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The China Smartphone Market Hiccups as Growth Streak Ends with First Sequential Decline in 2013 Q4

IDC PMS4colorversion 1 The China Smartphone Market Hiccups as Growth Streak Ends with First Sequential Decline in 2013 Q4

Singapore and Hong Kong, February 13, 2014 – After 9 consecutive quarters of explosive growth, which propelled China into the top smartphone market in the world, the China smartphone market experience its first slowdown in 2013 Q4.

According to the International Data Corporation (IDC) Asia/Pacific Quarterly Mobile Phone Tracker, shipped 90.8 million units compared to 94.8 million in 2013 Q3, declining by 4.3% quarter on quarter (see Figure 1). Several factors drove this stumble – for one, China Mobile’s 4G TD-LTE network went live on December 18, translating into supplies of 4G handsets not able to reach the market fully until 2014 Q1. The increasing popularity of phablets and channel inventory also played a role, whereby operators cut phone subsidies on phones with smaller screens, triggering distribution channels looking to clear out those stocks.

“The world has increasingly looked to China as the powerhouse to propel the world’s smartphone growth and this is the first hiccup we’ve seen in an otherwise stellar growth path,” says Melissa Chau, Senior Research Manager with IDC Asia/Pacific’s Client Devices team.

“There will certainly be future drivers to unlock further smartphone growth in China, as Apple demonstrated with its China Mobile tie-up in January, and the massive device migration to come of phones only supporting 2G and 3G networks to devices supporting 4G networks. However, we are now starting to see a market that is becoming less about capturing the low-hanging fruit of first time smartphone users and moving into the more laborious process of convincing existing users why they should upgrade to this year’s model”

Looking ahead at the prospects for the Asia/Pacific (excluding Japan) region, with mature Asia/Pacific markets like already having hit market saturation and China growth facing more moderate increases, two trends will become more prominent.

Read full article 

 

World Tech Update – 2/6/14

IDG News Service

Coming up on WTU this week Microsoft makes big changes, Sony sells its computer business and we take a look at connected clothing.

Network World’s Research Highlights IT Spending Increases and Focus on New IT Models

Network World

Network World’s State of the Network gauges IT focus areas within existing and emerging tech 

Framingham, Mass.
 – IDG’s Network World—the premier technology media brand providing network strategy for the connected enterprise—reveals the 2014 results of the Network World State of the Network study (click to Tweet).  The annual research provides a comprehensive view of technology adoption trends among the Network World audience. The study indicates that IT decision-makers are seeing budget increases over the next year, with three-quarters anticipating budgets will increase or hold firm for 2014. As IT budgets continue to rise, IT staff headcount is expected to increase as well to meet demands of new IT models and technologies. Those expecting staffing increases estimate headcounts will increase by an average of 17% over the next one to three years.


Emerging Technologies Influence on IT

The quickly advancing next generation technology landscape is driving organizations to invest and prepare for changes made possible by these emerging technologies. Almost half (49%) of IT decision-makers anticipate that emerging technologies will enable their IT organizations to pool resources and drive up utilization, while reducing siloed resources. In fact, IT sees Software-Defined Networking (SDN) as a top technology opportunity with 57% actively pursuing SDN and 46% planning implementation within the next 3 years. WiFi is another substantial driver with 47% in agreement that 802.11ac, an evolutionary wireless LAN specification that leverages several ways to dramatically boost WiFi throughput, will be critical to their organizations’ ability to keep up with demands for wireless access.

Worldwide Smartphone Shipments Top One Billion Units for the First Time

IDC PMS4colorversion 1  Worldwide Smartphone Shipments Top One Billion Units for the First Time

FRAMINGHAM, Mass. – The worldwide smartphone market reached yet another milestone, having shipped one billion units in a single year for the first time. According to the International Data Corporation (IDCWorldwide Quarterly Mobile Phone Tracker, vendors shipped a total of 1,004.2 million smartphones worldwide, up 38.4% from the 725.3 million units in 2012. This aligns with IDC’s most recent forecast of 1,010.4 million units, making for a difference of less than 1%. Smartphones accounted for 55.1% of all mobile phone shipments in 2013, up from the 41.7% of all mobile phone shipments in 2012. In the fourth quarter of 2013 (4Q13), vendors shipped a total of 284.4 million smartphones worldwide, up 24.2% from the 229.0 million units shipped in 4Q12.

In the worldwide mobile phone market (inclusive of smartphones), vendors shipped 1,821.8 million units, up 4.8% from the 1,738.1 million units shipped 2012. In 4Q13 alone, vendors shipped a total of 488.4 million units worldwide, up 0.9% from the 484.0 million units shipped in 4Q12. This is 2.8% lower than the 502.4 million units that IDC had recently forecast.

