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September update: Qualcomm’s smartphone AP revenues declined 17% year-over-year in the second quarter of 2015, Strategy Analytics estimated. Qualcomm maintained its smartphone AP market share leadership with 45% revenue share, followed by Apple with 19% revenue share and MediaTek with 18% revenue share. For the rest 18%: After a difficult 2014, Samsung LSI continued to recover and more than doubled its smartphone AP shipments in the second quarter of 2015 compared to the same period last year. Samsung LSI capitalised on its Galaxy S6 design-win in Q2 2015. In addition the company featured in multiple mid-range smartphones from Samsung Mobile. Full report: Smartphone Apps Processor Market Share Q2 2015: Samsung LSI Maintains Momentum
… The global tablet AP market declined 28% year-over-year to reach US$679 million in the second quarter of 2015, according to Strategy Analytics. Apple, Intel, Qualcomm, MediaTek and Samsung LSI captured the top-five revenue share rankings in the market during the quarter. Apple led the tablet AP market with 27% revenue share, followed by Intel with 18% revenue share. Qualcomm ranked number three, narrowly behind Intel. Full report: Tablet Apps Processor Market Share Q2 2015: Apple and Intel Maintain Top Two Spots
Digitimes Research saw global tablet shipments fall to 45.76 million units in second-quarter 2015, showing a 10% decrease on quarter and representing more than a 15% decrease on year. Full report: Global tablet market – 2Q 2015 End of September update
Investors.com comments on tablet and smartphone market trends — Q2’2015:1. Apple, Samsung lose ground in tablet market — LG and Huawei gain
2. Apple, Huawei [and Xiaomi] buck slowing smartphone sales trend
As the commenting articles by Investors.com are based on press releases of 2 market research companies I will give the web reference here for those press releases themselves, as well as 3 other press releases not commented on by Investors.com (if there are trend indications in the press releases themselves I will copy them alongside the web reference):
- July 29, 2015: Worldwide Tablet Market Continues to Decline; Vendor Landscape is Evolving, According to IDC“Longer life cycles, increased competition from other categories such as larger smartphones, combined with the fact that end users can install the latest operating systems on their older tablets has stifled the initial enthusiasm for these devices in the consumer market,” said Jitesh Ubrani, Senior Research Analyst, Worldwide Mobile Device Trackers. “But with newer form factors like 2-in-1s, and added productivity-enabling features like those highlighted in iOS9, vendors should be able to bring new vitality to a market that has lost its momentum.”
- July 30, 2015: Huawei Becomes World’s 3rd Largest Mobile Phone Vendor in Q2 2015 [says Strategy Analytics]
- Woody Oh, Director at Strategy Analytics, said, “… Smartphones accounted for 8 in 10 of total mobile phone shipments during the quarter. The 2 percent growth rate of the overall mobile phone market is the industry’s weakest performance for two years, due to slowing demand for handsets in China, Europe and the US.”
- Neil Mawston, Executive Director at Strategy Analytics, added, “… Samsung has stabilized volumes in the high-end, but its lower-tier mobile phones continue to face intense competition from rivals such as Huawei in Asia. … Apple outperformed as consumers in China and elsewhere upgraded to bigger-screen iPhone 6 and 6 Plus models.”
- Ken Hyers, Director at Strategy Analytics, added, “… Huawei is rising fast in all regions of the world, particularly China where its 4G models, such as the Mate7, are proving wildly popular. Huawei has finally overtaken Microsoft to become the world’s third largest mobile phone vendor for the first time ever.”
- Neil Mawston, Executive Director at Strategy Analytics, added, “Microsoft shipped 27.8 million mobile phones and captured 6 percent marketshare worldwide in the second quarter of 2015. Microsoft’s 6 percent global mobile phone marketshare is sitting near an all-time low. Microsoft continues to lose ground in feature phones, while its Lumia smartphone portfolio is in a holding pattern awaiting the launch of new Windows 10 models later this year. Xiaomi shipped 19.8 million mobile phones and captured 5 percent marketshare worldwide in Q2 2015. Xiaomi remains a major player in the China mobile phone market, but its local and international growth is slowing and Xiaomi is facing intense competition from Huawei, Meizu and others. As a result, Xiaomi may struggle to hold on to its top-five global mobile phone ranking in the coming quarters.”
- June 17, 2015: Business smartphones shipments in Q1 up 26% from last year, now 27% of total smartphone market [says Strategy Analytics]
Android was the most dominant OS in terms of business smartphone shipments in Q1, accounting for nearly 60% of all business smartphones (corporate- and personal-liable). It was also the dominant BYOD device; 68% of personal-liable shipments in Q1 were Android. Apple iOS accounted for only 27% of BYOD shipments in Q1, but was the dominant platform in terms of corporate-liable smartphones, with 48% of Q1 CL shipments. The difference in Android/iOS shipments between the CL and IL categories reflects the continuing corporate perception that iPhones are “safer” than Android-based devices.
- Shipments of personal-liable smartphones (i.e. “bring your own device,” or BYOD, phones) drove market growth in Q1
- Strategy analytics defines personal-liable devices as devices purchased by the end-user and expensed back to the company or organization, or devices purchased outright by individual users but used primarily for business purposes linking to corporate applications and backend systems.
- While personal liable devices dominate worldwide business smartphone shipments, some regions are more resistant to the BYOD trend than others. Such regions include Western Europe and Central Europe, where corporate-liable devices are the dominant types of business smartphones. In Western Europe in Q1, 61% of the 10 million business smart phones were corporate-liable. Central and Eastern Europe had a slightly higher rate of BYOD devices shipped in Q1 — 41% — but the majority of smartphones shipped in this regions was also corporate-liable. This a sharp contrast to North America, where three-quarters of business smartphone shipments are personal-liable. The trend in Western and Eastern Europe reflects the more corporate-centric approach businesses take to mobility in these regions.
- July 29, 2015: Mobile Broadband Tablet Subscriptions to Double to 200 Million by 2021, says Strategy Analytics
- Strategy Analytics forecasts global mobile data subscriptions on tablets will more than double from 2015 to 2021, reaching over 200 million
- Around the globe, over 100 million wireless connections on cellular enabled tablets will be added through 2021. By 2021 tablets will only account for 2 percent of total mobile subscriptions, a 2.7 percent population penetration rate.
- July 29, 2015: Intel Maintains Top Spot in Non-Apple Tablet Apps Processors in Q1 2015 says Strategy Analytics
⇒The global tablet applications processor (AP) market declined -6 percent year-over-year to reach $733 million in Q1 2015
- According to Sravan Kundojjala, Associate Director, “Intel maintained its top spot in the non-Apple tablet AP market in unit terms in Q1 2015. Strategy Analytics estimate Android-based tablets accounted for over 70 percent of Intel’s total tablet AP shipments in Q1 2015. We expect Intel’s Atom X3 cellular tablet chip product line to help Intel maintain its momentum in the tablet AP market.”
- Stuart Robinson, Executive Director of the Strategy Analytics Handset Component Technologies (HCT) service added, “Strategy Analytics estimates that baseband-integrated tablet AP shipments accounted for over one-fourth of total tablet AP shipments in Q1 2015, helped by a strong push from Qualcomm, MediaTek and Spreadtrum. We expect continued momentum for integrated APs as Intel, Rockchip and others join the bandwagon.”
- July 30, 2015: Windows Tablet Shipments Nearly Double in Q2’15, says Strategy Analytics
⇒Global Tablet Shipments and Market Share in Q2 2015 (preliminary)
- Windows-branded Tablets comprised 9 percent of shipments in Q2 2015, up 4 points from Q2 2014
- Android-branded Tablet shipment market share was flat at 70 percent in Q2 2015
- Apple continued its slide in market share down to an all-time low of 21 percent in Q2 2015, 4 points lower than Q2 2014
- Vendors with strong 3G and LTE connected Tablet strategies such as Huawei, LG, and TCL-Alcatel gained market share as leaders like Apple, Samsung, and the White Box community lost ground
Tablet & Touchscreen Strategies Senior Analyst Eric Smith added, “Windows share continues to improve as more models become available from traditional PC vendors, White Label vendors, and Microsoft itself though a healthy Surface lineup and distribution expansion. The key going forward will be if the coming wave of 2-in-1 Detachable Tablets is a hit with consumers or if they go the way of the Netbook—we remain cautiously optimistic on this point.”
Tablet & Touchscreen Strategies Service Director Peter King said, “Apple’s fortunes will turn around soon as it will launch the 12.9-inch iPad Pro as well as an iPad mini 4 in Q4 2015. New features in iOS 9, which are exclusive to iPad such as multi-tasking and a more convenient soft keyboard, will also help compel upgrades by owners of older iPad models. Meanwhile, Huawei and LG have posted fantastic growth primarily due to well-executed 3G and LTE connected Tablet strategies.”
Then I will add 2 additional information pieces from Strategy Analytics:
Having experienced negative growth since 2012, global PC sales are expected to rise 5 percent in 2015 driven by replacement of an ageing installed base according to Strategy Analytics’ Connected Home Devices (CHD) service report, “Computers in the Post-PC Era: Growth Opportunities and Strategies.”
Click here for the report:
- PC sales will fall by 4 percent in 2014 before returning to modest growth in 2015 and beyond to support replacement demand.
- Strategy Analytics’ consumer research of computing device usage in developed markets indicates that PCs remain essential computing devices despite healthy Tablet sales.
- Frequent Tablet usage has grown by 22 percentage points from 2011 to Q4 2013 up to 32 percent of all households while frequent Mobile PC (excluding Tablets) usage has stayed steady through this period, as 63 percent of all households indicated they frequently used Mobile PCs.
- Frequent usage of all PCs (including Mobile and Desktop PCs and excluding Tablets) remained above the 90 percent mark of all households, falling only 3 percentage points during this period.
Eric Smith, Analyst of Connected Home Devices, said: “Multiple PC ownership is falling as Tablet sales supplant replacement demand for secondary PCs mainly used for casual tasks. Still, PCs will remain essential devices as households eventually replace their primary PCs used for productivity tasks such as spreadsheet and video editing or personal banking.”
David Watkins, Service Director, Connected Home Devices, added: “The modern Tablet user experience is quickly arriving on the PC thanks to more affordable 2-in-1 Convertible PCs and new operating systems which blend traditional PC and Tablet user experiences. We see development of these forces aligning perfectly with an older PC installed base ripe for replacement in 2015.”
May 1, 2015: Children Change Disney’s Digital Strategy: “App TV” Now Central To Content Planning by David Mercer
Multiscreen TV behaviour is at the centre of television’s stormy transformation – viewing of broadcast, linear TV on the TV screen is apparently in decline while consumption on smartphones and tablets is increasing. Making sense of the big picture is increasingly challenging, and legacy players like broadcasters and the major content owners are inevitably somewhat resistant to the idea that their traditional businesses are under serious threat.
We have monitored the early stages of this transformation for the past decade and see its results in our own research, and we continue to predict further industry disruption in our forecasts. But sometimes it is only when you hear the evidence given in person by a senior executive at a leading global player that the scale of the challenge and opportunity are finally brought home.
This happened at last week’s AppsWorld event in Berlin, where I chaired the TV and Multiscreen conference. The speaker was Andreas Peters, Head of Digital for the Walt Disney Company Germany, Austria and Switzerland. Andreas presented some of the most compelling evidence I have yet heard that television is truly a multiscreen medium for the next generation of viewers.
Disney’s challenge in Germany was to launch a television show called Violetta aimed at 8-12 year old girls. It had been introduced successfully in Argentina but had failed in the UK. As it often does, Disney had invested considerable amounts in merchandising and retailers were eagerly anticipating sales of the new product lines. The show was first broadcast on German free TV on May 1st 2014 but it achieved only very low ratings.
The question for Disney managers was whether traditional TV had stopped working. A crisis meeting was held with a view to writing off the investment. Disney had previously not made its shows available online in Germany but the Violetta situation was so serious they were persuaded to experiment. Two episodes were made available on Youtube with a link to Disney’s own website. Viewing of the content on Youtube very quickly went viral until Disney had achieved a reach of 50% of 8-12 year old girls and eight million views. Violetta went on to become a success in German-speaking markets.
The evidence was clear: for some shows at least, younger children cannot now be reached using the traditional broadcast TV/big screen model. Peters explained that the Violetta experience was transformative for the Disney organisation and led to the inclusion of online and digital media as a key element in the business case for many products. In fact it also led to the development and launch of Disney’s own Watch App, which includes live streaming and seven-day catch-up programmes from the broadcast Disney Channel.
Even after the Violetta experience Disney was sceptical that an app was needed – there was a feeling that the website would be sufficient. Nevertheless the app was launched and Disney had planned for 20,000 downloads. Instead it has passed one million downloads in its first six months. Peters noted: “This was a real shock for us. We completely underestimated the demand.” Around 500,000 viewers are now using the Disney Watch app for linear television viewing, in addition to millions of shows being downloaded for catch-up viewing. Peak app viewing hours are between 6am and 8am and then between 1pm and 9pm on school days, with a different pattern at weekends. Peters made it clear that children did not want lots of features built in to the app – just like TV, they just want to hit “play” and watch.
“Our TV colleagues of course don’t want to believe this,” said Peters. “But the world has changed and it will continue to change.” Disney has also seen a knock-on effect from its app launch with an increase in free-to-air broadcast TV viewing. But the firm is now clear that mobile is not just an add-on to TV or a promotional tool; it must be an integral part of the entire process.
There are many implications for content strategy. TV and Digital have to “understand each other”, which is a challenge when the KPIs in each world are very different. As we have often heard, the video industry is crying out for a set of common metrics which can apply and support advertisers in both TV and online worlds. Video consumption patterns vary and different content may be relevant to different platforms.
But the overall lesson is clear: “TV” is not just the big screen in the corner of the living room. It must embrace multiscreen distribution strategies in order to reach its maximum potential. TV companies are betraying their audiences and their investors if they don’t target the 6.4bn addressable screens available to them.
Multi-tasking and multi-window view used together for high performance productivity scenarios in the state-of-the-art UX environment of Microsoft Windows 8.1 – the ultimate solution not available with Apple and Android devices
The versions of multi-tasking and multi-window view in Windows 8.1 are already the second generations of the concept which first appeared during the preview of Windows 8 in September, 2011. Properly designed applications relying on them can not only be run simultaneously but also can manifest themselves at the same time on up to 4 independent parts of a single screen, as well as extended by using any number screens where there are additional monitors connected to the system. That capability not only enables much higher performance productivity scenarios than before with the first version (i.e. in Windows 8), but the number of possible scenarios can be significantly higher and more complex.
This is especially important as – unlike the current iPad and Android system – application developers could plan their individual apps as part of a growing society of apps (delivered usually by 3d parties) which can be used together with some companion apps simultaneously, constituting together a given scenario actually created by the user himself or herself. This is very much a workstation like environment already found in classic GUI based workstations, but now inside such a state-of-the-art UX environment as that of Microsoft Windows 8.1.
Acknowledgement: I should thank Zsolt Bátorfi from the DPE (Developer and Platform Evangelism) unit of Microsoft Hungary for his invaluable input to this post.
The quite simplistic iPad and Android environments are mainly satisfying the entertainment scenarios only. So the 2nd generation Microsoft Surface family of productivity tablets priced upto $2420 (when for an All-in-One configuration) [‘Experiencing the Cloud’, Sept 24, 2013] was rightfully positioned against them as there is a growing demand on the market which is not served by any other platform. The same applies to the upcoming Windows 8.1 devices from the 3d party vendors.
There will be entry level products like the $349 ASUS Transformer Book T100 which was already shown as part of The long awaited Windows 8.1 breakthrough opportunity with the new Intel “Bay Trail-T”, “Bay Trail-M” and “Bay Trail-D” SoCs? [‘Experiencing the Cloud’, Sept 14, 2013] delivered by Intel. With that the growing but still unsatisfied demands could be fulfilled by starting at sufficiently competitive levels in terms of Android entertainments devices from major global vendors, even more so in terms of Samsung devices.
I put together this post in order to understand this additional (to Intel Bay Trail and Haswell SoCs) breakthrough opportunity as clearly as only possible.
We’re also making improvements for using multiple apps at once in Windows 8.1.
Windows 8.1 brings variable, continuous size of snap views. You will have more ways to see multiple apps on the screen at the same time. You can resize apps to any size you want, share the screen between two apps, or have up to four apps on screen. If you have multiple displays connected, you can have different Windows Store apps running on all the displays at the same time and the Start Screen can stay open on one monitor. This makes multi-tasking even easier. Also in Windows 8.1, you can have multiple windows of the same app snapped together – such as two Internet Explorer windows.
And it was showcased last time with Windows 8.1 as Microsoft Surface 2 Halo Spartan Assault Gaming and Office Suite Multitasking Demo [HotHardware YouTube channel, Sept 25, 2013]
Compare this to the previous generation hardware and software Microsoft Surface RT – True Multitasking Demo [MyWorldOfIT YouTube channel, Nov 2, 2012] with Windows 8.0 which a common Android tablet or iPad still cannot do (except some Samsung GALAXY devices still in a limited split screen fashion, as noted a little later)
which was described in Design case study: iPad to Windows Store app [MSDN, March 21, 2012] as
Use snap view to engage your users
Windows 8 lets users multitask by “snapping” an app next to another app. The snapped view is a great way to increase the app’s time on screen and engage users for longer periods. It’s easy for a user to change the main app and the snapped app by manipulating the splitter between the two, so it is important to maintain context across resizes. We don’t want users to lose app state as a result of resizing their app.
Windows Store app
The snap view of the home screen is just a different view of the home page where a user can still access the same content.
In snap view, a user pans vertically to get to more content because it is more comfortable to pan along the long edge. This is different than the horizontal panning in full view, which is also optimized to pan along the long edge.
Note that Samsung was quick to employ this single concept in its forked Android solution, first in Multiscreen – GALAXY Note 10.1 – Samsung [SAMSUNGMOBILEUK YouTube channel, Oct 12, 2012] and then later in GALAXY Note II and Note 3 phablets, and in the Note 8.0 tablet and GALAXY S4 smartphone, where it was called Multi Window (also for Note 10.1), but just for two applications at the same time for which the device screen is split into two parts. See also Samsung GALAXY Note 10.1 Has Arrived Game-Changing Device Hits U.S. Store Shelves Tomorrow [Samsung Mobile Press, Aug 15, 2012]. Not for all GALAXY devices!
And here is a rare recognition of the fact that Yes, the Microsoft Surface RT tablet is much better than Android or iPad Tablets [GodGunsGutsGlory4KJV YouTube channel, Aug 21, 2013]
I held off from buying a Microsoft Tablet and bought an Android Tablet after listening to some flawed and rather biased reviews a while back.
But after being frustrated once again that Android STILL CAN’T MULTITASK while playing videos I went and looked further into the Microsoft Surface RT and bought one.
There are several popular youtube videos comparing the Surface RT to Androids and iPad tablets but evidently either those people don’t know how to run a REAL tablet or they are deliberately skewing the comparisons. Because face it, the Surface RT is much more capable than the Android. And the Surface Pro of course is a full powered laptop but with less battery life and cost a pretty penny/ So for what I want in a tablet I got a Surface RT and it is great!
As I said, the most of the reviews that came up in search were flawed.
I was watching this pathetic one and should have known better when I saw the username… http://www.youtube.com/watch?v=sYbCfL…
But check out the comments now. LOL! The comments were more helpful than the video.
They talked about some honest review by some Lisa woman so I found this video and it was great… http://www.youtube.com/watch?v=lIOG2V…
So after that I bought one and the Surface RT did what I needed and then some. Like built in Remote Desktop that works just like it did on my Windows 7 laptop so I can log into my home pc while away.
And while most reviews just showed the Surface running the active tiles home screen and launched apps from there they did not demonstrate the Desktop mode which operates it in the more native Windows screen that people are used to which is where you can open windows and navigate the machine or use full Internet Explorer 10.
Anyway I am ranting again… and that’s what this video is. It is more of a RANT and a warning to others to be careful with the biased reviews. I give a two thumbs up to this tablet!
No wonder that Microsoft started to highlight the multitasking advantage in this recent video about Surface RT vs. iPad [Windows YouTube channel, Aug 7, 2013], see the part starting at [0:43] under the title “Multitask” and noting that:
One app at a time [on iPad] vs. Do multiple things at once [on Surface RT]
Design, technology and business background for the above differentiation
Microsoft design principles (Windows) [MSDN, March 8, 2013]
Here are five principles for building great Windows Store apps. Use these principles when you plan your app, and always ensure that your design and development choices live up to them.
Pride in craftsmanship Be fast and fluid Authentically digital Do more with less Win as one
- Use the UI model.
- Work with other apps to complete scenarios by participating in app contracts.
- Use our tools and templates to promote consistency.
Work with other apps, devices, and the system to complete scenarios for people. For example, let people get content from one app and share it with another. Take advantage of what people already know, like standard touch gestures and charms, to provide a sense of familiarity, control, and confidence.
Following these five Microsoft design principles will help you make the best choices when you design your app.
A very important example of “Work with other apps to complete scenarios“ is the multitasking which became available in the first version of Windows 8, and had been significantly enhanced in the recent second version:
Jensen Harris on productivity and multitasking from Tami Reller: Worldwide Partner Conference 2013 Keynote [transcript provided by Microsoft, July 8, 2013]
The desktop in Windows is the single most powerful platform in the world. It is the only platform in which you can run Photoshop and Lightroom and AutoCAD and Visual Studio and Office all in one platform. And we really wanted to bring together the best of the modern UI and the best of the desktop UI and harmonize them in Windows 8.1.
So the first thing that you’ll notice is that we’ve made it really easy to get to the Start screen in 8.1 with the addition of the Start button. (Laughter, applause.)
So when I click this, this is not just your father’s Start button, this actually floats in the tiles on top of the desktop. So you get this beautiful look of your desktop. You don’t lose context of what you’re working on. It just comes in over top and then floats away.
And you can see we’ve done a lot of work here to make your Start screen be ultra-efficient. We’ve got the small tiles, we’ve got the groups, we’ve got the large tiles that allow you to create, together with new enterprise custom ability and control that we’re giving over the Start screen in Windows 8.1 for you to create an awesome, enterprise consumer dashboard that has all the things that you love in one place.
And of course, one other thing that you can do by default in Windows 8.1 is boot to the desktop if you want as well. And so the whole experience comes together where you have control over the PC.
So we love the desktop and we have made it a lot better. But productivity isn’t just defined by the desktop. The desktop is one way of working. Productivity is defined by robust multitasking, flexibility, efficiency, and having all the apps that you need. And what we’ve done in 8.1 is taken productivity to the next level and brought what was great about the desktop and the things that you could do there and made it even better in the modern UI and optimized it for not just 8-inch tablets, but also large screens, desktops, powerful laptops.
Let me show you some of what we’ve done. So one of the most important apps that exists is mail. This is the new version of the mail app that we have not yet made available publicly, but will be available with Windows 8.1 RTM.
And I’m going to use my mouse here. The first thing you’re going to notice is this power pane here on the left that shows me my folders, it shows me people. I can flag mails very quickly just here in the view — boom, boom, boom, boom, boom — and they’ll show up here in my flag view.
We have my favorite people, all of the mail here, and I also have them split out. Of course I control this. So if I want to put Panos in my list of favorite people, I can do that. If I want to take some people out, I can do that as well.
We’ve also integrated some awesome features to help keep your mail under control. Of course something like drag and drop is really important, and we have all your folders here that you can just directly drag and drop into using your mouse or touch.
We have brought together all of your social updates. So things from Foursquare and Facebook and LinkedIn, these sort of pseudo-spammy, but kind of interesting things and put them in one place so they’re out of your way without needing to set anything up.
And then probably my favorite view here is the newsletter view. And these are also things that sometimes you want to see. Like I love that I have these Living Social deals, but I don’t need to get eight of them a day, I really only need to see the most recent one. And so we’ve integrated a feature called Sweep into the mail app. And what this allows me to do is I can delete all of my Living Social deals. But what’s even cooler is I can say, just delete all of them except for the latest ones. I’m going to hit Sweep, and it’s going to set this up on the server. You’re going to see all of the Living Social deals have disappeared except for the top ones, and it’s always going to make sure that I only have one of these in my inbox from now on. These are some of the ways in which mail makes you more efficient. (Applause.) Thank you.
Another thing, though, that’s really important if you’re being efficient is the keyboard because I don’t know about you, but I do an awful lot with keyboard shortcuts just typing. And I showed you the new search feature, but I haven’t shown you how well it works with the keyboard and how it makes you more efficient.
This new search feature is really the command line for Windows. So I’m just going to type a single — I type “Windows plus S” to bring up search. I’m going to type a single character, “K.” And in doing so, it has brought back apps like Kindle and In the Kitchen, it’s brought back Music, it’s brought back settings like keyboard settings, it’s brought back files, local and in the cloud, it’s brought back Web suggestions, it’s brought back people on my PC. And it’s very, very powerful.
For instance, if I’m just here in mail and I just want to start playing a song, I can just type “K” it brings up the name of the song. I’m just going to hit enter, and it starts playing without even taking me out of the app. Just immediate music playback. So this is one of the examples of how the new Search box makes it possible to do things very, very fast. You will find that this becomes the stickiest feature in Windows 8.1, and you can’t imagine ever living without it.
Another thing that defines productivity is multitasking. And one of the things that I think is really cool about 8.1 is the multi-window view that we have.
So here are a few photos that are attached to a mail. And when I click one of these, notice that it opened up photos side by side with mail. This isn’t some weird preview app that only shows a few file formats or something like this. This is the actual app that is associated with the file extension. And so this could be photos, PDFs, it could be Office, it could be anything. And this happened just automatically.
Another example of this, let me pull this off the screen, and I’m going to show you a link. And when I click this, it’s going to open up IE side by side with mail. You can see that there’s no restriction anymore on just one very small snapped app and then a huge app. We can now use the window 50/50. I can move the snap point so I can make one a little bigger, I can make the other one a little bigger if I want. And it’s not just limited to two apps side by side.
So here in IE, I’m going to right click and do open link in new window. And suddenly, what I have here is two IE windows side by side. (Applause.) Yeah. Suddenly, I have something that is starting to look like a very productive work station. And I can move these windows around, I can put them where I want. We have maximize, we have resize, and all of a sudden you start to realize that there’s more than one way of doing awesome productivity. This uses all the pixels on my PC.
And on this sort of smallish monitor, I can fit three. But if I had something like a 2550 x 1440 monitor, I could show four apps on the screen at once. And all of a sudden, now you’re way more productive than you could have been on the desktop. You’ve got your Twitter feed, you’ve got your full running mail app, you’ve got multiple browser windows or multiple mails up at once.
And it gets even better. If I attach a second monitor, then suddenly I can do the same thing on multiple monitors at once. So I have any collection of apps across my monitors in any configuration I want, any size I want, blending desktop and modern apps across my screens. I can bring the Start screen up on one and just leave it, and this doesn’t just work for two monitors, it works for three, four, five, six, seven, as many as I have. And so this sort of shows the power of Windows 8.1 and the modern UI even on a desktop engineering workstation making you more productive.
And then we think about Windows starting on —
TAMI RELLER: A phone?
JENSEN HARRIS: A phone. On 8-inch tablets, also doing the same multitasking and running all the way up across all of these devices, integrated with Xbox and out to any kind of workstation. And it is pretty fantastic.
You can watch the full Tami Reller keynote about Windows 8.1 Product Enhancements [msPartner YouTube channel, July 9, 2013] presenting the complete high-end differentiation vs. the iPad and Android devices which contains the whole demo by Jensen Harris starting at [21:10] while the above part at [53:10], and the end of the demo is at [1:02:10]:
I came to this after the recent posts of mine (between July 20 and August 17, 2013):
- With Android and forked Android smartphones as the industry standard Nokia relegated to a niche market status while Apple should radically alter its previous premium strategy for long term
- Google Play catchup with iOS App Store and its way of assuring compatibility across Android 1.6 to 4.3
- The Upcoming Mobile Internet Superpower
- China is the epicenter of the mobile Internet world, so of the next-gen HTML5 web
- Superphones turning point: segment satured with Tier 1 globals while the Chinese locals are at less than 40% of the Samsung price
- Xiaomi, OPPO and Meizu–top Chinese brands of smartphone innovation
- GiONEE (金立), the emerging global competitor on the smartphone market
- Eight-core MT6592 for superphones and big.LITTLE MT8135 for tablets implemented in 28nm HKMG are coming from MediaTek to further disrupt the operations of Qualcomm and Samsung
as well as after the accumulated contents of my separated website on the whole issue of ‘USD99 Allwinner’ devoted to a multifaceted disruption to not only the traditional PC market but even to the current tablet market as the analyst companies are viewing that.
Those analyst companies are already hinting indirectly to the possibility of Android (sooner or later) overtaking the overall PC market via the following headlines which I derived from their recent press release contents:
- IDC: ‘Tablets will surpass portable PC volumes already this year’
- Gartner: ‘Traditional PC shipments to decline as tablets are becoming the primary consumption device’
- Digitimes Research: ‘Overtaking iPad will happen in 2H13’
- Canalys says ‘Yes’
- EnfoDesk (Analysys International) from China says ‘For sure, as it is already happening against the iPad in China even at a nascent stage of the local tablet market’
You can read those release in the detailed sections given below.
Before that first note: Everything is rooted in the established fact that: TrendForce: iPad Marked Historically Low Market Share 35% of Global Q2 Tablet Shipment [press release, July 25, 2013] (although the exact number differs between the different market research organisations, as you will see in the detailed sections below)
According to the survey by WitsView, the display research division of the global market intelligence provider TrendForce, the global shipment of the 7” tablets with WSVGA resolution and above attained 41.1 million units, dropping 12.4% from the previous quarter. The seasonal factor, the generation shuffles for some mainstream products, and the inventory adjustments amid the weakening sales were all key reasons for declining shipments.
WitsView’s research director Eric Chiou says that Apple, as one single brand that controls the most volumetric tablet shipment, saw its 9.7” iPad entering the end of life cycle in Q2, and iPad mini’s relatively selling prices caused slow sales and the impacts from the inventory adjustments, leading to a dropping shipment of 14.6 million units compared with 19.5 million units in Q1. On top of the quarterly drop as high as 25%, its market share has dropped to 35.5%, the new historical low.
Samsung’s ambition of boosting the tablet shipment was also shown on the Q2 shipment. Despite its slightly decreased shipment of 8.8 million units from the previous quarter, the Korean maker’s market share, supported by the newly launched 8” model, grew from 20.2% to 21.5%, still a remarkable result. As for the two leading PC brands, Asus and Acer, their business cores both were placed on the under-$130 7” products, and the price-cutting strategy helped them become the two of a few brands counter to the declining trend, seeing excellent QoQ growth of 60% and 36%, respectively.
“The two long-term winners of the entry-level tablet segment, Amazon and Google, showed unideal shipment results, holding shipment volumes of only 1.1 million and 0.9 million units, respectively,” Chiou indicates. Amazon’s 2013 new models are all concentrated after September and the brand is in an empty-product period, while Google’s fighter model Nexus 7 had the 1st generation approach the end of life cycle in Q2 and saw a significantly dropping shipment. The single-quarter shipment will bounce back to more than 2 million units in Q3 as the 2nd generation product is projected to ship smoothly.
