’s Approaches to Developing Smartphones

 Katsumi Takada

Amid a paradigm shift from feature phones to smartphones, Fujitsu acquired the top market share in as a vendor of mobile phones with its quick deployment of 11 smartphones for NTT DOCOMO, INC. and KDDI CORPORATION in 2011. While maintaining this strong domestic market position, Fujitsu is aiming to enter global markets in earnest with Raku-Raku SMART PHONEs in 2012. Fujitsu smartphones are founded on two of the company’s strengths. The first is the company’s technologies—its phones have the best features in the industry because they adopt the latest and fastest platform, they have leading radio technology, and they use Fujitsu’s unique technologies that it has cultivated so far, such as human perception technolo- gies for good visibility of displays, good audibility of phone calls, and comfortable touchscreen controls. The other is the company’s excellence in manufacturing within factories that are lo- cated in Japan. Furthermore, Fujitsu keeps improving its software development ability to use open-source technology which is necessary for smartphone platforms such as Android OS. This paper introduces Fujitsu’s smartphone strategy that utilizes these strengths and also its ap- proach to developing new markets.

1. Introduction number among all Japanese manufacturers, and ac- With the emergence of the iPhone and the iPad quired the top market share together with feature as a turning point, the business is un- phones. dergoing a major paradigm shift from feature phones This paper presents the elemental technolo- to smartphones (including tablets) and the Japanese gies that form the basis of the features of Fujitsu mobile phone market is making a rapid shift to smart- smartphones whose domestic market share we have phones at a pace exceeding that of the worldwide successfully increased, approach to improving our market (Figure 1). development efficiency, and methods of production Smartphones are not only positioned as consumer innovation from the perspective of manufacturing. It products but also have a role of a ubiquitous front that also describes the development of new markets and supports a Human-Centric Intelligent Society. As a new possibility of business that makes use of smartphones group of products different from feature phones, their as a ubiquitous front. market is expected to expand. Fujitsu was quick to shift its focus to smartphones 2. Fujitsu’s smartphone strategy and has worked on development to establish a firm In response to changes in the business structure position, as it has enjoyed with feature phones. In ad- that result from the rapid shift to smartphones, we dition to the existing NTT DOCOMO, INC. (hereinafter have formulated three pillars for a business strategy DOCOMO) market, we entered the KDDI CORPORATION to further expand the mobile phone business in the (hereinafter KDDI) market in 2011 by integrating future. our mobile phone business with that of 1) Strengthening of business in Japan CORPORATION (hereinafter TOSHIBA). We brought 11 In addition to the existing DOCOMO and KDDI smartphone models to market, which is the largest markets, we entered the SOFTBANK MOBILE Corp.

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2489 4673 4747 4821 2500 5000 100 2293 4457 FP 318 2009 621 Ratio 1844 1001 2000 4000 93 90 FP 1164

000 units) 1922 1234 79 87 million units) 1500 3000 80 1273 SP 3922 1307 3700 1000 2000 3360 70 SP 999 818 2349 Tab + SP ratio (%) 1000 60 500 633 473 57 Shipment volume (10 Shipment volume (1 241 Tab 326 322 426 Tab 581 0 64 103 0 186 50 2011 2012 2013 2014 (FY) 2011 2012 2013 2014 (FY)

(a) Worldwide (b) In Japan (Tab: tablet SP: smartphone FP: feature phone)

Figure 1 Figure 1 Forecast for mobile phone market. Forecast for mobile phone market.

