Here’s a chart from Dan Frommer that he calls “the entire Internet in one chart.” It shows AOL‘s declining dial-up business compared to Netflix‘s rising streaming business, which Frommer uses a proxy for the broadband market. Frommer has more analysis which is well worth checking out, but one great point: Netflix now has more users than AOL ever had.
BlackBerry CEO Thorsten Heins said, “In five years I don’t think there’ll be a reason to have a tablet anymore.”
He believes we’re going to carry around a single device that powers all our other screens. That since device is going to be a smartphone in his opinion, and therefore tablets are going to be totally irrelevant.
He also says, “Tablets themselves are not a good business model.”
Perhaps the wheels fall off this thing, and it disappears from existence in five years. We doubt it.
The reason the iPad sells well, despite being slightly redundant, is that people like to have dedicated gadgets. People don’t want one device to power everything.
Mac shipments dropped 22 percent during the December 2012 quarter, marking their biggest decline in about 10 years, Dan Frommer of SplatF reports.
Apple shipped 778,000 fewer Macs in 2012 than it did in 2011, while it had 43 million more iPhones and 25 million more iPads, respectively.
CEO Tim Cook attributes the slowdown of Mac shipments to the release of the new iMacs late in the quarter and low inventory, but the drop could also be explained by the overall decline of the PC market and the rise of tablets.
Below is a chart from Dan Frommer at ReadWriteWeb that shows the biggest difference between the two companies. Apple, as you can see, makes an insane amount of money each quarter, whereas Amazon does not.
This is because Apple sells very expensive hardware while Amazon is a retailer who operates on very thin margins. Jeff Bezos is okay with this arrangement. He says Amazon charges low prices because it wants to be in alignment with its customers, who want low prices.
Here’s an interesting chart from Dan Frommer at ReadWriteWeb on Verizon’s business.
The amount of money it brings in from data plans will soon equal the amount of money it brings in from data plans. This is because smartphones and connected devices like tablets are increasingly important.
As smartphone sales continue to grow, this chart will be flipped with voice just a tiny portion of revenue.
Best Buy’s annual revenue growth has hit a wall, and Amazon’s is on a tear. It’s about to blow past Best Buy for the first time ever, notes Dan Frommer who made this chart for Read Write Web.
This chart from Dan Frommer at SplatF shows what he calls its “sexy growth.” The company is now processing about $11 million worth of transactions daily basis, up from just $1 million a day last year.
We love this chart from Dan Frommer at SplatF.
He calls it the “Eggs In One Basket” index, because it charts out the largest source of revenue as a percentage for all the major tech companies. (Profits would be a different story altogether.)
Google gets over 90% of its revenue from one source: Advertising. The next closest is Amazon with product sales. But, Amazon’s product sales are a mix of goods, so it’s not exactly the same as relying on just advertising.
For now, this isn’t a big problem for Google. The online ad market is still growing, and Google can capture a lot of the market. But, if things were to change, or advertising were to slow down, then look out.
What’s incredible about this chart is how diverse Microsoft is from a sales perspective. Its most dominant business group, Office, only accounts for 30% of sales. Read more on the chart from Frommer here →
As you can see in the chart below, digital streaming/sales only accounted for 19% of the home entertainment market in the third quarter. The rest of sales comes from DVD/Blu-ray discs.
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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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