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April 17, 2014

Scenario Analysis of a Successful Modular Phone Project

MykolaGolovkoAnalyst Insight by Mykola Golovko - Senior Consumer Electronics Analyst

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On 15 April, Google Inc held its first of three planned developer conferences for Project Ara developers. The project is still in its early stages, with some of the most important issues set to be addressed in autumn 2014. The project timeline puts the phone’s launch in January 2015, but with things like regulatory and carrier certification, manufacturing and supply chain management, after market support, and OS support for a modular design still in the future, it is impossible to make any forecasts about the project’s commercial success and unit sales with any degree of certainty. What is clear is that any increase in ownership of modular phones will have an adverse effect on aggregate smartphone demand

 

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April 4, 2014

Top 3 Digital Consumption Trends for 2014: Subscriptions, Showrooming and Social Saturation

Pavel_MarceuxAnalyst Insight by Pavel Marceux - Technology, Communications and Media Analyst

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Euromonitor International has identified the top three digital consumption trends for 2014. Internet users will consume more video-based media online as offerings expand and enter the mainstream; consumer trends such as showrooming and sofa shopping will see e-commerce activities migrate to smartphones; and the usage of new social media and rapidly expanding mobile messaging services will appeal to younger consumers. The continued expansion of home broadband services, especially into rural areas still underserved by infrastructure, and the establishment of 4G LTE as a mainstream mobile data service will increase speeds for consumers and thereby facilitate greater consumption of digital goods and services in general in 2014.

Global Mobile Internet Subscriptions and Internet Retailing: 2008-2013

Source: Euromonitor International from trade sources/national statistics

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March 31, 2014

Smartphones Running on Windows Set to Enjoy a Bumper Year in India

Analyst Weeteck_loo Insight by Wee Tek Loo - Head of Consumer Electronics

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At the recently concluded Mobile World Congress (MWC) 2014, Microsoft Corp announced nine new Windows Phone partners, including Karbonn Mobile India Pvt Ltd and LAVA International Ltd from India. One month on from MWC 2014, these manufacturers have finally announced their plans for smartphones running on the Windows Phone operating system (OS) to be sold in India. 

Feature Phones Rule in India

With only 3% of the 951 million mobile phone subscriptions offering internet capability in 2013, feature phones continue to be the category’s dominant volume driver in the country. India also has one of the lowest annual gross incomes and hence take-up of smartphones.

Annual Gross Income 2013

Source: Euromonitor International
Note: US$ fixed 2013 rate

While the prices of smartphones have fallen dramatically, the humble feature phone continues to be considerably cheaper. Touch screens, larger screen sizes, an internal memory, licensing costs for 3G capabilities and internet capability all contribute to higher smartphone prices.

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March 25, 2014

The Top Three Underperforming Telecommunications Markets

 

The top three economies in the world that are underperforming in their telecommunications potential are India, Pakistan and Iran. India has over 1 billion mobile telephone subscriptions but only 3 percent of those subscriptions include mobile internet. Growing poverty is a problem in the country, keeping many consumers from purchasing mobile internet plans. Pakistan has a large population but suffers from cultural and religious opposition to certain technologies. Finally, Iran, which boasts an average population age of 28 and a growing economy, has a very small smartphone market hampered by various sanctions against the country.

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March 11, 2014

Investors Look to Other Countries as Wages Increase in China

 Capture With Ruta Sukyte, Industrial Research Analyst

China’s wages are increasing and the world is looking for another country able to manufacture goods at lower costs. India, Indonesia, the Philippines and Vietnam could all potentially take away manufacturing jobs from China. Investors are not only looking for countries offering low wages but also good infrastructure, and all four countries meet those requirements. Vietnam, for example, is already producing the bulk of Samsung’s electronics. India already leads the outsourcing market globally and is the second most populated country in the world. In the future, China will likely continue to lose ground in manufacturing outsourcing to other developing countries.

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March 1, 2014

Telecommunications Companies Catering to the Growing Older Population

 

As the global population grows older, telecommunications companies need to cater to consumers aged over 65 years. Traditionally, these consumers have a harder time with advancing technology and are less likely to use mobile phones, tablets or computers in their everyday lives. Skype is a prime example of a company targeting the older generation. Its webcam-enabled internet phone service is marketed as a way for older consumers to communicate with their loved ones over video. Telecoms need to focus on education or boost the appeal through travel and shopping websites. Ideally, the more an older consumer uses technology, even if just for web chatting or shopping, the more comfortable they will be with everyday use.

