W31 july2014

BUSINESS & TECHNOLOGY
INNOVATION REPORT
Week 3 1
2 0 1 4
Prepared by
Ferhat Ünlükal
8/1/2014

! BUSINESS & TECHNOLOGY INNOVATION REPORT
! 2
BUSINESS &
TECHNOLOGY
INNOVATION
REPORT
Week 31
Headlines
Consumer Electronics (CE)
• Samsung Electronics Co. reported a
bigger-than-expected fall in second
quarter profit.
• Sony Corp. reported a surprise
eightfold jump in quarterly profit.
• Vestel ID Team has been honored with
the Platinum A' Design Award in Digital
and Electronic Devices Design
Competition.
ICT
• Apple has been planning to introduce a
new streaming box for live and on
demand content,
• Apple is close to acquiring Swell, a
personalized radio and podcast
application.
• Samsung Electronics Co. said it is
delaying sales of its first Tizen-powered
smartphone.
• BlackBerry said that it will acquire
Secusmart.
• Foxconn’ battery-making arm agreed to
pour more than 2 billion yuan ($323
million) into Anqing to produce lithium
batteries, a popular power source for
electric cars.
• Taiwan ODMs Quanta Computer and
Inventec for HP and Compal Electronics
and Wistron for Dell are expected to
see increased shipments in the second
half of 2014.
• Notebook vendors have significantly
reduced their orders for shipments to
Latin America.
• Global flexible electronics market is
expected to reach $13.23 Billion by
2020 at an estimated CAGR of 21.73%.
• The market for LED drivers, MCUs,
sensors and other chips used in smart
lighting will grow from around $67
million in 2014 to $1.05 billion in 2019.
• Worldwide shipments of
communications nodes for smart city
networks will grow from 16.3 million
annually in 2014 to 54.8 million in
2020.
• TechNavio's analysts forecast the
Global Interactive Whiteboard market
by revenue will grow at a CAGR of
15.95 percent over the period 2014-
2018.
Flat Panel Industry
• AUO expects its small- to medium-size
TFT-LCD panel shipments to increase
5-8%.
• Sony Corp (6758.T), Panasonic Corp
(6752.T) and Japan Display Inc
(6740.T) said they would form a joint
venture to develop organic light-
emitting diode (OLED) displays.
• Corning has announced its results for
the second quarter of 2014.
• Taiwan-based makers together shipped
351.4 million small- to medium-size
TFT-LCD panels in the second quarter
of 2014.
• Taiwan-based makers shipped 67.518
million large-size (9-inch and above)
of 2014, increasing by 8.5% on quarter
and by 0.9% on year.
• The world's TV set makers planned to
purchase 20 million 4K LCD TV panels
this year.
Semiconductor Industry
• Broadcom is planning to cut 240 jobs at
its Irvine headquarters, and 630
throughout California.
• Broadcom announced that its BCM7252
high-efficiency video codec (HEVC)
H.265 system-on-chip (SoC) will power

! 3
Tata Sky's first generation Ultra HD set-
top boxes
• Intel is forging the future of its Haswell
CPU in Vietnam.
• The Wireless Power Consortium (WPC)
announced significant advances to the
resonant extension of the Qi
specification
• The central government also plans to
set up a national industry investment
fund of CNY120 billion (US$19.3
billion).
Service Industry
• Cukurova Holding said it paid Russia's
Alfa Group $1.6 billion to recover a
disputed stake in Turkcell.
• AirTies Wireless Networks and
Octoshape, announced that Digiturk
has selected the joint solution to deliver
premium programming over-the-top
OTT to its international customers.
Software Industry
• Amazon (AMZN, Tech30) is inching
closer to with the launch this week of
its 3-D Printing Store,
Retail and Payment Industry
• Square’s new reader will be compatible
with microchip-enabled credit cards.
• PayByPhone and PayPoint, has
announced its mobile parking payment
app is available in the Amazon
Appstore.
• The Central Bank decided to create its
own, brand-new platform for Russia's
national payment system.
Energy Industry
• A new mobile device technology looks
set to revolutionize battery charging
and smartphones equipped with it will
be available in 2015
Consumer Electronics (CE)
Samsung
Financial
• Samsung Electronics Co. reported a
bigger-than-expected fall in second
quarter profit and said it was uncertain
if earnings from its handset business
would improve in the current quarter.
• Samsung warned earlier this month
that the second quarter would be its
worst in two years as rapid growth in
smartphone sales had faded. The
company particularly struggled to
compete in cheap smartphones,
currently the fastest growing part of
the global smartphone business.
Samsung shares dived 4 percent in
Seoul.
• Its net income for the April-June
quarter dropped 20 percent to 6.3
trillion won ($6.1 billion) from 7.8
trillion won a year earlier. That was the
lowest since the second quarter of
2012. Analysts surveyed by FactSet
forecast 6.5 trillion won income.
• Sales fell 9 percent to 52.4 trillion won
while operating profit sank 25 percent
to 7.2 trillion won, in line with
Samsung's guidance earlier this month.
Samsung’s stock performance

