Tag: tablets

Lenovo aims to topple HP by 2015

lenovo-logoLenovo has been going from strength to strength in recent months and now it has Hewlett Packard in its crosshairs. Lenovo believes there’s plenty of room for expansion in EMEA, in spite of Europe’s economic woes and Syria’s feeble attempts to become the Archduke Ferdinand of World War III.

Speaking at IFA 2013, Lenovo’s EMEA president Gianfranco Lanci said the company’s ultimate goal is to become number one in the region within the next 18 months. He added that there are still big growth opportunities on PCs and there’s still room to grow.

Meanwhile, HP is losing market share to Lenovo, while Lenovo has already overtaken Acer in EMEA. Lenovo’s PC business is doing surprisingly well at a time when many other PC vendors are faltering on all levels. In addition, Lenovo’s smartphone push is paying off nicely in Asia and next year it could bring its Android terracotta army to Europe and North America. Lenovo is also becoming a big name in Android tablets, but so far Android tablets have failed to match the success of their smartphone siblings.

“The investment needed in the smartphone and tablet businesses is much more than what you need in PCs – this is why we will see more consolidation,” Lanci said.

He argued that scale is necessary to successfully compete in the smartphone market and with skyrocketing phone shipments in China, Lenovo shouldn’t have much trouble with scale.

Lanci added that all three Lenovo divisions are making money, but the PC division is still generating higher margins as PCs don’t require nearly as much investment as smartphones and tablets. It may be interesting to note that Lenovo is making some rather interesting moves on the hybrid front as well. As hybrids and tablets converge, Lenovo will end up in a much better position than some competitors without a viable tablet/hybrid strategy. Provided all goes well, of course.

IDC sees gloom in tablet market

cheap-tabletsThe PC market has been coughing up phlegm for quite a while and for the last couple of years we’ve been told that tablet would wreck the PC market. This of course was rubbish, since tablets can only complement PCs, not replace them, and the real reasons behind the PC slump are a bit more complex.

Research from IDC has revealed that the tablet market is cooling down. The research firm cut its unit shipment forecast from 229.3 million units to 227.4 million units, which doesn’t sound like much, but it is a telltale sign that many got carried away in the tablet craze. However, although growth is slowing, tablet shipments this year will still be 57.7 percent above 2012 shipments. By 2017 IDC expects shipments to hit the 407 million mark. Mature markets are expected to cede market share to emerging markets over the next few years, namely the Asia Pacific region.

While mature markets such as North America and Western Europe have driven much of the tablet market’s growth to date, IDC expects shipment growth to begin to slow in these markets. The main culprits are market saturation, increased adoption of phablets and the eventual growth of wearable tech, which has yet to enter the fray.

“A lower than anticipated second quarter, hampered by a lack of major product announcements, means the second half of the year now becomes even more critical for a tablet market that has traditionally seen its highest shipment volume occur during the holiday season,” said Tom Mainelli, Research Director, Tablets. “We expect average selling prices to continue to compress as more mainstream vendors utilize low-cost components to better compete with the whitebox tablet vendors that continue to enjoy widespread traction in the market despite typically offering lower-quality products and poorer customer experiences.”

IDC research reveals another interesting trend, the rise of tablets in the commercial segment. Education projects have a lot to do with it, along with adoption in vertical markets such as retail. This segment will slowly double from 10 percent in 2012 to 20 percent in 2017. This might indicate that vendors will be forced to get creative and design more specialized tablets for businesses and schools.

Apple and Samsung lose ground on tablets

cheap-tabletsApple is losing ground on the tablet market, due to a drought of new products and more competition from the Android camp. However, Samsung is not capitalising on Apple’s woes and its sales are dropping as well.

According to Strategy Analytics, Apple sold just 14.6 million iPads last quarter, down 4.9 million from Q1. Its market share tumbled from 40.4 percent to 29.2 percent. Meanwhile its arch nemesis Samsung also suffered a hit. Its sales dropped by 700,000 units to 8.4 million units and its market share now stands at 8.4 percent.

Another report from Analysys claims that tablet sales in China aren’t growing nearly as rapidly as they did just a few months ago. Last quarter China gobbled up 3.58 million tablets, growing just 5.2 percent over the first quarter of 2013. Sales of Apple’s iPads were particularly hard hit, the research outfit reported.

