Obigo, Inc. · KRX:352910
Obigo — Teleca Mobile Devices — Investor Day (2003)
44 slides from Obigo's investor day presentation, 2003
Slide 1: Teleca Mobile Devices (TMD) - A Global Organisation to tackle a Global Market
Teleca Mobile Devices (TMD) -A Global Organisation to tackle a Global Market Nick Wood Senior Vice President Teleca Mobile Devices
Slide 2: Teleca Mobile Devices
Teleca Mobile Devices Introduction to TMD Mobile Devices – Market Development Market Opportunity Teleca’s Mobile Devices Today Strategy Risks Outlook
Slide 3: Teleca Mobile Devices Vision
Teleca Mobile Devices Vision “To become a recognised global leader in delivering comprehensive consulting and design services to the Mobile Industry, based on strong local operations and world-class centres of excellence”
Slide 4: What is a Mobile Device?
What is a Mobile Device ? Communications Equipment that uses radio networks – Handsets – PDAs – Embedded Mobile Communications Equipment Teleca focuses on upper tier devices – Complex, high development requirement – Difficult, high value add Also includes connectivity to devices, e.g. PC Software
Slide 5: Teleca Mobile Devices
Teleca Mobile Devices Sells Consulting Services, Solutions and Intellectual Property Customers are Equipment Vendors and the Companies in the associated Supply Chain Key value-add is to offer complementary R+D that allows customers to deliver their products and solutions to market more quickly and c
Slide 6: Teleca Mobile Devices
Teleca Mobile Devices Introduction to TMD Mobile Devices – Market Development Market Opportunity Teleca’s Mobile Devices Today Strategy Risks Outlook
Slide 7: Market History
Market History 700 600 Revival ??? 500 Plateau, decline ? 400 Hyper-growth 300 200 100 0 1998 1999 2000 2001 2002 2003F 2004F 2005F Global Handset Sales (units)
Slide 8: Industry in Turmoil
Industry in Turmoil End of the boom, end of high growth phase Too many players, too few making profit Increasing complexity of devices Major changes in supply / value chain Focus switch to emerging markets New entrants emerging, especially in Asia Operator/handset battle for control
Slide 9: Growth Plateau
Growth Plateau High growth phase => focus on – Position – Market share – Technology – Time to Market Growth plateau => focus on – Costs/profit – Efficient delivery to market – Segments, Design, Consumer Appeal – Branding
Slide 10: Increasing Complexity
Increasing Complexity 20th Century Phone 21st Century Phone Voice centred Voice SMS Fast Packet Data Circuit switched data Picture Messaging Email Limited Applications Large colour graphic screen B+W text screen Sophisticated Apps Browsing Integrated Camera Games Music Data Synchronisation …..and so
Slide 11: Implications for R+D
Implications for R+D 20th Century Phone“DIY Model” 21st Century Phone– “Integration Model” Hardware Focus Software Focus Custom Software Licensed Software IPR in house External IPR Proprietary Architecture Chipset platforms Resource based outsourcing Open OS now emerging Local suppliers Project/SI o
Slide 12: Trends for Supply to Handset Manufacturers
Trends for Supply to Handset Manufacturers Increased outsourcing, up to complete device designs More structured approach, focus on efficiency Desire to deal with smaller number of suppliers Increasing reliance on suppliers for technical expertise – can’t maintain in house
Slide 13: Focus on Asia
Focus on Asia Saturated Western Markets, untapped Asian Markets Immature Asian markets Rise of Samsung Local Asian handset vendors emerging Asian electronics firms exploring mobile
Slide 14: Battle for Control
Battle for Control Many actors trying to influence the market Operators (e.g. Vodafone Live!) Nokia (e.g. Series 60) Microsoft Symbian => Unclear who will win; risky to bet on a winner
Slide 15: The Nokia Factor
The Nokia Factor Nokia has powerful (almost dominant) role in industry Can play by different rules – Economies of scale change supply economics – Vast R+D expenditure (2002 ~€2bn) – Different position with Operators Move to take strong position in software with Series 60 Nokia is important Teleca cu
