Author: Eva Glass

Eva Glass first rose to prominence in The INQUIRER. She continues to work behind the scenes to dig out the best stories.

DRAM is strong, NAND is sluggish

Posted on April 8, 2013 by - News, Products

nand-chipsIndustry analysts believe the memory sector will continue to do relatively well despite a decline in NAND demand. Although NAND might not be a very hot commodity, DRAM sales are expected to surge, reports The China Post.

The price of 2GB DDR3 chips in the first quarter rose 57.8 per cent, while NAND prices rose by 19.8 per cent, according to TrendForce. Strong demand for tablets and smartphones seems to be boosting DRAM sales, and the fact that an increasing number of vendors are introducing Android devices with 2GB of RAM should also help.

However, strong demand could also result in even higher DRAM prices. TrendForce believes the price of 4-gig DDR3 DRAM modules has the potential to rise by another 30 per cent. The outfit points out that the high season for mobile device launches is drawing near, which means more demand should be expected.

Although DRAM prices will remain strong, NAND prices are expected to decline in the short term. NAND prices should remain relatively stable, due to a reduction in supply.

It might sound a bit counter intuitive, but it is worth noting that smartphone and tablet peddlers are not increasing the amount of NAND storage in their devices. Most devices still ship with 8GB or 16GB of storage, while high end gear tends to ship with 32GB, or in some cases 64GB. This is in stark contrast to market trends just a couple of years ago, when each new generation of devices tended to offer a twofold increase in storage.

On the other hand, the amount of RAM is steadily growing. Three years ago smartphones used to ship with 512MB, which was upped to 1GB for the last two generations and as of late last year we are seeing an increasing number of Android devices with 2GB of RAM.

Mobile commerce set to explode in 2013 and beyond

Posted on April 4, 2013 by - News

smartphone-shoppingMobile commerce is slowly but surely going mainstream and a recent report from BI Intelligence found that m-commerce spending will skyrocket over the next couple of years.

The mobile boom is changing shopping habits, and fast. Consumers are using their shiny new smartphones and tablets to redeem coupons, research products, compare prices and, of course, pay for stuff both online and offline.

The trend has not gone unnoticed by major outfits and it is easy to see why, there are plenty of opportunities for just about every consumer oriented industry. The BI Intelligence report found that 29 per cent of US mobile users have already made purchases on their smartphones. Mobile sales accounted for 6.6 per cent of Cyber Monday e-commerce sales in 2011, up from just 3.9 per cent in 2010.

Bank of America now estimates that US and European shoppers will spend $67.1 billion using their smartphones and tablets.

Aside from huge revenue opportunities, mobile commerce has a few other things going for it as well. It is believed that mobile payments can create a more direct link between brands and consumers, with more coupons and loyalty reward programmes.

BI also concluded that the nature of mobile commerce makes it uniquely attractive to marketers, with technologies such as location targeting and in-store mobile marketing.

AMD extends Never Settle bundle to select APUs

Posted on April 4, 2013 by - News, Products

AMD, SunnyvaleAMD’s Never Settle game bundles seem to have been quite successful in the past, so it’s hardly surprising that AMD has decided to extend the programme to select APUs. So far the Never Settle promotion was limited to discrete graphics cards.

According to a set of slides unearthed by German tech site hardwareluxx.de, AMD will start bundling Sim City with several APU SKUs later this month. Sim City is a rather interesting title for casual gamers and it doesn’t need discrete graphics to run properly, so it looks like a good choice. Sadly though, the Sim City launch has already been marred by a number of technical and DRM issues. However, everything will probably be sorted out before AMD’s new promotion takes off.

It appears that the programme will be limited to select A8 and A10 APUs. As AMD is expected to introduce a new series of desktop APUs based on the Richland core, it is safe to assume that the promotion will cover them, along with some Trinity chips.

In any case the buyers of eligible chips will get a free download code for Sim City, valued at $59.99. This sounds like more than a fair deal, as even the fastest AMD APUs tend to be quite cheap. A $59.99 gift as icing on the cake seems like a very clever way of adding even more value to these mid-range chips. Provided consumers like Sim City, of course.

