This weekly business and technology innovation report from week 41 of 2014 summarizes headlines in consumer electronics, ICT, flat panel displays, semiconductors, software, services and other industries. Key points include Samsung flagging a 60% drop in profits, Vizio maintaining low prices on TVs, HP splitting into two companies, Cisco establishing an $80M joint venture for cloud computing, and the global smart city market growing at 14% annually.

1. 2014
BUSINESS & TECHNOLOGY
INNOVATION REPORT
Week 41
Prepared by
Ferhat Ünlükal
10/12/2014

2. } BUSINESS & TECHNOLOGY INNOVATION REPORT
BUSINESS &
TECHNOLOGY
INNOVATION
REPORT
Week 41
Headlines
Consumer Electronics (CE)
• Samsung Electronics flagged a near 60
} 2
percent on-year plunge in its third
quarter operating profit.
• North America, with Vizio maintaining
pricing for 50-inch units below
US$1,000.
• Global 3D TV market will grow at a
CAGR of 35.85 percent over the period
2013-2018.
ICT
• Sony also revealed that the $250
Smartwatch 3 will be accompanying its
flagship smartphone to the big red
network.
• Hewlett-Packard (HP) will split into two
companies, HP Enterprise and HP Inc.
• Cisco will establish an $80 million joint
venture with TCL Corp to invest in
commercial cloud computing services.
• Foxconn Electronics (Hon Hai Precision
Industry) has announced that it has
acquired 31.974 million shares of
Taiwan Mobile.
• About 1,000 workers at a Foxconn
plant went on strike.
• Hon Hai plans to boost its research and
development capabilities at its
headquarters with founder Terry Gou
saying up to 5,000 engineers will be
hired in two years.
• The Server Virtualization market in the
US to grow at a CAGR of 27.72 percent
over the period 2013-2018.
• The cloud computing market will be
worth $75bn this year.
• Worldwide PC shipments during the
three months ended in September
totaled 78.5 million units, a 2 percent
decline from last year.
• The global smart cities market is
growing at a CAGR of 14.0% from 2013
to 2019.
Flat Panel Industry
• Sharp has developed 7.0" tablet device
equipped with MEMS-IGZO display.
• Sharp is close to commercializing its
first product that uses a MEMS display.
• LCoS market was valued at $148.4
million in 2013, and is expected to
reach $458.3 million by 2018.
• Wearable Display market will surge to
800 million units in 2023, up from 54
million in 2014.
Semiconductor Industry
• Samsung will spend 15.6 trillion won
($15 billion) building a chip plant in
South Korea.
• Broadcom, one of the founding
members of the Open Interconnect
Consortium, has left the group over a
disagreement.
• Freescale Semiconductor (FSL)
introduced an exceptionally versatile
and reliable Internet of Things (IoT)
gateway reference design.
• Some Taiwan-based LCD driver IC
vendors, have begun ramping up
shipments of non-LCD driver IC
products.
• The indoor location market is expected
to grow from $597 million in 2014 to
$3961.8 million by 2019.
• The global pressure sensors market is
expected to reach USD 9,434.1 million
by 2020.

3. } BUSINESS & TECHNOLOGY INNOVATION REPORT
} 3
Software Industry
• Microsoft Corp.(MSFT) has reportedly
signed a letter of intent to purchase
text analysis tool maker Equivio Ltd.
• Microsoft is actively developing a
meeting-room application.
• Google has introduced an experimental
Project.
Service Industry
• Vodafone Group Plc. (VOD) is spending
$1 billion to upgrade its network and
retail stores in India.
• Telefónica has submitted an offer for
Brazilian telecom operator GVT worth
€6.7 billion (US$9 billion).
Healthcare & Hospitality Industry
• The market for RTLS healthcare
technologies is estimated to reach
$2,081.05 million by 2020, at a CAGR
of 32.9% from 2014 to 2020.
• The electronic medical record market in
the Asian region is estimated to grow
to $2,328.0 million by 2018, at a CAGR
of 9.4% from 2013 to 2018.
Retail and Payment Industry
• VeriFone announced that Phoenix
Managed Networks has completed the
deployment of VeriFone’s next-generation.
• VeriFone announced RubyCi, an
integrated site controller and point-of-sale
(POS) solution that combines
features of its Ruby2 POS system and
Commander Site Controller.
• VeriFone and Sunoco, Inc. announced
that VeriFone has been selected as the
exclusive media provider for Sunoco’s
fueling islands.
• Facebook is all set to launch a new
peer-to-peer payment feature within its
Messenger app.
• First Data Corporation, announced the
launch of First Data Salutes.
• Posiflex Technology Inc. will launch a
new revolutionary mobile POS together.
• Macy's is expanding the use of its
shopkick ShopBeacon.
• Mobile POS installs are expected to
grow by 110% this year as more
retailers replace electronic cash
registers and POS terminals with mobile
devices.
• Mobile proximity payments in the USA,
will reach $118 billion, up from $3.5
billion in 2014.

