Posts tagged 'China'

World’s First Firefox OS Smartphone Released In Spain

Though having Google’s Android and Apple’s IOS hitting the market with their name, quality, value and functionality, Telefonica has launched a new Firefox OS Smartphone in the market jointly with Mozilla and ZTE. Telephonica is Spain based telecommunication and broadband service provider in Europe, Latin America and Asia and 5th largest mobile network provider in the world; Mozilla, a open source project by Netscape Communications Corporation, launched the Mozilla Firefox browser and now developed Firefox OS for the Smartphone; ZTE Corporation, China based multinational telecommunication equipment and systems company, the 4th largest mobile manufacturer in the world, has developed this Smartphone’s design.

The above trio has launched world’s first Smartphone, ZTE Open, with Firefox Operating System in Spain for 69Euros(90Dollars) and soon be launched in Latin America.  As per the statement by Carlos Domingo, Chief Product Development, Telephonica, in one conference, this device would be mainly  be for youngsters and those who are new to use the Smartphones.

Equipped with a 3.5-inch & 480x320pixels touchscreen, includes a 3.2MP camera(back), 256MB RAM and 512MB flash memory enhanced with a 4GB MicroSD card that comes as part of the package.

The ZTE Open is fully integrated with Facebook and the Spain-based social network Tuenti and talks are on about incorporating the WhatsApp instant messaging service, Telefonica said.

Mozilla executives said the ZTE Open is the “first chapter” in what they expect to be a long project, one that is already attracting interest from many other telecommunications companies.

 

Excerpts – Techgig

July 3rd, 2013

Book Review : “India Inside : The Emerging Innovation Challenge to the West” by Nirmalya Kumar and Phanish Puranam

“India Inside : The Emerging Innovation Challenge to the West” is a new book authored by Nirmalya Kumar and Phanish Puranam, renowned professors at the elite London Business School. The book is published by Harvard Business Review Press and released in Nov 2011.

This book is about the “invisible” innovation which India today provides to a multitude of corporations and entities around the world. The book starts with questions like “Where are the Indian Googles, iPods and Viagras?” and “Can Indians innovate?”. Valid questions but which make slight of the fact that innovation is much more than consumer facing direct innovation. Indian ingenuity is enmeshed in so many products other multinationals make – likes of GE, Microsoft, IBM, AstraZeneca, Intel, Motorola and many others.

Globally Segmented Innovation :

As Western firms have outsourced large parts of the IT and research work to their Indian divisions and R&D labs, the skill profile of the Indian worker is increasing and firms are increasingly entrusting them with higher-end tasks. In this regard, the authors talk about the Skills Ladder concept – which says that when one creates an army of talent at the bottom of the product development pyramid, it is likely that innovation leaders emerge from this lot and remain in the geography where they are situated – as such, one can say that, thanks to Western outsourcing, a huge no of Indian engineers and innovators are being trained and are likely to boost the local innovation ecosystem via new entrepreneurial ventures or contributions to domestic economy.

In short, there is a talent shift to Asia from the Western hemisphere, which in turn will lead to accelerating growth and innovation in that part of the world.

Outsourced R&D :

For multinationals, Indian service providers like Wipro, Infosys, Tata and HCL are conducting outsourced R&D in labs all across India. Wipro pioneered the concept of outsourced R&D with it’s innovative Product Engineering Services division or PES starting way back in early 80s. Infosys products like Finacle and others like i-Flex have become global leaders in banking and finance. Outsourcing of R&D to India-based outfits creates talent pools in that part of the world and self-perpetuates further innovation and increased western investments.

Process Innovation – An Injection of Intelligence :

Indian call centers are often staffed with folks who are normally more qualified than a mundane call center job. This has caused the so called “injection of intelligence” into the mundane call center and BPO processes – processes which the Western world had written off as commoditized and boring. As a result, call center outsourcer 24/7 is injecting analytics-driven market intelligence into customer service calls and interactions – thereby increasing web / phone consumer loyalty and conversion rates. Higher qualified Indian talent is converting routine BPO processes into more strategic higher-value initiatives for western clients, thereby increasing ROI on outsourcing even more.

Management Innovation – The Global Delivery Model :

Infosys and other Indian IT firms have pioneered the global outsourcing and cost efficiencies which can be achieved in large projects. Saving costs and making the process faster, leaner and efficient is certainly innovation in it’s own right.

Visible Innovation – Frugal Engineering :

The emerging Asian middle class is known to demand and desire Western style products at cheaper cost. The Indian concept of “Jugaad” - or an ability to make do with less resources and still get things done, is now finding acceptance as a strategy in global Boardrooms. Tata Nano (and more recently Aakash tablet, I might add) are changing the debate of value vs cost. Developed markets are fascinated by Indian creations like Tata Nano and are studying such models closely to see how a quality mass market product can be developed at such a lower cost.

The authors also acknowledge the India’s innovation challenges eg slow bureaucracy, lack of infrastructure, lack of capital and population’s risk-averse nature. However, the Indian innovation train has started and few can turn the clock back now. As such, authors provide recommendations to both Indian and Western firms as to how to leverage or face the oncoming Indian innovation onslaught. We highly recommend this book to those who are interested in learning about the India’s growth and innovation story.

CellStrat Book Rating : **** (4 out of 5 stars)

December 1st, 2011

A tribute to the World Changer: Steven Paul Jobs

I’ve never worked at Apple.

