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• Small green shoots seen in global tablet market in 1Q24
  in Mobility
  By Sam Varghese

  Global tablet shipments grew by 1% year-on-year in the first three months of 2024, the technology analyst firm Canalys says, with another tech analyst company, IDC, reporting a rise of 0.5%.

  Canalys said total shipments from January to March came to 33.7 million units, while IDC reported shipments of 30.8 million units.

  IDC noted that the last time the tablet market had recorded growth was in the second quarter of 2021, while Canalys said the latest green shoots were visible after four consecutive quarters of year-on-year declines.

  [The comments by analysts from the two firms were made well in advance of Apple's launch of new iPad Pro and iPad Air models on Tuesday.]

  {loadposition sam08}“The tablet industry has had a positive start to 2024, and the rest of the year should bring further relief after a difficult 2023,” said Canalys research manager Himani Mukka.

  "Despite the extended period of cautious consumer spending on tablets, vendors have remained ambitious.

  

  "New market entrants have kept investing in the category while the traditional heavyweights are delivering on innovation to excite customers and drive new use cases.”

  Apple, whose iPad is among the most sought after tablets, reported a downward trend for the three months ending on 30 March, with iPad sales bringing in US$5.5 billion (A$8.36 billion) for this period, a sizeable fall from the US$6.6 billion for the corresponding period a year earlier.

  IDC listed the following highlights for the top five tablet firms:

  • "Apple faced a bit of a lull last year due to the poor economy and the absence of new models and declined 8.5% year over year. The company has focused on clearing out inventory of older models prior to the expected launch of new models in 2Q24 [This launch took place on 7 May]. Apple managed to hold the number 1 position with 9.9 million units shipped in 1Q24.
  • "Samsung ranked second with shipments of 6.7 million units in 1Q24, which was a year-over-year decline of 5.8%. Promotions from competing brands in Europe and Asia/Pacific and the lack of new products held back Samsung's growth. However, the company is focused on improving its user experience by including AI capabilities in its latest products and focusing on premium products to capitalize on this year's replacement cycle.
  • "Huawei retained the third position this quarter with year-on-year growth of 43.6% and shipments of 2.9 million units. It probably benefitted from the resurgence of its smartphone business and managed to grow its market share by 2.8 basis points compared to 1Q23.
  • "Lenovo ranked fourth this quarter with year-on-year growth of 13.2%. Like many other vendors, Lenovo has been able to grow its detachable portfolio since the pandemic, with its Tab P series models driving shipments. However, slate tablets still represent nearly 80% of Lenovo's shipments.
  • "Xiaomi retained its spot in the top five with impressive growth of 92.6% year over year and shipments reaching 1.8 million units. Outside China, which is its largest market, Xiaomi grew by triple digits across almost all regions where it ships."

  Anuroopa Nataraj, senior research analyst with IDC's Mobility and Consumer Device Trackers, said: "The tablet market started showing signs of recovery in the first quarter. The real gains will come from the next refresh cycle, followed by growth within commercial segments as more tablets are used in the education sector and the gig economy.

  

  "However, these factors won't suffice as the attrition driven by competition from PCs and smartphones will contribute to a lacklustre outlook for the tablet market. That said, there is potential upside driven by AI capabilities similar to what's expected in other device types."

  Mukka added: “Of particular note is Apple’s anticipated move to incorporate OLED screens in the iPad Pros, signalling a significant landmark in display technology preference across the top vendors’ tablet portfolios. {Apple released models with OLEN screens on Tuesday].

  "Additionally, 2024 is set to bring about a rise in new tablet form factors and functionality, with manufacturers focusing on both foldable designs and eye-wear-free 3D content viewing.

  "The tablet market is on track to stabilise above pre-pandemic levels, supported by a gradual recovery trajectory. The realisation of postponed commercial and government deployments from last year and the rapid expansion of 5G infrastructure in untapped markets will bolster refresh demand for tablets.”
• iPhone 15 Pro Max tops sales charts in 1Q24
  in Mobility
  By Sam Varghese

  Apple and Samsung have dominated the top 10 smartphone list during the first quarter of 2024, with the iPhone 15 Pro Max coming out on top, accounting for 4.4% of total sales for the three months.

