5G and foldable will be “major pillars” of Samsung Mobile’s future, said Global Executive Vice President Federico Casalegno, in the company’s first virtual Galaxy Unpacked product event Wednesday. The scripted event had components of a live Unpacked event. A live audience -- which gathered last year at Barclays Center in Brooklyn -- was replaced by an artificial intelligence creation: a curved video wall of some 200 Samsung community members, presented in Hollywood Squares-style, tuning in from their home bases. A “completely re-engineered” hinge provides more durability in the next Samsung foldable phone “to improve resilience so you can use it with greater confidence,” said Victor Delgado, who works on global mobile B2B-strategic alliances. Samsung’s first foray into foldable designs last year was spoiled by a delay when a faulty hinge design in review units damage the phone. The new hinge has a firmer “snap” and can stay open at multiple angles due to friction created by two ridge-shaped pieces that slide up and down in a cam mechanism, said the company. Samsung doubled cam and elastic components to more than 60. A “sweeper” mechanism with bristles is located under the hinge to keep away debris, it said. The new 6.7-inch Galaxy Note 20 ($999) and 6.9-inch Note20 Ultra ($1,299) are the first Galaxy devices with Ultra Wide Band technology. Samsung is working with carmakers on future technology that will allow UWB-equipped devices to function as a digital key. The company expanded its relationship with Microsoft, allowing users to access mobile apps from a Windows PC.
Sony's core Electronics Products & Solutions (EP&S) consumer tech sector “was impacted by the spread of COVID-19 earlier and more significantly than any other segment," said Chief Financial Officer Hiroki Totoki Tuesday. It swung to a 9.1 billion yen ($85.8 million) operating loss in Q1 ended June 30 from a year-earlier profit. EP&S sales declined 31% to 331.8 billion yen. It’s forecasting a 6% fiscal year sales decline. The EP&S supply chain “has almost fully recovered” from disruptions after widespread instability through late June (see 2006290041), said Totoki. Though “progress varies” by product category and region, customer demand “is beginning to recover as well,” he said. EP&S is bracing “for potential second and third waves of COVID-19,” he said. It’s “transforming the structure of this business into a more resilient” organization, he said: It plans an “overhaul” of operations and “enhancement” of e-commerce distribution channels.
Trump administration threats to act against Chinese software companies run “counter” to World Trade Organization “principles of openness, fairness, transparency and non-discrimination,” said a Chinese Foreign Affairs Ministry spokesperson Monday. “China firmly opposes that.” He urged the U.S. to “stop politicizing economic and trade issues" and practicing "discriminatory" policies "in the name of national security.” The “countless” Chinese software companies doing business in the U.S. are “feeding data directly” to China’s “national security apparatus,” Secretary of State Mike Pompeo toldFox News Sunday: President Donald Trump “will take action in the coming days with respect to a broad array of national security risks that are presented by software connected to the Chinese Communist Party.” TikTok is being eyed by the administration (see 2008030027).
Despite being locked out of the U.S. market due to government restrictions, Huawei became the leading global smartphone vendor in Q2, the first quarter in nine years that a company other than Samsung or Apple led, reported Canalys Thursday. The Chinese tech manufacturer shipped 55.8 million devices, down 5% year on year, overtaking second-place Samsung, whose 53.7 million smartphone shipments plummeted 30%. China has “emerged strongest from the coronavirus pandemic, with factories reopened, economic development continuing and tight controls on new outbreaks,” said the research firm. Analyst Ben Stanton attributed results to COVID-19, saying Huawei took “full advantage of the Chinese economic recovery to reignite its smartphone business.” Samsung has less than 1% share in China, while its core markets -- Brazil, India, the U.S. and Europe -- were hit by the coronavirus. It will be hard for Huawei to maintain its lead long term, said analyst Mo Jia, because major channel partners in key regions, such as Europe, are “increasingly wary” of carrying Huawei devices; they're taking on fewer models and bringing in new brands “to reduce risk.” Strength in China alone “will not be enough to sustain Huawei at the top.”
The State Department’s Directorate of Defense Trade Controls is considering permanently revising international traffic in arms regulations so industry employees involved in ITAR can work remotely, said Wednesday's Federal Register. DDTC said, due to industry requests, it will extend through this year temporary telework measures, which had been set to expire July 31. The agency will use that time to “fully investigate the possibility and ramifications of making this modification, or a variation thereof, a permanent revision,” and may seek comments. DDTC said the extension will “provide regulated entities with staffing flexibilities” during the pandemic and it seems "regulated entities will continue to engage in social distancing measures for the foreseeable future.”