I didn’t know what it was like to use Apple’s early products.

I didn’t own anything from Apple until late 2009 and that was a second hand iPod, which was gifted to my wife by a friend from US who had been after us to try Apple products. I still have it.

I wasn’t one of the first to buy a Mac and I still don’t own one today.

I just watched the 2007 Keynote (which is an awesome video and I could not stop myself from watching all parts from that keynote), I was awestruck by his command over the audience and his content. His eyes had an intensity, softened only by the pride and happiness in the lines surrounding them as he unveiled his dearest baby, the iPhone. It was also amusing how he made sweeping statements with absolutely no sense of irony or apology. “(The iPod) didn’t just change the way we listened to music, it changed the entire music industry.” He meant it. He believed it. You don’t get to such blatant confidence without conviction in your work. That’s a thing to be learnt from him. It’s easy to sell your work if you believe in it.

Steven P. Jobs, the Apple Inc. chairman and co-founder who pioneered the personal-computer industry and changed the way people think about technology, died Wednesday at the age of 56.

His family, in a statement released by Apple, said Mr. Jobs “died peacefully today surrounded by his family.”

The company didn’t specify the cause of death. Mr. Jobs had battled pancreatic cancer and several years ago received a liver transplant. In August, Mr. Jobs stepped down as chief executive, handing the reins to longtime deputy Tim Cook.

President Obama said that “the world has lost a visionary,” noting that “there may be no greater tribute to Steve’s success than the fact that much of the world learned of his passing on a device he invented. Tributes also came in from Facebook creator and chief executive Mark Zuckerberg, Google’s co-founder Larry Page, Nokia’s CEO Stephen Elop and China Mobile’s Chairman Wang Jianzhou, among many others. During his more than three-decade career, Mr. Jobs transformed Silicon Valley as he helped turn the once-sleepy expanse of fruit orchards into the technology industry’s innovation center. In addition to laying the groundwork for the industry alongside others like Microsoft Corp. co-founder Bill Gates, Mr. Jobs proved the appeal of well-designed products over the power of technology itself and transformed the way people interact with technology.

The most productive chapter in Mr. Jobs’s career occurred near the end of his life, when a nearly unbroken string of successful products like the iPod, iPhone and iPad changed the PC, electronics and digital-media industries. The way he marketed and sold those products through savvy advertising campaigns and Apple’s retail stores helped turn the company into a pop-culture phenomenon.

Jobs co-founded Apple in 1976 but was ousted from the firm following a board power struggle in 1984. His return to the helm in 1997 prompted Apple’s revival via a series of ground-breaking products; first via the iMac (1999), then later with the iPod (2001), iPhone (2007) and iPad (2010). At the beginning of that phase, Mr. Jobs described his philosophy as trying to make products that were at “the intersection of art and technology.” In doing so, he turned Apple into the world’s most valuable company with a market value of $350 billion.

October 7th, 2011

Why Tablets may kill the Laptop market but Won’t kill it

Lately predictions are looming across the world these days that the emergence of the tablet will most certainly kill off the laptop.  If you have a smartphone and tablet, that’s all you need.  Well, I personally feel that’s hogwash.  Here’s why:

The historical development of mobile has gone from the laptop to the smartphone and, more recently, to the tablet. Laptops are extended form of desktops computing systems in order to make them mobile. By that I mean that you take the laptop from one place to another where you can use it.  Laptops can do everything, but in mobile the primary thing they do is ‘create’ content.  They are great for content creation because of the large screen, keyboard, web browser, apps like iTunes and Skype, and the OS & applications that support content creation from Microsoft Office (Word, PowerPoint, Excel and Outlook).

Smartphones are great for talking and messaging. You carry your smartphone around with you all day.  You make a call.  You check email.  You do little ‘titbits’ of things like checking an email, checking postings to Facebook, sending a text message.  The keyboard is typically on the screen (iPhone, some Android devices) but others have small keyboards that provide physical feedback mechanism.  Smartphones are not meant to create a lot of content but, rather, to review what others have created and then make a quick comment or text.

Tablets, on the other hand, have the large screen like a laptop but are portable enough to carry around all day like a smartphone. They contain a mobile OS and user interface so the experience is more like a smartphone rather than a laptop.  Tablets are great for reviewing and responding. It’s more comfortable typing on a keyboard that’s on a large 10” display. You can turn it sideways to more easily review web pages and watch movies and TV shows.

Thus, in tablets, you can more easily review information and show it to others.  Whereas laptops are often frowned upon for use in most upscale restaurants (tolerance is, however, growing), it’s perfectly acceptable and deemed cool to show someone something like photos or presentations using a tablet in such situations.

Here’s a comparison of the relative strength of each kind of major application utilized in laptops, tablets and smartphones.  Each platform is excellent for different types of mobile tasks.

Comparison of Laptop, Tablet & Smartphone features

The use of portable products is all about the user experience. Laptops are better for content creation, while tablets are better for reviewing and smart phones are great for talking and messaging.  I believe that these three mobile device categories will be with us for a long time.

All said and done, I also feel that in short term, at least in India, tablets will kill the laptops market to a great extent. Why???

