because white doesn't show up on a white background) fires along the width of the TV. The light guide (circular parts) reflect this light towards the screen. Done perfectly, the center of the screen (where the guide is tallest), is just as bright as the edges.
(Credit: Geoffrey Morrison/CNET)

As cool as this is, it's not perfect.
Uniformity
Each of the above backlighting methods has the potential to have poor brightness uniformity in a unique way. For example, a side edge-lit LED could look like this, with a black screen:

An illustration of a common brightness uniformity issue with edge-lit LCD. Note how the sides of the screen closest to the LEDs "leak" a bit of light, causing the brightness of the screen to not be uniform.
(Credit: Geoffrey Morrison/CNET)

A top/bottom edge-lit LED could look like this:

(Credit: Geoffrey Morrison/CNET)

Edge-lit with LED's all around:

(Credit: Geoffrey Morrison/CNET)

You get the idea. Potentially, the problem is less localized, leading to issues that could look like this (in the extreme):

An exaggerated illustration of a less localized brightness uniformity issue.
(Credit: Geoffrey Morrison/CNET)

On the other side of the brightness scale, an edge-lit model can have poor uniformity with bright images too. In these cases, the center of the screen will be dimmer than the edges. These will look as you'd expect, given the location of the LEDs. For example, here's an illustration of what a edge-lit LED model with LEDs on all 4 sides could look like.

With a bright image, the center of the screen (the area farthest from the LEDs) can be noticeably dimmer.
(Credit: Geoffrey Morrison/CNET)

With top/bottom, there could be a center band of dimness across the screen, or in the case of side edge-lit models, a vertical band.
Local dimming
Some high-end LED LCD models have their LEDs on the back of the TV, facing towards you. These "full array" LED backlights can have better uniformity, due to their more even spacing across the screen.
Plasma?
Early plasma screens had significant brightness uniformity issues, but in the opposite way. In those days, when trying to display a full white screen, they could look like this:

Old-school plasmas can have brightness uniformity issues as well. Newer models don't have this issue.
(Credit: Geoffrey Morrison/CNET)

In my experience, the uniformity issues manifested itself with mild blotches of "discoloration," due to the demands of creating a full-screen white image.
These days, the design and electronics of plasmas has improved to the extent that you'd be hard pressed to see any brightness uniformity issues with plasma.

What can be done?
Well, for the end user, nothing. But of course manufacturers are spending lots of research dollars into making a better product, uniformity being one of those factors.
There are multiple issues that make a perfectly uniform LCD difficult. The thinner the TV (and therefore the less distance between the backlight and the LC), make a uniform brightness more difficult, given there's less space to diffuse the light evenly. That diffusion itself is problematic, as the better the diffusion, more light could be lost, and that's always a no-no.
Lastly, there's the cost. Brightness uniformity is just one element of performance, and one far down the list of importance (after cost, light output, contrast ratio, color, processing, etc.). A TV is designed to a price, and no matter what, that price is going to require some concessions in performance.
Brightness uniformity isn't something that's easily seen in a store showroom. Therefore, it's easy for engineers to concede some brightness uniformity for better light output, lower materials cost, or whatever else they need.
But even though it's not noticeable in a store (the only thing TV manufactures really care about), uniformity issues are easily seen at home. It's also often mistakenly assumed it's a "defect" with the television. If you watch dark movies, or ones with letterbox bars, it can also be extremely distracting.
This article stemmed from an e-mail exchange between a CNET reader from Maine and our man Katzmaier. The reader had returned several LCDs, as the brightness uniformity bothered him. To him, and to you if you're also bothered by this artifact, I'll offer this piece of sage advice: skip LCD. Get a plasma.


More SONY TV News

See another article below!

JZ

An August 2nd Reuters news story said that Sony is preparing to overhaul its LCD television business to reduce costs and attempt to remain competitive against the likes of Samsung and LG. That means selling off TV factories to Chinese companies such as Foxconn Technology (manufacturers of the iPad) and moving more and more to a Vizio-style rebranding model.

Sony’s TV business has lost money for eight consecutive years, which about as long as Sony has been selling Bravia LCD TVs. The company cut its sales forecast for the current fiscal year by 19% to 22 million units, and now there is talk among analysts of the possibility that Sony might exit the TV business altogether – something that is almost inconceivable, given Sony’s long involvement with television.
Three words: Wake. Up. Call.
But the facts are hard to argue with. Ever since Sir Howard Stringer took over at the helm six years ago, Sony Corporation has lost 50% of its market value. According to the Reuters story, Sony is currently valued at just $25 billion, less than 25% of the market valuation of Samsung.

