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Huawei amasses over 3m pre-orders for Mate XT ahead of iPhone launch

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Huawei has garnered more than three million pre-orders for its innovative triple-folding smartphone, the Huawei Mate XT, underscoring the company’s ability to captivate consumer interest and solidify its market position, particularly in relation to competitors like Apple Inc.

The Huawei Mate XT, described as the world’s first Z-shaped tri-fold phone, is set to be unveiled shortly after Apple’s much-anticipated launch of its iPhone 16 lineup.

Slated for release on September 20, the Mate XT has already garnered substantial pre-order interest, reflecting a strategic maneuver by Huawei to position its product in close proximity to Apple’s offerings. The timing is not coincidental; it serves as a direct challenge to Apple’s market dominance and emphasizes Huawei’s intent to reclaim its share in the premium smartphone segment.

The Mate XT is distinguished not only by its innovative design but also by its technological advancements. It features a dual-tone Swiss Red colorway, an octagonal rear camera module equipped with quad cameras, and proprietary XMAGE branding—indicative of Huawei’s self-developed imaging technology.

Navigating US sanctions

Furthermore, the device will be available in two high-capacity storage variants, showcasing Huawei’s commitment to catering to power users who demand extensive performance and capability.

Such features are critical as consumers increasingly prioritise photographic quality, processing power, and unique aesthetics in their purchasing decisions.

Moreover, the success of Huawei’s pre-order campaign can be attributed to its strategic approach in navigating the adverse impact of US sanctions. These sanctions have posed considerable challenges for the company, restricting access to critical technologies and markets.

Competitive landscape

Nevertheless, Huawei has managed to establish itself as a leader in the foldable smartphone sector, capturing a remarkable 42 per cent market share in China for foldable devices during the second quarter, according to consultancy IDC.

The accomplishment not only positions Huawei as a key competitor domestically but also demonstrates its adaptability and innovation in a restricted environment.

In contrast, as Huawei prepares to launch its cutting-edge Mate XT, Apple has responded by adjusting its pricing strategies to maintain its market share in a competitive landscape.

The introduction of the iPhone 16 lineup is expected to emphasise artificial intelligence integration, a move that reflects Apple’s ongoing efforts to enhance user experience and differentiate its products.

The simultaneous release cycles of both companies highlight a critical juncture in the smartphone market, where technological innovation and strategic positioning are paramount.

India to produce 25% of global iPhone production by 2025

  • Apple aims to manufacture more than 50m iPhones in India per year, as it aims to shift some of the production out from China.
  • Apple’s total economic contribution in India reach staggering $23.5b in last fiscal year.

The landscape of mobile manufacturing in India has undergone a remarkable transformation in recent years, particularly exemplified by the burgeoning production of Apple’s iconic iPhone.

Buoyed by the government’s ambitious ‘Make in India’ initiative and the strategic framework of the Production-Linked Incentive (PLI) scheme, the production of iPhones in the subcontinent has escalated dramatically from less than one per cent in 2017 to an impressive 10 per cent by 2023.

Global investment firm Jefferies predict that this figure might increase further to 25 per cent of Apple’s global shipments by 2025, reflecting not only a shift in production paradigms but also a concerted effort to bolster local economies and develop an indigenous manufacturing ecosystem.

Apple aims to manufacture more than 50 million iPhones in India per year, as it aims to shift some of the production out from China.

Employment opportunities

Initiated in 2014, the ‘Make in India’ programme was designed to transform India into a global manufacturing hub. By encouraging multinational corporations to set up manufacturing units in the country, the initiative aimed not just at economic growth but at providing employment opportunities and enhancing technological capabilities.

The mobile PLI scheme, introduced as part of this initiative, catalysed investment by providing financial incentives to companies, thus encouraging them to ramp up local production.

For Apple, the PLI scheme proved to be a boon, allowing the tech giant to streamline its manufacturing processes and reduce reliance on its traditional manufacturing base in China.

With the launch of the iPhone 16 Pro and Pro Max models on Monday, Apple has underscored its commitment to India as a pivotal manufacturing destination. The timely introduction of these products within the Indian market demonstrates Apple’s strategic alignment with local manufacturing efforts, showcasing India as an integral part of its global supply chain.

The initiative not only enhances the availability of the latest technology for Indian consumers but also promotes the notion of self-reliance in manufacturing.

Significant growth in exports

The figures surrounding Apple’s production and export activities in India are telling. Reports indicate a leap in iPhone exports from India, surging to an impressive $12.1 billion in the fiscal year 2023−24 from just $6.27 billion the previous year.

