Opportunities for Sapphire – A New Look at Smartphones, Tablets and Even Smartwatches

This week, we’ll take a look at smartphones, tablets and smartwatches and the market opportunity that these consumer devices present for sapphire. Sapphire can be used in a number of ways in them ranging from LEDs for the backlighting display and LEDs for the camera flash to sapphire material for use camera lens covers and home button covers. There’s even speculation that they could be used for front cover plates in smartphones.

Recently, smartwatches and “wearables” have become “fashionable” so we’ll take a look at sapphire in smartwatches too. The infographic in this post points to the number of ways that sapphire could be used in smartphones and tablets.

Opportunities for Sapphire: Smartphones and Tablets

Opportunities for Sapphire: Smartphones and Tablets

Let’s take a closer look at the market for smartphones and tablets.  Backlighting has been a very fertile area for LEDs. The market penetration of LEDs in backlighting displays for mobile phones, tablets, LED camera flash and keyboards is nearly 100 percent. But, let’s look at the numbers.

First, 2013 was a groundbreaking year for smartphones. According to market research firm Gartner, smartphone sales surpassed feature phone sales for the first time with smartphones accounting for 53.6% of overall mobile phone sales for the year.  Overall, Gartner says that 968 million smartphone device units out of a total of 1.8 billion mobiles were sold in 2013. Given that there’s an opportunity to sell sapphire for multiple uses in each smart phone, that’s quite a bit of sapphire. And, even feature phones present an opportunity for sapphire in backlighting, camera flashes and camera lens covers.

In tablets, the opportunity for sapphire is in the same applications, but with a twist. Backlighting is a good opportunity with even more display real estate that larger tablet screens represent.  Many tablets also feature a front facing camera and a back facing camera, doubling the opportunity for camera flashes and protective camera lens covers. According to Gartner, worldwide sales of tablets to end users reached 195.4 million units in 2013. Again, that’s a good opportunity for sapphire.

Wearables like smartwatches are an emerging market and a new opportunity for sapphire. As a traditional cover for watches, sapphire is a natural cover for smartwatches as vendors like Samsung, Omate and the Wellograph Wellness Watch already use sapphire covers in their smart watches. JP Morgan estimates that the smartwatch market size could reach US$26 billion by 2018. This is up from less than US $1 billion in 2013. Once again, that’s a good opportunity for sapphire.

For Further Reading

Tech Crunch, Gartner: Smartphone Sales Finally Beat Out Dumb Phone Sales Globally In 2013, With 968M Units Sold, http://techcrunch.com/2014/02/13/smartphones-outsell-dumb-phones-globally/

Gartner, Gartner Says Worldwide Tablet Sales Grew 68 Percent in 2013, With Android Capturing 62 Percent of the Market,  http://www.gartner.com/newsroom/id/2674215

CNet, Wellograph’s sleek new Sapphire Wellness Watch sparkles with style at CES 2014 (hands-on)

http://reviews.cnet.com/watches-and-wrist-devices/sapphire-wellness-watch/4505-3512_7-35833913.html

The Smart Watch Review, Apple Might Have Big Plans for Sapphire and its iWatch, http://www.thesmartwatchreview.com/apple-might-have-big-plans-for-sapphire-and-its-iwatch/

JP Morgan, Smartwatch Market, https://markets.jpmorgan.com/research/email/-pefp7bj/GPS-1320515-0

LEDs and Location – A New Way to Shop

Location, location, location. Location-based applications have matured a great deal since early navigation devices like Garmin and Magellan GPSs.  Location-based applications are very popular in smart phones. Using the location-based applications, you can tell your friends where you are and can find the nearest coffee shop.  These applications typically use a GPS chip inside the phone or even location technology called U-TDOA (uplink time difference of arrival). These are the same location technologies used for e-911.

The next generation of location based applications are moving indoors. These new apps can bring all kinds of new uses to the typical smart phone. Because these applications are used inside, they can’t rely on GPS or U-TDOA because these technologies need line-of-sight where walls and other obstructions can limit their effectiveness. These next generation indoor location apps rely on new location technologies such as Near Field Communications (NFC), a new version of Bluetooth called Bluetooth Low Energy (BLE) beacon technology, RFID and even LEDs.

ABI Research predicts that the indoor location market will reach $4 billion US in 2018. Big companies are exploring the indoor location market.  Apple and eBay have announced that they’re going to use BLE iBeacon. Apple is actively looking to establish an iBeacon program that can leverage its installed base of iPhones and iTouch devices to provide mobile transactions and offers to retailers and their customers. Retailers such as Macy’s and American Eagle Outfitters are testing iBeacon.  Major League Baseball announced a new agreement to use iBeacon for the upcoming baseball season using Qualcomm hardware.

How do LEDs fit in? Several companies are looking to leverage light.  Philips is looking at one-way communication between networked LED-based luminaires and customers’ smartphones and a new system from ByteLight that uses a LED light fixture to communicate a unique identifier to individuals with smart phones using tiny pulses of light.

Philips recently shared a demo that uses a supermarket scenario using indoor location technology to guide a customer around a store to gather items for a recipe, and allows the store to send special coupons or offers to customers based on their location in the store.  The technology would operate based on the instantaneous response of LEDs in on-off cycles that could transmit data to the camera of a smartphone using light changes undetectable to humans in the store. The customer would need to download an app on their smart phone. Like the ByteLight application, the communication link from the LED luminaires to the smartphone would deliver location data and other offers.

Here’s a diagram from Philips that illustrates how their LED location application would work in a grocery store.