  The technology analyst firm Counterpoint Research gave no overall sales figures for the quarter but ranked iPhone models from first to fourth, with Samsung only getting a look in at the 5th spot, with the S24 Ultra grabbing 1.9% of sales, according to thefirm's Global Monthly Handset Model Sales Tracker.

  Last month, another technology analyst firm, IDC, said first quarter smartphone shipments rose to 289.4 million units. Samsung took the overall top spot among vendors.

  Two other notable features of the top 10 were that all were 5G smartphones and there was a trend towards premium models with seven of the 10 costing US$600 (A$903.95) and above.

  {loadposition sam08}Apple took five of the top 10 spots, with three iPhone 15 variants taking the top three positions, while the iPhone 14 came fourth and the iPhone 15 Plus took the eight place.

  

  Counterpoint said the models that sold well in the first quarter of 2023 were similar to this year, with three iPhone 14 models and the iPhone 13 taking the top four spots.

  The company claimed consumers were holding onto their smartphones for longer periods because upgrades were offering limited differentiation in features.

  This, it claimed, led consumers to opt for high-end smartphones to ensure their devices remained technologically relevant for a longer period.

  "Going forward, we expect the top 10 best-selling smartphones to capture a larger share of total smartphone sales as OEMs are focusing on leaner portfolios with premium features, including GenAI," Counterpoint added.
• ASPI caught spreading misinformation about open-source software
  in Open Sauce
  By Sam Varghese

  It's not often that you find someone writing about open source software and not bothering to make mention of the licences being used. But that's precisely what Albert Zhang of the Australian Strategic Policy Institute, a lobby group for big tech and foreign agencies, has done.

  In an article titled China’s use of foreign open-source software, and how to counter it, Zhang shows that he has little knowledge about this genre of software, how it is used around the world and how its use is governed by licences and not the whims and fancies of any government.

  His takeoff point is an article in the Rupert Murdoch-owned Wall Street Journal which provided details about a Beijing directive to government agencies asking them to replace proprietary foreign software by 2027.

  As with many other articles which are published by ASPI, this is also an anti-China screed masquerading as a discussion about the use of open-source software.

  {loadposition sam08}Zhang writes that China began pursuing the use of open source software in the 1990s, adding that software can be a risk if vulnerabilities are not patched. This is a fairly obvious thing, something like stating the sun rises in the east.

  In this context, Zhang offers the example of Eternal Blue, an exploit developed by the NSA, and used in numerous attacks over the years.

  "That’s why Beijing has long been suspicious of foreign operating systems such as Windows and macOS, worrying that foreign governments could be hoarding vulnerabilities that they could exploit to cripple the Chinese government’s computer networks," he writes.

  Zhang appears to be blissfully unaware of the fact that back in May 2017 Microsoft released a version of Windows 10 for use in China after the source code had been vetted by Chinese authorities. It was named Windows 10 China Government Edition.

  But this level of ignorance is not surprising when ASPI staff write about software. Elise Thomas, then an ASPI researcher, made similar uninformed claims about Huawei back in June 2019.

  Given the amount of money that Microsoft makes in China, it is highly unlikely that the company would do anything to jeopardise its business there. And it is notable that no matter whether the Democrats or Republicans are in power in the US, Microsoft has enough lobbying power in Washington to keep selling to China.

  The best example of the clout Microsoft has is its continued sales of Windows to Huawei, despite the American bid to isolate the Chinese company. When Donald Trump was in the White House, Google was unable to obtain a waiver on software exports so it could sell its Android mobile operating system to Huawei. But Microsoft obtained a waiver and continued to sell Windows to Huawei.

  Zhang also seems unaware of the close relationship that Apple chief executive Tim Cook has with China. Had he been aware, he would not have made a statement about China fearing bugs in macOS.

  Zhang refers to Android as open-source software when only part of the system belongs to this genre. "For example, the first version of Huawei’s mobile operating system, HarmonyOS, had no discernible differences from Google’s Android," he writes, clearly ignorant of the fact that Android contains several Google apps that are proprietary and not available unless one pays a licence fee. Gmail, Maps, YouTube, Photos, Drive and Wallet are some of the closed-source apps that are part of Android.

