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Silicon Valley’s Khosla Ventures raises $1B fund

Friday, October 14th, 2011

khosla-venturesKhosla Ventures, a top Silicon Valley venture capital firm, has raised a new $1.05 billion fund to help great entrepreneurs continue to harvest their potential for breakthrough and innovative ideas.

The Khosla Ventures IV fund will further the firm’s strategy to invest in early stage investments in the areas of clean tech, IT, mobile, and Internet technology.

“We have identified the ‘Clean Dozen’ companies in clean tech that can achieve unsubsidized market competitiveness and the ‘Cool Dozen’ categories in Internet and mobile in the post-PC world such as big data, emotion, interest graphs and consumer health,” said Khosla Ventures founder Vinod Khosla.

Khosla Ventures IV follows the Khosla Ventures III fund and Khosla Ventures seed fund. The Khosla Ventures III fund of $1 billion of investor commitments focused on traditional early stage and growth stage companies.

Khosla Ventures also previously raised $300 million for the Khosla Ventures seed fund which invests in high-risk, high-return opportunities, particularly groundbreaking science or internet developments, besides traditional venture investments.

Given the success of the previous funds Khosla Ventures does not anticipate any change in strategy. Khosla Ventures will continue to do Internet, mobile and the clean tech ventures roughly in the same ratio as previous funds. The firm will also continue to invest in IT and cloud services as well as new areas outside of traditional venture capital.

“We fundamentally invest in the companies that we expect to have significant impact, and that’s precisely what the Khosla Ventures IV fund will do,” said Khosla. “We don’t mind failing but do care that the impact be material if we do succeed; and we believe that our willingness to fail gives us an ability to succeed. We will continue to not compute IRR’s when investing as we believe in helping entrepreneurs build companies with high impact and high option value that are not subject to traditional financial metrics.”

Digital media driving U.S. communications industry growth

Wednesday, September 28th, 2011

forecast coverDriven largely by new media technologies, the U.S. Communications Industry spending is on pace to grow 4.1% in 2011 to $1.120 trillion and forecast to expand at a 5.5% compound annual growth rate (CAGR) in the 2010-2015 period, outpacing nominal GDP growth by 90 basis points, according to a new forecast released today by Veronis Suhler Stevenson (VSS), a private investment firm.

By the end of 2015, the Communications Industry will be the eighth-fastest-growing and fourth-largest U.S. economic component, according to the 25th edition of the VSS Communications Industry Forecast2011-15 .

Communications Industry growth in the 2010-2015 period will be driven primarily by the rapid convergence of computer, internet and wireless mobile technologies fueling the ongoing transformation of the media landscape and leading to new industries, platforms, channels, and consumer and institutional behaviors.

VSSF chart

Strong gains in six sectors

Consumer and Institutional end-users are demanding instant and constant access to information, and their investment in state-of-the-art information and technology services remains central to effective decision-making on many fronts.

In the forecast period, these trends are manifested by strong gains in four of the six Industry Sectors covered in the VSS Forecast: Targeted Media, the fastest growing industry sector, with an expected 7.9% CAGR in the period, fueled largely by the Pure-Play Consumer Internet & Mobile Services segment.

That will post a CAGR of 16.2% – outpacing GDP growth by over 3x; Business & Professional Information & Services, which is expected to generate a 7.3% CAGR; Education and Training Media & Services – including Not-for-Profit Instructional Media and K-12 Instructional Media – which is anticipated to produce a CAGR of 5.2%; and Entertainment & Leisure Media, which will record a 5.6% CAGR from 2010 to 2015.

Major segments that have been negatively impacted in recent years by the migration to digital platforms and economic factors are expected to stabilize during the forecast period, according to the VSS Forecast.

The Traditional Consumer Advertising Media sector, which includes the Broadcast Television, Consumer Magazine Publishing, and Broadcast & Satellite Radio segments, among others, will generate growth in the forecast period, albeit trailing GDP, as brand-related digital products and delivery methods gain a stronger foothold for most traditional media outlets.

Business & professional services sector growing

John Suhler, co-founder, president and general partner of VSS, said, “Business & Professional Information & Services continues to be a fast-growing sector, in part, because it has long embraced digital content and related software services and delivery.

“Also, the sectors that held up well in the last economic downturn – Targeted Media, Business & Professional Information & Services, Education & Training Media & Services, and Entertainment & Leisure Media – are all expected to record solid growth in the forecast period, thanks in large part to their migration to digital platforms and delivery methods.”

Time spent with the internet, including traditional media brand-related digital and pure-play platforms – covering usage at home, school and work – increased 6.0% in 2010 to 397 hours per person.

The growth came from consumers spending more time with social media and workers using software to access and manipulate information. Time spent with mobile media in 2010 soared 49.7% to 77 hours per person, thanks in large part to increased smartphone penetration.

With the introduction and rapid adoption of computer tablets by consumers and businesses, those factors are also expected to fuel a 35.3% increase in time spent with wireless media in 2011, reaching 104 hours per person. The segment will post a 19.8% CAGR during the forecast period, with consumer purchases of more e-books, music, mobile applications and streaming video driving the increase.

VSSForecast2

Targeted Media fastest growing sector

Accordingly, Targeted Media – which includes products and services from operators that provide advertising and marketing messages to vertically defined consumer or business niches – will be the fastest-growing sector in 2011 and during the forecast period, increasing 7.1% to $199.66 billion this year and posting a 7.9% CAGR in the 2010-2015 period, reaching $272.50 billion.

In addition to the Pure-Play Consumer Internet & Mobile Services segment, growth in Targeted Media will come from Branded Entertainment Marketing, where Consumer Events and Paid Product Placements will post CAGRs of 8.5% and 9.7%, respectively, to end 2015 with spending of $33.36 billion and $6.15 billion.

Who is most likely to upgrade to iPhone5? (infographic)

Monday, September 26th, 2011

The iPhone5 is right around the digital corner, and PaidViewpoint, Ask Your Target Market (AYTM) and Mashable have created an infographic to help you decide if you should upgrade when it comes out. It’s the first of three planned infographics on the topic.

infographic

Norton study pegs cybercrime cost at $114B annually

Wednesday, September 7th, 2011

NortonFor the first time a Norton study calculates the cost of global cybercrime: $114 billion annually.(i) Based on the value victims surveyed placed on time lost due to their cybercrime experiences, an additional $274 billion was lost.(ii).