This will happen primarily in education hubs of India in large colleges and schools of high repute. Laptops have been consumed by these institutions in large numbers every year with every fresh batch of students. It’s been a fashion till date for these institutions to give laptops to new students. This also acts like an attraction for new students to take admissions in these colleges while institutions have been charging huge sums of money counting these and other facilities as advantage points for attracting students. However, now with entrance of tablets in the market, more and more colleges are opting to buy tablets in bulk instead of laptops earlier. I even got inquiries from some for even getting them white labled with their own brand names and giving those to students while they continue to charge almost same amount from students as earlier.

Most popular brands like RIM, Samsung, Dell, HCL & many others have started attempting to grab market share for their respective tablets after iPad has come into play. We have also come to know that some popular IT brands are cashing on this situation and have imported more than 2 million white labeled tablets out of China and selling them almost at triple the price to these large institutions at less than 1/3rd. the price of laptops to be given to students…

Thus, I feel in short term, laptop markets will get affected quite a bit while it may rebound when people start understanding the features and opt for laptops again as in the end tablets are more of reviewing devices then for creating content which is mostly desired of students in their programs…

(Excerpts from an article by Gerry Purdy)

August 4th, 2011

Event Roundup from Mobile Apps Conclave, Bangalore

Mobile Apps Conclave – the conference organized by CellStrat concluded successfully on 29th April, ‘11 at The Chancery Pavilion Hotel, Bangalore. The Conference saw tremendous interest with a large no of audience from all over India. The star-studded speaker lineup and intuitive content on Mobile Apps and Web fueled interest in this event. The theme for this event was : “The Mobile Web Disruption – Life, Media and Business get Appified”.

In addition to Bangalore, audience came from cities like Delhi, Mumbai, Hyderabad, Kolkata, Ahmedabad and Chennai, both from brands and senior management of companies as well as the developer community.

More than 200 blue-chip audience participated in this event on the hottest topic in modern times – Mobile Apps, App Stores and the Mobile Internet. Most brands, mobile device manufacturers, app store and app development firms were present to learn about the Business of Mobile Apps and Web.

Details of the event and photographs are available at http://www.mobileappsconclave.com.

Event Brief :
The Mobile Web – the new name of Growth around the world. Mobile Internet Tsunami – as many refer to it.

Mobile is the industry of this decade. Mobile has taken world by storm. The feature phone growth is fast evolving into smartphone growth driven by the emergence and popularity of The Mobile Web and those tiny ubiquitous Apps – hundreds of thousands of them literally. Mobile Web is upending so many industries, it is breathtaking to say the least. Many of these businesses are succumbing to the trend which the venerable firm Apple started – businesses like news and media, advertising, gaming, productivity, publishing, telecom, entertainment, commerce, financial services or healthcare..the list goes on and on. Whoever you are, wherever you are – either have an App and Mobile Media strategy or be prepared to loose substantial traction in the marketplace – because, indeed, your customers are App savvy even if you are not.

You are on the road and want to check nearby promotions, there are many apps for that; you want to track your supply chain, many apps for that too; track Social Network updates; many apps there as well; there is even an app for Confessing to God. Apps are orchestrating the growth in intelligent smartphones; next playground is Tablet followed by Computers. Are you ready for the brave New World of Mobile and Mobile Tablets ? Are you ready for the Mobile Web revolution ?

Conference Sessions :
Here are some notes from the Keynotes and Panels that transpired at this event.

In the morning session, there was an intuitive keynote by Pratapa Bernard, Vice President and Head – COE – Data Services (Emerging Markets) at Vodafone. He addressed the impact of the Mobile Web and Apps on the modern consumer and businesses. He mentioned the imperative need to focus on user experience and not technology itself citing the example of Apple etc. He went on to say that 80% of internet access in India in 2015 will be from mobile devices.

Next came a panel on “Mobile Apps go mainstream – Content, Engagement and Lifestyle on Mobile Apps”. This panel discussed the Mobile App revolution and how Content and Entertainment is being delivered via Apps. The panel speakers included Rajiv Kumar (CEO – RockeTalk), Deepak Swamy (Head – Flypp App Store, Infosys), Sanjay Bhasin (VP-Getit Info Services), Vikram Tanna (VP – STAR Digital), Rajesh Reddy (CEO, July Systems) and Narasimha Suresh (CEO – TELiBrahma). This panel focussed on App monetization and how developers are finding it a challenge to monetize their apps. This panel also discussed the need to “Indianize” the Western business models, cost structures as well as offerings to make them work in India. On HTML5, the panel members said this new standard will be big against Mobile apps but the “when” is not clear yet.

After the first panel, there was an interesting keynote by InMobi (top Mobile Advertising firm) executive Sridhar Ranganathan (VP-Product Management) on how market pressures are forcing firms like InMobi to push the boundaries of creativity with immersive advertising and the need to think of Mobile Ads like mini-apps. He mentioned the need to un-learn the PC and focus on Mobile as a separate experience.

In the afternoon session, there was an innovative keynote by Sunny Rao, MD – India and APAC of Nuance Communications. Sunny spoke about some of the innovations in Mobile Web world surrounding Speech Technology, Voice-based Social Networking and automotive vehicles as mobile channels. Sunny’s keynote was followed by an interesting panel on innovations in Mobile Apps and Mobile Web. This panel had some true Mobile innovators in Amiya Pathak of ZipDial, Kalyan Manyam of MojoStreet, Indus Khaitan of Bitzer Mobile and Soumitra Sharma of IDG Ventures. This panel discussed specialized vertical Apps which are popping up in industries like Payments and Commerce, Social Gaming, Healthcare and Education.

