Category: Products

Chromebooks defy slow PC market with strong growth

Posted on July 12, 2013 by - News, Products

chromebookDemand for traditional desktops and laptops has been waning for years and the last two quarters saw the biggest slump in PC shipments in decades, but Google’s Chromebooks have bucked the trend.

Envisioned as cheap alternatives to Windows based laptops and netbooks, Chromebooks are cheap and cheerful, usually priced between $199 and $299. Although the market is still on a tablet binge, consumers seem to be quite interested in Chromebooks as well.

NPD estimates that Chromebooks have already managed to seize 20 to 25 percent of the sub-$300 laptop market in the Land of the Free. Overall, Chromebooks had a 4 to 5 percent market share in the first quarter, up from one to two percent a year ago.

That is a pretty impressive share for a category of products that practically didn’t exist a year ago and even today many consumers have no idea what a Chromebook actually is. NPD analyst Stephen Baker told Bloomberg that he was initially sceptical, but he now believes Chrombooks have managed to find a niche in the marketplace.

“The entire computing ecosystem is undergoing some radical change, and I think Google has its part in that change,” he said.

The untimely demise of the netbook also played a role in the Chromebook surge. Although netbooks weren’t that big among average consumers, they were essentially a good way of getting very cheap yet fully functional computers to schools and other institutions on a budget.

Chromebooks are just more of the same, but their success beckons the question – couldn’t have Intel and Microsoft played their netbook cards a bit better five years ago? After all, Google seems to be proving that there is still enough room for dirt cheap laptops, in spite of the tablet juggernaut. It seems Intel made a terrible strategic miscalculation with Atom cores.

Five years ago Chipzilla didn’t want to peddle high-volume low-margin chips, yet now it is struggling to come up with competitive mobile SoCs, which are basically an evolution of the original Atom concept. Maintaining higher margins and appeasing the Street with good quarterly results seems to have been more important than a comprehensive long-term mobile strategy.

Microsoft to slash Surface RT prices in US

Posted on July 12, 2013 by - News, Products

surface-rtMicrosoft is apparently about to slash the price of its Surface RT 32GB tablet by $150. The price cut should help the troubled tablet quite a bit, as it was originally priced at $499, which made it rather uncompetitive given its underwhelming spec.

Now though major retailers in the US are listing the Surface RT 32GB for just $349, reports Engadget. The new price sounds like a pretty good deal, although it is still no bargain. With such a sensible price tag, the Surface RT might have been a success, but the cut seems to be coming too late. Although Microsoft has not released any official sales figures, analysts believe it only manages to ship a couple of hundred thousand units per month.

Furthermore, the Surface RT is already ripe for an upgrade. It is based on Nvidia’s Tegra 3 and it has a 10.6-inch screen with 1366×768 resolution, which makes it look rather obsolete compared to iPads and high-end Android tablets.

Microsoft is expected to introduce an all new Surface RT in a few months, but before it does the current model should get a significant OS update, along with Outlook and it seems – a new, sane price tag.

Tablets oust PCs

Posted on July 11, 2013 by - News, Products

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.

Ingram Micro NZ launches reseller app

Posted on July 10, 2013 by - News, Products

ingram-mico-hqIngram Micro has rolled out a new app designed to help Kiwi resellers respond more quickly to customer needs, while at the same time making their lives just a bit easier. The app is available for iOS and Android devices, no word on WP8 or BB10 support just yet.

The apps allow resellers to access Ingram’s e-commerce offering on the go, order products and track shipments in real time, browse products, compare prices and check availability. The app also features a few clever tricks borrowed from consumerish shopping apps. For example, users can scan a bar code using a smartphone camera and the app will check the product details and Ingram Micro’s stock information, reports Reseller NZ.

The apps can also be used to impress customers, by displaying the offer on mobile devices without revealing dealer pricing, which sounds a lot more convenient than doing it on a notebook.

Ingram Micro says it will continue to upgrade the app over the coming months, but so far feedback has been largely positive. Now all they have to do is roll out similar apps tailored for other regional or national markets.

British VARs getting Surface tablets in September

Posted on July 9, 2013 by - News, Products

surfacetabBritish value-added resellers will start peddling Microsoft’s Surface tablets to businesses come September. Microsoft has already named ten US VARs who will kick off the enterprise oriented Surface campaign this summer.

The names of British VARs have not been disclosed yet. According to Microsoft UK director for partner strategy Janet Gibbons, only a few select resellers will be able to sell Surface tablets as part of a pilot scheme.

“In every market, we’re positioning [Surface availability] as a pilot… Our only experience of being a hardware provider is with the Xbox, and that’s a different world,” she told CRN. “If we’re going to come to the market with a device, we have to know we are set up well to support the channel with things like warranty, return, credit and distribution of stock [information]. All of that has to be worked through.”

