Sustaining profitable growth in Mobile

Transcription

1 Sustaining profitable growth in Mobile Mario Rivas Executive Vice President Communications Businesses Philips Semiconductors Financial Analysts Day 2004

2 Agenda Update Communications businesses Nexperia Mobile System solutions Mobile multimedia Broadcast Connectivity & Security Personal media player User interface Summary Semiconductors 2

3 User Interface Displays Speakers Microphones Cameras Sensors RFID NFC Connectivity Bluetooth Wi-Fi Mobile Multimedia Application Software Broadcast FM radio DAB USB OTG WiMAX UWB Mobile TV GPS Baseband Application Software Protocol Protocol Stack Stack Software Software RF Security PA RF PMU MultiMedia Pipe System Solution Semiconductors 3

4 Sustaining market position in the mobile Connected Consumer markets GSM System Solutions top tier Digital Cordless #1 Speaker systems #1 RF identification #1 FM Radio #1 Display Modules #2 Bluetooth #3 Wireless Connectivity #3 Source: Gartner, Display Search, IDC, Semiconductors Philips Market Intelligence /2004 4

5 Balanced segment communication sales By application & region (excl. MDS) Sales by application type Sales by region 9% 7% 7% 3% 22% 17% 60% 75% Cellular Terminals Cellular Infrastr. Other Cordless Connectivity Europe Asia Pacific North America Semiconductors Source: Philips based on 2004 H1 sales 5

6 Highlights of the past year Traction of Nexperia Mobile with leading handset manufacturers Nexperia Mobile for EDGE being deployed in leading handset manufacturers, like TCL & Alcatel Mobile Phones Demonstrated industry s best performing Bluetooth / WLAN co-existence solution Semiconductors 6

7 Highlights of the past year Cooperation on NFC with our key customers Nokia, Samsung Joint cooperation on RFID solutions together with IBM and Checkpoint Great Wall of China adopts Philips MIFARE technology for contactless ticketing Gemplus: high-end SIM cards for telecom operators Semiconductors 7

8 Agenda Update Communications businesses Nexperia Mobile System solutions Mobile multimedia Broadcast Connectivity & Security Personal media player User interface Summary Semiconductors 8

9 User Interface Displays Speakers Microphones Cameras Sensors RFID NFC Connectivity Bluetooth Wi-Fi Mobile Multimedia Application Software Broadcast FM radio DAB USB OTG WiMAX UWB Mobile TV GPS Baseband Application Software Protocol Protocol Stack Stack Software Software Security RF PA PMU System Solution Semiconductors 9

10 Traction of our Nexperia Mobile system solutions Semiconductors 10

11 System solutions grow faster than total market Total System Solutions Semiconductors Source: Philips Market Intelligence August

12 A Nexperia solution for every mobile phone Smartphone High-end Feature Phone Nexperia Sy.Sol 9000 Master Application Engine running Open OS + Slave Modems (Cellular, Bluetooth, WLAN) Mid-range Feature Phone Basic Entry Phone Ultra Low-end Phone Nexperia Sy.Sol 7000 (UMTS) Nexperia Sy.Sol 6000 (GPRS/EDGE) Feature centric - TTM driven Nexperia Sy.Sol 5000 Voice centric - Cost driven GSM GPRS Semiconductors 12

13 Nexperia Mobile (system solutions) Innovation & Integration / year 1.5 years Nexperia Sy.Sol components baseband: 6 MIPS Nexperia Sy.Sol 5100/ components baseband: 60 MIPS Nexperia Sy.Sol components baseband: 200 MIPS Semiconductors 13

14 Agenda Update Communications businesses Nexperia Mobile System solutions Mobile multimedia Broadcast Connectivity & Security Personal media player User interface Summary Semiconductors 14

15 User Interface Displays Speakers Microphones Cameras Sensors RFID NFC Connectivity Bluetooth Wi-Fi Mobile Multimedia Application Software Broadcast FM radio DAB USB OTG WiMAX UWB Mobile TV GPS Baseband Application Software Protocol Protocol Stack Stack Software Software Security RF PA PMU System Solution Semiconductors 15

16 Multimedia Penetration of multimedia features in handsets 80% 70% 60% 50% 40% 30% 20% 10% 0% MP3 MMS Multimedia messaging Semiconductors Source: Gartner, IDC, Strategy Analytics, IMS research, ABI research, Philips Market Intelligence August