The Mobile Innovations panel was followed by a Startup showcase where Sriram Mohan, Associate Editor at YourStory.in helped introduce some startups which are creating innovative business models in the Mobile App ecosystem.

The last (but not the least) panel was on Emerging Devices and Tablets. Advent of Apple iPad has opened a whole new world of possibilities and truly heralds a world of post-PC era. Prabha Aithal, CTO at CanvasM moderated a panel of speakers which included Alap Ghosh of Mobango (App Store), Pradeep Rao of Research in Motion, Ashish Gupta of Helion Ventures and Dr Sharad Jaiswal of Alcatel-Lucent Bell Labs. This panel discussed the impact that the tablet and emerging devices are having on the ecosystem. Emerging Devices is a hot new area and is seeing digitization of content at a blistering pace from a variety of industry verticals like publishing, entertainment, retail, media etc..

Conference Partners :
Overall, it was an action-packed conference with active participation from speakers and audience. Partners included Presentation Sharing Partner authorSTREAM on which the presentations by CellStrat, event speakers, exhibitors and partners can be found. The Mobile App Partner, Hazel Media provided an event app for this conference. Whereas the Mobility Partner, MobiVite published a Mobile WAP site for the same.

InMobi was the Platinum Sponsor for this event. AgileCO was the Gold Sponsor. Other supporters included partners like MOMO Bangalore, The Morpheus and Indian Angel Network (IAN). Media Partners include the online media firm YourStory.in and TelecomLead.

YourStory.in was a Premium Partner for this event and it provided online media visibility as well as Anchor support for the event.

Mobile Solutions Expo :
This conference also saw an interesting exhibition on Mobile Solutions where some innovative app companies exhibited their apps and solutions. This Expo dazzled the audience with some interesting apps and solutions in the Mobile space. The exhibitors included WINIT, Nanostuffs, RockeTalk, Bitstream, Softtrends, MobiVite and some others.

For photos and other details from the event, check the event website at : http://www.mobileappsconclave.com.

Shyam Kamadolli (Director – Fidelity Growth Partners India) was one of the attendees and has some intuitive notes from this conference on his blog : http://skamadolli.wordpress.com/2011/04/29/india-mobile-apps/.

May 16th, 2011

Local Search and Coupons explode : the rise of Groupon

Much is being talked about the rise of Groupon, LivingSocial and other such Daily Deal / Group Shopping outfits which have emerged on the scene within the last 1 to 2 years. Many stats claim that Groupon may be the fastest growing company in history. What is the big deal about Local Search and why is it so hot ? In this article, we examine this trend and the factors driving its explosive growth.

Groupon is changing the face of Commerce

Groupon, LivingSocial and many other like firms have figured out the secret sauce in Group Shopping experience. Group Shopping is not new or innovative in any fashion. Many outfits tried this in the prior dot com craze but it did not take off. Why now ? It’s the rise of Social Networks and Mobile Connectivity – something that we often refer to as “Mobile Social” or “Social Mobile”. Between the Facebooks and Twitters of the world and breakneck growth of Mobile phones, we are looking at Group Shopping proliferation like never before. The basic idea of Group Shopping is obviously that such sites promise to increase the foot traffic to local retailers and merchants by offering daily deals to scores of public. By spreading word about such deals using Mobile Apps, Social Networks and general Buzz Marketing, such sites have grown rapidly.

Groupon is said to have a $25 billion valuation already. Groupon is, of course, rumored to be working on an IPO at this valuation. Groupon had, earlier, rebuffed a $6 billion offer of acquistion from Google!

Late last year, LivingSocial accepted a $175 million investment from Amazon. Certainly, the big internet firms are watching this space with keen interest and would like to take part. Facebook, not to be left behind in this hot area, is about to launch its daily deals service in some cities across US.

The business model deployed by firms like Groupon and LivingSocial is to hire local sales staff in all major metropolitan areas and send coupons for local retailers to audience in the respective cities. With intuitive Mobile Apps on iPhone, Android and other platforms, sending such deals has become easier than ever. So we have the business model and we have the distribution via Mobile phones and emails – in sum total, we have the secret sauce of Group Shopping and modern commerce.

Group Shopping getting crowded

The problem with such Group shopping experience is that there is low barrier to entry. All it takes is a big field sales force in major cities, cool mobile apps and websites and word of mouth marketing. As a result one sees such models cropping up daily, almost at the rate of one new firm per day. Who will win this area eventually ? So far Groupon is winning it and so is LivingSocial. Others are either not that well known or are too new to make a dent. That is why Google tried to buy out Groupon rather than invest in its own model ( After the Groupon rebuff though, Google decided to launch its own daily deals business under the brand Google Offers ).

While others are new to the market or not that well known, eventually this field will be dominated by firms which can continue to grow rapidly and build out the sales capabilities in cities nationwide. Ultimately, this will be a business about economies of scale. Likely winners include Groupon, LivingSocial (with its Amazon backing), Facebook and Google. Most other firms will not be able to reach the economies of scale needed to succeed in this area.