At this point it might be a bit too late. The Surface RT is almost a year old and by the time British VARs enter the fray it should get a successor, give or take a few weeks. The Surface Pro isn’t as stale, but it not a hot new product, either.

Vole chucks cash at Win 8 tablet peddlers

Posted on July 9, 2013 by - News, Products

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.

Apple on schedule for next gen iPad

Posted on July 8, 2013 by - News, Products

applecoreSupply chain whispers in Taipei assert that Apple is on schedule to gets its next generation, 9.7 inch iPad out for September.

The iPad mini, meanwhile, may be tinkered with to improve the specs and make it more appealing.

Digitimes thinks the 9.7 inch tablet will sport a slimmer bezel design to make the viewing area larger, with improved battery and half the LED tubes. Upstream suppliers, Digitimes’ sources say, are done with the preparation so last minute spec updates are unlikely. A slimmer bezel would be more in line with Samsung and HTC smartphone designs.

The rumour is suppliers haven’t had word from Apple on the amount they should put out just yet are are shipping for pilot productions, but that will be able to meet initial launch demand. Shipment estimates are expected early August at the latest.

Apple, the sources say, is pondering whether or not it wants to bung a retina display on the 7.9 inch iPad mini. If so, this could lead to delays.

OECD: BYOD is ugly

Posted on July 5, 2013 by - News, Products

SmartphonesChanges in phone acquisition models might be about to contribute to the slowdown of smartphone sales in some markets, as well as BYOD adoption rates. An OECD report found that most markets are still heavily relying on subsidised phones and bundles, available on two-year plans.

However, in many countries most mobile plans include an entitlement to a handset discount, which makes BYOD unattractive with costlier mobile plans. In spite of that the report found that in some big markets, such as France and the US, bundled phones actually end up $10 to $20 more expensive than the BYOD option. What’s more, the differences aren’t even evident to most consumers, which isn’t the case in some countries which mandate operators to disaggregate the cost of the device in monthly bills, revealing the actual cost of bundled phones.

The report found that operators in the UK are still trying to push two-year contracts, as they help create a stable customer base. One month contracts are used by about 17 percent of British consumers and the number has been more or less stable since 2007. However, two-year contracts accounted for 68 percent of sales in the first quarter of 2011, up from just 2 percent in Q1 2008. At the same time the number of 12-month or 18-month contracts is decreasing.

It is evident that the vast majority of high-end smartphone sales are coming from two-year plans and that this won’t change anytime soon. However, it is an inherently risky approach. Although two-year contracts with fancy bundles can help maintain a stable customer base, smartphones aren’t evolving nearly as fast as they did two or three years ago. The upgrade cycle is slowing down and the model might not work a few years from now, since Vodafone, O2 and EE aren’t offering subsidies anymore.

Consumers aren’t about to ditch bundled phones in favour of unlocked devices and cheaper plans, but the protracted economic downturn might prompt them to do so in the future.

However, having a good customer base and heaps of new devices sold every year allows carriers to invest more in infrastructure. Smartphones are driving 3G and 4G growth and without two-year bundle deals development would be much slower.

The OECD report concluded that consumers can benefit from reduced lock-in by simply buying a pricey smartphone through monthly instalments and using a cheaper plan. Increased transparency, such as disaggregating the cost of the phone in the monthly bill would help as well, along with more unlocked phones. It all comes down to the consumers, but most of them don’t appear to be well informed and savvy to compare competing mobile plans, or the cost of getting an unlocked phone and a separate plan.

Gigabyte confirms record mobo sales

Posted on July 5, 2013 by - News, Products

gigabyte-haswell-motherboardAlthough the PC industry is going through a rough patch, some outfits are still doing quite well and one of them appears to be Gigabyte.

On Friday the company announced that it is on target to sell 20 million motherboards this year, its best result ever. Gigabyte apparently shipped 4.8 million motherboards in Q1 and by the end of the second quarter its shipments hit 9.9 million units.

“Obviously this is excellent news, proving not only that we’re doing a decent job of fighting our corner in a highly competitive market segment, but that the PC market as a whole is humming along nicely,” said Gigabyte.

Although it is nice to hear some optimism in an otherwise desperate market, we’re not sure the PC market “as a whole” is humming along nicely. However, Gigabyte’s motherboard business certainly is. Last year the outfit managed to gain quite a bit of ground and now it’s breathing down Asus’ neck. Asus and Gigabyte currently control about half of the worldwide motherboard market and, if it keeps growing, Gigabyte might overtake Asus pretty soon.

