Skip to main content

Posts

Showing posts from August, 2015

1.54 Billion Android Smartphones to be Shipped in 2019

According the latest global market study by International Data Corporation (IDC), total smartphone shipments are expected to grow by 10.4 percent in 2015 to reach 1.44 billion units. This new forecast is lower than IDC's previous smartphone forecast of 11.3 percent year-over-year growth in 2015. Smartphone shipments within China will now join North America and Western Europe in a more mature growth pattern. However, the ongoing fall of average selling prices (ASPs) will fuel steady growth through the end of the forecast period, with global shipments forecast to reach 1.9 billion units in 2019. As the largest market for smartphones -- China consumed 32.3 percent of all new smartphone shipments in 2014 -- its importance is still significant, even if its growth has begun to slow. Shipments are forecast to grow just 1.2 percent year-over-year in 2015, which is down from 19.7 percent in 2014. China will remain the largest market for smartphone volumes throughout the forecast perio

Demand Volatility in the Consumer Wearables Market

Over the last 18 months, the wearables market has started to mature and has grown considerably with new players introducing numerous products -- such as fitness bands, smartwatches, smart glasses, and other sensor-enabled devices. Using data compiled from approximately 328,000 consumer reviews since January 2014, the latest market study by Argus Insights reveals that after the holiday season of 2013, consumers briefly lost interest in wearables before steadily increasing demand reached its high point in January 2015 where it was four times the level of a year earlier. Since then, however, demand has slowed. According to the report, all the media buzz about the Apple Watch introduction stole consumer interest away from Fitbit and other wearables, as potential buyers waited to determine whether they wanted the Apple Watch. Interest in Fitbit devices resumed and grew once the Apple Watch details were announced, as Fitbit and other wearable manufacturers saw a strong 2014 holiday p

Digital Practitioners will Lead, Plan and Execute Change

We knew this day would come, where the leading enterprise industry analysts would all acknowledge that business technology has evolved. Moreover, the integration of digital requirements into most work processes has resulted in a world where every capable employee is potentially a skilled Digital Practitioner. "Today's employees possess a greater degree of digital dexterity," said Matt Cain, research vice president at Gartner . "They operate their own wireless networks at home, attach and manage various devices, and use apps and Web services in almost every facet of their personal lives. They participate in sharing economies for transport, lodging and more." Gartner believes that the traditional IT organizations must figure out how to effectively utilize all employee 'digital dexterity' -- somewhat regardless of their primary role and responsibilities. Key Point: digital-savvy talent is in short supply, when restricted to just the typical IT support

Mobile Service Providers Adapt to IoT and M2M Demand

Given the current saturation in many of the mobile communication markets across the globe, it's not surprising that Machine-to-Machine (M2M) and the Internet of Things (IoT) technologies are now a high priority for telecom service providers who seek ways to create new revenue streams. According to the latest market study by IDC, the global installed base of IoT will reach 28.1 billion devices in 2020, generating a forecast revenue of $1.7 trillion -- with cellular M2M being an important subset of this new growth. Though mobile connectivity provisioning has historically been the telecom service provider's primary value proposition in M2M, their strategies are now evolving to embrace other parts of the value chain -- particularly those with higher margins, such as software and services. IDC believes that telecom network operators will continue to play a key role in building the M2M IoT market. According to the IDC assessment, telecom providers should act as hubs for innovat

How Mobile Apps Enable Breakthroughs in Healthcare

Telecom services and American healthcare technology are becoming closely intertwined. According to the latest market study by Parks Associates, over two-thirds of U.S. broadband households already use a healthcare related mobile software app or portal on a monthly basis. "Connected health devices and apps are starting to open healthcare services to larger populations, but right now, consumers spend less than 1 percent of their time interacting with the healthcare system through hospitals, clinics, doctors, and health coaches," said Harry Wang, research director at Parks Associates . Online health services are starting to open new engagement opportunities, and companies in the connected home space -- such as broadband and security service providers -- can help to drive consumer engagement by integrating connected home technology with healthcare solutions. By 2019, millions of households will benefit from a smart home platform that offers solutions in at least one of thre