With 431 million adult victims globally in the past year and at an annual price of $388 billion globally based on financial losses and time lost, cybercrime costs the world significantly more than the global black market in marijuana, cocaine and heroin combined ($288 billion).(iii)

According to the Norton Cybercrime Report 2011 more than two thirds of online adults (69 percent) have been a victim of cybercrime in their lifetime. Every second 14 adults become a victim of cybercrime, resulting in more than one million cybercrime victims every day.(iv) For the first time, the Norton Cybercrime Report reveals that 10 percent of adults online have experienced cybercrime on their mobile phone.

In fact, the Symantec Internet Security Threat Report, Volume 16(v) reported there were 42 percent more mobile vulnerabilities in 2010 compared to 2009 – a sign that cybercriminals are starting to focus their efforts on the mobile space.  The number of reported new mobile operating system vulnerabilities increased, from 115 in 2009 to 163 in 2010.   In addition to threats on mobile devices, increased social networking and a lack of protection are likely to be some of the main culprits behind the growing number of cybercrime victims.

Male, Millennial, Mobile

The study identifies men between 18 and 31 years old who access the Internet from their mobile phone as even more likely victims: in this group four in five (80 percent) have fallen prey to cybercrime in their lifetime. Globally, the most common – and most preventable – type of cybercrime is computer viruses and malware with 54 percent of respondents saying they have experienced it in their lifetime.

Viruses are followed by online scams (11 percent) and phishing messages (10 percent). Earlier this year the Symantec Internet Security Threat Report, Volume 16, found more than 286 million unique variations of malicious software (“malware”) compared to the 240 million reported in 2009, representing a 19 percent increase.(vi)

“There is a serious disconnect in how people view the threat of cybercrime,” said Adam Palmer, Norton Lead Cybersecurity Advisor. “Cybercrime is much more prevalent than people realize. Over the past 12 months, three times as many adults surveyed have suffered from online crime versus offline crime, yet less than a third of respondents think they are more likely to become a victim of cybercrime than physical world crime in the next year.

And while 89 percent of respondents agree that more needs to be done to bring cybercriminals to justice, fighting cybercrime is a shared responsibility. It requires us all to be more alert and to invest in our online smarts and safety.”

The disconnect between awareness and action is further illustrated by the fact that while 74 percent of respondents say they are always aware of cybercrime, many are not taking the necessary precautions.

Forty-one percent of adults indicated they don’t have an up to date security software suite to protect their personal information online. In addition, less than half review credit card statements regularly for fraud (47 percent), and 61 percent don’t use complex passwords or change them regularly. Among those who access the Internet via their mobile phone, only 16 percent install the most up to date mobile security.

For more findings from the Norton Cybercrime Report globally and by country

Norton Cybercrime Report Methodology

Between February 6, 2011 and March 14, 2011, StrategyOne conducted interviews with 19,636 people and included 12,704 adults, aged 18 and  over 4,553 children aged 8-17 years and 2,379 grade 1-11 teachers from 24 countries (Australia, Brazil,Canada, China, France, Germany, India, Italy, Japan, New Zealand, Spain, Sweden, United Kingdom, United States, Belgium,Denmark, Holland, Hong Kong, Mexico, South Africa, Singapore, Poland, Switzerland, United Arab Emirates).

The margin of error for the total sample of adults (n=12,704) is + 0.87% at the 95% level of confidence. The global data has been weighted to ensure all countries have equal representation: adults to n500.

(i)  Findings are extrapolations based upon results from a survey conducted in 24 countries among adults 18-64. The financial cost of cybercrime in the last year ($114bn) is calculated as follows: Victims over past 12 months (per country) x average financial cost of cybercrime (per country in US currency).

(ii)  The value of time lost due to cybercrime experiences in the last year ($274 billion) is calculated as follows: Victims over past 12 months (per country) x average time cost of cybercrime (per country in US currency). Figure shown in the sum of all countries total cost.

(iii)  431 million victims in 24 countries over past 12 months is calculated as follows: Latest research from NCR shows 69% of adults in 24 countries have been a victim of cybercrime ever and of these 65% have been a victim in the past 12 months. Online population per country (24 country total = 802,872,752 according to CIA World Factbook) x % cybercrime ever per country x % cybercrime past 12 months per country = 431,504,885 (sum of 24 countries)

Total cost of cybercrime is calculated as follows: Total financial cost $114billion plus value attributed to lost time trying to resolve cybercrime $274billion = $388 billion

Total value of the world’s marijuana, cocaine and heroin market ($288 billion) is calculated as follows:

(iv)  14 cybercrime victims per second and one million cybercrime victims per day calculated as follows: victims over past 12 months (as above) 431,504,885 / 365 days per year /  24 hours / 60 minutes / 60 seconds

(v)  Source: Symantec Internet Security Threat Report published April 2011

AT&T says it will bring 5,000 jobs back to the U.S. if T-Mobile merger closes

Wednesday, August 31st, 2011

At&tAT&T said today that it will bring 5,000 wireless call center jobs back to the United States if its merger with T-Mobile closes.

The 5,000 new wireless call center jobs at AT&T will offer among the nation’s most highly competitive wages and benefits. AT&T, which has not yet determined where in the U.S. the new jobs will be located, is the nation’s largest employer of full-time union employees and the only unionized major U.S. wireless carrier.

“At a time when many Americans are struggling and our economy faces significant challenges, we’re pleased that the T-Mobile merger allows us to bring 5,000 jobs back to the United States and significantly increase our investment here,” said Randall Stephenson, AT&T Chairman and CEO. “This merger and today’s commitment are good for our employees, our customers and our country.”

Today’s announcement represents the largest commitment by an individual American company to bring jobs back to the U.S. since the economic crisis began in 2008.

Also, AT&T has committed as part of the T-Mobile merger to increase its U.S. infrastructure investment by more than $8 billion.  According to an analysis by the Economic Policy Institute that was commissioned by the Communications Workers of America, AT&T’s increased investment is estimated to produce up to approximately 96,000 new U.S. jobs.

