Tag: mobile boom

IDC predicts more PC gloom

Posted on May 29, 2013 by - News

pc-sales-slumpIf you thought 2012 was a bad year for the PC industry, think again. Worldwide PC shipments are expected to fall by 7.8 percent this year, according to the latest IDC forecast. The forecast can be summed up in a single trend – consumers aren’t upgrading their PC boxes because they’re saving cash for tablets and smartphones.

In fact, the outlook has been revised downwards. It was originally believed that the PC market would decline 1.3 percent in 2013, followed by a slight rebound. The new outlooks sees a 7.8 drop in 2013 and a 1.2 percent decline in 2014, with shipments recovering to 333 million units in 2017, still below the 349 million shipped last year and 363 million shipped in 2011.

It is hardly surprising, as even Intel executives are admitting that there is practically no incentive to upgrade at the moment. There is no compelling hardware and Microsoft hasn’t exactly done a brilliant job with Windows 8. The mature PC market is trying to put up a fight against the tablet onslaught and it is taking a beating.

“As the market develops, usage patterns and devices are evolving,” said Loren Loverde, Program Vice President, Worldwide Quarterly PC Trackers at IDC. “Many users are realizing that everyday computing, such as accessing the Web, connecting to social media, sending emails, as well as using a variety of apps, doesn’t require a lot of computing power or local storage. Instead, they are putting a premium on access from a variety of smaller devices with longer battery life, an instant-on function, and intuitive touch-centric interfaces. These users have not necessarily given up on PCs as a platform for computing when a more robust environment is needed, but this takes a smaller share of computing time, and users are making do with older systems.”

Things could pick up next year, as support for Windows XP expires and businesses rush to upgrade. However, the average consumer probably won’t rush to replace an old PC. The update cycle is getting longer and longer. Another worrying trend is the BYOD phenomenon, which allows users to use their own gear in the workplace, thus delaying and reducing the volume of corporate PC purchases.

One has to wonder what will happen to average selling prices and margins over the next couple of years. Businesses replacing turn of the century XP boxes will probably look for the cheapest possible solutions. At the same time, demand in mature markets will continue to decline for the foreseeable future, while demand in emerging markets should start to recover next year. Emerging markets also tend to prefer cheaper devices, which means the era of “goon enough” computing is here to stay.

The enthusiast market has always been a bastion for high-end component makers, but it seems to be running out of steam as well. New CPUs and GPUs don’t deliver huge performance gains seen in past generations, yet they’re getting pricier. Affordable 4K screens are still years away and new consoles are about to hit retail, disturbing the PC gaming landscape further.

Cheap smartphones are the next big thing

Posted on April 24, 2013 by - News, Products

nexus4-ceAs the smartphone juggernaut rumbles on, vendors are increasingly turning their efforts to emerging markets, with less disposable income and a much lower smartphone penetration rate. As smartphones are projected to outsell feature phones this year, the need for inexpensive smartphone designs is greater than ever and ABI Research reckons it will continue to grow.

ABI Research divides the smartphone market into three price brackets, low-cost smartphones priced at up to $250, mid range models in the sub-$400 price range and high-end devices, priced at $400+. Shipments of low-cost phones are expected to grow from 259 million this year to 788 million in 2018. Sales of high-end and mid-range phones are forecast to grow from 635 million to 925 million.

It is clear that there is a lot more room for growth in the low-end, and to some extent the mid-range. ABI Research estimates that low-cost units will account for 46 percent of all smartphone shipments by 2018, up from 28 percent last year.

Although most growth is expected in emerging markets, it is very likely that western consumers will change their habits as well. As smartphones mature it will become increasingly difficult to come up with very innovative designs and the lukewarm response to the Samsung Galaxy S4 and iPhone 5 might be a sign of things to come.

“As smartphone penetration moves from early adopters to mass-market and laggard consumer segments, the smartphone as a product will be less dependent on technical superiority, and more dependent on reliability and value,” said senior practice director, Jeff Orr.

Low-cost smartphones are expected to do exceptionally well in underdeveloped markets, with plenty of pre-paid users and very little in the way of subsidies. However, they could also play a role in developed markets, helping feature phone consumers convert to smartphones at a fraction of the cost of high-end gear.

Retail search volumes on mobile gear skyrocketing

Posted on April 22, 2013 by - News

smartphone-shoppingAccording to the latest BRC figures, total retail search volumes grew 16 percent in the first quarter of 2013 compared to a year ago. However, search volumes on mobile devices are skyrocketing. Growth on smartphone devices is estimated at 66 percent, while the volume of searches coming from tablets grew by a staggering 198 percent.

The numbers should come as no surprise, as the high street had a rather miserable quarter and quite a few consumers chose to do their shopping online. The horrible weather also had a lot to do with it.