The white-box tablet couldn’t avoid the decline in Q2. The price increases and the short supply for the key component RAM led to double strikes of cost increase and insufficient supply to white-box tablets that had smaller production scales, in addition to brands’ strongly promoted entry-level tablets that squeezed their room for survival. Under both the internal and external impacts, the white-box tablet saw a shipment volume of only 9.7 million units, declining 7% QoQ
Based on WitsView’s analysis, on top of Amazon’s yearly new 7” model and the 2nd generation of Nexus 7, several highly-anticipated models will be revealed in Q3, including Apple’s heavyweight Generation 5 iPad and the new Android 10.1” tablet intensively designed by PC brands. With the stimulation of improved spec and tempting prices, the Q3 shipment is projected to reach an amount of 49.6 million units, challenging a QoQ growth of 21%. The tablet shipment for the entire 2013 is estimated at 196.5 million units, including 153.2 million units of brand tablets and 43.3 million units of white-box tablets.
The second well established fact affecting the future is that Surface RT was a huge market failure first recognized indirectly via the FORM 10-K submission of the Microsoft on July 18, 2013.
… The general availability of Surface RT and Windows 8 started on October 26, 2012. The general availability of Surface Pro started on February 9, 2013. …
ITEM 6. SELECTED FINANCIAL DATA
… includes a charge for Surface RT inventory adjustments recorded in the fourth quarter of fiscal year 2013, which decreased operating income by $900 million, net income by $596 million, and diluted earnings per share by $0.07. …
RESULTS OF OPERATIONS
- Cost of revenue increased $2.7 billion or 16%, reflecting increased product costs associated with Surface and Windows 8, including an approximately $900 million charge for Surface RT inventory adjustments, higher headcount-related expenses, payments made to Nokia related to joint strategic initiatives, royalties on Xbox LIVE content, and retail stores expenses, offset in part by decreased costs associated with lower sales of Xbox 360 consoles and decreased traffic acquisition costs.
- Sales and marketing expenses increased $1.4 billion or 10%, reflecting advertising of Windows 8 and Surface.
Fiscal year 2013 compared with fiscal year 2012
Windows Division revenue increased $839 million. Surface revenue was $853 million. …
Cost of revenue increased $1.8 billion, reflecting a $1.6 billion increase in product costs associated with Surface and Windows 8, including a charge for Surface RT inventory adjustments of approximately $900 million. Sales and marketing expenses increased $1.0 billion or 34%, reflecting an $898 million increase in advertising costs associated primarily with Windows 8 and Surface.
The possibility of such failure was already recognized in my other posts:
- Microsoft Surface with some questions about the performance and smoothness of the experience [Nov 12 –28, 2012]
- Steven Sinofsky, ex Microsoft: The victim of an extremely complex web of the “western world” high-tech interests [Nov 13-20, 2012]
IDC: ‘Tablets will surpass portable PC volumes already this year’
IDC Forecasts Worldwide Tablet Shipments to Surpass Portable PC Shipments in 2013, Total PC Shipments in 2015 [press release, May 28, 2013]
According to a new forecast from the International Data Corporation (IDC) Worldwide Quarterly Tablet Tracker, tablet shipments are expected to grow 58.7% year over year in 2013 reaching 229.3 million units, up from 144.5 million units last year. IDC now predicts tablet shipments will exceed those of portable PCs this year, as the slumping PC market is expected to see negative growth for the second consecutive year. In addition, IDC expects tablet shipments to outpace the entire PC market (portables and desktops combined) by 2015. (A press release summarizing IDC’s latest PC market forecast can be found here.)
“What started as a sign of tough economic times has quickly shifted to a change in the global computing paradigm with mobile being the primary benefactor,” said Ryan Reith, Program Manager for IDC’s Mobility Trackers. “Tablets surpassing portables in 2013, and total PCs in 2015, marks a significant change in consumer attitudes about compute devices and the applications and ecosystems that power them. IDC continues to believe that PCs will have an important role in this new era of computing, especially among business users. But for many consumers, a tablet is a simple and elegant solution for core use cases that were previously addressed by the PC.”
While Apple has been at the forefront of the tablet revolution, the current market expansion has been increasingly fueled by low-cost Android devices. In 2013, the worldwide average selling price (ASP) for tablets is expected to decline -10.8% to $381. In comparison, the ASP of a PC in 2013 is nearly double that at $635. IDC expects tablet prices to decline further, which will allow vendors to deliver a viable computing experience into the hands of many more people at price points the PC industry has strived to meet for years.
“Apple’s success in the education market has proven that tablets can be used as more than just a content consumption or gaming device,” said Jitesh Ubrani, Research Analyst for the Worldwide Quarterly Tablet Tracker. “These devices are learning companions, and as tablet prices continue to drop, the dream of having a PC for every child gets replaced with the reality that we can actually provide a tablet for every child.”
In addition to lower prices, another major shift in the tablet market has occurred around screen sizes. Apple’s first generation iPad, which included a 9.7-inch display, was perceived by many as the sweet spot for tablets. That is, until 7-inch Android-based tablets began to gain traction in the market. Apple responded with the iPad mini in the fourth quarter of 2012, and in the space of two quarters the sub-8-inch category exploded to overtake the larger-sized segment in terms of total shipments.
Worldwide Tablet Market Share by Screen Size Band, 2011 – 2017
8″ – 11″
Source: IDC Worldwide Tablet Tracker, May 28, 2013.
* Forecast Data
- Shipments include shipments to distribution channels or end users. OEM sales are counted under the vendor/brand under which they are sold.
- IDC considers all LCD-based slate devices with screens between 7 and 16 inches as tablets, regardless of whether or not they include a removable keyboard (such as the Surface RT). Convertible devices with non-removable keyboards (such as Lenovo’s Yoga) are not counted as Tablets.
As expected, worldwide tablet shipment growth slowed in the second quarter of 2013 (2Q13), according to preliminary data from the International Data Corporation (IDC)Worldwide Quarterly Tablet Tracker. Worldwide tablet shipments finally experienced a sequential decline as total volumes fell -9.7% from 1Q13. However, the 45.1 million units shipped in the second quarter was up 59.6% from the same quarter in 2012, when tablet vendors shipped 28.3 million devices.
Lacking a new product launch in March to help spur shipments, Apple’s iPad saw a lower-than-predicted shipment total of 14.6 million units for the quarter, down from 19.5 million in 1Q13. In years past, Apple has launched a new tablet heading into the second quarter, which resulted in strong quarter-over-quarter growth. Now, Apple is expected to launch new tablet products in the second half of the year, a move that better positions it to compete during the holiday season. Meanwhile, the other two vendors in the top 3 also saw a decline in their unit shipments during the quarter. Second-place Samsung shipped 8.1 million units, down from 8.6 million in the first quarter of 2013, although up significantly from the 2.1 million units shipped in 2Q12. And third-place ASUS shipped a total of 2.0 million units in 2Q13, down from 2.6 million in 1Q13.
“A new iPad launch always piques consumer interest in the tablet category and traditionally that has helped both Apple and its competitors,” said Tom Mainelli, Research Director, Tablets at IDC. “With no new iPads, the market slowed for many vendors, and that’s likely to continue into the third quarter. However, by the fourth quarter we expect new products from Apple, Amazon, and others to drive impressive growth in the market.”
Not all vendors experienced a slowdown during the quarter. PC stalwarts Lenovo and Acer both re-entered the top five this quarter. Lenovo continued to make headway into the world of mobility and for the first time had shipments surpass the million unit mark in a quarter, shipping a total of 1.5 million devices. This was up 313.9% from a year ago and enough to capture 3.3% market share. Rounding out the top 5 was Acer, which shipped 1.4 million tablets in 2Q13 for 247.9% year-over-year growth and an increase of 35.4% over the first quarter of 2013.
“The tablet market is still evolving and vendors can rise and fall quickly as a result,” said Ryan Reith, Program Manager for IDC’s Mobility Tracker programs. “Apple aside, the remaining vendors are still very much figuring out which platform strategy will be successful over the long run. To date, Android has been far more successful than the Windows 8 platform. However, Microsoft-fueled products are starting to make notable progress into the market.”
Top Five Tablet Vendors, Shipments, and Market Share, Second Quarter 2013 (Shipments in millions)
2Q13 Unit Ship-ments
2Q13 Market Share
2Q12 Unit Ship-ments
2Q12 Market Share
Source: IDC Worldwide Tablet Tracker, August 5, 2013.
See additional Table Notes following the last table.
Top Tablet Operating Systems, Shipments, and Market Share, Second Quarter 2013 (Shipments in Millions)
2Q13 Unit Ship-ments
2Q13 Market Share
2Q12 Unit Ship-ments
2Q12 Market Share
4. Windows RT
Source: IDC Worldwide Tablet Tracker, August 5, 2013
- All data are preliminary and subject to change. Vendor shipments are branded shipments and exclude OEM sales for all vendors.
- Some IDC estimates prior to financial earnings reports.
- Shipments include shipments to distribution channels or end users. OEM sales are counted under the vendor/brand under which they are sold.
- IDC considers all LCD-based slate devices with screens between 7 and 16 inches as tablets, regardless of whether or not they include a removable keyboard (such as the Surface RT). Convertible devices with non-removable keyboards (such as Lenovo’s Yoga) are not counted as Tablets.
Gartner: ‘Traditional PC shipments to decline as tablets are becoming the primary consumption device’
Traditional PC Shipments to Decline 10.6 Percent in 2013, While Tablet Shipments Increase 67.9 Percent
Worldwide devices (the combined shipments of PCs, tablets and mobile phones) are projected to reach 2.35 billion units in 2013, a 5.9 percent increase from 2012, according to Gartner, Inc. The market is being driven by sales in tablets, smartphones, and to a lesser extent, ultramobiles, as PC shipments are on the decline.
Worldwide traditional PC (desk-based and notebook) shipments are forecast to total 305 million units in 2013, a 10.6 percent decline from 2012 , while the PC market including ultramobiles is forecast to decline 7.3 percent in 2013 (see Table 1). Tablet shipments are expected to grow 67.9 percent, with shipments reaching 202 million units, while the mobile phone market will grow 4.3 percent, with volume of more than 1.8 billion units. The sharp decline in PC sales recorded in the first quarter was the result in a change in preferences in consumers’ wants and needs, but also an adjustment in the channel to make room for new products hitting the market in the second half of 2013.
“Consumers want anytime-anywhere computing that allows them to consume and create content with ease, but also share and access that content from a different portfolio of products. Mobility is paramount in both mature and emerging markets,” said Carolina Milanesi, research vice president at Gartner.
Worldwide Devices Shipments by Segment (Thousands of Units)
PC (Desk-Based and Notebook)
Source: Gartner (June 2013)
Demand for ultramobiles (which includes Chromebooks, thin and light clamshell designs, and slate and hybrid devices running Windows 8) will come from upgrades of both notebooks and premium tablets, such as the Apple iPad or Galaxy Tab10.1. Analysts said ultramobile devices are gaining in attractiveness and drawing demand away from other devices. This will be even more evident in the fourth quarter of 2013 when the combination of new design based on Intel processors Bay Trail and Haswell running on Windows 8.1 will hit the market. Although these devices will only marginally help overall sales volumes initially, they are expected to help vendors increase average selling prices (ASPs) and margins.
The tablet and smartphone markets are facing some challenges as these devices gain longer life cycles. There has also been a shift as many consumers go from premium tablets to basic tablets. The share of basic tablets is expected to increase faster than anticipated, as sales of the iPad Mini already represented 60 percent of overall iOS tablet sales in the first quarter of 2013.
“The increased availability of lower priced basic tablets, plus the value add shifting to software rather than hardware will result in the lifetimes of premium tablets extending as they remain active in the household for longer. We will also see consumer preferences split between basic tablets and ultramobile devices,” said Ranjit Atwal, research director at Gartner. “With mobile phones, volume expectations for 2013 have been brought down as the life cycles lengthen as consumers wait for new models and lower prices to hit the market in the Fall and holiday season. The challenge in the smartphone market is also that, as penetration moves more and more to the mass market, price points are lowering and in most cases so do margins.”
“Although the numbers seem to paint a clear picture of who the winner will be when it comes to operating systems (OS) in the device market (see Table 2), the reality is that today ecosystem owners are challenged in having the same relevance in all segments,” said Ms. Milanesi. “Apple is currently the more homogeneous presence across all device segments, while 90 percent of Android sales are currently in the mobile phone market and 85 percent of Microsoft sales are in the PC market.”
Worldwide Devices Shipments by Operating System (Thousands of Units)
Source: Gartner (June 2013)
Additionally, with enterprises’ growing acceptance of bring your own device (BYOD), there is an increase in consumer-owned devices in the computing world. Gartner forecasts that computing devices bought by consumers will grow from 65 percent in 2013 to 72 percent in 2017. This signifies the growing importance of designing for the consumer inside the enterprise.
Gartner’s detailed market forecast data is available in the report, “Forecast: Devices by Operating System and User Type, Worldwide, 2010-2017, 2Q13 Update.” The report is on Gartner’s website athttp://www.gartner.com/resId=2524916.
Gartner Says Worldwide PC Shipments in the Second Quarter of 2013 Declined 10.9 Percent [press release, July 10, 2013]
PC Industry Continues to Shrink as the Installed Base Restructures to Accommodate Tablets as the Primary Consumption Device
Worldwide PC shipments dropped to 76 million units in the second quarter of 2013, a 10.9 percent decrease from the same period last year, according to preliminary results by Gartner, Inc. This marks the fifth consecutive quarter of declining shipments, which is the longest duration of decline in the PC market’s history.
All regions showed a decline compared to a year ago. The fall in the Asia/Pacific PC market continued, showing five consecutive quarters of the shipment decline, while the EMEA PC market registered two consecutive quarters of double-digit decline.
“We are seeing the PC market reduction directly tied to the shrinking installed base of PCs, as inexpensive tablets displace the low-end machines used primarily for consumption in mature and developed markets,” said Mikako Kitagawa, principal analyst at Gartner. “In emerging markets, 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.”
HP and Lenovo’s neck-and-neck competition continued. This time, Lenovo was back in the top position by only a small difference in share (see Table 1). Lenovo showed mixed regional results, as it experienced strong growth in the Americas and EMEA, while showing a major decline in Asia/Pacific. Weakness in China was most likely the contributor of Lenovo’s shipment decline in the region as the majority of Lenovo’s volume came from China.
While HP was slightly behind Lenovo, HP is a market leader in key regions including the U.S., EMEA and Latin America. Asia/Pacific has been a weakness the last three years for HP, but preliminary second quarter results suggest an improvement of their performance in the region.
Preliminary Worldwide PC Vendor Unit Shipment Estimates for 2Q13 (Units)
2Q13 Market Share (%)
2Q12 Market Share (%)
2Q12-2Q13 Growth (%)
Note: Data includes desk-based PCs and mobile PCs, including mini-notebooks but not media tablets such as the iPad.
Source: Gartner (July 2013)
Dell’s shipments declined compared to a year ago, but its 2Q13 results showed a smaller decline than the past several quarters. Dell showed good growth in the U.S. and Japan, but struggled to increase shipments in Asia/Pacific and EMEA. Both Acer and ASUS showed steep declines compared to the second quarter last year. The decline was partly affected by their strategies to exit the mini-notebook market.
“While Windows 8 has been blamed by some as the reason for the PC market’s decline, we believe this is unfounded as it does not explain the sustained decline in PC shipments, nor does it explain Apple’s market performance,” Ms. Kitagawa said.
In the U.S. market, PC shipments totaled 15 million units in the second quarter of 2013, a 1.4 percent decline from the second quarter of 2012 (see Table 2). This decline was less than the past seven quarters, and the market grew 8.5 percent sequentially.
“Our preliminary results indicate that this reduced market decline was attributed to solid growth in the professional market,” Ms. Kitagawa said. “Three of the major professional PC suppliers, HP, Dell and Lenovo, all registered better than U.S. average growth rate. The end of Windows XP support potentially drove the remaining PC refresh in the U.S. professional market.”
Preliminary U.S. PC Vendor Unit Shipment Estimates for 2Q13 (Units)
2Q13 Market Share (%)
2Q12 Market Share (%)
2Q12-2Q13 Growth (%)
Note: Data includes desk-based PCs and mobile PCs, including mini-notebooks but not media tablets such as the iPad.
Source: Gartner (July 2013)
PC shipments in Europe, Middle East and Africa (EMEA) were weakened in the second quarter of 2013, with a 16.8 per cent decline over the same period last year, marking the fifth consecutive quarter of decreasing shipments.
“The sharp decline in the second quarter of 2013 was partly due to the shift in usage patterns away from notebooks to tablets, and partly because the PC market was exposed to inventory reductions in the channel due to the start of the transition to new Haswell-based products,” said Isabelle Durand, principal research analyst at Gartner. “Touch-based notebooks still account for less than 10 per cent of the total consumer notebook shipments in the last quarter.”
“Shipment levels remained weak in Western Europe in the second quarter of 2013 as PC replacement rates continued to be extremely low, while the challenging economic environment is muting spending in consumer markets,” said Ms Durand. “Shipments in Eastern Europe also remained low as this is typically a quiet quarter for business buyers in the region, and consumers are predominantly looking for Android-based tablets. In the Middle East and Africa, tablet and smartphone adoption also continued to draw demand away from PCs in the second quarter of 2013.”
Despite the steep shipment decline, HP retained the top position in EMEA due to better results in the professional PC market. Lenovo was the only top five vendor to exhibit shipment growth, recording a fourth consecutive quarter of growth and taking second place in the EMEA PC vendor rankings in the second quarter of 2013.
Acer exhibited the worst performance of the second quarter with a shipment decline of 38.5 percent year-on-year. Most of Acer’s decline resulted from its portfolio shifting away from netbooks to Android tablets. ASUS also experienced a PC shipment decline in the second quarter 2013. The drop of its netbooks continued to impact its overall notebook results.
Preliminary EMEA PC Vendor Unit Shipment Estimates for 2Q13 (Units)
2Q13 Market Share (%)
2Q12 Market Share (%)
2Q12-2Q13 Growth (%)
Notes: Data includes desk-based PCs and mobile PCs, including x86 tablets equipped with Windows 8. All data is estimated, based on a preliminary study. Final estimates will be subject to change. The statistics are based on the shipments selling into channels.
Source: Gartner (July 2013)
In Asia/Pacific, PC shipments surpassed 26.8 million units in the second quarter of 2013, an 11.5 percent decline from the first quarter of 2012. All country markets across the region showed weakness, but India performed slightly better due to a state PC tender fulfillment. China’s PC shipment remained weak as the consumer market was hampered with lack of new demand generation programs, such as subsidized PC program in the rural cities.
These results are preliminary. Final statistics will be available soon to clients of Gartner’s PC Quarterly Statistics Worldwide by Region program. This program offers a comprehensive and timely picture of the worldwide PC market, allowing product planning, distribution, marketing and sales organizations to keep abreast of key issues and their future implications around the globe. Additional research can be found on Gartner’s Computing Hardware section on Gartner’s website at http://www.gartner.com/it/products/research/asset_129157_2395.jsp.
Digitimes Research: ‘Overtaking iPad will happen in 2H13’
Global tablet shipments reached 29.32 million units in the second quarter of 2013, down 8.2% sequentially, but still up 46.6% compared to the same period a year ago. As overall market demand is declining, both iPad and non-iPad product shipments have been impacted. Because of the iPad mini’s significant shipment drop, Apple’s tablet shipments in the second quarter were only 14.6 million units, down 25.1% sequentially and 2.7% on year, according to Digitimes Research’s latest figures.
As for non-iPad tablet shipments, non-Apple brand vendors’ new products and the second-generation Nexus 7 have both contributed to the volume, helping it to grow 18.5% on quarter and reach 14.72 million units. However, since Samsung Electronics and Lenovo have both increased their in-house production rates, Taiwan’s share of global tablet shipments dropped below 70% in the second quarter with shipments of only 20.38 million units, Digitimes Research figures showed.
In terms of brand vendors’ ranking, Apple and Samsung Electronics were the top-two players, followed by Asustek Computer third, Lenovo fourth and Acer sixth. As for processor rankings, MediaTek was the third-largest supplier in the second quarter thanks to its strategy of pushing mainly in the entry-level segment, only behind Apple and Texas Instruments (TI). Nvidia was the fourth largest with Samsung and Intel following closely behind.
Tablet shipments in the second half are expected to reach 82.07 million units, up 17.7% on year; however, several changes will also occur during the period: hardware brand vendors will dominate the small-size tablet segment; non-iPad tablet shipments will surpass those of iPad; closed Android platforms will be impacted by the official Android platform; and Qualcomm and MediaTek will replace Texas Instruments (TI) and Nvidia in the non-Apple camp, according to Digitimes Research’s latest figures.
Small-size devices are expected to become mainstream products of the tablet market, accounting for 70% of total shipments in the second half. Non-iPad tablet shipments are also expected to surpass those of iPad and reach 45.07 million units. With the non-iPad camp’s strong shipments, over 50% of global tablets will adopt the Android operating system in the second half, Digitimes Research estimates.
Android’s large market share will also strongly impact closed Android platforms such as Amazon’s operating system for its tablets due to lack of key application support.
The Retina display-featured iPad mini may not appear before the end of 2013 due to the panel’s weak yield rate and the possibility that the device may undermine sales of the new high-end iPad. As a result, Apple’s shipments in the second half may drop to 37 million units with an on-year growth of 3%.
As for Windows-based tablets, although Microsoft is offering more price cuts for its Small Screen Touch (SST) program, the deal is unlikely to help push vendors to release Windows-based devices and the platform will only account for 3.8% of second-half tablet shipments.
Qualcomm became the processor supplier of the second-generation Nexus 7 and the third-generation Kindle Fire, replacing Nvidia and TI. Qualcomm will ship close to 10 million processors in the second half of 2013, becoming the largest CPU supplier of the non-Apple camp. MediaTek, thanks to its hardware brand clients’ small-size tablet orders, will become the second largest supplier, followed by Samsung Electronics and Intel, both of whom will ship over seven million units.
Taiwan makers’s tablet shipments will reach 59.45 million units in the second half, but as Samsung and Lenovo are increasing their in-house production rates, Taiwan makers’ share of global tablet shipments will drop to around 70%. As ODMs are aggressively competing for orders, Apple, Amazon and Asustek Computer will no longer place most of their orders with only Foxconn Electronics (Hon Hai Precision Industry) and Quanta Computer and will spread out their orders more evenly, Digitimes Research believes.
Canalys says ‘Yes’
Small tablets drive big share gains for Android [Canalys press release, Aug 1, 2013]
– Android overtakes iOS with 53% market share in tablets
Over 34 million tablets shipped in Q2 2013, a 43% year-on-year increase. Tablets now account for 31% of worldwide PC shipments. But Apple’s performance faltered. Its tablet shipments declined 14% on Q2 2012 and its market share dropped to 43%. The chasing pack of Samsung, Amazon, Lenovo and Acer each grew annually by over 200%, driven by increasing demand for small-screen tablets. Canalys estimates that 68% of tablets shipped in Q2 had a screen size smaller than 9″. ‘Consumers have been evaluating tablets and the results are now in,’ said Tim Coulling, Canalys Senior Analyst. ‘With touch-screens contributing to a high proportion of the build cost of a tablet, small-screen products can be priced very aggressively.’
Apple’s decline in shipments and share has been partly attributed to its aging portfolio. But Canalys believes that new product launches will have less impact on its shipments in future. ‘When Apple does decide to refresh its iPad range it will not experience the buzz of previous launches,’ said Canalys Analyst James Wang. ‘Tablets are now mainstream products and hardware innovation is increasingly difficult. With branded Android tablets available for less than $150, the PC market has never been so good for consumers, who are voting with their wallets.’ The move to smaller tablets has sparked a price war that has real consequences for the entire supply chain. These products generate little absolute margin for channel partners, vendors or component manufacturers. Content, applications and accessories (especially cases and keyboards) are now even more important to boost margins – areas where Apple remains a leader.
In addition to disappearing margins, inventory management is emerging as a major challenge. If a vendor overcommits at the product planning stage, unsold inventory can play havoc with a company’s balance sheet, even with other hit products in a portfolio. The market for full-sized tablets has stalled and even Apple has found it harder to sell its larger iPads in recent quarters. ‘Microsoft’s inventory issues with the Surface have been well publicized,’ said Coulling. ‘Heavily discounted Surface RTs will fly off the shelves. Expect prices to continue to fall though, as the starting price of $350 is still too expensive to spark an HP TouchPad-style buying frenzy.’
Despite its 53% share, Android still lags far behind iOS in the availability of fully-optimized tablet apps, and tablet app downloads from the Apple App Store dwarf those from Google Play. But Android is expected to continue to close the ecosystem lead iOS has in tablets and increase share in coming quarters. ‘Developers can and will quickly switch their priorities as different opportunities evolve and improve,’ said Canalys Senior Analyst Tim Shepherd. ‘We expect to see a substantial increase in the quantity, as well as the quality, of apps built or optimized for Android tablets over the next 12 months, as Google brings more attention to them through improvements to the Play store, and as the addressable base of devices continues to soar.’
While it is true that Apple is losing its stranglehold on the tablet market in terms of volume, it will remain its most profitable vendor for years to come. Apple has already faced a similar battle in the smart phone market, and it now looks increasingly likely that it is readying a product that can address lower price tiers and high-growth markets in that space. If this is indeed the case, Apple could replicate a similar portfolio play in the tablet market. It will be in no rush – after all, the launch of the iPad mini was designed to address this segment. But its hand could be forced if competitors’ prices continue to plummet. The margin models in the smart phone and tablet markets are very different. It will still make good margin on a cheaper iPhone but will struggle to do so with a cheaper tablet, and would instead need to rely increasingly on accessory sales and, likely, subsidy from apps and content purchases.
PC market flat in Q2 2013, despite tablet growth [Canalys press release, Aug 6, 2013]
– Android takes 17% of PC market in Q2 as PC vendors turn to Google for tablets
The worldwide PC market experienced a quarter without growth, as a 42.9% increase in tablet shipments was offset by declines in desktop and notebook shipments, which fell 7.4% and 13.9% respectively. Despite tablet growth slowing in Q2, Canalys still believes that tablets will outsell notebooks by Q4 of this year.
PC shipments in EMEA fell by 3% year-on-year in Q2, the first decline after two successive quarters of double-digit growth. Western Europe and Central and Eastern Europe continue to be challenging for vendors, with annual declines of 10% and 3% respectively. PC shipments in the Asia Pacific region declined 0.5% year-on-year to just over 40 million units. The region was badly affected by slow shipments in the People’s Republic of China, which accounted for almost 45% of the region’s shipments and declined by approximately 6%. Demand for smart phones and tablets is increasing around the world. Faced by an industry in transition, channel partners are exercising caution when planning and placing orders.
Apple remained the top PC vendor in Q2, with a 4.5 million unit lead over second-placed Lenovo. But Apple’s share fell more than two percentage points to 17.1% from 19.4% in Q2 last year due an annual decrease in iPad shipments. Desktop and notebook shipments only accounted for around 20% of its total PC shipments. With tablet vendors attacking Apple on price it must bring fresh innovation to future generations of its iPad range if it is to maintain the lead it has built in the PC market.
Lenovo had a strong quarter, gaining share in its core notebook and desktop categories, as well as tablets. Its performance in Q2 was helped by strong annual growth in EMEA (34%), the US (28%) and Latin America (93%). Lenovo’s tablet business also performed well – it shipped around 1.5 million units. ‘It is striking how successful it has been in globalizing its PC business and breaking the 1 million unit barrier is an important milestone for its tablet shipments,’ noted Canalys Analyst James Wang. ‘Lenovo is on an upward curve with its tablets, expanding in mainland China and Latin America, where there is little competition from the likes of Google or Amazon.’
HP has overtaken Samsung to regain third place. HP has recently changed its tablet strategy and launched its first Android tablet in Q2, the Slate 7. ‘HP has a broad enterprise portfolio, channel relationships and global reach that others still cannot match,’ said Canalys Research Analyst Pin-Chen Tang. ‘To increase its market share it should look to leverage its strengths in the enterprise to advance Android in business.’
iOS and Android have profited from the shift to tablets, as they have proved to be the only type of PC with any momentum. Android’s share of the total PC market increased to 17% in Q2 2013 from 6% a year ago. With the likes of HP, Lenovo and Samsung looking to use Android to compete with iOS in the tablet space, the platform is well placed to continue increasing its share. Google is targeting the consumer market and has its sights set on beating Apple in the smart phone and tablet space. Android remains weak in management and security, which is preventing commercial uptake. Google, or its partners, must address this shortfall quickly if it is to penetrate the enterprise
There has been rapid innovation in the Windows category, as vendors such as HP, Lenovo, Toshiba and Acer have built PCs using a variety of new form factors. These products are struggling to take off as the difference in price between Android and Windows-based tablets remains high. ‘Component pricing has been an issue, particularly with multi-touch screens, though scale economies make this less of an issue as demand increases. The price of Windows itself is a contributing factor and one that Microsoft must address as a matter of urgency. Its PC OEM partners are in an increasingly difficult position and consolidation in the PC market is inevitable within the next 12 months,’ said Tim Coulling, Canalys Senior Analyst.
Half a billion PCs to ship in 2013 as tablet sales rocket [Canalys press release, June 11, 2013] – Tablet shipments to grow by 59% this year to reach 182.5 million units
Canalys’ latest forecasts for the PC market (desktops, notebooks and tablets) predict that 493.1 million units will ship in 2013, representing 7% year-on-year growth. The key driver behind this growth will be tablets, which will account for 37% of the market, up from a quarter in 2012. Looking ahead to 2017, Canalys expects that 713.8 million PCs will ship worldwide (a CAGR of 9.7%), with 64% being tablets and 25% notebooks.
Worldwide demand for tablets has gone from strength to strength, while that for desktops and notebooks has waned. In the first quarter of 2013, the desktop market fell 10.3% and the notebook market declined 13.1%. The size of the tablet market, however, more than doubled in Q1 2013, with a 106.1% increase in shipments to 41.9 million units. Shipments show no sign of slowing and Canalys forecasts that in 2013 tablet shipments will reach 182.5 million units, with global tablet shipments surpassing those of notebooks in the final quarter of the year.
The reception to Windows 8 has not reinvigorated demand for Microsoft-based PCs but there is a glimmer of hope for OEMs with Microsoft’s plan to release Windows 8.1 as a free upgrade. ‘Microsoft will continue to innovate. New versions will come and its OS release cycle will gain speed. But it must address some of the criticisms that have been directed at the OS’s user interface or it risks losing even more ground to iOS and Android in the PC space,’ said Tim Coulling, Senior Analyst at Canalys.
A plethora of PC vendors have now come to market with cheaper Android devices, notably Acer, Asus and HP, but these vendors are joining a crowded market. ‘Shipment numbers can be high but absolute margins on these products are expected to be small. Low-priced 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 ‘appcessories’ will likely provide higher margins than the products themselves,’ said Pin-Chen Tang, Research Analyst. ‘This new influx of Android devices will provide a boost to the platform and
Canalystherefore expects Android to take a 45% share this year, behind Apple at 49%[this prediction failed already for Q2 results as was reported on Aug 1 by Canalys: ‘Android overtakes iOS with 53% market share in tablets‘]. 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 great hope for Windows 8 was that it would unleash new PC form factors, combining the best of both PCs and tablets. But James Wang, an Analyst at Canalys, noted, ‘These convertible products have disappointed so far. Convertibles are too heavy in tablet form and too expensive when compared with clamshell products. 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-cost slates and more familiar Windows-based clamshell notebooks.’ Out of the 388.1 million mobile PCs (notebooks and tablets) that Canalys forecasts will ship in 2013, it estimates that less than 2% will be hybrids or convertibles.