Imax plans to have 1,400 screens in 70 markets open by August for Christopher Nolan’s blockbuster Tenet, said CEO Rich Gelfond Tuesday on a Q2 call. After three delays due to COVID-19, Warner Bros. said also Tuesday the movie will release in Canada, Europe and Asia Aug. 26 and in limited U.S. theaters Sept. 3. “The rising infection rate in the U.S. and other markets stands in stark contrast to the opening of large international markets, where we derive over 70% of our revenue,” said Gelfond: “The U.S. presents a unique challenge for industry that is accustomed to global releases.” Staggered releases by country are “the next best thing,” he said. “We should expect some temporary setbacks in some markets.” In July, some 624 Imax screens were open, 40% of the company’s global 1,500-theater network; 10% of North America’s 400 Imax theaters are open, primarily in Canada. Masks are “absolutely critical” in theaters, said Gelfond. Social distancing capacity constraints and traffic flow can be managed effectively, show times can be staggered and food prep can be visible or food can be prepackaged, he said. Gelfond predicts the market will move toward premium experiences and blockbusters. On Imax's concern about narrowing theatrical windows -- after AMC's and Universal’s announcement Tuesday giving AMC 17 days of theatrical exclusivity for releases before going to premium VOD -- Gelfond said he sees little impact. With AMC potentially sharing in streaming revenue, “we have to wait to hear what other exhibitors say, what that means,” said Gelfond. Noting Universal doesn’t have a big movie coming out in North America until 2021, “we all have to take a breath,” said the executive. Imax revenue plunged 92% year on year in Q2 to $8.9 million. Shares closed down 10.7% Wednesday at $11.22.
The pandemic is creating challenges and “opportunities for us and our industry,” supplying headsets for COVID-19's “hybrid work environment,” said Poly interim CEO Bob Hagerty on a quarterly call Tuesday. “Hybrid working trends are here to stay.” It’s estimated 30% to 40% of employees globally “will continue to work from home, with many adopting a flexible work schedule, splitting their time between the office and home.” The “net effect” is a bigger total addressable market “and a long-term growth opportunity for our company, which we are working aggressively to capitalize on,” he said. Headset demand remains “elevated,” putting stress on Poly’s supply chain, said Hagerty. “Our factory in Mexico is capable of running at full capacity, but we are having to flex our production based on component availability.” The stock closed 17.4% higher Wednesday at $21.89.
May desktop monitor imports soared from April at a rate nearly quadruple that of laptops and tablets, the connectivity tools most commonly associated with COVID-19 stay-at-home mandates, according to Census Bureau figures we accessed Sunday through the International Trade Commission’s DataWeb. May brought the highest monthly unit imports of monitors in 10 months. The one-month spike in May monitor imports came amid surging demand in videoconferencing adoption. Cisco’s Webex exceeded 500 million meeting participants in April, generating 25 billion meeting minutes, more than triple the volume in February (see 2005140001). U.S. importers sourced 4.16 million monitors from all countries in May, a 45% increase from the 2.86 million shipped here in April, said DataWeb. May laptop and tablet imports increased 11%. Mexico, South Korea, Taiwan and Vietnam also contributed to U.S. monitor supply in May, on a vastly smaller scale than China.
After delays caused by the COVID-19 outbreak and “demand volatility,” LG Display announced Wednesday the start of mass production at its Gen 8.5 OLED panel fab in Guangzhou, China. LG has been sending 900 “core engineers” by chartered flights to Guangzhou since March, it said. Plant capacity is 60,000 sheets per month, supplementing the company’s 70,000-sheet capacity at its OLED panel plant in Paju, South Korea. LGD Q2 revenue increased 12% from Q1 on spiking laptop, tablet and desktop monitor panel sales amid COVID-19 demand for telework and remote-learning connectivity tools, said the company Thursday.
The Office of Information and Regulatory Affairs began an interagency review for a proposed Commerce Department Bureau of Industry and Security rule to control “software” for operation of “automated nucleic acid assemblers and synthesizers." BIS will request comment and OIRA received the rule Monday.