LG, which outlined its July 31 exit from smartphones this week (see 2104050038), said Thursday that consumers still using its premium phones will receive up to three versions of Android operating system upgrades. The upgrade commitment applies to phones released in 2019 and later: the G, V, Velvet and Wing series. Select 2020 models -- Stylo and K series -- will receive two upgrades, said the company. Upgrades will depend on Google’s distribution schedule, carrier requirements, device performance and compatibility, it said. LG will continue to manufacture phones through Q2 to meet contractual obligations to carriers and partners, it said. Customers can still buy LG phones currently in inventory, it said, with service support and security software updates to be provided “for a period of time for certain devices.”
Discovery+ launched on Comcast’s Xfinity Flex streaming player and will roll out to its X1 app in coming weeks, the companies said Thursday. Discovery+ is $4.99 per month with ads, $6.99 for the commercial-free version. Content includes episodes from HGTV, Food Network, TLC, ID, Own, Travel Channel, Discovery Channel and Animal Planet. The service also offers nonfiction content from A&E, The History Channel and Lifetime and natural history programming from the BBC.
Federal funding and public private partnerships and subsidies are keys to building long-term U.S. competitiveness in the semiconductor industry, commented PC market share leaders HP and Dell Technologies, plus contract manufacturer Foxconn, in postings Tuesday in docket BIS-2021-0011. Comments were due Monday in the Commerce Department’s Bureau of Industry and Security inquiry to help shape recommendations to the White House on President Joe Biden’s Feb. 24 executive order to relieve semiconductor supply chain bottlenecks (see 2103110054). Public and private sector investments in “people and education” are a good “first step” in developing “a ready and trained workforce that can sustain a U.S. semiconductor ecosystem,” said Foxconn in a rare public policy statement. “Decades of outsourcing has taken its toll on a semiconductor ready workforce,” said the self-described world’s largest electronics manufacturer. SIA also commented (see 2104060064)
Semiconductors are more “strategically important to the global economy than at any time in history, and this is driving new waves of silicon consumption,” Applied Materials CEO Gary Dickerson told his company's virtual investor meeting Tuesday. His prepared remarks noted factors driving unprecedented semiconductor demand without mentioning the resulting industry chip shortages. “As an industry, we’re in a privileged position where our combined technologies can drive a huge positive impact on a global scale,” said Dickerson. “As the world navigates COVID-19 and prepares for a post-pandemic era, the digital transformation of the economy is accelerating.” Digital transformation is “built upon semiconductor innovation, and has significant implications for the electronics ecosystem,” he said. “As everything gets smarter, from our phones to our cars to our homes, we’re seeing increasing silicon content.” The transition to 5G “is driving a richer mix of high-end phones that feature more cameras and sensors, combined with specialized AI computing,” he said. “All this adds up to more leading-edge and specialty silicon content per handset.”
February semiconductor revenue increased 14.7% year on year, reaching $36.9 billion globally, but was down 1% from January sales of $40 billion, reported the Semiconductor Industry Association Monday. “Global semiconductor sales during the first two months of the year have outpaced sales from early in 2020, when the pandemic began to spread in parts of the world,” said SIA CEO John Neuffer. “Sales into the China market saw the largest year-to-year growth, largely because sales there were down substantially early last year.”
Micron Technology’s DRAM business is in a “severe shortage,” but its NAND market “is showing signs of stabilization,” said CEO Sanjay Mehrotra on a Wednesday call for fiscal Q2, ended March 4. Smartphone unit sales “are expected to show robust growth,” said Mehrotra. Micron expects “to benefit from higher content in 5G phones, which are forecast to double in calendar 2021 to more than 500 million units,” he said. Fiscal Q2 revenue in Micron’s mobile business unit was $1.8 billion, 44% higher than in the year-earlier quarter, said Chief Financial Officer Dave Zinsner. “Mobile demand remains strong as 5G momentum increases and the mobile market continues to recover from the impact of the pandemic.” Total Q2 revenue of $6.24 billion gained 30%. The PC business benefits "from the remote work and learning trend that drove healthy notebook and Chromebook demand” in fiscal Q2, said Mehrotra. COVID-19 drove “changes in our economy that we believe will not only benefit us this year, but also serve to accelerate the digital transformation of the economy and drive new opportunities for Micron,” he said. “Recovery from the pandemic and pent-up demand are expected to drive strong demand growth in markets such as enterprise, cloud, desktop PCs, mobile, auto and industrial.”
Conn’s same-store sales improved quarter to quarter in fiscal 2021 ended Jan. 31, despite “industry-wide disruptions in the global supply chain,” said CEO Norm Miller on a Q4 call Wednesday. “We are well positioned for same-store sales growth going forward, as our products and our financing options resonate with consumers.” Same-store sales, “positive” since January, rose more than 3% in the first two months of fiscal Q1 ending April 30, said Miller. “Recent retail trends are especially encouraging, as we have offset the significant challenges” that February’s winter storm “had in many of our markets,” he said. Conn’s lost more than 170 “store selling days” to the storm and its aftermath, compared with 100 days lost to Hurricane Harvey, he said. E-commerce sales increased to more than $26 million in fiscal 2021 from $3 million two years ago, he said. “We believe we can double e-commerce sales again this year to over $50 million, as we remain focused on serving our customers where and how they choose to shop.” The stock soared 24.3% Wednesday, closing at $19.45.
Skullcandy introduced $24.99 Bluetooth 5.0 true wireless earbuds Tuesday. The Dimes have a mic in each bud, allowing users to use either bud alone without losing the ability to take calls, said the company. Battery life is given as 12 hours: 3.5 hours in use and 8.5 hours in the micro-USB battery case. Users can take calls, change track and volume and activate Google Assistant and Siri hands-free, said the company. Dimes have automatic turn-on with the last device used. If one is lost or broken, users can buy buds and cases separately from Skullcandy.
Sleep sensing is a main feature of Google’s latest Nest Hub, launched Tuesday. The contactless sleep-sensing feature, which uses a miniature radar sensor from Soli, detects movement and gestures “at the micrometer level,” such as breathing, to give users information about sleep duration, routines and quality, Google said. The unit doesn't have a camera, and faces aren’t detected, it said. The device can offer personalized suggestions based on the information, through Google’s Sleep Sensing app, “free until next year,” when it may become part of a Fitbit subscription, Google said. Users are able to watch YouTube, Netflix and Disney+ and view Google Photos on the 7-inch screen. The $99 device, with Google Assistant built in, offers hands-free calling via a Google Duo account; users can control it using gestures, said the company. The second-generation Hub has a single speaker with a 1.7-inch driver vs. the dual 0.7-inch tweeters and 3-inch woofer in the $229 Hub Max, which adds a built-in camera for video calls and home monitoring.
Perceived high prices are a top barrier to smart home adoption, said Parks Associates Tuesday, leading providers and manufacturers to launch lower priced products and discontinue some premium products. It cited Apple’s HomePod mini and a new, lower priced Google Nest thermostat with a lean feature set. Some 44% of consumers who don’t own or plan to buy a smart home device gave price as the top reason, followed by perceived lack of benefits and data and privacy concerns, said Parks. “Companies are betting that getting one device in the home, even as a loss leader, will convince consumers of the value of smart home devices and inspire future purchases,” said analyst Patrice Samuels.