Another ray of light for PC vendors is that PC sales to businesses are, and will continue to be, far stronger than those to consumers. This trend favors the likes of HP and Lenovo, though competition will increase as others shift resources toward the commercial channels to maximize their opportunity.
Appcessories: Products that connect to applications on smart devices (smart phones, tablets and notebook PCs).
Clamshell: A notebook with keyboard/second screen fixed with a one-directional hinge only enabling movement up to 180⁰.
Convertible: A notebook with keyboard/second screen that can be converted to a tablet form factor.
Slate: A tablet that is not designed by its manufacturer to be fixed to a keyboard accessory with a hinge.
Hybrid: A tablet that is designed by its manufacturer to be fixed to a keyboard accessory with a hinge.
Canalys is an independent analyst firm that strives to guide clients on the future of the technology industry and to think beyond the business models of the past. We deliver smart market insights to IT, channel and service provider professionals around the world. Our customer-driven analysis and consulting services empower businesses to make informed decisions and generate sales. We stake our reputation on the quality of our data, our innovative use of technology, and our high level of customer service.
EnfoDesk (Analysys International) from China says ‘For sure, as it is already happening against the iPad in China even at a nascent stage of the local tablet market’
Industry data: 2013Q2 Chinese Tablet PC market sales of 3.58 million, the rapid expansion of domestic [products], apple [products] decline significantly [enfodesk.com, Aug 14, 2013] as translated by Google and Bing, with manual edits:
According to Analysys think tank EnfoDesk latest monitoring data shows that in the second quarter of 2013 tablet PC sales in China reached 3,576,000 units, up 5.2% Q/Q growth.
According to Analysis think tank EnfoDesk in the last quarter of 2013 sales growth on the tablet PC market in China slowed down to only 5.2% Q/Q growth rate, mainly due to weak sales of Apple’s tablet computers, as its sales fell for the first time. And Samsung had eye-catching performance this quarter, after N5110 Galaxy Note 8 has been released, and sought after by the market, so the Samsung Tablet PC overall sales increased dramatically, pulling the overall market growth. Worth mentioning this quarter is that domestic brand tablet PCs, such as Teclast (台电) [see Teclast’s Tmall site in Chinese, or Pandawill’ Teclast global online site in English] and ONDA (昂达) [see ONDA’s global site in English] have gained more market share with their low prices, ultra high yield of price/performance, and best selling online channels.
Throughout the three major tablet platforms, iOS declined significantly, it will be difficult to stop its market share erosion trends; Windows was tepid, the release of Microsoft Surface and continuous price cuts did not enhance the Windows market activity; Android cut right through the market, by virtue of many manufacturers to compete, high performance models being abundant, covering all price points of consumer groups, and with product prices constantly being refreshed, quickly seized the tablet PC market. If Apple can not launch innovative tablet PC products in the near future, [the event of] Android surpassing iOS market share is around the corner.
Compare this to the situation in 2012:
- China market: Apple shares over 71% of 4Q12 consumer tablet sales, says Analysys [DIGITIMES, April 19, 2013]
Apple occupied 71.6% of consumer tablets sold in the China market during the fourth quarter of 2012, according to China-based Analysys International.
For business-use tablets alone, Eben had the largest market share at 41.9%, followed by Samsung Electronics with 21.0%, Asustek Computer with 6.6% and Lenovo with 4.5%, Analysys indicated.
Source: Analysys, compiled by Digitimes, April 2013
- Analysys International: iPad Sales Share Fell in Q3, 2012 [Analysys International, published in English on May 17, 2013]
According to the Quarterly Survey of China’s Tablet PC Market 2012Q3, 2.60 million sets tablet PC have been sold in Chinese market in Q3, 2012. Apple occupied 71.4% market share with a slight drop, Lenovo ranked second, reaching 10.52% and Ereneben ranked third with its market share being 3.61% and Samsung ranked fourth, taking up 3.53% market share.
EnfoDesk, Analysys International finds that 4 factors require our attention concerning China’s tablet PC manufacturers’ market layout in Q3, 2012:
- Compared with last quarter, Apple’s market share dropped from 72.66% to 71.42%. New iPad marketing promotions were made mainly in Q2. In Q3, iPad 2and The New iPad were in normal sales.
- The sales volume of Lenovo tablet PC rose considerably with its market share being 10.52%. Such a growth is resulted from the issue of its new products S2107 and S2109 and promotions when new semester begins for students.
- Ereneben issued its new product T5 in Q3, which drives the overall sales volume, and the price of T4 came down slightly in some provinces, thus increasing the sales volume of Ereneben.
- Samsung tablet PC enjoyed relatively stable sales in Chinese market. The company doubled their efforts in the marketing of tablet PC Note series (7 inches or above versions). Its branding effects gradually brought about and increased its sales in the Chinese market.
Besides, the research on e-business tablet PC market conducted by EnfoDesk, Analysys International shows that Ereneben ranked first with market share being 41.07%. Samsung offered Galaxy Note 10.1 e-tablet PC to consolidate its positioning in e-business tablet PC market. Its market share was 19.66% of total e-tablet PC market. Lenovo’s Thinkpad was in normal sales, only occupied 3.89% market share.
Analysys International: iPad took up 73% of Tablet PC Market 2012Q2 [Analysis International, published in English on May 16, 2013]
According to the Quarterly Survey of Tablet Market in China 2012Q2, released by EnfoDesk, Analysys International, market share of Apple rose to 72.66% with a sequential growth rate rising by 20.06%. Top 2 was Lenovo that witness a drop of its market share (Its market share was 8.38%). Eben ranked third with its market share being 3.63% and the market share of Samsung came down to 3.59% with its sequential growth rate dropping by 7.69%.
EnfoDesk Analysys International believes that three aspects should be noticed concerning the market layout of tablet PC market in Q2, 2012.
First, the market share of Apple has risen from 65.21% in Q1 to 72.66% in Q2. New iPad came into the market in March; however, since no substantial improvement has been made on the new products, consumers would rather wait to buy in Q2. The price reduction of iPad 2 promoted the sales volume of Apple products, allowing its market share to grow.
Second, compared with Q1, market share of Lenovo shrank. On one hand, it was a dull season; on the other hand, it was caused by its internal policy. In September, Lenovo will launch its promotion of new products when new term begins in September (during the peak season) and the company would rather clean up stocks of its other products in Q2.
Finally, iOS tablet PC suffers less seasonal factors than Android tablet PC. Currently, Android tablet PC market is getting stabilized. Solely relying on traditional sales channel to educate consumers was too slow and manufacturers could carry out more promotions to increase brand influence and brand concentration, grab the market share of smuggled products and clarify market layout of Android tablet PC. In addition, other tablet PC manufactures except Apple should consider its own market position and offer its unique products, gradually getting rid of homogenization of Android tablet PC. Eben as a leader in business tablet PC market offers unique products and its market positioning is clear.
- Analysys International: 2.34 Million Tablet PCs Were Sold in China 2012Q2 [Analysis International, published in English on May 16, 2013]
According to the statistics recently released by Analysys International, 2.34 million tablet PCs were sold in China in Q2, 2012. The sequential growth rate has reached 7.8%.
Analysys International holds that sales growth of China’s tablet PC in Q2, 2012(The growth rate has reached 7.8%) is due to the following factors:
iPad directly triggered the market fluctuation. The price reduction of iPad forced the average price of tablet PC to go down. As a result, consumers with cash in hand developed their desire to buy and such a desire transformed into procurement, which allowed the sales volume to grow in the dull season.
EnfoDesk, Analysys International predicts that the future market layout will be even clearer. Android manufacturers and others will target middle and low-end consumers with an attempt to avoid direct competition with Apple. Even though the sales volume of Apple will increase, its market share will continue to shrink. The market share of Android manufacturers is expected to grow and the market concentration will increase. The smuggled products will face the question of survival and the market will get further standardized.
Tablet PC is a portable mobile internet device accessible to the network. It has independent mobile OS and is able to expand its applications. The screen ranges from 5 to 11 inch. Touch screen or pen is served as a basic input device.
The Sales Volume is tablet PC manufacturers’ sale in China, including some overseas brands which are sold by a purchasing agency (OEM labeling products is regarded as the labeled brand. Some device manufacturers also sell some products to market abroad. This part of sales volume is not calculated in the said report).
The industrial analyses, provided by Analysys International, mainly reflect the current situation, trend, inflection point, commercial law and manufacturers’ situation. The figures and statistics are drawn by adopting a unique industrial analysis model combined with the research and study methods used by market, industry and manufactures. All the data are based on industrial macro and historical data, seasonal end-users’ and business information.
It is believed that data concluded from research into market and trade is within acceptable errors. It can reflect the trend and commercial laws accurately.
Results obtained by the means of professional research methods are for reference. The actual data can be obtained by checking on financial report issued by manufacturers.
About Analysys International
Analysys International is a leading advisor on the technology, media and telecom (TMT) industries in China. We provide data, information and advice to 50,000 clients worldwide representing 1,500 distinct organizations, deliver over 150 consulting engagements a year, and hold more than 20 events that draw in over 8,000 attendees. Our clients include executives from companies as technology vendors, vertical information technology users, as well as professionals from professional service companies, the investment community and government agencies. Our mission is simple and clear: we help our clients make better business decisions. For more information, please visit our website at http://english.analysys.com.cn.
EnfoDesk is an industrial data base for subscription offered by Analysys International. It aims to help you perceive opportunities and risks in the Internet age with online database search, analyst interaction, market alarms and other functions. EnfoDesk can help you get information in time and know more about:
– The business mode and trend of the Internet and mobile web market
– The trend in policy towards the Internet and Internetized market
– The activities and preferences of Internet and mobile web users
– The potential clients and commercial opportunities
– The more valuable partners and cooperation mode
– The trend and effects of e-marketing
Linux client market share gains outside the Android? Instead of gains will it shrink to 5% in the next 3 years?
The Linux Foudation quite proundly referred to ReadWriteMobile: The ‘Year of the Linux Desktop’? That’s So 2012 [Feb 3, 2013]
For those Linux enthusiasts still pining for the mythical “Year of the Linux Desktop,” the wait is over. In fact, it already happened. In 2012 Microsoft’s share of computing devices fell to 20% from a high of 97% as recently as 2000, as a Goldman Sachs report reveals [”Clash of the titans” downloadable from here, dated Dec 7, 2012]. While Apple has taken a big chunk of Microsoft’s Windows lead, it’s actually Google that plays Robin Hood in the operating system market, now claiming 42% of all computing devices with its free “Linux desktop” OS, Android.
Read more at ReadWriteMobile.
from which I will include here the following chart:
for which Goldman Sachs commented as:
The compute landscape has undergone a dramatic transformation over the last decade with consumers responsible for the massive market realignment. While PCs were the primary internet connected device in 2000 (139mn shipped that year), today they represent just 29% of all internet connected devices (1.2bn devices to ship in 2012), while smartphones and tablets comprise 66% of the total. Further, although Microsoft was the leading OS provider for compute devices in 2000 at 97% share, today the consumer compute market (1.07bn devices) is led by Android at 42% share, followed by Apple at 24%, Microsoft at 20% and other vendors at 14%.
Note from Goldman Sachs: Microsoft has gone from 97 percent share of compute market to 20 percent [The Seattke Times Dec 7, 2012]:
I asked Goldman Sachs about what happened in the 2004-2005 time frame — as seen in the above chart — that made Apple’s vendor share jump, Microsoft’s share plummet and the “other” category to go from zero to 29 percent. Goldman Sachs replied that it has to do with more mainstream adoption of non-PC consumer computing devices but declined to elaborate beyond that.
Microsoft was put into the “Challenged” category (along with Google BTW) by Golmann Sachs noting that:
… we estimate that Microsoft would have to sell roughly 5 Windows Phones or roughly two Windows 8 RT tablets to offset the loss of one traditional Windows PC sale, which we estimate has an overall blended selling price of $60 for business and consumer.
but a kind of more positive than negative outlook was predicted for the company by
… we expect the recent launches of Windows Phone 8 and Windows 8 tablets to help the company reclaim some share in coming years.
Apple, at the same time, was into the “Beneficiaries” category (along with Facebook and Samsung BTW) by Goldmann Sachs for the reason of:
… we believe loyalty to the company’s ecosystem is only increasing and this should translate into continued growth going forward. In particular, we see the potential for Apple to capture additional growth as existing iOS users move to multiple device ownership and as the company penetrates emerging regions with new devices such as the iPad miniAAPL and lower priced iPhones. As a result, we believe Apple’s market share in phones has room to rise much further, and that its dominant tablet market share appears to be more resilient than most expect. We expect these factors to continue to drive the stock higher.
This is, however, not going to happen if taking a judgement from the stock market reflections since then with 13.7% drop in Apple’ share price vs. that of Dec 7 (the report publishing date) and a whopping 34.5% drop vs. its last peak on Sept 19, 2012 (at $702.1):
source: Yahoo! Finance
Why Did $AAPL Stock Go Down After Beating Earnings Estimates And $AMZN Stock Go Up After Missing? [Techcrunch, Jan 29, 2013] had the following explanation:
The moves in different directions for Amazon and Apple have been about expectations and guidance. Wall Street has higher expectations for Apple and ‘different’ expectations for Amazon. Wall Street wants Apple’s ‘gross margins’ to grow. They don’t expect Amazon’s ‘profits’ to grow. It sounds silly, but if Apple has reported lower profits and a huge gross margin increase the stock might have shot up. If Amazon had reported record profits today on decreasing margins, Wall Street might have panicked.
Wall Street has stopped caring about Apple’s profits today. They were displeased with forward guidance. Growth rates have slowed measurably at Apple which is understandable for a company of its’ size. Wall Street is worried that growth is slowing and competition from Google and Samsung are taking a toll. Apple has given Wall Street so many wonderful surprises so magic has become the norm. Now that Apple is boring, they have run for the hills.
That moode didn’t change even after Apple CEO Tim Cook was trying to assure investors at the Goldman Sachs Internet and Technology Conference on Feb 12, just a week ago. Read the Wrap up: Apple CEO Tim Cook’s Goldman Sachs Conference keynote [AppleInsider, Feb 13, 2013] from which I will quote only the following excerpts as the most notable ones:
Cook went on to say that introducing a “budget device” was not something Apple would be comfortable with, and instead pointed to the strategy seen with the iPhone lineup. In that model, new variants like the iPhone 5 are sold at the highest price while preceding versions like the iPhone 4S and iPhone 4 are sold at discounted rates.
According to Cook, the iPad is “the poster child of the post-PC revolution” and has driving the push to tablets since its introduction in 2010.
While Apple’s tablet has been the downfall for a number of PC alternatives, such as netbooks, the device is also said to be hurting the company’s own Mac computer sales. During the last quarter of 2012, Mac sales dropped 22 percent year-to-year on low demand and supply constraints. Apple’s iPad business, however, grew by nearly 50 percent over the same period.
“The cannibalization question raises its head a lot,” Cook said. “The truth is: we don’t really think about it that much. Our basic belief is: if we don’t cannibalize, someone else will. In the case of iPad particularly, I would argue that the Windows PC market is huge and there’s a lot more there to cannibalize than there is of Mac, or of iPad.”
Cook noted that burgeoning markets like China and Brazil will be major players in future growth, and the company is banking on its ability to draw customers in to the Apple ecosystem with “halo products.”
“Through the years, we’ve found a very clear correlation between people getting in and buying their first Apple product and some percentage of them buying other Apple products.”
At the same conference Microsoft, similarly to Apple, declared a ‘no change’ strategy despite of the obvious failure of its Windows 8 and Windows Phone efforts so far. In the No “Plan B” for Microsoft’s mobile ambitions: CFO [Reuters, Feb 13, 2013] report one can read:
“We’re very focused on continuing the success we have with PCs and taking that to tablets and phones,” Microsoft’s Chief Financial Officer Peter Klein said
“It’s less ‘Plan B’ than how you execute on the current plan,” said Klein. “We aim to evolve this generation of Windows to make sure we have the right set of experiences at the right price points for all customers.”
Gartner estimates that Microsoft sold fewer than 900,000 Surface tablets in the fourth quarter, which is a fraction of the 23 million iPads sold by Apple. Microsoft has not released its own figures but has not disputed Gartner’s.
Windows phones now account for 3 percent of the global smartphone market, Gartner says, which is almost double their share a year ago but way behind Google’s Android with 70 percent and Apple with 21 percent.
To grab more share, Klein said Microsoft was working with hardware makers to make sure Windows software is available on devices ranging from phones to tablets to larger all-in-one PCs.
“It’s probably more nuanced than just you lower prices or raise prices,” said Klein. “It’s less a Plan B and more, how do you tweak your plan, how do you bring these things to market to make sure you have the right offerings at the right price points?”
So the last 3 months went against Goldmann Sachs’ November 2012 predictions. The only question now remains whether those 3 months brought any changes in the non-Apple and non-Microsoft territories which would question other parts of the Goldmann Sachs’ forecast as well?
There were no negative changes just strengthening of the already established dominant position against both Apple and Microsoft:
1. Mainstream tablets 7-inch at US$199, say Taiwan makes [DIGITIMES, Feb 19, 2013]
Google’s Nexus 7 and Amazon’s Kindle Fire HD have reshuffled the global tablet market and consequently 7-inch with a price cap of US$199 has become the mainstream standard for tablets, according to Taiwan-based supply chain makers.
Cumulative sales of the Nexus 7 have reached six million and are expected to reach eight million units before the expected launch of the second-generation model in June 2013, the sources said. The Nexus 7 and Kindle Fire have driven vendors to develop inexpensive 7-inch tablet models instead of 10-inch ones, the sources indicated.
In order to be as reach US$199, 7-inch tablets are equipped with basic required functions such as access to the Internet and watching video, the sources noted. While Google, Amazon, Samsung Electronics and Asustek Computer are competitive at US$199 for 7-inch tablets, white-box or other vendors need to launch 7-inch models at lower prices such as US$149, the sources said. Fox example, China-based graphics card vendor Galaxy Microsystems has cooperated with Nvidia to launch a 7-inch tablet in the China market at CNY999 (US$160).
2. Digitimes Research: 68.6% of touch panels shipped in 4Q12 from the Greater China area [DIGITIMES, Feb 19, 2013] meaning that in supply chain terms there is a growing concentration on suppliers not only from Greater China but especially from mainland China:
Taiwan- and China-based touch panel makers held a 68.6% global market share for touch panels shipped during the fourth quarter of 2012, according to Digitimes Research.
China-based panel makers saw the biggest share in the handset touch panel market during the fourth quarter due to smartphone demand in China, while Taiwan-based panel makers only held a 27.5% share in the market largely due to lower-than-expected sales of the iPhone 5, said Digitimes Research.
In terms of touch panels used in tablets, Taiwan-based panel makers saw a drop in their global market share to 59.9% during the period largely due to the iPad mini using DITO thin-film type touch screens provided from Japan-based touch panel makers. China-based panel makers meanwhile held 18.6% in the market due to demand for white-box tablets in China, added Digitimes Research.
Meanwhile, Digitimes Research found that Taiwan-based TPK provided 70.9% of all touch panels used in notebook applications in 2012.
3. Touch Panel Market Projected for a 34% Growth in 2013 from 2012 [Displaybank, sent in a newsletter form, Feb 19, 2013] published to promote Touch Panel Market Forecast and Cost/Issue/Industry Analysis for 2013 [Jan 30, 2013]
The touch panel market is growing rapidly due to the increasing sale of smartphones and tablet PCs. The touch panel market size in 2012 was 1.3 billion units, a 39.4% growth over 2011. The market is projected to grow 34% in 2013, growing to more than 1.8 billion units.
Smartphone and tablet PCs, major applications that use touch panels, are expected to continue to grow at a high rate. In addition, most IT devices that use display panels have either switched to or will start using the touch panels soon. Therefore the touch panel market will show a double digit growth annually until 2016, by unit. The market size is expected to reach more than 2.75 billion units by 2016.
With the explosion in the sale of smartphones and tablet PCs during the past few years, our lives have changed dramatically. They are now common place in our lives, and have a huge influence in the IT industry in general. With the introduction of Windows 8 OS in October 2012, upsizing of touch panels has begun. The impact of this event on the immediate growth of the touch panel market and the long-term effect is so immense that it cannot be estimated at the moment.
The financial crisis that started in 2008 left much of the IT industry hobbling worldwide. But only the touch panel market is enjoying a boom. Many new players are pouring into the industry, and those on the sidelines are waiting for the opportune moment to enter. As more players enter the competitive landscape, touch panel prices are falling rapidly. In addition, to gain competitiveness and to differentiate itself in the market has led players to develop and improve structure, technique and process, and seek out new materials.
The introduction of Windows 8 is leading the increase in touch capable Notebook and AIO PCs. It is still too early for the touch interface to completely displace keyboard and mouse, but the touch functionality does add convenience to some operations. We are sure to see an increase in specialized apps that capitalize on such functions. Therefore, touch functions will complement traditional input methods. As the technology is still in early implementation stages, it is used only in select high-end Ultrabooks. But it’s only a matter of time before touch functions make its way to mid-end products.
Forecasting the future of touch panel industry is not only difficult, but also outright confusing in the current landscape due to the rapid expansion; the increase in number of devices that use touch panels; more players in the market; and rapid development of new products and new processes. In serving clients, Displaybank has released “Touch Panel Market Forecast and Cost/Issue/Industry Analysis for 2013” to provide industry outlook by application, product, and capacitive touch structure. The report also includes the supply chain of set makers and touch panel manufacturers; and cost analysis of major capacitive touch panels by size and type. This report will serve as a guide to bring clarity and understanding of rapidly transforming touch panel industry.
4. Cheaper components could allow 7-inch tablets priced below US$150, says TrendForce [DIGITIMES, Dec 14, 2012]
Viewing that Google and Amazon have launched 7-inch tablets at US$199, other vendors can offer 7-inch tablets at below US$150 only by adopting cheaper components, according to Taiwan-based TrendForce.
As panels and touch modules together account for 35-40% of the total material costs of a 7-inch tablet, replacing the commonly used 7-inch FFS panels with 7-inch TN LCD panels accompanied by additional wide-view angle compensation could save over 50% in panel costs, TrendForce indicated. In addition, replacing a G/G (glass/glass) or OGS (one glass solution) touch module with a G/F/F (glass/film/film) one, although inferior in terms of transmittance and touch sensitivity, can cut costs by about 70%. Thus, the adoption of a TN LCD panel and a G/F/F touch module for a 7-inch tablet could reduce material costs by about US$25, TrendForce said.
Given that the type of DRAM affects standby time only as far as user experience is concerned, costs can be reduced through replacing 1GB mobile DRAM priced at about US$10 with 1GB commodity DRAM priced at about US$3.50, TrendForce noted. As for NAND flash, 8GB and 4GB eMMC cost US$6 and US$4, respectively, and therefore the latter should be the preferred choice to save costs.
For CPUs, China-based IC design houses, including Allwinner Technology, Fuzhou Rockchip Electronics, Ingenic Semiconductor, Amlogic and Nufront Software Technology (Beijing), provide 40-55nm-based processors at about US$12 per chip which could be alternatives to chips used in high-end tablets which cost about US$24, TrendForce indicated.
While the sales performance of tablets below US$150 is yet to be seen, such cheap models are expected to put pressure upon China-based white-box vendors, and in turn intensify price competition in the tablet market in 2013, TrendForce commented.
5. Strong demand from non-iPad tablet sector to boost short-term performance of IC vendors [DIGITIMES, Jan 28, 2013]
Demand for IC parts from the tablet industry in China has been stronger than expected in the first quarter of 2013, which could help boost the short-term performance of IC design houses, while offsetting the impact of slow demand from China’s smartphone sector caused by high inventory levels, according to industry sources.
Entry-level tablets meet market demand in terms of pricing and functionality, particularly in China, said the sources, adding that demand for entry-level tablets in China and other emerging markets could top 4-5 million a month in 2013 compared to 2-3 million in the second half of 2012.
MediaTek, while seeing demand for its handset solutions from China decrease in the first quarter of 2013, has also enjoyed emerging IC demand from the tablet sector, with plans to release chipset solutions for the segment in the second quarter of the year, the source revealed.
Since the growth momentum for tablets in 2013 is expected to come from non-iPad vendors in China and other emerging markets, Taiwan-based suppliers of LCD driver, analog and touch-controller ICs as well as those of Wi-Fi, audio and Bluetooth chips will benefit from the trend thanks to cost advantages and strong business ties in these markets, the sources commented.
6. Allwinner A31 SoC is here with products and the A20 SoC, its A10 pin-compatible dual-core is coming in February 2013 [Dec 10, 2012] and The upcoming Chinese tablet and device invasion lead by the Allwinner SoCs [Dec 4, 2012], both from my own separated trend tracking site devoted to the ‘Allwinner phenomenon’ coming from mainland China and having the potential of drastically altering the 2013 device market (not taken into account at all by Goldmann Sachs report):
that already resulted in huge growth of the mainland China Android tablet manufacturing in 2012, as well shown by this chart:which has already fundamentally affected the worldwide tablet market in 2012:
7. What Allwinner started in 2012 with the single core A10/A13 SoCs and which was further boosted by the quad-core Cortex-A7 A31 SoC on Dec 5, 2012 with the release of Onda V972 and V812 tablets (for US$ 208 and US$144 respectively) is an incredible strategic inflection point for the whole ICT industry, which ALL SoC vendors should compete with. Rockchip shown as the #2 on the mainland China market just followed the suite:
8. Now the most ambitious external challenger Marvell Announces Industry’s Most Advanced Single-chip Quad-core World Phone Processor to Power High-performance, Smartphones and Tablets with Worldwide Automatic Roaming on 3G Networks [press release, Feb 19, 2013] which is going to add to the competition the integrated on the SoC 3.5G modems:
Marvell’s PXA1088 is the industry’s most advanced single-chip solution to feature a quad-core processor with support for 3G field-proven cellular modems including High Speed Packet Access Plus (HSPA+), Time division High Speed Packet Access Plus (TD-HSPA+) and Enhanced Data for GSM Environment (EDGE).
The Marvell PXA1088 solution incorporates the performance of a quad-core ARM Cortex-A7 with Marvell’s mature and proven WCDMA and TD-SCDMA modem technology to provide a low-cost [elsewhere stated by Marvell that this SoC is for the phones space in the “$100 range”] 3G platform for both smartphones and tablets. The advanced application processor technology of the PXA1088 enables a breakthrough end user experience for multimedia and gaming applications with universal connectivity. Marvell’s complete mobile platform solution includes the Avastar® 88W8777 WLAN + Bluetooth 4.0 + FM single-chip SoC and the L2000 GNSS Hybrid Location Processor, and an integrated power management and audio codec IC.
Marvell’s PXA1088 is backward pin-to-pin compatible with its dual-core single-chip Unified 3G Platform, the PXA988/PXA986, enabling device partners to upgrade their next-generation mobile devices to quad-core without additional design cost.
Currently, the PXA1088 platform is sampling with leading global customers. Products based on this platform are expected to be commercially available in 2013 [elsewhere stated by Marvell that “We’ll start seeing PXA1088-based phones in the first half of this year”].
9. Yesterday we had two significant advancements described in the Ubuntu and HTC in lockstep [Feb 19, 2013] post here. Especially the Ubuntu related part is remarkable as first time we had a new platform which can span the whole spectrum of devices: from smartphones, to tablets, to desktops, to TVs – actually all from a smartphone capability expanded via docking and other means to a screen, to a TV, a keyboard, and a mouse. This is certainly an extreme case of the new Ubuntu capability which can have implementation in different devices as well. Even in that case, however, the source and binary codes could be the same. This is also cleverly using the already well established Android drivers and Android Board Support Package (BSP) infrastructure of the most cost-efficient ARM SoC vendors. Note that this is furthest from any “license violation” attacks as the original OHA terms and conditions are stating the Apache V2 licencing which:
The Apache license allows manufacturers and mobile operators to innovate using the platform without the requirement to contribute those innovations back to the open source community. Because these innovations and differentiated features can be kept proprietary … Because the Apache license does not have a copyleft clause, industry players can add proprietary functionality to their products based on Android without needing to contribute anything back to the platform. As the entire platform is open, companies can remove functionality if they choose.
10. Finally today came Google Glass: showing how radically the user experience might be changing in the next 2-3 years:
Conclusion: There are even more uncalculated by Goldmann and Sachs advancements in the non-Apple and non-Microsoft spaces than in Apple and Microsoft ones. Just in these 3 months! Therefore it would be ridiculous if Goldmann and Sachs’ “consumer compute platform share” forecast as shown in the chart above will be fullfilled!
Boosting both the commodity and premium brand markets in 2013 with much more smartphones and tablets while the Windows notebook shipments will shrink by 2%
This is my conclusion after reviewing
- The ongoing trends in the commodity and premium brand ecosystems of Android devices:
- The emerging new trends in the premium ecosystem of the Windows devices:
as reported by the most knowledgeable sources.
Updates: – ODMs see weaker profits from tablet business [DIGITIMES, March 26, 2013]
As Google and Amazon reportedly will release their next-generation 7-inch entry-level tablets in the near future, sources from the upstream supply chain have estimated that related ODMs’ profits from these tablets will be about 20% less than those from notebooks.
Since tablets have a simpler design than notebooks, the ODMs are only able to earn about US$9-10 for each tablet made, lower than US$13-20 for notebooks.
In addition, fewer components needed means that ODMs will have difficulties using their purchasing advantages to earn profits, and tablet brand vendors’ demand for specific components will also impact the makers’ profits, the sources noted.
Seeing weak growth in the notebook industry, most ODMs have turned to place their focuses on the tablet market and are competing aggressively for orders through price cuts, the sources said.
– Wintel camp mulls measures to rekindle weakening notebook industry [DIGITIMES, Feb 21, 2013]
Suppliers within the Wintel camp are mulling to launch a series of measures, including price cuts for their products, in the second quarter of 2013 to rekindle the stymied notebook industry caused by growing popularity of tablets, according to industry sources.
The launch of Windows 8 has failed to ignite replacement demand for notebooks in the end markets, resulting in a prolonged inventory adjustment process at the supply chain that has been going on since the third quarter of 2012, the sources noted.
With market reports indicating that global tablet shipments are likely to reach 200-300 million units in 2013, including 150 million units in China and other emerging markets, notebook vendors will see their market share continue to be eroded by tablets, commented the sources.
While agreeing to the consensus that price-cutting will be the only way to stimulate notebook demand, related PC chip suppliers are urging the major players in the Wintel camp, mainly Intel and Microsoft, to take the lead in action so that the entire supply chain can follow.
The Wintel camp has always chosen to start cutting their product prices in the third quarter each year, noted the sources, but it would be too late to safeguard the notebook industry as well as its supply chain if Intel and Microsoft do not take actions till the third quarter this year.
Since Intel usually will cut significantly its CPU prices prior to the launch of new models, the planned launch of Haswell platform in June may persuade the chip giant to lower the quotes for its Ivy Bridge family CPUs earlier, the sources revealed.
But it remains to be seen if price cuts by Intel alone could stir up notebook replacement demand amid the squeezing-out effect triggered by the rise of tablets, mobile phones and other mobile Internet devices, commented the sources.