Pay-TV Subscriber Losses Continue in North America

The video entertainment distribution sector is still evolving. Case in point: the pay-TV operators within North America continue to be challenged during the second quarter of 2015, as significant new subscriber losses pose an ongoing threat to their core business model. The latest market study by Strategy Analytics indicates that the top twenty pay-TV operators in the U.S. -- accounting for more than 95 percent of the total market -- reported subscriber losses of 479,000, while the Pay-TV operators in Canada lost 53,000 customers. According to their assessment, total subscribers among the tracked pay-TV operators in North America declined at the highest rate that they've seen so far. The transition from analogue to digital television platforms hasn't improved the situation. Digital TV subscriptions in the U.S. market fell by 62,000. Moreover, in Canada, digital TV subscriptions declined for the second straight quarter -- with estimated losses totaling 9,000. While subsc

Telecom Providers Deliver Managed Healthcare Solutions

In most developed markets around the globe, there's a key trend that has been in motion for some time. The convergence of digital business technology and internet connectivity is disrupting, transforming and sometimes collapsing industries. Technologies like cloud computing, enterprise mobility, big data and the Internet of Things are driving the surge in digital business transformation and rapidly accelerating the pace of change. "Customers are no longer interested in silo-based apps or services. They demand holistic, end-to end solutions for their connected lives and companies understand the importance of convergence for those solutions to materialize, thus creating partnerships between many sectors," said Andrew Milroy, senior vice president at Frost & Sullivan . Milroy says connectivity is enabled by the proliferation of connected devices and digital technology enablers create disruptions in various commercial sectors that are already in transition, forcing

Entertainment, Media & Communications Market Update

Consolidation continues across the key sectors of the digital technology markets within America. According to the latest market study report from  PwC , entitled the "U.S. Entertainment, Media & Communications (EMC) Deal Insights," the second quarter (Q2) 2015 deal value reached $76 billion -- that's compared to $39 billion in the first quarter (Q1) 2015. Furthermore, PwC believes that this trend is being driven by major deals in the Cable ($63 billion), Internet & Information ($6 billion) and Communications ($3 billion) sub-sectors. The abandonment of a major Cable consolidation in Q1 2014 originally valued at $46.2 billion had opened the door for a new and even bigger proposed consolidation in Q1 2015 valued at $55.6 billion. Meanwhile, overall mergers and acquisitions (M&A) deal volume, which declined markedly in Q1 2015 (198), recovered some lost ground in Q2 2015 (208) – spurred by Advertising & Marketing (57), Publishing (37) and Internet &

Portable Computing Market Outlook Remains Flat

The personal computing (PC) market has now undergone numerous attempts to stimulate a high-growth revival, without success. Back in March of 2014, I shared a market update entitled " Final Closure: End of the Wintel Era is Now Undeniable ." To some market observers, that perspective may seem overly pessimistic. And yet, here we are in August of 2015 and the outlook doesn't appear to have materially changed. Granted, there's some pent-up demand that exists in the PC marketplace, but the real solution is unlikely to be 'more of the same' vendor response. ​The recent launch of Microsoft Windows 10 during the second half of 2015 now has many PC OEM vendors hoping that the revamped operating system software will trigger a replacement opportunity for aging laptop and notebook computers. According to the latest market study by ABI Research, total system shipments for portable computing are predicted to reach 165 million units for full-year 2015 -- which is esse

Latin American Wireline Telecom to Reach $44.8 Billion

Traditional wireline communication investment has stagnated in numerous developed markets around the globe, but there's still some upside opportunity for new infrastructure deployment within the emerging markets. Case in point: the number of fixed lines for voice and Internet services in Latin America will reach 163.8 million in 2015, that's an increase of 2.3 percent over 2014 deployments, according to the latest market study by Pyramid Research. This represents a broadband penetration rate of just 12 percent and a voice telephony penetration rate of 17 percent of the population. Clearly, the forward-looking growth potential is still significant. While the overall number of fixed lines will grow at a CAGR of 2.1 percent, fiber-to-the-home or business (FTTH/B) connections will increase at a CAGR of 34.9 percent over the next five years. "Growth within fixed communications markets will be mainly driven by the increase in broadband lines," said Marcelo Kawanami,