Slide 16: Changes in the Supply/Value Chain
Changes in the Supply/Value Chain Move to more complex model Different actors moving in the value chain – Chipset vendors buying stack vendors – Manufactures buying designers – Hardware companies offering software platforms As a consulting company Teleca can offer services throughout the value chain
Slide 17: Value Chain
Value Chain Brand names ODMs + a wide range of local consultant companies Application/OS software vendors GSM/GPRS/3G stack vendors Chipset vendors IP vendors Ericsson Mobile Platform
Slide 18: Teleca Mobile Devices
Teleca Mobile Devices Introduction to TMD Mobile Devices – Market Development Market Opportunity Teleca’s Mobile Devices Today Strategy Risks Outlook
Slide 19: Market Opportunity
Market Opportunity Vendors need help to build increasingly complex devices Software value in device is growing (especially high end) Handset market is still growing overall (estimated 10% 2003) Growth in high end devices is potentially explosive Data based devices and services in their infancy
Slide 20: Market Development Projection
Market Development Projection 600 Shipments (units in millions) 500 400 300 200 100 0 2003 2004 2005 2006 2007 Voice-centred Phones Feature Phones Smart Phones Source: DB Research
Slide 21: Teleca Mobile Devices
Teleca Mobile Devices Introduction to TMD Mobile Devices – Market Development Market Opportunity Teleca’s Mobile Devices Today Strategy Risks Outlook
Slide 22: Teleca Mobile Devices Today
Teleca Mobile Devices Today Trading with most of industry Top 10 + many more Only selling fraction of offering to most => Opportunity ~ 800 staff worldwide Global operation with four core Business Segments Mix of local consulting and internationally delivered turn- key projects
Slide 23: Business Segments
Business Segments 4 Business Segments defined, aligned to customer areas of interest ¾ Obigo ¾ Feature Phones ¾ Smartphones ¾ PC Connectivity Different strategies, partnerships required in each
Slide 24: BS Obigo
BS Obigo Obigo Business Segment is Application platform and key applications for Feature phones and Smartphones Product business model, licensing and royalties Strong market position – In over 150 different phone models – 60 customers in 17 countries
Slide 25: BS Feature Phones
BS Feature Phones Feature Phones defined as high functionality devices based on closed and proprietary OS Growing, profitable but underrated segment (“unsexy”) Increasing trend for chipset vendors to offer more complete solutions No overall industry standardisation Involves integration of many compo
Slide 26: BS Smartphones
BS Smartphones Smartphones – Devices based on open platform from third party Potential platforms are Symbian, Microsoft, Palm, Linux Symbian winner today Microsoft has to be taken seriously, still time to make an impact Palm unlikely to succeed, Linux may find a niche Poised for strong growth Very e
Slide 27: BS PC Connectivity
BS PC Connectivity PC Connectivity is a “must have” for upper end devices (Feature phone + Smartphone) Natural part to outsource – Different Technology base – Specialised skill, unpredictable platform – Clean interface Teleca possess fully feature own IPR solution Product Business model – Licence +
Slide 28: Teleca Mobile Devices Worldwide
Teleca Mobile Devices Worldwide Finland - Helsinki France – Rennes, Paris Germany - Nuremberg Sweden – Lund, Stockholm, Umea, Ronneby UK – Winchester, Manchester, Bath Tokyo, Japan San Diego, Seoul, USA Korea China, Taiwan, planning
Slide 29: Teleca Mobile Devices
Teleca Mobile Devices Introduction to TMD Mobile Devices – Market Development Market Opportunity Teleca’s Mobile Devices Today Strategy Risks Outlook
Slide 30: Teleca's Key Strategies
Teleca’s Key Strategies Deliver world class systems integration expertise Offer capability to deliver complete design service Focus on complex devices Strong partnerships with industry leaders Develop long-term relationships with customers Ownership of key intellectual property Local presence in all