! 4
Sony
Financial
• Sony Corp. reported a surprise
eightfold jump in quarterly profit as
sales got a perk from a cheap yen and
its bottom line was helped by gains
from selling buildings and its stake in a
video-game maker.
• Sony's April-June profit soared to 26.8
billion yen ($261 million) from 3.1
billion yen a year earlier. Analysts
surveyed by FactSet had forecast a
loss. Quarterly sales climbed nearly 6
percent to 1.81 trillion yen ($17.6
billion).
• Sony said it had a 20.7 billion yen
($201 million) operating loss for the
quarter related to exiting the PC
business.
Sony’s stock performance
Vestel
Design Award for SmartPhone
• A' Design Award and Competition is
pleased to announce that Vestel ID
Team has been honored with the
Platinum A' Design Award in Digital and
Electronic Devices Design Competition.
• Vestel ID Team, the project leader of
the award winning design Glasson
Smart Phone said Glasson Smart Phone
design which is aimed to make the life
easier represents the mobile devices
ideology of the Vestel company that
has years of experience on consumer
electronics in domestic market and
international reputation on
manufacturing. Glasson responds to the
needs of users needs by following the
recent trends in mobile devices. The
realization of the design is based on a
highly collaborative process among
industrial designers, UI designers and
engineers. Glasson employs a sleek
design with innovative materials and
provide an ergonomic user experience.
• Glasson smart phone was developed by
Elif Altay, Engin Akbaba, Ramazan
Murat Erkan, Burak Emre Altinordu and
VESTEL ID Team.

! 5
ICT Industry
Apple
New Streaming Box
• Apple has been planning to introduce a
new streaming box for live and on
demand content, but those plans have
stalled, according to a report from The
Information.
• Cable companies are “dragging their
heels” on Apple’s plans to incorporate
their content into a set top box and
have signaled their apprehension over
Apple’s ambition for TV, according to
the report.
• The cable companies and content
creators think that Apple doesn’t have
the licenses to distribute the wide
range of content cable companies can
provide.
Apple’s stock performance
Acquisition of Swell
• Apple is close to acquiring Swell, a
personalized radio and podcast
application, in a deal worth about $30
million. The news was first reported by
Re/code.
Samsung
Delaying sales of Tizen powered
Smartphone
• Samsung Electronics Co. said it is
delaying sales of its first Tizen-powered
smartphone in the latest setback to the
company's ambition to create a mobile
platform to rival Google's Android or
Apple's iOS.
• The South Korean company had
planned to start selling the phone, the
Samsung Z, in Russia this quarter. But
Samsung indicated that more time is
needed to expand Tizen's following of
app developers and apps.
Blackberry
Acquisition of Secusmart
• BlackBerry said that it will acquire
Secusmart, a German mobile security
company. The purchase highlights how
BlackBerry is doubling down on the
enterprise as well as mobile security.
• The two companies have been partners
since 2009. The plan is for Secusmart,
known recently for its anti-
eavesdropping software, is to become a
core component of BlackBerry's security
portfolio and enterprise mobility
management pitch.
Blackberry’s stock performance
Foxconn
Lithium Battery
• Foxconn Technology Group is heading
to inland Chinese cities in search of
profit drivers as the Taiwan-based
company looks beyond assembling
iPhones and iPads for Apple Inc.
• As investors discussed the pros and
cons of Foxconn's plant proposal in
Bengbu, China's Anhui province, a new

