Thursday, September 13, 2012

Tablets are "Transforming" Content Consumption, Study Finds

Tablets are transforming the way content is consumed and challenging the usage patterns for personal computers, according to J.D. Power and Associates, confirms. 

U.S. tablet owners spend 7.5 hours per week browsing the Internet, watching videos, listening to music, and reading books on their device, compared with spending 9.6 hours per week on a personal computer for the same activities.

Tablet owners who also have a smartphone spend 40 percent more time browsing the Internet on their tablet than on their smartphone. Similarly, they spend 56 percent more time using gaming apps on their tablet than on their smartphone.

All of that suggests the reasons why it would be reasonable to expect a decline in PC sales over the coming years. PCs will be used for work tasks and content creation. Tablets and smart phones will increasingly be used for content consumption. 

Smart Phone Sales Have Been a "Replacement" Market since Before 2010

Smart phone shipments have largely been a replacement market since at least 2010, when roughly two thirds of smart phones were shipped to users who were replacing a smart phone, rather than users who were getting a smart phone for the first time.

In facgt, NPD DisplaySearch has downgraded its 2012 forecast of new purchases from a range of 220 million to 230 million to the new estimate of 177 million. Those figures represent devices sold to new smart phone buyers. 

The volume of replacement phones sold to users who already have smart phones is expected to increase significantly, reaching 567 million in 2012, and nearly double that number by 2016, according to Hiroshi Hayase, NPD DisplaySearch VP.  
Smartphone Shipment Forecast


Google Announces Kansas City 1-Gbps Construction Schedule

The Google Fiber Blog now confirms that 180 fiberhoods throughout Kansas City will be wired with ultra high-speed Google Fiber, and also says that includes residents in 89 percent of Kansas City, Kan. and central Kansas City, Mo. fiberhoods.

The first fiberhood to receive Fiber will be Hanover Heights in Kansas City, Kan. Hanover Heights actually qualified within two hours of availability and presently has the highest percentage of homes within a neighborhood that are pre-registered to get Google Fiber. 

Google also now has a rough construction schedule


Google Announces Kansas City 1-Gbps Construction Schedule

The Google Fiber Blog now confirms that 180 fiberhoods throughout Kansas City will be wired with ultra high-speed Google Fiber, and also says that includes residents in 89 percent of Kansas City, Kan. and central Kansas City, Mo. fiberhoods.

The first fiberhood to receive Fiber will be Hanover Heights in Kansas City, Kan. Hanover Heights actually qualified within two hours of availability and presently has the highest percentage of homes within a neighborhood that are pre-registered to get Google Fiber. 

Google also now has a rough construction schedule


Isis Delays Launch, Again

Isis, the mobile payments venture owned by AT&T, Verizon and T-Mobile USA, is delaying the launch of its mobile payments service for the second time this year, an Isis executive says. No reason was given for the delay. 

Some might speculate that Apple's decision not to support near field communications in the iPhone 5 is a factor for Isis. 

But Apple's "go slow" approach to mobile payments is not unusual. Apple wasn't the first firm to make a PC, wasn't the first to make an MP3 player or the first tablet or a smart phone. It still isn't immediately clear how mobile payments creates a huge new device market for Apple, and that tends to be the way Apple approaches new markets. 

Delays aren't unusual for large proposed mobile payment services. Telcos in the Netherlands have delayed their mobile payments launch as well. There also have been delays in  Australia, the United Kingdom and Singapore

There are plenty of other reasons for delay. Mobile payment is a complex ecosystem with uncertain value for many key participants in the ecosystem and lots of confusion about which consortia might emerge as clear winners. That Apple iPhones don't yet support NFC is but one of the problems. 

"Closed loop" systems that might work only at Home Depot or Starbucks, and do not require use of NFC or other relatively rare features, are logistically easier to launch, precisely because the universe of merchants, terminals, apps, payment processors, devices and users is contained. 





Where are Untapped Opportunities in E-Commerce?

James Slavet, of Greylock Partners, thinks there remain a few areas of the e-commerce space that remain undeveloped, including marketplaces, online to offline commerce (meaning transactions that take place in the physical world), and services that are “mobile-first” ways to find and book things like hotels, taxis, or send gifts and cards.

Of those three general areas of interest, mobile is directly involved with two of three, which explains the growing interest in mobile commerce, as distinct from simple mobile payment. 

Perhaps because there now seem to be many viable contestants in the mobile wallet and mobile payment areas, entrepreneurs seem to be shifting more in the direction of ways such mobile-first operations can change retail operating practices, the back office and supply chain, for example, or bridge the differences between offline and online commerce.

Amazon's new warehouse strategy, for example, which sites many more warehouses in many urban areas, could shift distribution in a powerful way, allowing one-day delivery in many cases, and even same-day in some instances. That would dramatically improve Amazon's competitive position, compared to place-based local retailers. Mobile can play a part, but more as the ordering front end. 

"Payment" and "wallet" are less strategic, in that view. 

Where are Untapped Opportunities in E-Commerce?

James Slavet, of Greylock Partners, thinks there remain a few areas of the e-commerce space that remain undeveloped, including marketplaces, online to offline commerce (meaning transactions that take place in the physical world), and services that are “mobile-first” ways to find and book things like hotels, taxis, or send gifts and cards.

Of those three general areas of interest, mobile is directly involved with two of three, which explains the growing interest in mobile commerce, as distinct from simple mobile payment. 

Perhaps because there now seem to be many viable contestants in the mobile wallet and mobile payment areas, entrepreneurs seem to be shifting more in the direction of ways such mobile-first operations can change retail operating practices, the back office and supply chain, for example, or bridge the differences between offline and online commerce.

Amazon's new warehouse strategy, for example, which sites many more warehouses in many urban areas, could shift distribution in a powerful way, allowing one-day delivery in many cases, and even same-day in some instances. That would dramatically improve Amazon's competitive position, compared to place-based local retailers. Mobile can play a part, but more as the ordering front end. 

"Payment" and "wallet" are less strategic, in that view. 

Zoom Wants to Become a "Digital Twin Equipped With Your Institutional Knowledge"

Perplexity and OpenAI hope to use artificial intelligence to challenge Google for search leadership. So Zoom says it will use AI to challen...