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World Tech Update 01/ 24/14

IDG News Service

Coming up on WTU this week Lenovo makes a big buy, Nintendo cuts expectations and Ford enlists U.S. universities to help drive its automated cars.

Apple Targets Microsoft Office With Free Apps

NY Times

SAN FRANCISCO — At an event meant to feature its latest iPad tablet computing devices, Apple on Tuesday took aim at one of the biggest and seemingly unassailable businesses of its rival Microsoft, its Office software for tasks like word processing and spreadsheets. Apple said iWork, a set of applications for Macs, iPads and iPhones that essentially duplicates whatMicrosoft’s Office offers customers, would be free to anyone who bought a new Macintosh computer or mobile device from Apple. Each Apple app used to cost $10 apiece.  The latest version of the Macintosh operating system, Mavericks, will also be free.

The pricing maneuver was perhaps the lone surprise at an Apple new media event here at the Yerba Buena Center for the Arts. As expected, Apple souped up its iPads with faster processors and zippier Internet connections.

Tablets are devouring the PC market, which has long been Microsoft’s playing ground. About 120 million tablets were shipped in 2012, nearly seven times as many as in 2010, when the first Apple iPad was released, according to Gartner, a market research company. IDC, another research company, predicts that sales of tablets will surpass those of PCs in the fourth quarter of this year and on an annual basis in 2015.

So far, Microsoft has had little success in that growing market. Its attempts to sell tablets have been failures, and Windows 8, which it has marketed as a software system for tablets and PCs, has gotten a chilly reception. What’s more, Microsoft still charges $120 for people who want to upgrade from the older Windows 7 system to Windows 8. 

Apple is No. 1 in the tablet market with about a 32 percent share, according to IDC. But the company faces fierce competition from companies like Amazon, Samsung Electronics and Google, whose tablets undercut the iPad in price. Samsung, the No. 2 tablet maker, is quickly gaining traction, with 18 percent of the market in the second quarter, compared with 7.6 percent in the period a year earlier, according to IDC.

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May PC Shipments Reflect Slow Second Quarter, According to IDC

IDC PMS4colorversion 1 May PC Shipments Reflect Slow Second Quarter, According to IDC
IDC Press Release

FRAMINGHAM, Mass., June 28, 2013 – The PC market continued to suffer slow shipment growth in top countries across regions in May, according to the International Data Corporation (IDC) Monthly PC Tracker. April shipment growth had improved slightly from March in Latin America and Europe, Middle East and Africa (EMEA), but May growth has come in slower than April for each of these markets except India and UK.

For the full release click here

Infographic: Emerging Markets Mobile Attitudes


The 2013 Emerging Markets Mobile Attitudes Report from marketing technology company Upstream, which commissioned YouGov and Vanson Bourne to poll the views of a representative sample of 3,670 adults in Brazil, India, Nigeria and Saudi Arabia, revealed that while Apple’s success in the West has been predominately shaped by its premium brand status, the door is open for others such as Nokia to stake its claim on the emerging market audience.

The report reveals that Apple (21 per cent) only secures third place on emerging market consumers’ wish lists – after Samsung (32 per cent) and Nokia (22 per cent). Despite its recent decline in Western markets, Nokia has been named the brand most Nigerians would like to own (37 per cent), and second favourite in Brazil after Samsung. While an appetite for high-end smartphone devices exists throughout emerging markets – 16 per cent willing to spend more than $450 on a device – the report finds that brand desirability cannot guarantee success in these new markets. The report reveals that almost a third of consumers (27 per cent) with less purchasing power will ultimately bypass their favourite brands and buy devices with similar functionality, but at a cheaper price.

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research 2013 YouGov emerging Infographic: Emerging Markets Mobile Attitudes

Worldwide Smart Connected Device Market Crossed 1 Billion Shipments in 2012, Apple Pulls Near Samsung in Fourth Quarter, According to IDC

IDC PMS4colorversion 1 Worldwide Smart Connected Device Market Crossed 1 Billion Shipments in 2012, Apple Pulls Near Samsung in Fourth Quarter, According to IDC

IDC Press Release
FRAMINGHAM, Mass., March 26, 2013 – According to the International Data Corporation (IDC) Smart Connected Device Tracker, worldwide shipments of smart connected devices grew 29.1% year over year in 2012, crossing 1 billion units shipped with a value of $576.9 billion. The market expansion was largely driven by 78.4% year-over-year growth in tablet shipments, which surpassed 128 million in 2012.