Over the years, pursuing profitability in the TV business has led Sony to form an alliance with Samsung (S-LCD), announce plans to take a 34% investment stake in Sharp’s Gen 10 LCD fab (later pruned back to less than 10%), and search high and wide throughout Taiwan and Hong Kong to find a competitive source for the smaller LCD panel TV sizes that still dominate the market.

Sony’s initial TV strategy was to position themselves as an Apple-like brand, getting people to pony up a premium for a perceived advantage in Sony product quality and engineering smarts. Trouble was; it was all too easy to surf the Internet and discover that smaller Sony LCD TVs were being sourced from many of the same manufacturers as 2nd-tier LCD TV brands.

Sony’s “own the manufacturing chain” business model was blown out of the water by Vizio, the ultimate OEM TV partner, who spent millions of dollars in advertising and went for the jugular with aggressive pricing in wholesale clubs and discount outlets. And of course, Samsung is responsible for much of Sony’s misery, given how aggressively the Korean TV giant followed its ten-year blueprint to become “the next Sony.”

It doesn’t help that 3D and Google TV have done little to stem the losses. 3D TV is still struggling to gain widespread acceptance and will likely become just another option built-in to all future TVs; one that cannot command a premium.

Google TV is even more of a bust. If you’ve ever had a chance to use the remote control for Sony Internet TVs, you’ll know why: It’s complicated and intimidating to use. People like the idea of watching Internet-delivered video, but they don’t want to search for it with a computer-like interface.
Seriously - Who thought THIS was a good way to watch TV?
To make matters worse, the Sony name doesn’t command respect like it used to. Interbrands’ annual survey of global brands places Samsung 15 places above Sony. That is mind-boggling, given the strong brand equity Sony used to have.

The Reuters story states that Sony could lose close to a billion dollars this year in its TV operations, and that would push total losses to almost $5 billion since 2004. So the question is – how long will Sony continue to spill red ink?

One obvious solution to the problem is for Sony to wash its hands of TV manufacturing completely and instead license the Sony name to a line of OEM TVs, much like Kodak is doing these days with digital cameras and photo frames.

There is a precedent: Earlier this year, CE manufacturing giant Philips threw in the towel on its TV business, citing increasing losses and an inability to remain competitive even on its home turf in Europe. Going forward, Philips has licensed its brand to Funai for all future Philips LCD TV manufacturing.

By following this model, Sony could finally achieve profitability in the TV game. Ironic, isn’t it?

Tuesday, August 2, 2011

SONY TV - this business is not getting any easier!

See the article below on the Sony TV business. Customers are not chasing after features that they feel do not add value to the set. Chip producers have convinced TV makers to shove more features in than a customer wants in a TV. At the end of the day it is about the content, and being able to sit back, relax, and watch a good show or get the news. Until the customer clearly calls for a PC on their main TV of the home SMART TV - Internet TV will fail. Building it and they will come will not work anymore. The economy has all consumers looking at every dollar and considering what they are or are not willing to spend.

Sony Prepares TV Overhaul After 3-D, Google Sets Fail to Revive Earnings

Q
A model wearing 3D glasses stands next to Sony Corp.'s 3D Bravia televisions at their unveiling in Tokyo. Photographer: Tomohiro Ohsumi/Bloomberg

Sony Costing Shareholders 70% Gain by Clinging to TV

Sony Costing Shareholders 70% Gain by Clinging to TV
Tomohiro Ohsumi/Bloomberg
During the past six years, Sony Corp. has lost market share to Suwon, South Korea-based Samsung and Apple Inc. of Cupertino, California, as it struggled to win customers by betting demand for online content and 3-D technology would revive TV sales.
During the past six years, Sony Corp. has lost market share to Suwon, South Korea-based Samsung and Apple Inc. of Cupertino, California, as it struggled to win customers by betting demand for online content and 3-D technology would revive TV sales. Photographer: Tomohiro Ohsumi/Bloomberg
Sony Corp. (6758), facing an eighth straight year of losses from its main television operations, is preparing to overhaul the business to reduce costs and compete against Samsung Electronics Co.
The plans may include partnerships as well as reorganizing the procurement, product development and sales operations, Mami Imada, a Tokyo-based spokeswoman, said in response to queries about a Nikkei newspaper report. Details of the reorganization may be decided this month, she said.
Chairman Howard Stringer, who’s farmed out production to Foxconn Technology Group and eliminated thousands of jobs, may be returning his focus toward cost cuts after 3-D TVs and Internet-centered sets failed to stem Sony’s slide in market share against Samsung and LG. The Japanese company last week replaced its TV head and said it won’t sell as many units as it had anticipated.
“Sony needs to make deeper changes in the structure of its TV business,” said Kota Ezawa, a Tokyo-based analyst at Citigroup Inc. “Selling its factories can only be the first step.”
Sony closed 0.7 percent higher at 1,973 yen in Tokyo trading today, narrowing its loss this year to 33 percent. That compares with the 3.8 percent decline by Japan’s benchmark Nikkei 225 Stock Average.
The Nikkei newspaper reported earlier today Sony will outline plans for its TV operations, citing Chief Financial Officer Masaru Kato.