Relative newcomers to the market like Acer, Lenovo, Sony and Dell are gaining ground. LG is gearing up to give tablets another go, following a dismal effort a couple of years ago. Then there are Chinese white-box tablets, heaps and heaps of them.

However, Cupertino’s troubles might be a thing of the past come Q4. The Church of Apple is widely expected to introduce new iPads as soon as next month and the hot iPad mini should get a Retina makeover. Apple’s current tablet offerings are showing signs of age and an update is overdue.

On the other hand, there’s really not that much hype this time around, iPads aren’t as fresh and cool as they used to be and getting people to upgrade from an iPad 3 or 4 won’t be as easy. They both have relatively speedy chips and a crisp high-resolution screen, so Apple will have to get creative, and it’s been faltering on that front for the last two or so years.

The iPad mini though desperately needs a sharper screen and a faster processor and a new high-res model should do very well indeed.

Foxconn starts selling TVs

foxconn-tvFoxconn may be about to diversify and try its luck in the smartphone and tablet business, under its own brand. The company has been building iPhones, iPads and a range of other products for years and now it’s selling smart TVs, with a bit of help from 7-Eleven Taiwan.

Foxconn launched its TV assembly business in 2008 and it has expanded it in recent years with the acquisition of manufacturing facilities from Sony. It also bought a 50 percent stake in Sharp’s panel making plant in Japan, reports the Wall Street Journal.

Shoppers in Taiwan can already buy a range of Foxconn tellies and with gaudy ads like this one for a 40-inch smart TV, who could resist? However, the big news is that Foxconn may be about to launch smartphones and tablets of its own, or through some sort of deal with 7-Eleven.

This is not good news for Chinese white-box outfits. They have been performing quite well recently and demand for white-box smartphones and tablets is quite strong, often outstripping growth reported by big brands. If Foxconn enters the fray, the white-box crowd will face a lot more competition.

Foxconn has a lot of experience and capacity second to none, but it doesn’t actually make any crucial components used in smartphone or tablets. This is true of most smartphone outfits except Samsung.

There is no shortage of high resolution panels, cheap application processors, cameras or batteries. Depending on volume Foxconn could get much better prices than small white-box companies. However, it is still unclear whether Foxconn’s push will be limited to the 7 Eleven deal, or whether it will spread to other markets.

The company certainly has the muscle to pull off a global rollout, but this might not be necessary, at least not for now. Foxconn could instead choose to target a handful of emerging markets like China, markets that are not very saturated and that tend to scoop up white-box phones. The exact same markets Lenovo is gunning for. Such an approach could give Foxconn a foothold in the mobile industry through a back door, as it wouldn’t have to go head to head with Samsung or Apple.

Android tablets still lack tons of iPad apps

NexusSales of Android smartphones and cheap tablets are skyrocketing, but the same isn’t true of high-end Android tablets. While many models feature impressive hardware that could easily go toe to toe with the iPad, the app ecosystem just isn’t there yet. 

According to Canalys, out of the top 50 paid and free iPad apps in Apple’s US App Store, 30 percent are nowhere to be found on Google’s Play Store. Another 18 percent were available, but they were not optimized for tablets, which means they look and feel like oversized phone apps. Just 52 percent were available through the Play Store, optimized and ready for tablets.

“Quite simply, building high-quality app experiences for Android tablets has not been among many developers’ top priorities to date,” said Canalys senior analyst Tim Shepherd. “That there are over 375,000 apps in the Apple App Store that are designed with iPad users in mind, versus just a fraction of this – in the low tens of thousands – available through Google Play, underscores this point.”

Canalys expects all this to change, as the user base grows and Google introduces improvements to the Play Store. However, Google simply has to do more to support developers to invest time and money in high-quality Android apps for tablets. Since pricey Android tablets don’t sell well, the user base will remain limited. Most people who buy Android tablets go for cheap and small models, hence it is safe to assume that they are not willing to invest in premium apps and services, either.

The other problem facing Android developers is fragmentation. Apple developers need to design tablet apps for just two screen resolutions and form factors, both of which use the same aspect ratio. They don’t face nearly as many as many challenges as Android developers, who have to deal with dozens of different resolutions, form factors, Android versions, APIs and application processors.

Worse, at the end of the day Android developers have a very limited market for bespoke tablet apps, as the user base is still small and it’s growing from the ground up, i.e. growth is coming from low-end tablets that weren’t designed with anything serious in mind.