Lenovo to sell servers and storage

Posted on April 3, 2013 by - News

lenovo-logoLenovo, the world’s second largest PC maker, is planning to revamp its business strategy and refocus on its server and storage business over the next three years.

The PC slump has been hurting Lenovo, Dell and Hewlett Packard for several quarters and all traditional PC markers are now trying to reinvent themselves.

Dell wants to go private, HP is waiting for inkjet printers to make a comeback, while Lenovo seems keen focus on everything other than PCs.

Although its latest announcement indicates that Lenovo will make a serious enterprise server and storage push, it should be noted that the company is also betting big on smartphones and tablets. However, we don’t get to see that many of them in Europe, but Lenovo’s mobile gear is doing incredibly well in parts of Asia. In fact, Lenovo’s smartphone business accounts for about 20 per cent of the company’s revenue in mainland China, reports China Daily.

“We are looking for future profit generators, and the enterprise-level server and storage markets will surely fill that need,” said Chen Xudong, senior vice-president and general manager of Lenovo China. However, Chen stopped short of outlining Lenovo’s expectations for its server and storage gear.

The storage strategy seems off to a good start. On Tuesday Lenovo and EMC released their first co-branded server and storage products. The two outfits formed a joint venture last year to shift server and storage gear. It is hoped that the EMC alliance will help Lenovo fend off challenges from ZTE and Huawei in the Chinese market.

Hard drive market shrinks, again

Posted on April 3, 2013 by - News, Opinions

hdd-hugeEuropean outfits don’t seem to be gobbling up nearly as many hard drives as they should. According to consultancy firm Futuresource, shipments have gone from bad to worse over the past two years.

The total capacity purchased last year dropped year-on-year for the first time in history and there are no signs of recovery yet.

A multitude of factors contributed to the slump. The disastrous Thailand floods in 2011 pushed prices up for several consecutive quarters, and just as supply started to improve, the tablet craze and PC slump hit hard, compounded by the ever increasing popularity of cloud services. The fact that SSD prices are tumbling did not help, either. Hard drive shipments peaked in 2010, with 28.1 million units, but they dropped to 25.9 million in 2011 and 21.5 million in 2012.

Mats Larsson, senior market analyst for Futuresource, told The Guardian that he doesn’t expect the market to recover to 2010 levels anytime soon.

“We think this year shipments will show between 5% to 10% growth – likely about 7%,” Larsson said. So although some growth is expected, it’s not nearly enough to come close to 2010 levels.

The other issue is the size of drives purchased last year. While it is still growing, it is not keeping up with the drop in unit sales. As a result, the total capacity dropped from 25.4 petabytes in 2011 to 23.6 petabytes in 2012.

Larsson said some retailers held back on buying drives last year, in the hope that distributors would drop prices. That didn’t happen. Hopes that increased demand for tablets would result in higher NAS shipments were also quashed. Shipments of NAS systems in 2012 dropped to 1.12 million units, down from 1.27 million units in 2011.

M-commerce survey reveals strong growth

Posted on April 2, 2013 by - News

SmartphonesA survey carried out by Stibo Systems has revealed that the number of m-commerce purchases has increased by 19 per cent over the last year.

The study found that the number of purchases made over e-commerce increased from 40 per cent to 59 per cent in 12 months. However, the survey also established that 17 percent of consumers aren’t too keen on m-commerce channels when they can’t find the necessary information using their tablet or mobile.

Finding product info using a smartphone should be relatively straightforward, but 48 per cent of respondents said small screens make it very hard to read information once it has been found. In other words, m-commerce outfits should start using bigger fonts. Another 46 per cent said they are still concerned about security, reports QRcodepress.

SEO Positive exec Ben Austin said the ever evolving smartphone and tablet market is making mobile purchases much easier than before. The added level of convenience has managed to attract more consumers, but more work needs to be done.

“This research also highlights the need for the information on mobile sites to be clear and secure,” he said.

The industry needs to do more to address security concerns, which are overblown as it is, and they apparently need to redesign their mobile shopping sites to improve readability on small screens. The latter part sounds easy enough, but strengthening confidence in mobile security might prove a bit more challenging.