“The sheer volume and strong growth attest to the smartphone’s continued popularity in 2013,” says Ramon Llamas, Research Manager with IDC’s Mobile Phoneteam. “Total smartphone shipments reached 494.4 million units worldwide in 2011, and doubling that volume in just two years demonstrates strong end-user demand and vendor strategies to highlight smartphones.”

“Among the top trends driving smartphone growth are large screen devices and low cost,” said Ryan Reith, Program Director with IDC’s Worldwide Quarterly Mobile Phone Tracker. “Of the two, I have to say that low cost is the key difference maker. Cheap devices are not the attractive segment that normally grabs headlines, but IDC data shows this is the portion of the market that is driving volume. Markets like China and India are quickly moving toward a point where sub-$150 smartphones are the majority of shipments, bringing a solid computing experience to the hands of many.

For the full release, click here

Holiday PC Shipments on Target as Lenovo Expansion Continues

IDC PMS4colorversion 1 Holiday PC Shipments on Target as Lenovo Expansion Continues

FRAMINGHAM, Mass.– Worldwide PC shipments totaled 82.2 million units in the fourth quarter of 2013 (4Q13), representing a year-on-year contraction of -5.6%, a shade better than the forecast of -6.0% growth, according to the International Data Corporation (IDCWorldwide Quarterly PC Tracker.

For the full year 2013, unit shipments declined -10.0% from 2012, a record drop reflecting the changes in mobility and personal computing affecting the market. While commercial purchases helped to prevent a larger decline, the consumer side remained weak.

“The PC market again came in very close to expectations, but unfortunately failed to significantly change the trajectory of growth,” said Loren Loverde, Vice President, Worldwide PC Trackers. “Total shipments have now declined for seven consecutive quarters, and even the holiday shopping season was unable to inspire a turn in consumer spending. Although U.S. growth slipped a little in the fourth quarter, other regions all improved, reinforcing our view that growth rates will continue to improve gradually during 2014 despite remaining in negative territory.”

“In the United States, market leader HP had a difficult quarter, contracting -12.3% year on year as the market slowed following an HP surge in the third quarter. However, Asian majors like Lenovo and Samsung achieved strong double-digit growth, driven partly by a modest commercial uptick and partly due to retail acceptance of their emerging product categories, such as Chromebooks. Dell and Toshiba also managed mid single-digit growth, essentially coming from large corporate refreshes in the enterprise segment,” said Rajani Singh, Senior Research Analyst, Personal Computing. “Nevertheless, despite a dip in total shipments, the U.S. market outperformed most other regions and the worldwide market as a whole for the fifth consecutive quarter, reflecting a relative degree of stabilization.”

Continue reading the release… 

IDC Predicts Dramatic Increase in RTB for Display Ads

IDC/IDG Communications

IDC VP Karsten Weide expects a revolution in the way display ads are bought over the next several years. By 2017, real time bidding (RTB) spending may reach almost $21 billion worldwide. Weide spoke with IDG Communications Director Howard Sholkin…..

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IDC Predicts 2014 Will Be a Year of Escalation, Consolidation, and Innovation as the Transition to IT’s “3rd Platform” Accelerates

IDC PMS4colorversion 1 IDC Predicts 2014 Will Be a Year of Escalation, Consolidation, and Innovation as the Transition to ITs 3rd Platform Accelerates

FRAMINGHAM, Mass.– International Data Corporation (IDC) today offered the first of its annual predictions for the coming year in the information and communications technology (ICT) industry. IDC’s predictions for 2014 were heavily influenced by the 3rd Platform, the industry’s emerging platform for growth and innovation built on the technology pillars of mobile computing, cloud services, big data and analytics, and social networking.

“The 3rd Platform’s impact was felt throughout the ICT industry in 2013 as a high-profile CEO lost his job, a major IT player went private, numerous vendors endured cash cow stagnation, and billion-dollar bets were placed on 3rd Platform technologies,” said Frank Gens, Senior Vice President and Chief Analyst at IDC. “In 2014, we’ll see every major player make big investments to scale up cloud, mobile, and big data capabilities, and fiercely battle for the hearts and minds of the developers who will create the solutions driving the next two decades of IT spending. Outside the IT industry, 3rd Platform technologies will play a leading role in the disruption (or “Amazoning”) of almost every other industry on the planet.”

IDC’s predictions for 2014, presented by Gens in a Web conference today, include the following:

1. Worldwide IT spending will grow 5% year over year to $2.1 trillion in 2014. Spending will be driven by 3rd Platform technologies, which will grow 15% year over year and capture 89% of IT spending growth. Sales of smartphones and tablets will continue at a torrid pace while outlays for servers, storage, networks, software, and services will fare better than in 2013. The PC market will remain under stress, with worldwide revenues down -6% year over year.
2. Emerging markets will return to double-digit growth of 10%, driving nearly $740 billion or 35% of worldwide IT revenues and, for the first time, more than 60% of worldwide IT spending growth. In the BRIC countries, IT spending will grow by 13% year over year, led by an economic recovery in China. In dollar terms, China’s IT spending growth will match that of the United States, even though the Chinese market is only one third the size of the U.S. market. Elsewhere, emerging market growth will be uneven, ushering in the beginning of a new “Post-BRIC” era.