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February 28, 2014

Wearable Electronics to sell 250 Million Units by 2018

Weeteck_looAnalyst Insight by Wee Teck Loo - Head of Consumer Electronics

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Wearable electronics, such as Google Glass and smart watches, help manufacturers explore an untapped personal electronics market. Although not all wearable electronics have caught on with consumers, devices centered on healthy living and fitness are expected to grow the most. The category as a whole is expected to expand rapidly in 2014 in Western Europe, globally by 2016 and will sell around 250 million units by 2018. 

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February 27, 2014

As Cars Increasingly Become Smartphones on Wheels, Their Makers Need to Support Both Android and iOS

Neil-KingAnalyst Insight by Neil King - Automotive Analyst

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AppConext Auto recently released an infographic, “Wheels in Motion”, which states that “according to a survey by Accenture, in-vehicle technology was overwhelmingly named as the most important factor in car purchasing decisions for US-based buyers”. No wonder then that cars are increasingly becoming “smartphones on wheels”, but the question still remains as to which operating system the connected vehicle should feature. I consider this conundrum with the aid of Euromonitor International’s data on smartphones by operating system.

Ford surprised the world as recently as February 2012 by launching its new small MPV, the B-Max, at the Mobile World Congress in Barcelona instead of at the Geneva Motor Show, which opened just a week later. Less than two years on and CES2014, the Consumer Electronics Show held in Las Vegas in January, played host to carmakers such as Audi, BMW, Ford, Kia and Mercedes, unveiling new products and/or technology. The announcement at the show that especially piqued my interest was the creation of the Open Auto Alliance, which a Cnet.com article on 6 January referred to as “a partnership with carmakers General Motors, Audi, Honda and Hyundai, as well as with chipmaker Nvidia, to bring the Android operating system to vehicles in 2014”.

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February 23, 2014

The Top Three Digital Consumption Trends in 2014

Pavel_MarceuxWith Pavel Marceux - Technology, Communications and Media Contributing Analyst

View Pavel Marceux's profile on LinkedIn

Digital consumption, the use of products or services via the Internet by consumers, is on a constant rise as more and more consumers gain Internet access. Consumption of entertainment based services will be the number one trend in 2014, with companies such as Netflix and Apple gaining massive amounts of subscribers and expand into emerging markets. Purchasing consumer appliances via the internet is the second trend, which has been steadily gaining ground since the beginning of ecommerce. The ease of delivery makes buying appliances online attractive to consumers. The third trend is social media migration which will see more consumers, especially younger consumers, moving from well-known services such as Facebook to lesser known social media providers.

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February 21, 2014

Facebook and WhatsApp: Why the Expensive Purchase Makes Sense

Pavel_MarceuxAnalyst Insight by Pavel Marceux - Technology, Communications and Media Contributing Analyst

View Pavel Marceux's profile on LinkedIn

Despite the overwhelming price tag of US$19.0 billion, the agreed acquisition of mobile messaging service WhatsApp – confirmed this week by social media giant Facebook – is a logical step in the right direction. The move has already been criticised for being too expensive, too forceful and too desperate, with many seeing it as a panicky reaction by the world’s dominant social network to its rapidly stagnating brand. However, the WhatsApp purchase is essentially the ticket price for entry into a surging mobile market via a platform that has global, cross-cultural appeal and which has registered rapid uptake in developed economies as well as among emerging market consumers. With mobile telephony the most highly penetrated digital segment globally, Facebook has guaranteed itself a presence among mobile consumers.

Global Mobile Telephone Subscriptions: 2008-2030

  Mobile Telephony

Source: Euromonitor International from International Telecommunications Union/national statistics

Note: Figures over 2014-2030 are forecast

Continue reading "Facebook and WhatsApp: Why the Expensive Purchase Makes Sense" »

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Recent Posts

Scenario Analysis of a Successful Modular Phone Project

Top 3 Digital Consumption Trends for 2014: Subscriptions, Showrooming and Social Saturation

Smartphones Running on Windows Set to Enjoy a Bumper Year in India

The Top Three Underperforming Telecommunications Markets

Investors Look to Other Countries as Wages Increase in China

Telecommunications Companies Catering to the Growing Older Population

Wearable Electronics to sell 250 Million Units by 2018

As Cars Increasingly Become Smartphones on Wheels, Their Makers Need to Support Both Android and iOS

The Top Three Digital Consumption Trends in 2014

Facebook and WhatsApp: Why the Expensive Purchase Makes Sense