gaining a foothold in the shifting sands of the devices marketplace - insights from tbr’s 4q12...

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TECHNOLOGY BUSINESS RESEARCH, INC.

TBR’s Computing Business QuarterlySM

Research Highlights and OutlookTechnology Business Research (TBR) Quarterly Webinar Series

April 11, 2013

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2 TBR Quarterly Webinar Series | 4.11.13 | www.tbri.com | ©2013 Technology Business Research, Inc.

Computing Business Quarterly Research Highlights and Outlook: Webinar PresenterJack NarcottaAnalyst – Computing Business Quarterly (CBQ)

Mobile Ecosystems (Android, iOS, Windows, BlackBerry) PCs Tablets Smartphones Thick/Thin/Zero Clients

Twitter: @JackN_TBREmail: [email protected]

Ezra Gottheil

Executive Analyst - Computing Business Quarterly (CBQ)

PCs

Tablets

Social Media

Twitter: @egottheil

Email : [email protected]

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Computing Devices Landscape 4Q12 and 2013 Outlook The PC isn’t dead, but it needs to evolve Tablets are an important influencer Mobility, not just smartphones, is dictating

success

CBQ Research Highlights and Outlook: Agenda

Desktop PCs

Tablets

Smartphones

Notebook PCs

TBR’s Devices Benchmark provides analysis and insight into the strategies and influence of leading PC and mobile device makers

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Companies with wider stables of devices that embrace or focus on mobile technology are better positioned to adapt to change.

Alternative operating systems provide new paths to revenue and new customers for PC vendors.

Aggressive PC vendors will fill ecosystems with innovative products to succeed against mobile and tablet rivals

CBQ 4Q12 Research Highlights and 2013 Outlook

Computing Devices Vendor Trends for 2013

PCs remain essential, powerful tools but are being used less. PC-centric vendors need to change their strategies from insulate

to innovate.

Tablets are exerting a tremendous amount of influence in enterprise computing.

Business software compatibility and security controls are paramount, something Android and iOS tablets have yet to offer.IMAGE SOURCE: WIKIPEDIA

IMAGE SOURCE: HP.COM

IMAGE SOURCE: GIZMODO.COM

IMAGE SOURCE: NEOWIN.NET

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Smartphone vendors Samsung and Apple control the devices marketplace, leaving other vendors scrambling for stability

CBQ 4Q12 Research Highlights and Outlook: The Devices Landscape

Smartphones own – and will continue to own – the lion’s share of revenue and profits PC revenue and profits are shrinking; larger Windows OEMs are well-protected against

competition from smaller rivals

$-

$20,000,000

$40,000,000

$60,000,000

$80,000,000

$100,000,000

$120,000,000

4Q11 1Q12 2Q12 3Q12 4Q12

In T

hous

ands

USD

Calendar Quarter

DEVICE ECOSYSTEM REVENUE POOL TBR

SOURCE: TBR DEVICES ECOSYSTEM STUDY FOR MICROSOFT

$-

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

4Q11 1Q12 2Q12 3Q12 4Q12

In T

hous

ands

USD

Calendar Quarter

DEVICE ECOSYSTEM PROFIT POOL

Smartphone

Tablet

Desktop

Notebook

SOURCE: TBR DEVICES ECOSYSTEM STUDY FOR MICROSOFT

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Chromebooks provide PC-centric vendors the opportunity to re-establish themselves in cloud- and mobile-computing.

Consumers will slowly embrace Windows 8 throughout the year, while businesses will continue to delay purchases through 2H13.

CBQ 4Q12 Research Highlights and 2013 Outlook - PC

PC Vendor Trends for 2013

PCs remain the hub of computing activities, but Windows 8 is hindering purchases of secondary and tertiary devices.

The emergence of Chrome OS-powered Chromebooks will provide an opportunity to remedy struggling consumer PC businesses.

Chromebooks’ revenue impact will be limited through 1H13, but PC vendors will use them as an entry point into their portfolio.

Much like traditional PC vendors, Chromebook vendors will integrate software and services as differentiators.

PC vendors are expanding beyond Windows into Google’s ecosystem to create revenue streams for their struggling consumer PC businesses

IMAGE SOURCE: DVICE.COM

IMAGE SOURCE: SAMSUNG.COM


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CBQ 4Q12 Research Highlights: Key Trends - PC

Mobile-centric device vendors with established footholds in emerging markets will retain leadership positions

PC vendors post positive gross margins, but the pool of profit is shrinking

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Windows 8 tablets, such as the Pro, aim to bridge the gap between consumer and commercial usage models.