IDC expects further IT spending slowdown

pc-sales-slumpIDC has taken a second look into its crystal ball and revised its earlier forecast for worldwide IT spending. Of course, the new numbers are lower.

In May IDC forecast 4.9 percent growth, but now it expects 4.6 percent. What’s more, if tablets and smartphones are taken out of the equation, spending will be up just 1.7 percent. IDC’s May forecast was 2.6 percent.

IDC cites a slowdown in economic growth in emerging markets as the main reason behind its decision to lower forecasts. Growth is slowing down in China and Asia Pacific. Europe is not even worth mentioning. However, it’s not all bad news. IT spending in the US is now expected to increase 4.6 percent this year, up from 4.2 percent forecasted in May.

There’s some good news for mobile outfits, too. IDC expects spending on tablets to be up 39 percent this year, up from a May forecast of 32.5 percent. Smartphone projections are also up, 18.5 percent over 17.2 percent in May.

Unsurprisingly there is nothing good to report on the PC front. PC sales worldwide are now expected to decline 7.2 percent this year. The May forecast was just 2.6 percent in the red. That’s a huge revision in the space of less than three months and the PC market is clearly in worse shape than analysts thought.

PC and tablet shipments to hit 493m this year

pc-sales-slumpCombined worldwide shipments of tablets and PCs are expected to hit 493.1 million units, according to research from Canalys. The firm is expecting seven percent growth, but it will come from tablets rather than PCs.

Tablets are forecast to account for 37 percent of the market, up from 25 percent last year.

By 2017, unit shipments should reach 713.8 million, but only a quarter of them will be laptops, while tablets should make up 64 percent of all shipments.

The tablet market is booming. It more than doubled in the first quarter of the year, while at the same time desktop and laptop shipments took a double-digit plunge. Tablet shipments in 2013 should hit 182.5 million units and by the end of the year they should outpace laptops.

Competition should heat up over the next few quarters, with traditional PC vendors vying for a piece of the lucrative tablet market. Windows 8.1 tablets are expected to start making their mark later this year, but they might not have what it takes to stand up to Android and iOS gear in the low end. Therefore many outfits are turning to Android tablets, including Acer, Asus, Lenovo and HP. However, the trouble with cheap Android tablets is that they’re not good money makers.

“Shipment numbers can be high but absolute margins on these products are expected to be small. Low-price tablets will not be lucrative but it is necessary to compete or a vendor will simply lose relevance and scale. In fact, accessories, particularly cases, as well as the new generation of high-tech app-enabled accessories will likely provide higher margins than the products themselves,” said Pin-Chen Tang, research analyst at Canalys. “This new influx of Android devices will provide a boost to the platform and Canalys therefore expects Android to take a 45% share in 2013, behind Apple at 49%. The iPad mini is expected to continue selling well, becoming more significant in terms of the product mix and spawning a further increase in consumer demand for smaller tablets.’

The other big unknown is Intel’s 2-in-1 convertible push. They should also start appearing later this year and vendors have already shown off some designs, but many are not convinced that they will do well. The first generation isn’t very impressive. They require pricey and relatively hot x86 chips, so they end up a bit bulkier than ARM-based tablets. In addition, Windows 8.x is still an unproven OS in the tablet space and it’s more bloated than Android or iOS.

“These convertible products have disappointed so far. Convertibles are too heavy in tablet form and too expensive when compared with clamshell product,” said the company. Canalys therefore expects that, for at least the next 18 months, consumers will buy separate products, rather than compromise on a Windows 8 convertible or hybrid PC. Even for Android products, alternative form factors are not expected to grow rapidly due to the category being sandwiched between low-priced slates and more familiar Windows-based clamshell notebooks,” said Canalys analyst James Wang.

Smart toys change Brit living rooms

living-roomOfcom research has revealed that the huge take-up of smartphones and tablets is transforming the traditional living room into a digital media hub. Ofcom’s Communications Market Report 2013 found that people are still coming together to watch TV in the living room, but the telly is no longer the centre of attention.

The number of UK adults who watch TV in the living room is 91 percent, up from 88 percent in 2002, but adults and kids alike now have a huge range of distractions. People are streaming videos, messaging, updating their social media status and doing a lot more, all while watching more TV than before. In fact, watching may not be the right word, as the TV now apparently provides the soundtrack for couch surfing.