Back-to-Back-to-Back Losses

The maker of Bravia TVs cut its sales and profit estimates last week, citing sluggish sales of TVs in the U.S. and Europe. Tokyo-based Sony, reeling from three consecutive years of companywide losses, also slashed its full-year TV sales target by 19 percent to 22 million units.
Sony also announced at the time that Yoshihisa Ishida, president of the home-entertainment unit that makes TVs, will be replaced by Masashi Imamura, president of the personal imaging group that produces cameras. Ishida will become a deputy CEO at Sony Ericsson Mobile Communications AB.
In the past two years, Sony has sold three factories, reducing its number of TV plants worldwide to four, as part of the company’s efforts to reduce costs.
Sony agreed last year to sell 90 percent of a TV factory in Nitra, Slovakia, to Foxconn’s Hon Hai Precision Industry Co., after disposing of 90 percent of its largest North American TV-making assets to Taipei-based Hon Hai. Sony also agreed to sell a TV facility in Barcelona in September.

Dwindling Brand

Edmund Ding, spokesman for Hon Hai, didn’t answer calls to his mobile and office phones.
Once worth more than $100 billion, Sony has lost half its market value since Stringer became its first non-Japanese chief executive officer in 2005. The company that invented the Trinitron cathode-ray tube TV in the 1960s is now valued at about $25 billion, less than a quarter the size of Samsung.
Sony may no longer rely on its brand for an edge. Since Samsung passed Sony in terms of brand value in 2005, the Korean company has extended its lead, ranking 19th in Interbrand’s latest annual survey of global brands, or 15 places above Sony.
Clinging to the television business may be costing shareholders. While analysts say Sony shares may climb as sales of its PlayStation game consoles and Cyber-shot digital cameras bolster profit this year, stripping out losses at the TV business from the rest of the company would boost its equity to $43 billion, according to data compiled by Bloomberg.

Biggest Division

By selling the TV division, Sony would exit a business that is forecast to lose almost a billion dollars this year as consumers unwilling to pay for its Bravia flat-screen TVs turn to cheaper brands. The TV unit had 1.2 trillion yen ($15.5 billion) in sales last year, making it the biggest source of Sony’s revenue, data compiled by Bloomberg show.
Shiro Kambe, Sony’s chief spokesman in Tokyo, said yesterday the company has never considered walking out from the TV business because of its importance to the company.
The company lagged behind Samsung and Seoul-based LG Electronics Inc. (066570) in the global TV market last year, with 12.4 percent of sales, according to DisplaySearch. Sony’s share slipped to 11.4 percent in the first quarter.
A strengthening yen versus the dollar and euro is also exacerbating Sony’s losses by making its exports less competitive overseas and reducing the yen value of foreign-currency denominated sales.

Google TV

Sony, which began offering Internet-enabled TVs in the U.S. in October that use Google Inc. (GOOG)’s software and also introduced 3-D Bravia models last year, said last week it expects the loss from its TV business to be as large as the 75 billion yen deficit it reported in the fiscal year ended March.
That would push losses at Sony’s TV division past a half-trillion yen since 2004, or more than $5 billion based on historical exchange rates, data compiled by Bloomberg show.
Stringer has already eliminated 30,000 jobs, sold factories and moved production overseas in an effort to revive earnings.
“The reorganization plan should be big enough to surprise the market,” said Keita Wakabayashi, an analyst at Mito Securities Co. “It may not be easy for Sony to come up with something very new to investors after promoting cost reductions.”
To contact the reporter on this story: Mariko Yasu in Tokyo at myasu@bloomberg.net
To contact the editor responsible for this story: Young-Sam Cho at ycho2@bloomberg.net