(hereinafter SOFTBANK) market to firmly establish our including top performance operations achieved by fun- position in the Japanese market. damental technology and ultimate user-friendliness Specifically, we will launch a full line-up of models based on Fujitsu’s unique human-centric technology. including Raku-Raku SMART PHONEs in the DOCOMO On top of this are features which are added according market and actively propose products to other carri- to users’ preferences and usage situations as new value ers so that we can ensure a certain volume of sales, for the respective models. In this way, we have devel- thereby steadfastly maintaining our top share in the oped a wide range of products that meet diverse user domestic market. needs (Figure 2). 2) Full-scale entry to global market In FY 2011, we not only launched the ARROWS By targeting the senior market, we will enter our brand but also brought out a line-up of products that target markets with Raku-Raku SMART PHONEs in FY fill varying needs. They include high-end models that 2013, and we will gradually expand those markets. were among the first to support DOCOMO’s Xi service, At the same time, we will further cooperate with models for female users, thin and water-resistant mod- Fujitsu’s overseas bases so that we can enter the corpo- els, REGZA Phone, Disney-collaborated smartphone, rate market, which has the potential to expand in the high-speed WiMAX handset for KDDI and the world’s medium to long term. first model integrating Windows Phone 7.5, and they 3) Development of new markets as ubiquitous front have won praise from the market (Figure 3). In addition to business models with handsets 2) Industry’s top basic performance alone, we will aim to launch a handset-based new busi- We introduced a leading-edge platform before ness model by combining products with hardware and others and optimally customized it to Fujitsu’s pro- services. prietary hardware so as to achieve the industry’s top To that end, we will offer handsets that support performance. various applications in accordance with the expansion As hardware platforms, we have led the adoption of business areas as a ubiquitous front and work on of multi-core processors in Japan (dual-core in FY 2011 developing new markets. and quad-core in FY 2012) and achieved products with the smoothest operational feel in the industry. As soft- 3. Features of Fujitsu smartphones ware platforms, we have adopted Windows Phone 7.5 1) Wide variety of products for the first time in the world in addition to Android OS Fujitsu smartphones adopt three-tier architecture. to meet diverse user needs. Specifically, there are functions common to all models In the future, we intend to continue to quickly

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Creating values according to users’ preferences and usage situations Working to develop new functions, new technologies and new materials New values for respective models

Human-centric Pursuit of Fujitsu’s proprietary technology technology Large and visible display, smooth operational feel and user-friendly UI Continuous improvement of basic performance of smartphones High-performance CPU, high-speed communication, Fundamental technology latest OS, and thin and water-resistant model

Common to all models

Figure 2 SmartphoneFigure architecture. 2 Smartphone architecture.

First half Second half All-in-one, high-spec, F-05D water-resistant smartphone Ultra-slim, NEXT series F-07D water-resistant smartphone

REGZA Phone Compact, REGZA Phone NTT F-12C water-resistant smartphone T-01D DOCOMO Water-resistant smartphone F-03D/Girls’ for women

Disney Mobile on docomo Disney-collaborated with series F-08D smartphone

World’s first water-resistant tablet F-01D LTE tablet

REGZA Phone WiMAX, high-spec, REGZA Phone IS11T ISW11F water-resistant smartphone KDDI Windows Phone World’s first WP 7.5 ES Ultra-slim, IS12T smartphone IS12F water-resistant smartphone

Figure 3 FY 2011 smartphone line-up. Figure 3 FY 2011 smartphone line-up. determine the industry trends and seek to adopt the second in the industry in terms of download traffi c latest platform of the age (Figure 4). speed (average of the values measured in three loca- 3) Product deployment centered on proprietary radio tions in ), which shows that consumers appreciate technology Fujitsu’s ability. A radio platform is used that brings together In the future, we intend to make use of soft- the world’s fi rst-class radio technologies that have ware-defi ned radio (SDR), a next-generation radio undergone continuous development since the fi rst- technology, to accommodate a wide variety of wireless generation FOMA handsets. In research conducted by systems for overseas markets while also deploying ITmedia1), ARROWS Z and ARROWS X placed fi rst and products in Japan (Figure 4).

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FY 2011 FY 2012 FY 2013 High end/Tablet Japan’s first Dual-core Japan’s first Quad-core

Mid end Hardware Single-core Dual-core Low end Single-core

Fujitsu’s proprietary radio technology Radio Japan’s first LTE SDR

Android OS Froyo GB ICS JB KLP

Software Windows Phone OS WP7.5 World’s first WP8

Figure 4 PlatformFigure roadmap. 4 Platform roadmap.