More than half of adults now use smartphones, almost double the number two years ago (27 percent). Tablet ownership has more than doubled in the past year, going up from 11 percent to 24 percent The average household now has more than three types of internet enabled devices and one in five owns six or more.

So what exactly are people doing on their smart toys while “watching” TV? A quarter are “media meshing” which means they aren’t exactly watching TV, but doing something related to what’s on TV, like browsing IMDB, talking on the phone or texting about what they’re watching. Younger people are a lot more likely to use other media while watching TV (74 percent).

The other phenomenon is called “media stacking”. Half of people use their devices for completely unrelated activities while watching TV. These include smurfing the internet, social notworking and online shopping (16 percent). Women are more likely to media multitask than men, 56 percent compared to 51 percent.

However, ye olde telly is fighting back. Many people are picking up bigger TVs, with panels over 43 inches, but many households are reverting to having just one TV rather than a bunch of sets in different rooms. Tablets appear to be disrupting the traditional TV routine and smart TVs are also becoming relevant.

The growth in ownership of tablets is driving the use of second screens, and enticing people to the main TV room. More than half (56 percent) of tablet owners use their device for viewing audiovisual content and half of these do so while in the living room.

In addition, tablets are a very useful tool for entertaining and educating children. Kids of all ages love anything with a touchscreen and the vast majority of parents say the let their kids use tablets.

The transformation of the traditional living room into a multimedia hub could go even faster with superfast broadband services with speeds of over 30Mbps. However, just 17.5 percent of British homes have a superfast connection right now. People who decided to switch to superfast broadband told researchers that they have increased their levels of streaming high-definition content and started using more cloud services.

MS Office appears on Android phones

redmondMicrosoft has announced Office Mobile will now be available to Microsoft 365 subscribers on Android.

Earlier this year, Microsoft announced Office Mobile for iPhone, meaning Office software is now available on Android, iOS, and Windows Phone, as well as on desktops and laptops.

Existing 365 customers will get access to Office Mobile for Android at no extra cost. It opens up Word, Excel and PowerPoint document reading and editing to the platform.

For now, it’s only available in the United States but more regions are promised in the coming weeks, in 33 languages and 117 markets.

Office Mobile for Android can be found on the Google Play Store, but users will need a qualifying Office 365 subscription, including Office 365 Home Premium and Office 365 ProPlus.

The idea is to sync up mobile work with work at the office or at home. Editing documents in Office Mobile for Android will save changes made in the cloud, and these changes will be accessible from whichever other device or platform customers use. A single subscription is available for up to five mobile devices, excluding Windows Phone which has the app pre-installed.

This app is designed for the phone in mind. We have asked a Microsoft spokesperson if tablet optimised versions will be made available, but for now Microsoft is recommending tablet users go to Office Web Apps.

“We built Office Mobile for Android phones to ensure a great Office experience when using a small screen device,” an FAQ reads. “Therefore you will not be able to download and install Office Mobile for Android phones on an Android tablet from the Google Play Store”.

It’s likely the varied screen sizes have something to do with this.

Anyone interested in trying the app out can sign up for a 30 day Office 365 trial at http://www.office.com.

Haswell tablets might show up this year

Intel-logoAlthough Intel has failed to cash in on the tablet craze so far, things may be about to change later this year. In addition to Silvermont-based Atoms, the chip maker plans to roll out the first Haswell chips with extremely low TDPs, perfectly suited for high-performance Windows 8 tablets.

Of course, the most obvious challenge facing Intel is the lack of market opportunities for Windows 8 tablets, but that might change.

Tablet retail searches are soaring

Keep taking the tabletsYe ancient Tablet has already taken a toll on PC sales and now they appear to be changing the online retail landscape as well.

According to the British Retail Consortium and Google, retail search volumes grew by 15 percent in the second quarter, but tablet search volumes were up a staggering 132 percent. Smartphone growth was 66 percent.

So what are mobile users searching for? It appears many of them enjoy DIY and gardening, as mobile searches for the two categories were up 170 percent and 81 percent year-on-year. Obviously, much of the growth is seasonal. Clothing is also popular and unsurprisingly it appears that most mobile searches are coming from consumers making their purchases while soaking in the sun, or tinkering around the shed.

Helen Dickinson, Director General, British Retail Consortium, said the results also show the changes the internet is bringing to the international retail market.

