Samsung acquired home automation startup SmartThings for $200 million. The Mexico government will hold a bid to procure 13.7 million LCD TVs over three years for low-income families. The curved TV market was valued at $0.14 billion in 2013 and is expected to reach $8.4 billion by 2019, growing at a CAGR of 96.7%. Cisco will cut 6,000 jobs and incur $700 million in restructuring charges. The AllSeen Alliance added four new members to advance the AllJoyn open source project for device interoperability. The tablet market is maturing and Apple and Samsung's share declined from 42% to 29% as their shipments fell 34% in the first

1. BUSINESS & TECHNOLOGY
INNOVATION REPORT
Week 33
2014
Prepared by
Ferhat Ünlükal
8/17/2014

2. } BUSINESS & TECHNOLOGY INNOVATION REPORT
} 2
BUSINESS &
TECHNOLOGY
INNOVATION
REPORT
Week 33
Headlines
Consumer Electronics (CE)
• Samsung has just laid down a reported
$200 million for home automation
startup SmartThings.
• The Mexico government will hold an
open bid to procure 13.7 million LCD
TVs over three years as part of a
subsidy program for low-income
families in line with the digitization of
terrestrial TV broadcasts.
• Curved TV market was valued at USD
0.14 billion in 2013 and is expected to
reach USD 8.4 billion by 2019, growing
at a CAGR of 96.7% from 2013 to
2019.
ICT
• Cisco Systems Inc said its plan to slash
6,000 jobs will result in restructuring
charges of $700 million in cash in the
year ending July 2015.
• The AllSeen Alliance announced that
Bosch, Cloud of Things, Revolv and
Shaspa have joined the effort to
advance the AllJoyn.
• Total tablet display shipments declined
10% on year in the first half of 2014,
while combined tablet display
shipments to Apple and Samsung fell
34%.
• Parks Associates announced Internet of
Things (IoT) research showing nearly
4% of U.S. households will have a
smart home controller by the end of
2014.
• IoT and M2M Communication Market is
expected to grow from $128.7 billion in
2014 to $498.92 billion in 2019, at an
estimated CAGR of 24.42% from 2014
to 2019.
• Spending on smart home systems and
services in the US will hit $18 billion in
2014 and more than double to $39
billion by 2019.
• The Global Interactive Whiteboard
market by revenue will grow at a CAGR
of 15.95 percent over the period 2014-
2018.
• IT market in Turkey to grow at a CAGR
of 8.43 percent over the period 2013-
2018.
Flat Panel Industry
• AU Optronics (AUO) will begin
production of 1.6-inch AMOLED panels
for use in smart wearable devices in
the fourth quarter of 2014.
• Innolux and AU Optronics (AUO) are
looking to increase Ultra HD TV panel
shipments.
• Innolux recorded the highest net profit
margin for the second quarter of 2014.
• BOE Technology will appropriate a
portion of its tablet panel production
capacity for making notebook and TV
panels.
• Taiwan-based makers will ship 134.7
million large-size (9-inch and above)
TFT-LCD panels in the second half of
2014.
• The market for plastic and flexible
AMOLED displays will rise to $16bn by
2020.
Semiconductor Industry
• Intel formally unveiled its 14nm
manufacturing technology.
• Worldwide revenues for
communications processors rose to
$1.8 billion in 2013.
Software Industry
• Google Inc is buying JetPac Inc.

