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03/30/2015 - 04/01/2015 Amelia Island FL

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Worldwide Tablet Shipments Experience First Year-Over-Year Decline in 4th Quarter

IDC PMS4colorversion 1 Worldwide Tablet Shipments Experience First Year Over Year Decline in 4th Quarter

FRAMINGHAM, Mass., February 2, 2015 – Worldwide tablet shipments recorded a year-over-year decline for the first time since the market’s inception in 2010. Overall shipments for tablets and 2-in-1 devices reached 76.1 million in the fourth quarter of 2014 (4Q14) for -3.2% growth, according to preliminary data from the International Data Corporation (IDC) Worldwide Quarterly Tablet Tracker. Although the fourth quarter witnessed a decline in the global market, shipments for the full year 2014 increased 4.4%, totaling 229.6 million units.

“The tablet market is still very top heavy in the sense that it relies mostly on Apple and Samsung to carry the market forward each year,” said Jitesh Ubrani, Senior Research Analyst, Worldwide Quarterly Tablet Tracker. “Although Apple expanded its iPad lineup by keeping around older models and offering a lower entry price point of $249, it still wasn’t enough to spur iPad sales given the excitement around the launch of the new iPhones. Meanwhile, Samsung’s struggles continued as low-cost vendors are quickly proving that mid- to high-priced Android tablets simply aren’t cut out for today’s tablet market.”

Apple’s lead over other vendors has yet to be truly challenged as it shipped 21.4 million tablets, accounting for over a quarter of the market with 28.1% volume share. Despite Samsung’s woes, it managed to hold on to the second place with 11 million units shipped. Lenovo (4.8%), ASUS (4%), and Amazon (2.3%) rounded out the top 5 although only Lenovo managed to grow annually when compared to Q4 2013. Lenovo maintained its tight grip on the Asia/Pacific market thanks to its massive scale in the PC business and the success of its low-cost tablet offerings.

“Despite an apparent slow-down of the market, we maintain our forecast about tablet growth in 2015,” said Jean Philippe Bouchard, Research Director, Tablets. “Microsoft’s new OS, a general shift towards larger screen form factor and productivity focused solutions, and technology innovations such as gesture interface that could be introduced in tablets will help the market maintain positive growth in 2015.”

 

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Top 10 Smart Connected Device Predictions For China

IDC PMS4colorversion  Top 10 Smart Connected Device Predictions For China

Beijing, February 2, 2015 — The shipment of China’s smart connected devices (“SCDs”, including PCs, tablets and smartphones) in 2014 was around 510 million units, a year-on-year (YoY) increase of 16.2%. Wherein, the shipment of PCs was 61.02 million units, down by 5.5% YoY; the shipment of tablets was 27.86 million units, up by 7.5% YoY; the shipment of smartphones was 420 million units, up by 20.9% YoY. IDC predicts that in 2015, the shipment of China’s SCDs will reach 540 million units, and the YoY growth will slow down.

According to Nick Mu, Senior Analyst of IDC China, “2014 witnessed the rapid integration of China’s SCD products. In 2014, many factors changed China’s SCD market, including the penetration of SCD products into lower tier cities, changes in sales channels, as well as the impact of smartphones and tablets on PCs. ”

Although the overall growth of China’s SCDs will slow down a little bit, the real question is what will  occur in regional markets and urban markets, at different tiers of cities as well as different products and channels? Which trends will determine how consumers and suppliers adapt to the market changes? Bearing these questions in mind, IDC concluded the following 10 predictions for China’s SCD market in 2015:

1.    PC demands will recover 1st- to 3rd-tier cities
In the recent two years, PCs were impacted by smartphones and tablets, in the way that the sales of the smartphones and tablets were greatly stimulated by the demand for the mobile Internet. Thus far, PCs didn’t fare well in the mobile Internet age, and consumers’ PC-upgrading cycle was undoubtedly prolonged. Recently though, Microsoft has formally issued Windows 10, which was advertized as the universal OS compatible on PCs, tablets, smartphones and all desired devices. It is expected to become the standard in the PC industry in 2015, especially for the corporate users in the 1st- to 3rd-tier cities and the individual consumers pursuing interconnectivity. Hardware manufacturers will begin to see the redemptive recovery resulting from the consumers’ accumulated demands to upgrade their PCs.