“The considerable increase this month in the number of UK consumers searching overseas retailers show that barriers are increasingly being broken down. UK retailers are already responding well to these changes and will be keen to continue seeing equivalent increases in overseas customers searching them out,” she said.

Peter Fitzgerald, Retail Director, Google, said the new data merely backs up seasonal trends seen in previous editions of BRC’s Retail Sales Monitor.

“Pureplay retailers in particular regained their growth, responding to the pressure of multichannel retailers in the online space. International interest remains a strong lever for our homegrown retailers,” he said. “UK interest in overseas brands however, has really peaked this quarter driven in particular by interest in US brands.”

Total search volumes from UK consumers searching overseas retailers increased by 51 percent in Q2 compared with the previous year.

Tablets oust PCs

cheap-tabletsA Gartner report says that worldwide shipments of PCs fell in all regions during the second quarter of this year – a fall of 10.9 percent and the fifth consecutive decline.

And, if Gartner analysts are to be believed, the day of the PC is over, with a shrinking installed base of PCs.  Mikato Kitagawa, principal analyst at the company, said: “Inexpensive tablets have become the first computing device for many people, who at best are deferring the purchase of a PC. This is also accounting for the collapse of the mini notebook market.”

Lenovo pipped HP at the post, but showed a decline in the Asia Pacific region.  HP however, still leads in the USA, Latin America, and APAC.

76 million units shipped in the second quarter, but worldwide, Acer’s growth dropped by 35.3 percent, while Asus also see a decline of 20.5 percent.

Dell also fell, but showed steady growth in the USA and Japan.

Kitigawa, however, doesn’t think Windows 8 is responsible for the slowing shipments. However, the impending end of support for Windows XP helped to grow PC sales in the US enterprise sector.

Victor Basta, MD at M&A firm Magister, believes the PC era ended some time ago. He said: “If you’re a store chain called PC World you might want to rethink your brand quickly if you want to be associated with the future of technology rather than antiquity.”  He also warned poor sales of PCs would cast a cloud over the Dell deal.

Vole chucks cash at Win 8 tablet peddlers

win8errorMicrosoft is trying to make Windows 8 a bit more appealing by offering resellers a $5 to $10 discount for select Windows 8 devices.

The incentive programme is focused on 21 Windows 8 devices, most of which are tablets or other touch-enabled devices, Computerworld UK reports.

With plummeting sales of traditional PCs, the move is hardly surprising, but the fact that Microsoft has singled out just 21 devices strikes us as odd to say the least.

The programme, dubbed “TouchWins” is clearly tailored to support emerging form factors and make Windows 8 tablets a bit cheaper, although they will remain hopelessly overpriced even with the $10 kickback.

“The whole idea is to provide incentives for the commercial channel for featured devices and tablets, PCs and tablets, and through this program we will provide incentives directly to authorized distributors, as well as reseller partners, who sell featured PCs and tablets that have Windows [8] Pro and are touch-enabled,” said Tami Reller, Windows division CFO.

Devices from nine OEMs, including Acer, Asus, Dell, HP and Lenovo, are eligible for TouchWins.

However, many of them are very pricey indeed, so the cash-back incentive won’t mean much.

One example is the Acer Aspire S7 touch enabled Ultrabook, starting at about $1,300. We’re not sure a $10 discount will make much of a difference in this price bracket.

Carphone Warehouse to become tablet warehouse

kate-mossCarphone Warehouse is planning to expand its tablet offering this year, following strong demand in 2012. The company saw plenty of growth in tablets in the latter half of the year, hence it is planning to invest more and grow market share in tablets.

Carphone Warehouse said it will continue to develop the tablet category, both through standalone sales and handset/tablet bundles.

“The development of 4G services is expected to improve download speeds significantly and therefore to stimulate demand for tablets with connectivity to mobile networks as well as wi-fi services,” the company said. “We achieved increased relevance in the tablet market, in part through bundling with mobile phone connections. During the year, we have increased our market share across all our categories and further built our trusted brand. “

As one of the leading retailers in the ever growing mobile sector, Carphone Warehouse had a rather good year. In its annual financial report, the company revealed an 11.5 percent spike in generated revenues, although earnings rose just slightly.

Earlier this week the company also announced that it has enlisted Kate Moss to design a range of smartphone and tablet covers, as part of its new “fashion tech” line of accessories. Not exactly relevant, but it gives us a good excuse to use a gorgeous thumbnail.