! 6
investment in the eastern province
emerged.
• The world's largest electronics contract
manufacturer's battery-making arm
agreed to pour more than 2 billion yuan
($323 million) into Anqing to produce
lithium batteries, a popular power
source for electric cars.
Foxconn’s stock performance
ICT Market
Notebook Shipments in North America
• As Hewlett-Packard (HP) and Dell have
seen good sales in the North America
notebook market in July, Taiwan ODMs
Quanta Computer and Inventec for HP
and Compal Electronics and Wistron for
Dell are expected to see increased
shipments in the second half of 2014,
according to Taiwan-based supply
chain makers.
• Dell's shipments in July increased 10%
on month.
• With strong demand in the second half,
some supply chain players expect the
notebook shipment ratio for the first
and second halves of 2014 to reach
4:6.
• July and August mark the traditional
slow season in Europe because of
summer vacations, and demand is
unlikely to pick up until close to
September; therefore, the sources
expect notebook shipments in Europe
in the third quarter to stay flat or drop
slightly on quarter. The sources also
expect shipments in the fourth quarter
to be the strongest in 2014.
Notebook Shipment to Latin America
• Notebook vendors have significantly
reduced their orders for shipments to
Latin America because sales have been
impacted by recent strong demand for
LCD TVs in the area, according to
Taiwan-based supply chain makers.
• Due to the 2014 FIFA World Cup in
Brazil, demand for LCD TVs in the Latin
America market has increased by about
50%, and in turn undermined demand
for notebooks, the sources indicated.
Due to decreased demand, vendors'
notebook inventories are high and
therefore have reduced or temporarily
stopped placing orders, the sources
said.
• In the Latin America market, Acer was
the largest notebook vendor in first-
quarter 2014 and Lenovo was number
one in the second quarter.
Flexible Electronics Market
• Global flexible electronics market is
expected to reach $13.23 Billion by
2020 at an estimated CAGR of 21.73%
with the number of applications using
printing processes for flexible
electronics forecast to grow at a good
rate. Major market drivers for flexible
electronics include the possibility to add
new functionalities like conformability
for OLED lighting (for the automotive
industry), for OPV (energy harvesting),
Robustness for small OLED displays (for
smart phones & tablets) as well as
feasibility to create new applications
like wearable electronics.
Sensor and Chip used in Smart Lighting
• The market for LED drivers, MCUs,
sensors and other chips used in smart
lighting will grow from around $67
million in 2014 to $1.05 billion in 2019.
This is according to a new report from
industry analyst "The Markets for Smart
Lighting Drivers, Controllers and Sensor
Chips – 2014." Based on the broad
acceptance of the Internet-of-Things
(IoT), of which smart lighting is a part,
Researcher has considerably upgraded