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Retail and Payment Industry
• First Data has dramatically expanded
its presence in Brazil.
• Gilbarco Veeder-Root and VeriFone
Systems announced that they are
partnering to offer next generation
forecourt payment solutions.
• Cardtek USA announced Cordis4Net to
satisfy the payment system needs of e-
commerce, m-commerce,
transportation and mobile network
operator companies.
Consumer Electronics (CE)
Samsung
Acquisition of SmartThings
• Samsung has just laid down a reported
$200 million for home automation
startup SmartThings, a company born
out of a popular Kickstarter
campaign back in 2012.
• SmartThings announced the buyout on
its blog on Thursday, with CEO and co-
founder Alex Hawkinson highlighting
Samsung’s “full support” of his
company’s vision to “create a totally
open smart home platform that brings
together third-party developers, device
makers, and consumers.”
• SmartThings, which employs around 50
people, is currently based in DC,
though following the acquisition it’ll
shift most of its operations across the
country to Palo Alto to work with the
Korean tech giant’s Open Innovation
Center. However, Hawkinson said
SmartThings will continue to act as an
independent company.
Samsung’s stock performance
Foxconn
Mexico Government Open Bid
• The Mexico government will hold an
open bid to procure 13.7 million LCD
TVs over three years as part of a
subsidy program for low-income
families in line with the digitization of

4. } BUSINESS & TECHNOLOGY INNOVATION REPORT
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terrestrial TV broadcasts. Foxconn
Electronics stands a considerably large
chance of winning the procurement
orders, and affiliate Innolux is likely to
supply panels, according to Digitimes
Research.
• So far, six vendors/makers with TV
production in Mexico, including
Samsung Electronics, LG Electronics
and Foxconn, will participate in the
bidding, Digitimes Research indicated.
• Meanwhile, in the China market, web
video portals have been forced to give
up delivering video services via the
Internet and become pure providers of
video content due to the State
Administration of Radio, Film and
Television's IPTV regulatory measures.
However, as many white-box OTT
(over the top) models, most of which
are not in compliance with regulations,
are available for sale, web video portals
are likely to maintain their market
status by virtue of OTT devices,
Digitimes Research noted.
Foxconn’s stock performance
CE Market
Curved TV Market
• According to a new market report
published by Transparency Market
Research "Curved Televisions Market
(By Screen Size - Large-sized Curved
Televisions, Mid-sized Curved
Televisions and Small-sized Curved
Televisions) - Global Industry Analysis,
Size, Share, Growth, Trends and
Forecast, 2013 - 2019", the market was
valued at USD 0.14 billion in 2013 and
is expected to reach USD 8.4 billion by
2019, growing at a CAGR of 96.7%
from 2013 to 2019. North America was
the largest contributor to the global
curved televisions market in 2013,
which accounted for around 53%
revenue share. The rest of the world
region is expected to be the fastest
growing market for curved televisions
during the forecast period from 2013 to
2019 followed by Asia-Pacific with
CAGRs of 147.6% and 111.3%
respective. The enhanced features and
reducing prices of LED televisions
across the globe are the major factors
driving the market growth.

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ICT Industry
Cisco
Cost Cutting
• Network equipment maker Cisco
Systems Inc said its plan to slash
6,000 jobs will result in restructuring
charges of $700 million in cash in the
year ending July 2015.
• The latest round of layoffs, announced
on Wednesday, is at least the fourth
workforce reduction in about as many
years for a company once synonymous
with the Internet boom and could spark
a shakeup in management, analysts
said.
Cisco’s stock performance
AllSeen Alliance
New Members
• The AllSeen Alliance, the broadest
Internet of Everything open source
project, announced that Bosch, Cloud
of Things, Revolv and Shaspa have
joined the effort to advance the AllJoyn
open source project as the common,
universal framework for autonomous,
intelligent interoperation among a
range of everyday objects and devices.
• With the addition of these four
companies, the AllSeen Alliance now
totals 62 members. Alliance members
include leading consumer electronics
manufacturers, home appliance
makers, automotive companies,
Internet of Things cloud providers,
enterprise technology companies,
innovative startups, chipset
manufacturers, service providers,
retailers and software developers.
ICT Market
Tablet Market Competition
• As the tablet market matures and
growth slows, the dominance of market
leaders Apple and Samsung is
weakening. According to the latest NPD
DisplaySearch Monthly Tablet PC Panel
Shipment & Value Chain report, total
tablet display shipments declined 10%
on year in the first half of 2014, while
combined tablet display shipments to
Apple and Samsung fell 34%. While the
two companies had a 42% share of
tablet panel shipments in the first half
of 2013, their combined share dropped
to 29% in the first half of 2014.
• "As the tablet PC category matures,
Apple and Samsung are facing new
growth challenges," said Brian Huh,
senior analyst for small/medium
displays for NPD DisplaySearch. "The
tablet leaders have been dealing with
an increase in large-screen smartphone
sales, a slowdown in the consumer
replacement cycle, and greater
competition from white-box brands and
other low-cost tablets."
• Total tablet panel shipments to Apple
were just 31 million in the first half of
2014, down 14% on year. During that
same period, 14.7 million panels
shipped to Samsung, down 29% on
year.