4. } BUSINESS & TECHNOLOGY INNOVATION REPORT
Consumer Electronics (CE)
Samsung
Financial
• Samsung Electronics flagged a near 60
} 4
percent on-year plunge in its third
quarter operating profit, as its key
smartphone sector continued to
struggle in the face of increased
competition.
• Operating profit for the July-September
period was estimated at 4.1 trillion won
($3.8 billion), down 59.6 percent from
the third quarter last year, the
company said.
• Sales were estimated at 47 trillion won,
down 20.4 percent from 2013.
Samsung’s stock performance
Vizio
50’’ TV prices
• North America, with Vizio maintaining
pricing for 50-inch units below
US$1,000, according to a report from
the China Times.
• The report cited statistics from
DisplaySearch stating Vizio will price
50-inch Ultra HD TVs US$998 over the
Black Friday period while 50-inch LCD
TVs will go for US$548. Samsung
Electronics will offer 50-inch Ultra HD
TVs for US$1,298 and LG Electronics
US$1,399.
• Market observers expect the North
America Ultra HD TV market to reach
one million units in 2014 followed by
four million in 2015. The market in
China is expected to reach nine million
followed by 17 million over the same
period, the report said.
• Vizio aims to see 10% growth in LCD
TV shipments in 2014 and over 50% of
panel supply is expected to come from
Taiwan makers, the report added.
CE Market
3DTV Market
• TechNavio's analysts forecast the
Global 3D TV market will grow at a
CAGR of 35.85 percent over the period
2013-2018.

5. } BUSINESS & TECHNOLOGY INNOVATION REPORT
} 5
ICT Industry
Sony
SmartWatch 3
• Sony also revealed that the $250
Smartwatch 3 will be accompanying its
flagship smartphone to the big red
network.
• The Sony Smartwatch 3 originally
debuted at IFA back in September. It
will feature a 1.2-GHz quad-core ARM
A7 processor, 512MB of RAM,
Bluetooth, NFC and Android Wear (a
first for Sony). Sony also equips the
Smartwatch 3 with 420 mAh battery,
which may offer better longevity than
the endurance seen on the Moto 360
(320 mAh battery).
Sony’s stock performance
HP
Spliting into two companies
• Hewlett-Packard (HP) will split into two
companies, HP Enterprise and HP Inc.,
but this will not cause a substantial
change to its ODM orders in the short
term. But if this is the first step to
selling HP Inc. (which will focus on PC
and printer sales) eventually, the long-term
influence remains to be seen,
according to sources with Taiwan-based
ODMs.
• The sources pointed out that HP's
move, following Sony's decision to sell
its PC business, and Toshiba's and
Samsung Electronics' downsizing their
PC business scales, has again shown
that hardware vendors are facing
difficulties trying to achieve growth and
are seeing their profits declining.
• HP's desktop orders are outsourced to
makers such as Foxconn Electronics
(Hon Hai Precision Industry), while
notebook orders are given to Quanta
Computer, Inventec, Wistron and
Compal Electronics. Quanta handles
most of HP's consumer notebook
assembly and Inventec is in charge of
enterprise notebooks, the sources
noted.
• HP's servers are outsourced to
Foxconn, Inventec, Wistron and Mitac,
while printers are manufactured by
Kinpo, Cal-Comp and Foxconn, the
sources added.
HP’s stock performance
Cisco
JV with TCL for Cloud Computing
• Cisco Systems Inc will establish an $80
million joint venture with Chinese
hardware manufacturer TCL Corp to
invest in commercial cloud computing
services, TCL said in a stock exchange
filing on Thursday.
• Cisco will invest $16 million in the new
firm, which has not been named and is
still being registered, and hold a 20
percent stake, the filing said. TCL will
pay $64 million for an 80 percent
share. These investments will be made
over three stages, each of which will
require the approval of both parties. No
timeframe for the investments was
given.