Not all is hunky-dory in Group Shopping

Collective buying is touted as Win-Win for all. There is nothing farther from the truth. Many retail partners of Groupon and such sites have complained of squeezed profit margins, shift in customer buying patterns and constant bickering with Groupon sales teams who are trying to sell them on deals and driving down prices. Consumers have often found, much to their chagrin, that prices offered on Group Shopping sites, were higher than what they would get otherwise. Moreover, often times such sites highlight discounts that customers can get any way through other means.

The retailers are becoming savvy on Groupon and are requiring a lot of fine print and exclusions on Group deals, things which consumers usually miss why buying such deals and tend to suffer later. In some cases, consumers who bought these deals have found that there are exclusion days or spa appointments are sold out for a long time. This area is getting messy for sure, where all stakeholders – daily deal sites, retailers and consumers are playing the negotiation ball harder and harder.

Group Shopping craze comes to India

After seeing the breakneck growth of Groupon, firms in India and China were quick to copy the model. India has seen dozens of such sites crop up – prominent among these are SnapDeal, KhojGuru, SoSasta (acquired by Groupon), BuzzInTown etc. Groupon did not waste time in expanding internationally – in China, it launched GaoPeng.com in partnership with Alibaba founder Jack Ma. In India, Groupon scooped up local firm SoSasta.com.  “Collective buying is in its infancy in India, Israel and South Africa and we see strong potential,” said Groupon’s president and COO Rob Solomon, “Groupon is shaping the way local merchants market themselves in every corner of the world.”

But growth in India is not a cakewalk and differs vastly from that seen in the West. India has less than 10% internet penetration (broadband penetration being around 1%) and less than 10% smartphone penetration – both of which are the primary drivers of success for firms like Groupon in the west. In India, commerce is dominated by the local retailers and merchants who control more than 90% of the shopping market share. Groupon / SoSasta are using India-specific models like variations of Cash-on-delivery (COD) where cash can be picked from homes for deals purchased. Moreover, the margins in India are much smaller than those in the West for Group Shopping firms. Also India already counts more than a dozen such outfits (or similar to a large extent), so competition is already intense for what is still a small market for Group Shopping.

Firms like SnapDeal have become popular in India touting vacation packages, spa experiences and high-end fashion products. Bottomline is that, in India, group shopping has still some ways to go before it becomes a substantial revenue opportunity. Firms which can last and build scale for a long time in India will ultimately be the ones which win. The usual winners from the west like Groupon, Facebook and Google will likely do well in India over time as these firms have the heft to ride out slow growth typical in markets like India.

Daily Deal innovations

Group Shopping is about to enter Phase 2. Groupon is fervently preparing for its most ambitious venture yet: the launch of a new mobile application that the company hopes will change when and how society chooses to eat, shop and play. Groupon is about to launch an app called Groupon Now which will have just two functions : “I’m hungry” and “I’m bored” – on clicking any of these, the user will be presented offers for nearby cuisines or entertainment experiences as the case may be. By simplifying the user experience in this intuitive way, Groupon aims to capture the Commerce market even further – this will likely solve the problem of perishable food in restaurants or empty seats at a show – wherein the merchant publishes last minute offers on Groupon Now. It is foreseeable that these two ideas will become standard buttons on some smartphones of the future (just like Facebook has become on some phones). It won’t be long until we find out if Groupon Now is the future of local commerce; the mobile app launches in April.

LivingSocial, on it’s part, has an option where if a user gets three friends to buy the deal, the original user gets the deal free – this is about reference shopping. The Collective Buying area will continue to see experimentation and new players for now, or at least until those lofty market valuation increases start to stabilize.

March 30th, 2011

“Year of the Tablet” – notes from Wireless Technology Forum (Atlanta) session on Tablets

(from our Atlanta desk)

It is commonly said that this is the “Year of the Tablet“. Certainly, with Apple iPad, Samsung Galaxy Tab, Motorola Xoom and dozens of other tablets and eReaders being introduced in the marketplace, everybody is talking about the “post-PC” era and the impact of tablets on consumers and businesses. Tablets are causing upheavals in the Publishing and Media industries with most major Newspapers and Magazines plotting a Tablet strategy for their periodicals. Netflix and other Streaming Entertainment providers are booming due to the surge in Tablet access subscriptions. Book Publishers are digitizing their books at an increasingly rapid pace expecting a shift away from Printed Books to Tablet or eReaders. 80% of Fortune 100 companies in the United States are trialing iPad for their Corporate employees. Laptops which were hyper-growth computers for the first decade of this century are making way for the Invasion of the Tablets.

Our analyst in Atlanta attended an intuitive session on Tablet computing at the Wireless Technology Forum, Atlanta on March 17th, 2011. Here are the notes from this session :

Speakers :

Mike Lupo, Sr Director – Digital Products, The Atlanta Journal-Constitution (AJC)
Karen Truitt, Director – Mobile Devices, Intel
Chuck Rainbow, Technical Manager – Tablets, Research in Motion
Jim Dudenhoefer, Manager – WebOS, HP Palm
Moderator : Dr. Phil Hendrix, Director, Institute of Mobile Markets Research (IMMR), Atlanta

 

A great cast of speakers from top contenders in the Tablet space (the 800-Pound Gorilla, ie Apple, was missing, so was Google). This session focused on the tablet form factor, the applications that will drive adoption and the business models needed to support this new networking paradigm.

(All data below refers to USA Tablet Market)

Dr Phil : Tablets have almost 5 to 7% penetration right now – it is currently one of the fastest growing Consumer Electronics products.