! 7
its long-term forecasts for smart
lighting compared with a previous
report we issued in 2013.
Smart City Market
• Ubiquitous and embedded
communication services lie at the heart
of the innovations in energy,
transportation, and the efficient
delivery of public services associated
with smart cities. Without the
underlying communication
infrastructure, the smart city vision
cannot be realized. Click to tweet:
According to a recent report from
Navigant Research, worldwide
shipments of communications nodes for
smart city networks will grow from 16.3
million annually in 2014 to 54.8 million
in 2020.
Interactive Whiteboard Market
• TechNavio's analysts forecast the
Global Interactive Whiteboard market
by revenue will grow at a CAGR of
15.95 percent over the period 2014-
2018.
Flat Panel Industry
AUO
Small and Medium Size LCD Panels
• AU Optronics (AUO) expects its small-
to medium-size TFT-LCD panel
shipments to increase 5-8%
sequentially, and its large-size panel
shipments to remain unchanged or
slightly decrease in third-quarter 2014.
• AUO shipped 347,200 square meters of
small- to medium-size panels in the
second quarter, hiking 47.62%
sequentially mainly due to growing
demand from China-based smartphone
vendors, the company said.
• For small- to medium-size applications,
AUO uses a-Si technology to produce
HD panels and LTPS technology to
produce Full HD, in-cell touch and
WQHD panels.
• As AUO has reached a global market
share of 30% for small- to medium-size
HD panels, the company said it plans to
use a-Si to produce entry-level Full HD
panels in second-half 2014 while high-
end Full HD panels will continue to be
made using LTPS technology. AUO will
begin production of 5.5-inch above
500ppi WQHD LTPS panels in the third
quarter.
• For large-size applications, AUO said it
offers Ultra HD, curved-surface, wide-
color-gamut, above 50-inch TV panels
to maintain international
competitiveness.
• Global demand in 2014 is estimated to
grow on year by 7-9% in terms of
panel area, AUO said, adding as global
supply will increase only 5-8%, supply
will be tight this year.

! 8
AUO’s stock performance
Innovation network Corp of Japan
OLED Display
• Sony Corp (6758.T), Panasonic Corp
(6752.T) and Japan Display Inc
(6740.T) said they would form a joint
venture to develop organic light-
emitting diode (OLED) displays, with
the government-backed Innovation
Network Corp of Japan (INCJ) taking a
majority stake.
• The venture, bringing together all of
Japan's OLED technology, would make
small to mid-size panels for wearables,
smartphones and tablets.
• The new company will be called JOLED
Inc and is scheduled to be launched in
January. The INCJ will hold 75 percent
of the voting rights in JOLED, Japan
Display will hold 15 percent, and Sony
and Panasonic will each own 5 percent.
Corning
Financial
• Corning has announced its results for
the second quarter of 2014, with core
(non-GAPP) sales reaching US$2.6
billion (non-GAPP), up 28% on year.
Net sales (GAAP) were US$2.5 billion, a
25% increase on a year-over-year
basis.
• Core earnings for the second quarter
came to US$527 million, up 12% on
year. Core earnings per share were
US$0.37 per share, a 16%
improvement over a year ago, marking
the seventh consecutive quarter of
year-over-year core EPS growth,
Corning said. GAAP earnings per share
were US$0.11.
• Corning's LCD glass volume grew more
than expected due in part to stronger-
than-expected retail TV sales in Europe
and South America, likely driven by the
FIFA World Cup, the company said.
Corning’s stock performance
Flat Panel Market
Taiwan Based Small and Medium Size Panel
Shipments
• Taiwan-based makers together shipped
351.4 million small- to medium-size
of 2014, increasing 16.8% sequentially
but decreasing 2.8% on year,
according to Digitimes Research.
• In particular, shipments of panels for
handsets rose 17.9% sequentially and
took up 75.3% of total shipments, up
0.7ppt from the previous quarter,
Digitimes Research indicated.
Shipments of car-use panels also grew
on quarter due to increased orders
from Japan-based automakers.
• LTPS panels accounted for 11.5% of
total shipments, up 0.5ppt on quarter.
• As Taiwan-based makers have modified
large-size panel manufacturing
equipment for producing small- to
medium-size applications and have not
added LTPS production capacities, they
may face issues in making in mid-range
and high-end panels.
• AU Optronics has reported staggering
growth in net profit for the second
quarter of 2014 on improved demand
and rising LCD panel prices.