17 Nexperia Mobile Innovation and integration Sony Ericsson P900 To further grow we had to innovate the market and integrate multimedia and display capability into Nexperia Mobile Semiconductors 17

18 Agenda Update Communications businesses Nexperia Mobile System solutions Mobile multimedia Broadcast Connectivity & Security Personal media player User interface Summary Semiconductors 18

19 User Interface Displays Speakers Microphones Cameras Sensors RFID NFC Connectivity Bluetooth Wi-Fi Mobile Multimedia Application Software Broadcast FM radio DAB USB OTG WiMAX UWB Mobile TV GPS Baseband Application Software Protocol Protocol Stack Stack Software Software Security RF PA PMU System Solution Semiconductors 19

20 Broadcast Penetration of broadcast features in handsets 60% Applications penetration forecast % 40% 30% 20% 10% 0% TV A-GPS FM radio Semiconductors Source: IDC, Strategy Analytics, IMS research, ABI research, Philips Market Intelligence August

21 Broadcast FM radio World s smallest FM radio & complete family range of IC s: FM only, AM/FM and FM+RDS New growth trend: interactive radio Mobile TV Broadcast and Mobile Convergence project, co-operation in Berlin between Nokia, Philips, Universal Studio s and Vodafone Driving a new standard for Digital TV on mobile phone Philips is developing a thumbnail size TV receiver chip-set Semiconductors 21

22 Agenda Update Communications businesses Nexperia Mobile System solutions Mobile multimedia Broadcast Connectivity & Security Personal media player User interface Summary Semiconductors 22

23 User Interface Displays Speakers Microphones Cameras Sensors RFID NFC Connectivity Bluetooth Wi-Fi Mobile Multimedia Application Software Broadcast FM radio DAB USB OTG WiMAX UWB Mobile TV GPS Baseband Application Software Protocol Protocol Stack Stack Software Software Security RF PA PMU System Solution Semiconductors 23

24 Connectivity Penetration of connectivity features in handsets 80% 70% 60% 50% 40% 30% 20% 10% Applications penetration forecast Bluetooth continues to expand and be the dominant technology BT / WLAN combo will be the new connectivity technology in mobile NFC, for added security and ease of use, is growing fast USB-OTG shows steady growth, and is well used to link to laptop / computer 0% WLAN NFC USB Bluetooth Semiconductors Source: Gartner, IDC, Strategy Analytics, IMS research, ABI research, Philips Market Intelligence August

25 Wireless evolution Industry smallest & lowest power coexistence solution Shrink silicon CMOS 90 Physical I/O limitation System in a Package (SiP) Integrates RF and baseband in single package Eliminates RF engineering Breakthrough size; footprint of standard HVQFN IC package Eliminates up to 30 components Semiconductors 25

26 NFC-enabled mobile phone applications Payment everywhere: Mobile phone = POS Access to public transport: Mobile phone = transport card Take info from poster: Mobile phone = information vehicle Micro-payments: Mobile phone = debit card Building access: Mobile phone = key Exchange business cards Mobile phone = electronic business card Semiconductors 26

27 NFC is here today Being deployed in the handsets of all major manufacturers ISO standard available NFC chips available NFC-enabled devices later in 2004 NFC Forum moving forward Philips, Sony and Nokia Backwards compatible to contactless chip technology as used in smart cards Applications the sky is the limit Semiconductors 27

28 Agenda Update Communications businesses Nexperia Mobile System solutions Mobile multimedia Broadcast Connectivity & Security Personal media player User interface Summary Semiconductors 28

29 User Interface Displays Speakers Microphones Cameras Sensors RFID NFC Connectivity Bluetooth Wi-Fi Mobile Multimedia Application Software Broadcast FM radio DAB USB OTG WiMAX UWB Mobile TV GPS Baseband Application Software Protocol Protocol Stack Stack Software Software Security RF PA PMU System Solution Semiconductors 29

30 Personal media player Portable Audio players Nexperia Personal family of audio player ICs - single chip solution for portable flash memory and hard disk MP3 players Nexperia Personal Multimedia players Nexperia Personal family of audio and multimedia player ICs - a natural fit for audio / image storage applications Nexperia Personal Media player reference design Addressing the growing market opportunity for portable media players recorders for the high end market, includes audio / imaging / video player Semiconductors 30