End of updates
Before reading the sections of this post corresponding to the above, do not forget to read my own analytical posts which are based on the new product directions and supporting SoC trends (and as such predicting the year 2013 market even better than the external analyses quoted here which are mainly based on supply chain trends and market changes observed already in 2012):
– $48 Mogu M0 “peoplephone”, i.e. an Android smartphone for everybody to hit the Chinese market on November 15 [Nov 9, 2012]
– Lowest H2’12 device cost SoCs from Spreadtrum will redefine the entry level smartphone and feature phone markets [July 26 – Nov 9, 2012]
– The low priced, Android based smartphones of China will change the global market [Sept 10-26, 2012]
– Unique differentiators of Nokia Lumia 920/820 innovated for high-volume superphone markets of North America, Europe and elsewhere [Sept 6 – Nov 13, 2012]
– With Asha Touch starting at $83 and Lumia at $186 Nokia targeting the entry-level and low-end smartphone markets [Nov 1, 2012]
– Boosting the MediaTek MT6575 success story with the MT6577 announcement – UPDATED with MT6588/83 coming
early 2013 in Q42012 and 8-core MT6599 in 2013 [June 27, July 27, Sept 11-13, Sept 26, Oct 2, 2012]
– MT6577-based JiaYu G3 with IPS Gorilla glass 2 sreen of 4.5” etc. for $154 (factory direct) in China and $183 [Sept 13, 2012]
– China’s HW engineering lead: The Rockchip RK292 series (RK2928 and RK2926) example [Oct 27, 2012]
– Nexus 7: Google wanted it in 4 months for $199/$245, ASUS delivered + Nexus Q (of Google’s own design and manufacturing) added for social streaming from Google Play to speakers and screen in home under Android device control [June 28, 2012]
– Giving up the total OEM reliance strategy: the Microsoft Surface tablet [June 19 – July 30, 2012]
– ASUS: We are the real transformers, not Microsoft [Oct 17, 2012]
– Microsoft Surface: its premium quality/price vs. even iPad3 [Oct 26, 2012]
– BUILD 2012: Notes on Day 1 and 2 Keynotes [Oct 31, 2012]
– Acer Iconia W510: Windows 8 Clover Trail (Intel Z2760) hybrid tablets from OEMs [Oct 28, 2012]
– Microsoft Surface with some questions about the performance and smoothness of the experience [Nov 12, 2012]
Update: The sections of this post are somewhat taking into the account the most dramatic disruption in the whole history of ICT, what I am calling the ‘ALLWINNER PHENOMENON’ (all ‘Allwinner et al phenomenon’ sometimes when including Allwinner’s internal mainland China competitors such as Rockchip into account as well). EVERYBODY SHOULD BE AWARE of the fact, however, that even in the latest forecasts by bigname ICT market researchers the ‘Allwinner phenomenon’ is not taken into account at all. The two very recent updates from IDC given below should therefore be read with that in mind as the ‘Allwinner phenomenon’ will add hundreds of millions to those forecasts starting as early as in 2013. Especially the numbers for the tablets will be affected. To understand more about that please read my special posts given in a newly created blog about the ‘Allwinner phenonmenon’:
– Allwinner A31 SoC is here with products and the A20 SoC is coming [Dec 10, 2012]
– Is low-cost enough for global success? [Dec 5, 2012]
– The upcoming Chinese tablet and device invasion lead by the Allwinner SoCs [Dec 4, 2012]
– $40 entry-level Allwinner tablets–now for the 220 million students Aakash project in India [Dec 4, 2012] from this alone 220 million additional tablets would have been delivered from 2013 to 2016
– USD 99 Allwinner [Nov 30, 2012]
– It’s a Strategic Inflection Point [Dec 1, 2012]
Update: HTC 1Q13 smartphone shipments to grow slower than expected, say sources [DIGITIMES, Dec 18, 2012]
Affected by the launch of iPhone 5 and rapidly declining smartphone prices in China, HTC reportedly has revamped its product roadmap for 2013 and is expected to see its smartphone shipments rise 10-15% sequentially in the first quarter of the year compared to a 20-30% growth projected previously, according to industry sources.
HTC has suspended development of a number of new models for 2013, reducing the visibility of its orders for handset components, the sources revealed.
HTC declined to comment on market speculation.
However, the industry watchers believe that HTC is heading for a bumpy road ahead, since shipments of its Windows Phone 8-based smartphones have not been as strong as expected, while Apple’s iPhone 5 and Samsung Electronics’ Galaxy III have continued to enjoy brisk sales.
In China, HTC is facing cut-throat competition from local white-box smartphone vendors and has been forced to enter the sub-CNY2,000 (US$321) segment, which runs counter to its established policy focusing mainly on the high-end sector, said the sources.
Update: Worldwide Smart Connected Device Market, Led by Samsung and Apple, Grew 27.1% in the Third Quarter, According to IDC [IDC press release, Dec 10, 2012]
The worldwide smart connected device market – a collective view of PCs, tablets, and smartphones – grew 27.1% year-over-year in the third quarter of 2012 (3Q12) reaching a record 303.6 million shipments valued at $140.4 billion dollars. Expectations for the holiday season quarter are that shipments will continue to reach record levels rising 19.2% over 3Q12 and 26.5% over the same quarter a year ago. According to the International Data Corporation (IDC) Worldwide Quarterly Smart Connected Device Tracker, 4Q12 shipments are expected to reach 362.0 million units with a market value of $169.2 billion dollars. Holiday season growth will be driven by tablets and smartphones, which are expected to grow 55.8% and 39.5% year-over-year respectfully, while PCs are expected to decline slightly from this quarter a year ago.
From a vendor perspective, Samsung maintained the top position in 3Q12 with 21.8% market share based on shipments. Apple, which ranked second overall in shipments, led all vendors in value with a total of $34.1 billion in 3Q12 and an average selling price (ASP) of $744 across all device categories. Following Samsung’s 21.8% share and Apple’s 15.1% share were Lenovo (7.0%), HP (4.6%), and Sony (3.6%). While Samsung, Apple, and Lenovo have all grown share over the past year, HP, which is virtually non-existent in the mobile space, has dropped its share from 7.4% in 3Q11 to 4.6% in 3Q12 with shipments declining -20.5% during that time.
“The battle between Samsung and Apple at the top of the smart connected device space is stronger than ever,” said Ryan Reith, program manager, Worldwide Mobile Device Trackers at IDC. “Both vendors compete at the top of the tablet and smartphone markets. However, the difference in their collective ASPs is a telling sign of different market approaches. The fact that Apple’s ASP is $310 higher than Samsung’s with just over 20 million fewer shipments in the quarter speaks volumes about the premium product line that Apple sells.”
Looking forward, IDC expects the worldwide smart connected device space will continue to surge well past the strong holiday quarter and predicts shipments to surpass 2.1 billion units in 2016 with a market value of $796.7 billion worldwide. IDC’s research clearly shows this to be a multi-device era, although market dynamics are shifting in terms of product category. In 2011, PC’s – a combination of desktop and portable PCs – accounted for 39.1% of the smart connected device market. By 2016 it is expected to drop to 19.9%. Smartphones will be the preferred product category with share growing from 53.1% in 2011 to 66.7% in 2016. Tablets will also grow significantly with share growing from 7.7% in 2011 to 13.4% in 2016. The shift in demand from the more expensive PC category to more reasonably priced smartphones and tablets will drive the collective market ASP from $534 in 2011 to $378 in 2016.
“Both consumers and business workers are finding the need for multiple ‘smart’ devices and we expect that trend to grow for several years, especially in more developed regions,” said Bob O’Donnell, program vice president, Clients and Displays. “The advent of cloud-based services is enabling people to seamlessly move from device to device, which encourages the purchase and usage of different devices for different situations.”
Top 5 Smart Connected Device Vendors, Shipments, and Market Share, Q3 2012 (shipments in millions)
3Q12 Unit Shipments
3Q12 Market Share
3Q11 Unit Shipments
3Q11 Market Share
Source: IDC Worldwide Quarterly Smart Connected Device Tracker, December 10, 2012.
Smart Connected Device Market by Product Category, Shipments, Market Share, 2012-1016 (shipments in millions)
2016 Unit Shipments
2016 Market Share
2012 Unit Shipments
2012 Market Share
Source: IDC Worldwide Quarterly Smart Connected Device Tracker, December 10, 2012.
Update: IDC Raises Tablet Forecast for 2012 and Beyond As iOS Picks Up Steam, Android Gains Traction, and Windows Finally Enters the Market [IDC press release, Dec 5, 2012]
A strong competitive landscape—including surging Android tablet shipments and robust demand for Apple’s new iPad mini—has led International Data Corporation (IDC) to increase its 2012 forecast for the worldwide tablet market to 122.3 million, up from its previous forecast of 117.1 million units. In the latest forecast update of the Worldwide Quarterly Tablet Tracker, IDC also raised its 2013 forecast number to 172.4 million units, up from 165.9 million units. And by 2016 worldwide shipments should reach 282.7 million units, up from a previous forecast of 261.4 million units.
“Tablets continue to captivate consumers, and as the market shifts toward smaller, more mobile screen sizes and lower prices points, we expect demand to accelerate in the fourth quarter and beyond,” said Tom Mainelli, research director, Tablets at IDC. “Android tablets are gaining traction in the market thanks to solid products from Google, Amazon, Samsung, and others. And Apple’s November iPad mini launch, along with its surprise refresh of the full-sized iPad, positions the company well for a strong holiday season.”
In addition to increasing the unit totals for 2013, IDC also updated its operating system splits for the year to reflect Android’s growing strength in the tablet market. IDC now expects Android’s worldwide tablet share to increase from 39.8% in 2011 to 42.7% for the full year of 2012. During that same time Apple’s share will slip from 56.3% in 2011 to 53.8% in 2012. Long term, IDC predicts Windows-based tablets (including Windows 8 and Windows RT) will grab share from both iOS and Android, growing from 1% of the market in 2011 to 2.9% in 2012, on its way to 10.3% in 2016.
“The breadth and depth of Android has taken full effect on the tablet market as it has for the smartphone space,” said Ryan Reith, program manager for IDC’s Mobile Device Trackers. “Android tablet shipments will certainly act as the catalyst for growth in the low-cost segment in emerging markets given the platform’s low barrier to entry on manufacturing. At the same time, top-tier companies like Samsung, Lenovo, and ASUS are all launching Android tablets with comparable specs, but offered at much lower price points.”
Once again, IDC’s increase in tablet shipments comes at the expense of eReaders. IDC lowered its forecast for eReaders for 2012 and beyond. While the front-lit eReader offerings from Amazon and Barnes & Noble have captured the interest of a subset of consumers who prefer a dedicated eReader, most buyers are gravitating toward multi-use tablet products and finding a ‘good enough’ reading experience on these traditional back-lit tablets. IDC now expects 2012 eReader shipments to top out at 19.9 million units, down from the 27.7 million units that shipped in 2011.
Tablet Operating Systems, Market Share Forecast and CAGR 2012-2016
2012 Market Share
2016 Market Share
CAGR 2012 – 2016 (%)
Source: IDC Worldwide Quarterly Tablet Tracker, December 5, 2012
- Windows shipments include Windows RT, Windows 8, and Windows 7 tablets.
- Shipments include shipments to distribution channels or end users. OEM sales are counted under the vendor/brand under which they are sold.
The ongoing trends in the commodity
and premium brand ecosystems of Android devices
Motorola likely to bid farewell to Taiwan handset ODMs after Google sells plants to Flextronics [DIGITIMES, Dec 17, 2012]
The partnerships between Motorola Mobility and Taiwan-based handset ODMs such as Foxconn International Holdings (FIH) will begin to fade away, as Google, the parent company of Motorola, has signed an agreement to hand over Motorola’s manufacturing operations in Tianjin, China, and Jaguariuna, Brazil to Flextronics International, according to industry sources.
After the deal between Google and Flextronics is completed in the first half of 2013, Motorola will completely withdraw from the handset manufacturing industry, and instead will transform to a brand operator targeting mainly the mid-range to high-end smartphone segment, the sources indicated.
While the streamlining of Motorola’s operations comes as no surprise to Taiwan handset ODMs, Google’s decision to sell Motorola’s plants to Flextronics, instead of its long-tern partner FIH, has raised concerns among the industry.
Flextronics is purchasing the plants in exchange for orders from Motorola since the Singapore-based EMS giant has made little progress in gaining handset orders from Apple or major players in the Android or Windows Phone camps, the sources commented.
It is also no longer necessary for FIH to buy plants in exchange for orders, as the company has transferred from handset EMS operations to focus on smartphone ODM business, indicated the sources, adding that FIH has also managed to establish partnerships with a number of major players in the smartphone sector.
However, a deepened cooperation between Motorola and Flextronics may affect the handset component supply chain in Taiwan, the sources warned.
Digitimes Research: Android phones to account for 70% of global smartphone market in 2013 [DIGITIMES Research, Dec 6, 2012]
Android will further solidify its market leadership in the smartphone operating system race in 2013, thanks to a broad support from smartphone vendors and the rollout of a wide range of low-priced models for sale in emerging markets. Shipments of Android phones are expected to top 600 million units or over 70% of global smartphone shipments in 2013, Digitimes Research estimates.
iOS will trail Android to take the number two position in the OS ratings with a 20% share, while other smartphone platforms will share the remaining 10%.
Shipments of Windows Phones, including 7.x and 8.x models, will grow 150% on year to 52.5 million units in 2013 for a 6.1% share, followed by RIM’s BlackBerry devices with a 3.7% share, Digitimes Research estimates. Other platforms, including Tizen and Firefox, will take up a portion lower than 1%.
Digitimes Research: Global smartphone shipments to grow 30% in 2013 [DIGITIMES Research, Nov 19, 2012]
Global smartphone shipments are expected to grow 30% to 865 million units in 2013, accounting for 43.9% of total handset shipments in the year, Digitimes Research has estimated.
Factors including relationships between platform providers and hardware makers, support from telecom carriers for new models, and key developments or decisions by some vendors will affect smartphone sales in 2013, Digitimes Research believes.
Google is expected to further strengthen its control over the Android ecosystem and its production partners, which may limit the development of other platforms or variant Android models.
Microsoft’s launch of own-brand smartphones may result in a reduction in support for the Window Phone platform by hardware vendors, which should otherwise serve as a key factor to push for the growth of the Window Phone to become a third major platform in the segment.
While Amazon is likely to enter the smartphone market, 2013 may be crucial a year for Nokia and RIM (Research in Motion) to make vital decisions concerning their smartphone businesses.
Demand for high-end smartphone models in Western Europe will be affected seriously by reduced government budgets and weak consumption in the region because of the prolonged financial crisis.
However, smartphones’ growing penetration in China, Russia, India, Indonesia, South America and other emerging markets will serve as a growth driver for global smartphone shipments in 2013, Digitimes Research believes.
Google, Amazon and other vendors in China to lead pricing in low-cost smartphone segment, say sources [DIGITIMES , Nov 5, 2012]
While sales of low-cost smartphones are expected to continue growing in the next few years, Google, Amazon and other Internet service companies in China may lead price competition in the segment, according to industry sources.
Shipments of low-cost smartphones, defined as models with a selling price of less than US$150, are forecast to double every year from 2010 to 2016, increasing from 4.5 to 311 million units, according to NPD DisplaySearch.
Most of the demand (60%) is from the Asia Pacific region, where a large majority of component suppliers and manufacturing factories are located – providing both time and cost savings, said DisplaySearch.
In China, the trend for telecom carriers to continue cooperating with chipset suppliers, handset design houses and handset vendors for the launch low-priced smatphone models will continue for a while, the sources noted.
Vendors including Huawei Device, ZTE, Lenovo and Coolpad have emerged as the leading group of the smartphone suppliers in China through the offerings of low-cost models, but most of vendors has suffered losses or seen the profits of their handset business decline due to fierce price competition in the segment, the sources revealed.
Lenovo’s handset business unit is still operating in red, and Huawei and Coolpad have seen their profits decline, while ZTE and TCL have seen their handset businesses swing from profitability to loss, the sources indicated.
In order to stemming losses, or improving profitability, most branded smartphone vendors in China have been trying to expand their share in the mid- and high-end segment, while pushing their sales through local retain channels or export sales.
But other China-based smartphone vendors such as Xiaomi Technology, Internet service companies including Baidu and Shada Interactive Entertainment, as well as online retail giant 360buy, are likely to continue to adopt aggressive price strategies to pushing sales of their own models, said the sources.
In the global market, the cooperation between Google and LG Electronics for the launch of Nexus 4 at prices ranging from US$299-349 is also expected to lead to the proliferation of more low-priced Android smartphone models, the sources indicated.
Amazon, which has been aggressive in the tablet segment, is expected to release its first smartphone model in 2013 with the same price tactics, which is likely to further drive down the prices of smartphones, commented the sources.
Digitimes Research: Nexus 4 to be popular in prepaid SIM card and telecom retail channels [DIGITIMES Research, Nov 7, 2012]
Google’s Nexus 4, which comes with a 4.7-inch 720p HD display and Qualcomm quad-core Snapdragon S4 processor, is expected to become a popular model in the prepaid SIM card segment as well as in telecom retail channels for unlocked subscribers, according to Digitimes Research.
With its high hardware specifications and pricing of US$299 for the 8GB version and US$349 for the 16GB version, the Nexus 4 will cause price pressure on other comparable models rolled by rival brands.
Sales of Windows phones are expected to grow 250% in 2013 due in part to support from telecom carriers which are seeking a third platform other than Android or iOS. However, Android will continue to lead the market with a wide margin, Digitimes Research said.
Google aggressive pricing for Nexus 4 smartphone to affect sales of other brands [DIGITIMES, Oct 30, 2012]
Google’s pricing of US$299-349 for its newly released 4.7-inch, quad-core Nexus 4 smartphone is lower than market expectations, and thus could affect the sales of Android-based smartphones launched by other branded vendors, according to industry sources.
Prior to the release of the Nexus 4 in cooperation with LG Electronics, Google had cooperated with HTC and Samsung Electronics, respectively, for the launch of three generations of Nexus smartphones with prices ranging from US$500-700.
The Nexus 4 will enjoy the advantage in pricing even compared to the latest quad-core Android models rolled out by other vendors, indicated the sources, noting that Asustek Computer’s 4.7-inch Padfone 2 is available for US$600, while China-based Xiaomi Technology’s second-generation Xiaomi phone is priced at CNY1,999 (US$320).
Other Android-based smartphone vendors, including HTC, Sony Mobile Communications, Huawei Device, ZTE and even Motorola Mobility, all are likely to adjust their price strategies, since chances are high that the Nexus 4 will make a strong impact on the smartphone market, commented the sources.
China market: Nexus 4 pricing to affect sales, prices of other brands, says report [DIGITIMES, Nov 7, 2012]
The aggressive pricing strategy adopted by Google for its Nexus 4 may affect sales of Xiaomi smartphones in China and may also force other brands including Samsung Electronics, Motorola and HTC to lower the prices of their offerings in China, according to a China-based 21st Century Business Herald report.
The price of US$299 (CNY1,890) for the 8G version of the Nexus 4 is more competitive than Xiaomi’s next-generation quad-core smartphone which is available at CNY1,999, the paper noted.
Xiaomi is selling its first quad-core model below its BOM of CNY2,350 and will limit initial sales of the model to 50,000 units only, said the paper, which added that Xiaomi aims to ramp up volumes to 250,000 units to bring down the BOM when it begins to offer the second round of sales in mid-November.
Although the Nexus is not yet available in China, consumers may hesitate to pick up the quad-core Xiaomi smartphones because they have to wait for several months before Xiaomi will begin delivering the devices, said the paper.
China market: Coolpad hopes to regain mid-range, high-end smartphone share [DIGITIMES , Nov 7, 2012]
China-based handset maker Coolpad hopes to re-enter the mid-range and high-end smartphone market in China by introducing smartphone products with China Mobile that will be priced above CNY5,000/unit (US$800/unit).
In the recent years, Coolpad has been focusing on smartphones at the price range of CNY1,000/unit by cooperating with China’s three telecom service providers. Entry-level and mid-range models have accounted for 85% of Coolpad’s total shipments. The firm recently introduced a new model, Coolpad 9960 (Da Guan HD), with a 4.7-inch screen, Nvidia Tegra 3 quad-core processor, and a 13-megapixel front camera. The model will be priced above CNY5,000/unit.
Currently, China’s mid-range and high-end smartphone markets have been dominated by international brands such as Apple, HTC, Motorola, and Sony. Coolpad has been the only local brand that has a relatively strong market share.
According to industry sources, in 2012, Coolpad increased investment in R&D of high-end products by 20% on year and formed an R&D team of 800 staff to strengthen its high-end product line.
A total of 60 million smartphones were shipped to the China market in the third quarter of 2012, and Lenovo, Huawei and ZTE shipped nine million units, 8.5 million units and 7.5 million units, respectively, with a combined market share of 41.7%, according to DRAMeXchange under consulting company TrendForce.
Except for Apple and Samsung Electronics, other international vendors including HTC, Sony Mobile Communications, LG Electronics, Nokia have not been able to attain quarterly shipments of 10 million smartphones, the sources indicated. Lenovo, Huawei and ZTE stand a chance to ship 10 million smartphones a quarter if they can strengthen their branding operations, marketing and product lines of mid-range and high-end models in overseas markets, the sources pointed out.
Lenovo has focused on entry-level smartphones priced below CNY1,500 (US$240) and relied too much on the domestic market, the sources indicated. In comparison with Lenovo, Huawei and ZTE have the advantage of cooperation with mobile telecom carriers in many countries, but their brand image is not strong enough for marketing mid-range and high-end smartphones, the sources pointed out.
PC vendors recommended to target niche smartphone market to avoid direct competition [DIGITIMES , Oct 3, 2012]
Branded PC vendors including Hewlett-Packard (HP) and Asustek Computer, which plan to reignite their smartphone businesses, are recommended to offer models with strong application platforms, sleek product design and integrated cloud computing capabilities targeting niche markets, while avoiding direct competition with smartphone vendors, according to sources at Taiwan’s handset supply chain.
Among the leading brands, HP, Dell and Asustek have not launched new handsets for some time, while Acer has made little progress in the sector although it has continued rolling out new phones, indicated the sources.
Lenovo’s performance has been exceptional, taking the second-ranked title in China’s smartphone market by optimizing an array of entry-level models priced at around CNY1,000 (US$158).
The reason major branded PC vendors are considering a comeback to the smartphone market hinges on emerging business opportunities that are anticipated to come along with the launch of Windows 8. They are hoping that sales of Windows 8-based PCs will help promote the sale of Windows Phone 8 smartphones as well.
Even so, prospects are still slim for PC brands to make a strong presence in the smartphone market, given that Apple and Samsung Electronics are currently the top-2 vendors dominating the segment, while other smartphone brands including Nokia, RIM, Sony Mobile Communications, Motorola Mobility are lagging behind with heavy losses, the sources commented.
Worldwide Mobile Phone Growth Expected to Drop to 1.4% in 2012 Despite Continued Growth Of Smartphones, According to IDC [IDC press release, Nov 1, 2012]
The worldwide mobile phone market is forecast to grow 1.4% year over year in 2012, the lowest annual growth rate in three years despite a projected record number of smartphone shipments in the high-volume holiday season. According to the International Data Corporation (IDC) Worldwide Quarterly Mobile Phone Tracker, vendors will ship more than 1.7 billion mobile phones this year. In 2016, IDC forecasts 2.2 billion mobile phones will be shipped to the channel.
Global smartphone volume in the fourth quarter of 2012 (4Q12) is expected to reach 224.5 million units, representing 39.5% year-over-year growth due primarily to strong consumer demand. For the year, smartphone shipments are forecast to grow 45.1% year over year to 717.5 million units. Strong smartphone growth is a result of a variety of factors, including steep device subsidies from carriers, especially in mature economic markets where carriers resell the majority of smartphones, as well as a growing array of sub-US$250 smartphones in emerging markets.
“Sluggish economic conditions worldwide have cast a pall over the mobile phone market this year,” said Kevin Restivo, senior research analyst with IDC’s Worldwide Quarterly Mobile Phone Tracker. “However, the fourth quarter will be relatively bright due in part to sales of high-profile smartphones, such as the iPhone 5 and Samsung’s Galaxy S3, in addition to lower-cost Android-powered smartphones shipped to China and other high-growth emerging markets.”
Smartphone Operating Systems
“Underpinning the worldwide smartphone market is a constantly shifting mobile operating system landscape,” added Ramon Llamas, research manager with IDC’s Mobile Phone team. “Android is expected to stay in front, but we also expect it to be the biggest target for competing operating systems to grab market share. At the same time, Windows Phone stands to gain the most market share as its smartphone and carrier partners have gained valuable experience in selling the differentiated experience Windows Phone has to offer. What bears close observation is how BlackBerry’s new platform, BlackBerry 10, and multiple versions of Linux will affect the market once the devices running these systems are available.”
IDC forecasts Android to be the clear leader in the smartphone mobile operating system race, thanks in large part to a broad selection of devices from a wide range of partners. Samsung is the leading Android smartphone seller though resurgent smartphone vendors LG Electronics and Sony, both of which cracked the top five smartphone vendors during 3Q12, are not to be overlooked. IDC believes the net result of this will be continued double-digit growth throughout the forecast period.
iOS will maintain its position as the clear number two platform behind Android at the end of 2012 and throughout the forecast. The popularity of the iPhone across multiple markets will drive steady replacements and additional carrier partners will help Apple grow iOS volume. However, the high price point of the iPhone relative to other smartphones will make it cost prohibitive for some users within many emerging markets. In order to maintain current growth rates, Apple will need to examine the possibility of offering less expensive models, similar to its iPod line. Until that happens, IDC forecasts iOS to ship lower volumes than Android.
The BlackBerry OS will grow slowly but largely maintain share over the coming years following the BlackBerry 10 launch next year. The new operating system and devices will be valued by some longtime BlackBerry fans, particularly those who have waited for the new OS as Research In Motion delayed its release. This will allow the company to maintain pockets of strength in higher-growth emerging markets such as Indonesia and various Latin American countries. But, as with many other new platforms, the success of BB 10 will be partly dependent upon channel advocacy, like sales associates who can effectively tell the BlackBerry story.
Windows Phone will battle with BlackBerry for the number three spot in 2013, but will gain further clarity in the years that follow. Windows Phone will build on the progress it made in 2012, with Nokia establishing its presence and HTC solidly jumping back into the race. Moreover, contributions by Samsung, ZTE, and Huawei will help grow its footprint. With more vendors releasing more devices aimed at multiple segments, sales associates will be better positioned to tell a compelling Windows Phone story and to explain the value of Windows Phone’s differentiated experience compared to market leaders Android and iOS.
Linux will trail the market leaders throughout our forecast though it is expected to be the dark horse of the forecast. K-Touch has quietly built its Linux volumes this year while Haier recently released its first Linux smartphones. In addition, multiple platforms are expected to announce and launch their Linux-based smartphones in 2013, including Samsung’s Tizen and Jolla’s SailFish. Benefiting these platforms are their ties to previous platforms from the LiMo Foundation and Nokia’s MeeGo, which could lead to greater developer interest.
Top Smartphone Operating Systems, Forecast Market Share and CAGR, 2012–2016
2012 Market Share
2016 Market Share
CAGR 2012 – 2016 (%)
Source: IDC Worldwide Mobile Phone Tracker, December 3, 2012
Android Marks Fourth Anniversary Since Launch with 75.0% Market Share in Third Quarter, According to IDC [IDC press release, Nov 1, 2012]
The Android smartphone operating system was found on three out of every four smartphones shipped during the third quarter of 2012 (3Q12). According to the International Data Corporation (IDC) Worldwide Quarterly Mobile Phone Tracker, total Android smartphone shipments worldwide reached 136.0 million units, accounting for 75.0% of the 181.1 million smartphones shipped in 3Q12. The 91.5% year-over-year growth was nearly double the overall market growth rate of 46.4%.
“Android has been one of the primary growth engines of the smartphone market since it was launched in 2008,” said Ramon Llamas, research manager, Mobile Phones at IDC. “In every year since then, Android has effectively outpaced the market and taken market share from the competition. In addition, the combination of smartphone vendors, mobile operators, and end-users who have embraced Android has driven shipment volumes higher. Even today, more vendors are introducing their first Android-powered smartphones to market.”
“The share decline of smartphone operating systems not named iOS since Android’s introduction isn’t a coincidence,” said Kevin Restivo, senior research analyst with IDC’s Worldwide Quarterly Mobile Phone Tracker. “The smartphone operating system isn’t an isolated product, it’s a crucial part of a larger technology ecosystem. Google has a thriving, multi-faceted product portfolio. Many of its competitors, with weaker tie-ins to the mobile OS, do not. This factor and others have led to loss of share for competitors with few exceptions.”
Mobile Operating System Highlights
Android, having topped the 100 million unit mark last quarter, reached a new record level in a single quarter. By comparison, Android’s total volumes for the quarter were greater than the total number of smartphones shipped in 2007, the year that Android was officially announced. Samsung once again led all vendors in this space, but saw its market share decline as numerous smaller vendors increased their production.
iOS was a distant second place to Android, but was the only other mobile operating system to amass double-digit market share for the quarter. The late quarter launch of the iPhone 5 and lower prices on older models prevented total shipment volumes from slipping to 3Q11 levels. But without a splashy new OS-driven feature like Siri in 2011 and FaceTime in 2010, the iPhone 5 relied on its larger, but not wider, screen and LTE connectivity to drive growth.
BlackBerry‘s market share continued to sink, falling to just over 4% by the end of the quarter. With the launch of BlackBerry 10 yet to come in 2013, BlackBerry will continue to rely on its aging BlackBerry 7 platform, and equally aging device line-up. Still, demand for BlackBerry and its wildly popular BBM service is strong within multiple key markets worldwide, and the number of subscribers continues to increase.
Symbian posted the largest year-on-year decline of the leading operating systems. Nokia remains the largest vendor still supporting Symbian, along with Japanese vendors Fujitsu, Sharp, and Sony. Each of these vendors is in the midst of transitioning to other operating systems and IDC believes that they will cease shipping Symbian-powered smartphones in 2013. At the same time, the installed base of Symbian users will continue well after the last Symbian smartphone ships.
Windows Phone marked its second anniversary with a total of just 3.6 million units shipped worldwide, fewer than the total number of Symbian units shipped. Even with the backing of multiple smartphone market leaders, Windows Phone has yet to make a significant dent into Android’s and iOS’s collective market share. That could change in 4Q12, when multiple Windows Phone 8 smartphones will reach the market.
Linux volume declined for the third straight quarter as did its year-over-year growth. Samsung accounted for the majority of shipments once again, but like most other vendors competing with Linux-powered smartphones, most of its attention went towards Android instead. Still, that has not deterred other vendors from experimenting, or at least considering the open-source operating system, as multiple reports of Firefox, Sailfish, and Tizen plan to release new Linux-based experiences in the future.
Top Six Smartphone Mobile Operating Systems, Shipments, and Market Share, Q3 2012 (Preliminary) (Units in Millions)
3Q12 Shipment Volumes
3Q12 Market Share
3Q11 Shipment Volumes
3Q11 Market Share
Windows Phone 7/ Windows Mobile
Source: IDC Worldwide Mobile Phone Tracker, November 1, 2012
Note: Data are preliminary and subject to change. Vendor shipments are branded shipments and exclude OEM sales for all vendors.