! 9
Taiwan Based Large Panel Shipments
• Taiwan-based makers shipped 67.518
million large-size (9-inch and above)
of 2014, increasing by 8.5% on quarter
and by 0.9% on year, according to
Digitimes Research.
• Most of the major application saw
double-digit growth in shipmnts in the
second-quarter, Digitimes Research
indicated.
• Global Ultra HD TV panel shipments
grew 154% sequentially in the second
quarter. The top-two suppliers, Taiwan-
based Innolux and Korea-based LG
Display, both shipped about 1.5 million
UHD TV panels during the quarter.
4K LCD TV Panels
• The world's TV set makers planned to
purchase 20 million 4K LCD TV panels
this year, but the actual shipment of
the product stood at 6.40 million pieces
in the first half of 2014, the Monthly
TFT LCD Shipment Database under
NPD DisplaySearch showed.
• Besides, most panel suppliers including
AU Optronics Corp, BOE Technology,
and China Star Optoelectronics
Technology Corporation had not
fulfilled their shipment target in the
first six months.
• China's six major TV set brands,
namely TCL, Hisense, Haier,
Changhong, Konka, and Skyworth, will
buy 7.30 million panels, accounting for
36 percent of the world's total volume.
Semiconductor Industry
Broadcom
Cost Cutting
• Chip maker Broadcom is planning to
cut 240 jobs at its Irvine headquarters,
and 630 throughout California, as the
company winds down its cellular
baseband business, according to layoff
notices sent to the state.
Broadcom’s stock performance
Ultra HD STB solution for Tata Sky
• Broadcom Corporation (NASDAQ:
BRCM), a global innovation leader in
semiconductor solutions for wired and
wireless communications, announced
that its BCM7252 high-efficiency video
codec (HEVC) H.265 system-on-chip
(SoC) will power Tata Sky's first
generation Ultra HD set-top boxes
(STBs). Tata Sky, a leading Direct-to-
Home (DTH) provider in India, and
Technicolor, a worldwide technology
leader in the media and entertainment
sector, have teamed to design and
deploy the region's first 4K STBs,
planned for mass deployment
throughout India in 2015. Broadcom's
industry-leading HEVC-enabled chipsets
provide the compression and higher
throughput required by operators and
OEMs to rapidly introduce Ultra HD
subscriber hardware and content.

! 10
Intel
Haswell CPU in Vietnam
• Intel is forging the future of its Haswell
CPU in Vietnam with the successful
launch of the first of such processor
manufactured at Intel Products
Vietnam's facility in the Saigon Hi-tech
Park on Tuesday, according to a
VietNamNet Bridge report.
• Haswell is the fourth generation of Intel
core processors built using the 22nm
technology. The chip giant was said to
have spent more than $450 million on
it.
• VNN also mentioned that the chip giant
targets to establish the Vietnam facility
as its CPU hub in the next six months,
supporting the manufacture of 80 per
cent of its desktop processors supplied
worldwide.
• Covering 46,000m2, Intel opened the
assembly and test facility in 2010,
starting with chipsets for laptops and
mobile devices. The facility was
responsible for $2 billion of Ho Chi Minh
City's export turnover in 2013, the
same year Atom SoC was launched.
Intel’s stock performance
Wireless Power Consortium
Qi Specification
• The Wireless Power Consortium (WPC),
the driving force and leader in the
global adoption of wireless power
technology, announced significant
advances to the resonant extension of
the Qi specification to offer even more
options to the wireless charging
industry.
• The integration of resonant charging
into the already present inductive
technology within the Qi specification
gives users the option to discreetly
embed wireless chargers deeper in
structures, like furniture and desktops,
or utilize direct-contact, low cost,
surface applications. Expanding the
present Qi specification assures current
Qi-compatible device owners that their
devices will be supported even as the
specification evolves and progresses.
Semiconductor Market
China Government Investment
• The central government also plans to
set up a national industry investment
fund of CNY120 billion (US$19.3
billion). The fund will mainly focus on
investing the construction of advanced
process capacity, semiconductor firm
reorganization, and mergers.
• Digitimes Research believes through
the investment fund support, China will
increase its capabilities for advanced
processes on 12-inch wafers. In
addition, there will be more China-
based semiconductor firms merging
and more acquisitions of international
firms by China-based firms. This
Digitimes Special Report examines how
the revised Central Government
guidelines and various local
government policy implementations will
affect China's the semiconductor
manufacturing, IC design, packaging &
testing and materials industry.