The substantial growth reflects Apple’s increasing reliance on India as a key manufacturing hub. In the broader context of its operations, Apple’s total economic contribution in India reached a staggering $23.5 billion in the last fiscal year (FY24), further cementing the company’s influence in the local market.

The burgeoning production capability is not merely a function of external factors but also a reflection of the intrinsic potential within India’s manufacturing sector. While the electronics export trend is on an upward trajectory, it still signifies a room for enhancement in value addition.

The current statistics indicate that electronics imports are more than double the exports, underscoring a significant opportunity for in-sourcing and further enhancing local manufacturing capabilities.

Advantage India

The Indian government is cognizant of the need to promote manufacturing across various sectors. The allocation of Rs2 trillion across 14 sectors under the PLI programme, alongside an additional Rs70,000 crore for boosting the semiconductor and display manufacturing ecosystem, illustrates an expansive vision for the future of manufacturing in India.

The comprehensive framework aims to reduce import dependency while fostering innovation and technological advancement.

Experts within the industry propose that Apple’s anticipated success with its new iPhone 16 series could potentially intensify this growth momentum.

As the company shifts its focus towards aggressive marketing strategies tailored to Indian consumers, it is expected to see a 30 per cent increase in sales in comparison to the previous iPhone 15 generation during the launch quarter, according to insights shared by Prabhu Ram from CyberMedia Research.

The trend points not only to the aspirational appeal of Apple products but also to a wider recognition among Indian consumers of the advantages associated with locally produced items.

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Ather Energy files DHRP with SEBI for IPO launch

  • Promoters and shareholders to offload stakes but not Hero MotoCorp, largest external shareholder.
  • Co-founders Tarun Sanjay Mehta and Swapnil Babanlal Jain to offer 10 lakh shares.

Electric two-wheeler manufacturer Ather Energy has submitted its draft red herring prospectus (DRHP) to the Securities Exchange Board of India (SEBI) as it seeks to launch an initial public offering (IPO).

This positions Ather Energy as the second electric two-wheeler manufacturer to debut on the stock exchange, following the successful public offering of Ola Electric last month.

Ather’s strategic move to raise funds—up to Rs3,100 crore (approximately $370 million)—through a fresh issue of equity shares and an offer for sale (OFS) of up to 2.2 crore shares manifests the increasing investor interest in the burgeoning electric vehicle (EV) market in India.

Financial landscape

The DRHP reveals that notable stakeholders will partake in the OFS, with GIC Ventures, through its subsidiary Caladium Investment, divesting 47.8 per cent of the total offer.

Other investors, including Tiger Global and 3 States Ventures, will also contribute to the OFS with offloading percentages of 18.1 per cent and 2.18 per cent, respectively.

Hero MotoCorp is the largest external shareholder with 37.2 per cent followed by GIC (Caladium Investment) and NIIF which hold 15.04 per cent and 10.29 per cent respectively.

However, Hero MotoCorp won’t participate in the OFS.

Furthermore, co-founders Tarun Mehta and Swapnil Jain will individually offer 10 lakh shares, underscoring the leadership’s confidence in the firm and its growth trajectory.

The fresh issue and the OFS will be priced at a face value of Rs1, while the final price band will be determined in consultation with appointed book-running lead managers, including Axis Capital, HSBC Securities, Nomura Financial, and JM Financial.

Ather Energy’s financial landscape is noteworthy, particularly its recent ascent to unicorn status following a robust  $71 million investment from the National Investment and Infrastructure Fund (NIIF).

Pivotal moment

With total funding exceeding $500 million, Ather has demonstrated a substantial capacity to attract investment, essential for its expansion and innovation in the competitive electric two-wheeler market.

The firm’s plan to utilise proceeds from the IPO for capital expenditure, debt repayment, research and development, and marketing expenditures further illustrates its commitment to scaling operations and enhancing product offerings.

However, the current financial health of Ather reveals a mixed bag of results. The recent disclosure of revenue for first quarter of  FY25 indicates Rs339 crore, accompanied by a net loss of Rs183 crore, reflecting the challenges that come with rapid growth and market expansion.

In FY24, while the revenue showed a modest decline at Rs1,754 crore, Ather’s customer base experienced a commendable growth of 34 per cent, reaching 114,000 customers, building on a 270 per cent increase in the previous fiscal year.

The firm’s reliance on raw material imports from China, which surged to 28 per cent in FY24 from 10 per cent in FY23, raises pertinent questions regarding supply chain stability in an increasingly geopolitically sensitive environment.

