If you want some idea of what the iPad means for Apple, not to mention the broader PC market, that statistic tells you what you need to know.
Tuesday, January 18, 2011
Apple’s iPad Business Now Bigger Than MacBook Business
The iPad now generates more gross revenue for Apple than Apple's MacBooks, MacBook Pros, and MacBook Airs. And it’s within spitting distance of surpassing Apple’s entire Mac business in terms of revenue.
Gary Kim has been a digital infra analyst and journalist for more than 30 years, covering the business impact of technology, pre- and post-internet. He sees a similar evolution coming with AI. General-purpose technologies do not come along very often, but when they do, they change life, economies and industries.
Video to Account for More than 60% of Total Mobile Network Traffic in 2011
Video became the dominant form of mobile data traffic in 2010, accounting for more than 40 percent of the total volume in wireless networks worldwide, according to Bytemobile. With the rise of full-length and studio-quality videos and live streaming of multimedia content on mobile devices, as well as the emergence of two-way video communications, Bytemobile expects mobile data traffic to spike to an all-time high in 2011, when video-based content will account for over 60 percent of network traffic.
Personal video communications will dominate wireless network capacity, such that 10 percent of subscribers consume 90 percent of total network traffic.
Personal video communications will dominate wireless network capacity, such that 10 percent of subscribers consume 90 percent of total network traffic.
Gary Kim has been a digital infra analyst and journalist for more than 30 years, covering the business impact of technology, pre- and post-internet. He sees a similar evolution coming with AI. General-purpose technologies do not come along very often, but when they do, they change life, economies and industries.
iPads Got 7% of Global PC Market Sales in Fourth Quarter
Apple reports selling 7.3 million iPads in the fourth quarter of 2010. Since the PC market represents something like 100 million units a quarter, one might infer that the iPad in the fourth quarter represented perhaps seven percent of total PC sales.
Gary Kim has been a digital infra analyst and journalist for more than 30 years, covering the business impact of technology, pre- and post-internet. He sees a similar evolution coming with AI. General-purpose technologies do not come along very often, but when they do, they change life, economies and industries.
Mobile Service Revenue in 2014: $870 Billion or More
$1 trillion and accounting for more than half of all global telecom service provider revenue. See http://ipcarrier.blogspot.com/2010/01/how-will-global-telecom-revenue-sources.html
Mobile broadband and mobile messaging service revenues are growing rapidly and will help operators offset declining voice revenues, says Stephane Teral, principal analyst.
but voice service isn’t going away anytime soon; in fact, voice will still account for almost 60% of the mobile pie in 2014. Operators need to continue selling smarter phones and upselling data plans to keep pace with falling voice usage,” says Stéphane Téral, Infonetics Research’s principal analyst for mobile and FMC infrastructure.
Gary Kim has been a digital infra analyst and journalist for more than 30 years, covering the business impact of technology, pre- and post-internet. He sees a similar evolution coming with AI. General-purpose technologies do not come along very often, but when they do, they change life, economies and industries.
Modified Pay Wall Seems to Work, Study Finds
In a study with potential implications for many content-related businesses, a number of newspapers apparently found a hybrid "pay wall" model limited traffic losses (and therefore ad revenue losses) while still creating a differentiated "premium" service offering full access.
Journalism Online said monthly unique visits to the Web sites included in its study fell zero to seven percent, while page views fell zero to 20 percent. No publishers reported a decline in advertising revenue.
Unlike a strict pay wall, which requires a subscription to view almost all editorial content, a model like the one Journalism Online employed does not choke off huge amounts of Web traffic.
“If you set this meter conservatively, which we urge people to do, it’s a non event for 85, 90, 95 percent of the people who come to your Web site,” Mr. Brill said.
The newspapers in the test allowed a small number of "free" article reads each month, while also requiring a subscription for full access.
Journalism Online said monthly unique visits to the Web sites included in its study fell zero to seven percent, while page views fell zero to 20 percent. No publishers reported a decline in advertising revenue.
Unlike a strict pay wall, which requires a subscription to view almost all editorial content, a model like the one Journalism Online employed does not choke off huge amounts of Web traffic.
“If you set this meter conservatively, which we urge people to do, it’s a non event for 85, 90, 95 percent of the people who come to your Web site,” Mr. Brill said.
Gary Kim has been a digital infra analyst and journalist for more than 30 years, covering the business impact of technology, pre- and post-internet. He sees a similar evolution coming with AI. General-purpose technologies do not come along very often, but when they do, they change life, economies and industries.
Sprint Adds $10/Month Smartphone Device Fee
Sprint will increase its postpaid service plan rates by applying a $10 per month "premium data" add-on charge to activations of smartphones beginning Jan. 30, 2011. Existing Sprint smartphone customers are not affected unless they upgrade to or activate another smartphone.
Sprint had earlier levied the fee for the HTC EVO, a move some called a tax for using the fourth-generation network, something Sprint would not have agreed was the most accurate way to describe the plan. Instead, Sprint positioned the charge as specific to the Sprint 4G EVO. "This is specific to the device," said
It's not related to whether you are using 3G or 4G. "It is required if you have the phone," said John Taylor, who works with Sprint. See http://tech.johntaylor.co/more-detail-on-the-sprint-evo-4g-10month-prem.
Of course, in addition to the argument that the charge was specific to the EVO, the new logic now extends to all smartphones, in large part because smartphone users consume more data.
It's not related to whether you are using 3G or 4G. "It is required if you have the phone," said John Taylor, who works with Sprint. See http://tech.johntaylor.co/more-detail-on-the-sprint-evo-4g-10month-prem.
Of course, in addition to the argument that the charge was specific to the EVO, the new logic now extends to all smartphones, in large part because smartphone users consume more data.
You might wonder why Sprint did not simply increase its data plan rates. There are a couple of logical reasons. The surcharge allows the nominal data plan rates to remain unchanged, while still generating $10 per plan more revenue.
One might argue that the way the increase is billed also maintains a "simple pricing" position Sprint believes is important. Many will argue a simple $10 a month, across the board increase in mobile plans also is "simple," though.
The bottom line is that Sprint believes it must raise prices to generate the cash needed to continue funding its mobile broadband network's expansion. You can agree or disagree with that point of view, but all observers note that bandwidth demand is outstripping revenue, for virtually every mobile service provider.
Long term, especially if the mainstay revenue sources are declining, that is incompatible with continued survival, much less continuous investment in more network capability.
Gary Kim has been a digital infra analyst and journalist for more than 30 years, covering the business impact of technology, pre- and post-internet. He sees a similar evolution coming with AI. General-purpose technologies do not come along very often, but when they do, they change life, economies and industries.
Smartphone Data Consumption Climbs 100% to 350%
(Click image for larger view)
At the same time, smartphone ownership has roughly doubled in the same time period. So you are looking at a four- to seven-fold increase is data usage.
As a general rule, one could rightly conclude that truly "unlimited" service plans cannot be offered at low prices in such an environment. There is of course an obvious model for users who require such plans: higher prices more akin to business plans.
Gary Kim has been a digital infra analyst and journalist for more than 30 years, covering the business impact of technology, pre- and post-internet. He sees a similar evolution coming with AI. General-purpose technologies do not come along very often, but when they do, they change life, economies and industries.
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