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Media Companies Need to Wake Up to the Digital Advertising Mess

Quartz

Digital media are stuck with bad economics resulting in relentless deflation. It’s time to wake-up and make 2015 the year of radical—and concerted—solutions.

 Trends in digital advertising feel like an endless agony to me. To sum up: there is no sign of improvement on the performance side; a growing percentage of ads are sold in bulk; click-fraud and user rejection are on the rise, all resulting in ceaseless deflation. Call it the J-Curve of digital advertising, as it will get worse before it gets better (it must–and it will.).
Here is a quick summary of issues and possible solutions:
 The rise of ad blocking systems, the subject of a Dec. 8, 2014 Monday Note. That column was our most viewed and shared ever, which suggests a growing concern for the matter. Last week, AdBlockPlusproudly announced a large scale deployment solution: with a few clicks, system administrators can now install AdBlockPlus on an entire network of machines. This is yet another clue that the problem won’t go away.
 There are basically three approaches to the issue.
The most obvious one is to use the court system against Eyeo GmBH, the company operating AdBlockPlus. After all, the Acceptable Ads agreement mechanism in which publishers pay to pass unimpeded through ABP filters is a form of blackmail. I don’t see how Eyeo will avoid collective action by publishers. Lawyers—especially in Europe—are loading their guns.
The second approach is to dissuade users from installing ABP on their browsers. It’s is up to browser makers (Google, Microsoft, Apple) to disable ABP’s extensions. But they don’t have necessarily much of an incentive to do so. Browser technology is about user experience quality when surfing the web or executing transactions. Performance relies on sophisticated techniques such as developing the best “virtual machines” (for a glimpse on VM technology, this 2009 FT Magazine piece, “The Genius behind Google’s browser” is a must-read.) If the advertising community, in its shortsighted greed, ends up saturating the internet with sloppy ads that users massively reject, and such excesses lead a third party developer to create a piece of software to eliminate the annoyance, it should be no surprise to see the three browser providers tempted to allow ad-blocking technologies.

Top 10 tech stories of 2014

ITWorld

Backlash! Disrupting the disruptors

Blowing up entrenched business models and picking up the profits that spill onto the floor is a time-honored tradition in tech, these days known by the cliche of the moment, “disruption.” This year everyone was trying to push back against those upstarts, whether by buying them like Facebook did, reorganizing to compete with them like HP and Microsoft have done, or just plain going out against them guns blazing, as it seemed that every city and taxi company did with Uber.

European courts fought the disruptive effect Google search has had on our very sense of the historical record. But meanwhile, legions of net neutrality supporters in the US spoke up to save the Internet’s core value of disruption against the oligopoly of a handful of communications carriers.

Here are our picks for the top stories of a very, well, disruptive year….

Inbox, Paper, And Sway: Why Tech Giants Are Suddenly Reinventing Their Core Apps

Fast Company

If you look through the App Store reviews for Facebook Paper, it doesn’t take long to find the recurring theme.

“So much better than the main Facebook app,” one user wrote.

“It is light years ahead of the standard Facebook app and everyone that can should delete the native app and use this one,” wrote another.

A third user was blunt: “Facebook should strongly consider making Paper its official iOS app instead of the awful main app.”

With Paper, Facebook has effectively rebooted its core News Feed product on the iPhone. Although Paper is built largely around the same photos and status updates you get from Facebook’s main app, it doesn’t feel like something that was merely retrofitted to the phone. It emphasizes large photos and swipe gestures, and lets you add general news sections for when you need a break from your friends. It could easily stand in for the main Facebook experience, even if it doesn’t have all the same features.

Facebook isn’t alone. Last week, Google announced Inbox, which is built around Gmail but with a different approach to displaying and handling messages. Instead of showing every email in reverse-chronological order, Inbox intelligently sorts messages into groups like “Travel” and “Purchases,” and in a nod to Dropbox’s Mailbox, lets you snooze or pin important emails for later.

On October 1, Microsoft revealed Sway, a modern take on presentations with an emphasis on style and ease of use. Whereas PowerPoint makes you obsess over every line and transition, Sway does all the heavy lifting automatically, and it’s designed to be just usable on phones as it is in a web browser.

