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How Annual Tablet Sales Will Explode To 450 Million By 2016
In the two years since Apple launched the iPad, the tablet market has exploded. When one includes Android and other tablets as well as e-readers, nearly 100 million tablets were sold in 2011.
Tablets and smartphones will not completely displace PCs. But they will quickly overwhelm them in terms of unit sales. When, where, how and to what degree this occurs will have tremendous implications across many businesses and industries.
In a recent report from BI Intelligence, we estimate that tablet sales will reach 450 million units by 2016, and lay out the key analysis behind these forecasts.
Access the Full Reports By Signing Up For A Free Trial Today >>>
Here are some of the growth drivers:
- The average sales price of tablets are falling: Through the first six months of the year, tablet prices have seen a pretty steep drop off, despite the iPad’s continued dominance. The ASP of the iPad is down more than 11% from its 2011 price. The introduction of mini tablets, beginning with the Kindle Fire, disrupted the pricing dynamics of the market and will drive the huge drop in ASP over the next few years.
- Increased penetration in existing markets: Penetration will increase in markets where tablets already have a foothold. Increased adoption will be driven by falling prices and the tablet market’s subsumption of the e-reader market, which sold more than 20 million devices in 2011. The replacement rate of tablets is also somewhere between smartphones and PCs, indicating that sales can scale and grow rapidly.
- Tablets are disruptive: Tablets are poor substitute for PCs if you are trying to run data intensive spreadsheets, but they vastly improve upon the media consumption experience. Tablet owners consume a huge amount of content, from news to magazines to movies to TV shows. And again, they are cheaper and getting even cheaper every day.
- Multiple emerging markets are ripe for tablet disruption: As we discuss in! our mob ile enterprise report, tablets have only started making their way into the enterprise — a hardware market that will top $420 billion this year. Education is another opportunity; U.S. K-12 schools spend about $5.5 billion on textbooks in 2010, and college students spend hundreds of dollars per semester on textbooks they’ll only use once.
The report is full of charts and data that can be downloaded and put to use.
In full, the report:
- Explains why the average selling price of tablets has fallen, and will continue to fall
- Analyzes why tablets will benefit from increased penetration in existing markets
- Details why tablets are indeed a disruptive technology
- Explores the growth opportunities that exist in enterprise, education, and emerging markets
For full access to our Tablet Market report, sign up for a free trial subscription today.
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How HTML5 Will Take Over Mobile Apps
Source: http://www.businessinsider.com/bii-report-how-html5-will-take-over-mobile-apps-2012-10
HTML5 is a new technology that allows developers to build rich web-based apps that run on any device via a standard web browser.
Many think it will save the web, rendering native platform-dependent apps obsolete.
So, which will win? Native apps or HTML5?
A recent report from BI Intelligence explains why we think HTML5 will win out, and what an HTML future will look like for consumers, developers, and brands.
Access The Full Report By Signing Up For A Free Trial Today >>
Here’s how HTML5 will eventually win out:
- The most popular types of apps will be early adapters: HTML5 is particularly useful for media apps and “access” apps (those that let you access an existing accounts via a mobile device, such as banks).This is because apps that display text, images and video and monetize through ads and subscriptions can be done more cheaply and effectively through HTML5.
- The increasing prevalence of “shell apps” will push things ! along: < /strong>These are apps that have a native “shell” so they can get in the app stores, but where the entire functionality is done via HTML5. These “hybrid” apps get the best of both worlds and mean more developing resources will shift to HTML5 over time. These “wrapper” apps will also end up on the web as HTML5 improves.
- HTML5 will eventually fulfill its promise as a classic disruptive technology: It’s currently less good than native apps at lots of things. But the technology is improving. And it is cheaper to produce HTML5 apps than native apps. Over time, the new, cheaper technology of HTML5 will get better and better, and as it does it will start to eat the rest of the market.
- But, it will still take a while: HTML5 comes from a consortium, which means the technology will evolve slowly. It still isn’t ready for prime time, as there are many things that HTML5 apps just can’t do right now — as Mark Zuckerberg confirmed in his first post-IPO interview with TechCrunch. So HTML5 will likely progressively replace apps as the feature set improves! , starti ng with media and “access” apps and ending with games, which require the richness of native software more than any other app type.
- What HTML5 is, giving an overview of how it is a technology done by committee
- Why the HTML5-vs-Apps debate matters, breaking down its impact on distribution, monetization, platform power and network effects, and functionality.
- The pluses and minuses of HTML5 vs. native apps, comparing each by cost, user experience, features, distribution, and monetization.
