MOUNTAIN VIEW, USA: Smartphone penetration in the US mobile markets is increasing rapidly. For some time, mobile operators have been offering a branded 'catalog' of mobile content and services that could be purchased from the handset itself.
However, all that is changing for smartphones, in which newer types of targeted app stores are being introduced to enable the device owner to purchase content from outside the operator environment. The availability of a large number of inexpensive or free mobile applications that leverage the next-generation technical capabilities of the target device will help drive adoption.
However, in the end, service differentiation and generating suitable return on investment from the app store business could be challenging.
New analysis from Frost & Sullivan: An Insight into the US Smartphone Application Storefront Market, finds that smartphone downloads from all app stores will reach 6.67 billion in 2014. The market segments covered in this research include prepaid and postpaid mobile, SMS and MMS, mobile Internet, iPhone, Android, Windows Mobile, Palm, and Symbian.
"Next-generation devices are being introduced at a rapid pace, and stakeholders are offering app stores to facilitate downloads of compelling applications from multiple categories, serving a wide range of communication, entertainment, information, and personalization requirements of the mobile user," says Frost & Sullivan Industry Analyst Vikrant Gandhi.
"For example, Apple, Google, Nokia, Palm and Microsoft have either already introduced app stores or are in various stages of app store rollouts and are working to ensure that the entire service experience is compelling for the end user or device owner."
A vast majority of applications are available 'free of cost' to the end user, significantly driving adoption in the US smartphone app store market. These applications leverage advanced device capabilities such as touch screen, accelerometers, full Web browsing, and location-based services, among others, to deliver a truly compelling proposition.
The most significant challenge is to ensure service differentiation and optimal management of the scale of the app store business. App store providers should always be open to support new business models to drive the introduction of innovative services and content types. Having a clear value proposition is also important for mobile operators.
"Unless the app store providers establish exclusivity agreements with application developers -- something that is not feasible for a large majority of applications -- it will be difficult to provide enough differentiation through the app stores," notes Gandhi.
"The best example of how this could be done is Apple's app store, in which the entire experience of service purchase and consumption -- including device characteristics, form factor and the operating environment -- was a radical shift at the time of its introduction."
This does not mean that services could not be differentiated at all. The moot point then is the extent to which providers are willing to invest in their infrastructure to offer new service to their customers, which then ties back into something that is still being examined -- identifying the main purpose of launching the app stores and if app stores alone are strong enough reasons to purchase a particular type of device.
A single participant cannot provide all the services in the mobile content industry. App store providers need to work with multiple application providers and offer them sufficient incentives for their app store initiatives.
Services of independent, third-party app store providers such as Handango, Handmark, and PocketGear can also be used to run an app store business profitably with adequate service differentiation.
"For instance, outsourcing or white-labeling of the app store business might become a good idea in the long run since a device vendor or an operating system provider may not want to commit large resources to manage the smartphone app store business," concludes Gandhi.
Showing posts with label Palm. Show all posts
Showing posts with label Palm. Show all posts
Thursday, August 13, 2009
Wednesday, August 12, 2009
Global mobile phone sales drops 6pc, smartphones grow 27pc in Q2-09
MUMBAI, INDIA: Worldwide mobile phone sales totalled 286.1 million units in the second quarter of 2009, a 6.1 percent decrease from the second quarter of 2008, according to Gartner Inc.
Smartphone sales surpassed 40 million units, a 27 percent increase from the same period last year, representing the fastest-growing segment of the mobile-devices market (Table 2).
"Despite the challenging market, some devices sold well as consumers who would usually have purchased standard midrange devices either cut back to less expensive handsets or moved up the range to get more features for their money," said Carolina Milanesi, research director at Gartner.
"Touchscreen and qwerty devices remained a major driver for replacement sales and benefited manufacturers with strong, touch-focused midtier devices. However, the decline in average selling price (ASP) accelerated in the first half of the year and particularly affected manufacturers that focus on midtier and low-end devices, where margins are already slim."
The recession continued to suppress replacement sales in both mature and emerging markets. The distribution channel has dealt with lower demand and financial pressure by using up 13.9 million units of existing stock before ordering more. Gartner expects the gap between sell-in to the channel and sell-through to customers will reduce in the second half of 2009 as the channel starts to restock.