Android Smartphone Shipments and Market Share, 2008 – 2012 YTD (Units in Millions)
Android Total Unit Shipments
Android Market Share
Source: IDC Worldwide Mobile Phone Tracker, November 1, 2012
Note: Data are preliminary and subject to change. Vendor shipments are branded shipments and exclude OEM sales for all vendors.
Gartner Says Worldwide Sales of Mobile Phones Declined 3 Percent in Third Quarter of 2012; Smartphone Sales Increased 47 Percent [Gartner press release, Nov 14, 2012]
Samsung Extended Its Lead in the Smartphone Market Widening the Gap with Apple
Worldwide sales of mobile phones to end users reached almost 428 million units in the third quarter of 2012, a 3.1 percent decline from the third quarter of 2011, according to Gartner, Inc. Smartphone sales accounted for 39.6 percent of total mobile phone sales, as smartphone sales increased 46.9 percent from the third quarter of 2011.
While the mobile phone market declined year-on-year, Gartner analysts said there were positive signs for the industry during the third quarter.
“After two consecutive quarter of decline in mobile phone sales, demand has improved in both mature and emerging markets as sales increased sequentially,” said Anshul Gupta, principal research analyst at Gartner. “In China, sales of mobile phones grew driven by sales of smartphones, while demand of feature phones remained weak. In mature markets, we finally saw replacement sales pick up with the launch of new devices in the quarter.”
Smartphones continued to fuel sales of mobile phones worldwide with sales rising to 169.2 million units in the third quarter of 2012. The smartphone market was dominated by Apple and Samsung. “Both vendors together controlled 46.5 percent of smartphone market leaving a handful of vendors fighting over a distant third spot,” said Mr. Gupta.
Nokia slipped from No. 3 in the second quarter of 2012 to No. 7 in smartphone sales in the third quarter of 2012. RIM moved to the No. 3 spot with HTC not far behind, at No. 4. “Both HTC and RIM have seen their sales declining in past few quarters, and the challenges might prevent them from holding on to their current rankings in coming quarters,” added Mr. Gupta.
While seasonality in the fourth quarter of 2012 will help end-of-year mobile phone sales to end users, Gartner analysts said that there will be a lower-than-usual boost from the holiday season. Consumers are either cautious with their spending or finding new gadgets like tablets, as more attractive presents.
Samsung’s mobile phones sales continued to accelerate, totaling almost 98 million units in the third quarter of 2012 (see Table 1), up 18.6 percent year-on-year. Samsung saw strong demand for Galaxy smartphones across different price points, and it further widened the gap with Apple in the smartphone market, selling 55 million smartphones in the third quarter of 2012. It commanded 32.5 percent of the global smartphone market in the third quarter of 2012.
Worldwide Mobile Device Sales to End Users by Vendor in 3Q12 (Thousands of Units)
3Q12 Market Share (%)
3Q11 Market Share (%)
Research in Motion
Source: Gartner (November 2012)
Nokia’s mobile phone sales declined 21.9 percent in the third quarter of 2012, but overall sales at 82.3 million were better than Gartner’s early estimate, largely driven by increased sales of the Asha full touch range. Nokia had a particularly bad quarter with smartphone sales, and it tumbled to the No. 7 worldwide position with 7.2 million smartphones sold in the third quarter. The arrival of the new Lumia devices on Windows 8 should help to halt the decline in share in the fourth quarter of 2012, although it won’t be until 2013 to see a significant improvement in Nokia’s position.
Apple’s sales to end users totaled 23.6 million units in the third quarter of 2012, up 36.2 percent year-on-year. “We saw inventory built up into the channel as Apple prepared for the coming holiday season, global expansions and the launch into China in the fourth quarter of 2012,” said Mr. Gupta. With iPhone 5 launching in more territories in the fourth quarter of 2012, including China, and the upcoming holiday season Gartner analysts expect Apple will have its traditionally strongest quarter.
In the smartphone market, Android continued to increase its market share, up 19.9 percentage points in the third quarter of 2012. Although RIM lost market share, it climbed to the No. 3 position as Symbian is nearing the end of its lifecycle. There was also channel destocking in preparation of new device launches for RIM, which resulted into 8.9 million sales to end users in the third quarter of 2012. With the launch of iPhone 5, Gartner analysts expect iOS share will grow strongly in the fourth quarter of 2012 because users held on to their replacements in many markets ahead of the iPhone 5 wider roll out. Windows Phone’s share weakened quarter-on-quarter as the Windows Phone 8 launch dampened demand of Windows Phone 7 devices.
Worldwide Mobile Device Sales to End Users by Operating System in 3Q12 (Thousands of Units)
3Q12 Market Share (%)
3Q11 Market Share (%)
Research In Motion
Source: Gartner (November 2012)
Additional information can be found in the Gartner report “Market Share: Mobile Phones by Region and Country, 3Q12.” The report is available on Gartner’s website at http://www.gartner.com/resId=2236115.
Digitimes Research: Global tablet shipments to surpass that of notebooks in 2013 [DIGITIMES Research, Nov 19, 2012]
Digitimes Research expects global tablet shipments to reach 210 million units in 2013, up 38.3% on year and surpass those of notebook for the first time, with branded tablet shipments to account for 140 million units, according to Digitimes Research senior analyst James Wang.
[Compare this to the notebook shipment forecast by Digitimes Research of 192 million units in 2012 expected to drop to 189 million units in 2013. See additional details of this forecast below in Digitimes Research: Windows 8 expected to have minimal impact on touch screen notebooks in 2013.]
In 2013, Google is expected to maintain its momentum from the Nexus series products and become the second largest tablet brand vendor worldwide with shipments of 19 million units. Apple will remain the largest tablet vendor worldwide, but its share in the global branded tablet shipments will drop to only 55.6% [i.e. 78 million units], down from more than 60% in 2012, and 37.4% in total tablet shipments (including white-box models).
With surging shipment growth for white-box tablets, Android is expected to become the largest platform in the tablet market, surpassing iOS. In 2013, Digitimes Research expects Android-based tablet shipments including white-box and branded models, to reach 121 million units, up 40.2% on year. [With the global 210 millions and branded 140 millions the white-box tablet shipments are expected to grow to 70 million units in 2013 vs. 50 millions this year. Therefore the branded Android based-tablets to become 51 millions, and as the Nexus tablets are said here to become 19 millions there will be 32 millions other branded Android tablets sold in 2013 .]
Digitimes Research also expects global tablet shipments will reach 320 million units in 2015 with branded tablets to account for 220 million units and white-box models to account for 100 million units.
Digitimes Research: Global Tablet Market to Enjoy Strong Shipment Growth in 4Q12 [DIGITIMES Research, Nov 13, 2012]
Global tablet shipments from major brands worldwide are expected to reach 40.93 million units in the fourth quarter of 2012, up 72.7% sequentially and 89.7% on year, according to Digitimes Research senior analyst James Wang.
As for the tablet vendor rankings in the quarter, Apple will remain as the largest vendor worldwide, while Amazon is expected to return as the second-largest and Google will rank third with assistance from its Nexus 7 and Nexus 10. Microsoft will rank fourth, Samsung Electronics fifth, and Barnes & Noble sixth. Asustek, Lenovo and Acer will rank seventh, eighth and ninth, respectively, Wang noted.
As for the tablet processor supplier rankings, Texas Instruments (TI) will return as the second-largest with Nvidia at third. Intel will also be ranked for the first time due to Windows 8.
Taiwan makers are expected to ship 36.6 million tablets combined in the fourth quarter, up 82.3% sequentially and 86.7% on year, with the volume accounting for 89% of global tablet shipments. Foxconn Electronics (Hon Hai Precision Industry) will be the largest tablet maker, followed by Quanta Computer, Pegatron Technology, Wistron and Compal Electronics.
Digitimes Research estimates that global branded tablet shipments will reach 104 million units in 2012, up 64% on year, with iPad accounting for 63% of the volume, down 2pp on year, while both Android and Windows will see their proportions increase.
In comparison the white-box tablet shipments are up by whopping 317% in 2012 at least (50 million units shipped as a minimum vs. 12 million units in 2011) according to sources given below:
Digitimes Research: White-box tablet shipments to surpass 50 million units in 2012 [DIGITIMES Research, Nov 8, 2012]
White-box tablets are expected to see a surge in shipment growth in 2012 with volumes surpassing 50 million units, according to Digitimes Research senior analyst James Wang.
There are three major drivers that will help white-box tablets achieve strong growth in the year: a large number of potential consumers brought in by Android handsets, mature development of China-based processors, and decreasing costs o white-box tablets. With the addition of white-box tablet shipments, Android is expected to surpass iOS and become the largest mobile operating system in 2012, while 7-inch displays will also become the mainstream specification for tablets.
As the branded tablet PC market is seeing fierce competition in terms of technology, capacity, yield rates, patents and prices, the rise of white-box tablets has already made these players a new force in the tablet market, with some white-box players even seeing higher shipment volumes than first-tier vendors.
Digitimes Research believes that brand vendors should be aware of white-box tablet players’ developments in the future, since even platform designers such as Google and Microsoft have used their resources to increase price competition in the tablet market, and the situation may gradually turn to favor China-based players with expertise in lowering costs.
Source: Digitimes Research, November 2012
or from the Chinese version of the same [Nov 9, 2012]:
China Fabless: Rockchip rattled by Android tablet wars [by Junko Yoshida on EE Times, Sept 25, 2012]
How many tablets does China make, how big is the Chinese market?
80 percent of media tablets made in China are exported
Unit: Million of units
Source: Chinese industry estimates
For more information see also: Yoshida in China: ‘Shanzhai’ clouds tablet data [EE Times, Nov 8, 2012]
In retrospect: just 4 months ago the forecast was increased from 30 million to 40 million
Global shipments of white-box tablet PCs to reach 40 million units in 2012, say chip designers [DIGITIMES, July 25, 2012]
Forecast global shipments of white-box tablet PCs in 2012 have been upward adjusted from 30 million units originally to 40 million units due to growing demand in emerging markets including China, India, Thailand and Latin America, according to Taiwan-based design houses of ICs used in tablet PCs.
An estimated 10 million white-box tablet PCs were shipped globally in 2011, and shipments increased to 18 million units in the first half of 2012, the sources indicated.
Vendors/makers of white-box tablet PCs currently cluster in Shenzhen and Dongguan, southern China, the sources noted. A large portion originally made netbooks and have stepped into tablet PCs as chips and the Android operating systems have matured, the sources said.
White-box tablet PCs are primarily competitive in price with models launched by own-brand vendors, with retail prices standing at US$59 for 7-inch models and US$149 for 10.1-inch models, the sources indicated.
China market: Domestic chipset vendors ramping up shipments to white-box tablet PC makers [DIGITIMES, July 20, 2012]
China-based chipset solution vendors including Rockchip Electronics and Allwinner Technology have been ramping up their shipments to white-box tablet PC vendors in China, cutting out market share from Taiwan-based VIA Technologies, according to industry sources.
Shipments of white-box tablet PCs in China totaled eight million units in the first half of 2012 and are expected to reach 16-17 million units for the year, compared to 20 million projected previously, the sources indicated.
Rockchip shipped at least 1.6 million tablet chipset solutions in the first half, accounting for 20% of the white-box tablet PC segment. Rockchip’s latest ARM-based dual-core solution, the SoC RK3066, is being built using a 40nm process at Taiwan Semiconductor Manufacturing Company (TSMC), said the sources.
Allwinner has been delivering more of its A10 solutions, which are also manufactured by TSMC utilizing a 55nm process, added the sources.
then came the news that: Demand for white-box tablets keeps growing despite keen competition [DIGITIMES, Oct 15, 2012]
Demand for white-box tablets rolled out by China-based makers remains strong currently despite the launch of US$199 models by Amazon, Barnes & Noble and Google, and the dominance of Apple’s iPads, according to industry sources.
Some white-box makers in Shenzhen are shipping 200,000-300,000 tablets a month, and a number of large-scale operators are even shipping one million units a month, buoyed by their tactics of optimizing hardware specifications, while keeping device prices low, noted the sources.
Most 9.7- or 10.1-inch white-box tablets powered by a dual-core CPU are currently quoted below US$200, while those comparable models with a single-core processor are priced at US$70-120, revealed the sources.
Some 7-inch models built with China-based Allwinner’s A10 solutions can be available for US$50, the sources added.
Additionally, the FOB prices of US$150-250 for 9.7-inch white-box tablets with dual-core CPUs, high resolution displays and 3G modules are also competitive in emerging markets, the sources commented.
Some tablet exhibitors at the ongoing HKEF 2012 (Hong Kong Electronics Fair, Autumn Edition) estimate that China-based white-box makers as a whole are shipping four million tablets a month currently.
Allen Wu, president, ARM China, predicts that shipments of Android-based tablets by China makers are likely to reach 50 million units in 2012 and increase to 100 million units in 2013.
Over 5.0 million Nexus 7s to be shipped in 2012, say Taiwan makers [DIGITIMES Research, Nov 19, 2012]
At the end of the second quarter, Google expected shipments of 2.5 million Nexus 7s in 2012 but since then it has continually placed additional orders in view of booming sales, with the cumulative shipment volume in 2012 will reach 5.0 million units based on orders released, according to Taiwan-based players in the supply chain.
While international vendors usually place orders for shipments to peak in October and November to meet year-end peak demand beginning in late November, Nexus 7 shipments are expected to remain at a high level of 700,000-1,000,000 units in both November and December, the sources pointed out.
After the launch of the 16Gb Nexus 7 for sale at US$199 and a 32GB version at US$249, Google on November 13 launched a 32GB 3G-enabled Nexus 7 for sale at US$299 and Google Play and Google’s partner AT&T have sold out available stock, the sources indicated.
While the iPad mini is thought of as a major competitor for the Nexus 7, Taiwan-based iPad mini supply chain makers indicated that Apply has not adjusted order volumes since the tablet was launched and monthly shipments remain at nearly 4.0 million units currently.
Digitimes Research: Google will become more influential in tablet market [DIGITIMES Research, Nov 2, 2012]
Senior analyst James Wang of Digitimes Research believes that Google’s recently announced Nexus 10, developed in cooperation from Samsung Electronics, and upgraded storage for the Nexus 7, are aimed at starting competition with players such as Apple, Amazon, Barnes & Noble and China-based white-box tablet vendors.
Since Google has prepared a full-range of tablet products, Wang believes the company’s entry-level Nexus tablet, that has not yet been announced, will have the strongest influence on its competitors.
Google’s Nexus 7 shipments performed better than expected, and are forecast to reach 4.3 million units in 2012, accounting for about 20% of non-Apple tablet shipments (excluding white-box models), while the volume in the fourth quarter is also expected to enjoy sequential growth despite the weak global economy, Wang pointed out.
Digitimes Research estimates that Google’s Nexus series tablets will see total shipments of 19 million units in 2013
accounting for 50% of non-Apple tablet shipments. [In a later estimate Wang raised the shiments of other branded Android tablets to 32 millions, see also here in the beginning, so Google’s Nexus marketshare now is only 37% in its own category.]
But note: Nexus 7 not yet allowed to enter China market [DIGITIMES Research, Sept 11, 2012]
While the Nexus 7, the tablet co-developed by Google and Taiwan-based vendor Asustek Computer, has been witnessing booming sales in major markets around the world, it is difficult for the model to be available for sale in the China market because the China government has not yet approved its import, according to industry sources in Taiwan.
The China government’s negative attitude is interpreted as a response to Google’s announcement of withdrawing from the China market in March 2010, the sources pointed out. It is difficult for the Nexus 7 to enter the China market, even through sale of Asustek’s marketing network there, the sources indicated.
Without the Nexus 7 in the market, China-based white-box vendors of tablets are under much less competitive pressure, the sources indicated. This is because the Nexus 7 has the advantage of Google’s and Asustek’s brand image with commensurate product quality and is expected to be strongly competitive with 8GB Android 4.0 tablet models in the 7- to 9-inch range launched by China-based white-box vendors, including Ainol, Onda, Teclast and Cube, at US$149, the sources pointed out. In addition, the Nexus 7 will bring competitive pressure on tablet PC models of equal specifications offered by Samsung Electronics and China-based vendors Lenovo and Hasee Computer in the China market, the sources indicated.
Without the China market, the cumulative global sales volume of Nexus 7 will reach an estimated 3.5 million units at the end of 2012, the sources noted.
Google attitude against modified Android may lead to split in Android, say Taiwan handset makers [DIGITIMES Research, Sept 18, 2012]
Google’s opposition to Taiwan-based vendor Acer’s launch of the A800, a smartphone based on the Alibaba-developed operating system Aliyun, reflects Google’s attempt to check development of modified Android platforms, but if Google cracks down on this, developers of modified Android platforms may be forced to offer own-brand smartphones or tablets and give up on Android, resulting in an increased split in the adoption of Android, according to Taiwan-based handset supply chain makers.
Google explained that Aliyun is incompatible with the Google ecosystem and therefore unable to ensure a consistent user experience among developers, makers and consumers, the sources noted. In response, Alibaba emphasized that Aliyun, while based on open-source Linux as Google is, is not part of the Google ecosystem and therefore is not necessarily compatible with the ecosystem, the sources indicated.
Developers of modified Android platforms such as Amazon and Alibaba are not members of the Open Handset Alliance and are Google’s competitors, they need not care about Google’s attitude, the sources pointed out. However, smartphone vendors need to cooperate with Google to offer Android models and therefore have to be concerned about Google’s attitude against modified Android platforms, the sources indicated.
If Google cracks down by prohibiting smartphone vendors from adopting modified Android platforms, developers of modified Android platforms, such as Amazon, may skip vendors to directly partner with ODMs to offer their own-brand devices, with such platforms to set up their own ecosystems and thereby become more competitive with Android, the sources pointed out. For some China-based smartphone vendors which have adopted many locally developed applications, because losses arising from forgoing Android may be small, they may shift to a modified Android platforms.
Among China-based smartphone vendors, only Huawei Technologies, ZTE, Lenovo, Haier, Oppo and a few others joined the Open Handset Alliance, the sources noted. As China is the largest smartphone market around the world, Google had better pay attention to response from web service operators, smartphone vendors and consumers, the sources pointed out.
Commentary: Is it a blessing for Asustek to have Google backing? [DIGITIMES, Nov 7, 2012]
Asustek Computer has seen its brand image improve in the US and Japan recently thanks to the launch of dual-branded Nexus 7 in cooperation with Google. Asustek is proud of its product design with regard to the Nexus 7, and also aims to capture the top-vendor ranking in the Android tablet segment. But it remains to be seen whether Asustek will be able to continue to expand its brand image based on the charm of the Nexus 7, since Google has announced its Nexus 10 in conjunction with Samsung Electronics.
Google has been backing Asustek in the development of the Nexus 7, offering the Taiwan-based hardware vendor the priority to design-in its latest Android OS and to penetrate into the US tablet market jointly.
Due to aggressive pricing set for the Nexus 7, industry watchers have wondered whether the Google-Asustek cooperation would generate profits for Asustek before the production of the 7-inch tablet reaches economies of scale. But for Asustek, the dual-brand marketing was not aiming at generating profits initially but rather improving its brand image, particularly in North America.
Optimizing Asustek’s design capability and Quanta Computer’s manufacturing muscle, the Google-Asustek team is able to set the price of the Nexus 7 lower. The low-priced tactics is working as sales of the Nexus 7 have been better than expected, while Asustek’s notebook sales in the US are also improving.
Some industry watchers now estimate that total shipments of the Nexus 7 are likely to reach 4-4.2 million units by year-end 2012, while Asustek will also be able to sell more of its own brand notebooks in the US.
But the skepticism about the merits of the Google-Asustek tie-up still remains, since Google has showed its intention to control the development of the Android market, optimizing the production of the 7-inch Nexus 7 at Asustek and the 10-inch model at Samsung. Furthermore, the latest market rumors also indicate that Google may also team up with Lenovo for penetrating into the China market.
Does Google treat Asustek as a brand partner or an OEM supplier? John Lagerling, director of business development for Android, seems to have an answer to the question.
When approached by the New York Times during a recent interview seeking a confirmation of Asustek’s remarks that current shipments of the Nexus 7 have reached as many as one million units a month, Lagerling replied, “We haven’t announced numbers. We typically don’t allow our partners to announce numbers.”
The message clearly indicates that Google treats Asustek as an OEM partner, but not a dual-brand partner.
In the worst-case scenario, Google may tie up with other vendors such as HTC and Lenovo to develop its next-generation Nexus tablets, which will place Asustek under fire from rivals vying for the Android tablet market.
Asustek has estimated its tablet shipments to reach 6.3 million units in 2012, of which the Nexus 7 will account for over four million. In other words, shipments of Asustek’s own brand Transformer and Padfone tablets are limited.
Asustek’s competitive advantage will wane further if it fails to win the design-in priority for the next-generation Nexus tablets.
The emerging new trends
in the premium ecosystem of the Windows devices
Third-generation ultrabooks may be able to achieve 40% of notebook shipments, say players [DIGITIMES, Dec 11, 2012]
As Intel failed to achieve its goal of having ultrabooks account for 40% of total notebook shipments with its Ivy Bridge platform, and the proportion only reached about 10%, sources from notebook players believe the goal may be achievable with the upcoming Haswell platform, which is set to launch at the end of second-quarter, 2013.
The sources pointed out that compared to Ivy Bridge, Haswell’s stronger performance and cheaper price, plus the expectation that Windows 8 should become more standardized by then, should mean ultrabooks have a chance to account for 40% of total notebook shipments by the end of 2013.
Although vendors have released ultra-like notebooks with prices around US$699-899 as alternatives, since these devices lack attractiveness in terms of design and weight, while ultrabook models with specifications similar to the MacBook Air have prices a lot higher than the MacBook Air, most consumers have turned to purchase Apple’s product instead, the sources noted.
Digitimes Research: Surface tablet to mainly devour notebook demand in the short term [DIGITIMES Research, Oct 30, 2012]
Microsoft’s recently launched own-brand Surface tablets have raised the question of whether Surface will devour consumer demand for tablets or notebooks, or maybe even both. In terms of hardware, Surface is capable of satisfying consumer demand for notebooks, but to replace other tablets, it still requires a more complete app software ecosystem, according to Digitimes Research senior analyst James Wang.
Currently, the major difficulty Surface faces in gaining a competitive edge in the tablet market is the lack of a complete app software ecosystem, which means that if Surface can achieve growth in the short term, it will mainly be at the expense of demand for notebook products.
To let Surface to become a tablet killer instead of a notebook killer, Microsoft must expand shipments of Windows RT devices to attract application designers to join and establish an ecosystem. However, due to Android’s existence in the market, most notebook vendors are hesitant about joining the Windows RT market.
Although IBM, Microsoft and Intel were able to defeat Apple previously with an open platform strategy, due to Android’s existence, Microsoft will be unable to compete against Google in terms of business model and will be forced to head to the same business direction as Apple of having a closed platform with integrated software and hardware, making it even more difficult for Microsoft to build a complimentary ecosystem built on the Windows RT platform.
The most popular strategy for platform competition is to offer a free or low-price product or service to attract users and establish an ecosystem to strengthen consumer loyalty, and then seek methods to gain profit. Apple, Google and Amazon’s strategies are all similar – by abandoning profit from some segments including hardware, operating system, software, digital content or advertising, they are able to increase their profits from the remaining segments; however, for Microsoft, since all the above segments belong to different business units, internal struggles and external industry fluctuations will all affect Microsoft’s performance in the future.
Digitimes Research: Windows 8 expected to have minimal impact on touch screen notebooks in 2013 [DIGITIMES Research, Nov 13, 2012]
Shipment growth for touch screens used in notebooks throughout the fourth quarter of 2012 and most of 2013 will at large not be affected by the release of Windows 8, according to Digitimes Research.
Research indicates that consumers are more likely to purchase tablets throughout the time period because of the wide variety of tablet products available, and because of the difference in pricing between tablets and notebooks.
The notebook shipment forecast is expected to drop by 192 million units in 2012 to 189 million units in 2013 as a result, as well as due to a lack of recovery in the global economy.
However, Digitimes Research pointed out that the expected drop in notebook shipments will also be due to notebook makers increasing the mainstream sizes of their products to 14- and 15-inch, which will thus decrease the amount of panels available for producing notebook products.
Despite the shipment drop, the usage rate for touch panels used in notebooks is expected to increase to 10% in 2013, added Digitimes Research.
Digitimes Research: Asustek to compete with Acer for top-3 worldwide notebook vendor spot in 2013 [DIGITIMES Research, Nov 15, 2012]
Weak Global notebook demand is expected to reshuffle the top-10 notebook brand rankings in 2013, with Lenovo expected to successfully take over Hewlett-Packard’s (HP) leading position. Meanwhile, Asustek Computer, which will rank as the fourth-largest brand vendor worldwide in 2012, will compete against Acer to become the third-largest vendor in 2013.
Toshiba, the sixth-largest notebook brand worldwide in 2012 is expected to be surpassed by Apple in 2013.
With top brand vendors starting to lose their edge, the four new stars in the notebook brand market – Lenovo, Asustek, Apple and Samsung – are expected to see their combined market share rise from 40.9% in 2012, to 43.2% in 2013.
As for upstream ODMs, their contributions to global notebook shipments is expected to grow from around 70% in 2011 to 75% in 2013, while electronic manufacturing service (EMS) providers will step out of the design business and turn to focus mainly on manufacturing.
In 2013, Pegatron Technology and Wistron are expected to have the best performance among the top-five makers as the former will benefit from increased orders from Lenovo and Fujitsu, while the later will benefit from its enlarged cooperation with Asustek.
Source: Digitimes Research, November 2012
HP, Lenovo aim to ship 40 million notebooks each in 2013, say Taiwan makers [DIGITIMES, Nov 19, 2012]
Despite a stagnant global notebook market in 2012, Hewlett-Packard (HP) and Lenovo aim to ship 40 million notebooks each in 2013, respectively increasing by 25% and 33.3-37.9% from 2012, according to Taiwan-based supply chain makers.
As there have been no signals to indicate an economic rebound in the US and Europe, and demand for Windows 8 notebooks will not take off in the near future because consumers will take time to get accustomed to the new operating system, HP and Lenovo may be too optimistic about their notebooks sales in 2013, the sources analyzed.
Among other vendors, Samsung Electronics aims to ship 17 million notebooks and 40 million tablets in 2013, hiking from 2012 by 21.4% and 300% respectively, while Toshiba and Acer have set respective goals of shipping 20 million units, growing from 2012 by 25%, and 28 million units which will rise by 7.7%, the sources noted.
Lenovo 3Q12 global PC market share rises to 15.6% [DIGITIMES, Nov 9, 2012]
Lenovo saw its total global sales volume of notebooks, desktops and tablets during the third quarter of 2012 increase by 10.3% on year, with corresponding global market share rising to 15.6%, according to the company’s fiscal second-quarter 2012 (July-September) report released on November 8.
Lenovo posted sales revenues of US$8.7 billion, gross margin of 12.1%, net operating profit of US$206 million, pre-tax profit of US$204 million, and net profit of US$162 million for the third quarter of 2012.
Lenovo reached the largest PC market shares in China, Japan, India, Russia and Germany in the third quarter, and is likely to do so soon in Brazil, the company pointed out.
Lenovo shipped 8.5 million handsets in the third quarter, of which seven million were smartphones, the company indicated.
Notebook vendors headhunt R&D talent from ODM partners [DIGITIMES, Nov 19, 2012]
As notebook brand vendors grow more interested in-house R&D and manufacturing to promote their brand image, sources from the upstream supply chain have seen some notebook vendors starting to headhunt talent from their ODM partners.
Sources from notebook ODMs also pointed out that vendors have changed their outsourcing strategies and will check with their chassis and hinge suppliers for component materials and prices, and have their in-house R&D teams complete industrial design before handing the work to ODMs.
The sources pointed out that the new strategy is expected to expand in the notebook industry in 2013 and should benefit notebook brand vendors in terms of gaining more control over component costs as well as keeping their product designs confidential.
Acer and Hewlett-Packard (HP) have already started adopting the strategy.
Acer recently pointed out that the company will increase its R&D investment by 20% each year for the next three years. The company currently has about 1,000 R&D engineers. Lenovo will also continue strengthening its R&D and manufacturing abilities and is set to achieve an in-house production rate of 20% in 2013. Samsung’s in-house production rate is expected to maintain at 85-90% in 2013.
Notebook ODMs offer extra services to attract tablet orders [DIGITIMES, Nov 19, 2012]
With notebook shipments estimated to only have a single-digit percentage growth on year in 2013, notebook ODMs including Quanta Computer, Compal Electronics and Wistron, are aggressively trying to land tablet orders by offering extra services, according to sources in the upstream supply chain.
In addition to offering preferences over price, product specifications and shipment conditions, Compal and Wistron also offer their exclusive touchscreen solutions from related subsidiaries to attract downstream brand vendors to place orders.
Meanwhile, Quanta is offering services through its cloud computing expertise and the company reportedly has assisted brand vendors such as Amazon, to build data centers and successfully acquired their tablet orders.
In 2013, Compal estimates it will ship 6-8 million tablets, up from two million units in 2012, while Wistron expects its tablet shipments to reach six million units, up from 2.5 million units in 2012, and Quanta with shipments of 14-15 million units, up from 10 million units in 2012.
11.6-inch becomes niche-market size for notebooks, say Taiwan makers [DIGITIMES, Nov 15, 2012]
As global sales of netbooks have been decreasing due to competition from tablets, 11.6-inch has become niche-market size, according to Taiwan-based notebook supply chain makers.
Among notebook screen sizes, 11.6- and 13.3-inch have accounted for a relatively small proportion of total shipments, the sources indicated. However, as Samsung Electronics and Acer have launched inexpensive 11.6-inch Chromebooks and Asustek Computer has launched a 11.6-inch VivoBook touch-control notebook, an increasing number of 11.6-inch notebooks are available for sale, the sources commented.
Despite shrinking sales, demand for netbooks still exists, especially in emerging markets, the sources indicated. As most netbooks are have screen sizes of 10-inch, and 10.1-inch is so far the upper limit for typical tablet screen sizes, 11.6-inch notebooks are likely to see considerable demand in the global market, the sources pointed out.
Windows 8 may not start a PC replacement trend for enterprises until after 2014 [DIGITIMES, Nov 19, 2012]
Demand for Microsoft’s Windows 8 is unlikely to start emerging until 2013 for the consumer market, while for the enterprise market, demand is expected to come at an even later time and may not appear until 2014, according to sources from the PC industry.
Although Microsoft is trying to present its latest innovations in Windows 8 to response to consumers’ fluctuating demand, it turns out that consumers need more time to understand the new advantages that the product provides and relatively delay acceptance for the new operating system.
Although notebook brand vendors have a high expectation for the year-end holidays this year, their order placement to the upstream supply chain still shows they are cautious about the shipment performance during the traditional peak season.
To prompt enterprises to adopt Windows 8, Microsoft has recently noted that the company will stop providing support to Windows XP in April, 2014 with most of the enterprises expected to turn to Windows 7 and some to Windows 8 as stability and necessity are the major considerations for enterprises to make a purchase.
Component makers concerned Windows 8 demand may not emerge until 1Q13 [DIGITIMES, Nov 19, 2012]
Some upstream component makers have recently started to be concerned that the PC replacement trend expected to be brought on by Windows 8 may not occur in the fourth quarter of 2012 as originally estimated, but will take off in the first quarter of 2013, according to sources from upstream supply chain.