In comparison to its main competitor, Ola Electric, which reported Rs1,644 crore in revenue for Q1 FY25 along with a reduced net loss of 17 per cent, Ather Energy holds a 9 per cent market share within the rapidly evolving two-wheeler EV segment.

The competitive landscape is characterised by rapid escalations in market share and innovations, with Ola currently commanding a 49 per cent market share.

The upcoming IPO of Ather Energy, reminiscent of Ola Electric’s successful Rs6,145 crore IPO, signifies a pivotal moment for the electric two-wheeler industry in India, underscoring the transformation towards sustainable mobility.

Researchers develop 2D metamaterial to enhance satellite communications

  • Innovative design facilitates sophisticated manipulation of electromagnetic waves, specifically converting linearly-polarised signals into circular polarisation.
  • Newly developed surface operates across a broad frequency range—spanning 12 GHz to 40 GHz—integral to satellite applications and remote sensing.
  • It could help satellites provide better signals for phones, and more stable connections for data transmission and improve satellites’ ability to scan the surface of the earth to understand the effects of climate change and track wildlife migration.

Advancements in engineering, spearheaded by researchers at the University of Glasgow, have led to the development of an ultrathin two-dimensional (2D) surface that utilises the unique properties of metamaterials to significantly enhance satellite communication.

Metamaterials are artificially engineered structures designed to exhibit properties not found in natural materials. The team’s metamaterial, measuring a mere 0.64mm in thickness, is crafted from intricately patterned copper cells and is integrated with commercially available circuit boards typically used in high-frequency communications.

The innovative design facilitates sophisticated manipulation of electromagnetic waves, specifically converting linearly-polarised signals into circular polarisation.

Circular polarisation offers a multitude of advantages over traditional linear polarisation. Current satellite communication infrastructures primarily rely on linear polarisation, which can result in inefficiencies due to misalignment between transmitting and receiving antennas.

Such misalignments often lead to signal degradation, particularly in adverse weather conditions where atmospheric effects, such as rain fading and ionospheric interference, may further distort signals. By contrast, circular polarisation is inherently more robust, exhibiting enhanced resistance to these environmental factors.

Doubles channel capacity

The characteristic not only ensures more reliable communication between satellites and ground stations but also reduces the need for precise antenna alignment in mobile applications.

Moreover, the metamaterial’s capacity to use both right-hand and left-hand circular polarisation effectively doubles channel capacity. The flexibility not only simplifies the designs of antennas for small satellites but also enhances satellite tracking and fortifies communication links in challenging environments.

As a result, the  technology holds significant promise for modern satellite systems, paving the way for higher data transmission capabilities and improved remote sensing functionalities.

Experimental validation of the metamaterial’s effectiveness demonstrated a high degree of correlation between simulated and empirical results, particularly regarding its ability to convert linear to circular polarisation.

Testing showed that the metamaterial could maintain impressive performance even at angles of up to 45 degrees—critical in the space sector, where alignment between satellites and communication systems can be unpredictable.

Better signals for phones

Professor Qammer H. Abbasi, the lead author of the study from the James Watt School of Engineering, emphasised that previous metamaterial innovations have typically been constrained to narrow bandwidths, limiting their practical applications.

In contrast, the newly developed surface operates across a broad frequency range—spanning 12 GHz to 40 GHz—integral to satellite applications and remote sensing.

 “This kind of 2D metamaterial surface, capable of the complex task of linear to circular polarisation, can enable antennae to communicate with each other more effectively in challenging conditions. It could help satellites provide better signals for phones, and more stable connections for data transmission. It could also improve satellites’ ability to scan the surface of the Earth, improving our understanding of the effects of climate change or our ability to track wildlife migration.”

Dr Humayun Zubair Khan, a visiting postdoctoral student at University of Glasgow’s James Watt School of Engineering during the development of the metamterial surface and now at the National University of Sciences and Technology in Pakistan and the first author on the paper, said: “This is an exciting development, which outperforms previously-developed technologies by a significant margin.”

Being able to manipulate and convert electromagnetic waves with a single piece of equipment, he said opens up a range of new potential applications across the communications sector, but particularly in the space industry, where lightweight, compact materials are prized to help keep launch payloads down.

 “One of the most exciting aspects of the metasurface we’ve developed is that it can be easily mass-produced using conventional printed circuit board manufacturing techniques. That means that it can be made easily and affordably, which could help it become widely-adopted in the years to come as a valuable piece of onboard equipment for satellites,” Professor Muhammad Imran, who leads the University of Glasgow’s Communications, Sensing and Imaging hub, and a co-author of the paper, said.

