Expository Essay about the use of cellphones in the classroom

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14 TWICE 03/08/2010

NPD Market Magniiier: Top Plasma TV Markeis

Plasma TV unit share of 40-inch and larger flat-panel TVs for the three

months ending January 2010

iSuppli: Cellphones Challenge Lew-End Digital Stiil Cameras

1 . Detroit

2 . Portland, Ore.

3 . Nashville, Tenn.

4 . Seattle

5 . Indianapolis

T o t a l U . $ .

41.1

36.7

36.5

36.4

36.2

28.8

I\IPD market-level information enables sub- scribers to identify the strongest markets and opportunities for innproving business. Data is collected from individual retail loca- tions of a panel of 70 industry-leading retail- ers for consumer eiectronics, information technology, mobile audio and imaging. The aggregation of individual stores provides significant coverage for making confident and insightful decisions. For more informa- tion, contact The NPD Group at (866) 444- 1411 or www.npd.com/lps/corp_store_leveL

Source: The NPD Group ©TWICE 2010

BY JOSEPH PALENCHAR EL S E G U N D O , CALIF. — Camera- equipped cellphones might soon begin to cannibalize sales of low-end digital still cameras as they add more mega- pixels and as more camera phones come with flash capabilities, iSuppli analyst Pam Tufegdzic said.

Cannibalization "is likely to occur first in Asia and Europe as consumers in these regions seem to be more comfort- able with taking pictures using camera phones," she said. But as the number of megapixels in camera phones rises, the quality of some camera phones "will rival low-end point-and-shoot cameras, pre- senting a competitive threat," she said.

Although more camera phone megapix- els deliver smoother, less-pixelated images, she continued, camera phone makers are focusing on other performance enhance- ments to make camera phones a capable competitor to low-end cameras.

Camera phone makers will focus on adding optical zoom, auto focus, im- proved flashes and more sophisticat- ed image-processing electronics, she

Mobile Handset Vs. Digital Still Camera Weighted Average Of Image Senser Reselutlen

In megapixels, 2007-2013 1 6 -

14 —

12 —

Digital Still Camera

Handset

2007

Source: iSuppli

2008 2009

(f)=forecast

' 2010(f) ' 2011(f) 2012(f) ' 2013(f) '

©TWICE 2010

explained. Features such as image stabi- lization, automatic judgment and multi- ple image capture will also migrate from cameras to camera phones during the next few years, she added.

Camera makers are responding to the competitive threat by increasing resolu- tion in smaller form factors, but Tufeg- dzic questioned whether that would be

iSuppli Says LCD Panel Suppliers Are Struggling EL SEGUNDO, CALIF. — Despite the prodigious growth of the global large- sized-LCD market in recent years, pan- el suppliers are struggling to maintain profitability, forcing them to cut mate- rials and component costs, according to iSuppli.

From thefourth quarter of 2008through the second quarter of 2009, suppliers took losses on the most popular vari- eties of large-sized LCD panels used in televisions, notebook PCs and moni- tors. Losses were particularly acute dur- ing the dismal first quarter of 2009, when suppliers took an average loss of 31 per- cent on 32-inch high-definition television panels, a 29 percent shortfall on 15.4- inch notebook panels and a 28 percent loss on 19-inch monitor panels.

"Suppliers of large-sized LCD pan- els are facing profitability challenges due to the cyclical and volatile nature of the consumer markets they are serving," said Sweta Dash, LCD research senior directorfor iSuppli.

"As applications have shifted from a corporate to a consumer focus, condi- tions in the large-sized LCD market in- creasingly are dictated by seasonal fac- tors, with slow demand in the first half of the year, followed by strong sales dur-

ing the last six months of the year. Profit- ability also is oscillating roughly accord- ing to these seasonal trends, compelling panel suppliers to seek ways to reduce costs."

One major focus of these efforts is ma- terial and component costs in panels and in panel modules, iSuppli said.

Material and component expenses are accounting for an increasing por- tion of total panel costs, especially for LED-backlit panels. Generally speak- ing, panel material and module compo- nents can account for 75 percent or more of total panel costs, depending on vari- ous factors.

Because of this, panel suppliers must concentrate on these areas to keep ex- penses under control. Unfortunately, many panel components, such as glass, color filters and LED chips, have been facing somewhattight supply in recent quarters, limiting opportunities to re- duce costs, the research firm noted.

To counter such availability and pric- ing challenges, panel makers are bring- ing the production of some of these devices — most notably LED chips — in- house, because reductions in the back- light cost provide more opportunity to lower cost and improve profitability.

Generally speaking, LED-based pan- els generate higher profitability, prompt- ing suppliers to introduce new models and to reduce LED backlight costs. How- ever, during periods of oversupply, LCD panel suppliers also can lose money on sales of LED backlit panels.

LED supply tightness and fragmenta- tion of the entire LED supply chain has also made it difflcultfor panel suppliers to control costs. In response, top panel suppliers are developing their own in- ternal sources for LED supply that can allow them to slash costs, control sup- ply and improve profitability. In addition, suppliers also are developing new back- light designs to cut the number of LEDs that are used while keeping performance at the same or higher level — steps that can reduce costs as well as lower the thickness of the television modules.

At the same time, television brands and television contract manufactur- ers also are striving to bring down the costs of LED-based panels by buying only the cell without the backlight and developing their own backlight. Brand- ed television manufacturers, for in- stance, are engaging in partnerships with contract manufacturers or even panel suppliers to develop their own

enough "to fend off the incoming attack from handsets."

T h e average resolution for camera phone C M O S sensors will rise to 5.7 megapixels in 2013, up 171.4 percent from 2.1 megapixels in 2009, iSuppli not- ed. In contrast, camera megapixels will rise to 13.9 in 2013, up only 46.3 percent from 9.5 megapixels in 2009. •

backlight and module assembly facili- ties, iSuppli said.

For their part, some panel suppli- ers are focusing on selling cells, while others are developing more complete in-house solutions. Although this has created some tightness in the market because module production lags behind cell production, it also is makingthe sup- ply chain more flexible and capable of re- acting faster to changes in the market.

Overall, fixed or capital costs account for only 15 percent to 25 percent of the total panel cost, depending on the pan- el size, application market and fab de- preciation rates.

In 2010, the top three notebook dis- play suppliers — Samsung, LG Dis- plays and AUO — will attain a cost advantage over their competitors be- cause their fabs serving this market will be fully depreciated, with the cost to construct the facilities and obtain equipment fully recouped.

This will make it difficult for other note- book panel suppliers, such as CMO and some Chinese firms, to compete in the market. In the same way, LG Display's 7.5-generation and Samsung LCD's sev- enth-generation fabs, which are mostly producing TV panels, will be fully depre- ciated this year, allowing both suppli- ers ableto lower pricing, expand market share and attain strong profitability. Q

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