Since an operating system usually needs to have serious debugging after launch, the sources believe consumers may hold back their new PC purchases until some time later and their actions would impact demand for Windows 8-based systems in the fourth quarter.
However, the component makers are still placing high hopes on the new operating system to bring growth.
Notebook ODMs facing uncertainty as brand vendors take over R&D [DIGITIMES, Nov 7, 2012]
Acer plans to release a new notebook that is designed and developed in-house, creating an alert among notebook ODMs that brand vendors are trying to become more involved in R&D and the component purchasing of their notebook products which could impact ODMs’ profitability, according to sources from the upstream supply chain.
The sources pointed out that Acer’s in-house developed notebook features Windows 8 and a touchscreen display and will be showcased at Consumer Electronics Show (CES) in 2013, at the earliest. Related R&D has already been completed and Acer is currently seeking a partner to conduct assembly.
So far, the device is the only in-house developed project that Acer plans to release in the short term and shipments will be limited, indicating that the project is a test for Acer to try out its R&D capabilities, the sources noted.
With Lenovo also planning to expand its in-house production by establishing its own plants, if Acer also decides to conduct R&D in house, it could seriously impact the values of ODMs for their clients.
However, some ODMs pointed out that they are not concerned about the moves and believe the possibility of the new business model emerging is low since the brand vendors have already outsourced their R&D to ODMs for a long time, and rebooting their R&D capabilities will require a long period of learning.
Since Wintel is no longer dominating the PC market, brand vendors will also need to spend R&D resources on ARM and Android, which would seriously increase their burden.
At its Windows 8 product launch conference, Acer also revealed that the company will focus more on product R&D and will increase its R&D resources by at least 20% every year.
Commentary: Notebook ODMs face uncertainties in tablet market [DIGITIMES, Nov 7, 2012]
The rise of tablets and smartphones, plus the economic downturn in the US and Europe, have been causing PC brands such as HP, Dell and Acer to report unsatisfactory sales results. This has been affecting the performance of notebook ODM firms such as Quanta Computer, Compal Electronics and Wistron.
ODM firms have been hoping that Windows 8 can stimulate a new wave of demand as consumers switch to new PC models with the Microsoft operating system in 2013. Also, ODM firms have been aggressively fighting over tablet orders as demand in 2013 is likely to reach 200 million units.
Quanta Computers targets revenues from non-notebook business to increase to 30% of total revenues in 2012. Compal is looking to ship 6-8 million tablets in 2013, while Wistron aims to achieve its tablet shipment target of 6 million units in 2013.
Compal’s and Wistron’s targets of shipping 6-8 million tablets to a market whose total shipments are expected to reach 200 million in 2013 show how difficult it has been for notebook ODMs to obtain tablet orders.
One of the reasons is that most of the market has been dominated by Apple while other tablet vendors such as Amazon and Google have yet to see strong sales. Manufacturing orders have been over-concentrated, causing tough competition among firms. As a result, both Quanta and Compal have trimmed their tablet divisions.
The ODM firms have been facing uncertainties regarding tablet orders, such as multiple platforms, unstable orders, and different device sizes.
Apple’s iOS and Google’s Android platforms continue to dominate the market while Microsoft’s Windows comes in third. Samsung is planning to develop its own platform and HP’s webOS may also become one of the major players. The multiple platforms mean firms need to bet on the right one to maintain orders.
As for orders, clients may place large volumes expecting strong sales in the end market. But when sales turn out worse than expected, inventory will build up and orders will be cut. That is the case with Amazon’s Kindle Fire earlier this year. For the tablet segment, manufacturing partners are under much higher pressure from inventory management.
Another uncertainty comes from the size of the devices. There are currently products that are 7-, 8.9-, 9.7-, 10.1-, and 11.6-inch. A small difference in size can mean significant differences in revenues.
In addition, profits have been unstable. Some tablet brands want to increase market share by resorting to low price and sacrificing their gross margin. This directly affects the profit margin of ODM firms.
Taiwan component makers worried about Lenovo plans to hike in-house notebook production [DIGITIMES, Oct 8, 2012]
As China-based vendor Lenovo plans to increase in-house production of own-brand notebooks and will therefore procure components instead of letting ODMs release orders, as a result Taiwan-based component makers have felt pressure of losing orders, according to Taiwan-based notebook supply chain makers.
In-house production currently accounts for 20-30% of Lenovo’s shipments of notebooks, desktops and other types of PCs, the sources indicated.
Lenovo will have LCFC (Hofei) Electronics Technology, its joint venture with Taiwan-based ODM Compal Electronics in Hofei, northern China, start volume production at the end of 2012 or the beginning of 2013, to increase in-house production of notebooks, the sources pointed out. In addition, Lenovo is setting up PC production lines in the US and will do so in Brazil in 2013, with volume production to begin in 2013, the sources noted.
In addition to increasing in-house production, Lenovo may set up a supply chain consisting of China-based component makers, the sources pointed out.
Compal/Lenovo joint venture expected to output 3-5 million notebooks in 2013 [DIGITIMES, Sept 4, 2012]
The notebook manufacturing joint venture of Compal Electronics and Lenovo in Hefei, China was reported by local media to enjoy more than 10 million units of notebook production volume in 2013, but sources from notebook players estimate that the plants may only be able to output around 3-5 million units next year as their yield rates still need improvement, while the related process of shifting orders from other ODMs to the joint venture may also affect the total output volume from the joint venture.
The sources pointed out that Compal and Lenovo’s cooperation will create benefits for both firms as Lenovo will be able to directly control the quality of its products, understand the ODM manufacturing process and reduce its cost, while Compal will be able to tighten its relationship with Lenovo and benefit from Lenovo’s orders.
The joint venture will start pilot production in October and start mass production in the fourth quarter of 2012 with monthly capacity at around 300,000 units. Initially, the plants will focus on notebook production, but will later add production for all-in-one PC. The local media has reported that the plants will manufacture about one million notebooks in 2012, 13 million units in 2013 and 20 million units in 2014.
Currently, Lenovo has 51% stakes in the joint venture with Compal holding the remaining 49% and some market watchers are concerned that Lenovo may shift all its Compal orders to the joint venture, affecting Compal’s own orders and profitability since Compal will need to share its profit with Lenovo for any order received by the joint venture.
Commenting on the concerns, Compal president Ray Chen has noted that the two firms have already signed a contract to avoid from this type of situation, but he refused to reveal further details of the contract.
In 2013, sources from the supply chain pointed out that Lenovo will still maintain about 30% of notebook shipments being in-house manufactured and will outsource the remaining 70% with the orders to the joint venture considered as outsourcing.
Compal Electronics lays off tablet R&D, testing personnel [DIGITIMES, Oct 23, 2012]
Taiwan-based notebook and tablet ODM Compal Electronics has laid off more than 100 employees responsible for tablet R&D and testing.
Compal confirmed the layoffs, explaining that the company recruited staff members to meet growing orders for tablets in 2011 but orders received have been far short of expectations and therefore it is necessary to adjust manpower. Although Compal stressed that only one wave of layoffs is planned, internal sources indicated that there may be more.
Compal’s staff cuts signal that tablet vendors have encountered difficulties and notebook supply chains are under pressure, industry sources pointed out. For tablet vendors, the iPad has dominated the high-end segment while competition in among entry-level models, which includes the Amazon Kindle Fire series and Google Nexus 7, is already intensive, the sources analyzed. In addition, tablet vendors originally rested their hopes on Windows 8 models, but Microsoft’s launch of the Windows RT Surface at US$499, and Apple’s planned launch of the iPad mini will cut into their competitive advantages, the sources said.
Compal’s tablet clients are mainly Acer and Lenovo, the sources indicated.
In September 2011, Quanta Computer laid off over 1,000 production line workers due to a large decrease in orders for tablets from RIM, and in October 2011 Inventec laid off 432 employees because Hewlett-Packard reduced its tablet orders.
Lenovo to launch a table-shaped all-in-one PC [DIGITIMES, Nov 5, 2012]
Lenovo plans to launch a Windows 8-based all-in-one PC that features
asimilar industrial design as Microsoft’s Surface[on June 18, 2012, a Microsoft tablet of the same name was unveiled, the original Microsoft Surface was rebranded as Microsoft PixelSense, see the About Microsoft PixelSense [Microsoft PixelSense press page, June 18, 2012]], a table-shaped PC. The machine features four legs and when the display is laid flat, it becomes like a table and can be used by multiple users simultaneously, according to sources from the upstream supply chain.
The all-in-one PC features a 27-inch display with initial shipments of 20,000 units.
In addition to Lenovo, Acer, Asustek Computer and Hewlett-Packard (HP) all plan to launch new all-in-one PCs with some models will appear as soon as the end of 2012.
At Computex 2012, Asustek chairman Jonney Shih demonstrated an all-in-one PC product under its Transformer series and the all-in-one PC can be detached and become an 18.4-inch tablet, supporting both Windows 8 and Android; however, the product, so far, still has not yet been mass produced.
Meanwhile, Acer has also launched two Windows 8-based all-in-one PCs with special designed hinge and Lenovo also displayed its IdeaCentre A720 with a function to lay out flat.
In 2012, all-in-one PC shipments are expected to reach 16.4 million units, up 20% from 13.7 million units in 2011, according to figures from IHS iSuppli, while IDC also forecast that the all-in-one PC shipments will reach 17 million units in 2013.
FIH reportedly lands handset orders from Microsoft and Amazon [DIGITIMES, Nov 26, 2012]
Foxconn International Holding (FIH) has reportedly landed handset orders from Microsoft and Amazon and is set to launch the devices in mid-2013, according to sources from the upstream supply chain. However, both the parent company Foxconn Electronics (Hon Hai Precision Industry) and FIH declined to comment about clients or orders.
Foxconn is the major manufacturer of Apple’s iPhone products, while its subsidiary FIH has clients including Nokia, Sony, Lenovo, Huawei and ZTE.
Microsoft’s own-brand handset will adopt its Windows Phone 8 operating system, the sources noted.
The sources pointed out that Microsoft and Amazon’s own-brand handsets will only have a limited shipment volume initially and may become a new business model for the manufacturers in the future.
In addition to provide manufacturing services to first-tier brand vendors, FIH also supplies white-box handsets to regional vendors in China, Europe and the US.
Taiwan IC design houses to benefit from Samsung aggressive product roadmaps in 2013 [DIGITIMES, Dec 7, 2012]
… the Korea-based vendor is reportedly set to adopt a more aggressive ‘shotgun’ strategy wherein many models will be created in the smartphone, tablet, notebook, LCD TV and DSC sectors that cover a wide range of market segments in 2013, according to industry sources.
In the smartphone sector, Samsung will move into the Windows Phone platform and roll out models targeting the entry-level, mid-range and high-end segments simultaneously, in an attempt to duplicate its success in the Android space, the sources revealed.
Digitimes Research: Android phones to account for 70% of global smartphone market in 2013 [DIGITIMES Research, Dec 6, 2012]
Shipments of Windows Phones, including 7.x and 8.x models, will grow 150% on year to 52.5 million units in 2013 for a 6.1% share
Worldwide Mobile Phone Growth Expected to Drop to 1.4% in 2012 Despite Continued Growth Of Smartphones, According to IDC [IDC press release, Nov 1, 2012]
For the year, smartphone shipments are forecast to grow 45.1% year over year to 717.5 million units.
Windows Phone will battle with BlackBerry for the number three spot in 2013, but will gain further clarity in the years that follow. Windows Phone will build on the progress it made in 2012, with Nokia establishing its presence and HTC solidly jumping back into the race. Moreover, contributions by Samsung, ZTE, and Huawei will help grow its footprint. With more vendors releasing more devices aimed at multiple segments, sales associates will be better positioned to tell a compelling Windows Phone story and to explain the value of Windows Phone’s differentiated experience compared to market leaders Android and iOS.
Top Smartphone Operating Systems, Forecast Market Share and CAGR, 2012–2016
2012 Market Share
2016 Market Share
CAGR 2012 – 2016 (%)
Source: IDC Worldwide Mobile Phone Tracker, December 3, 2012
The previous forecasts taken together mean:
– IDC: 18.7 million Window Phones in 2012 (calculated as 2.6% of 717.5 million units)
– IDC: 161 million Window Phones in 2016 (with 71.3% CAGR of that 18.7 million)
– DIGITIMES Research + IDC: 46.6 million Window Phones in 2013 (150% growth predidicted for WP in 2013 by DIGITIMES Research over 18.7 million given by IDC for 2012)
which makes DIGITIMES Research’s forecast of 52.5 million Window Phones in 2013 quite feasible for me, at least for three reasons:
Samsung aggressive move into the Windows Phone platform as noted above by DIGITIMES.
The kind of breakthrough for the WP8 Lumias, and WP8 in general, especially against iPhone 5, as described by my recent blog entries ragarding:
High-end smartphones state-of-the-art:
– Lumia 920 vs. iPhone 5 (and vs. Android, Galaxy S3, HTC One X+) [Dec 7, 2012]
– Windows Phone 8 vs. Android 4.1 and 4.2 [Dec 6, 2012]
The additional, not yet recognized end-user and business partner advantages as described in all detail in my:
– Lead post: Marko Ahtisaari from Nokia and Steven Guggenheimer from Microsoft on the Internet of Things day of LeWeb Paris’12 [Nov 6, 2012]
Uncertain Windows 8 future may relatively affect Windows Phone 8 [DIGITIMES, Nov 5, 2012]
Although Microsoft has been aggressive promoting its new Windows 8 operating system (OS), a weak global economy has the notebook supply chain remaining conservative about the OS’ contribution to their performance in the fourth quarter and the OS’ uncertain future may relatively affect the software giant’s plan for its Windows Phone 8 platform, according to sources from the upstream supply chain.
Microsoft’s aggressive promotion of Windows 8 touchscreen functions is meant to blur the boundaries between smartphone, tablet, notebook and desktop through a similar usage experience, while expanding its advantages in the IT industry through a unified OS platform structure and gain some benefits from the smartphone market, where the company is currently still behind.
Microsoft originally hoped to strengthen its Windows Phone 8 penetration through a PC replacement trend brought by Windows 8, but since the OS may not trigger a replacement trend as expected, while Microsoft’s smartphone partners such as High Tech Computer (HTC) and Nokia are also conservative about their Windows Phone 8-based product shipments, the sources believe Microsoft’s plans for its operating systems will be further delayed.
Microsoft’s launch of own-brand smartphones in 2013?
It is based on rumors that Microsoft Is Reportedly Testing Its Own Smartphone [TechCrunch, Nov 2, 2012]
First it built the Surface, and now Microsoft is said to be working on another new hardware product, this time a smartphone. That’s according to a new report from the Wall Street Journal, which says Microsoft is currently working with Asian component suppliers on its own handset design, though it isn’t yet clear whether or not the device will ever go into mass production.
Details about what a Microsoft smartphone would look like are scarce, but the report does say that the version being currently tested has a screen between four and five inches, which is in keeping with recent designs from Apple and Android handset OEMs. It’s also probably pretty reasonable to assume that any device Microsoft puts out now will have more in common with the flagship phones from its hardware partners for Windows Phone 8, which include Nokia and HTC, than with its previous Kin smartphones. The teen-focused Kin carried Microsoft’s branding, but was made by Sharp, and lasted only 48 days on the market.
Microsoft had made a more dedicated approach to creating its own hardware with the Surface, albeit to mixed reviews. And as the WSJ reports, it’s also been more aggressive about enforcing hardware standards with its partners in recent years, both in terms of the look and makeup of Windows-certified PCs and in minimum specs for partner mobile handsets. That Microsoft could be considering an approach like Apple’s, wherein it would sell both hardware and software and control all aspects of the ecosystem, definitely seems more plausible than it has in the past.
Also, rumors have been building that Microsoft is working on a smartphone since back in June, thanks to Nomura analyst Rick Sherlund, who said that Microsoft was already working with a “contract manufacturer” to create their own Windows Phone 8 mobile device. Then at the beginning of October, Boy Genius Report received a tip that Microsoft was indeed working on its own smartphone, that would sell alongside and compete with partner OEM devices like the HTC 8X and Nokia Lumia 920. The company has shown it’s willing to go there with the Surface, and Nokia CEO Stephen Elop even said on a conference call two weeks ago that a Microsoft-made device would be a boost to the entire Windows Phone 8 device sales ecosystem.
Even if it didn’t become a top seller in and of itself, a Microsoft-branded smartphone could offer Windows Phone what the Nexus line provides Android: a place to show off the latest and greatest software, experiment and build hype around the platform. I think the biggest risk would be in potentially alienating hardware partners, but so far the Surface doesn’t seem to have dampened the enthusiasm of Windows PC OEMs all that much, and Elop has already declared his support. If nothing else, a Microsoft-made Windows Phone 8 smartphone would be interesting, and generating interest is maybe the key ingredient to Microsoft’s future mobile success.
Why Microsoft believes latest-gen Windows Phones are ‘killer hardware’ [TechRadar, Nov 18, 2012]
INTERVIEW We talk to the head of Windows Phone: Terry Myerson
For the last year, Nokia has been the poster child for Windows Phone but recently HTC and Samsung have seemed more in favour.
We asked corporate vice president of the Windows Phone Division Terry Myerson to explain how Microsoft juggles partnerships with rival phone makers and how much influence manufacturers have on the design of Windows Phone.
“We work in different ways with each of them on the engineering and on the marketing,” Myerson told TechRadar.
Nokia gets priority when it comes to development because of the commitment it’s made to Windows Phone; “Nokia is exclusive to Windows Phone and we definitely, on the engineering side, prioritise platform work to support their differentiation coming through.”
Despite the restrictions it puts on handset specs, Microsoft doesn’t want to see the same handset from every phone maker. “Our goal is that Windows Phone is a platform that our partner differentiation can shine through on.
We do spend time planning with HTC and Samsung, sitting down with them and collaborating on what a product is where their differentiation elegantly coexists with Windows Phone and what we bring. There are different cultures to each of these companies and they all have their own plans for how they want to bring their technologies to market.”
“The best devices”
He’s predictably enthusiastic about the handsets that come out of the collaboration with all three partners. “I think the result is the most fantastic killer hardware we’ve ever had, not only for the windows ecosystem – I think these devices are better than any device – well, I they’re the best devices. They’re colourful, they’re beautiful, they’re thin, amazing cameras…”
Some of what you see in Windows Phone 8 handsets is Microsoft’s idea, some comes from the OEMs. “In the case of wireless charging, that was definitely Nokia’s initiative to say they wanted that; they had technologies inside their labs, they took the initiative to put forward a number of engineering designs. There were definitely platform modifications we made to support their innovation but Nokia led on that. All the credit goes to them.”
“The Wallet feature is a place where the Windows Phone team thought about how to use NFC. Roaming content though SkyDrive, encryption; these are all features coming from Microsoft. But the wide angle camera that HTC did with Skype in mind, Nokia’s wireless charging – those are innovations coming from our hardware partners.”
Although app developers get far more access to the platform in Windows Phone 8, Microsoft is still keeping some control and treading a fine line between the free for all of Android that Google is increasingly trying to rein in and the central control of the Apple ecosystem.
“We like to think of it as the structured ecosystem that allows the differentiation of partners to shine though on our platform, at the same time providing consumers the confidence that we will protect their privacy, keep malware off the platform, provide a consistently familiar user experience, and providing developers confidence they can write apps once and target our platforms. So there is more structure and structure at times can feel constraining but also there are benefits to it. It’s helpful that everyone drives on the same side of the road, for example…”
Why was the SDK so hard to get?
Myerson is unapologetic about not making the Windows Phone 8 SDK widely available before the launch (when most developers didn’t have phones to work with) and concentrating instead of key developers to get big-name apps; 46 of the top-selling 50 apps from other phones will be on Windows Phone 8 (and yes, he knows who the missing four are and is working on changing their minds).
The sheer number of apps in the Store is far from the most important thing. “It’s a balance; definitely there is magic that occurs in that long tail of apps, [you get some] delightful things… but it is also true that working with these incredibly popular mobile apps is important as well.”
Windows Phone 8 is the future and it’s getting all the marketing love at the moment, but Windows Phone 7 is far from dead. Myerson assured us. “We’re going to have more to say about 7.8 in the coming weeks,” he promised.
“I would expect both platforms to exist for quite some time, from a global point of view. Windows Phone 7.8 devices will span much lower price points than Windows Phone 8 devices, initially, and given the application compatibility across the platforms, it makes the ecosystem stronger to have more device and more price points. We value every 7 and 7.8 customer we have; we’ll continue to work for them as well but it is true that Windows Phone 8 is our future platform.”
Of course that only matters if Microsoft can finally start selling Windows Phone devices in significant numbers. Just as Steve Ballmer promised you wouldn’t be able to escape Windows 8 ads, Myerson promises what sounds like an advertising blitz, focussing on Windows Phone rather than on the handset makers.
“This holiday it’s very important to us to get out there and tell the Windows Phone story: how we do have this amazingly unique point of view, the smartphone that can be so personal and reflect your interests and the people in your life. Telling that in the most pure sense without confusing them which brands we’re talking about is important. We need consumers to understand and love Windows Phone.”
More advertising money
Certainly Microsoft has promised to advertise Windows Phone better before, without much to show for it, and Myerson seems happy to admit it.
“We weren’t out there with same experience as Windows, even we though shared the same brand; we didn’t have all the right teamwork in place with our partners on the go to market, and we were not advertising the product. We were not out there telling the story to consumers – and that changes now. We will start telling our story. We are going to go out there and advertise the product and tell people.”
What’s different now? In a word, Windows 8 – but also more operator support. “It’s a special time. We have a great product that expresses this unique differentiated point of view, that we are the most personal smartphone, we’ve got killer hardware from partners and we have a great partnership with the mobile operators.
“The fact that they’ve ranged so many phones at such great price points is fantastic. And of course having Windows out there at the same time is exciting; making the experience familiar to users and being the best phone for Windows; if you’re a Windows user, this is the phone for you.”
Entrepreneurial global brand building by the founder of the Chinese aigo [爱国者] company: a desparate attempt to avoid the death march of ruthless competition at home
What happens when you were immensely successful in the pre-iPhone/Android and pre-iPad era of digital products and you were not able to recognize the fundamental change which was coming? What happens when in addition to that your playing ground for the initial success was in mainland China but the most ruthless competitors of Android and iPad era were also from China? What happens when those ruthless competitors are playing a game of pure selection by survival now, and in addition on a battlefield filled by not less than hundreds of little known brands? Each struggling to survive on meager margins.
Welcome to the story of Feng Jun and to his recipe for survival by keeping as wide as only possible product range at home, and meantime hastily building a highest quality China brand in key countries globally in an alliance with top entreprenuers in other Chinese industries.
Remark: for those who want first to understand the enormous and quite innovative product range of aigo I would first recommend to make a product tour of its Chinese site (or take at least a quick PDF-based look at Aigopad, the future focus of the company):
Wonderful recommendation: [in the footer part of the homepage]
the smart pen MP6 Moonlight digital photo frame
digital camera [cat 69-1] digital camera [cat 142-1]
mobile storage king voice recorder Aigopad aigoU disk
somersault cloud phone observation king
Otherwise start from the story as it follows below and you will come to the product range in the end:
Feng Jun – Young Global Leaders [World Economic Forum, Jan 14, 2011]
Chairman, President and Chief Executive Officer
Aigo [爱国者] Digital Technology
Feng Jun is Chairman, President and Chief Executive Officer of Beijing Aigo Digital Technology, a leading Chinese consumer electronics company. Aigo’s merchandise includes tablets, digital cameras, MP3 players, portable storage solutions, monitors and other digital products. Feng started Aigo in 1993 with two employees and built it into the international brand that it is today. He is a Member of the Political Consultative Conference of Haidian District, Vice-Chairman of Beijing Electronics Chamber and a Member of the Beijing Industrial and Commercial Executive Committee. In 2005, Feng was selected to be a Member of the 10th session of the All-China Federation of Youth. In 2003, he was honoured with the Outstanding Award of the 6th China Youth Technological Innovation and in the prior year was selected as one of the Top 10 Chinese Technological New Talents. Feng has a degree in Civil Engineering from Tsinghua University , an Executive MBA from Peking University’s Guanghua School of Management  and a Doctorate in Psychology from Beijing Normal University.
China’s Aigo to move boldly, compete with high-end global brands [Xinhua, Aug 8, 2010]
China’s digital giant aigo revealed its ambition to break into global high-end markets, with camera shops to be set up in the world’s most renowned luxury districts.
“Our grand plan is to open chain stores, featuring Chinese-styled cameras, on the Champs Elysees, New York’s Fifth Avenue, and other luxury centers within three years,” announced Feng Jun, president of aigo, during the ongoing fourth China Brand Festival held in Beijing.
“We hope to be neighbors with Louis Vuitton,” added Feng.
As a Chinese high-tech corporation most specialized in mobile storage devices, aigo has vowed to knock open the high-end market with its delicately-designed cameras with unique Chinese styles.
The Ge-Kiln digital cameras, released in June by aigo, feature the crackling surface resembling Ge Kiln porcelain made in the Song Dynasty (960-1279 A.D.).
“Every camera of this type has a unique pattern, representing the distinct identity of its owner,” said Feng.
“China’s digital brands are used to manufacturing cheap products, but we aim to make artworks out of our technology,” said Feng.
His advocacy of the ultimate consumer values from rigid and water-proof camera to “aigo Cloud” 8 months earlier and still twice as more powerful than Apple’s iCloud, on CES 2012 [milagromac YouTube channel, Jan 11, 2012]
Truly, madly, deeply successful [China Daily, Sept 28, 2011]
It’s clear aigo Digital Technology Co Ltd president Feng Jun has been insanely successful in the domestic electronics market.
But people thought he really was crazy when he became a vendor at Zhongguancun electronics market after graduating with an architecture degree from Tsinghua, one of the country’s most prestigious universities. Peddling simply wasn’t something a graduate did then.
“I am a madman,” he says. “Everybody agrees. My idea was I could generate more value in Zhongguancun than in an office.”
In the 1990s, the electronics market was a far cry from the “Silicon Valley of China” it’s celebrated as today.
“The only thing that made it different from a farmers’ market was that I brought computer cases and keyboards, rather than fruits and vegetables, on my tricycle,” Feng says.
He spent all his start-up money – 200 yuan ($31) he borrowed from his mother – to buy the bike.
Customer confidence was an issue Feng tackled by selling his keyboards for a 5 yuan profit, while others took 50 yuan.
“The other vendors thought it was strange to sell the keyboards for so little,” he recalls.
“But I only needed a tricycle for deliveries and was happy with 5 yuan.”
This is how he earned the nickname Feng Wukuai. (Wukuai means 5 yuan in Mandarin.)
He devised product demonstrations in which he would sprinkle water over the keyboards and bash them on the ground. When people saw how robust they were, they rushed to buy them.
“I could sell 600 a day,” he says.
In early September, the 42-year-old entrepreneur unveiled the aigo Cloud service, enabling users to access personal data from any digital cloud device, including mobile phones, computers and tablets. The service operates on the iOS, Android and Windows systems.
It’s China’s answer to Apple Inc’s iCloud service, which was introduced by former CEO Steve Jobs three months ago and will be available soon.
“Jobs is a real master, and I respect him very much,” says Feng, who dresses in Sun Yat-sen uniforms. “I’m proud we launched the service before Apple.”
Some netizens are skeptical of the service’s quality and mock Feng on Sina Weibo’s micro blog, the Chinese version of Twitter.
“I understand their suspicion that we’re not competent,” Feng says.
“But it’s time Chinese became self-confident. Time will tell.”
Feng created aigo in 1997 to brand the U discs, mp3 players, digital photo frames and mobile phones his Huaqi Information Digital Techonology Co Ltd produced, and changed the company’s name to aigo in 2010.
“The reason I succeeded so quickly is I put my heart and soul into research and development, ” he says.
He recalls making the risky move to introduce aigo’s digital camera in 2005. The decision was made after fierce debate, because China’s market was dominated by Japanese brands.
“The Japanese brands slashed their prices the instant our camera went on sale to drive me out of the market,” he says.
“But I was doing the right thing. So, why would I quit?”
Camera sales are stable but aigo is still losing money because of high R&D costs. Feng says he lost 3 million yuan last month.
“But I’m happy I provide cheaper cameras for Chinese,” he says.
“Other aigo products fill the profit gap.”
Feng posted on his Weibo in September 2010 that he would donate all of his money to charity before his death.
“My son said his classmate asked him why he studied so hard if he was going to inherit his father’s wealth,” he recalls.
“I was shocked and worried. As long as my son is capable, he doesn’t need my money.”
Although Zhongguancun is where his legacy began, he says he has no strong opinion about the news the government plans to shut down half the market’s shops by yearend.
“Zhongguancun’s competition is like the Olympic Games’,” he says.
“Quality counts. Winners and losers are both heroes. But cheating is never allowed. It’s survival of the fittest.”
Where is aigo going now? He is speaking about his 6 months old “aigo Etrepreneurs Alliance” initiative at the 8th CHINICT [TheCHINICT YouTube channel, June 28, 2012]
aigo Entrepreneurs Alliance Premiere [aigo news, Feb 28, 2012]
aigo entrepreneurs alliance premiere was held on Feb 25 with the topic of ‘good timing, geographical convenience and good human relations- aigo way to success’. Hundreds of entrepreneurs discussed that how they could unify each industry as one with Olympic mode and reach the top of the world.
The “aigo Entrepreneurs Alliance” (AEA) microsite of aigo.com (in Chinese)
Why AEA (Aigo Entrepreneurs Alliance) invested in Flanders [InvestInFlanders YouTube channel, July 9, 2012]
Aigo Entrepreneurs Alliance Names Belgium its Preferred Investment Destination in Europe [Belgium in China, Feb 27, 2012]
Press Conference February 24th, Embassy of Belgium, Press release
A vote among participants of Aigo Entrepreneurs Alliance’s business trip through Europe last December lauded Belgium as their preferred investment destination. This news was made public on Friday February 24th by Belgian Minister of State Armand De Decker and Mr. Feng Jun, founder of the Aigo Entrepreneurs Alliance and Chairman of Aigo Digital Technology Co. Ltd, at a joint press conference hosted at the Belgian Embassy.
Strategically positioned at the heart of Europe, Belgium is the ideal logistics hub for those who envisage outward expansion, so experienced the Chinese delegation. Home to the EU and NATO, Belgium’s location provides both access to European and international decision makers, as well as a highly skilled, productive and multi-lingual labour force. Other reasons why investors opted for Belgium are the affordable real estate prices, the quality of living standard and the advantageous tax regime.
The openness of Belgium’s economy, its excellent infrastructure and the creativity of its people are key elements which convinced Chinese companies such as Geely, Huawei, COSCO, the HNA group and ZTE to invest in Belgium. Bank of China and the Industrial and Commercial Bank of China (ICBC) both set up a branch in Brussels to act as a link between Chinese and Belgian companies.
“I’m thrilled that the Aigo Entrepreneurs Alliance discovered our assets. The companies coming to Belgium will be able to count on the full support of both federal and regional authorities and will enjoy the warm hospitality of the Belgian people”, said Minister of State Armand De Decker on Friday.