4) Ultimate user-friendliness top-level image representation in Japan achieved by We offer ultimate user-friendliness that distin- the REGZA Engine and a variety of consumer electron- guishes us from our competitors by taking advantage ics linking functions by REGZA LINK, which have been of proprietary technologies such as displays with made available by business integration with TOSHIBA. good visibility, phones where the speaker’s voice is They also include Japan-specifi c functions (so-called very audible, comfortable touchscreen controls, and “Galapagos phone functions”) essential for feature peace of mind combined with convenience, which we phones including IR communication, One-seg broad- have cultivated with feature phones and Raku-Raku casting TV and Osaifu-Keitai as well as a function to link PHONEs. We have integrated these technologies into a handset with a car navigation system. an LSI as Human-Centric Engine (HCE) and mounted We will continue to provide functions by consider- it in smartphones, thereby achieving user-friendliness ing new situations in which customers use our products. comparable to or higher than that of feature phones and Raku-Raku PHONEs. 4. Approach to strengthening of From now on, we are committed to making prod- development ability ucts that further conserve power and have even higher As we are now in the smartphone age, competi- performance, and making Fujitsu’s proprietary UI even tion with global vendors is intensifying. In such a easier to use so that we achieve the “most user-friendly business environment, we urgently need to enhance smartphone in the world” (Figure 5). our development ability so that we can be competitive In addition, we will continue to work on providing in the global business market. the water-resistant feature that is a synonym for Fujitsu 1) Strengthening of software development ability mobile phones for all models, and work to reduce size Feature phone development was carried out in a and thickness in the same way as with feature phones. closed environment in which most software functions 5) Support for various usage situations were developed in-house. In contrast, smartphone We have improved the usability of our handsets development is increasingly taking place in an open by accommodating various usage situations of cus- environment based on open-source software (OSS) tomers by offering diverse functions. They include the such as Android. In such an environment, a company’s

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Optimally “adapted” Smartphone HCE Cloud network Easy to see Sensitivity Easy to hear expression technology Visual Haptic assistance model Comfortable touch

Peace of mind and convenience Sensing Sound and image analysis engine engine Fujitsu’s unique Under- Health/beauty easy to use Utilization Grasping of consultation of user’s standing of user’s surroundings service technology characteristics technology Fundamental mobile behavior

Figure 5 Overview ofFigure Human-Centric 5 Engine. Overview of Human-Centric Engine. software development ability plays a key role in its Joint Provision of PF product competitiveness, and Fujitsu is also working Company A development with high degree hard to enhance its ability. from initial phase of completion Company First, we brought together Android engineers B from the outside as well as in-house as immediate Company C contributors to move ahead with the development of Company Pre- Advanced Handset models which were shipped in FY 2012. Furthermore, D chip vendor Global evaluation development development we intend to share and extend the technological know- Development Center Global how gained in the process to increase the number of PF: Platform Android engineers in the medium to long term. Figure 6 2) Strengthening of hardware development ability UtilizationFigure 6 of Global Development Center. Hardware development is also becoming increas- Utilization of Global Development Center. ingly open and many global chip vendors provide hardware platforms based on CPUs that run Android OS. improve the effi ciency of development of hardware and To ensure these platforms run quickly and have high- software. For that purpose, we use common hardware performance operations, the board support packages except for the carrier-specifi c wireless block and generic (BSPs) offered by the chip vendors must be optimally software common to all models. This common hardware customized to Fujitsu smartphones. For that purpose, contains BSP drivers, Linux kernel and Android block as we have cooperated with chip vendors in the Global well as Fujitsu’s proprietary application software includ- Development Center, which is one of Fujitsu’s offi ces in ing HCE functions. We thereby reduce development the USA, to drive joint development in an integrated volume and stabilize quality. On top of this common manner from the initial phase of development to plat- block, application software for the respective carrier is form development and customization for Fujitsu. This implemented to minimize the specifi c development seg- has allowed us to pursue improved development effi - ment and improve development effi ciency Figure( 7). ciency and a higher degree of completion of platforms (Figure 6). 5. Approach to manufacturing/ 3) Improvement of development efficiency by com- production innovation mon development To overcome the competition from global ven- To develop smartphones that meet diverse needs dors, we must have an excellent manufacturing and in a short time and with stable quality, it is essential to production ability that compares favorably with that of