See all predictions… 

IDG EXPANDS TECH VIDEO LEADERSHIP WITH LAUNCH OF IDG.tv

Microsoft Office 365 first sponsor of IDG’s new technology video site

NEW YORK, December 11, 2013 – International Data Group (IDG) today announced the launch of IDG.tv (www.idg.tv), a video-exclusive destination for business professionals and consumers seeking technology-related content.  IDG.tv debuts with more than 1100 technology videos with new content to be added daily.  IDG.tv draws content/video from  IDG’s network of more than 500 websites globally with plans to include IDG.tv-exclusive video programming.  With IDG.tv, viewers can watch IDG’s consumer and business-to-business videos anytime – at home or on the road – on any screen.

Worldwide, IDG tech videos garner 150 million views each month, a figure that is growing with the launch of IDG.tv.  By combining the global syndication capabilities of the IDG TechNetwork, and the existing audience on IDG’s owned and operated sites, IDG.tv enables technology marketers to connect with a global viewing audience.

At launch, IDG.tv offers users an optimal viewing experience with one of the largest video player in the industry tuned for the viewing experience with searchable video archives and 15 channels.  IDG.tv launches as video viewing becomes a regular part of online activity. comScore  reports that 188.7 million people in the US watched 46 billion online content videos in September 2013. The average American spent more than 20 hours watching online video.

In addition to news channels and those devoted to PCs, apps, smartphones, and tablets,, featured channels include:

Security – From protecting your laptop to guarding company data

Cool New Tech Topics such as smart homes, wearable tech, and 3D printing

Home Entertainment Tech that turns your living room into a multimedia experience

Car Tech The latest automotive technology, test-drives, and reviews

      IT Insights – Trends and issues affecting professional users of technology

 

For Sponsors

As one of the only dedicated tech video sites, IDG.tv offers new ways to place online advertising with IDG media brands.  IDG provides advertisers with significantly greater levels of audience data around video viewership.  As a result, advertisers will have the rich user data they need to position native advertising that is more relevant to the surrounding content.

For the November launch of IDG.tv, Microsoft Office 365 created a new video destination for users to tune into content about collaboration and productivity.  

“IDG has produced more than 20,000 videos worldwide, and now consumers have one site to go to for videos based on their interests,” said Ekapat Chareonlarp, vice president, IDG TechNetwork, headquartered in New York City.  “For tech buyers, video has become a staple of their lives. Now they have one place to go and marketers know where they can reach their prospects.”

In addition to pre-roll ads, IDG.tv provides sponsors with four distinct options to reach technology audiences:

 

  • Dedicated Brand Channel

With a dedicated brand platform, sponsors can manage video content within the channel and monitor performance through a unified dashboard. An end-to-end managed services package is also available with guaranteed viewership, a dedicated content management team, and custom content development to jumpstart video marketing with IDG.tv.

 

  • IDG.tv Interest-Based or Topical Channel Sponsorship

Sponsors can utilize already established video channels such as Big Data, Enterprise Analytics, and CMOs to insert brand stories through sponsored video posts and channel sponsorships.

 

  • Custom Video Channel

IDG Creative Lab offers custom  video production for advertisers who want a consistent voice across IDG videos.  For example, a custom web show  focused on “Big Data and Analytics” can be produced in studio quality, high-definition and be featured with the latest news from IDG and around web.

 

  • IDG.tv video player

The player is designed with responsive advertising technology so ads adjust to any screen size. The IDG.tv video player is being embedded across IDG media and TechNetwork sites to provide a consistent and optimized video viewing experience.

 

Marketers interested in advertising on IDG.tv should contact Scott Harris, scott_harris@idgtechnet.com, (720) 560-6500.

 

About International Data Group
International Data Group (IDG) is the world’s leading technology media, events, and research company. Founded in 1964 and headquartered in Boston, Massachusetts, IDG products and services reach an audience of more than 280 million technology buyers in 97 countries.