AT&T said today’s jobs commitment does not change its previous guidance on the expected overall merger synergies.

The company is pushing hard to have the merger approved despite some Congressional opposition. Some fear the merger would reduce competition and lead to higher prices for mobile services.

Touting merger benefits

It says that beyond the jobs created, AT&T’s acquisition of T-Mobile USA provides a fast, efficient and certain solution to the impending exhaustion of wireless spectrum in many markets, which limits both companies’ ability to meet the ongoing explosive customer demand for mobile broadband. The uniquely complementary nature of AT&T and T-Mobile’s network assets will allow the combined company to add wireless network capacity – the functional equivalent of new spectrum – sooner than any other alternative.

AT&T promotes a number of benefits it says the merger will bring. The additional wireless network capacity will enable AT&T to offer better service — fewer dropped and blocked calls, and faster data speeds. Plus, the economic scale, additional spectrum and other benefits resulting from the merger will enable AT&T to deliver high-speed 4G LTE mobile broadband service to 97 percent of the U.S. population, or 55 million more Americans than it would without the merger. Reaching 97 percent of the population with LTE will create a much more extensive and robust mobile broadband platform that will fuel growth and investment throughout the country, the company says.

It adds that the benefits of the AT&T and T-Mobile merger have been recognized by numerous elected officials throughout the country, including 27 governors, more than 100 mayors, 11 state attorneys general, 79 Democratic Members of the U.S. House of Representatives and more than 150 chambers of commerce from 40 states, as well as a dozen labor unions and dozens of high-tech companies, such as Facebook, Microsoft, Yahoo! and Oracle.

Quixey raises $3.8M for “What do you want to do?” app search engine

Monday, August 29th, 2011

QuixeyFinding the right mobile app for your needs can be more of a pain in the nether regions than necessary. A West Coast startup just landed funding to help mobile device users find the apps that do what they want without jumping through a lot of search hoops. Palo Alto, CA-based  Quixey — a search engine for apps –  has raised $3.8 million in Series A funding. The $3.8 million investment will help fuel growth and partnership development.

Quixey invented a new type of search — functional search — specifically for apps. Quixey’s functional search scans blogs, review sites, forums and social media sites to learn exactly what each app can do. Quixey has hundreds of pieces of data about each app. Quixey searches apps across all platforms — including mobile, web, desktop and browser apps.

Quixey is fundamentally different from other search engines. Other search engines require users to know an app’s name or official description to find the right app. Since Quixey knows exactly what each app can do, users can search by answering the question, “What do you want to do?”

The investment was co-led by U.S. Venture Partners and WI Harper Group with participation by Webb Investment Network in addition to a follow-up investment by Innovation Endeavors.

More than 33M Americans shop using their mobile phone

Tuesday, August 9th, 2011

smartphonesMarketers attempting to understand consumer habits that influence mobile marketing can get a revealing glimpse into the mindset of the mobile consumer through the newly released 2011 Mobile Consumer Report from Experian Simmons.

Sometimes reading these surveys, we’re reminded of what one venture capitalist said at a recent TechMedia digital conference (the next is Digital East in Tysons Corner, VA in September). What do you see looming in the future, he was asked. “Mobile, mobile, mobile,” he said, adding ironically, “Wow, big insight.” This survey, like a good bit of other data, certainly bears that out.

According to exclusive research from Experian Simmons, a part of Experian Marketing Services, 29 percent of cell phone owners today believe their phone will be the primary device for their entertainment needs in the future.

The report provides marketers with vivid insights that they need to prepare for the mobile revolution, including how consumers use their phones to manage social connections, consume media, get information, plan shopping trips, interact with mobile advertising and more.

“The explosion in usage of mobile technologies is an industry game-changer, and marketers need reliable insights to better understand this rapidly changing landscape,” said Ken Wollenberg, general manager of Experian Simmons. “This report will help them devise plans that are timely, relevant and more effective in driving incremental sales and building brand awareness in the mobile space.”

Other findings from the report include:

  • More than nine out of 10 adults, seven out of 10 teens and one out of five kids own a mobile phone
  • Fifty-six percent of smartphone owners access the Internet from their phone; 27 percent watch video
  • Thirty percent of iPhone owners want to make purchases in stores using their phone
  • Twenty percent of social networkers access their account from their phone
  • Sixteen percent of mobile owners downloaded a mobile app last month

This report also includes an illuminating profile of five distinct mobile consumer segments developed by Experian Simmons, including a look at each segment’s receptivity to traditional and mobile advertising.

To download a copy of the Experian Simmons 2011 Mobile Consumer Report, see: www.experian.com/simmons/mobile2011.

Infographic: One-third of Americans would give up sex before their mobile phones

Wednesday, August 3rd, 2011

smartphones

Millennials are the most connected generation and use mobile for shopping, going online and more.

Americans are willing to give up some of life’s greatest pleasures in order to hang on to their mobile phones, according to the results of a recent survey from telenav (Nasdaq:TNAV).

Not surprisingly, smartphone users were more attached to their devices than were feature phone users, with iPhone users leading the pack. In fact, iPhone users were more likely than their Android or BlackBerry counterparts to spend a week without their significant other, exercise or shoes — rather than go a week without their phone.

While 22 percent of all respondents said they would rather give up their toothbrush than their phone for a week, this number jumped to a whopping 40 percent among iPhone users.

Halitosis and other priority quirks aside, 83 percent of iPhone users thought other iPhone users would make the best romantic partners.

Even among feature phone users, however, TeleNav’s survey showed respondents’ strong attachment to their mobile phones. Nearly half of all respondents said they sleep with their phone next to them, including 38 percent of feature phone users and 66 percent of smartphone users.

From differences between iPhone, Android, and BlackBerry users to the snap judgments people make based on the type of phone someone carries, TeleNav’s latest survey sheds light on just how important mobile phones have become in Americans’ lives.

How willing are you . . .

Life is full of simple pleasures, so having to choose between one of those many pleasures — such as coffee, caffeine or even sex — and your mobile phone can be difficult.