Indian IT industry to emerge stronger from Gen AI-induced disruptions

  • Emergence of Gen AI is expected to give rise to new service lines, including AI-driven customer service, fraud detection, predictive maintenance, and knowledge processing.
  • Rather than posing a threat, GenAII represents a significant opportunity to innovate, grow, and continue its legacy of excellence in service delivery.

The advent of generative artificial intelligence (Gen AI) has sparked a robust debate regarding its implications for various industries, particularly the Indian IT sector.

Contrary to the prevailing narrative that portrays Gen AI as a potential threat, a recent report by Nuvama Wealth Management underscores the transformative opportunities it presents for this sector.

While acknowledging the initial disruptions that AI technology may cause in business operations and billing models, the report emphasises that the long-term advantages significantly outweigh these risks.

The report posits that the Indian IT industry is poised to emerge stronger from the Gen AI-induced disruptions.

Modernisation of core banking systems

As enterprises increasingly adopt AI technologies, there will be a growing demand for services related to the modernisation of legacy systems and the preparation of data for AI integration.

The shift opens new revenue streams for Indian IT firms, particularly in the realm of upgrading outdated systems. A notable example highlighted in the report is the modernisation of core banking systems (CBS).

Many financial institutions continue to rely on legacy mainframe systems and programming languages such as Cobol, which are increasingly becoming obsolete.

Gen AI facilitates automated code modernisation, thus creating substantial demand for Indian IT services to upgrade these critical systems.

Moreover, the report points out that many non-Indian firms, particularly in Europe, lack the scale and resources to hire specialists proficient in Cobol. Consequently, they have ceded this lucrative opportunity to Indian IT service providers, who are well-equipped to address these challenges.

Potential is undeniable

The emergence of Gen AI is also expected to give rise to new service lines, including AI-driven customer service, fraud detection, predictive maintenance, and knowledge processing.

These advanced solutions will enable Indian IT firms to offer higher-value services to their clients, thereby enhancing revenue and profit margins.

Historically, Indian IT companies have demonstrated a remarkable ability to adapt and reposition themselves to meet evolving customer needs. This adaptability has been a cornerstone of their sustained success over several decades, and there is little indication that this trend will change in the face of Gen AI.

The report likens Gen AI to “a hammer looking for a nail,” suggesting that while the technology’s applications are still being explored, its potential is undeniable.

Looking ahead, Nuvama Wealth Management forecasts a promising outlook for the Indian IT sector in the upcoming fiscal year, driven by optimistic projections for the Banking, Financial Services, and Insurance (BFSI) sector, increased technology spending, and the ramp-up of large deals.

Roblox eyes 10% of global gaming content revenue

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  • Announced new partnership with Shopify to let users sell physical products through digital Roblox experiences.

Roblox CEO and Co-Founder Dave Baszucki announced a bold ambition for the company to capture an unprecedented 10 per cent of the global video-game content revenue.

The declaration comes at a pivotal moment, as the gaming industry continues to thrive, boasting over 3.4 billion gamers and generating more than $180 billion annually.

At the Roblox developer conference, Baszucki articulated the company’s strategy to collaborate with technology titans such as Apple Inc., Alphabet Inc., and Tencent Holdings Ltd.

Such partnerships are crucial for expanding Roblox’s reach and integrating its platform into the wider gaming ecosystem.

In addition, Roblox’s collaboration with Shopify presents a significant opportunity, allowing users to sell physical products through immersive digital experiences within the Roblox universe. The innovation not only enriches the user experience but also diversifies revenue streams for creators.

Distributes over $800m

Roblox has also announced plans to revolutionise its financial model, transitioning to a system where paid-access experiences on desktop versions will be priced in real currency rather than solely in Robux, its virtual currency.

The shift promises to empower creators by increasing their share of revenue, fostering a more vibrant and sustainable community of developers.

Last year alone, Roblox demonstrated its commitment to its creators by distributing over $800 million to its developer community, a testament to its supportive ecosystem.

The platform’s accessibility across consoles, smartphones, tablets, and PCs is a key factor in its success, with 79.5 million daily active users, of which a significant 58 per cent are aged 13 and older.

The demographic highlights the growing appeal of the platform among teenagers and young adults, suggesting an expanding market for Roblox’s diverse gaming experiences.

Baszucki’s reflection on the founding principles of Roblox—connecting humans through play—remains a driving force as the company seeks to engage a broader audience.

As Roblox sets its sights on achieving one billion daily active users, Baszucki’s vision stands out as both ambitious and attainable.

With the company’s reported $2.8 billion in sales last year, coupled with increasing developer engagement and innovative partnerships, Roblox is strategically positioned to capture a significant share of the ever-evolving gaming landscape.