While I hate to pull the old “three is a trend” journalist hat trick, it seems like more than a coincidence when Google, Facebook, and Microsoft reinvent core apps in such close proximity. And when you look closer at the motivations and goals of each project, there’s more than just a little overlap.

Read on…

World Tech Update Video – 10/3/14

IDG News Service

Ttis week Microsoft unveils Windows 10, JPMorgan Chase says a cyberattack this summer affected 83 million customers and we check out a hardware hackathon for women.

World Tech Update- August 29, 2014

IDG News Service

Coming up on WTU Instagram brings Hyperlapse to the iPhone, Microsoft cuts Surface 2 prices and Google reveals its secret drone delivery program.

 

Why Are PC Sales Up And Tablet Sales Down?

TechCrunch

When iPads first came out, they were hailed as the undoing of the PC. Finally, a cheap and reliable computing device for the average user instead of the complicated, quirky PC. After a few years of strong growth for iOS and Android tablets and a corresponding decrease in PC sales, the inverse is suddenly true: PC sales are up and tablet sales are “crashing.” What happened?

The tablet slowdown shouldn’t be a surprise given that tablets have hardly improved beyond relatively superficial changes in size, screen resolution, and processor speed. The initial market for tablets is now saturated: grandparents and kids have them, people bought them as Sonos controllers and such, and numerous households have them around for reading. People that want tablets have them, and there’s just no need to upgrade because they more than adequately perform their assigned tasks.

Businesses and consumers alike are again purchasing PCs, and Mac sales are on the riseyear-over-year. Businesses in particular are forced to upgrade older PCs now that Windows XP is no longer supported. When purchasing a new PC, the main driver to choose a PC versus a tablet is fairly obvious: If you are creating any type of content regularly, you need a keyboard, a larger screen, and (for most businesses) Microsoft Office.

Reigniting Tablet Growth with “Super Tablets”

For the tablet category to continue to grow, tablets need to move beyond what Chris Dixon calls the “toy phase” and become more like PCs. The features required for a tablet to evolve into a super tablet are straight from the PC playbook: at least a 13” screen, 64 bit processor, 2GB of RAM, 256GB drive, a real keyboard, an actual file system, and an improved operating system with windowing and true multitasking capability. Super tablets form factors could range from notebooks to all-in-one desktops like the iMac. Small 7” and 9” super tablets could dock into larger screens and keyboards.

The computer industry is littered with the detritus of failed attempts to simplify PCs ranging from Sun Micrososytems’ Sun Ray to Oracle’s Network Computer to Microsoft’s Windows CE. But this time, it’s actually different. The power of mass-produced, 64-bit ARM chips, economies of scale from smartphone and tablet production, and — most importantly — the vast ecosystem of iOS and Android apps have finally made such a “network computer” feasible.

Businesses Need Super Tablets

As the former CIO at CBS Interactive, I would have bought such super tablets in droves for our employees, the vast majority of whom primarily use only a web browser and Microsoft Office. There will of course always be power users such as developers and video editors that require a full-fledged PC. A souped-up tablet would indeed garner corporate sales, as Tim Cook would like for the iPad … but only at the expense of MacBooks.

The cost of managing PCs in an enterprise are enormous, with Gartner estimating that the total cost of ownership for a notebook computer can be as high as $9,000. PCs are expensive, prone to failure, easy to break and magnets for viruses and malware. After just a bit of use, many PCs are susceptible to constant freezes and crashes.

PCs are so prone to failure that ServiceNow — a company devoted to helping IT organizations track help desk tickets — is worth over $8 billion. Some organizations are so fed up with problematic PCs that they are using expensive and cumbersome desktop virtualization, where the PC environment is strongly controlled on servers and streamed to a client.

And while Macs are somewhat better than Windows, I suggest you stand next to any corporate help desk or the Apple genius bar and watch and learn if you think they are not problematic.

Continue reading…

Microsoft still believes in basic phones, launches Nokia 130 for $25

IDG News Service

Microsoft’s Devices Group has unveiled the Nokia 130, a mobile phone that costs just $25 but lacks an Internet connection and apps.

The focus of Microsoft’s mobile device strategy is on building both high-end and low-cost smartphones running Windows Phone, but there is still a need for “ultra-affordable” mobile phones, the company said on Monday.

With the 130, Microsoft is going after people in emerging markets who are buying their first phone. It’s also a good fit for people who want a backup to complement their existing smartphones, according to the company.