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IoT
• Parks Associates announced Internet of
Things (IoT) research showing nearly
4% of U.S. households will have a
smart home controller by the end of
2014, with an estimated increase to
nearly 6% by 2015. The
firm's Evolution of Smart Home and the
Internet of Things, which includes data
from a 1Q 2014 survey of 10,000 U.S.
broadband households, also reports
64% of all smart devices currently in
households operate as part of a
security or home controls system.
Smart devices include motorized door
controls, lighting controls, networked
security camera, and programmable
thermostats, among other devices.
IoT & M2M Market
• The Internet of Things (IoT) &
Machine-to-Machine (M2M)
Communication Market is expected to
grow from $128.7 billion in 2014 to
$498.92 billion in 2019, at an estimated
CAGR of 24.42% from 2014 to 2019.
Smart Home Systems Market
• Spending on smart home systems and
services in the US will hit $18 billion in
2014 and more than double to $39
billion by 2019 according to Strategy
Analytics' Smart Home Strategies latest
forecast. Apple, Google and Samsung
are among the big consumer brands
posturing for position in the market as
ADT, Vivint, Comcast and AT&T drive
growth in the interactive security
market.
Interactive White Board Market
• The analysts forecast the Global
Interactive Whiteboard market by
revenue will grow at a CAGR of 15.95
percent over the period 2014-2018.
Turkish IT Market
• TechNavio's analysts forecast the IT
market in Turkey to grow at a CAGR of
8.43 percent over the period 2013-
2018.

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Flat Panel Industry
AUO
AMOLED Panels
• AU Optronics (AUO) will begin
production of 1.6-inch AMOLED panels
for use in smart wearable devices in
the fourth quarter of 2014, according
to Taiwan-based supply chain makers.
• AUO has been developing small- to
medium-size OLED panels since 2011,
and it has supplied 5-inch HD and 5.5-
inch Full HD panels used in
smartphones for China- and Taiwan-
based vendors, the sources indicated.
• Addressing demand for small-size OLED
applications, Japan government-
sponsored Innovation Network
Corporation of Japan (INCJ), Sony,
Panasonic and Japan Display will jointly
invest JPY20 billion (US$196 million) to
set up an OLED panel production line in
2015 and kick off volume production in
2018, the sources noted.
• Samsung Display currently has 90% of
the gloabl market for small- to
medium-size OLED panels, but AUO
believes the market may take off only
when there is competition from more
players.
• AUO had previously expected the small-
to medium-size OLED market to take
off in 2012. As demand for smart
wearable devices has emerged, there is
expected to be considerable demand
for small-size OLED panels in 2015, the
sources noted.
AUO’s stock performance
Ultra HD TV Panel Shipments
• Taiwan-based Innolux and AU
Optronics (AUO) are looking to increase
Ultra HD TV panel shipments and their
global shares in the market segment in
second-half 2014, but the goal is not
easy to attain because their production
capacities are fully occupied and it is
difficult to increase output, according to
sources with supply chain makers.
• Another obstacle is that their Korean
competitors Samsung Display and LG
Display have seen growing support
from TV vendors, the sources said.
• Innolux and AUO together occupied
over 70% of global UHD TV panel
supply in 2103, but Samsung Display
and LG Display overtook them to gain a
combined share of nearly 50% in
second-quarter 2014 mainly by
supplying low-cost RGBW (RGB +
white) UHD TV panels for China-based
TV vendors, the sources indicated.
• Faced with increasing competition from
the Korean competitors, Innolux is
making efforts to reinforce its UHD
panel operation in the China market, as
well as in Europe and North America.
And AUO will offer 50-, 55- and 65-inch
UHD TV panels, the sources said.
• As the price gap between Full HD LCD
TVs and UHD models is closing, UHD's
penetration of the global LCD TV
market is expected to rise from over
3% currently to 6-8% by the end of
2014, and global demand for UHD TVs
will reach 10 million units in second-
half 2014, the sources indicated.
Innolux
High Profit Margin
• Taiwan-based Innolux, among fellow
makers AU Optronics, Samsung
Display, LG Display and Sharp,
recorded the highest net profit margin
for the second quarter of 2014 mainly
due to large increases in shipments of
Ultra HD TV panels and notebook
panels, according to Digitimes
Research.