Helen Dickinson, Director General, British Retail Consortium, said the figures confirm tablets and smartphones are becoming increasingly integral to the shopping experience for many consumers.

“It’s easier than ever to compare prices and products online, and retailers are continuing to invest in their websites and their ‘omnichannel’ offer so that customers have choice, convenience and flexibility when they shop,” said Dickinson. “The retail search data also closely mirrors the sales performance across different categories in March. It’s clear that the prolonged cold snap held many of us back from both browsing and buying new-season clothing lines until some sunshine arrived.”

Google Retail Director Peter Fitzgerald described the results as a “strong start to the year,” pointing out that retail queries grew by 16 percent year-on-year.

“This growth continues to be fuelled by the multi-device trend we are experiencing. Tablet queries grew nearly three times compared to the same period last year, whilst mobile traffic grew at 66 per cent,” he said.

Fitzgerald said the positive trend is set to continue into 2013, as more and more users embrace multiple smart devices. He also added that British brands did relatively well overseas, with searches up 16 percent across the globe and 75 percent in America.

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.

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. 

HTC guerrilla marketing campaign takes on Samsung juggernaut

Posted on March 15, 2013 by - News, Products

htc-quietly-going-underTroubled smartphone maker HTC is not giving in yet. It used the Samsung Galaxy S4 launch event to stage a guerrilla marketing event of its own. HTC can’t take on Samsung in a set piece battle or in a war of attrition, but it seems eager to fight on the landing grounds, in the fields and in the streets. The streets of New York that is. 

HTC did not use Spitfires and Hurricanes, it resorted to an even more potent marketing weapon – lovely ladies handing out HTC One samples. Sometimes a friendly smile works better than a Vickers machine gun. HTC let the crowd try out its new flagship phone at the sidelines of Samsung’s Unpacked 2013 event and it offered a $100 rebate for anyone who trades in their old phone, reports Business Insider.

Samsung held two separate events in New York, one for the media and one for consumers. Apparently HTC chose to target the latter. It is unclear how many consumers fell for it, but in our opinion the HTC One has what it takes to slug it out with Samsung’s Galaxy S4. Sadly though, HTC lacks hundreds of millions of dollars to take on Samsung’s hype machine and hype is proving more important than actual products. 

HTC is down, but it is not out. And if the HTC One fails we will sink into the abyss of a new dark age made more sinister, and perhaps more protracted, by the lights of perverted Samsung science.

HTC is not the only Android outfit that chose not to yield to the apparently overwhelming might of the enemy. LG took out a few cleverly placed ads, trolling Samsung’s SIV ads in New York as well.

Acer triples tablet shipment target for 2013

Posted on March 12, 2013 by - News, Products

acer-logo-ceAlthough Acer is still one of the world’s leading PC makers, it hasn’t had much luck in the tablet market. The same goes for most PC makers, but things could be about to change. Acer has tripled its tablet shipment target for 2013 and unsurprisingly it aims to focus on cheap gear. 

According to Focus Taiwan, Acer’s tablet shipments in the current quarter could reach 65 percent of its total tab shipments in 2012. Back in February Acer said it would ship about 5 million tablets this year, up from 1.8 million units shipped in 2012.

The biggest seller is the Iconia B1, an entry level 7-incher with a price tag of just $150. Acer President Jim Wong pointed out that the Iconia B1 is part of a wider product line and not the only model, which means more cheap Acer tablets are in the works.

“We expect this year’s shipments to grow 3.5 times from last year,” he told a press briefing.

The cheap Iconia B1 is expected to account for 15 to 20 percent of Acer’s tablet shipments this year. The company said it would introduce new models with 8-inch and 10-inch screens by Q3, with prices starting at about $200.

The global tablet market is expected to grow to 240 million units this year, outselling traditional notebooks by more than 30 million units.

HTC struggles to stay afloat despite top notch products

Posted on March 7, 2013 by - Opinions, Products

htc-quietly-going-underHTC was one of the first smartphone makers to cash in on the Android craze a couple of years ago, but the good times are long gone and if its fortunes don’t turn around soon, it might be up for sale, or worse.

Back in 2010 and the first half of 2011, HTC was the darling of tech hacks and investors alike. It was posting strong sales, with triple digit revenue growth for four consecutive quarters. However, it has been downhill ever since.

On Wednesday HTC announced that its sales in February dropped a whopping 44 per cent year-on-year and 27 per cent compared to January. At the moment, HTC’s market cap is roughly one fifth of what it was in mid-2011.

So what on earth went wrong, and what led to HTC’s annus horribilis last year?

