How does a nice handwriting-input software company get into a mess like this?

Hanvon Technology developed software for handwriting-input pen in 1998 and expanded to include the Hanvon Pen series, the Graphic Tablet series, the OCR series and Intelligent Telephone series.

The first company in the world to incorporate Chinese handwriting recognition technology into PDA and mobile phone devices, Hanvon now owns a manufacturing campus, four advanced design centers, and operates over 5800 sales channels across China and in 20 countries across world. Hanvon Technology Co., Ltd became a listed company in 2010.

For Europeans, Hanvon might look like a cross between the Belgian OCR company IRIS and the well-known Japanese graphics pad company Wacom. Except Hanvon has the giant China market as its home base-- a market that has plenty of natural barriers to discourage foreign competition let alone many political ones.

Sony Ericsson blames the recent Japan earthquake for its Q2 2011 losses, revealing results surprising analysts expecting a strong quarter-- Q2 2011 ends with net losses of €50m.

One has to recall income for Q1 2011 totals €11m, while Q2 2010's income totals €12m.

This quarter also sees decreases in shipments-- unit shipments for Q2 2011 amount to 7.6m, a -31% Y-o-Y decrease (and -6% sequential decrease). Sony explains such a decrease in volume as due to supply chain constraints caused by the earthquake, as well as an anticipated decline in feature phone shipments. 

The company says the supply chain disruptions caused by the earthquake cost it the loss of around 1.5m devices. 

Smartphones account for most of Sony Ericsson's output-- totally more than 70% of total sales (compared to 2010's 40%). 

It will also continue pushing the Xperia brand, with 8 models introduced this year, while estimating its Q2 20111 Android-based smartphone market share totals around 11% in volume and 11% in value. 

Go Sony Ericsson Reports Q2 2011 Results

Velocity Micro is the next company to fall foul of Microsoft's IP shakedown, following HTC and General Dynamics Itronix into signing a settlement for the use of unspecified mobile patents.

The Microsoft IP-using devices in question are Velocity's Android-based Cruz tablets-- and Velocity will pay the price through royalty payments.

Analysts believe HTC pays something around $5 for every Android device it sells-- windfalls dwarfing what Microsoft earns through Windows Phone-- and that Microsoft is looking at even higher fees.

Now one only wonders if Microsoft will continue continue tracking down other companies selling Android-based devices for IP infringement...

Go Microsoft and Velocity Micro Sign Patent Agreement

Go Microsoft Received 5 Times More Income From Android Than Windows Phone

According to DigiTimes unnamed tablet components suppliers say Amazon put orders for up to 2m touch panel displays-- suggesting Amazon will be shipping up to 1.2m tablets by September's end.

Such a shipment would make it Q3 2011's biggest non-iPad tablet supplier.

No confirmation comes from Amazon itself, which currently appears to be focusing on selling its Kindle eReaders.

Rumours suggest Amazon will have 2 tablet models-- code-named Coyote and Hollywood-- both carrying Nvidia processors (specifically the dual-core Tegra 2 for Coyote and the quad-core Kal-El for Hollywood).

Meanwhile other analysts suggest Amazon will be updating the Kindle with an LCD display and replacing its software with Google's Android.

Should such rumours prove true, Amazon will be entering a crowded arena-- even if Amazon does have one ace up its sleeve, to other vendors' detriment. That ace is, of course, its main business in online shopping, where it currently sells other manufacturers' devices.

Will Amazon drop other tablets from its website should "Coyote" and "Hollywood" prove to be true? Amazon.com doesn't carry any Kindle rivals, after all. Some manufacturers will have reason to feel a little betrayed in that case.

Go DigiTimes (subscription required)