! 11
Service Industry
Turkcell
Loan agreement with Ziraat Bank
• Cukurova Holding said it paid Russia's
Alfa Group $1.6 billion to recover a
disputed stake in Turkcell, taking a
major step towards regaining control of
Turkey's biggest mobile phone operator
after a seven-year battle.
• Istanbul-based Cukurova signed a loan
agreement with state-run lender Ziraat
Bank in connection with the Alfa Group
payment, the company said in a
statement to the Istanbul Stock
Exchange.
Turkcell’s stock performance
Digiturk
OTT solution of AirTies
• AirTies Wireless Networks, a leading
supplier of advanced technology to the
broadcast and broadband industry, and
Octoshape, an industry leader in cloud-
based, over-the-top (OTT) stream
acceleration and contribution
technologies for broadcasters,
enterprises and carriers, announced
that Digiturk, Turkey’s leading satellite
television provider, has selected the
joint solution to deliver premium
programming over-the-top OTT to its
international customers.

! 12
Software Industry
Amazon
3D printing
• That's the sci-fi scenario Amazon
(AMZN, Tech30) is inching closer to
with the launch this week of its 3-D
Printing Store, which offers shoppers
over 200 products, including toys,
jewelry and home decorations.
• The items are produced via 3-D printer,
and can be customized by size, color,
material or with personal text and
images. A "personalization widget" lets
you play around with different designs
and preview your purchase before you
buy.
Amazon’s stock performance
Retail and Payment Industry
Square
EMV based payment
• The company, based in San Francisco,
plans to introduce a new version of its
credit card reader hardware next year,
a device that the company hopes many
small and medium-size businesses will
quickly adopt.
• The reader will look much the same as
the current one, about the size of a box
of matches; it’s what’s inside that
counts.
• Square’s new reader will be compatible
with microchip-enabled credit cards.
The microchip technology, commonly
referred to as E.M.V. (short for
Europay, Mastercard and Visa),
communicates with payments
processors to determine whether the
card is counterfeit every time it is used
to make a purchase.
PayByPhone
Mobile Parking Payment
• PayByPhone, a flagship product of
leading international payment
technology company, PayPoint, has
announced its mobile parking payment
app is available in the Amazon
Appstore for Amazon’s new Fire phone,
as well as Kindle Fire devices. The Fire
phone’s NFC capability works
seamlessly with PayByPhone’s parking
meter stickers in Seattle and San
Francisco, which feature a passive
electronic chip that stores information
such as the meter number. Users
simply wave or tap their NFC-enabled
phones over the sticker on the meter to
automatically launch the PayByPhone
app. The mobile payment system
recognizes the user and identifies the
exact parking location.

! 13
Retail and Payment Market
National Payment system in Russia
• The Central Bank decided to create its
own, brand-new platform for Russia's
national payment system, rather than
contracting a company to build the
system as was expected, according to a
statement on the regulator's website.
• The creation of a national payment
system leapt to the top of the Russian
government's list of priorities earlier
this year after international payment
systems Visa and MasterCard abruptly
stopped servicing two Russian banks
with connections to allies of President
Vladimir Putin that had been blacklisted
by the U.S. in response to Russia's
annexation of Crimea.
Energy Industry
Qnovo
Battery Technology
• A new mobile device technology looks
set to revolutionize battery charging
and smartphones equipped with it will
be available in 2015. We’ve seen news
recently about battery technology
potentially seeing large increases in
capacity and life cycles. Specifically,
researchers at Stanford University have
made significant progress on the so-
called holy grail of battery design – a
pure lithium anode that could boost
power capacity and extend battery life.
• Silicon Valley-based battery tech
company Qnovo may well have the
answer. Through extensive research
and the combining of battery
chemistry, electronics and software
engineers under one roof, it has
developed both software and
hardware-based products that work
with existing battery technology to cut
charge times by up to 75% and also
increase a battery’s overall life span
too. Even better, the technology is
already here, it’s non-intrusive and
we’re likely to see it included in phones
from the big manufacturers as early as
2015.

! 14
References
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W31 july2014

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