Mr. Feng Jun, founder of the Aigo Entrepreneurs Alliance and chairman of Aigo Digital Technology, said that Belgium – with its geographical location, the second largest harbor of Europe and open economy – would make for the ideal Chinese investment destination. He further expressed hope and belief that “Chinese and Belgian cooperation in investment will build a bridge, one that will not only benefit both sides but the whole of Europe and the world”.
Olympic ideal helps companies go global [China Daily, Sept 12, 2012], only excerpts:
Host: Ok, sure. Here comes the first question. As we know, together with about 20 Chinese entrepreneurs, you established Aigo Entrepreneurs Alliances last year. How is it doing now? And I heard that you guys did some field research on the overseas market. What did you find out? Any ideas about how to tap into the global market?
Feng: The Aigo Entrepreneurs Alliances is an organization to help Chinese brands go global. There is nothing new about overseas research because we have done this a lot of times. What does count is some of us have established offices abroad. We began with Belgium, Britain, and Denmark, three amicable European countries. They welcome us a lot. So we will help Chinese enterprises get a foothold there step by step.
From Sept 13 to 20, a delegation of Chinese entrepreneurs will visit Thailand, Indonesia, Singapore, and Malaysia, four ASEAN member countries, also very amicable. We will vote, after inspecting the local market, for two countries most suitable for setting up offices. The other two countries will therefore be scratched out. But they are actually winners. They stood out from all ten ASEAN member countries in the first place. They won already.
Host: I’m interested in how the organization, as the facilitator for Chinese enterprises to expand overseas, is received by the governments and people there.
Feng: They like us there because we are friendly. They like to deal with friendly people from China. In the past, Chinese went there mostly as tourists, shopping only, but rarely as entrepreneurs, except for some private business owners who landed there illegally. Those businesses couldn’t represent Chinese brands. Most Chinese brands have yet to go global. Now we get to unite these great domestic brands to expand overseas. It is beneficial for those countries because we create jobs and pay taxes. It is in their stakes to welcome Chinese enterprises.
The way we do it has been learned from the Olympic Games. We help Chinese brands to tap into the global market together, with “zero tolerance” for anything illegal, just like the Olympic Games do not tolerate illegal behavior like doping or any other things harmful to human beings. We do that too. We will not tolerate anything against laws or ethics so that we are able to improve the global image of Chinese brands and win more supporters and friends out there. With this support, and with our diligence and intelligence, we can create more values for the world.
Not only can we generate revenue for those countries, but we provide more great products and services for their neighboring countries. In this way, we can bring real profits for those countries.
Host:Speaking of “zero tolerance”, how many enterprises have offered to join the organization so far and by what standards do you pick them?
Feng: So far the organization has absorbed nearly 100 enterprises, including Gree Electric Appliances Inc and Huiyuan Juice Group Ltd, from various industries. Many enterprises which offered to join us are front runners in their industries. But our rule is to select at most one enterprise from each industry. There are more than 3,000 industries out there. We have to give up many enterprises. We are only capable of helping 500 Chinese enterprises, from different industries of course, go global together.
Another reason is to avoid conflicts because the biggest enemy for China is not from the outside but from inside. For instance, the minute the London Games ended, Chinese e-tailers plunged into a price war. They were almost at each other’s throat. Such a phenomenon is age-old in China. But our overseas partners are not any happier about this. Well, some may be cheering. But for those visionary partners and friends, they don’t really want to see conflicts within Chinese enterprises because the constant internal fighting will undermine services to the very end. It will even breed counterfeit products.
So what we need is a virtuous environment. We have to learn from the International Olympic Committee (IOC), which acknowledges only one champion in each field, and select at most one sponsor from each industry. The way it performs can make sure that the Olympic Games is harmonious enough for everyone to create values instead of fighting with each other.
Host: You’re right. I feel the same way. I believe many Chinese people always wonder why we see “Made in China” quite often in foreign countries, but rarely Chinese brands. This begs the question: what makes it so hard for Chinese enterprises to go global? The organization provides a good platform for our private enterprises. Will it fare well in the future?
Feng: There are two reasons, I think. First, it’s only been 30 years since China’s reform and opening-up. Chinese enterprises have to lay a solid foundation first within China. That’s why most of them have been busy vying for the domestic market shares.
But internationalization is inevitable now, whether you like it or not. A big challenge for Chinese enterprises lies in that it’s very risky to go global alone. And the cost is very high. Once it succeeds, troubles follow. Many domestic firms start stealing its talents and clients, thus undermining its domestic market. Going global alone is a risk too high to take. But the truth is, it’s a dog-eat-dog world out there. If you don’t come to them, they’ll come to you. By then there will be nowhere to hide. Therefore, we have to stick together when going global.
China’s GDP per capita is less than one tenth that of Western Europe. The Chinese are so industrious, diligent, and intelligent, the only thing they need is to go to the outside world.
It is really quite risky and costly for us to explore the overseas market by ourself. It’s no easy thing for a newcomer to an unfamiliar place, especially when you break local laws, which will cost you a lot. So we decided to go out in a group. It’s less risky and local property developers are eager to accommodate us because we are a group of well-behaved companies. It’s like the Olympic Village welcoming athletes from around the world.
We invite the top 3 companies of each industry to join our alliance, and those selected will be the alliance’s one and only in his industry.
You may ask what about the others? They can join our Club. Even if you are not one of the top 3 players in your industry, or just a small- and medium-sized company, you can be a member of our Club, which offers opportunities for SMEs to learn from the big companies in our alliance.
We organize 10 conferences each year to share information on internationalization. The top 3 players selected in our alliance will deliver lectures.
So I urge Chinese companies to stop grappling with domestic rivals and to become comrades in arms.
The Alliance members can choose its favorable regions first, its peers in the Club can blaze trails in the rest of the world market so they will not compete in the same market, but become comrades conquering the world market. They can share their resources and exchange what they need, and become each other’s agent in his turf.
That would improve the relations between the companies, just like the harmonious atmosphere in the Olympic Family. People will spare more effort to create values instead of grappling with domestic peers, and turn their sights to the outside world outside.
Closing on this post:
Forum Debate: Demystifying Asia’s Entrepreneurs on the Annual Meeting of the New Champions 2012 (World Economic Forum), in Tianjin, People’s Republic of China
[Sept 11, 2012]
Are Asia’s entrepreneurs different from Western entrepreneurs?
Feng Jun, Chairman, President and Chief Executive Officer, Aigo Digital Technology:
– starting with “1+1=11” and ending with “chess metaphore”: from [11:20] to [14:00]
– on respecting differences: from [19:36] to [20:13]
– on meeting foreign entrepreneurs [and agreeing that the principles are same everywhere] and on differences [to be respected] e.g. in China illustrated by the Chinese chess or the Chiese medicine: from [29:00] t0 [31:05]
– on “for Chinese companies our biggest problem is teamwork” which is leading to his Olympic story “China got 38 medals but all individual”: from [39:05] to [40:43]
– starting with questions “how many of you can play the Chinese chess and Mahjong?” when Chinese raised their hands, and “how many of you can play the bridge or international chess?” when Western people raised their hands >> leading to statement that “to become entrepreneurs Chinese need to settle down their internal circumstances, first and foremost the Chinese Mahjong sometimes has beaten us, which stems from thousands years of history” because “the Chinese emperors were afraid of their people coming together, therefore they used Mahjong to alienate the Chinese people, pitching them against each other in the Mahjong game, but in the international chess is all teamwork …”: from [41:55] to [43:55]
Feng Jun: no longer talk about “patriots” of the Patriots [China Economic Weekly, Oct 8, 2012] as translated from Chinese with Google and Bing with the necessary manual edits
People actually want to hear Feng Jun talk about products and the future of the aigo, but on this Feng was unwilling to talk about.
Sony has what you have to what
On the afternoon of September 10, 2012, at the Davos Forum in Tianjin, Feng Jun, dressed in black Chinese Collar, came to collect the second day of the admission documents.
In the small courtyard next to the Registry, Feng Jun accepted the China Economic Weeklyin an interview on his holding to the aigo on the digital market: “I hope the Chinese national brand can exist, despite of some product losses, I am still clung to the digital market.”
Indeed, the aigo company is at a loss. In recent years, the digital camera market has increasingly been concentrated in large multinational companies, domestic camera manufacturers have been closed down, only Feng Jun adhere to the production. Feng Jun said: “We are at the obvious losses, loss of seven years.” Over time, Mr Feng admits that aigo have survived long.
Traditional digital brands are out of the market in China, according to Feng Jun’s words, today the maximum value of aigo is a contribution to the nation.
But one consumer told reporters: “five or six years ago, aigo was the leading national brand, in mobile storage, MP3, and some products for everyone to leave a deep impression. But now, we increasingly do not know what aigo is doing.”
Whatever aigo is doing, but it is a growing gap with international brands, what Feng Jun understood.
Feng Jun has his own reasons: “Sony has a pistol, you have to have a pistol; Sony has a rifle, you have to have a rifle; Sony has grenades, you have to have hand grenades, you are less like channels are likely to become compromised by the other party a path.” As far as the future is concerned, said Feng Jun, the tablet PC will become one of the priorities of the Patriots.
He believes that, the aigo is a comprehensive brand to have longer product lines so that shop and store surfaces could not be squashed by Sony, Canon, and aigo eroded away.
In the eyes of Feng Jun, manufacturers of electronic digital products must have a number of products, as focusing on single products as a guidance in times of crisis will inevitably lead to the bankruptcy of the enterprise. However, many people do not agree with Mr Feng. Communications industry expert Xiang Ligang said that, on the contrary, with large and comprehensive enterprise funds dispersed, as each product involves research and development, and as such each product could not have its own core technologies and competitiveness, it must be difficult to survive in the end.
In 2003, the market share of the aigo mobile storage products consecutive years ranked first, the aigo MP3 had a good market performance, in 2007 aigo first launched the first MP5 multimedia player on the domestic market, in 2009 aigo launched the first cloud MP6 player.
However, in the last two or three years time, as smart phones and tablet PCs represented by Apple products quickly became mainstream, listening to music, storage and recording features went into those mobile devices. Wanting to blaze a new trail on the iPhone and iPad dominated market, could be difficult.
Today electronic photo frames, as well as mobile storage products and other superior products supporting the operations of aigo, such as cameras, mobile phones, e-books, and so on are facing losses.
Aigo is like the pawns at the river [in Chinese chess], and now has no escape route. In front of the media, Feng Jun has less love to talk about products and aigo’s core business, he loves talking about the Aigo Entrepreneurs Alliance, he said it is now the only advocacy highlights. Feng believes that the current situation is forcing Chinese companies to go out, this is the only hope for the Chinese enterprises. On one hand, by entering the international market they could share the cost of R & D and improve the profitability of the enterprise. On the other hand, foreign markets will not discriminate against Chinese brands, China’s digital products can be sold in foreign countries at higher than the domestic prices.
Feng believes that, as a private enterprise, individual enterprises do not have the courage and strength alone for overseas adventures, they must form a concerted effort to open up overseas markets. Relative to the traditional digital products market the growth rate is slowing, helping enterprises to go out in order to bring value seems to be a better sense.
In response, some entrepreneurs and industry experts are not as sure. Communications industry expert Xiang Ligang told China Economic Weekly, he is very much in agreement that companies must go overseas, but does not agree with the form that they must ally with each other to go out, because enterprises inevitably produce competitive market behavior and take the market by “unity” between enterprises is not going to work.
Feng Jun’s chess theory
Chinese people play chess, the Japanese Chess as well, and Indians play chess, the rules of these three are completely different. The chess pawns arch can change, so the morale and team spirit is relatively easy to achieve, everyone can venture in this system. Chinese Chess encourage is not to encourage entrepreneurship. Once across the river, became a dead stroke, go down go to die, as cannon fodder.
Feng Mahjong theory
The the mahjong rules may be the root of the Chinese nation can not be to Baotuan the most important one. Mahjong rules is to keep a close eye on the house, tight look to home, in order not to let the other win, these would rather destroy themselves going to destroy others. This rule so that the Chinese people can not unite, only against each other. …… Mahjong China punish those helpful point gun, who shot who is unlucky, and who help others unlucky, who when Lei Feng unlucky, lead to every Chinese dare not peddler, afraid to tell the truth, who revealed the secret unlucky, leading everyone in China to become individual.
Now I will suggest every reader to take a look at the home offerings of the aigo company:
欢迎光临爱国者官网·aigo爱国者 数码相机 数码摄像机 Mp3 Mp4 MP5 (aigo’s Chinese homepage). From this I would just recommend to take the product range tour as an illustration of Feng’s “as wide as only possible” idea for the home market: [in the footer part of the homepage]
Wonderful recommendation: [in the footer part of the homepage]
the smart pen MP6 Moonlight digital photo frame digital camera [cat 69-1] digital camera [cat 142-1]
mobile storage king voice recorder Aigopad aigoU disk somersault cloud phone observation king
And this just a selection from an even large range of offerings since there are the following product categories are available as well:
- Geyao products (camera, e-book reader, and 2 kind of digital photo frames)
- DIY Accessories etc. (15 quite different loudspeaker boxes and systems)
- aigo eBooks (8 different B/W and color devices)
- New energy products (the innovative aiPowo series, you need to look at!)
- Digital optoelectronic products (4 projectors and 4 digital microscopes)
- Happy Mouse Series (4 mice)
- Photon whiteboard (a quite innovative kind of whiteboard)
- Electronic educational products (children specific things)
- Movie this (a number of “tablet like” I would call “movie frames” and a color e-book)
- Cloud projector (a single product called “the world’s first the smart portable multimedia projector equipped with a cloud service”)
Out of the major recommendations I will include here just the Aigopad i.e. Tablet PC category in order to illustrate this – said to be strategic for aigo – family of products, how deep and wide they are by themselves: there are not less than 29 tablet products !
(when some images are gone you could take a PDF-based look at Aigopad at the time writing)
Updates: The real threat that Samsung poses to Apple [ASYMCO, Dec 7, 2012]
– iPhone 3GS Prices Lowered Down To Rs 9,999 [US$ 179] in India [iPhone Help, July 20, 2012]
– Fighting Android, The Apple iPhone Strategy [Only Gizmos, July 21, 2012]
There was a 5 years anniversary of iPhone on June 29. This product and the adjacent iPad (called “revolutionary” and “magical”, subsequently, by the vendor itself) skyrocketed Apple to previously unbelievable heights in company valuations by the stock market:
Apple Stock Price Reaches All-Time High [NewsyHub YouTube channel, April 12, 2012]
Transcript by http://www.newsy.com
BY VICTORIA CRAIG
ANCHOR JIM FLINK
All three major stock indeces fell triple digits by the end of Tuesday’s trading day. But one individual stock price surged — reaching a mark only one other stock has managed to do…ever. Phoenix’s KNXV has the details.
“The world’s most valuable company is now worth even more. Apple computers’ value is now more than $600 billion based on its stock price. Its shares are up almost 60% since the beginning of the year.”
Apple’s price hit a daytime high of $644 in the morning. PC Advisor explains why this mark is nearly unprecedented.
“The stock price rose to $644 in the morning, and then fell back to $629 by midday. Only one other company has reached the $600 billion value: Microsoft on Dec. 30, 1999, was valued at $619 billion. Today, its value is $260 billion..”
Adjusting for inflation, Microsoft’s 1999 total would be today’s equivalent of about $800 billion. In total, Apple stock has risen 58 percent on the year…and it didn’t take long for the stock to cross the threshold from $500 billion to $600 billion. The Wall Street Journal explains the stock’s journey to the top and what it means for the NASDAQ.
“To put the rally in perspective, it took Apple only 28 trading days to add $100 billion in value as Apple first crossed $500 billion on Feb. 29. In comparison, only 24 members of the S&P 500 have market capitalizations above $100 billion.”
So what’s the reason behind the rally? A writer for Pad Gadget.com explains it’s more than just it’s mobile devices, citing…
“… Apple’s intentions to initiate a dividend and share repurchase program starting later this year plus the usual anticipation over potential new products. Most consumers and investors alike are waiting on the edg[e] of their seats to see what television-related product Apple has waiting in the wings, with the expectations all quite high that it will be equal parts amazing and marketable.”
Nifty new gadgets aside, what’s next for Apple? Will it continue its climb or fall back…retracing the steps of its biggest competitor? A contributor for CNBC says Apple’s stock is overbought and growth from here will likely slow. But another analyst disagrees and speculates big movement for the stock.
“Some of the analysts are saying that we could see a trillion dollar market cap figure in a calendar year 2014. I think we might actually see that a little earlier. For me, I think there are still some very positive catalysts around this stock. Expecting the iPhone 5 during the summer.”
Early in the trading day Wednesday, Apple’s stock price was up almost 7 points, reaching a value of $635.
There were several articles about that fundamental change, most importantly:
Business Insider articles:
– Apple Stock vs Google Stock Since The Launch Of The iPhone [June 30, 2012]
– 9 Fascinating Facts About Apple’s Stock [May 21, 2012]
– THE EXPERTS SPEAK: Here’s What People Predicted Would Happen When The iPhone Came Out… [June 29, 2012]
– 10 Things You Didn’t Know About The Birth Of The iPhone [June 27, 2012]
– Yes, You Should Be Astonished By Apple … [April 25, 2012]
Other noteworthy articles:
– The Untold Story: How the iPhone Blew Up the Wireless Industry [Wired Magazine, Jan 9, 2008]
– Apple’s stock is getting creamed by Verizon and AT&T [CNNMoney, May 9, 2012]
– I declare independence from Apple [BetaNews, July 4, 2012]
– Apple’s injunction stopping Galaxy Nexus sales is shameful [BetaNews, June 29, 2012]
– Appeals court delays Galaxy Nexus ban [Android Central, July 6, 2012]
– Nine Reasons You Should Boycott Apple [David Amerland, July 7, 2012]
– Android vs. iOS: A Developer’s Perspective [July 5, 2012]: The architecture of Android is just plain BETTER. They don’t restrict what you can do and there always seems to be a good tutorial to follow telling you exactly how to do the exact crazy thing that you want to do. As far as the languages go, I don’t really have a preference for Obj-C vs. Java. They both do the job pretty well. I still don’t quite have my head wrapped around ARC, but that’s a post for another day.
– China’s smartphone market grows 164%, Apple’s iOS takes 17.3% share [Apple Insider, July 9, 2012]: Even without availability on China’s largest mobile provider, the iPhone’s market share in China has grown form 9.9 percent a year ago to 17.3 percent in the June quarter. … stems from the launch of the iPhone on China Telecom this year. … the company has yet to forge a partnership with China Mobile, the largest wireless provider in the world with more than 650 million subscribers. Reports have suggested that Apple’s next iPhone will add compatibility with China Mobile’s proprietary wireless network. Apple’s 17.3 percent share in China was well behind Google’s Android platform, which dominated with 69.5 percent of smartphones sold in the country. Apple took second place, while Nokia finished in third with an 11.2 percent share.
– Building and dismantling the Windows advantage [the Asymco blog, July 2, 2012]
If we consider all the devices Apple sells, the whittling becomes even more significant and the multiple drops to below 2. Seen this way, Post-PC devices wiped out of leverage faster than it was originally built. They not only reversed the advantage but cancelled it altogether.
Considering the near future, it’s safe to expect a “parity” of iOS+OS X vs. Windows within one or two years. The install base may remain larger for some time longer but the sales rate of alternatives will swamp it in due course.
The consequences are dire for Microsoft. The wiping out of any platform advantage around Windows will render it vulnerable to direct competition. This is not something it had to worry about before. Windows will have to compete not only for users, but for developer talent, investment by enterprises and the implicit goodwill it has had for more than a decade.
It will, most importantly, have a psychological effect. Realizing that Windows is not a hegemony will unleash market forces that nobody can predict.
Now let’s see how that has come about in terms of market volume and technological improvements:
– 6/29/2007: iPhone, iPod touch (ARM 1176JZ(F)-S @412 MHz, 128MB, PowerVR MBX Lite, GPRS/EDGE 2.5G for iPhone, 3.5” display of 480 × 320 pixels, 2MP)
– 7/11/2008: iPhone 3G (the same except 3.6 Mbps UMTS/HSDPA) & App Store
– 6/19/2009: iPhone 3GS (the same except ARM Cortex-A8 @600 MHz, 256MB, PowerVR SGX535, 7.2 Mbps UMTS HSDPA, 3MP camera)
– 4/03/2010: iPad (ARM Cortex-A8 @1 GHz, 256MB, PowerVR SGX535, 9.7” display of 1024×768 pixels, WiFi [+3G])
Currently marketed devices (all use iOS 5.x which cannot be used on earlier iPhone and iPhone 3G, so those are not iCloud capable), in addition to iPhone 3GS ($330+ unlocked in US, but $179+ in India since July 20, 2012) which is also marketed:
– 6/24/2010: iPhone 4 (ARM Cortex-A8 @800 MHz, 512MB, PowerVR SGX535, 3.5G 5.76 Mbps HSUPA, 3.5” Retina display of 960 x 640 pixels, 5MP camera), $550+ unlocked
– 3/25/2011: iPad 2 (ARM Cortex-A9 @1 GHz, 512MB, PowerVR SGX543MP2, 9.7” display of 1024 x 768 pixels, WiFi [+3.5G HSUPA]), $350+
– 10/24/2011: iPhone 4S (dual-core ARM Cortex-A9 @800 MHz, 512MB, PowerVR SGX543MP2, 4G LTE, 3.5” Retina display of 960 x 640 pixels, 8MP camera), IOS 5 (Notification Center, iMessage and Newsstand … 1,500 new APIs) & iCloud (store music, photos, apps, contacts, calendars, documents and more in the cloud, keeping them up to date across all your devices via the cloud), $790+ unlocked
– 3/16/2012: New, 3d generation iPad (dual-core ARM Cortex-A9 @1 GHz, 1GB, PowerVR SGX543MP4, WiFi [+4G LTE], 9.7” Retina display of 2048 × 1536 pixels), $500+
Note that in April 2012 the under $200 (unlocked) Android smartphones came quite close to the capabilities of the iPhone 4S thanks to Boosting the MediaTek MT6575 success story with the MT6577 announcement [June 27, 2012]. Only the SGX531 GPU of MT6577 is a significant deficiency against that of SGX543MP2 used in the iPhone 4S. As a consumer computing system Google was also able to match Apple with the Nexus 7: Google wanted it in 4 months for $199/$245, ASUS delivered + Nexus Q (of Google’s own design and manufacturing) added for social streaming from Google Play to speakers and screen in home under Android device control [June 28, 2012].
Wikipedia is the best source of detailed technical and other information (by far), except that of iCloud currently (so find a better source of information on that given in sections of this post):
In addition I compiled a 5 years of “revolutionary” iPhone and “magical” iPad [June 29, 2012] PDF document from all related Apple press releases for that period. In it there are the following sections:
– Product ramp-up and momentum
– The strongly related iTunes Store momentum during these 5 years
– Essential Device Announcements
– All related Apple press releases
In addition there are document bookmarks included everywhere for easy navigation around the whole 129 pages long compound document.
Finally I have further information in this blogpost specifically compiled in order to represent the Apple iOS based consumer computing solution as a system since, in my view, that is one of the most important aspects of this 5 years anniversary which is not represented anywhere else at the moment:
1. Overall picture at the moment (video-based)
2. Current iPhone and iPad products (video-based)
3. Earlier products (video-based)
6. App Store
1. Overall picture at the moment:
2. Current iPhone and iPad products:
3. Earlier products:
Official Apple iPhone 4 Video [June 7, 2010]
iPhone 3GS ads all in one. Official Apple Commercials spots HQ [Glarand YouTube channel, Sept 29, 2011]
ALL iPhone 3G official Ads… Collected&Edited in One Video HQ [hsmmgg YouTube channel, March 21, 2009]
[HD] Steve Jobs – 2007 iPhone Presentation ( Part 1 of 2 ) [UG3Genki YouTube Channel]
[HD] Steve Jobs – 2007 iPhone Presentation ( Part 2 of 2 ) [UG3Genki YouTube Channel]
iPad 2 Official Introduction Video [March 2, 2011]
Apple iPad: First TV Commercial [March 8, 2010]
Apple iPad Official Video [1080p HD] [Jan 27, 2010]
4. iCloud [Apple microsite, June 6, 2011]:
It’s the easiest way to manage your content. Because now you don’t have to.
iTunes in the Cloud
Your music, movies, and TV shows. Wherever you want them.
You never know when you’ll suddenly be in the mood to listen to a favorite song, rewatch a classic movie, or share that hilarious sitcom episode with a friend. With iCloud, you can have iTunes automatically download new music purchases to all your devices the moment you tap Buy. You can also access past music, movie, and TV show purchases from any of your devices — wirelessly and without syncing.1
1.Automatic downloads and downloading previous purchases require iOS 4.3.3 or later on iPhone 3GS or later, iPod touch (3rd and 4th generation), or iPad; iOS 5 on iPhone 4 (CDMA model); or a Mac or PC with iTunes 10.3.1 or later. Previous purchases may be unavailable if they are no longer in the iTunes Store, App Store, or iBookstore. Downloading previous movie purchases requires iTunes 10.6, iOS 5 or later, or Apple TV software 4.3 or later. Not all previously purchased movies are available for downloading to your other devices. Download iTunes 10.6 free.
If you want the benefits of iTunes in the Cloud for music you haven’t purchased from iTunes, iTunes Match is the perfect solution. It lets you store your entire collection, including music you’ve imported from CDs. For just $24.99 a year.2
2.iTunes Match requires iOS 5.0.1 on iPhone 3GS or later, iPod touch (3rd and 4th generation), or iPad, or a Mac or PC with iTunes 10.5.1. Limit 25,000 songs. iTunes purchases do not count against limit. Access to some services is limited to 10 devices.
Snap. And it’s everywhere.
With Photo Stream, you can take a photo on one iOS device and it automatically appears on all your other devices, including your Mac or PC. Import new pictures to your computer from a digital camera, and iCloud sends copies over Wi-Fi to your iPhone, iPad, and iPod touch. You can even view recent photos on your big-screen TV via Apple TV. There’s no syncing, no email attachments, no file transfers. Your pictures are just there — on whichever device you happen to have handy.
Documents in the Cloud
Start here. Finish there.
You can create amazing documents and presentations on your iPhone, iPad, and iPod touch. And now with iCloud, you can keep your work up to date across all your iOS devices. You don’t have to save your work or transfer any files. Your documents — with all your latest edits — automatically appear everywhere. iCloud is already built into Apple iOS apps like Keynote, Pages, and Numbers. It can also work with other iCloud-enabled apps. So you can do things like create a spreadsheet on your iPad and make edits to it on your iPhone. Or start sketching on your iPod touch and add the finishing touches on your iPad at home.
All your apps. Always at hand.
If you have an iPhone, iPad, or iPod touch, you have apps. And you probably download new ones all the time. iCloud lets you automatically download new app purchases to all your devices at once. So the app you need is always right where you need it. If an app you bought previously isn’t on one of your devices, not to worry. You can download it again from your purchase history — at no additional charge.1
All your devices are on the same page.
Buy a new book from the iBookstore, and iCloud makes sure it appears everywhere — your iPhone, iPad, and iPod touch. So if you have to put it down, you can pick it back up on another device, in exactly the same place. In addition to the best seller you’re glued to at the moment, the iBooks app keeps a list of titles you’ve read before. And just like with apps, you can download them again to any of your devices.1
Calendar, Mail, and Contacts
iCloud stores all the stuff you can’t live without — your calendars, email, and contacts — and keeps it up to date across all your devices. Say you delete an email, add a calendar event, or change some settings. iCloud makes all your changes everywhere. Same with your notes, reminders, and Safari bookmarks.
iCloud saves the day.
iCloud backs up your iOS device daily over Wi-Fi when it’s connected to a power source. From your Camera Roll and messages to your device settings and ringtones, everything is backed up quickly and efficiently. And since iCloud is built into iPhone, iPad, and iPod touch, you can restore your personal data on a new iOS device or one you already have without using a single cable.3iCloud does it all for you over Wi-Fi.
Find My Friends
For finding your way to the party, keeping track of family at a crowded amusement park, or getting picked up at the airport, Find My Friends is your app.4 You can give friends and family permission to see your whereabouts. And vice versa. When you don’t want to be found, a single switch takes you off the grid. Simple as that.
Find My iPhone, iPad, iPod touch, and Mac
Lost. And found.
If checking all the usual spots hasn’t turned up your missing iOS device, Find My iPhone, iPad, iPod touch, and Mac can help.4Just sign in at icloud.com or use the Find My iPhone app on another device to locate yours on a map, display a message on its screen, remotely set a passcode lock, or initiate a remote wipe to delete your data.
3. Backup of purchased music is not available in all countries. Previous purchases may not be restored if they are no longer in the iTunes Store, App Store, or iBookstore.
4.Find My Friends and Find My iPhone enable you to locate iOS devices only when they are on and connected to a registered Wi-Fi network or have an active data plan.
iCloud requires iOS 5 on iPhone 3GS or later, iPod touch (3rd and 4th generation), or iPad; a Mac computer with OS X Lion; or a PC with Windows Vista or Windows 7 (Outlook 2007 or 2010 or an up-to-date browser is required for accessing email, contacts, and calendars). Some features require a Wi-Fi connection. Some features are not available in all countries. Access to some services is limited to 10 devices. Map data © 2012 Google. © 2012 Google. Map data © 2012 Google.
Apple – iCloud – Coming Soon [page on the iCloud microsite, June 11., 2012]:
iCloud is about to get even better. With the launch of Mountain Lion this July and iOS 6 in the fall, iCloud gets brand-new features for iPhone, iPad, iPod touch, Mac, and PC.
|Safari. Keeps tabs on your web pages.
iCloud Tabs show the web pages you have open on all your other devices, so you can see all your pages on your iPad, iPhone, iPod touch, and Mac, and pick up browsing wherever you left off. Safari now saves web pages — not just links — in your Reading List. So you can get caught up on any device, even when you can’t connect to the Internet. 1
1. Offline Reading List will be available on iPhone 4 or later and iPad 2 or later.
2. Shared Photo Streams requires iOS 6 on iPhone 4 or later or iPad 2 or later, or a Mac computer with OS X Mountain Lion. An up-to-date browser is required for accessing shared photo streams on the web.
|Shared Photo Streams. Share select photos with a select audience.
Now you can share just the photos you want, with just the people you choose. Simply select photos from the Photos app, tap the Share button, choose who you want to share your photos with, and they’re on their way. Friends using iCloud on an iOS 6 device or a Mac running Mountain Lion get the photos delivered immediately in the Photos app or iPhoto. You can even view shared photo streams on Apple TV. If the folks you’re sharing with aren’t using an Apple device, they can view your photos on the web. People can like individual photos and make comments. And you can share as much as you want: Your shared photo streams don’t count against your iCloud storage, and they work over Wi-Fi and cellular.2
|Find My Phone. Stay on the trail of your iPhone.
It happens. You misplace your iPhone, or your iPad, or your iPod touch. Luckily, iOS 6 and iCloud now offer Lost mode, making it even easier to use Find My iPhone to locate and protect a missing device. Immediately lock your missing device with a four-digit passcode and send it a message displaying a contact number. That way a good Samaritan can call you right from your Lock screen without accessing the rest of the information on your device. And while in Lost mode, your device will keep track of where it’s been and report back to you any time you check in with the Find My iPhone app.3
|Find My Friends. Good friends aren’t hard to find.