6. } BUSINESS & TECHNOLOGY INNOVATION REPORT
} 6
Cisco’s stock performance
Foxconn
Acquisition of Taiwan Mobile
• Foxconn Electronics (Hon Hai Precision
Industry) has announced that it has
acquired 31.974 million shares of
Taiwan Mobile (TWM) for a 0.93%
stake at NT$93.2 per share and a total
of NT$2.98 billion (US$98.5 million)
through a venture capital subsidiary.
• According to market analysts,
Foxconn's investment in TWM is to
enhance cooperation with the 4G
mobile communication operator. TWM
has acquired a 14.9% stake in 4G
licensee Ambit Microsystems - a
Foxconn Group company - at NT$2.98
billion and 4G frequency band units
728-733MHz (for upload) and 783-
788MHz (for download) from Ambit at
NT$3.433 billion.
Foxconn’s stock performance
Stike in China
• About 1,000 workers at a Foxconn
plant in southwest China assembling
printers and computers for companies
including Hewlett-Packard Co. went on
strike for several hours this week
demanding higher pay.
• The Taiwan-based company, formally
known as Hon Hai Precision Industry
Co., said the workers walked off the job
for four hours Wednesday at its
production site in Chongqing. About 20
workers went on strike but further
details on that stoppage weren’t
available.
5000 engineers within 2 years
• Taiwan's tech giant Hon Hai plans to
boost its research and development
capabilities at its headquarters, with
founder Terry Gou saying up to 5,000
engineers will be hired in two years,
local media reported Sunday.
SoftIron
ARM BAsed Server Motherboard
• SoftIron(R) announced it has
commenced shipping of its 64-bit
ARMv8-based enterprise-grade server
motherboard at the 2014 IP Expo event
taking place in London, UK on October
8-9, 2014.
• The SoftIron APM6408.2 server
motherboard introduces technology
partner Applied Micro Circuits
Corporation's (AMCC) 64-bit ARM-based
X-Gene(TM) Server on a
Chip(R) solution to the data centre and
high performance computing markets.
IP Expo attendees can discuss the
technology first-hand with SoftIron at
stand Pod2V4 of the Futures Den.
ICT Market
Server Virtualization Market
• Server virtualization is the replication of
multiple server instances catering to
different computing needs of the
enterprises on a single server
hardware. Every instance of the server

7. } BUSINESS & TECHNOLOGY INNOVATION REPORT
} 7
being replicated on the physical server
acts as an individual server which
increases the performance of the server
infrastructure. The computing
resources are centrally pooled at the
server and allocated to the various
computing services being provided
through the server. The computing
resources are replicated during the
execution of the applications. The
server capacity is used to its optimal
level by adopting server virtualization
solutions.
• The analysts forecast the Server
Virtualization market in the US to grow
at a CAGR of 27.72 percent over the
period 2013-2018.
Cloud Computing
• The cloud computing market will be
worth $75bn this year. It has grown
exponentially over the last 5 years.
Cloud computing continues to gain
acceptance in business, enterprise and
consumer markets.
PC Shipments
• IDC estimates worldwide PC shipments
during the three months ended in
September totaled 78.5 million units, a
2 percent decline from last year.
Gartner pegged the worldwide sales at
79.4 million units, a decrease of less
than 1 percent.
• This marks the ninth time in the past
10 quarters that worldwide PC
shipments have dropped, a slump
driven by the growing popularity of
mobile devices for work, entertainment,
information and communications.
• The downturn has been easing now
that most people who wanted a tablet
computer and could afford to buy one
have done so, particularly in the U.S.
That phenomenon has been hurting
Apple Inc., where iPad shipments fell
13 percent in the first half of the year.
The Global Smart City Market
• The global smart cities market is
growing at a CAGR of 14.0% from 2013
to 2019. It should reach an overall
value of US$1,265.85 billion in 2019; it
was valued at $506.78 billion in 2012.
All facts and statistics have been
compiled using the research report
titled "Global Smart Cities Market -
Industry Analysis, Size, Share, Growth,
Trends and Forecast, 2013 - 2019", by
Transparency Market Research.