  • One-third of all respondents would be more willing to give up sex for a week than their mobile phone.
    • Of the respondents who indicated they would be more willing to give up sex than their mobile phone for a week, 70% were women.
  • 54% of all respondents would be more willing to give up exercise for a week than their mobile phone.
  • So what about our guilty pleasures? 55% of respondents would be more willing to give up caffeine for a week than their mobile phone, 63% would be more willing to give up chocolate, and 70% would be willing to forego alcohol.
  • One in five respondents are more willing to go shoeless than phoneless for a week.
    • iPhone users (43%) were more likely to say they’d go a week without shoes than Android users (27%) or BlackBerry users (25%).

Smartphone vs. Feature Phone

As more Americans jump on the smartphone bandwagon, results of TeleNav’s survey indicate that a person’s choice in phones may impact some of their daily behaviors.

  • It appears the phones we choose may also reflect our manners, as 26% of smartphone users admitted to using their phone frequently at the dinner table, compared with just6% of feature phone users.
  • Some couples may find themselves saying it’s either me or the phone. 22% of smartphone users said they’d rather go a week without seeing their significant otherthan to have to forfeit their phone compared to just 14% of feature phone users.
  • How do we value our phones over other technologies? Smartphone owners were twice as likely as feature phone users to choose their phone over their laptop/computer.
  • Smartphone users were three times more likely to admit that they judge people based on the type of phone they carry.

OS Showdown

Survey results suggest that not only does the type of phone a person uses reflect the choices they make, but also the smartphone operating system they choose.

  • iPhone users were twice as likely than Android users to have spent more than $40 on apps for their current phone.
  • Nearly half of Android users said their phone reflects their overall sense of style — more than iPhone users (35%). 43% of BlackBerry users felt their phones reflected their overall sense of style.
  • While a strong majority of iPhone users (83%) thought other iPhone users would make the best romantic partners, and a strong majority of Android users (70%) selected other Android users, only 48% of BlackBerry users thought other BlackBerry users would make for the best romantic partners.

For additional findings and an infographic highlighting the results see: www.telenav.com/about/pr-summer-travel/report-20110803.html

Infographic:

Infographic

Users prefer ad-supported free apps, watching as much or more broadcast TV

Tuesday, August 2nd, 2011

TVSometimes the best things in life are still free. When rating the attributes of video applications, like YouTube, Hulu or iTunes for smartphones and tablets, 63 percent of respondents said that “free or low subscription rates” is the most important attribute for a video application. In addition, 65 percent of video app users say that word-of-mouth plays an important role in deciding which video apps to use, according to a study released by CTAM.

“This new research uncovers valuable insights into how people are using video apps, how they complement their TV viewing behavior and what’s most important to them. The results are encouraging, including the finding that consumers are open to advertisements on apps in exchange for a free or a lower costs service and generally even more receptive to ads on tablet apps,” said Indira Venkat, senior vice president, strategic research and consumer insights, The Weather Channel Companies, and member of the CTAM Research Committee overseeing this study.

The results are encouraging for marketers, including the finding that consumers are open to advertisements on apps in exchange for a free or a lower costs service and generally even more receptive to ads on tablet apps,” said Indira Venkat, senior vice president, strategic research and consumer insights, The Weather Channel Companies, and member of the CTAM Research Committee overseeing this study.

This research, conducted by Nielsen and commissioned by the Cable & Telecommunications Association for Marketing (CTAM) is the first to feature both qualitative and quantitative consumer reactions to video applications on both mobile and in-home internet-connected devices.

Video app users watching same or more TV

According to the research, roughly eighty-five percent of video app users say they are watching the same amount or more, regularly scheduled TV since using video apps. In fact, for many, it enhances viewership of regularly scheduled TV. Nearly half, 46 percent of video app users report being more engaged with the programs or networks associated with the video apps after accessing them. And 35 percent report that video app usage causes them to visit the network or program website associated with the video app more than they had before they started using the app.

In another first, the CTAM study found that “Sync-to-TV” apps actually increase consumers’ engagement with television programming rather than distracting from it. Sync-to-TV refers to a second screen app (in this case an iPad or iPad 2) that recognizes a program broadcast through a TV set that launches interactive “modules” on the second screen corresponding with the programming or show playing on the primary screen.

Consumers reported that the sync-to-TV experience makes them more likely to pay heightened attention to the program thus increasing their engagement with the program and the advertising and keeping them tuned in longer. One sync-to-TV respondent commented, “It made a difference because it was right there [on my lap]. I don’t have to go to the website and type out the url or go searching for the same thing on my browser.”

Of the online survey respondents, roughly 95 percent of video app users have used a downloaded, or pre-installed, video app (paid or free) via a mobile device (smartphone, iPod touch or tablet) and roughly 80 percent via in-home device in the last 30 days.

Three-quarters access video apps at home

Roughly three-quarters of all video app users most often access video apps at home. Approximately 50 percent of those who use video apps on their smartphones and iPod touches report they most often access video apps on these devices when they are in a car.

These, and other CTAM findings, follow Nielsen’s Q1 2011 Mobile Connected Device Report illustrating explosive growth in video app usage by a combined 15 million* smartphone and tablet users.

*This figure refers to the unique mobile subscribers in the U.S. it does not include multiple devices owned by many subscribers or data-only devices, such as data cards.

Apple the world’s largest smartphone vendor, Samsung knocks Nokia from 2nd place

Friday, July 29th, 2011

iPhone 4

Apple's iPhone 4

Global smartphone shipments grew an impressive 76 percent annually to reach a record 110 million units in the second quarter of 2011. Both Apple and Samsung overtook long-time volume leader Nokia for the top two spots in our rankings.

Alex Spektor, senior analyst at Strategy Analytics, said, “Global smartphone shipments grew a healthy 76 percent annually to reach a record 110 million units in Q2 2011. We had previously reported on Apple becoming the largest smartphone vendor in terms of revenue and profits. Now, just four years after the release of the original iPhone, Apple has become the world’s largest smartphone vendor by volume with 18 percent market share. Apple’s growth remained strong as it expanded distribution worldwide, particularly in China and Asia.”

Neil Mawston, director at Strategy Analytics, added, “Samsung overtook Nokia to become the world’s second largest smartphone vendor in Q2 2011. Samsung’s shipments grew a huge 520 percent annually, for 17 percent global smartphone market share. Samsung’s Galaxy portfolio has proven popular, especially the high-tier S2 Android model.”