Table 1: Worldwide Mobile Terminal Sales to End Users in 2Q09 (Thousands of Units)
Note: This table includes iDEN shipments but excludes ODM-to-OEM shipments.
Source: Gartner (August 2009)
Nokia maintained its leadership position, but its portfolio remained heavily skewed toward low-end devices. Its flagship high-end N97 smartphone met little enthusiasm at its launch in the second quarter of 2009 and has sold just 500,000 units in the channel since it started to ship in June, compared to Apple's iPhone 3G S, which sold 1 million units in its first weekend.
"The right high-end product and an increased focus on services and content are vital for Nokia if it wants to both revamp its brand and please investors with a more promising outlook in ASPs and margins," said Ms Milanesi.
Samsung and LG both had a very strong second quarter of 2009 with sales of 55 million units and 30.5 million units, respectively. Samsung's touchscreen devices, qwerty phones and smartphones drove sales in mature markets, and Gartner expects it will continue to gain market share in the second half of 2009 to close the gap with Nokia.
Gartner expects LG to keep moving into lower-tier devices to drive growth in emerging markets and be well-positioned to take advantage of China's 3G rollout as it can deliver good-value-for-money devices.
Table 2: Worldwide Smartphone Sales to End Users in 2Q09 (Thousands of Units)
Note: For HTC, Gartner counts only the company's own-branded devices, including the G1.
Note: Totals may not add to 100.0 percent due to rounding.
Source: Gartner (August 2009)
Motorola's sales of 15.9 million units were slightly better than expected, but its presence has rapidly concentrated on the Americas, and it has lost most of its share of the Western European market, where it sold fewer than 1 million units in the second quarter of 2009. Most operators and customers will be waiting for Motorola's new Android-based products planned for the fourth quarter of 2009.
Sony Ericsson's market share dropped 2.8 percentage points year-on-year in the second quarter of 2009 but its volume dropped 41 per cent. Although the market environment was challenging, Gartner attributes Sony Ericsson's poor performance to its uncompetitive range of handsets.
"Sony Ericsson has neglected to exploit key trends such as qwerty products for messaging and e-mail, internet browsing and navigation. If it wants to build the presence of its three new products announced this quarter in the channel and capture Christmas sales, the products need to come to market early in the fourth quarter of 2009," Ms Milanesi added.
"Smartphone sales were strong during the second quarter of 2009, with sales of 40.9 million units in line with Gartner's forecast of 27 per cent year-on-year sales growth for 2009," said Ms Milanesi. "Given the higher margins, smartphones offer the biggest opportunity for manufacturers. It is the fastest-growing market segment and the most resistant to declining ASPs."
Apple's expansion into a larger number of countries in the past year has produced a clear effect on sales volumes, as have the recent price adjustments on the 8GB 3G iPhone. Sales of 5.4 million units in the second quarter of 2009 indicated a 51 percent growth in shipments and helped Apple maintain the No. 3 position in the smartphone market, where it has stayed since the third quarter of 2008.
Apple brought its much-anticipated new device — the iPhone 3G S — to market at the end of the second quarter of 2009, but its full potential will only start to show in the sales figures in the second half of 2009.
At the high end of the smartphone market, HTC remained in the No. 4 position behind Apple, where it has been since the third quarter of 2008. It reported lower expectations for the second half of 2009 due to product delays and now expects 2009 revenue to decline by low- to mid-single digits year-on-year, far below its previous outlook of 10 per cent annual growth.
In the smartphone operating system (OS) market, Symbian held 51 percent share, down from 57 percent a year ago, while RIM and Apple grew their shares year-on-year. Android's share was just under 2 percent of the market and more Android-based devices will come to market in the fourth quarter of 2009, intensifying competition in the smartphone OS market, particularly for Symbian and Windows Mobile. Microsoft's share continued to drop year-on-year to account for 9 percent of the market in the second quarter of 2009.
"Microsoft licensees HTC and Samsung continued to add features to their own interfaces, on top of Windows Mobile, to create more competitive products and make up for the usability constraints of the Microsoft platform," said Roberta Cozza, principal analyst at Gartner.
This quarter also saw the debut of the long-awaited Palm Pre based on the new web operating system. "This device attracted a lot of media attention but showed mixed results at the cash register as sales only reached 205,000 units," said Ms Cozza.