- How and when HTML5 will take over, laying out how it has all the hallmarks of a disruptive technology.
- The success of an HTML5 pioneer, The Financial Times.
- What an HTML5 future will look like, with the promise of richer and more interactive experiences.
To access BI Intelligence’s full report on HTML5, sign up for a free trial subscription here.
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Why The Debate Matters, And Who Will Win
HTML5 is a new technology that allows developers to build rich web-based apps that run on any device via a standard web browser.
Many think it will save the web, rendering native platform-dependent apps obsolete.
So, which will win? Native apps or HTML5?
A recent report from BI Intelligence explains why we think HTML5 will win out, and what an HTML future will look like for consumers, developers, and brands.
Access The Full Report By Signing Up For A Free Trial Today >>
Here’s why the Apps-vs-HTML5 debate matters:
- Distribution: Native apps are distributed through app stores and markets controlled by the owners of the platforms. HTML5 is distributed through the rules of the open web: the link economy.
- Monetization: Native apps come with one-click purchase options built into mobile platforms. HTML5 apps will tend to be monetized more through advertising, because payments will be less user-friendly.
- Platform power and network effects: Developers have to conform with Apple’s rules. Apple’s market share, meanwhile, creates network effects and lock-in. If and when developers can build excelle! nt iPhone and iPad functionality on the web using HTML5, developers can cut Apple out of the loop. This will reduce the network effects of Apple’s platform.
- Functionality: Right now, native apps can do a lot more than HTML5 apps. HTML5 apps will get better, but not as fast as some HTML5 advocates think.
In full, the special report analyzes:
- What HTML5 is, giving an overview of how it is a technology done by committee.
- Why the HTML5-vs-Apps debate matters, breaking down its impact on distribution, monetization, platform power and network effects, and functionality.
- The pluses and minuses of HTML5 vs. native apps, comparing each by cost, user experience, features, distribution, and monetization.
- How and when HTML5 will take over, laying out how it has all the hallmarks of a disruptive technology.
- The success of an HTML5 pioneer, The Financial Times.
- What an HTML5 future will look like, with the promise of richer and more interactive experiences.
To access BI Intelligence’s full report on HTML5, sign up for a free trial subscription here.
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There’s A New Tool For Brands To Launch Instagram Campaigns
Source: http://www.businessinsider.com/new-tool-for-brands-instagram-campaigns-2012-9
With 100 million (and counting) registered users on Instagram and 5 billion photos shared, brands are clamoring to find new ways to engage with users on — not to mention monetize — the new social media platform.
This comes in many forms, from companies creating a new Instagram persona to them integrating the photo stream site onto their actual company websites. Urban Outfitters owned Free People, for example, uses Instagrammers who post shots in the retailers’ jeans as models on the company website.
In the same vein, VenueSeen launched a management and CRM tool that that allows brands to run Instagram campaigns that integrate onto their company websites.
The tool aggregates photos that have been labeled with a specific hashtag and brings them to a company’s campaign page. Instagrammers can then claim their photograph and collect prizes, coupons, and other incentives the company have put in place. This allows for easy company/consumer interaction and gives brands customer contact information.
“The price for a campaign can range from under $1000 a month to tens of thousands, depending on the scope and reach of the project,” CEO Brian Zuercher told Business Insider.
VenueSeen originally was a social media management and monitoring tool that helped brands identify fans based on hashtags, check-ins, comme! nts, and location-specific photos on Instagram and FourSquare. It worked with The Columbus Zoo, Macaroni Grill and other restaurants and vendors.
It now has an Instagram specific campaign tool. “The question was, how do we get to the next level and see Instagram as a monetization strategy,” CEO Brian Zuercher explained.
Warrior, a New Balance owned company that sells Lacrosse equipment, was the first brand to use VenueSeen for an Instagram campaign.
See the rest of the story at Business Insider
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The Winner Of The Apps vs. Browsers War Is… (AAPL, MSFT, GOOG)
Source: http://www.businessinsider.com/bii-report-the-winner-of-the-apps-vs-browsers-war-is-2012-9
The mobile web is unique because it has two distinct access points: browsers and apps.
In a special report on Mobile Usage just out from BI Intelligence, we analyze patterns around all types of mobile behavior, including the recent trends in mobile browser and app usage.
Access The Full Report By Signing Up For A Free Trial Today >>
So, apps vs. browsers. Who is winning?
- Apps have finally taken a slight lead in overall penetration: The percentage of all U.S. mobile users accessing a mobile browser increased from 29% in February 2010 to 50% in May. The percentage of U.S. mobile users accessing downloaded apps rose from 28% to 51% over the same period.