IMMR (Dr Phil’s organization) recently concluded a survey on the Tablet ecosystem. On the question of “Familiarity with Tablets”, here are the stats :

  • On the question of “Familiarity with Tablets” :- 38% audience – somewhat familiar; 26% – very familiar; 35% – not familiar
  • Smartphone familiarity is higher than feature phones in households.
  • 4 in 10 people are interested in purchasing a tablet for someone in the household. Once the tablet comes into the household, it tends to get shared. Over time, some households may become multi-tablet households.
  • Lower prices will unlock demand. $500 is the breaking point for most folks when they get discouraged from spending on tablets. iPad is at a higher price point but has still sold like hotcake – this is due to Early adopters, who are buying high end tablets today. But significant opportunity exists for cheaper tablets below the $500 threshold.
  • Preferred Tablet OS :- Apple iOS – 58%, Windows OS – 36%, Android OS – 35%, BlackBerry – 13%, HP Palm – 9%. Interestingly, Windows OS beat out Android slightly.

Mike (AJC) : AJC Newspaper has just developed its iPad App and it is currently in Beta. AJC also has an iPhone/iOS App called AJC Digest which is available on App Store today.

Karen – Intel, which is a strong leader in the PC microprocessor industry so far, is looking to expand into tablet microprocessors, chips inside cars, etc.

Jim – HP had acquired Palm recently and HP plans to deploy the Palm WebOS in many of its tablet devices over the years.

Chuck - RIM is about to release its Tablet play titled “Playbook”. There is much excitement within RIM with this upcoming launch.

Dr Phil - Why now for tablets ?

Karen - Apple has created the game-changing device in iPad. Apple is a master of simple products that work well. They made the Mobile Device, App and App Delivery ecosystem simple enough to allow for a mass market adoption.

Chuck – Tablets are now because chip processing and battery power has reached a point where these devices are possible (our take on this : RIM won’t admit to Apple’s role in opening this market :). These devices are now feasible. We are reaching an inflection point where tablets can substitute for laptops, devices which are anyway more difficult to lug around. People are not getting acclimatized to these devices.

Jim- Consumers today demand anywhere access to content and data. Tablets are just another end point in this evolution. It’s about data access – moving it to the cloud and the desire to access it from anywhere. Phone screen is too small to allow an optimal experience for this. Jim also noted that they are not concerned about Apple’s dominance so far. Jim has a great point of view that, if at all, Apple has been a positive contributor in creating a huge new market for all device makers to play in. Jim said market is huge for many to thrive. This is a market where all boats can and will rise. (Good point)

Mike - In an average American home, people think of tablets as lean back experience whereas PC is work – so tablets make sense now for AJC. Newspaper is about relaxing and consuming the news. So it makes sense for AJC to work in tablet space.

Dr Phil – The 800-pound gorilla (Apple-who else) is not in this session. Where is the gap in Apple’s tablet strategy which others could potentially exploit ?

Karen- Apple has created the benchmark. Everybody else is trying to catch up to that. Android Honeycomb from Google is an attempt to catch up to the iPad benchmark. However the user experience of Android still has to mature for it to be a strong contender. AS to Apple’s weak points, Flash is certainly one – a blatant omission from the likes of Apple. (Karen admitted, however, that Apple does not consider lack of Flash in iOS devices as a weak point).

Chuck- Apple is weak on security. There is a security breach every 4 hours in Apple iOS environment. RIM / BlackBerry is known for security (note that BlackBerry is still dominant smartphone in the Corporate world). Mobile Device security is critical area – virus maker McAfee has smartphone security software today. Apple does even acknowledge the security issue in its iOS environment. Chuck said that until something goes wrong, people don’t take notice. Consumers will start getting concerned when they loose credit cards etc in Apple environment (CellStrat note : Note that Mobile Payments is about to become a big area and here security is of paramount importance).

Jim - Apple is consumer-focused firm. There is lot of opportunity in Enterprise and niche verticals (where the field is still open for all) in addition to the huge consumer opportunity.

Dr Phil : Avg selling price in 18 months?

Mike – 350 or 300 dollar will be great.

Dr Phil - Newspaper in Canada is giving away iPads if folks buy newspaper subscriptions. Will Atlanta Journal Constitution adopt this approach ?

Mike (with a chuckle) – No (resoundingly!)

Karen - Intel has created  tablets for healthcare verticals. Businesses will want ruggedized versions of tablets (a delicate iPad device will not work in many industries) – these devices may get dropped and used in rough conditions in various industries.

Dr Phil – Amazon (Kindle) and Barnes & Nobile (Nook) eReaders will have more and more of tablet functions over time as the boundaries between eReaders and tablets will become indistinguishable. Printed Books may become redundant. Tablets will take over though it will take some time.

Q/A :

Ques : Will HTML5 replace Flash?

Dr Phil - Depends on how quickly content makers adapt.

Ques : Where is the money?

Karen – Apple is making money and also App developers. Carriers are making money also because of rapid growth in Data plans.

Jim- Dynamics of the industry is changing. It is still wide open to pin down the business model. Revenue Models are evolving still.

Chuck- When the PC came around, money was in hardware sales. Then, software became more important and apps like Microsoft Office made money. A similar ecosystem will evolve in Mobile Devices (implying mobile device hardware will make money followed by software over longer term).