Tom Kang, director at Strategy Analytics, added, “Having become the first ever vendor to ship 100 million smartphones in a single year during 2010, long-time leader Nokia has slipped two places in our rankings in Q2 2011. The vendor’s 15 percent global smartphone market share is less than half of what it was just one year earlier, as the industry awaits Nokia’s pending transition to Windows Phone 7.”

Exhibit 1: Global Smartphone Vendor Shipments and Market Share in Q2 2011
Global Smartphone Vendor Shipments (Millions of Units) Q2 ’10 Q2 ’11
Apple 8.4 20.3
Samsung 3.1 19.2
Nokia 23.8 16.7
Others 27.1 53.8
Total 62.4 110.0
Global Smartphone Vendor Marketshare % Q2 ’10 Q2 ’11
Apple 13.5 % 18.5 %
Samsung 5.0 % 17.5 %
Nokia 38.1 % 15.2 %
Others 43.4 % 48.9 %
Total 100.0 % 100.0 %
Growth Year-over-Year % 50.4 % 76.3 %

The full reportApple Becomes World’s No.1 Smartphone Vendor in Q2 2011, is published by the Strategy Analytics Wireless Smartphone Strategies (WSS) service.

One of four wireless subscriptions will be pre-paid by the end of 2011

Friday, July 29th, 2011

New Millennium Research CouncilBy the end of 2011, total prepaid/no-contract wireless subscriptions in the U.S. will represent for one out of four such accounts, a new high-water mark reflecting the recent and rapid erosion of consumer reliance on more expensive contract-based cell phone plans.

According to new data released today by the New Millennium Research Council (NMRC) think tank:

  • About three out of five new wireless subscriptions in 2010 were for prepaid cell phone service versus contract-based “postpaid” service – a margin of more than eight million new no-contract prepaid subscriptions versus just under new 4.8 million postpaid subscriptions.   (Source:  J.P. Morgan, May 2011, covering the period from the fourth quarter of 2009 to the fourth quarter of 2010.)
  • While traditional prepaid service subscriptions lost ground from the fourth quarter of 2009 to the fourth quarter of 2010, unlimited prepaid posted strong gains with 7.4 million new subscribers, up 45 percent over that one-year period.   (Source:  J.P. Morgan.)
  • Based on current growth trends, the total non-wholesale wireless market in the U.S. will reach about 290 million by the end of calendar year 2011.   For the first time, non-contract prepaid subscriptions will account for roughly 25 percent of the total wireless picture, moving the U.S. more in line with wider use of prepaid in other nations.   (Source:  Mobile Ecosystem.)

The new prepaid trends are very much in keeping with previous forecasts by the New Millennium Research Council:

  • In March 2009, NMRC was the first to correctly forecast an imminent shift by cell phone consumers from more expensive contract-based cell phone service with often hefty cancellation penalties to less expensive no-contract prepaid service.
  • In March 2010, NMRC reported that – for the first quarter ever — the number of new prepaid wireless phone customers in U.S. eclipsed the number of new contract-based phone customers during the final three months of 2009.
  • Last November, NMRC released survey data showing that one in five U.S. cell phone consumers with contract-based service – an estimated 24.6 million American adults – could switch in 2011 to less expensive unlimited prepaid wireless service with no early-cancellation penalty.

Sam Simon, senior fellow, New Millennium Research Council, said, “NMRC was 100 percent on the money in forecasting that 2010 would be the year of prepaid wireless service.  It now looks like 2011 will be an even bigger year for no-contract wireless as more and more consumers realize the extent to which they can save hundreds of dollars each year with unlimited prepaid service while also avoiding the needless entanglements of restrictive contract-based cell phone service.   This penny pinching will go on even as others are attracted to prepaid by unlimited plans and for connected devices.”

Telecommunications analyst Mark Lowenstein, managing director, Mobile Ecosystem, said: “Prepaid services continue to become more mainstream, as attractive devices such as smartphones are offered by the leading prepaid operators. Also, we are seeing the market for additional connected devices such as iPads becoming a key part of prepaid subscriber growth.”

Report says iPhone 5 launch coming in September

Monday, July 25th, 2011

iPhone 4

Apple's iPhone 4

AT&T is getting ready for the launch of the iPhone 5 in September, according to Boy Genius Report, which focuses on the mobile sector. It quotes a “proven source” as saying AT&T expects a major influx of traffic to its stores in September.

Other reports have said Apple will announce the iPhone 5 in August and start selling it in September. The MacRumors site says Apple is bolstering staff in its stores in August and September.

The new version of the popular mobile phone is supposed to be thinner with a larger screen (4 inches) and will probably run the firm’s dual-core A5 chip and add an 8MP camera.

Wired Wisconsin chides Sen. Kohl for opposing T-Moble, AT&T merger

Thursday, July 21st, 2011

Herb Kohl

Senator Herb Kohl

Wisconsin Senator Herb Kohl has submitted a letter to US Attorney General Eric Holder and FCC Chairman Julius Genachowski expressing his opposition to the proposed AT&T – T-Mobile USA merger now under review by the Department of Justice and Federal Communications Commission. Kohl says the merger would result in higher prices for service and a reduction in consumer choice.

His move prompted some in-state opposition, however.

Thad Nation, executive director of Wired Wisconsin, issued this statement in response to the news:

“I am disappointed by Senator Herb Kohl’s decision to withhold his support for a merger that can provide real benefits to Wisconsin residents. As proposed, this merger would enhance and improve access to wireless broadband for Wisconsin residents through private sector investment in critical infrastructure, especially in rural areas.

“Individuals in many parts of Wisconsin often lack access to high-speed Internet, quality cell service and other amenities. This merger would help to change that by providing improved services and access to people throughout Wisconsin. Because of this identified, statewide need, I do not agree with Senator Kohl on this matter and I believe this is the wrong decision for Wisconsin consumers.”

Wired Wisconsin is the Wisconsin-based project of Midwest Consumers for Choice and Competition (MCCC), a non-profit organization of individual consumers interested in technology, broadband, and telecommunication issues with state projects throughout the Midwest region. The project will work to support an environment for innovative technology, high-tech job creation, and economic growth.