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overseas original design manufacturing (ODM) vendors time to be reduced, improves the yield rate of testing, while also strengthening our development ability. and improves our production capacity. To that end, Fujitsu Mobile-phone Products 2) Automation/robotization Limited and FUJITSU PERIPHERALS LIMITED, which are We combine our strengths in design and manu- manufacturing bases in Japan, are working on estab- facturing to save labor by, in addition to robotization lishing the Fujitsu standard production system in order in the assembly process, developing jigs that allow to achieve high efficiency that outstrips overseas ODM testing to be automated and improved design standard vendors (Figure 8). into that facilitating automation by means of design for 1) Test procedure innovation manufacturing (DFM). We established a test system not affected by the 3) Reinforcement of the ability for trial manufacture/ start-up of Android OS or product application operation evaluation by running test commands independently from Android We reinforce the automated line by test procedure OS. This allows testing to be stabilized and the test innovation and automation/robotization to realize im- proved trial manufacture/evaluation ability. This allows test systems to be built quickly and stably and allows us

APL for APL for APL for to vertically start up mass production. NTT DOCOMO KDDI SOFTBANK 4) Manufacturing/repair standard We drive automation of manufacturing and Generic software (common block) improve repair efficiency and reduce lead time by stan- Fujitsu’s proprietary APL (including HCE) Android APL dardizing the results of DFM. Android Framework By organically linking the four approaches above and our quick response to variations in market demand Linux kernel by synchronizing manufacturing and the produc- BSP BSP BSP BSP Driver Driver Driver Driver tion system, we intend to realize the Fujitsu standard production system as an ideal of manufacturing and

Carrier-specific wireless block Carrier-specific wireless production in the future. Provided by Provided by Provided by Provided by Company A Company B Company C Company D General-purpose processor 6. For development of new markets APL: Application Software Fujitsu is a comprehensive ICT manufacturer and BSP: Board Support Package aims to be a “technology-based, globally integrated FigureFigure 7 7 service company” with its full-stack strategy encom- Common development methodology. passing devices and solutions. Common development methodology.

Reinforcement of the ability Test procedure innovation for trial manufacture/evaluation Improvement of yield rate Mass production vertical startup Manufacturing/ production innovation technology Automation/robotization Manufacturing/repair standard Saving of labor Lead time reduction

Manufacturing Manufacturing line rebuilding system reform Synchronization of manufacturing and production system Quick response to market demand variation

Genkotsu-Robot

Figure 8 Manufacturing process using Fujitsu standard.

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Consumers

Ubiquitous front • Mobile device • Data collection • Knowledge distribution Ubiquitous front

Behavioral Lifestyle New values Service platform pattern Social infrastructure • Data analysis • Creation of values

Service platform Network

Sensing data • Provision of network services Network

Figure 9 New markets for ubiquitous front. Figure 9 In this strategy,New markets smartphones for ubiquitous are positioned front. as improving development effi ciency; manufacturing and customers’ ubiquitous front and they must continuously production innovation; and development of new mar- offer new values. kets. We are committed to continue working so that To that end, we intend to make use of Fujitsu’s pro- we can pursue all possibilities and provide the most prietary HCE integrated in smartphones and tablets to user-friendly smartphones in the world that make all develop services for consumers and corporations based customers happy. on Cloud federation, thereby creating new markets. We also plan to use Raku-Raku SMART PHONEs to offer References new services targeting digital seniorsnote)i (Figure 9). 1) ITmedia: A Complete Comparison of the Latest Smartphones (2011 Winter/Spring Models) Part 3: 7. Conclusion Comparison of Traffi c/Start-up Speed between 35 Models—Which is the “fastest” model? (in Japanese). This paper has presented Fujitsu’s smartphone http://plusd.itmedia.co.jp/mobile/articles/1203/29/ strategy including their features; approaches to news081.html#l_st_sfc-04.jpg note)i Seniors who have a fl awless command of PCs, mobile phones and smartphones and are actively using the .

Katsumi Takada Corporate Vice President Fujitsu Ltd. Mr. Takada is currently engaged in expan- sion of mobile phone business.

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