31 Agenda Update Communications businesses Nexperia Mobile System solutions Mobile multimedia Broadcast Connectivity & Security User interface Summary Semiconductors 31

32 User Interface Displays Speakers Microphones Cameras Sensors RFID NFC Connectivity Bluetooth Wi-Fi Mobile Multimedia Application Software Broadcast FM radio DAB USB OTG WiMAX UWB Mobile TV GPS Baseband Application Software Protocol Protocol Stack Stack Software Software Security RF PA PMU System Solution Semiconductors 32

33 The display technology evolution Dominant resolution Dominant size Main mobile services and applications VGA 640 x 480 HVGA 320 x 480 CIF+ 352 x & above Video streaming Video streaming Fashion QVGA 320 x 240 QCIF+ 176 x x x MMS, camera MMS, camera, video clip MMS, camera, video clip 128 x x x 32 ~ SMS, RT MMS MMS, camera Mono STN 4/65 K STN 65/262 K A-Si 262 K LTPS 16 Mil LTPS 65/262 K OLED Color depth Semiconductors 33

34 The display technology evolution Dominant resolution Dominant size Main mobile services and applications VGA 640 x 480 HVGA 320 x 480 CIF+ 352 x & above Video streaming Video streaming Fashion QVGA 320 x 240 QCIF+ 176 x x x MMS, camera MMS, camera, video clip MMS, camera, video clip 128 x x x 32 ~ SMS, RT MMS MMS, camera Mono STN 4/65 K STN 65/262 K A-Si 262 K LTPS 16 Mil LTPS 65/262 K OLED Color depth Semiconductors 34

35 The future outlook of handset evolution and the value of mobile display 50% of mobile display value will come from Mid-range segment in Handset market Retail Price Pts Handset Segment & Main Application Main Display Key Specs Requirement 2004 ~ 2008 Main Display Volume & Value > US$ 350 Smart phones Personal Info Mgt a-si 65K QCIF+, LTPS 262 K QVGA, or above 110 M Pcs (3%) US$ 2.57 BIL (5%) > US$ 300 High end Video Editing, Music, MMS Still Pics, > 3Mega Pixel camera LTPS, 65K / 262K color, QVGA & VGA, or above 389 M Pcs (12%) US$ 9.5 BIL (19%) US$ 150 ~ 300 Mid Range Video & Music Playback, MMS, Still Pics, VGA to 1.X Mega Pixel camera a-si or LTPS, 65K color QCIF+, 128~132 x 160~ M Pcs (36%) US$ 24.7 BIL (48%) US$ 70 ~ 150 Basic MMS, RT, Still Pics, CIF camera CSTN, 4K to 65K color, 128 x 128, 128 x 160, M Pcs (37%) US$ 13.4 BIL (26%) US$ 50 ~ 70 Ultra Low End Voice, SMS MSTN, 96 x 32, 96 x 64, M Pcs (12%) US$ 0.97 BIL (2%) Semiconductors Source: Display Search, MDS Management Estimates 35

36 The future outlook of handset evolution and the value of mobile display 50% of mobile display value will come from Mid-range segment in Handset market Retail Price Pts Handset Segment & Main Application Main Display Key Specs Requirement 2004 ~ 2008 Main Display Volume & Value US$ 150 ~ 300 Mid Range Video & Music Playback, MMS, Still Pics, VGA to 1.X Mega Pixel camera a-si or LTPS, 65K color QCIF+, 128~132 x 160~ M Pcs (36%) US$ 24.7 BIL (48%) Semiconductors Source: Display Search, MDS Management Estimates 36

37 LifePix TM Series of algorithms that improve picture quality of mobile displays Most complete color enhancing solution on the market for optimal brightness and color Semiconductors 37

38 Agenda Update Communications businesses Nexperia Mobile System solutions Mobile multimedia Broadcast Connectivity & Security Personal media player User interface Summary Semiconductors 38

39 Summary Nexperia Mobile has gained market acceptance Enabling the right applications by offering the right features Evolving, innovating and integrating - in the areas of broadcast, connectivity, display modules and other user interface solutions Embedding the right software Choosing the right partners Gaining access to the right IP Embedding it in the system - at the right time - for the market Convergence provides new opportunities Mobile meets Home portable consumer merging with mobile applications Philips unique positioned Semiconductors 39

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