8. } BUSINESS & TECHNOLOGY INNOVATION REPORT
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• As Samsung Display has a large portion
of revenues coming from panels used
in Samsung smartphones and tablets
and LG Display has so from panels
used in iPhone and iPad, both panel
makers saw decreasing profitability
mainly because sales of these devices
in the second quarter were short of
expectations, Digitimes
Research indicated.
• Sharp is one of the three suppliers of
panels used in iPhone and therefore its
profitability highly hinges on orders for
iPhone panels.
• The Japan government-sponsored
Innovation Network Corporation of
Japan, Japan Display, Sony and
Panasonic in late July decided to
establish a joint venture, JOLED,
specifically for R&D of OLED panels for
use in tablets and notebooks.
Innolux’s stock performance
BOE
Tablet Panel
• China-based panel maker BOE
Technology, in view of slow growth in
global tablet sales, will appropriate a
portion of its tablet panel production
capacity for making notebook and TV
panels, while LG Display will shift part
of its notebook panel capacity to
produce smartphone and industrial-use
panels in the third quarter, according to
industry sources.
• BOE is the largest supplier of tablet
panels, with a global market share of
29% in the first half of 2014, followed
by 15% for Samsung Display and
Chunghwa Picture Tubes, and 13% for
LG Display, the sources cited NPD
DisplaySearch as indicating. BOE will
shift some of its table panel capacity to
HD notebook-use panels for Lenovo,
Dell and Hewlett Packard, and 32-inch
TV panels, the sources said.
Flat Panel Maret
Large Size Panel Shipments
• Taiwan-based makers will ship 134.7
million large-size (9-inch and above)
TFT-LCD panels in the second half of
2014, up 3.8% from the first half,
according to Digitimes Research.
• As Taiwan-based makers will
appropriate portions of large-size panel
production capacities for making small-
to medium-size models, their combined
large-size panel capacity in the second
half of 2014 will shrink by 0.1% from
the first half, Digitimes
Research indicated. In contrast, China-
based BOE Technology will expand
capacity at an 8.5G factory in the
second half of 2014 and LG Display and
Samsung Display will do so at their
8.5G factories in China as well,
rendering it difficult for Taiwan-based
makers to increase large-size panel
shipments.
• In addition, LG Display and Samsung
Display will see increased supply of
panels used in iPad and Samsung
tablets respectively, allowing their
large-size panel shipments in the
second half of 2014 to grow more than
Taiwan-based makers' average.
Plastic and Flexible Displays
• The next evolution is plastic and
flexible displays with the first flagship
phone with a flexible display to ship in
2017. Based on this scenario, the
market for plastic and flexible AMOLED
displays will rise to $16bn by 2020.