So what do you think? Will the T-Mobile, AT&T merger be good for consumers or will it, as Sen. Kohl maintains, result in higher service charges and less choice?

Smartphone shipments growing by more than 240 percent, to hit 1B by 2016

Wednesday, July 20th, 2011

smartphones

The number of global smartphone shipments will reach one billion per annum in 2016, up from 302 million in 2010, according to a new report by analyst firm Juniper Research.

Smartphones — traditionally high-end handsets — will make-up the majority of shipments in five years’ time, as this type of device becomes available at lower price points. Competition amongst vendors offering premium smartphones is intense, and so Juniper believes the best opportunity for new players is through economy models (those with an unsubsidised retail value of $150 or less).

Report author Daniel Ashdown explains: “in developed markets, many consumers will want to upgrade from a feature phone to a smartphone, but still pay a feature phone price. In emerging markets though, lower average consumer spending power and lack of operator subsidies will make a low price point essential.” Juniper predicts that open-source operating systems — predominantly Android — combined with the falling cost of key components will make this possible.

However, the market for standard smartphones ($151-$399) and premium smartphones ($400 and above) will remain robust:

  • New technologies are arriving on these devices — including NFC, 3D and Biometrics;
  • Features of other devices continue to be integrated into smartphones, including gamepads; and,
  • Smartphones are reaching the market which can morph into other devices — notably tablets and netbooks.

The report provides substantial primary research on smartphone hardware specifications and analysis of recent trends and developments. Other primary research examines smartphone plans and handset subsidies, and the impact on subscriber retention costs for operators.

A whitepaper The Smartphone Opportunity and further details of the study, ‘Smartphone Evolution Strategies: Premium, Standard and Economy Markets 2011-2016′ are available at www.juniperresearch.com

Banks not taking full advantage of online platforms and digital technologies, survey says

Thursday, July 14th, 2011

Cable & WirelessBanks are not taking full advantage of their online banking platforms, despite increasing customer engagement in the channel, according to a consumer study by Cable&Wireless Worldwide.

Sixty percent of consumers say that online banking has become the most valuable factor to engagement over the past two years, ranking it higher in value than banks’ trustworthiness and even their return on their money in the bank.

Cable&Wireless Worldwide has long-term relationships with most of the world’s leading banks and in the UK provides communication solutions to eight out of 10 of the leading retail banks. This includes integrated social media and online channels with banks contact centre and branch environments, and also connectivity to over 70% of contact centre agents with their customers and 4,000 UK ATMs.

The research also finds that online channels typically deliver only functional banking services, but that around half of customers want banks to incorporate social and human aspects of customer service – such as more personalised customer service and tailored advice – into online banking.

Untapped customer contact opportunities

The study suggests there are untapped oppportunies for customer contact in new technologies such as mobile technology, social networking and video conferencing. Customers are not using newer communications channels for buying products, but rather as channels for gleaning advice and information. But only 1% of consumers, who have sought advice from banks in the last month, have done so through video conferencing. Mobile phone applications (1%) and social networking (1%) are of similarly low incidence.

Michele Metcalfe, Director of Banking & Financial Services at Cable&Wireless Worldwide, says, “Consumers increasingly prefer remote interaction, but also want good customer service, greater trustworthiness and a fair level of engagement with the banks. These findings suggest that financial institutions have an opportunity to better meet customer preferences by investing in the right online innovation.”

- 33% of bank customers have been called Stressed Technologies because they have busy lifestyles (professional full time jobs). They find using technology easy and convenient and they use the online system for both functional banking, problems solving and buying new products. For them, social and human aspects of banking (ie more personalised customer service, tailored advice and help) delivered online would improve their satisfaction with banks.

- 22% are Stressed Complainers (like the Stressed Technologies but by their nature they are hard to please and very demanding). These adults still make heavy use of the online system but when problems arise they switch to telephone contact. This group of adults indicate a potential for enhancing the online system with greater compliant handling capabilities.

Further detail on the research findings.

Consumers prefer providing reviews via texting, voice, or web surveys

Tuesday, July 12th, 2011

BuzzbeeperConsumers now overwhelmingly prefer to provide reviews and customer satisfaction survey feedback via SMS message vs. voice or web surveys, and do so with dramatically higher participation rates than in traditional web-based reviews.

These are the results found in customer trials by Buzzbeeper, Inc., a provider of real-time customer satisfaction survey and reputation management services via text, voice, or web. This mirrors the general trend of increasing cellular phone usage by Americans, where text messages are sent and received at a 75 percent higher rate than voice calls.

Texting: not just for teens anymore. Mashable reports that in the general US population, those 35 years and older now account for 60% of the population, and 50% of the text message senders.

Texting option at Point-of-Service increases customer participation rates. Chicken-N-Mo , a popular restaurant in Spokane, Washington, uses the Buzzbeeper system to gather real-time customer feedback and reviews. In six weeks Chicken-N-Mo received 68 customer reviews. 95 percent were via text message. This far exceeds the reviews via any other service. (During the same period customers left 2 reviews on Yelp and 2 on Facebook.)

Texting most popular for real estate agent as well. John King, a Broker Associate with Keller Williams Realty in Palo Alto, California used Buzzbeeper to survey his client base. Clients were asked to rate their experience with King, and given the option of responding via text message, voice response, or a link to a web survey. In two weeks King received 53 reviews (compared to four Yelp! reviews in over two years). Text responses exceeded voice and web combined.

You always have to ask yourself how much you can generalize from these results. Certainly among the younger generation, texting is preferred over email, voice or other means if our experience is any guide. We know younger users connected via a variety of devices who don’t even listen to voice messages any more. If you want them to respond, you have to text them.

We’ve also seen that behavior extending to more mature digital media users in the last year, if not so all-consumingly so.

Links to customer web sites referenced:

www.chicken-and-more.com/reviews.html

www.akrealty.com/Testimonials/?ID=3502

New Chrome browser; Net as fundamental to advertisers as TV

Wednesday, June 8th, 2011

Google ChromeGoogle has released the new version of its Chrome web browser. Chrome 12 has improved security, privacy and graphics features, such as checking downloads for malware and the ability to decide what data gets stored on your computer.

It also includes support for 3D CSS and the ability to search for Chrome apps from the address bar. You can get it here: Chrome 12.