People regret boozy online buys

Posted on March 29, 2013 by - News

boozebeltAccording to a new OnePoll study, nearly a quarter of British consumers have bought products online while under the influence of happy juice. Needless to say, they regret their purchases, like most other things we do while inebriated. 

Two thousand consumers took part in the survey and the results indicate that the convenience offered by e-commerce services is a double edged sword. It is not like e-commerce outfits are targeting drunk consumers, but the ease of spending hard earned cash with just a few clicks seems to be a bit too much for some jolly consumers to miss out on. Spending too much money while drunk tends to be a bad idea, whether you do it online or out on the town.

In addition, the interfaces of e-commerce sites are susceptible to all kinds of shopping mistakes. A total of 56 per cent of consumers admitted that they regretted buying clothing items online, while 22 per cent felt buyer’s remorse after getting a gadget, reports shopsafe.co.uk.

It is estimated that British consumers spend over £1,000 online a year on average. It seems that a good chunk of that is spent after a few glasses behind the laptop.

Metro.co.uk reports the case of a 22-year-old man, who somehow managed to order 22 tickets to an Oasis concert after a drinking session. The drunken shopping spree cost him over £2,000. It is not clear whether he enjoyed the gig.

Google tests same-day delivery online

Posted on March 29, 2013 by - News

google-ICGoogle is not content with dominating the search and mobile OS space. Now it wants to deliver our groceries, too. The company is about to roll out a new same-day delivery service in San Francisco and several suburbs south of the city, AP reports. 

Google Shopping Express will provide same-day delivery of food and other products bought online. If it takes off, Google will expand the service to other markets.

“We hope this will help users explore the benefits of a local, same-day delivery service, and help us kick the tires on the new service,” Google said in a statement.

It is an interesting twist in Google’s cunning plot to take over the world. Google wants to increase consumer reliance on the internet, even when it comes to mundane chores. The hope is that Google’s shopping push will attract even more merchants to buy online ads.

The biggest drawback of most online shopping outfits is that they cannot guarantee same-day delivery, which means their services can’t be used for perishable goods. Besides, you can already get a week-old salad at Tesco.

Several major merchants have already signed up for Google’s new service, including Target and Walgreen. The merchants will sell some items through a central website, run by Google. Google will then hire courier services to pick up and deliver the items to shoppers. The couriers will be driving Google trucks, in Google uniforms.

E-commerce generates demand for mega-warehouses

Posted on March 26, 2013 by - News, Opinions

warehouse-openOnline shoppers are not just killing main street, they seem to be taking creating a lot of demand for oversized commercial storage units suitable for logistics and delivery outfits. In other words, small warehouses are going out of style, fast.

Property Magazine International reports that 25 million square meters of retail space will be needed over the next five years to keep up with e-commerce trends. That is the equivalent of 3,300 football pitches and some developers might end up driving white Bentleys, just like Premiership footballers.

It is estimated that online outfits will also need an additional three million square meters of specially equipped e-fulfilment space over the next five years. Another 22 million square meters is needed to keep retail stores and satellite warehouses stocked.

The growth of e-commerce will also drive further development of so-called dark stores, which is basically a fancy name for huge warehouses where goods are packed and shipped to consumers.
Jones Lang LaSalle executive Paul Betts argued that many retailers have simply outgrown their supply chain infrastructure and they have to work out new logistics models for multi-channel retail.

EMEA CIOs expect higher IT spending in 2013

Posted on March 26, 2013 by - News

server-racksWe might be a bit closer to bottoming out. According to a study commissioned by Riverbed Technology, 71 per cent of CIOs in the Europe, Middle East and Africa (EMEA) region expect IT spending will go up this year, reports IT Web.

A total of 400 CIOs across the region took part in the study and answered a few questions about their spending priorities over the next 12 months. They were asked to pick their top five priorities and virtualisation and consolidation programs ranked first. About 50 per cent believe server virtualisation will be their primary spending priority. Data consolidation ranks second at 40 per cent, followed by storage consolidation, desktop virtualisation, server upgrades security and compliance, and WAN optimisation, all in the 32 to 34 per cent range.