8. } BUSINESS & TECHNOLOGY INNOVATION REPORT
Flat Panel Industry
Sharp
MEMS IGZO Display
• Sharp has developed 7.0" tablet device
} 8
equipped with MEMS-IGZO display for
the first time in industry, and will
commercialize the product mainly
targeting Japan's B2B market in the
first half of 2015.
Sharp’s stock performance
MEMS Display
• Sharp is close to commercializing its
first product that uses a MEMS display -
- a new type of flat-panel display that
boasts deeper and richer colors than
traditional LCD screens and lower
power consumption.
• The screen was developed over the last
three years with Qualcomm subsidiary
Pixtronix and Sharp hopes it will one
day replace LCD screens in portable
devices.
• That's a big deal for both Sharp and
Qualcomm. Sharp is a market leader in
LCD and has pioneered numerous
innovations in the technology while
Qualcomm has been trying to
popularize MEMS for several years.
Qualcomm has fitted a MEMS display in
its prototype Toq smartwatch.
• The way MEMS displays control the
light from each pixel is fundamentally
different than the way LCD displays
work.
Flat Panel Market
European LCoS Display Market
• The European Liquid Crystal on Silicon
(LCoS) display market report defines
and segments the concerned market in
Europe with analysis and forecast of
revenue. This market was valued at
$148.4 million in 2013, and is expected
to reach $458.3 million by 2018, at a
CAGR of 25.3% from 2013 to 2018.
Wearable Display Market
• From a projected $300 million this year,
industry revenue will climb more than
80 percent annually for at least four
more years as high resolution and color
displays are increasingly adopted in
devices. By 2023, the market will be
worth some $22.7 billion.
• In terms of shipments, the market will
surge to 800 million units in 2023, up
from 54 million in 2014.

9. } BUSINESS & TECHNOLOGY INNOVATION REPORT
} 9
Semiconductor Industry
Samsung
Building a Chip Plant
• Samsung Electronics Co. (005930) will
spend 15.6 trillion won ($15 billion)
building a chip plant in South Korea as
it heads for the roughest quarterly
result in years amid competition from
Apple Inc. and Xiaomi Corp.
smartphones.
Broadcom
Leaving from OIC
• Broadcom, one of the founding
members of the Open Interconnect
Consortium, has left the group over a
disagreement on how to handle
intellectual property, according to a
source involved on the OIC.
The standards group was formed this
summer as a competitor to Qualcomm’s
efforts to push AllJoyn as a device-to-device
protocol that would help identify
and assess the capabilities of
connected devices.
Broadcom’s stock performance
Freescale
IoT
• Freescale Semiconductor (FSL)
introduced an exceptionally versatile
and reliable Internet of Things (IoT)
gateway reference design supporting a
broad array of IoT applications
including building/home management,
smart cities, networked industrial
services and other applications where
performance and reliability are critical.
• Designed in collaboration with
Freescale manufacturing partner
TechNexion, the reference design
leverages the proven security, class-leading
efficiency, advanced
virtualization support and rich set of
peripherals of the award-winning QorIQ
LS1021A processor, which has reached
volume sampling and is now available
for ordering.
Freescale’s stock performance
Semiconductor Market
Ramping up shipments of Non LCD Driver
IC
• Some Taiwan-based LCD driver IC
vendors, including Himax Technologies,
Sitronix Technology and ILi Technology
(Ilitek), have begun ramping up
shipments of non-LCD driver IC
products, which are expected to
contribute significantly to sales and
profit growth for the companies in
2014, according to industry sources.
• Himax has been ramping up shipments
of its LCOS modules to international
brands after it managed to ship the
modules to Google for Google Glass,
said the sources.
• Himax has also been landing more
orders for its CMOS sensors, touch-controller
ICs and TV ASIC devices, the
sources added.
• Sitronix, which has been focusing on
STN driver ICs, has significantly