We’ve switched to using Chrome (from Mozilla’s Firefox) as our primary web browser because it’s both faster and uses fewer system resources than Firefox, which has grown bloated the last year or two. We’ve had a number of problems with Firefox and none with Chrome.

Online ad spending to grow 20 percent in 2011

Online ad spending is expected to reach $31.3 billion this year, a strong 20 percent bump up from 2010, according to eMarketer. It says steady increases in online ad spending are projected through 2015, when it will reach nearly $50 billion.

“The internet has become as fundamental as television to advertisers,” said eMarketer principal analyst David Hallerman. “As consumers continue to increase their time spent online and as a resurgent economy continues to bolster ad budgets, we’re going to continue to see an influx of dollars toward the internet.”

He added that ad formats such as video and social media and mobile channels are contributing to the increased spending. In fact, online videos are the fastest growing format, although search continues to take the lion’s share of ad dollars during the projected period. Hallerman said advertisers increasing see online brand advertising as effective, particularly video ads.

Just today we’ve posted stories on TechJournal South pointing to the increase in mobile advertising and the increasing business use of social media to attract new customers. You can see these trends developing explosively quarter by quarter now.

Florida-based SkyCross beams in $11M for advanced wireless antennas

Tuesday, May 24th, 2011

SkyCrossVIERA, FL – SkyCross, which develops and makes advanced antenna and radio frequency solutions, has closed on an $11 million, the first installment of its E round of financing. The company said it expects to close a second tranche in the round, up to $15 million, by early June. It says this is likely to be its final round of equity financing.

The capital raised will be used to support the company’s rapidly increasing business in Asia and the United States.

Significantly, the round includes new equity from DOCOMO Capital as a strategic investor. DOCOMO Capital is a corporate venture arm of NTT DOCOMO, the world’s leading mobile operator. Existing investors including TL Ventures, Investor Growth Capital, Gabriel Venture Partners, Intel Capital, and a group of long standing individual investors also participated.

SkyCross continues to grow due to strong global demand for the company’s unique RF technology and design expertise for wireless products, such as tablets, smartphones, and multiband USB modems. Increasingly, these devices require multiple antennas, creative 3D design and manufacturing techniques, and 4G MIMO functionality for LTE.

“SkyCross technology and expertise are key factors in meeting the growing, worldwide demand for 4G/LTE wireless devices,” said Tomoya Hemmi, President and CEO of DOCOMO Capital, Inc. “MIMO antenna technology is a key enabler of LTE performance, and SkyCross solutions address this global market need. We are pleased to participate in this round as a new strategic investor.”

Atlanta Digital Summit nears sell-out, fewer than 40 seats left

Wednesday, May 11th, 2011

Digital SummitATLANTA – Fewer than 40 seats remain for the Digital Summit, which is bringing more than 60 presentations fouces on the latest best practices and trends in social media, search marketing, mobile, cloud, design, e-commerce, analytics and entrepreneurship to the Cobb Galleria in Atlanta May 16-17.

Among the features:

Over 60 presentations focused on the latest best practices and trends in social media, search marketing, mobile, cloud, design/usability, e-commerce, analytics, entrepreneurship and more!
Keynote presentation by “Social Media King” and New York Times Bestselling author, Gary Vaynerchuk
Hear from top brands such as Google, Coca-Cola, Groupon, Salesforce, CNN, YouTube, USA Today, the NBA, comScore, The Daily and more!
Network with hundreds of senior marketers, entrepreneurs and interactive strategists from companies like Apple, CBS, Dell, Discovery Channel, AT&T, Fox News, Dell, IBM, Autotrader & Turner.
Mix with top early-stage Internet startups at the Demo Showcase.

Register now and receive a free copy of Gary Vaynerchuck’s “The Thank You Economy,” which you can pick up at the event.

Participants include:

  • Gary Vaynerchuk, author, Host, DailyGrape.com
  • Natalie Johnson, Manager, Digital and Social Media, Coca-Cola
  • Tom Lowry, Head of Industry, Technology, Google Inc.
  • Matt Drinkwater, VP of Sales East Coast, Groupon
  • Mitch Free, CEO, MFG.com
  • Phil Agcaoili, Chief Information Security Officer, Cox Communications
  • Marc Ferrentino, Chief Technical Architect, Salesforce.com
  • Ainsley TeGrotenhuis, Director of Digital Marketing, CNN
  • Martin Green, Chief Operating Officer, Meebo
  • Maureen Schumacher, Sales Director, YouTube/Google
  • Taro Naruse, Senior Director of Product Management, NBA Digital
  • Emily Jerome Schroeder, Usability Analyst, AutoTrader.com
  • Dallas Lawrence, Contributor, Forbes.comMashable.com
  • Raj Narang, Social Media Insights, Dell Computers
  • Christine Cook, SVP, Sales and Advertising Operations, The Daily
  • Pankaj Bagzai, Manager: Marketing US & Canada, Impetus
  • John Williamson, CEO & Founder, Qualvu
  • Trish Nettleship, Business Social Media & Online Community Lead, AT&T
  • James Andrews, Founder, SocialPeople.tv
  • Eli R. Goodman, Search Evangelist, comScore, Inc
  • Erika Brookes, VP of Marketing, Vitrue
  • Allen Nance, President and Founder, WhatCounts
  • Francis Lavelle, Director of Analytics, HowStuffWorks.com
  • Stuart Roesel, Director Customer Insights, Analytics & Strategy, EarthLink
  • Tim Harrington, CEO, eRollover
  • Dana Todd, VP Performance Innovation, Performics
  • Jai Williams, Email Marketing Manager, InterContinental Hotels Group
  • Jennifer Dunphy, VP of Sales, Vayu Media
  • Laurie Hood, VP of Product Marketing, Silverpop
  • Scott Huie, Sr. Mgr. Business Advisory Services, Ernst & Young
  • Bert DuMars, Vice President E-Business, Newell Rubbermaid
  • Lindsay Wassell, Partner & Consultant, KeyphraSEOlogy
  • Allison Fabella, SEO & Social Media Mgr, Atlanta Journal-Constitution
  • David Jones, Partner, Southern Capitol Ventures
  • Tony Haile,eneral Manager, Chartbeat
  • Kyle Ford, Director, Mogwee at Ning, Inc, Ning
  • Matt Kaplan, CRO, My Damn Channel
  • Scott Huie, Business Advisory Services, Ernst & Young
  • Jane Reinberg, User Experience Architect, Genex
  • Sig Mosley, President, Imlay Investments
  • Gerard Bush – Chief Creative Director, The brpr Group
  • Tony Adam, Director of Online Marketing, Myspace
  • Benjamin Rudolph, President & CEO, Relevance Advisors
  • Jamie Bristow, Founder, Mynonprofitmatch.com
  • Michael Tavani, Co-Founder, Scoutmob
  • Alan Taetle, General Partner, Noro-Moseley Partners
  • Donna DeMarco, Co-Founder, Viddler
  • Debbie Curtis-Magley, Public Relations Manager, UPS
  • Elain O’Gorman, CMO, The Receivables Exchange
  • Brian Cohen, Principle, Visiture
  • Chip Hazard, General Partner, Flybridge Capital Partners
  • David Hoff, Founder & VP of Technology, CloudSherpas
  • Brian Brown, VP Biz Dev/Creative Director, RMM Online Advertising
  • Larry Pearson, Area VP, Impetus Technologies
  • Joel Lunenfeld, CEO, Moxie Interactive
  • Peter Schoenrock, SVP Product Development, Equifax
  • Zack Pousman, Dir. of Strategy & User Experience, IQ
  • Ryan Woolley, VP Client Services, Response Mine