  Another false statement by Zhang is this: "And OpenKylin is considered to be a remix of Ubuntu, an open-source version of the Linux operating system." Linux is not an operating system, it is only the kernel. There are a host of other packages which go in to make a Linux distribution. Ubuntu is one distribution, but it is no more or less open source than any other.

  Again Zhang writes: "Linux has been one of the most secure operating systems, thanks to a global open-source community of engineers hunting for vulnerabilities and patching software bugs." This is high-grade BS. If one is talking of software that is secure, then OpenBSD, NetBSD and FreeBSD rate much higher than Linux. But then has Zhang even heard of these operating systems? One doubts it.

  Zhang wants democracies to restrict developers from contributing to projects on the Chinese platform Gitee (something like GitHub). How does one do this? Zhang clearly does not know, else he would have told us.

  He writes: "This will prevent developers from supplying the next generation of critical software and AI technologies and unwittingly helping Beijing gain a military advantage. At a minimum, democratic governments should raise public awareness of the involvement of China and other authoritarian regimes in emerging open-source software platforms.

  "For global open-source communities, there should be an international code of conduct that promotes transparency about project funding sources and contributors, supports ethical decisions and addresses concerns about open-source technologies being used for harmful purposes."

  This is something of a joke; the licences that govern the use of different free or open source software are non-restrictive. Had Osama bin Laden used Linux to plan the bombing of the Trade Centre in 2001, Linus Torvalds, the creator of Linux, could not have done a thing to prevent it.

  Zhang ends with this: "Democratic governments also need to reassess which products should not be made open-source because they’re at risk of being weaponised by malign actors. Some cutting-edge software, such as generative AI, is already being co-opted by the CCP [Chinese Communist Party] against democracies in disinformation campaigns."

  There is more than a certain irony in Zhang using the word "disinformation" after all the incorrect data he has provided.

  "Lastly, governments should protect and foster the global open-source community of software developers, who are a critical resource in cyber security and other key areas, and do more to challenge authoritarian governments when they ban or censor open-source platforms like Hugging Face and GitHub," is Zhang's final note.

  Any country can decide what software to use or not use within its own borders. Unless, of course, Zhang asks the US to force some country to do its bidding.

  ASPI often makes a song and dance about misinformation. It would be good for the organisation to get its own house in order first. Charity, it has long been said, begins at home.
• Hughes opens facility and 5G incubation centre
  in 5G
  By Kenn Anthony Mendoza

  Hughes Network Systems, a subsidiary of EchoStar, opened a manufacturing facility and 5G incubation centre in Germantown, Maryland in the US to advance technology and foster local talent in the region.

  The new manufacturing centre is located in the Pinkney Innovation Complex for Science and Technology on the Montgomery College campus.

  It produces US-made hardware that powers the networks on which people, enterprises, and governments depend such as the Hughes HT3000W Jupiter System satellite modem and the Hughes HL1120W Low Earth Orbit (LEO) satellite terminal.

  The Hughes EXM facility deploys robotics to assist in the manufacturing of satellite modems and terminals.

  {loadposition kenn}

  It will serve as a testing ground for private 5G solutions just now reaching the market for Enterprise applications and secure 5G networking applications critical to the US Department of Defence.

  It will also offer hands-on training and educational initiatives for students to foster local talent.

  Students will be able to interact with leading engineers at Hughes through internships, mentoring, and shadowing opportunities. This 140,000-square-foot space is the first-ever manufacturing facility on a community college campus in the US.

  "The EXM facility allows us to continue a proud tradition of designing and manufacturing leading-edge products here in Maryland,” said Hughes COO Paul Gaske.

  "The products imagined, designed, and fabricated in this building further advance our mission of connecting everyone, everywhere,” said EchoStar president and CEO Hamid Akhavan.
• After more than three years, Huawei surges to the top in China again
  in Mobility
  By Sam Varghese

  After 13 quarters, smartphone vendor Huawei has returned to the top of the list for the mainland China market, shipping 11.7 million units in the first three months of 2024 and capturing a 17% market share, the technology analyst firm Canalys says, attributing this to the performance of its Mate and nova series.