- People spend far more time in apps: Americans spend more time per day on apps that they do on the web — both desktop and mobile combined.
- Time spent in apps is surging: According to Nielsen, the minutes spent per month on apps more than doubled from March 2011 to March 2012. Many of our most time-consuming mobile activities — games, social networks, and music — are accessed through apps. Time spent on the mobile web was basically flat.
- But there is plenty of growth to go around: Even though time spent on mobile browsers is flat, audiences will still grow with increased smartphone penetration. And with certain companies are starting to offer vastly improved mobile browser options, the tides can always turn.
- This may not be a winner-takes-all competition: As we detail in a recent report, HTML5 web-based apps are a more promising technology long-term, and could completely change the playing field.
The report has lots of charts and data that can be easily accessed, downloaded, and put to use.
In full, the report also looks at:
To access BI Intelligence’s full report on Mobile Usage, sign up for a free trial subscription here.
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Here’s How Consumers Are Shopping With Their Phones
Source: http://www.businessinsider.com/bii-report-heres-how-consumers-are-shopping-with-their-phones-2012-9
Mobile devices are playing an increasingly large role in commerce.
In a special report out from BI Intelligence, we analyze patterns around all types of mobile behavior, including how people use their phones to shop.
Access The Full Report By Signing Up For A Free Trial Today>>
So, how are consumers using their phones in the shopping process?
- Buying items directly: Mobile is driving an increasingly large share of traffic to ecommerce sites. Forrester Research forecasts U.S. mobile commerce to hit $10 billion this year, up from $6 billion in 2010. Mobile sales made up 6.6% of Cyber Monday sales in 2011, more than double the percentage of the previous year.
- Opening emails for discounts and coupons: Email is a crucial marketing ! channel for companies like Gilt Groupe, Groupon, and LivingSocial. Since many consumers access email mainly through their phones, mobile has become an important marketing channel.
- Research and comparison shopping: Mobile shoppers are likely to use their phones in-store to compare prices and consult on potential purchases with friends. An analysis by Deloitte estimates mobile will influence $158 billion of in-person retail sales this year. This is a big problem for brick-and-mortar retailers, as it brings ecommerce competition directly into their stores.
- In-Store Payments: Consumers are beginning to make payments directly with their phones. According to Nielsen, 9% of mobile shoppers have paid for goods or services at point of sale. NFC probably won’t be the solution that powers this change though, but new apps like Pay with Square and Apple’s Passbook are promising.
The report is full of charts and da! ta that can be easily accessed, downloaded, and put to use.
In full, the report also looks at:
- The most popular mobile activities: We take a look at usage patterns around social networking, gaming, email, weather, search, and maps.
- The growth of the mobile web: We take a deep dive into mobile browser and app usage patterns and analyze the recent trends.
- How users are consuming content on their mobile devices: We take a look at how mobile users are consuming books, video, news, and music on their mobile devices.
To access BI Intelligence’s full report on Mobile Usage, sign up for a free trial subscription here.
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How HTML5 Will Take Over Mobile Apps
Source: http://www.businessinsider.com/bii-report-how-html5-will-take-over-mobile-apps-2012-9
HTML5 is a new technology that allows developers to build rich web-based apps that run on any device via a standard web browser.
Many think it will save the web, rendering native platform-dependent apps obsolete.
So, which will win? Native apps or HTML5?
A recent report from BI Intelligence explains why we think HTML5 will win out, and what an HTML future will look like for consumers, developers, and brands.
Access The Full Report By Signing Up For A Free Trial Today >>
Here’s how HTML5 will eventually win out:
- The most popular types of apps will be early adapters: HTML5 is particularly useful for media apps and “access” apps (those that let you access an existing accounts via a mobile device, such as banks).This is because apps that display text, images and video and monetize through ads and subscriptions can be done more cheaply and effectively through HTML5.
- The increasing prevalence of “shell apps” will push thin! gs along : These are apps that have a native “shell” so they can get in the app stores, but where the entire functionality is done via HTML5. These “hybrid” apps get the best of both worlds and mean more developing resources will shift to HTML5 over time. These “wrapper” apps will also end up on the web as HTML5 improves.
- HTML5 will eventually fulfill its promise as a classic disruptive technology: It’s currently less good than native apps at lots of things. But the technology is improving. And it is cheaper to produce HTML5 apps than native apps. Over time, the new, cheaper technology of HTML5 will get better and better, and as it does it will start to eat the rest of the market.