It wasn’t the products. Last year HTC decided to focus on fewer phones, which seemed like a logical step for a small outfit, as it could allocate its resources more efficiently and turn itself into an upmarket brand. The resulting One series phones got stellar reviews, but the positive vibe did not result in strong sales. HTC’s flagship One X featured a better screen than its arch nemesis, the Samsung Galaxy S3. It also looked a bit nicer and its build quality was vastly superior. In terms of hardware and software, it was on a par with Samsung’s S3 juggernaut. The same is true of other HTC phones.

For years HTC was viewed as a geeky smartphone brand with excellent but somewhat dull products. It tried to shake off this perception by introducing a bit more flare to its smartphone designs and then there was the ill-conceived Beats Audio deal. Clearly, it didn’t help. Worse, Samsung’s approach of flooding the market with countless Galaxy models worked like a charm. Instead of diluting the Galaxy brand with cheap, plasticky phones, Samsung managed to get more brand recognition than Google’s Android OS. Galaxy has become synonymous with Android, and then some.

HTC’s new flagship, dubbed One sans suffix, is already getting great reviews. It features a 4.7-inch 1080p display, Qualcomm’s Snapdragon 600 processor, which is the fastest currently available mobile chipset, along with an innovative Ultrapixel camera and a new dual-membrane microphone. It ticks all the right boxes and should be able to take on anything Samsung, LG or Sony could throw at it.

Sadly though, that is not enough. HTC simply can’t sell its gear or get its message across. It lacks the resources of consumer electronics giants, so it can’t market its products as effectively and it can’t get sweetheart carrier deals like big players. What’s more, smartphones have already gone mainstream and HTC simply lacks the brand recognition of more consumerish brands. Geeks might love HTC phones, they can get very positive reviews, but mainstream consumers just don’t care. They don’t read tech sites and they buy Samsungs instead.

So although HTC pioneered Android phones and although it still has excellent products, it could get the unflattering distinction of being the first Android smartphone maker to go out of business, in the middle of a mobile boom and with very little fault of its own.

LTE smartphone shipments surge 1100% in Q4 2012

Posted on March 6, 2013 by - News, Products

LTE-logoThe smartphone market is slowly maturing and overall handset sales, including feature phones, remained flat in the fourth quarter of 2012. However, sales of LTE enabled devices skyrocketed in developed markets.

According to Strategy Analytics, shipments of 4G smartphones grew by 1100 per cent in Q4 2012.

The surge was led by Apple and Samsung, while at the same time shipments of 3G phones slowed. The trend coincides with an aggressive carrier push in Europe, including the UK.

Just a year ago, LTE connectivity was reserved for high end smartphones, but the mobile landscape is changing and even cheaper SoCs now offer integrated LTE. Qualcomm leads the way with last year’s Krait-based Snapdragon S4 chips, along with new “century series” Snapdragons coming on line right now. Apple already has LTE in current generation products, although older 4-series iPhones lack LTE support. By the end of the year Nvidia will introduce the Tegra 4i, its first SoC with integrated LTE, and Intel also plans to deliver LTE in its next generation mobile chips, coming in early 2014.

In terms of volume, smartphones are expected to overtake feature phones this year, which means plenty of mid-range LTE smartphones will find their way to consumers’ pockets. Although LTE is expected to be the fastest growing WWAN technology in history, it is still off to a slow start in many markets, including Britain. According to its last earnings report, Everything Everywhere didn’t add many 4G users since it launched its 4GEE network. However, things are picking up and other carriers will enter the market later this year, although Ofcom failed to raise plenty of cash on its 4G spectrum auction.

Smartphones will outpace feature phones in 2013

Posted on March 5, 2013 by - News, Products

nexus4-ceSmartphones have become so affordable and readily available in all markets that they are finally expected to outsell feature phones this year. It is not a “nobody expects the Spanish Inquisition” sort of thing, since smartphone shipments have gone from strength to strength for years.

IDC’s latest report forecasts that 918.6 million smartphones will be shipped this year, accounting for 50.1 percent of all mobile phone shipments.

The research outfit says it based its predictions on falling prices of smartphones and increased consumer interest, which probably has something to do with the fact that smartphones are getting dirt cheap. With 4G services being rolled out in major markets, IDC expects smartphone shipments to hit 1.5 billion units by 2017.

China is expected to be the biggest market in 2013, as IDC estimates it will gobble up 301.2 million smartphones. The US ranks second with 137.5 million, way ahead of the UK and Japan, tied in third place with 35 million, reports The Next Web. 

The BRIC march continues in fifth and sixth spot, which will go to Brazil and India respectively. However, by 2017 India will rank third and consume 155.6 million smartphones. Brazil will see plenty of growth as well, going from 28.9 million to 66.3 million units by 2017.

In other words, smartphone makers will have to start designing more devices with emerging markets in mind, which means we might see a bit more emphasis on value moving forward.