Find My Friends is a great way to share your location with people who are important to you. Family and friends who share their locations with you appear on a map so you can quickly see where they are and what they’re up to. And with iOS 6, you can get location-based alerts — like when your kids leave school or arrive home. Find My Friends can also notify others about your location, so you can stay connected or keep track of the ones you love.
3.Find My iPhone and Find My Friends enable you to locate iOS devices only when they are on and connected to a registered Wi-Fi network or have an active data plan.
5. iTunes [Apple microsite, Oct 4, 2011]:
Apple – iTunes – Your media on your Mac, PC, iPod, iPhone, and iPad.
Play, buy, and end enjoy your music, movies, TV shows, apps, and more. Everywhere.
iTunes is a free application for your Mac or PC. It lets you organize and play digital music and video on your computer. It can automatically download new music, app, and book purchases across all your devices and computers. And it’s a store that has everything you need to be entertained. Anywhere. Anytime.
Where listening, watching, and playing start.
iTunes lets you enjoy all your music, movies, videos, and TV shows on your Mac or PC. When you want to watch or listen to something, you no longer have to look through your CDs or flip through channels — just go to your computer and open iTunes. With your entire media collection in your iTunes library, you can browse everything faster, organize it all more easily, and play anything whenever the mood strikes.
The world’s #1 music store. And more.
Music is just the beginning. You can also rent or buy blockbuster movies, buy HD episodes of your favorite TV shows, shop for books, and download apps for your iPhone, iPod touch, or iPad. Subscribe to free podcasts about anything and everything. For further enlightenment, visit iTunes U and download free lectures, discussions, and lessons from universities and cultural institutions around the globe. You’ll find thousands of hours of entertainment on the iTunes Store.
iTunes in the Cloud.
With iTunes in the Cloud, you can wirelessly download your content to all your devices, regardless of which device you used to purchase it. Your new music, apps, and books just appear — automatically. And you can view your purchase history to choose the TV shows you want to download.1 Effortlessly. Learn more
1. Automatic downloads and downloading previous purchases require iOS 4.3.3 or later on iPhone 3GS or later, iPod touch (3rd and 4th generation), iPad, or iPad 2; iOS 5 on iPhone 4 (CDMA model); or a Mac or PC with iTunes 10.3.1 or later. Previous purchases may be unavailable if they are no longer in the iTunes Store, App Store, or iBookstore. Download iTunes 10.6 free.
A match made in iCloud.
With iTunes Match, you can store your music collection in iCloud, including songs you’ve imported from CDs. And you can play them on any iPhone, iPad, iPod touch, Apple TV, Mac, or PC — all for just $24.99 a year.2 Learn more
2. iTunes Match requires iOS 5.0.1 on iPhone 3GS or later, iPod touch (3rd and 4th generation), iPad, or iPad 2, or a Mac or PC with iTunes 10.5.1. Limit 25,000 songs. iTunes purchases do not count against limit. Access to some services is limited to 10 devices.
Music’s in the house.
AirPlay lets you stream music throughout your whole house — wirelessly. AirPlay wireless technology is integrated into many speaker docks, AV receivers, and stereo systems. So you can enjoy your entire iTunes library. Every song and every playlist. In any room, anytime. [Learn more]
[Remote is a free, fun, and easy-to-use app that turns your iPhone, iPad, or iPod touch into a remote control. So wherever you are in your house, you can control your computer’s iTunes library and your Apple TV with a tap or flick of a finger. Learn more]
Features are subject to change. Access to some services is limited to 10 devices. See www.apple.com/legal/itunes/ww/ for more information.
The iTunes Store is available only to persons age 13 or older in the U.S. Requires compatible hardware and software and Internet access (fees may apply). Terms apply. See www.apple.com/itunes/what-is/store.html for more information.
Available on iTunes. Title availability is subject to change.
– iTunes Match puts your whole music library in iCloud. [Apple’s Inside iTunes blog, Jan 16, 2012]
– Get Books On iTunes, the iBookstore, and the App Store [Apple’s Inside iTunes blog, April 18, 2011]
– iTunes 10.3 Now Includes iBookstore [Apple’s Inside iTunes blog, June 8, 2011]
– iBooks 2 brings new Multi-Touch textbooks to iPad [Apple’s Inside iTunes blog, Jan 30, 2012]
– New features in iBooks 2.1. [Apple’s Inside iTunes blog, March 26, 2012]
– New iTunes U app delivers online courses to mobile devices. [Apple’s Inside iTunes blog, Feb 6, 2012]
– Movies now available on iCloud. [Apple’s Inside iTunes blog, March 19, 2012]
– New Categories make browsing Newsstand’s offerings easier. [Apple’s Inside iTunes blog, May 25, 2012]
Apple – iPhone 4S – Keep yourself entertained at the iTunes Store. [Apple product page, Oct 3, 2011]
Millions of ways to stay entertained
You’re in a coffee shop and you hear a song you just have to have. Or you’re at the airport, wishing you had a good movie to watch. Just go to iTunes. Find all the new music, movies, TV shows, and podcasts you want. Then download it all wirelessly, right to your iPhone. Wherever you happen to be.
Explore the store.
Browse New Releases, Top Tens, and Genres. If you know exactly what you’re looking for, type in a quick search. Play a preview of any song or video, then tap to buy it.1 With millions of songs and thousands of movies, TV episodes, and music videos in the iTunes Store — and a huge selection in HD — you’re sure to find something you’ll love.
1. Downloads over 50MB require a Wi-Fi connection.
The Tone Store.
iTunes Ping. Stay in the know.
Follow friends to find out what music they’re listening to, buying, and recommending. Catch up with your favorite artists and see if they’re playing near you. That way, you’ll never miss another show. You can even see which of your friends are planning on going, too.
iTunes in the Cloud.
When you buy music from iTunes, iCloud automatically downloads it to all your devices over Wi-Fi or a cellular network. So everything new appears everywhere — on your iPhone, iPad, and iPod touch. You can also browse your purchase history and choose specific songs, albums, movies, or TV shows to download again at no additional cost.2 Sign up for iTunes Match and you can access all your other music from iCloud — including music you’ve imported from CDs. For just $24.99 a year.3
2. Automatic downloads and downloading previous purchases require iOS 4.3.3 or later on iPhone 3GS or later, iPod touch (3rd and 4th generation), or iPad; iOS 5 on iPhone 4 (CDMA model); or a Mac or PC with iTunes 10.3.1 or later. Previous purchases may be unavailable if they are no longer in the iTunes Store, App Store, or iBookstore. Downloading previous movie purchases requires iTunes 10.6, iOS 5 or later, or Apple TV software 4.3 or later. Not all previously purchased movies are available for downloading to your other devices. Download iTunes 10.6 free.
3. iTunes Match requires iOS 5.0.1 or later on iPhone 3GS or later, iPod touch (3rd and 4th generation), or iPad, or a Mac or PC with iTunes 10.5.1 or later. Limit 25,000 songs. iTunes purchases do not count against limit. Access to some services is limited to 10 devices.
Apple – iPod touch – Browse and buy anytime you want with iTunes.[Apple product page, Oct 3, 2011]
Your DJ-slash-cineplex-slash-TV and more.
You could be anywhere — in line for your “fixes everything” fruit smoothie or just lounging in the quad — when it hits you. There’s a song you need by a band you love, a TV show you missed, or a movie you just have to see, right then and there. Enter iTunes on iPod touch.
Get your entertainment fix on the fly.
Access the iTunes Store over Wi-Fi and you can discover new music from millions of songs. Buy or rent movies. Buy TV shows. Or find free podcasts. Browse New Releases, Top Tens, and Genres. If you know exactly what you’re looking for, type in a quick search. Play a preview of any song or video, then tap to buy it. It downloads right to your iPod touch, making you the master of long waits.
iTunes in the Cloud.
When you buy music from iTunes, iCloud automatically downloads it to your other devices over Wi-Fi or a cellular network. So everything new appears everywhere — on your iPod touch, iPhone, iPad, Mac, or PC. You can also browse your purchase history and choose songs, albums, movies, or TV shows to download again at no additional cost.1 Sign up for iTunes Match and you can access all your other music from iCloud — including music you’ve imported from CDs. For just $24.99 a year.2 Learn more about iCloud
1. Automatic downloads and downloading previous purchases require iOS 4.3.3 or later on iPhone 3GS or later, iPod touch (3rd and 4th generation), or iPad; iOS 5 on iPhone 4 (CDMA model); or a Mac or PC with iTunes 10.3.1 or later. Previous purchases may be unavailable if they are no longer in the iTunes Store, App Store, or iBookstore. Downloading previous movie purchases requires iTunes 10.6, iOS 5 or later, or Apple TV software 4.3 or later. Not all previously purchased movies are available for downloading to your other devices. Download iTunes 10.6 free.
2. iTunes Match requires iOS 5.0.1 or later on iPhone 3GS or later, iPod touch (3rd and 4th generation), or iPad, or a Mac or PC with iTunes 10.5.1 or later. Limit 25,000 songs. iTunes purchases do not count against limit. Access to some services is limited to 10 devices.
Now you have a following.
Ping your friends and follow each other to find out what music everyone loves, buys, and recommends. You can even follow your favorite artists and see who they follow. And when they’re playing a show near you, Ping tells you which friends are up for going.
iTunes U hones your know-it-all skills.
Discover iTunes U on your iPod touch and download some knowledge. You’ll find lectures, discussions, language lessons, audiobooks, podcasts, and more from top universities, museums, and other cultural institutions around the world.
With millions of songs and thousands of movies, TV episodes, and music videos in the iTunes Store — and a huge selection in HD — you might need some help finding new favorites. Genius keeps track of what you love and recommends more of the same.
Shop the new Tone Store.
You hear an alert go off — like a new text message or Facebook update — and think, “Is that me?” You check your iPod touch, and it turns out it’s not. It’s the guy with the iPhone across from you. Now you can make your alerts a lot more individual thanks to the Tone Store and iOS 5. Part of the iTunes Store, the Tone Store is where you can download alert tones for just 99¢. Here’s to your supreme uniqueness.
iCloud requires iOS 5 on iPhone 3GS or later, iPod touch (3rd and 4th generation), or iPad; a Mac computer with OS X Lion; or a PC with Windows Vista or Windows 7 (Outlook 2007 or 2010 or an up-to-date browser is required for accessing email, contacts, and calendars). Some features require a Wi-Fi connection. Some features are not available in all countries. Access to some services is limited to 10 devices.
The iTunes Store is available only to persons age 13 or older in the U.S. and many other countries; see www.apple.com/support/itunes/ww for a list of countries. Requires iTunes, compatible hardware and software, and Internet access; broadband recommended (fees may apply). See www.apple.com/itunes/whats-on/ for more information. Terms apply.
Apple – The new iPad – Amazing iPad apps, built right in. [Apple product page, March 7, 2012]
Open the iTunes app to shop for thousands of HD movies and TV shows (up to 1080p HD, to be exact) 24/7/365.5 While you’re there, pick up a song or two. There are over 20 million to choose from. And iCloud lets you access your iTunes purchases from every device you use — iPad, iPhone, iPod touch, Mac, or PC.1
1. Automatic downloads and downloading previous purchases require iOS 4.3.3 or later on iPhone 3GS or later, iPod touch (3rd and 4th generation), or iPad; iOS 5 on iPhone 4 (CDMA model); or a Mac or PC with iTunes 10.3.1 or later. Previous purchases may be unavailable if they are no longer in the iTunes Store, App Store, or iBookstore. Downloading previous movie purchases requires iTunes 10.6, iOS 5 or later, or Apple TV software 4.3 or later. Not all previously purchased movies are available for downloading to your other devices.Download iTunes 10.6 free.
5. Not all purchased movies are available in 1080p HD.
That is for iPad there is no product specific iTunes page!
6. App Store
Apple Answers the FCC’s Questions [Apple, Aug 21, 2009]
We are pleased to respond to the Wireless Telecommunications Bureau’s inquiry dated July 31, 2009, requesting information regarding Apple’s App Store and its application approval process. In order to give the Bureau some context for our responses, we begin with some background information about the iPhone and the App Store.
Apple’s goal is to provide our customers with the best possible user experience. We have been able to do this by designing the hardware and software in our products to work together seamlessly. The iPhone is a great example of this. It has established a new standard for what a mobile device can be—an integrated device with a phone, a full web browser, HTML email, an iPod, and more, all delivered with Apple’s revolutionary multi-touch user interface.
Apple then introduced something altogether new—the App Store—to give consumers additional functionality and benefits from the iPhone’s revolutionary technology. The App Store has been more successful than anyone could have ever imagined. Today, just over a year since opening, the App Store offers over 65,000 iPhone applications, and customers have downloaded over 1.5 billion applications.
The App Store provides a frictionless distribution network that levels the playing field for individual and large developers of mobile applications. We provide every developer with the same software that we use to create our own iPhone applications. The App Store offers an innovative business model that allows developers to set their own price and keep more (far more in most cases) of the revenue than traditional business models. In little more than a year, we have raised the bar for consumers’ rich mobile experience beyond what we or anyone else ever imagined in both scale and quality. Apple’s innovation has also fostered competition as other companies (e.g., Nokia, Microsoft, RIM, Palm and Verizon) seek to develop their own mobile platforms and launch their own application stores.
Apple works with network providers around the world so that iPhone users have access to a cellular network. In the United States, we struck a groundbreaking deal with AT&T in 2006 that gives Apple the freedom to decide which software to make available for the iPhone. This was an industry first.
We created an approval process that reviews every application submitted to Apple for the App Store in order to protect consumer privacy, safeguard children from inappropriate content, and avoid applications that degrade the core experience of the iPhone. Some types of content such as pornography are rejected outright from the App Store, while others such as graphic combat scenes in action games may be approved but with an appropriate age rating. Most rejections are based on bugs found in the applications. When there is an issue, we try to provide the developer with helpful feedback so they can modify the application in order for us to approve it. 95% of applications are approved within 14 days of their submission.
We’re covering new ground and doing things that had never been done before. Many of the issues we face are difficult and new, and while we may make occasional mistakes, we try to learn from them and continually improve.
<then answers to the specific questions>
… Question 5. What other applications have been rejected for use on the iPhone and for what reasons? Is there a list of prohibited applications or of categories of applications that is provided to potential vendors/developers?
If so, is this posted on the iTunes website or otherwise disclosed to consumers?In a little more than a year, the App Store has grown to become the world’s largest wireless applications store, with over 65,000 applications. We’ve rejected applications for a variety of reasons. Most rejections are based on the application containing quality issues or software bugs, while other rejections involve protecting consumer privacy, safeguarding children from inappropriate content, and avoiding applications that degrade the core experience of the iPhone. Given the volume and variety of technical issues, most of the review process is consumed with quality issues and software bugs, and providing feedback to developers so they can fix applications. Applications that are fixed and resubmitted are approved.
The following is a list of representative applications that have been rejected as originally submitted and their current status:
- Twittelator, by Stone Design Corp., was initially rejected because it crashed during loading, but the developer subsequently fixed the application and it has been approved;
- iLoveWiFi!, by iCloseBy LLC, was rejected because it used undocumented application protocols (it has not been resubmitted as of the date of this letter);
- SlingPlayer Mobile, by Sling Media, was initially rejected because redirecting a TV signal to an iPhone using AT&T’s cellular network is prohibited by AT&T’s customer Terms of Service, but the developer subsequently fixed the application to use WiFi only and it has been approved; and
- Lingerie Fantasy Video (Lite), by On The Go Girls, LLC, was initially rejected because it displayed nudity and explicit sexual content, but the developer subsequently fixed the application and it has been approved with the use of a 17+ age rating.
Apple provides explicit language in its agreement with iPhone developers regarding prohibited categories of applications, for example:
- “Applications may be rejected if they contain content or materials of any kind (text, graphics, images, photographs, sounds, etc.) that in Apple’s reasonable judgment may be found objectionable, for example, materials that may be considered obscene, pornographic, or defamatory; and
- Applications must not contain any malware, malicious or harmful code, program, or other internal component (e.g. computer viruses, trojan horses, ‘backdoors’) which could damage, destroy, or adversely affect other software, firmware, hardware, data, systems, services, or networks.”
And we also provide a reference library that can be accessed by members of the iPhone Developer Program that lists helpful information such as Best Practices and How To Get Started.
Question 6. What are the standards for considering and approving iPhone applications? What is the approval process for such applications (timing, reasons for rejection, appeal process, etc.)? What is the percentage of applications that are rejected? What are the major reasons for rejecting an application?
As discussed in the response to Question 5, Apple provides guidelines to developers in our developer agreement as well as on its web site regarding prohibited categories of applications. These materials also contain numerous other provisions regarding technical and legal requirements that applications must comply with, and Apple uses these standards in considering whether or not to approve applications.
Apple developed a comprehensive review process that looks at every iPhone application that is submitted to Apple. Applications and marketing text are submitted through a web interface. Submitted applications undergo a rigorous review process that tests for vulnerabilities such as software bugs, instability on the iPhone platform, and the use of unauthorized protocols. Applications are also reviewed to try to prevent privacy issues, safeguard children from exposure to inappropriate content, and avoid applications that degrade the core experience of the iPhone. There are more than 40 full-time trained reviewers, and at least two different reviewers study each application so that the review process is applied uniformly. Apple also established an App Store executive review board that determines procedures and sets policy for the review process, as well as reviews applications that are escalated to the board because they raise new or complex issues. The review board meets weekly and is comprised of senior management with responsibilities for the App Store. 95% of applications are approved within 14 days of being submitted.
If we find that an application has a problem, for example, a software bug that crashes the application, we send the developer a note describing the reason why the application will not be approved as submitted. In many cases we are able to provide specific guidance about how the developer can fix the application. We also let them know they can contact the app review team or technical support, or they can write to us for further guidance.
Apple generally spends most of the review period making sure that the applications function properly, and working with developers to fix quality issues and software bugs in applications. We receive about 8,500 new applications and updates every week, and roughly 20% of them are not approved as originally submitted. In little more than a year, we have reviewed more than 250,000 applications and updates.
See also: Apple – iTunes – iTunes Store – Charts [Apple microsite, Sept 1, 2005]
iTunes Store Charts
Choose and Album Chart Choose a Song Chart Top 10 Albums
Top 10 Alternative Albums
Top 10 Blues Albums
Top 10 Classical Albums
Top 10 Children’s Albums
Top 10 Comedy Albums
Top 10 Country Albums
Top 10 Dance Albums
Top 10 Electronic Albums
Top 10 Folk Albums
Top 10 Hip-Hop Albums
Top 10 Jazz Albums
Top 10 New Age Albums
[Top 10 Opera Albums]
Top 10 Pop Albums
Top 10 Reggae Albums
Top 10 Rock Albums
Top 10 R&B/Soul Albums
Top 10 Soundtrack Albums
Top 10 Vocal Albums
Top 10 World Albums
Top 10 Songs
Top 10 Alternative Songs
Top 10 Blues Songs
Top 10 Classical Songs
Top 10 Children’s Songs
Top 10 Comedy Songs
Top 10 Country Songs
Top 10 Dance Songs
Top 10 Electronic Songs
Top 10 Folk Songs
Top 10 Hip-Hop Songs
Top 10 Jazz Songs
Top 10 New Age Songs
Top 10 Pop Songs
Top 10 Reggae Songs
Top 10 Rock Songs
Top 10 R&B/Soul Songs
Top 10 Soundtrack Songs
Top 10 Vocal Songs
Top 10 World Songs
App Store Charts [Dec 27, 2008]
Choose an App Store Chart Top 10 Apps – Paid
Top 10 Apps – Free
Top 10 Apps – New
Top 10 Apps – Books
Top 10 Apps – Business
Top 10 Apps – Education
Top 10 Apps – Entertainment
Top 10 Apps – Finance
Top 10 Apps – Games
Top 10 Apps – Healthcare & Fitness
Top 10 Apps – Lifestyle
Top 10 Apps – Medical
Top 10 Apps – Music
Top 10 Apps – Navigation
Top 10 Apps – News
Top 10 Apps – Photography
Top 10 Apps – Productivity
Top 10 Apps – Reference
Top 10 Apps – Social Networking
Top 10 Apps – Sports
Top 10 Apps – Travel
Top 10 Apps – Utilities
Top 10 Apps – Weather
Audiobooks Charts [Dec 26, 2008]
TV Shows Charts
Podcasts Charts [Jan 25, 2007 for Health; July 4, 2009 for others]
Note that there is a separate microsite for Apple – Web apps – All Categories [Oct 10, 2007 – Dec 3, 2010] where there are only 5106 apps, and the most recent one is dated back to Dec 3, 2010. These apps are described as:
Apple – Web apps [Jan 15, 2008]
Part fun. Part function
Flick through movie time. Tap on a train route. Scroll thropugh sports scores. Web apps and Multi-Touch make it possible.
The Internet meets Multi-Touch
Web applications — or web apps — combine the power of the Internet with the simplicity of Multi-Touch technology, all on a 3.5-inch screen. iPhone and iPod touch let you easily flick through news on Digg, play Sudoku or Bejeweled with a finger tap, and quickly check movie times, train schedules, and favorite blogs.
One tap web apps.
When you find a web app you like, you can put it front and center on your Home screen. Just open the web app on your iPhone or iPod touch, tap the plus sign, and then tap “Add to Home screen.” A Web Clip will be added to your Home screen automatically for easy, one-tap access. You have up to nine Home screen pages for all your Web Clips and you can organize them however you like.
[Learn more about apps on iPhone] Apple – iPhone 4S – See apps and games from the App Store. [Apple product page, Oct 4, 2011]
Over 500,000 apps.
For work, play, and everything in between.
The apps that come with your iPhone are just the beginning. Browse the App Store to find hundreds of thousands more. The more apps you download, the more you realize there’s almost no limit to what your iPhone can do.
Learn more about the App Store
Apps by Apple
Create and send letterpress cards. Shoot and edit HD movies. Make presentations and spreadsheets.
Follow the market, pay your bills, and track everything from your time to your gas mileage.
Book that overdue vacation and find the best spots to see before you get there.
Sports & Fitness
Tone those muscles, drop those extra pounds, and get fit with the help of these apps.
Update your status, share photos and video, and let the world know what you’re up to.
Stay in the know as you tap into weather forecasts and breaking news from all over the planet.
Find great deals in your neighborhood, cook up the perfect dish, and control everything in your house with iPhone. Learn more
Soar through the air, take the checkered flag, and save the universe from aliens. It’s all in a day’s work.
Catch a good movie or shoot one of your own — these apps offer endless hours of satisfaction.
See the world. See the universe. And make it back in time to get your homework done. Learn more
Family & Kids
Read along together, complete puzzles, and make every night family night.
Discover new music, make your own, and turn iPhone into your mobile recording studio.
Top iPhone Apps Visit the App Store
Top Paid Apps Top Free Apps Top Grossing Apps 1. …
View all Paid Apps View all Free Apps View all Top Grossing Apps
[Learn more about the App Store] Apple – iPhone 4S – Find over 500,000 apps on the App Store. [Apple product page, Oct 3, 2011]
Every app you download from the App Store makes your iPhone do even more. And with hundreds of thousands of apps to choose from, we mean a whole lot more.
Browse, buy, and
even give apps.
Enter the App Store to shop for amazing apps in almost every category: games, lifestyle, social networking, and education, for starters. Many apps are even free. If you’re just browsing, the App Store makes it easy. You can see what’s new in Featured, check out the Top 25, and flick through a few screenshots. Find apps by doing a quick search, then download them from wherever you are.1 Or purchase apps to send as gifts to friends and family. Just use the same Apple ID on the App Store that you use to buy anything on iTunes. It’s that easy. And it’s always safe and secure.
Learn more about apps on iPhone
Your apps in iCloud.
When you buy and download apps from the App Store, you always have access to them, no matter which device you’re using. Because the App Store keeps them in the cloud. So if you bought an app on your iPhone, it can automatically download straight to your iPad over Wi-Fi or 3G and vice versa.2 And if you delete an app from your device, you can always download it again.
Stay up to date.
Developers are constantly improving their apps. When you visit the App Store, the Update icon shows you when an update is available for an app you have. With a tap, you can download the updates either one at a time or all at once. Then you’ll always have the latest versions.
With so many apps available, you need an easy way to find new ones to enjoy. That’s where Genius comes in. With just a tap, Genius gives you personalized recommendations for apps you might like based on apps you and others have downloaded. You can also read reviews from other app users and see their ratings, and even add your own.
iCloud keeps the stuff you use every day up to date on all your devices. Like all the amazing apps you download from the App Store. Learn more about iCloud
Camera HD Video Recording FaceTime Messages Reminders Phone Safari Music Videos Photos App Store iTunes Maps + Compass Game Center Calendar Contacts Find My
Apple – The new iPad– Explore a world of apps made just for iPad. [Apple product page, Dec 8, 2011]
An app made for iPad is an app like no other. That’s because apps for iPad are designed specifically to take advantage of all the technology built into iPad. And with over 225,000 apps to choose from, there’s no telling where the next tap will take you.
Apps by Apple
Incredible apps designed by the people who designed iPad. Learn more
Manage projects, tap into industry news, and get real-time market quotes. Learn more
Stay productive with powerful apps that get the job done in style. Learn more
From learning math to understanding science, iPad apps offer fun, interactive ways to learn. Learn more
Discover great movies and TV shows or create art with a few swipes of your finger. Learn more
Turn iPad into a mobile recording studio or rock any party, anytime. Learn more
Rule the skies, explore worlds unknown, or kick back and solve a puzzle. Learn more
Update your status, share photos and video, and let the world know what you’re up to. Learn more
Interact with breaking news from around the world through iPad apps that keep you current. Learn more
Improve your game, track your team, and discover new ways to stay fit. Learn more
Find the best deals wherever you’re going. And know the best sights to see before you arrive. Learn more
Enjoy your favorite subscriptions — newspapers, magazines, and more — like never before. Learn more
Get interior design tips, find new recipes, and get even more out of your favorite hobbies. Learn more
Top iPad Apps Visit the App Store
Top Paid Apps Top Free Apps Top Grossing Apps 1. …
View all Paid Apps View all Free Apps View all Top Grossing Apps
Apple – iPod touch – See games and apps from the App Store. [Apple product page, Oct 4, 2011]
The App Store features over 500,000 apps, many of which are free. That includes over 100,000 game and entertainment titles — more than any other platform. And you can go head-to-head with millions of other gamers on Game Center. No wonder iPod touch is the world’s most popular portable game player. You’ll wish you had more fingers.
Apps by Apple
Get one-tap access to podcasts. Create and send letterpress cards. Shoot and edit HD movies. And more. Learn more
Make your own radio station, create your own beats, and turn iPod touch into your personal recording studio. Learn more
Games for Gamers
Explore fantasy worlds, battle fierce competition, or take your team to the championship game. Learn more
Kick back and relax as you slice through fruit, launch an airborne attack, and rule your own island. Learn more
Test your skills by safely landing aircraft, maneuvering through enemy territory, and outsmarting the opposition. Learn more
Conduct secret missions, fight your way to the finish line, or take to the skies for intense aerial combat. Learn more
Run the table, rule the ring, and control the court. You were born to perform with these games. Learn more
Buy and sell on the go, discover new recipes, and find the best deals on everything from fashion to travel. Learn more
See what movies are playing tonight, watch trailers, read reviews, or stay home and make your own mini-movies. Learn more
Update your status, share photos and video, and let the world know what you’re up to. Learn more
Organize homework assignments, learn a new language, and study up with iPod touch. Learn more
Family & Kids
Read along together, complete puzzles, and make every night family night. Learn more
Top iPod touch Apps Visit the App Store
Top Games Top Paid Apps Top Free Apps 1. …
View all Games View all Paid Apps View all Free Apps
Apple – Business – App Store Volume Purchasing for Business [June 12, 2012]
Unleash the App Store to your entire workforce.
Whether you’re providing apps to ten employees or ten thousand, the Volume Purchase Program makes it simple to find, buy, and distribute the apps your business needs.
The Volume Purchase Program also provides a way to get custom B2B apps built by third-party developers to meet the unique needs of your business.
The Volume Purchase Program is currently available in the US only.
Coming Soon. The App Store Volume Purchase Program is expanding to the following countries: Australia, Canada, France, Germany, Italy, Japan, New Zealand, Spain, and United Kingdom.
Buy apps in volume.
Streamline your purchasing process and put more power and productivity in the hands of your workforce. Every paid app in the App Store is available for businesses to buy in volume through the program website. Simply search for the apps you need, enter the quantity you want to buy, and complete the transaction with your corporate credit card. Apps are available for purchase at the same price listed in the App Store.
Get custom B2B apps.
Custom B2B apps are built just for you by third-party developers and business partners to address a specific business process, integrate with a unique back-office environment, or deliver a custom interface for your users. Using the Volume Purchase Program you can securely and privately download custom B2B apps that make your business even more effective. Pricing for custom B2B apps is set by the developer and can be either free or paid.
If you are a developer who is enrolled in the iOS Developer program you can create custom B2B apps for customers who are enrolled in the Volume Purchase Program.
Easily distribute apps.
The Volume Purchase Program makes it easy to distribute apps within your organization. When you buy apps in volume or custom B2B apps, you will receive redemption codes for each app. You can control who gets the apps by providing these codes to users via email or an internal website. You can also use third-party Mobile Device Management (MDM) solutions or Apple Configurator for OS X to centrally manage redemption codes.
Open for business.
Any business in the US can participate in the Volume Purchasing Program. To start buying apps in volume for your business, you’ll need to enroll and create a volume purchasing account with Apple. Enrolling in the program is simple. Here’s what you’ll need:
- Basic contact information to verify your business
- Dun & Bradstreet number (D-U-N-S)
- Corporate credit card or PCard to purchase apps
iPad and iPhone Apps for Business
Getting Started Guide
Choose great apps to purchase for your employees and help them get started with this self-paced discovery guide of business apps from the App Store. Download the Guide
Apple – Education – Volume Purchase Program [Jan 19, 2012]
The Volume Purchase Program allows educational institutions to purchase iOS apps and books in volume and distribute them to students, teachers, administrators, and employees.*
How to Enroll
It’s quick and easy to set up your organization for volume purchasing. First, designate yourself or someone else in your organization as the Program Manager. Then you can sign up Program Facilitators, which will allow them to make purchases.
If your institution is tax exempt, you will not be charged sales tax. The program also allows app developers to offer special pricing for purchases of 20 apps or more.
*Subject to Apple Volume Purchase Program terms and conditions. Any K-12 institution or district or any accredited, degree-granting higher education institution in the U.S. is eligible to participate. Note: Apple reserves the right to determine eligibility. Campus bookstores and other retail institutions are not eligible. Volume Vouchers cannot be resold.
Coming Soon. The Apple Volume Purchase Program is expanding to the following countries: Australia, Canada, France, Germany, Italy, Japan, New Zealand, Spain, and United Kingdom.
How It Works
Buy apps and books
Through the Volume Purchase Program Education Store, your institution’s Program Facilitators can purchase apps and books in volume, using a credit card, PCard, or Apple Volume Vouchers.
Get and distribute codes
After making a purchase, Program Facilitators receive a unique code for each app or book. Codes can then be distributed to students, teachers, administrators, or anyone at the institution who will be using the apps or books.
Once they have their codes, end users go to the iTunes Store to redeem them. They just enter the code and download the apps or books to their devices.
Faculty, staff, and students or their parents can get special pricing on Mac computers and more. And institutions can get in touch with an Apple representative to learn more about volume purchasing.
How to buy