- But, it will still take a while: HTML5 comes from a consortium, which means the technology will evolve slowly. It still isn’t ready for prime time, as there are many things that HTML5 apps just can’t do right now. So HTML5 will likely progressively replace apps as the feature set improves, starting with media and “access” apps and ending with games, which require ! th e richness of native software more than any other app type.
- What HTML5 is, giving an overview of how it is a technology done by committee
- Why the HTML5-vs-Apps debate matters, breaking down its impact on distribution, monetization, platform power and network effects, and functionality.
- The pluses and minuses of HTML5 vs. native apps, comparing each by cost, user experience, features, distribution, and monetization.
- How and when HTML5 will take over, laying out how it has all the hallmarks of a disruptive technology.
- The success of an HTML5 pioneer, The Financial Times.
- What an HTML5 future will look like, ! with the promise of richer and more interactive experiences.
To access BI Intelligence’s full report on HTML5, sign up for a free trial subscription here.
Please follow SAI on Twitter and Facebook.
Join the conversation about this story »
India is Giving Away Free Prescription Drugs And Big Pharma Is Not Happy About It
Source: http://www.businessinsider.com/india-begins-54-billion-free-drug-policy-2012-7
A couple weeks ago, Cipla pharmaceuticals ticked off the larger pharmaceutical firms when it announced it would begin offering its cancer treatment at a price 75% lower than its competitors. Specifically for kidney, lung, and brain cancer, the treatment is basically a copy, or generic, of Nexavar, co-developed and co-marketed by Bayer and Onyx Pharmaceuticals.
If Big Pharma thought that was bad, now they have to cope with the Indian government’s new plan to give away $5.4 billion in prescription drugs over the next 5 years, according to Reuters. And the news just kept getting worse, as India announced that branded drugs would be banned from the plan.
The policy, only operating in state-run hospitals and clinics, will allow public doctors to prescribe free generic medicines to ailing Indians. If doctors are caught prescribing branded drugs, disciplinary action will result.
With 40% of the population under the poverty line (living off of $1.25 or less), the average citizen spends just $4.50 in medial costs per year. Health care is seen as a luxury for the well-off, private clinics accounting for four times more health spending than public hospitals. Indian officials hope this plan helps change that, predicting that by the end of 2017, at least 52% of India’s 1.2 billion citizens will take advantage of the policy, according to the same Reuters article.
While figures for Big Pharma companies like Bayer and GlaxoSmithKline will surely be hit, Indian generic makers including Cipla will be set to benefit the most.
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Try On Five Pairs of Glasses for Free at Home
You can save a boatload of money by buying eyeglasses online, but it’s a bit of a gamble because you can’t actually try them on. That is, until now. Previously mentioned Warby Parker will now ship you five pairs to try for five days, no obligation to buy.
Select any 5 pairs of glasses that you’d like to try and the company will send them to you for free. (For those wondering, the program is available for contiguous US residents only.) You can try them on in the comfort of your home and ask your friends and family for their opinions or get feedback from Warby Parker experts on Facebook over the next five days.
Send the glasses back (return shipping is free), and if you like any of them, order the frame(s) with your prescription. Glasses cost $95 including prescription lenses.
As an added feel good bonus, for every pair Warby Parker sells, the company donates a pair of glasses to a person in need.
Warby Parker Home Try-On Program | Warby Parker
GM Pulled Ads After Facebook Begged It To Use Free Media (FB)
Source: http://www.businessinsider.com/gm-pulled-ads-after-facebook-begged-it-to-use-its-free-media-2012-5
General Motors pulled its entire $10 million ad budget after Facebook executives urged the company to concentrate more on posting free content to its web page, according to Reuters.
The account dovetails with BI’s May 16 report, which noted that General Motors wasn’t executing the basics — posting compelling content for free on its Brand Pages — of its Facebook strategy correctly.
Reuters said:
Facebook may only have itself to blame for why General Motors rained on its IPO parade this week.
… During the meeting with GM, Facebook officials emphasized the lure of free posted content on their website, the sources said. By contrast, the ads looked “kind of meager and perhaps expensive by comparison,” one source said.
See Also:
-
FACEBOOK’S WORST NIGHTMARE: After GM, Here’s How The Other Dominoes Could Fall
-
General Motors Pulls $10 Million Campaign From Facebook Because Its Ads Don’t Work
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Digital Consigliere
Dr. Augustine Fou is Digital Consigliere to marketing executives, advising them on digital strategy and Unified Marketing(tm). Dr Fou has over 17 years of in-the-trenches, hands-on experience, which enables him to provide objective, in-depth assessments of their current marketing programs and recommendations for improving business impact and ROI using digital insights.
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