Ongoing Status-Quo for U.S. Broadband Internet Market

If you look back over the past decade, while the Global Networked Economy has evolved as the leading nations in the Asia-Pacific region continue to expand their infrastructure capabilities, the market for broadband Internet access in America has been remarkably stable. While the FCC has historically been tasked with administering the nation's communications laws and associated regulation, it has struggled to have an impact with the part of its charter that's focused on "supporting the nation's economy by ensuring an appropriate competitive framework for the unfolding of the communications revolution." By and large, even in the major metropolitan areas of the country, a duopoly still exists -- where the majority of wireline broadband internet subscribers are being served by either a single local incumbent cable company and/or a single legacy telephone service provider. Once again, Leichtman Research Group (LRG) has provided some illuminating market data that

Why the Asia-Pacific Region still Leads Fiber Broadband

Fiber-optic communications infrastructure is an economic catalyst within the developed regions of the world. In North America, Google Fiber is slowly entering new markets -- such as San Antonio , Texas -- but these deployments are a relatively small part of this broadband network evolution story. Worldwide broadband customer premise equipment (CPE) shipments are expected to reach 153.6 million by the end of 2015, according to the latest market study by ABI Research. "Fiber-optic broadband CPE device shipments are expected to increase 12 percent in 2015 although DSL and cable CPE device markets are likely to see a slight decline in total shipments," comments Jake Saunders, VP and practice director at ABI Research . Since wireline broadband network operators continue to upgrade their networks, the rate of consumer migration to more advanced broadband platforms is increasing -- even if it's slowly in most regions. The increasing fiber-optic broadband subscriber base

How Music-as-a-Service is Transforming the Industry

Recorded music is the most mature segment of mobile entertainment. Given the current spread across competing platforms, it's clear that online digital distribution is now the core of that industry. And, when offered a choice, fewer people will opt to own copies of music recordings. According to the latest market study by Juniper Research, revenue generated through advertising-based online music streaming is now forecast to exceed $1 Billion by 2017 -- that's up from $782 Million in 2015. However, the key music industry leaders are now attempting to slow this transition and exclude full-featured freemium services, with current offerings instead being restricted to basic 'radio' style features. Regardless, ad-based revenues are still expected to see strong growth as more people migrate to music streaming services, including some evolving offerings such as Google Play Music. The Juniper study found that while ad-based freemium services will continue to entice a

U.S. Smartphone Market Reaches a Pivotal Transition

The rigid American telecommunications services sector is about to undergo a significant change as the major mobile network service providers abandon phone subsidies and the previously required 2-year contracts for subscribers. The most apparent effect is likely to be many more consumers will choose to keep their working smartphones for a longer period, and fewer people may be able to rationalize the full cost of a new premium smartphone. That being said, it's highly likely that mobile operators are also going to see more customer churn, as smart people shop for better deals and consider alternative offers. T-Mobile seems to be in the most advantageous position as this trend unfolds, with Google Project Fi also potentially gaining market share. Meanwhile, the smartphone market in North America should witness greater demand for affordable (significantly lower-cost) new devices. This trend will favor the rising Chinese smartphone vendors. In contrast, the vendor likely to be ne

Personal Cloud: the Next Wave of Digital Enterprise Apps

More CIOs now accept that their most progressive Line of Business leaders are not a threat to their authority, they're merely driven to find the best-fit solutions to their business technology requirements. By 2018, 50 percent of traditional IT organizations will evolve to support assets and services outside their internal service portfolio, according to the latest market study by Gartner, Inc. In particular, Personal Cloud services are growing in importance, as more employees take control of their digital lives. Meanwhile, IT managers responsible for building the 'digital workplace' will be increasingly challenged, as the personal cloud phenomenon continues to evolve and intersect with official IT-sanctioned initiatives. "The personal cloud is the collection of content, services and tools that users assemble to fulfill their personal digital lifestyle needs across any device. Each user's personal cloud is unique and evolving, as the user's daily needs chan

Mobile Internet Growth is Enabled by Chinese Vendors

The evolution of the mobile communication ecosystem continues to advance in 2015, as the enabling smartphone vendor focus moves beyond what they make (products) towards "what they make possible" (socioeconomic freedom) within the emerging markets. Affordable smartphones are a key component of the Mobile Internet success story. The leading manufacturers in China are now producing a variety of low-cost, high-value devices that are empowering people around the globe to access the Web for the very first time. Juniper Research estimates that the number of smartphone shipments reached 338 million in the second quarter (Q2) of 2015 -- representing a year-over-year growth of 16 percent. The global smartphone market continued to mature this quarter, and the gap between vendor winners and losers grew larger. That being said, the ongoing competition is good news for all consumers. While the launch of the P8 helped Huawei to nearly 50 percent year-over-year growth, Xiaomi shippe