10. } BUSINESS & TECHNOLOGY INNOVATION REPORT
} 10
ramped up shipments of its ambient
light sensors and accelerometers since
the second half of 2013.
• Sitronix has also seen its gross margin
and profitability swing back to a growth
track, pushing its share price to a
three-year high recently, indicated the
sources.
• Meanwhile, Ilitek's touch-controller ICs
have continued to gain ground in
China's smartphone and tablet sectors,
as Novatek Microelectronics is likely to
double shipments of its TV chips in
2014, said the sources.
Indoor Location Market
• The indoor location market is expected
to grow from $597 million in 2014 to
$3961.8 million by 2019, at an
estimated Compound Annual Growth
Rate (CAGR) of 46.0% from 2014 to
2019. Key players in this market
include Apple, Broadcom, Cisco,
Ericsson, Google, Nokia, Microsoft,
Motorola, Qualcomm and Siemens.
The Global Pressure Sensors Market
• The global pressure sensors market is
expected to reach USD 9,434.1 million
by 2020, according to a new study by
Grand View Research, Inc. Favorable
regulations including the U.S.
government’s directive aimed at
mandatory installation of Tire Pressure
Monitoring Systems (TPMS) in vehicles
are expected to be critical for market
development.
Software Industry
Microsoft
Acquisition of Equivio
• Microsoft Corp.(MSFT) has reportedly
signed a letter of intent to purchase
Israel-based text analysis tool maker
Equivio Ltd.
• According to The Wall street journal,
the deal, which has not been confirmed
by either party, could cost Microsoft
around $200 million.
• Equivio and Microsoft’s relationship
dates back to 2006. Equivio has been
working with Microsoft Technologies,
which includes the likes of Windows XP,
SQL Server and SharePoint Serve.
• The Israel-based company fabricates
text-analytics products which are used
for legal and compliance e-discovery
tasks. Its core product is Zoom – "a
court-approved machine learning
platform for the legal area". Zoom uses
machine learning algorithms that
simplify samples of texts marked as
appropriate to the issue at hand, to
apply the sorting logic to groups of
texts, such as legal documentation.
Microsoft’s stock performance
Meeting Room Applications
• Microsoft is actively developing a
meeting-room application designed to
streamline the entire process, including
sharing data and recognizing
participants, according to company co-founder
Bill Gates.

11. } BUSINESS & TECHNOLOGY INNOVATION REPORT
} 11
Google
IoT without dedicated app
• Google has introduced an experimental
project involving allowing users to
interact with IoT objects without the
need to install a dedicated app.
Google’s stock performance
Service Industry
Vodafone
Upgrading network and reseller in India
• Vodafone Group Plc. (VOD) is spending
$1 billion to upgrade its network and
retail stores in India as it counts on
surging data use to drive growth in a
market where the average customer
spends about $3 a month.
Vodafone’s stock performance
Telefonica
Acquisition of GVT
• Telefónica has submitted an offer for
Brazilian telecom operator GVT (Global
Village Telecom) worth €6.7 billion
(US$9 billion), as it seeks to build up its
business in Brazil by integrating mobile
and fixed broadband with pay-TV
services.
Telefonica’s stock performance