Smaller players like ASrock and MSI are far behind, with annual shipments under 10 million units, while ECS, Biostar, Foxconn and others are fighting over scraps.

Carphone Warehouse to become tablet warehouse

Posted on July 4, 2013 by - News, Products

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.

Microsoft and Solidsoft go for medical system

Posted on July 4, 2013 by - News, Products

pillMicrosoft’s Windows Azure cloud platform has been selected to power the new European Medicines Verification System (EMVS).

The system will be developed by Solidsoft, a Microsoft Gold Partner. The system was conceived by European Stakeholders Model (ESM) Partners, which represents the majority of the European pharmaceutical industry. 

The system will handle information on more than 10 billion medicines dispensed throughout all 28 European Union member states. All meds will feature a unique, encrypted product identifier which will be scanned at the point of dispensation and then verified for authenticity in the Azure cloud.

“We look forward to the start of the implementation of the European Medicines Verification System. Patients need to be able to trust in the medicines they take and this is a timely and important step towards finding a solution to the urgent problem of counterfeiting in the EU,” said Richard Bergstrom, Director General of ESM partner, The European Federation of Pharmaceutical Industries and Associations (EFPIA). 

Solidsoft CEO Garth Pickup said the cloud has changed the dynamics of large IT projects forever.

“The almost limitless scale provided via the Microsoft Windows Azure platform means that this massive project can be delivered to the EFPIA at much lower cost than on-premises. It will also easily scale to the 10 billion+ transactions it will handle each year in real time,” he said.

Mark Smith, Director for Health & Life Sciences at Microsoft UK, said the Windows Azure platform innovative companies to take on large projects, leveraging the vast computing resources of Microsoft’s data centres.

May console sales worst in 13 years

Posted on July 4, 2013 by - News, Products

consolesMay seems to have been the worst month for console sales in 13 years, before the introduction of the PlayStation 2.

According to Wedbush Securities, sales of console games were just $175 million in the US, down 31 percent from $255 million last year. Wedbush was expecting a drop of 16 percent and sales around $216 million.

Unit sales of console software were down 26 percent, while ASPs were down 8 percent. This is hardly surprising, as new consoles are rolling out and few consumers are willing to buy software for old systems. However, PC game sales were even worse.

Sales of PC gaming software were down 84 percent year-on-year. Hardware sales were down 31 percent and the US spent only $96 million on PC games in May.

Wedbush Securities analyst Michael Pachter believes sales should pick up in June, as several new AAA titles make their presence felt, but no big improvement is expected until next generation consoles start shipping in volume, reports wallstcheatsheat.com. Positive growth should return in September, as a number of new game releases are timed to coincide with the availability of the PlayStation 4 and Xbox One.

New consoles are expected to have a massive impact on sales toward the end of the year and 2014 should be good as well. However, handheld consoles will face even more competition from mobiles and tablets.

IHS ups tablet panel shipment forecast

Posted on July 3, 2013 by - News, Products

Keep taking the tabletsIHS has increased its forecast for tablet displays by six percent for 2013.

The numbers were boosted by orders from Chinese white-box tablet makers who seem to be growing at a much faster pace than big brands. A total of 262 million displays for tablets should be shipped this year, up from a previous forecast of 246 million units. Looking back at 2012, this represents 69 percent growth. 

Microsoft channels Surface to businesses

Posted on July 2, 2013 by - News, Products

surface-rtIn what can only be described as a last ditch effort to keep Surface tablets from flopping, Microsoft has launched a new channel programme in the United States. The programme should push sales of Surface tablets to businesses and other organisations. 

For the time being, the programme is limited to the US, but it will expand over the next few months. Under the programme, Microsoft’s channel partners stateside will offer the Surface RT to schools and universities at steep discounts, reports PC World. Private sector companies and government agencies are being pursued as well.

The partners will also be able to offer technical support, on-site assistance, data protection, recycling and asset tagging. Independent software vendors are also being encouraged to develop apps for Windows RT and Windows 8. The latter just crossed the 100,000 app milestone, but on the whole the choice of RT and Win 8 apps remains rather limited when compared to competing platforms. The software part of the programme is called AppsForSurface and developers who sign up will receive Surface devices and funding.

Ingram Micro, Synnex and Tech Data, CDW, CompuCom, En Pointe, Softchoice and Zones are already on board, while Citrix, Airstrip and Houghton Mifflin Harcourt have signed up for the software part of the programme.

However, although businesses don’t tend to shy away from Microsoft, they aren’t exactly lining up for Redmond’s tablets. Demand remains soft and enterprise adoption is anything but spectacular. Windows tablets have one thing going for them, IT departments seem to like them a bit more than Android gear when it comes to BYOD. But many love Apple even more.