Looking specifically at the results for the fourth quarter of 2012 (4Q12), combined shipments of desktop PCs, notebook PCs, tablets, and smartphones was nearly 378 million and revenues were more than $168 billion. In terms of market share, Apple significantly closed the gap with market leader Samsung in the quarter, as the combination of Apple’s iPhone 5 and iPad Mini brought Apple up to 20.3% unit shipment share versus 21.2% for Samsung. On a revenue basis for the fourth quarter, Apple continued to dominate with 30.7% share versus 20.4% share for Samsung.

View the full press release

YouTube joins Facebook in the 1 billion users club

Thanks to the generation of Americans, age 18 to 34, who watch YouTube on multiple devices and enjoys video creation and sharing

SAN FRANCISCO – The Internet’s obsession with cats has finally reached a tipping point. Late Wednesday, YouTube announced that it has more than 1 billion unique users every month. That puts YouTube in the same club as Facebook, which surpassed 1 billion monthly users last October.

YouTube has long been the most popular video site beginning in the days when it was mostly user-contributed videos and premium video sites—such as Hulu—had yet to appear. These days, YouTube is the go-to site for movie trailers, music videos, the occasional pirated TV episode, as well as cats fighting printers and skidding across linoleum floors.

The Google-owned site attributed its large growth to Generation C, a term coined by metrics firm Nielsen to describe American aged 18 and 34. “Born sometime between the launch of the VCR and the commercialization of the Internet, Americans 18-34 are redefining media consumption with their unique embrace of all things digital,” Nielsen said in an early 2012 study. On YouTube, Gen C are the folks watching YouTube videos across multiple device types including smartphones, tablets, and PCs. Not coincidentally, this crowd also happens to be big on video creation, sharing, and curation of favorite YouTube clips.

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Tech Consumers Speak and What They Tell Us


By, Matthew Yorke

It was not that long ago that the biggest challenge for publishers and marketers was to understand the dynamics of the print and the online worlds. Today, it is far more complex both from the medium and message standpoints.

The Echo Effect
Late last year, IDG Research Services released the results of its latest study: The Echo Effect : Understanding the Value of Tech Buyers. More than 3,100 visitors to IDG U.S. technology media sites such as PCWorld, Macworld, CIO, and Computerworld, participated.

Before I get into buyer behaviors, just surveying the modern reader’s journey is a dizzying experience filled with insights.

Ninety-five percent of the respondents use one or more social platforms. No surprises there you might say. However, in terms of what those interactions mean for brand engagement, that’s the exciting part: Forty-two percent are willing to recommend a company and 40% of the respondents experience increases in their brand loyalty.
Screen Shot 2012 11 27 at 10 13 48 AM Tech Consumers Speak and What They Tell Us
Social Selection
But, from a marketer’s point of view this means more than just putting up a Facebook page or a Twitter stream. IDG’s social research revealed why users are on certain platforms and what their expectations are for each. For example, in the consumer tech category, we discovered that Facebook is used for sharing, Google+ for seeking (although this data may be influenced by brand associations with search), LinkedIn for networking, and Twitter for dynamic sharing. Consumers also expect vendors to use these platforms to respond to their questions, offer insights into products, and provide product reviews/rankings.

Mobile Taking Over for PCs
Print and online are no longer the game. It’s a mobile world, and smartphone/tablet activities are replacing PC-based usage. Two-thirds of the respondents own and regularly use two or more mobile devices, and about 33% of their browsing for technology content is via mobile. We know they are researching products, seeking in-store price comparisons, and purchasing products with their smart mobile devices. Mobile and social are two legs of a stool; the third is video.

Lights, Camera, Action
We discovered that our readers cannot resist tech-related videos, with 93% of them watching and 72% commenting on and sharing videos or posting them.

Mobile is driving this new-found appetite for video with 40% watching tech videos on their tablets and smartphones. Video is not just an entertainment factor. It drives tangible purchase behaviors with 64% of the respondents moving from watching a video to seeking further product-related information.

Puzzle Pieces from IDC’s Audience Segmentation
So that’s all very interesting, but what really counts is segmenting users by their social and technology behaviors to understand exactly what kind of messaging and marketing engages prospects. That’s the real challenge. In conjunction with the IDG Research Services Echo survey, we worked with our sister company, IDC, and its ConsumerScape360 practice and segmentation model. We discovered three audience segments among online readers: New Media Influencers, Enthusiastic Adopters and Needs-Based Buyers. Briefly, here’s how they differ and what can be learned from each category.

New Media Influencers are the highest value segment as they are natural brand champions and research products extensively before buying. They are active contributors to social/new media and are twice as likely as an average consumer to give brand or product advice to others.