Oddly enough, the study found that 10 per cent of CIOs plan to make rather aggressive investments in an effort to boost competitiveness. However, 28 per cent claim their focus will be on efficiency and overall cuts in spending over the next 12 months.

It is hardly surprising that 33 per cent of CIOs plan to approach investment cautiously in 2013, but most plan to keep spending at current levels. Only 9 per cent said their IT budgets were shrinking and that they would spend less than last year.

Although most outfits see potential to cut costs through data centre and server consolidation, there’s apparently a lot of room for improvement in WAN performance. As many as 38 per cent of the CIOs said application performance over WAN is a barrier to consolidation.

Acer to slowly revamp product line, focus on tablets

Posted on March 25, 2013 by - News, Products

acer-logo-ceAcer is apparently planning to revamp its product line in an effort to revive sales and growth momentum.

Last week Acer announced that it will increase R&D spending to between 1.2 and 1.5 percent of annual sales this year. Acer apparently wants to invest more in order to stay competitive in the tablet market, while at the same time improving its notebook line. Acer hopes to sell between 5 and 10 million tablets this year.

Analysts, however, see trouble ahead. Deutsche Bank analyst Ivy Lee said Acer might encounter new challenges that might cause its sales to remain flat, reports Taipei Times. Windows 8 is apparently the biggest risk, since there is still not enough consumer feedback on Windows 8 tablets and notebooks.

Acer recently killed off a couple of its value brands, after it experienced a huge inventory loss in late 2011. Like other leading PC makers, Acer is experiencing a lot of margin erosion and falling market share.

Citigroup Global Markets analyst Kevin Chang believes Acer will continue to struggle in the near future. In a recent note he argued that Acer’s current strategy is simply not working and that it has to be more aggressive on pricing.

As the PC slump drags on, Lenovo, Asustek, Dell and HP will try to hold their ground and fierce price competition is to be expected. As for tablets, Asus and Lenovo have done a bit better than other major PC players. Lenovo did particularly well in China in the last two quarters, while Asus has managed to make quite a name for itself in the Android tablet space with the Transformer series. It also builds Google’s Nexus 7 tablet.

M-commerce to double in next 12 months

Posted on March 25, 2013 by - News

google-walletMobile shopping is the new black and a recent survey carried out by Conlumino indicates that it will continue to grow at an impressive rate for the foreseeable future. M-commerce has already risen 55 percent compared to a year ago and it is now estimated that it will grow another 115 percent over the next 12 months. 

High street slump has no effect on video game disties

Posted on March 21, 2013 by - News

pac-manHMV and Blockbuster are gone, along with countless independent shops, but their demise doesn’t appear to be hurting video game distributors. In fact, the leading UK distributors told MCV that the closures did not have much of an impact at all.

Mastertronic said the bankruptcies are a non-issue, as most stock is now on a consignment basis. “However, where we have expensive console stock in the retail channel and no practical means of retrieving it quickly, it still poses a problem. The ongoing transition to a digital business has minimised the effects of these closures,” said Mastertronic operations director Dermot Stapleton.

Vogue Distribution sales manager Tom Popple said the poor performance of the retail sector has made had a knock-on effect on game sales, but Vogue is weathering the storm by expanding into new markets. Clock Entertainment exec Jake Wright said it is sad to see big names disappear from the UK high street, but he pointed out that the closures did not have much effect on his outfit.

A number of execs from Bright Red Distribution, Gem and Link Distribution concur. While none of them welcome the demise of high street chains, they don’t appear too concerned, either. Besides, the long-term trend in the gaming industry is online distribution, with constant updates and plenty of downloadable content to keep gamers hooked.

The demise of brick and mortar shops is already boosting online sales, although sales of PC games are not doing very well. High street’s woes did not take a financial toll on games distributors, but they did hurt company confidence and there are not that many positive signs to report. PC sales are down, console lovers are waiting for next-gen gear and casual gaming on mobile devices is bigger than ever.