Slide 31: Channels to Market
Channels to Market Needs devices to match specifications, recommends Teleca Understands Operator Requirements, helps define as consultant Operator Offers services and solutions direct Equipment Teleca Manufacturer Needs software partner Expert in Supplier Technology, Supplier to integrate technology
Slide 32: Channels to Market
Channels to Market Teleca Operator Equipment Manufacturer Supplier
Slide 33: "Glocal" Strategy
“Glocal” Strategy (Global Reach – Local presence) Local offices close to customers key part of strategy Offers many benefits – Knowledge of local culture/business practice – Speak to customer in native language – Same time zone – Access to additional opportunities through local consulting – Day to d
Slide 34: Feature Phone Key Strategies
Feature Phone Key Strategies Assist Chipset Vendors to build platforms Partner with Chipset vendors, expert software partner The Obigo Application Platform integrator Pre-integration of Obigo into reference designs Relationships with Operators, help specify designs Understand and adapt to different
Slide 35: Teleca Smartphone key strategies
Teleca Smartphone key strategies Align with key partners – Symbian Competence Centre (1 of 8 worldwide) – Nokia Series 60 Competence Centre (1 of 3 worldwide) – UIQ Partner (unofficial) – TI OMAP Technology Centre (1 of 7 for Symbian OS) – Discussions with other OS vendors Closer collaboration model
Slide 36: Competitors
Competitors Fragmented Picture Teleca key differentiators Many small software houses – Breadth of technical capability One customer specialists – Intellectual Property – Scale to take on complete designs/Key – Digia, Hampex, Supplier role Obigo competitors – Industry Partnerships – Access, Openwave
Slide 37: Further Opportunities
Further Opportunities Data based services just starting Integration of mobile technology in other areas (e.g. cars) Corporate Applications Further integration into the Mobile Device Positioning End-to-end solutions, partnering with other Teleca groups
Slide 38: Teleca Mobile Devices
Teleca Mobile Devices Introduction to TMD Mobile Devices – Market Development Market Opportunity Teleca’s Mobile Devices Today Strategy Risks Outlook
Slide 39: Risks
Risks Low cost “offshore” competitors Industry Stagnation Different Model to Teleca “wins” Copy of PC industry – value evaporation
Slide 40: Offshore/Low Cost
Offshore/Low Cost Genuine threat – Wipro Industry based in Western World - Partnerships Focus on compelling value add propositions Focus on leading edge technology Exploit existing Teleca low cost centres (e.g. Poland) Must review if buy/build of Teleca low cost centre necessary (China/India)
Slide 41: Industry Stagnation
Industry Stagnation Saturation in Western World Standstill unlikely, though direction may surprise – Camera, colour phones – MPVs 4x4 cars – Low cost airlines Exploit data capabilities, mobile applications Integration of mobile technology into new markets Stay flexible, ready to follow the fickle co
Slide 42: Different Model to Teleca "wins"
Different Model to Teleca “wins” Teleca is positioned as design specialist Potential threat from – Manufacturers who look to provide design – Hardware vendors look to provide solutions Focus on unique value-add in our sector Need to make partnerships a better model New entrants unlikely to build fro
Slide 43: PC Model – Value Evaporation
PC Model – Value Evaporation PC producers seen as “box shifters” Handsets are consumer devices – different dynamics R+D in PC world is still significant (Dell $400M) No dominant player today The “Terminator” effect The current Nokia/Symbian/Microsoft battle is good for Teleca
Slide 44: Conclusion and Outlook
Conclusion and Outlook Teleca has established a world-class Consulting Operation for Mobile Devices The market for the complex devices that Teleca specialises in is growing The industry is undergoing significant change, and Teleca has strategies to thrive Teleca has only weak dependency on some unpr