Fewer than 100 seats remain for Atlanta Digital Summit 2011

Friday, May 6th, 2011

Digital SummitATLANTA – Fewer than 100 seats remain for TechMedia’s Digital Summit at the Cobb Galleria in Atlanta May 16-17. “Social Media King” Gary Vaynerchuk keynotes the event, which features more than 50 thought-leaders from top brands.

Brands such as Google, Coca-Cola, Groupon, Salesforce, CNN, YouTube, USA Today, the NBA, comScore, Meebo, and many others are featured in more than 60 presentations on the latest trends in social media, search marketing, mobile, cloud, usability design, e-commerce, analytics and entrepreneurship.

In addition, you’ll get to network with entrepreneurs, venture capitalists, senior marketers, and interactive strategists from Apple, CBS, Dell, Discovery Channel, AT&T, Fox News, the NHL, Dell, IBM, Autotrader & Turner, among others.

A demo showcase features early-stage Internet start-ups.

There is still time to reserve your free copy of Vaynerchuck’s best selling book, “The Thank You Economy” when you register (the book will be waiting for you at the event) when you register.

The lineup includes:

Natalie Johnson, Manager, Digital and Social Media, Coca-Cola
Tom Lowry, Head of Industry, Technology, Google Inc.
Matt Drinkwater, VP of Sales East Coast, Groupon
Mitch Free, CEO, MFG.com
Phil Agcaoili, Chief Information Security Officer, Cox Communications
Marc Ferrentino, Chief Technical Architect, Salesforce.com
Ainsley TeGrotenhuis, Director of Digital Marketing, CNN
Martin Green, Chief Operating Officer, Meebo
Maureen Schumacher, Sales Director, YouTube/Google
Taro Naruse, Senior Director of Product Management, NBA Digital
Emily Jerome Schroeder, Usability Analyst, AutoTrader.com
Dallas Lawrence, Contributor, Forbes.com & Mashable.com
Raj Narang, Social Media Insights, Dell Computers
Christine Cook, SVP, Sales and Advertising Operations, The Daily
Pankaj Bagzai, Manager: Marketing US & Canada, Impetus
John Williamson, CEO & Founder, Qualvu
Trish Nettleship, Business Social Media & Online Community Lead, AT&T
James Andrews, Founder, SocialPeople.tv
Eli R. Goodman, Search Evangelist, comScore, Inc
Erika Brookes, VP of Marketing, Vitrue
Allen Nance, President and Founder, WhatCounts
Francis Lavelle, Director of Analytics, HowStuffWorks.com
Stuart Roesel, Director Customer Insights, Analytics & Strategy, EarthLink
Tim Harrington, CEO, eRollover
Dana Todd, VP Performance Innovation, Performics
Jai Williams, Email Marketing Manager, InterContinental Hotels Group
Jennifer Dunphy, VP of Sales, Vayu Media
Laurie Hood, VP of Product Marketing, Silverpop
Scott Huie, Sr. Mgr. Business Advisory Services, Ernst & Young
Bert DuMars, Vice President E-Business, Newell Rubbermaid
Lindsay Wassell, Partner & Consultant, KeyphraSEOlogy
Allison Fabella, SEO & Social Media Mgr, The Atlanta Journal-Constitution
David Jones, Partner, Southern Capitol Ventures
Tony Haile, General Manager, Chartbeat
Cristian Cussen, Managing Director of Business Development, Ning
Matt Kaplan, CRO, My Damn Channel
Scott Huie, Business Advisory Services, Ernst & Young
Jane Reinberg, User Experience Architect, Genex
Sig Mosley, President, Imlay Investments
Gerard Bush – Chief Creative Director, The brpr Group
Tony Adam, Director of Online Marketing, Myspace
Benjamin Rudolph, President & CEO, Relevance Advisors
Jamie Bristow, Founder, Mynonprofitmatch.com
Michael Tavani, Co-Founder, Scoutmob
Alan Taetle, General Partner, Noro-Moseley Partners
Donna DeMarco, Co-Founder, Viddler
Debbie Curtis-Magley, Public Relations Manager, UPS
Jim Tobin, CEO, Ignite Social Media
Elain O’Gorman, CMO, The Receivables Exchange
Brian Cohen, Principle, Visiture
Chip Hazard, General Partner, Flybridge Capital Partners
David Hoff, Founder & VP of Technology, CloudSherpas
Michael Schneider, General Sales Manager, RMM Online Advertising
David Jones, Partner, South Capitol Ventures
Larry Pearson, Area VP, Impetus Technologies
Joel Lunenfeld, CEO, Moxie Interactive
Peter Schoenrock, SVP Product Development, Equifax
Zack Pousman, Dir. of Strategy & User Experience, IQ