The $25 price tag (before taxes and subsidies) is about $90 cheaper than the Lumia 530, which is the lowest cost Windows Phone Microsoft has introduced so far. The price difference with the cheapest Android-based Nokia X — which was recently killed in favor of Windows Phone — is about the same.

For many people in the emerging markets that Microsoft is targeting, a price tag over $100 is simply too much. The company hence feels it needs to offer them a more affordable alternative to prevent them from going to another vendor from whom to buy a phone today and possibly a smartphone in the future.

The 130 has a 1.8-inch color display and will be available with one or two SIM cards. Microsoft also brags about a month-long standby-time, which is a boon for users that live in parts of the world where access to electricity isn’t always a certainty.

The phone also has a built-in video player, music player, an FM radio and a flashlight. It’s expected to begin shipping in the third quarter, and will be available in countries such as India, China and Indonesia.

The choice of this trio is far from a coincidence; they added the largest number of new mobile phone subscribers in the world during the first three months of the year, according to a survey conducted by telecom vendor Ericsson.

There might be a market for products like the 130 today, but the window of opportunity is closing quickly thanks to a continuing decline in smartphone pricing.

For example, Mozilla Foundation and chip maker Spreadtrum have developed a reference platform and partnered with Indian vendors Intex and Spice to launch ultra-low-cost Firefox OS smartphones in the next few months, they said in June. Spreadtrum has said the phones will cost about $25.

That means Microsoft has to continue to work on making Windows Phone available on smartphones that cost well below $100, which is what Google is doing with Android.

The 130 will also go on sale in Egypt, Kenya, Nigeria, Pakistan, the Philippines and Vietnam.

Why Microsoft Azure could have the last laugh in the cloud wars

CITEworld

Venture capitalist Brad Feld recently wrote an interesting post predicting the end of Amazon’s dominance of the cloud computing market, and concluded, “it’s suddenly a good time to be Microsoft or Google in the cloud computing wars.”

I’d go one step farther. Using Feld’s arguments, I’d say that Microsoft is in the driver’s seat.

First, the price war. Microsoft and Google are on approximately equal ground when it comes to cutting prices — both have highly profitable core businesses that they can use to subsidize a price war in cloud infrastructure, even to the point of sustaining losses for a while to gain market share. Amazon does not.

Second, the quality argument. Like Feld, we’ve also pointed out that there are niche cloud providers that do a better job than the big guys at providing infrastructure-as-a-service for specific verticals, but when you move all the way up the stack to full software-as-a-service applications, Microsoft has an edge among the big three with Office 365. Google has been making inroads into smaller businesses with Google Apps for almost a decade now, Microsoft remains the standard in the biggest and most profitable business customers — as this recent investigation from Dan Frommer at Quartz showed, only one company in the Fortune 50 uses Google Apps. (That company happens to be Google itself.)

The third argument, support, is mostly a wash. While Amazon’s support may be terrible (I have no evidence of this, but I’m taking Feld’s word for it), Microsoft and Google and their respective ecosystem partners do a decent job of supporting customers on their stacks. This hasn’t always been the case — Google used to treat support as an expensive afterthought — but in the case of Google Apps, at least, the company and its partners have stepped up significantly.

But then comes the fourth argument. Feld points out that once companies get to $200,000 per month of cloud-infrastructure spend, it’s actually significantly cheaper to build their own data centers.

Microsoft is the only one of the big three players with an on-premise offering — Windows Server and the rest of the Microsoft infrastructure family. Maybe the exact break-even point will change as the cloud price wars continue, but Microsoft has the most pieces customers would need to move from all-cloud to a hybrid or on-premise solution. Or, for that matter, for existing on-premise customers to begin experimenting moving some workloads to the cloud.

There’s one more point favoring Microsoft. Google’s core business is selling online advertising. That business makes up about 90% of Google’s revenue, and it has enviably high operating margins — around 30%, based on Google’s 2011 financial report. (I picked 2011 because that was before Google bought Motorola Mobility, which changed the margin structure.)

It’s unclear how the Google Cloud Engine helps that business. Are customers using Google’s cloud somehow more likely to advertise with Google? I don’t see it. Are Google advertising customers demanding to run other workloads on Google technology? I don’t see it.

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