  Oppo took second place with 10.9 million units (a drop of 14% year-on-year) after a strong showing by its Reno 11 series. Honor (10.6 million units, up 9% year-on-year), vivo (10.3 million units, down 9% year-on-year and Apple (10.0 million units, down 25% year-on-year) made up the top five.

  Another analyst firm, IDC, said total China shipments for the quarter grew 6.5% year-on-year to 69.3 million units. Canalys had the total figure at 67.7 million units.

  IDC had Honor heading the list of vendors, with a 17.1% market share and year-on-year growth of 13.2%. Huawei was second in this list, with a 17.0% share and 110.0% year-on-year growth. IDC did not provide sales figures for each vendor. Honor, formerly Huawei's budget smartphone unit, was sold to 30 agents and dealers in 2020.

  {loadposition sam08}"Honor climbed to the top spot, thanks to its well-rounded product portfolio and the Magic 6 series which came with popular AI features," said Arthur Guo, senior research analyst in Client System Research for IDC China.

  "Meanwhile, Huawei made a strong comeback and achieved a tie with Honor, though supply constraints will still be a pain point. Apple’s price promotions in the quarter were unable to mitigate the impact of the intense competition from Android players."

  

  Will Wong, senior research manager for Client Devices at IDC Asia/Pacific, said: "The close race among the top-tier players implies that Chinese consumers are more likely to change from one brand to another.

  "Thus, there’s an increased need for action from the vendors to keep innovating to ensure strong customer stickiness."

  Canalys senior analyst Toby Zhu commented: "The mainland China market's growth is still behind the global recovery of 11%, which allowed Huawei to seize market share and reclaim the crown quickly.

  "The production and supply shortage of the Mate 60 series improved in the first quarter, propelling it to become the key driver of Huawei's overall growth.

  "In addition to the high-end line-up, Huawei released the nova 12 series in December, which features Harmony 4.0, expanding the Kirin chipset to more product lines and successfully boosting performance in the mid-range price band.

  "This month Huawei also upgraded the P series to Pura 70, featuring an innovative pop-out camera lens, further sparking market interest.

  

  "A key strategy for Huawei in 2024 is to focus on building AI capabilities for smart devices from hardware to software at a system level, leveraging its deep R&D capabilities in AI infrastructure and solutions for industry and enterprise customers.

  "With the continued expansion of the HarmonyOS ecosystem, Huawei emerges as the third OS for smartphones and other edge computing devices, breaking the two-horse race of Android and iOS in Mainland China."

  Canalys research manager Amber Liu added: "Despite Huawei's strong start, we maintain the modest recovery forecast for overall market performance in 2024 growing at 1%.

  "The talking point within the industry surrounds intensifying competition and innovation moat building. Leading vendors are narrowing their market share, which means exploring growth opportunities in different channels is critical to capture short-term opportunities.

  "Vendors' go-to-market capabilities in multi-channel management, price control, and inventory management will be tested."

  Research analyst Lucas Zhong said: "The Gen AI-capable smartphone presents important opportunities for Chinese vendors to differentiate in the high-end in 2024 to challenge Apple in their home market.

  "Canalys forecasts Gen AI-capable smartphones will reach 12% of shipments in 2024 in mainland China, ahead of the global average of 9%.

  "Vendors are actively engaging consumers by developing interesting AI use cases and integrating AI features into their latest flagship launches with large marketing spends to educate consumers.

  "In 1Q, Xiaomi led in the Gen AI-capable smartphone market with its flagship 14 series, while Honor explored its high-profile Magic 6 series with cross-device AI features with its MagicBook Pro 16.

  "Oppo, on the other hand, pushed ahead with massive marketing investments on national TV channels, positioning its brand with AI features and innovation.

  "We see an increasing divergence in Chinese vendors' R&D and AI product strategies this year, collectively driving further consumer awareness and adoption, which will feed into a sustainable monetisation model."