Enthusiastic Adopters are key to driving sales in the early stages of a product’s lifecycle. This segment is most excited by technology and they own a lot of it. They rely on information from a variety of sources including social media, but are more likely to be following others (such as New Media Influencers) through the social web rather than actively contributing to the conversation. They respond well to marketing that is feature or function focused.

Lastly, the Needs-Based Buyers, who are the smallest segment, are more price sensitive and only buy technology when older devices no longer work. This group of prospects relies heavily on the advice of others.

Based on the Echo research and IDC’s ConsumerScape360, I have several recommendations for tech marketers, and marketers in general, since technology has become a part of so many products and services: Consider how you integrate social interactions and social content, including video, into your more traditional marketing. Think of ways to actively target and activate the New Media Influencers to become brand champions, and tailor messaging to reach those all-important Enthusiastic Adopters.

Life is certainly not easier in the digital and social worlds, but insights needed to turn prospects into customers are now clearer and can help you choose your priorities.

Tablets take off; will media innovation follow?

eMedia Vitals

Apple CEO Tim Cook says tech innovation is moving from PCs to tablets and smartphones. Slowly, magazine publishing is following.

Speaking at a Goldman Sachs conference in San Francisco, Cook said there’s a “sea change” taking place in the PC industry as development shifts from PCs to mobile devices. “But we’re in the early innings of this game,” he added.

Not too early for magazine publishers to start shifting resources toward their tablet strategies. A new study from NPD Group found that more than one-third of consumers are transitioning some of their content consumption from PCs to tablets and smartphones. Combine consumption and engagement trends with rapidly growing tablet sales – Apple shipped 23 million tablets in the fourth quarter alone, and lower-priced, 7-inch tablets are rapidly gaining share while creating a mass market – and the stage is set for a significant uptick in sales of digital content, including magazines.

Last week’s magazine circulation report from the Alliance for Audited Media shows the gains digital editions are making – but also the untapped opportunity. Digital replica editions among the titles reporting to the AAM more than doubled over the second half of 2012 from a year earlier, accounting for nearly 8 million digital replicas. That number is still just 2.4% of total circulation, however. And just 65% of magazines in the AAM report reported digital circulation; several large titles did not, including Better Homes and Gardens, Barron’s, AARP, TV Guide, and Time Inc’s major titles such as Time, Sports Illustrated and Southern Living. This suggests even higher sales of digital editions.

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Mobility Reigns as the Smart Connected Device Market Rises 29.1% in 2012 Driven By Tablet and Smartphone Growth

IDC PMS4colorversion 1 Mobility Reigns as the Smart Connected Device Market Rises 29.1% in 2012 Driven By Tablet and Smartphone Growth
IDC Press Release
FRAMINGHAM, Mass.– When looking at a holistic view of smartphones, tablets, and PCs, one thing is clear – smartphones and tablets are driving mobility growth. According to the International Data Corporation (IDC) Worldwide Quarterly Smart Connected Device Tracker, vendors shipped 367.7 million desktop PCs, portable PCs, tablets, and smartphones – a collective view IDC refers to as “Smart Connected Devices” – in the fourth quarter of 2012 (4Q12), up 28.3% from the prior year. As desktop PCs and portable PCs declined (-4.1% and -3.4%, respectively), the overall smart connected device space continued to surge to just over 1.2 billion shipments cumulatively in 2012. Tablet shipments experienced the largest year-over-year growth in 2012, up 78.4% over 2011, while smartphones grew 46.1% but accounted for 60.1% of all smart connected devices shipped throughout the year.


IDC Analysis of Tablet and Smartphone Users Debunks Printing, Scanning, and Document Management Myths

IDC PMS4colorversion 1 300x99 IDC Analysis of Tablet and Smartphone Users Debunks Printing, Scanning, and Document Management Myths

IDC Press Release

FRAMINGHAM, Mass. – The explosion of smartphone and tablet adoption will impact printing, scanning, document management, and print volumes in surprising ways over the next five years. According to a new International Data Corporation (IDC) survey of 800 unique respondents, smartphone and tablet users – whom the survey found to be younger, more likely male, have higher incomes, and increasingly hectic travel schedules – are surprisingly more likely than non-users to drive print. Smartphone and tablet users are more likely than non-users to print 16 of 20 business applications from their PCs.

The share of users printing from their smartphones and tablets will increase dramatically if users have their way, and the need to enable print and educate users how to print is clear. The percentage of users who printed from their mobile devices increased dramatically in 2012, and the percentage of those who do not print, and do not want to print, will decline from almost 50% in 2012 to just 25% in 2015 according to respondents. However, a large percentage of smartphone and tablet users do not know how to print from their devices, and a large share say their company has not yet enabled mobile printing.