 

IDG Communications’ global media brands include ChannelWorld®, CIO®, CITEworld, CSO®, Computerworld®, GamePro®, InfoWorld®, ITworld, Macworld®, Network World®, PCWorld®, TechHive and TechWorld®. IDG’s media network features 460 websites, 200 mobile sites and apps, and 200 print titles spanning business technology, consumer technology, digital entertainment and video games worldwide. The IDG TechNetwork represents more than 500 independent websites in an ad network and exchange complementary to IDG’s media brands.
With expertise in branding, lead generation, and social media marketing, IDG marketing services programs are strategically designed and implemented to influence technology vendor prospects worldwide.
A recognized leader in conference and exhibition management, IDG produces more than 700 globally branded technology and entertainment conferences and events in 55 countries.
International Data Corporation (IDC), a subsidiary of IDG, has more than 1,000 analysts who provide global, regional, and local expertise on technology and industry opportunities and trends in more than 110 countries.

Additional information about IDG, a privately held company, is available at http://www.idg.com.

 

Contact: Howard Sholkin, howard_sholkin@idg.com, 508 766-5610

 

Worldwide Smartphone Shipments on Pace to Grow Nearly 40% in 2013 While Average Selling Prices Decline More Than 12%

IDC PMS4colorversion 1 Worldwide Smartphone Shipments on Pace to Grow Nearly 40% in 2013 While Average Selling Prices Decline More Than 12%

IDC Press Release

FRAMINGHAM, Mass. November 26, 2013 – According to a recently published mobile phone forecast from the International Data Corporation (IDCWorldwide Quarterly Mobile Phone Tracker, worldwide smartphone shipments are expected to surpass 1.0 billion units in 2013, representing 39.3% growth over 2012. Despite a number of mature markets nearing smartphone saturation, the demand for low-cost computing in emerging markets continues to drive the smartphone market forward. By 2017, total smartphone shipments are expected to approach 1.7 billion units, resulting in a compound annual growth rate (CAGR) of 18.4% from 2013 to 2017.

A number of trends co-exist in the global smartphone market, but none have more of an affect on driving market growth than the steady decline in average selling prices (ASPs). Android has enabled a number of new manufacturers to enter the smartphone market supported by a variety of turnkey processing solutions. Many of these handset vendors have focused on low-cost devices as a way to build brand awareness. In 2013, IDC expects smartphone ASPs to be $337, down -12.8% from $387 in 2012. This trend will continue in the years to come and IDC expects smartphone ASPs to gradually drop to $265 by 2017.

“The game has changed quite drastically due to the decline in smartphone ASPs,” said Ryan Reith, Program Director with IDC’s Worldwide Quarterly Mobile Phone Tracker. “Just a few years back the industry was talking about the next billion people to connect, and it was assumed the majority of these people would do so by way of the feature phone. Given the trajectory of ASPs, smartphones are now a very realistic option to connect those billion users.”

For the full release click here

Big Data & Analytics and Enterprise Applications Will Continue to Drive Software Spending Growth Into 2017

IDC PMS4colorversion 1 Big Data & Analytics and Enterprise Applications Will Continue to Drive Software Spending Growth Into 2017

FRAMINGHAM, Mass.– International Data Corporation (IDC) today released the latest forecast from the Worldwide Semiannual Software Tracker. Year-over-year growth in the worldwide software market for 2013 has been revised to 4.3% in current U.S. dollars. The forecast was lowered from the 5.7% year-over-year growth projected in May because of an important currency exchange rate depreciation in the Japanese yen announced during the second quarter. In constant U.S. dollars, the expected growth rate for 2013 remains very close to the forecast of 5.9%. Despite the fluctuation in currency exchange rates, IDC believes that the compound annual growth rate (CAGR) for the 2012-2017 forecast period will remain close to 6%.

Collaborative Applications along with Structured Data Management Software and Data Access, Analysis and Delivery solutions are expected to show the strongest growth over the five-year forecast period with over 8% CAGR from 2012-2017. “Leveraging the social dimensions of the Internet keeps fueling the collaboration growth, much of which is in the form of software as a service. This is complementary to the increased attention to Big Data & Analytics solutions, which help enterprises to understand and act on anticipated customer behavior and provide new insights into product reliability and maintenance,” said Henry Morris, Senior Vice President for Worldwide Software, Services, and Executive Advisory Research.

On a second tier, Enterprise Applications such as CRM, ERM, SCM, and Operations and Manufacturing Applications show CAGR rates around 6%. “Enterprises are starting to implement applications that either didn’t exist or weren’t needed in the past, such as commerce applications in all industries, not just retail, but also manufacturing, hospitality, food and beverage, and even the public sector. IDC is also seeing applications in categories that didn’t exist in the past (e.g., subscription billing, spend optimization, and revenue management) for requirements that may have been met using custom applications or manual processes,” said Christine Dover, Research Director, Enterprise Applications and Digital Commerce.

On a regional basis, the emerging economies continue to experience stronger growth than the mature economies. The average 2012-2017 CAGR for Asia/Pacific (excluding Japan), Latin America, and Central Eastern, Middle East, and Africa (CEMA) is 8.2% while the average CAGR for the mature regions – North America, Western Europe, and Japan – is 5.4%.

 Read the original release here