Ques : What about accessories business ? The new Apple Smart Covers for iPad 2’s is all about margins (for Apple). Will USB attachments and such accessories be a lucrative area ?

Chuck - Ultimately Bluetooth will be dominant. Apple model of side-loading will be replaced by Cloud services. (Chuck said that in spite of this, Blackberry Playbook will have USB and HDMI port to cover all bases).

Ques : HP Palm strategy to win over developers given Apple’s popularity in Developer ecosystem (50,000 Apps already available customized to Apple iPad and HP Palm has hardly any, so far) ? After all Developers make or break Mobile platforms. Also, Apple deducts a large chuck (30%) from Developer App revenue as commission.

Jim - HP talked to a lot of developers and they are struggling on revenue generation with the Apple App Store or even the Android Store. Certainly there is room for developer innovation here in terms of Business model which helps them.
HP’s strategy will be to be as open as possible (Open Mobile environment) – ultimately this will help Developers. Eg Kindle Book Store will be available on HP Palm – this means that HP Palm Tablet will have 800,000 Kindle Books available from the get go. Also, HP will offer both models in its App ecosystem – the App store approach for mass market as well as Private distribution for corporations.

Chuck – Even though Apple iPad has 50,000 custom Apps, most are trivial (he referenced iFart apps on Apple Store:). Average Usage per app among the 50K apps (on iPad App Store) is less than one day. RIM / Blackberry has much higher average usage of its mobile apps. (our take : Good point but can one discount the mass Developer and Consumer Crowd running after Apple ?)

Ques : On Tablets replacing PCs ?

Karen - Tablet is a consumption device. It will do well but won’t replace PCs/laptops. PCs will always be ahead in graphics and processing power.  So tablet will not replace PCs/laptops that fast (our take: they better not – else Intel’s primary business is in jeopardy :) 

Overall a great session on Tablets. Kudos to the folks at Wireless Technology Forum (Bob, Steve, Maury, Scott, John, Ed and others) for organizing this event.

March 18th, 2011

Does Mobile Web fit your Integrated Media Strategy ?

Mobile Apps and Web have taken the world by storm. Certainly, Apple deserves credit for orchestrating the Mobile Web experience when it created the iPhone and its App Store. In the process, Apple unleashed the creative energy of hundreds of thousands of Mobile developers worldwide. As of last count, Apple App Store counts 350,000 Apps in the store. With the launch of the iPad tablet, Apple popularized the Tablet computer category and now lot of developers are developing Apps for the Tablet version. Tablet has started what most refer to as the post-PC era. Certainly firms like Microsoft, HP and Intel are in lot of trouble as many consumers and businesses are going the Tablet way instead of upgrading or buying regular PCs and laptops. Now Apple is trying to bring the App experience with its launch of the MAC App Store.

Mobile Web is the latest and greatest Media channel today. It is a most apt media channel for a variety of reasons which we will explain a little later in this post.

Are the various Media firms and Brand Marketers prepared to adjust to this titanic shift of Mobile-based Media ? Do Mobile Apps and Web even belong in a firm’s Integrated Media portfolio ? We will attempt to answer these questions below.

Today media consists of various channels :

Media Channels

 How does Mobile Web fit in this scheme ? The schematic below elaborates the various Digital and Mobile Advertising formats :

Digital Media Channels 

 Consider this (taking Indian context here) :

  • There are 770 million Mobile Subscriptions today (out of a total population of 1.2 billion people) – granted only 550 million are Active Mobile Subscribers : still almost 45% of Indian population are active Mobile Subscribers
  • India has less than 10% internet penetration
  • Mobile is the first and only communications tool for most Rural and Semi-Urban Audience in India
  • Mobile is personal, has context, is location-aware and is always ON
  • Admittedly 90% of Indian mobile market is comprised of feature phones, leading to SMS as the dominant marketing channel in India. But the fastest growth rate is now seen in Smartphone uptake – with acceleration in sales of cheaper smartphones from the likes of MicroMax, Lava etc in addition to established Brands like Nokia, Samsung etc. Mobile Web is now proliferating throughout the Indian consumer class much more rapidly than the feature phone growth.
  • The 3G launches this year will only accelerate the move to Broadband Mobile Services (think Mobile Web with much superior user experience and faster speeds)
  • The post-PC era may have started with Tablets taking over the role of laptops and computers. Many leading businesses and business execs are using tablets for business travel instead of their laptops now.
  • Print Media and Book Publishers are rapidly shifting en masse to Mobile Apps and Mobile eReaders as the delivery channel.
  • People are increasingly consuming media, content and advertising on Mobile phones and tablets.

Given the above advantages – Mobile can be a top Media and Marketing Channel for any Agency or Marketer today in India, much better than the Internet at least.

Now how many Brands and Media Agencies in India have actually integrated Mobile in their portfolio ? Our research indicates that most Media Agencies and Brands in India are yet to include Mobile as a captive Media channel (more on this in our upcoming Research Report : “Mobile Apps Innovation Report for India“. Contact us for details). Though many firms have tried the SMS and VAS marketing route in India, the future now lies in capturing the Mobile Web and Mobile App Media market which is developing rapidly in India.

Our upcoming conference on Mobile Apps (April 29th) – the “Mobile Apps Conclave – Bangalore” will address the entire gamut of topics on Mobile Web and Mobile Apps. Do not forget to register – there are some early registration promotions going on right now.