The unified OS experience across PC, tablet and smartphones will streamline enterprise deployments of Windows 8.

CBQ 4Q12 Research Highlights and 2013 Outlook - Tablets

Tablet Vendor Trends for 2013

Samsung’s SAFE and KNOX security initiatives are threats to Windows 8 tablets.

Apple’s iPads are a fixture in 94% of the Fortune 500.

Windows 8 tablets will open the enterprise tablet market for PC vendors, but Android and iOS tablets have already established beachheads

Enterprise tablet computing remains in flux, a stark contrast to consumer markets.

Commercial entities continue to weigh the benefits of allowing consumer-grade devices into their networks.

IMAGE SOURCE: SAMSUNG.COM

IMAGE SOURCE: MICROSOFT.COM

IMAGE SOURCE: TECHTARGET.COM

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CBQ 4Q12 Research Highlights: Key Trends - Tablets

Smaller, lower-cost Android tablets are eroding Apple’s market share, but the company’s devices remain the gold standard for profits

Android tablets are poised to overtake Apple’s iPads in 2013 as users evaluate Windows 8

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CBQ 4Q12 Research Highlights and 2013 Outlook - Smartphones

Android OEMs remain on the offensive, driving down pricing to fuel market dominance

Android smartphone OEMs are targeting feature phone customers bases in emerging markets to drive growth.

In 2016 smartphones will outnumber feature phones 2-to-1.

To position for growth in emerging economies, dominant smartphone vendors leverage their heft in developed markets

Windows Phone is gaining traction, but is struggling to rise above a flood of lower-cost alternatives from Android OEMs.

HTC, Nokia, Motorola and RIM are vulnerable.IMAGE SOURCES: RIM, NOKIA

Android OEMs will design products specifically intended to attack Nokia and RIM (BlackBerry) in China and India.

Samsung’s Rex smartphone-like feature phones are $75 and appeal to users seeking to upgrade from less-capable devices.

IMAGE SOURCE: GEEK.COM

IMAGE SOURCE: FINANCE.YAHOO.COM

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Demand for smartphones from Chinese consumers is fueling torrid market share growth but hindering profitability of smaller Android OEMs

CBQ 4Q12 Research Highlights: Key Trends - Smartphones

Mobile vendors with a broad product portfolio are well-positioned in emerging markets

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Companies with wider stables of devices that embrace or focus on mobile technology are better positioned to adapt to change.

Alternative operating systems provide new paths to revenue and new customers for PC vendors.

Aggressive PC vendors will fill ecosystems with innovative products to counter mobile and tablet rivals


Computing Devices Vendor Trends for 2013

PCs remain essential, powerful tools but are being used less. PC-centric vendors need to change their strategies from insulate

to innovate.

Tablets are exerting a tremendous amount of influence in enterprise computing.

Business software compatibility and security controls are paramount, something Android and iOS tablets have yet to offer.IMAGE SOURCE: WIKIPEDIA


IMAGE SOURCE: GIZMODO.COM

IMAGE SOURCE: NEOWIN.NET

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How handset vendors are leveraging the feature phone market to build brand awareness and a customer base for smartphone sales

Understanding how emerging markets will drive handset development and go-to-market strategies

New form factors and evolving usage patterns are disrupting the PC landscape, creating growth opportunities for device vendors in 2013

CBQ 1Q13 Research Highlights

Computing Devices Focus Areas for 1Q13

The emergence of simple, low-cost cloud-connected devices How Windows 8 will counter the consumerization of the

enterprise

Analyze vendors’ approach to the low-cost tablet space and the convergence of tablets with large-screen smartphones

Determine how Windows RT and x86-based Windows 8 tablets will be successfulIMAGE SOURCE: HOUSELTECH.COM

IMAGE SOURCE: FORBES.COM

IMAGE SOURCE: BETANEWS.COM

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For additional information, please contact:

John Spooner James McIlroyDirector, Computing Practice Vice President of [email protected] [email protected]

Jack NarcottaAnalyst – Computing Group

Twitter: @JackN_TBREmail: [email protected]

Technology Business Research, Inc.Hampton, N.H.Twitter: @TBRIncSlideShare: www.slideshare.net/tbr_market_insightYouTube: www.youtube.com/user/TBRIChannelLinkedIn: www.linkedin.com/company/technology-business-research

CBQ Quarterly Research Highlights and Outlook: Q & A

Questions?Ezra Gottheil

Executive Analyst - Computing Group

Twitter: @egottheil

Email : [email protected]

TBR


Thank You


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TECHNOLOGY BUSINESS RESEARCH, INC.

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