devices break down the walls: new form factors emerge
DESCRIPTION
Device vendors are exploring variations on the original form factors of PCs, smartphone and tablets Device vendors have introduced in-between products, such as phablets and 2-in-1s, and more closely married keyboards to tablets, such as the Surface and the Asus T-100, to differentiate themselves from competitors. Google, influenced by the simplicity of tablets, introduced the PC-like Chromebook and, working with Asus, the Chromebox for Meetings appliance. While smaller tablets have gained market share, some vendors are introducing tablets larger than the original iPad. The original form factors remain; however, iOS and Android devices have become smaller, and the phablet devotees have gravitated toward larger models. The 2-in-1 PC is ahead of the tablet-plus configuration for multipurpose devices. In what direction is the market moving? Will the market share for phablets increase if and when Apple introduces a larger smartphone? Can a vendor grab attention with a tablet-centered physical ecosystem, as Dell is trying to do with the Venue 11 Pro? On Tuesday, May 13, Principal Analyst Ezra Gottheil and Analyst Jack Narcotta gave a webinar that incorporated the latest feedback from the market with results of TBR’s device user surveys to predict the evolution of form factors in the devices market. Questions during the discussion included: 1. What are the winning configurations, and which form factors do they displace? 2. Which markets fit these configurations? 3. What are buyers looking for, and how will this change?TRANSCRIPT
TBR
TECHNOLOGY BUSINESS RESEARCH, INC.
TBR’s Computing Business QuarterlySM WebinarComputing Devices: Devices Break Down the Walls
May 13, 2014
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TBR Quarterly Webinar Series |5.13.14 | www.tbri.com | ©2014 Technology Business Research Inc.
Ezra GottheilPrincipal Analyst, Devices
Email: [email protected]: @egottheil
Jack NarcottaAnalyst, Devices
Email: [email protected]: @JackN_TBR
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Mobile devices are growing up fast
A large market with slowing growth drives invention and proliferation
The environment and market are ready
The formula for success
Where the action is
Dynamics of a maturing market3
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The world is ready for new form factors and devices
The technology is ready
The personal portable hub
Users know what to do
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The market is ready
Differentiation and invention
Fewer land rushes
Buyers are asking, “What’s next?”
More money is available
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Winning strategy
Upside for buyer
Downside for buyer
A clear path
A good story
Luck
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Current arenas
The return of the keyboard
Finding the sweet spots
Do you really want to look like a geek?
Home things
Medical, safety
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Smartphones come back to Earth
The big slowdown
The two causes
Changing buying behavior
Changing vendor strategies
Long-term strategies
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Smartphone sales growth has hit a wall
The growth slowdown will continue
We believe growth will go negative
Then growth will resume
But only slow growth
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Two reasons for the slowdown
Market saturation
Product maturation
“Adjustment phase” of the market
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Smartphone Installed Base
Market saturation
Very Rapid Growth
Slow Growth
Saturation
Population and Economic Growth
Lower Device Prices
Lower Data Prices
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Smartphone Unit Sales
Market saturation, cont.
Very Rapid Growth
Saturation — Decline in New Smartphone Customers
Replacements +
but
ASPs Decline
Replacement Cycles Lengthen
Population and Economic Growth, Lower Device and Data Prices
LTE Drives Rapid Refresh
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Product maturation
Saturation comes from success
So does maturation
Most smartphones are good
Performance is good enough
Customers are satisfied
Mainstream products from most vendors are similar
There are fewer reasons to switch brands
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Product maturation, cont.
New features mean less to customers
Product doesn’t drive brand
There are fewer reasons to replace older handsets, except for changes such as LTE
Replacement cycles are lengthening
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NowThen
Saturation and maturation are changing buying behavior
Customersseek performance Customers assume performance
Price is less important Price is more important
Service is secondary Service is primary
New features excite customers New features bore customers
Customers want to do new things Customers want less trouble
Design matters Design matters even more
Durability doesn’t matter much Durability matters a lot
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NowThen
Vendor strategies must change
Win new customers Take customers from competition
Satisfy network providers Delight network providers
Be an attractive choice Pull customers to network providers
Add many new features Add killer features
Promote new features Explain value of new feature
Build “hero” smartphones Build specialized smartphones
Emphasize performance Emphasize reliability and durability
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Vendor strategy
Customers will tend to stay loyal to their brand
Old message:
“Our smartphone is great”
New messages are more complicated:
“Switch for a better experience”
“The improvement is worth the effort to switch”
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TBR Quarterly Webinar Series |5.13.14 | www.tbri.com | ©2014 Technology Business Research Inc.
Ezra GottheilPrincipal Analyst, Devices
Email: [email protected]: @egottheilTelephone: 603.758.1853
Jack NarcottaAnalyst, Devices
Email: [email protected]: @JackN_TBRTelephone: 603.758.1818
TBR Devices Webinar — Webinar Contact Information
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For additional information on TBR’s research capabilities, please contact:
John Spooner James McIlroyDirector — Computing Business Practice Vice President of SalesEmail: [email protected] Email: [email protected]:603.929.1166 Telephone:603.929.1166
Twitter: @TBRincSlideShare: www.slideshare.net/TBR_Market_InsightYouTube: www.youtube.com/user/TBRIChannelLinkedIn: www.linkedin.com/company/technology-business-research
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PC vendors
Handset vendors
Tablet vendors
Computing Devices Benchmark: Portfolio
The Computing Devices Benchmark provides ongoing coverage of PC, tablet and smartphone vendors and their strategies
Benchmarked Device Vendors
• Amazon• Samsung• ASUS• Motorola• LG• RIM• HTC• Huawei• Nokia• ZTE
• HP• Dell• Apple• Toshiba• Panasonic• Acer• Lenovo• Fujitsu Devices• Sony• Microsoft
Nonbenchmarked Influencers• Microsoft• Google• Intel• AMD
• ARM• Qualcomm• NVIDIA• Broadcom
TBR will rank and score the top brand-name device companies and chronicle their interactions with key ecosystem partners that influence the devices business
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Partner Ecosystem
Content Ecosystem
Platform
Ecosyste
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Computing practice syndicated research coverage
Device Benchmark Vendors(Benchmark XLS data is also available)
Data Center Benchmark Vendors (Benchmark XLS data is also available) Computing Vendor Coverage
• Acer*• Amazon• Apple• Asus*• BlackBerry• Dell• Fujitsu• HP• HTC• Huawei• Lenovo
• LG• Motorola*• Nokia*• Panasonic*• Samsung*• Sony• Toshiba• ZTE
• Brocade• Bull• Cisco• Dell• EMC• Fujitsu• HDS• HP
• Huawei• IBM• Juniper• NEC• NetApp• Oracle• Quantum• Unisys
• Acer*• Apple• Asus*• Dell• EMC• Fujitsu• Google• HP• IBM• Intel• Lenovo• Microsoft• NetApp• Samsung*• Sony• Toshiba Corporate IT Buying Behavior & Customer Satisfaction Studies
• Desktops• Notebooks• Services and Support
• x86-Based Servers• Apple Enterprise PCs*• Cisco UCS*
TBR Computing Practice Syndicated Coverage
*Semiannual publication
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TECHNOLOGY BUSINESS RESEARCH, INC.
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