March 7th, 2011

Samsung’s Technology@Home workshop

Generally wireless but some times entertainment technology also fascinates me. Some years back, I used to see my cousin who used to bring any and all kinds of toys (how so ever technology heavy they might have been) for his son. His son will showoff his new PSP and small electronic bikes to all in his circle of friends…Some of them used to be latest and costliest in the market and I just used to wonder at times if this is the right age for kids to have those kinds of tech-heavy gadgets.

Then some years back, I stayed in China for about an year and was again exposed to all kinds of technology gadgets be it for children or for adults. Most Indians visiting China for business or pleasure used to take flat panel digital TVs back with them.

Just last Saturday I got to attend a Technology @ Home workshop organised by Samsung in a coffee shop named Chocola in popular Khan Market of South Delhi. Other attendees inluded 20+ bloggers including Mr. Madhavan Narayanan and a handful of other guests.

There I met Mr. Kishore Bhargav, a technology consultant regularly sought by  NDTV, BBC and other media for his expert views on technology issues. Also met India’s leading interior designer Rekha Nambiar.

Mr. Kishore elaborated on how he consumes media for entertainment. He told the audience that he has more then nine wireless gadgets in his home and how all are connected to a single repository in his study where he store tons of movies and music. 

Samsung team demonstrated their latest 2.99cm, 3rd. generation LCD TV. With most digital devices used for entertainment@home having ports like HDMI and USB along with WiFi in many cases, the idea is to build, organize and manage a single repository of media – be it music, movies or pictures and stream it across devices within the periphery of your home. In case you can understand what a static IP is, and can manage a fast enough Internet connection, you can have the privilege of running a media server too! He said, WiFi is the word and seamless connectivity is the need of the hour. He also mentioned that he wishes and some times able to access music on his repository at home while roaming elsewhere in the world. Now that’s entertainment 2.0.

After a long time, I was hearing about technology in an entertaining fashion and thus this post here, just as a small break from wireless.

Look forward to more such events in Delhi from blogworks.

January 11th, 2010

Key findings out of Morgan Stanley’s mobile web report

  • Morgan Stanley made the point that current mobile phones reflect a new generation of computing, similar to transitions in computing in the past. Morgan Stanely points out that with each cycle, the total reach of computing had grown by a factor of 10. So the mainframe based computing world reached about 10 million, the desktop PC world passed 100 million users before the internet PC came along, which passed 1 billion users, but the mobile internet is headed to pass 10 billion users. Great pattern in this growth.
  • Morgan Stanley pointed out that the modern smartphone of today is as powerful as a desktop of 8 years ago.
  • Acceleration in mobile is catching up on the legacy PC world, is also pointed out by Morgan Stanley, and they use the measure of mobile internet traffic vs PC based internet traffic, which lags by 9 years now, but is closing.
  • Morgan Stanley says that at least in four areas, the smartphone is better than the PC, to consume internet type content including email, VoIP/voice calls (like Skype), social networking, and news.
  • The iPhone and iPod Touch are growing to become the second most widely used portable gaming platform – yes, overtaking the Playstation Portable (PSP) and now only trailling Nintendo. Clearly one of the main uses of the iPhone is gaming (Morgan Stanley also show that most popular paid content at the iPhone is games related).
  • Blackberry has over 40% of the global enterprise market share of smartphones. The market share of iPhones and Android phones in the enterprise space is totally negligible.
  • Total (fixed) internet content revenues of 91 Billion dollars (this number excludes the broadband and dial up monthly fees), 5% was all that was contributed by the content revenues for sales of digital content, such as music, gaming, news etc. That is 4.5B dollars in absolute numbers. Compare that with the mobile internet, where content revenues were worth 37 Billion dollars, and out of that, digital content formed 54% or 20 Billion dollars. Mobile today delivers 4 times more revenues than the fixed internet. In other words…out of almost 25 Billion dollars in total digital content incomes delivered online, over 80% is earned through the mobile phone.
  • One interesting data point that comes out of Morgan Stanley report is that out of the total global SMS traffic, 57% is generated in the Emerging World. For MMS traffic, the number is even more drastic – 80% is generated in the Emerging World.

             In China already today, the newspaper industry has innovated in creating SMS and MMS versions of paid ‘mobile newspapers’ which are essentially headline services. How many use them? 40 Million paid users already. Amazing numbers are’nt they?

  • The total number. The Morgan Stanley Mobile Internet Report of December 15, 2009, reports that the total value of the mobile data industry grew 20% this past year – this year of economic crisis when the global economy declined 5% – and mobile data total revenues reached 284 Billion dollars. This is now bigger than the ‘total’ PC internet economy, ie the internet content revenues, plus internet advertising revenues, plus all subscription fees ie broadband and dial-up monthly fees, combined. Those are worth roughly speaking 250 Billion dollars (may be even less).

    This number includes SMS revenues of about 100 Billion and includes mobile advertising revenues of 3 Billion dollars this year (that number may also still be bigger, as mobile advertising is growing so strongly at this time, it is difficult for any analyst to nail the exact number..)

    But think about it – when the world total expenditure declined by 5% and we faced the worst economic crisis since the Great Depression 80 years earlier, the global mobile data industry grew 20%. That means, that if we adjust for the economic decline, the ‘actual’ growth was equivalent to 25% year-on-year. WOW.

(Source: Communities-dominate-brands)

December 19th, 2009

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