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Semiconductor Industry
Intel
14 nm Technology
• Intel formally unveiled its 14nm
manufacturing technology, a capability
the company believes will usher in a
new generation of fanless Ultrabooks
and tablets.
• Intel’s 14nm technology will generally
be known as Broadwell—the
manufacturing technology that will
underscore a new generation of
products from tablets up through
processors powering servers. Within
the notebook and tablet market.
• Intel is expected to launch the Core M
products and the Broadwell generation
at the IFA show in September. An Intel
spokeswoman said the Core M will ship
before the end of 2014, with systems
on shelves by the end of 2014.
Broadwell chips for the desktop, using
the Core brand name, will follow shortly
thereafter, she said.
Intel’s stock performance
Semiconductor Market
Communication Processor Market
• Worldwide revenues for
communications processors rose to
$1.8 billion in 2013, an increase of
8.8% compared to 2012, according to
the latest communications processor
market share and forecast study from
International Data Corporation (IDC).
Software Industry
Google
Acquisition of JetPac
• Google Inc is buying JetPac Inc, the
startup that designs social travel
applications disclosed on its website,
without providing details.
Google’s stock performance

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} 10
Retail and Payment Industry
First Data
Mobile Payment
• First Data, the global leader in payment
processing solutions and e-commerce,
has dramatically expanded its presence
in Brazil with the launch of Bin, the
company’s acquiring solution developed
specifically for the local market.
Leveraging over 40 years of experience
in the payments industry and
international markets, First Data will
differentiate itself in the Brazilian
market with an information rich, easy-
to-use solution that will be delivered to
merchants via a compelling client
experience and competitive prices.
• Bin arrives in the Brazilian market with
agreements signed with the primary
card schemes and has already begun
its operations with MasterCard for
credit, debit and installment payments,
anticipation of credit receivables and
other services. Card acceptance with
other card schemes such as Visa and
Cabal, will be enabled in coming weeks,
signaling the start of broader
commercial operations.
Verifone
Cooperation with Gibarco for pump
payment solution
• Gilbarco Veeder-Root, the worldwide
leader in retail petroleum technology,
and VeriFone Systems, Inc. (PAY), the
global leader in secure electronic
payment solutions, announced that
they are partnering to offer next
generation forecourt payment solutions
and to create the largest at-pump
interactive digital media network
worldwide.
• The two companies will collaborate on
future fuel dispenser payment
platforms to be developed and supplied
by VeriFone. The solutions will meet
convenience and fuel retailers’
functionality and regulatory needs in an
increasingly complex payment
ecosystem, as well as offer at-pump
media advertising and entertainment.
• Gilbarco will become the software and
solutions integration lead and sales and
service provider for forecourt payment
systems developed under the
partnership. The companies will work
together to transition the payment
electronics in Gilbarco’s global
dispenser product lines to VeriFone
technology. However, both companies
will continue to develop and market
their point of sale systems for the
petroleum and convenience market
independently.
Verifone’s stock performance
CardTek
Cordis4Net Payment Platform
• Cardtek USA, the American division
of Cardtek Group - the global leader in
software for financial transactions and
EMV migration, announced Cordis4Net
to satisfy the payment system needs of
e-commerce, m-commerce,
transportation and mobile network
operator companies. The Cordis4Net
platform will play a big role in the
continuous growth of these key
markets in the dynamic payments
systems industry. The platform offers a
multi-layered infrastructure solution for
these companies to retain customers by
expanding their service offerings with
less customization efforts in a cost-
effective, easy, end-to-end secure and
competitive manner.
• "With over a decade of international
experience of EMV implementation, we
have developed robust, high quality
and cost-effective solutions for financial

11. } BUSINESS & TECHNOLOGY INNOVATION REPORT
} 11
institutions and other companies
providing secure environment solutions
for the public," said Gokhan Inonu,
President of Cardtek USA. "We have
developed Cordis4Net to enable these
vertical players to enrich their customer
service offerings."
• With Cordis4Net, companies can
effectively manage the entire virtual
POS infrastructure through a single
interface, monitor customer profiles
and card inventories, process
open/closed loop transportation card
solutions, provide NFC Mobile payment
solutions, create their own wallets and
apply cross-loyalty programs.
• The platform also offers a "payment
gateway," and a web-based and mobile
compatible interface, provides a "3D
Secure Support and Rule Management"
and detailed, effective, parametric
reports based on the registered
cardholders and/or merchants,
supports a prepaid card management
system, and enables the entire
electronic payment system.
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