Evolution of Video Entertainment in Emerging Markets

The impact of alternative forms of video entertainment on the traditional pay-TV sector is now very much a global phenomena. What started as a small disruption in North America, with the introduction of Netflix and Hulu service offerings, has evolved into a transformation that reaches far and wide. Over-the-Top (OTT) television and video revenues within the Eastern Europe, Middle East and Africa (EEMEA) region, which includes nineteen countries, will reach $2.63 billion in 2020 -- that's up from only $52 million recorded in 2010, and the $616 million expected in 2015. According to the latest market study by Digital TV Research, from the $2.21 billion in revenues to be added between 2014 and 2020, Russia is forecast to contribute $795 million, with Turkey bringing in a further $219 million. Russia will remain the largest revenue earner in the region, by a wide margin. "OTT in Eastern Europe, Middle East & Africa will still be an immature sector by 2020, although thi

European Ecosystem for Intelligent Transport Systems

There's one place where the Internet of Things ( IoT ) already has a proven track record of success, that's the road transportation sector. For more than two decades, numerous Smart Cities and local municipalities around the world have used IP technologies to build systems that help to reduce traffic congestion. Some of the early pioneer projects where in progressive European nations. According to the latest worldwide market study by Berg Insight, the market value for Intelligent Transport Systems (ITS) deployed in public transport operations in Europe was €1.03 billion in 2014. Growing at a compound annual growth rate of 7.2 percent, investment in projects is expected to reach €1.46 billion by 2019. Berg Insight is of the opinion that the European market for ITS for public transport is in a growth phase which will continue throughout the forecast period. Across Europe, the fluctuating economic climate has had a limited effect on this market, as the public investments whi

Growth Potential for Mobile Point of Sale Payment Apps

At local retailers everywhere, the counter-top device where you swipe your credit or debit card is likely to become more mobile. Furthermore, mobile payment technologies are cropping up in numerous new application scenarios. Mobile point of sale (mPoS) growth continues as the technology deepens its reach across vertical industries, merchant tiers and geographies. 451 Research has forecast that the global mPoS installed base will grow from 13.3 million units today to 54.03 million units in 2019. Diverse factors including enterprise deployments, expansion into new vertical industries and financial inclusion in developing economies will serve to increase the installed base at a 32 percent CAGR during the forecast period. 451 Research defines mPoS as a smartphone, tablet or other consumer-oriented mobile device that functions as a point-of-sale terminal and facilitates payment card transactions through a wired or wireless connection to a card-accepting reader or device. The 451 Res

Smart Card App Adoption Moves Slowly in Government

Smart card technology use-cases typically include the authentication and identification of users across multiple applications and vertical sectors. This technology is most often associated with the financial services, telecom, government and transportation markets, but the application scenarios are evolving as other sectors explore the benefits. According to the latest market study by ABI Research, in 2014 a total of 454 million government ID smart card credentials -- primarily consisting of driver licenses, healthcare, national ID cards, and passports -- were issued, resulting in a year-over-year growth rate of 2.4 percent. Over the past two years the government ID market has been evolving slowly, reflecting short-term expectations. The worldwide market continues to be affected by ongoing prior project delays, along with an overall lack of new projects or contracts awarded in 2014. Russia and Japan placed a hold on their respective smart national ID card projects. Moreover, Fran

Affordable Smartphones Divide the Global Marketplace

The mobile communication subscriber landscape continues to shift and evolve as more markets reach saturation point across the globe. Most vendors have adjusted their product lines to incorporate low-cost mobile phone models that appeal to consumers in emerging nations, but a few still prefer to rely on the perception that their devices are worth a premium price. However, over time, these vendors must innovate to deliver greater value, and thereby maintain their profit margins. Brand cachet is very subjective -- even the most committed fans have their limits. Ultimately, everything is subject to change, including gadget fandom. According to the latest market study by International Data Corporation (IDC), vendors shipped a total of 337.2 million smartphones worldwide in the second quarter of 2015 (2Q15) -- that's up 11.6 percent from the 302.1 million units in 2Q14. Following an above average first quarter (1Q15), smartphone shipments were still able to remain slightly above th