Philips Connected Retail Lighting System

Philips Connected Retail Lighting System

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For Further Reading

LEDsMagazine, Philips Lighting demonstrates LED-based indoor location detection, technology, http://www.ledsmagazine.com/articles/2014/02/philips-lighting-demonstrates-led-based-indoor-location-detection-technology.html

RFID Journal, Retailers Test ByteLight’s Light-Based Indoor Positioning Technology, http://www.rfidjournal.com/articles/view?11474

FierceMobileIT, Indoor location market to reach $4 billion in 2018, predicts ABI, http://www.fiercemobileit.com/story/indoor-location-market-reach-4-billion-2018-predicts-abi/2013-10-18#ixzz2v7TLbqKe

LED Lighting Adoption – Lessons Learned

Incandescent lighting ruled the world for more than a century, but times have changed as the world looks to energy efficient alternatives to the incandescent bulb. In the 1970s, compact fluorescent light bulbs (CFLs) came along as the new alternative light source. Market penetration for CFL bulbs never rose above 1% of all units in the first 20 years following market introduction.

In the US, the US Department of Energy joined together with retailers and the lighting manufacturers to encourage consumer adoption of energy-efficient lighting including LEDs and CFLs. There has been careful consideration not to repeat the mistakes experienced with CFLs that led to that very slow adoption rate.

We’ve spoken a lot about the EISA phase-out of incandescent bulbs in Clearlysapphire.com. US legislators imposed strict energy efficient guidelines impacting incandescent light bulbs in the Energy Independence and Security Act of 2007. In a rolling phase-out through 2014, manufacturers stopped making 100-W, 75-W, 60-W and 40-W incandescent light bulbs. But that legislation is only part of today’s story.

Before the phase-out legislation, The Energy Policy Act of 2005 established the Next Generation Lighting Initiative, directing the DOE to “support research, development, demonstration, and commercial application activities related to advanced solid‐state lighting technologies based on white light-emitting diodes.” This legislation was an important part in establishing the DOE’s leadership in the adoption of solid state lighting (SSL).

The US Department of Energy reviewed the CFL experience and developed a strategy for leading the industry and supporting their activities for SSL.  The DOE analyzed both CFL adoption and early SSL experiences since they’ve launched to determine a strategy for the initiative. You can find links to the reports below in Further Reading.

Some of the lessons learned were quite reasonable. First, coordination and collaboration between government and industry should take place at a national level. Secondly, they needed to establish standards and product testing for minimum performance and back-up of long-life claims with standard-based projections and/or guarantees.  Thirdly, they needed to introduce new lighting technology in applications where the benefits were clearly established before moving on to others. They also found they needed to respond to the market and resolve problems and issues quickly. Finally, they needed to know and acknowledge technology limitations, determine and address compatibility issues with conventional lighting, deal with technology failures aggressively, and not launch a new product until performance issues were ironed out.

The parties in the initiative analyzed LED technology itself and possible bumps in the road to mitigate for consumers. They knew that consumers would have to get used to new language of LEDs. For example, the different way of communicating light brightness in lumens rather than traditional watts might cause confusion. The DOE worked with manufacturers proactively to communicate the new language of LEDs through the introduction of new package labeling, LED Lighting Facts program. They also established CALiPER program, to test a wide array of new LED lighting products for the public interest using industry-approved metrics. With a myriad of new LED light bulb offerings, consumers can find LED light bulbs that are qualified using 20 standards and procedures by the familiar Energy Star program. These proactive efforts were designed to smooth the transition and advance consumer adoption.

How successful have these government and industry efforts been?

There has been a very big change in the installed base of light bulbs between 2010 and 2012.  This is mainly due to the government mandated light bulb phase-out. According to Navigant Research and the DOE, the installed base of incandescent A-type lamps (traditional light bulb shape) decreased from 65 percent to 55 percent, while CFLs increased from 34 percent in 2010 to 43 percent in 2012.  LED installations in A-type lamps remained at less than 1 percent in 2012.

But taking note of lessons learned, it was interesting to see increased adoption in applications where LEDs have clear benefits — directional lighting such as lighting used in recessed lighting. According to the DOE and Navigant, installations of directional LED lamps went from 0.1 million in 2009 to 11.4 million in 2012, with an estimated 4.6% of all directional sockets in 2012 using LEDs.

Adoption is looking up for other lighting applications. Analysts expect LED-based lighting to grow, and fast. According to research firm IHS, 2014 will be a big year for LED lamps, accounting for 32% of the entire global lamp revenue.

The biggest barrier to consumer adoption in traditional A-type lighting so far is price, but the prices are coming down to more palatable levels for consumers. You can read more about the adoption of LED-based general lighting and pricing in these previous posts, Tipping Point 2: Finally, A Sub $10 LED Light Bulb and Tipping Point: Earth Day, 100W Light Bulb Reprieve and Alexander Hamilton.

For Further Reading

DOE, Solid-State Lighting: Early Lessons Learned on the Way to Market, http://apps1.eere.energy.gov/buildings/publications/pdfs/ssl/ssl_lessons-learned_2014.pdf

DOE, Compact Fluorescent Lighting in America: Lessons Learned on the Way to Market, http://apps1.eere.energy.gov/buildings/publications/pdfs/ssl/cfl_lessons_learned_web.pdf

Navigant Research for DOE, Adoption of Light-Emitting Diodes in Common Lighting Applications, http://apps1.eere.energy.gov/buildings/publications/pdfs/ssl/led-adoption-report_2013.pdf

Consulting-Specifying Engineer, Report: Lighting manufacturing leaders to shift, http://www.csemag.com/single-article/report-lighting-manufacturing-leaders-to-shift/7932342ed0c1f2c636596e85aa29d99f.html