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Day 1 Edition - 2018 Edition

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The 2018 Preview edition of IFA International, the official daily of the IFA Berlin show.

EXCLUSIVE INTERVIEW

EXCLUSIVE INTERVIEW HUAWEI’S INNOVATIONS ARE DEVELOPED BY EXAMINING THE NEEDS OF CUSTOMERS Richard Yu CEO, Huawei Huawei backs a connected world Richard Yu, CEO of Huawei and one of today's IFA keynoters, talks about the company’s vision for “an all-connected world” Huawei invests significantly in research and development to understand the ways in which people interact and connect with machine and technology. We asked Richard Yu to tell us more. Currently, there is much hype surrounding AI and IoT, but Huawei views them as fundamental capabilities that will eventually make their way to all end-user devices. We also believe that through fabricated sensors, mobile devices will eventually serve as personal assistants for people from all walks of life, capable of understanding a user’s preference, identifying the person’s location, and from that knowledge, deriving services most suitable for the user. How is Huawei using AI through mobile innovations? Huawei’s initiatives and goals are underpinned by a desire to bring value to consumers. All of Huawei’s innovations are developed by examining the needs of customers, from the start. As such, we are focused on developing Mobile AI - a combination of Cloud (server-side) and On-device (client-side) AI because we believe the two complement each other for the benefit of consumers. Additionally, we understand there is an increased awareness around consumer privacy. Therefore, in order to safeguard user data, Huawei has developed chip-level security measures to ensure all data moving out of the device is transferred with user consent. Take the smart photo gallery, for example. Huawei’s latest implementation of image recognition relies solely on local NPU. By doing away with Cloud AI, Huawei’s smart gallery not only performs vastly better, but also solves for users’ past privacy concerns. What are Huawei’s latest developments in AI? Huawei is committed to being an innovator first—that is ingrained in our corporate DNA and is something that will never change. We are currently most interested in innovating around technologies that allow us to create intelligent and connected user experiences for our customers. Moving forward, our strategy will be built around our expertise in mobile AI, user interface, and cloud and chipsets, as these technologies will enable us to realize a true next-generation user experience. We also want to create a fully-connected ecosystem of our products and services, including smartphones, fitness products, smart home products, VR/AR/ AI applications and more. This would allow Huawei Consumer BG to create one singular, seamless, high quality user experience across every aspect of a user’s life. Can you share any details of Huawei’s “Project Da Vinci” campaign? The technology industry evolves at an extremely fast pace, which is why we elevate our core expertise and take a technologyfirst approach. At Huawei, we believe AI will be the core of future technology. For this reason, we have invested heavily into this field. I cannot reveal much about Project Da Vinci, but the campaign’s goal is to bring AI technology to a wide range of Huawei’s hardware offerings, ranging from consumer electronics to datacenters to network equipment. Huawei launched the Mate 10 shortly after the launch of the world’s first AI chipset – Kirin 970 at IFA last year. HUAWEI IS COMMITTED TO BEING AN INNOVATOR FIRST Has usage of the AI photography function exceeded your expectations? The HUAWEI Mate 10 Series’ AI capabilities are enabled by Kirin 970’s NPU. Combined with a dual-ISP, the cameras are capable of identifying objects and scenes in realtime and automatically setting the best parameters for the picture. Consumers really like Huawei’s Master AI photography because it makes it possible for them to have professional photography at their fingertips. That said, we will not slow our pace but continue to raise the bar for today’s smartphone camera technology, making professional photography as effortless as possible. How important is IFA as a platform for you to present your products to the world and develop your partnerships? Europe is not only one of the fastest growing markets for Huawei but it is a region where some of our most important partners such as Leica and Porsche Design are headquartered. Through IFA, we are able to demonstrate the latest product of our partnerships, and showcase how we leverage innovative technologies such as AI and AR to create a connected and smart experience for consumers 46

IFA Home Appliances NOMADIC LIFESTYLE IFA My Media IFA Audio Entertainment IFA IFA Home & Entertaiment Electronics IFA Communication If it moves, buy it “Nomadic” products of all kind take flight at IFA 2018 47% Growth forecast for connected watch market in 2018 Source Futuresource 12% Wearable market growth this year Source Futuresource 25.3 million The number of gaming headsets forecast to be sold in 2018 Source Futuresource Gone are the days when electronic products were tethered in one place. Advanced battery technologies have enabled all kinds of devices, from mobile phones (perhaps no longer aptly named – as the phone function is now minor), through fitness and activity devices, mobile audio, mobile gaming PCs, eMobility devices, action cams and drones, gaming & VR, headphones and portable audio, mobile devices, fitness wearables… You’ll find it all at IFA. FUTURESOURCE TRACKS KEY MARKETS @ IFA According to analysts Futuresource, headphones volumes continue to slow while prices keep accelerating (more features and more value for end-user). True wireless has set the category alight, while many smart features have taken a back seat (fitness tracking, etc.). Portable/Bluetooth speakers - Despite the growing presence of smart speakers, Bluetooth performance exceeded previous expectations to ship 62.8m units in 2017. In 2018, Bluetooth speakers are seeing some cannibalisation from smart speakers. Gaming headsets – in line with the booming gaming market 25.3m units should sell this year. The global phenomenon of “Battle Royale” games – specifically PUBG and Fortnite – coupled with the continued emergence of mainstream eSports is driving online and social gaming to an ever wider and more diverse audience. Video drones (excludes Toy, industrial) – sold 4.4m units WW in 2017 up 26% Y/Y. DJI maintain 75% of demand. The Wearables market, including fitness devices and connected watches, grew by 14% in Q1 2018 Y/Y in terms of volume and 23% in terms of value. A total of 24.3 million units were shipped, representing retail value of $US4.4bn. In terms of full year 2018 growth, the Wearables market is forecast to see a 12% increase in volume, with 107.6m shipments. At retail value level, this is forecast to generate US.2bn, growing by 17%. Connected watch demand witnessed continued its momentum New LG speaker presented by Miss IFA following a positive Q4 17, with 47% unit growth forecast for the year. Wireless/hybrid watches are expected to see significant demand increases, at 120% growth in units over the full year, following a 128% increase during Q1 18. Apple retained their position as the leading wearables vendor in terms of volume and more significantly in terms of value © Messe Berlin GmbH www.ifa-international.org IFA International • Friday 31 st August 2018 47

IFA International