12. } BUSINESS & TECHNOLOGY INNOVATION REPORT
Hospitality&Healthcare Industry
Hospitality & Healthcare Market
RTLS Healthcare Market
• The market for RTLS healthcare
} 12
technologies is estimated to reach
$2,081.05 million by 2020, at a CAGR
of 32.9% from 2014 to 2020.
• RTLS solutions is a system that allows
real time tracking of assets and
personnel that are tagged with active
RFID tags with the help of different
technologies such as RF signals, Wi-Fi,
UWB, Infrared, and other wireless
technologies. The tracking of resources
in a hospital facility is a major and
long-standing concern in the healthcare
industry as it directly affects the
operational cost and efficiency of the
staff. Hence, with the several wireless
technologies that can provide the real
time tracking, hospitals now have this
opportunity to use these technologies
to manage and control their assets and
staff for enhanced operational
efficiency, workflow optimization, and
patient satisfaction.
The Asian Electronic Medical Record Market
• The Asian Electronic Medical Record
(EMR) market report defines and
segments the concerned market in
Asian with analysis and forecast of
revenue. The electronic medical record
market in the Asian region is estimated
to grow to $2,328.0 million by 2018, at
a CAGR of 9.4% from 2013 to 2018.
Retail and Payment Industry
Verifone
Cooperation with Phoenix
• VeriFone Systems, Inc. (PAY),
announced that Phoenix Managed
Networks has completed the
deployment of VeriFone’s next-generation
IntelliNAC i6 network access
controller to Phoenix’s PCI compliant
transactions network. IntelliNAC has
been certified by select payment
processors on the Phoenix network and
is now processing nearly one hundred
million transactions a month.
Verifone’s stock performance
Integration with Ruby 2
• VeriFone Systems, Inc. (PAY),
announced RubyCi, an integrated site
controller and point-of-sale (POS)
solution that combines features of its
Ruby2 POS system and Commander
Site Controller. The solution will enable
average-sized convenience stores and
petroleum retailers to more efficiently
manage their POS, payment and
fueling systems and prepare their
payments infrastructure for EMV.
Cooperation with Sunoco
• VeriFone Systems, Inc. (PAY) and
Sunoco, Inc. announced that VeriFone
has been selected as the exclusive
media provider for Sunoco’s fueling
islands. VeriFone will provide Sunoco
with cutting-edge dispenser card

13. } BUSINESS & TECHNOLOGY INNOVATION REPORT
} 13
readers that have integrated video
screens and dynamic streaming
content. These payment terminals will
enhance the fueling experience for
Sunoco’s customers and provide a cost-efficient
EMV strategy for Sunoco’s
growing network of branded retailers.
Facebook
Peer to Peer Payment
• Facebook is all set to launch a new
peer-to-peer payment feature within its
Messenger app, allowing users to
quickly and easily transfer money to
each other.
• Facebook has yet to officially launch
the app but Stanford computer science
student Andrew Aude discovered that
the system is already in place on the
company's iOS app - it just needs to be
switched on.
Facebook’s stock performance
First Data
First Data Salutes
• First Data Corporation, the global
leader in payment technology and
services solutions, announced the
launch of First Data Salutes. First Data
Salutes is the company-wide military
engagement strategy aimed at helping
the veteran-owned business community
and service members and their families
transitioning to civilian careers.
• This November, in honor of Veterans
Day, First Data will offer special pricing
on Clover™ Station, InsighticsSM and
Perka™ products, which will help
veterans grow their businesses and
serve their clients. First Data will also
offer free payment processing on
Veteran’s Day for current veteran-owned
clients who are certified by the
U.S. Department of Veterans Affairs.
Posiflex
Mobile POS solution
• Posiflex Technology Inc., a world leader
in the design and manufacture of POS
touch screen terminals and peripherals,
will launch a new revolutionary mobile
POS together with its first Middle East
& North Africa (MENA) office in Dubai
to coincide with the Taiwan-based
company’s participation in GITEX
Technology Week 2014.
Posiflex’s stock performance
Macy
ShopBeacon Technology
• Macy's is expanding the use of its
shopkick ShopBeacon technology to all
its locations nationwide. The mobile
location-based technology, which is
built upon Apple's iBeacon, will be
placed in departments throughout its
retail stores and will allow users to take
advantage of more personalized
rewards and discounts.

14. } BUSINESS & TECHNOLOGY INNOVATION REPORT
} 14
Macy’s stock performance
Retail and Payment Market
US Mobile POS market
• Software companies Square and Epicor
lead the fast growing Mobile POS
Software market in North America
according to new research from IHL
Group, a global retail research and
advisory firm. Mobile POS installs are
expected to grow by 110% this year as
more retailers replace electronic cash
registers and POS terminals with mobile
devices.
US Mobile Proximity Payment Market
• By 2018, mobile proximity payments in
the USA, which include payments made
using a phone to make a physical
transaction at the point of sale, will
reach $118 billion, up from $3.5 billion
in 2014, according to eMarketer.
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