"Palm currently ranks 10th in the smartphone market and Gartner remains concerned about its ability to gain traction outside the US market, where its brand is less strong."
"For the remainder of 2009, manufacturers must offer products with the features that consumers and operators are demanding most strongly — like touchscreens, focus on user interfaces and application/content ecosystems — and work hard to keep operators loyal," concluded Ms Milanesi.
"We expect competition to intensify in the second half of 2009. Mobile operators are likely to drive competition among manufacturers as they start selling e-book readers and mini-notebooks from other manufacturers to foster mobile broadband subscriptions.
"Operators are also starting to subsidise e-book readers and mini notebooks on contract and this means that there will be less subsidy available to drive sales of mobile phones and smartphones. In turn, operators will demand lower prices from phone manufacturers, which will be under even more pressure to deliver strong feature sets at the lowest possible price."
Smartphone sales surpassed 40 million units, a 27 percent increase from the same period last year, representing the fastest-growing segment of the mobile-devices market (Table 2).
"Despite the challenging market, some devices sold well as consumers who would usually have purchased standard midrange devices either cut back to less expensive handsets or moved up the range to get more features for their money," said Carolina Milanesi, research director at Gartner.
"Touchscreen and qwerty devices remained a major driver for replacement sales and benefited manufacturers with strong, touch-focused midtier devices. However, the decline in average selling price (ASP) accelerated in the first half of the year and particularly affected manufacturers that focus on midtier and low-end devices, where margins are already slim."
The recession continued to suppress replacement sales in both mature and emerging markets. The distribution channel has dealt with lower demand and financial pressure by using up 13.9 million units of existing stock before ordering more. Gartner expects the gap between sell-in to the channel and sell-through to customers will reduce in the second half of 2009 as the channel starts to restock.
Table 1: Worldwide Mobile Terminal Sales to End Users in 2Q09 (Thousands of Units)
Note: This table includes iDEN shipments but excludes ODM-to-OEM shipments.Source: Gartner (August 2009)
Nokia maintained its leadership position, but its portfolio remained heavily skewed toward low-end devices. Its flagship high-end N97 smartphone met little enthusiasm at its launch in the second quarter of 2009 and has sold just 500,000 units in the channel since it started to ship in June, compared to Apple's iPhone 3G S, which sold 1 million units in its first weekend.
"The right high-end product and an increased focus on services and content are vital for Nokia if it wants to both revamp its brand and please investors with a more promising outlook in ASPs and margins," said Ms Milanesi.
Samsung and LG both had a very strong second quarter of 2009 with sales of 55 million units and 30.5 million units, respectively. Samsung's touchscreen devices, qwerty phones and smartphones drove sales in mature markets, and Gartner expects it will continue to gain market share in the second half of 2009 to close the gap with Nokia.
Gartner expects LG to keep moving into lower-tier devices to drive growth in emerging markets and be well-positioned to take advantage of China's 3G rollout as it can deliver good-value-for-money devices.
Table 2: Worldwide Smartphone Sales to End Users in 2Q09 (Thousands of Units)
Note: For HTC, Gartner counts only the company's own-branded devices, including the G1.Note: Totals may not add to 100.0 percent due to rounding.
Source: Gartner (August 2009)
Motorola's sales of 15.9 million units were slightly better than expected, but its presence has rapidly concentrated on the Americas, and it has lost most of its share of the Western European market, where it sold fewer than 1 million units in the second quarter of 2009. Most operators and customers will be waiting for Motorola's new Android-based products planned for the fourth quarter of 2009.
Sony Ericsson's market share dropped 2.8 percentage points year-on-year in the second quarter of 2009 but its volume dropped 41 per cent. Although the market environment was challenging, Gartner attributes Sony Ericsson's poor performance to its uncompetitive range of handsets.
"Sony Ericsson has neglected to exploit key trends such as qwerty products for messaging and e-mail, internet browsing and navigation. If it wants to build the presence of its three new products announced this quarter in the channel and capture Christmas sales, the products need to come to market early in the fourth quarter of 2009," Ms Milanesi added.
"Smartphone sales were strong during the second quarter of 2009, with sales of 40.9 million units in line with Gartner's forecast of 27 per cent year-on-year sales growth for 2009," said Ms Milanesi. "Given the higher margins, smartphones offer the biggest opportunity for manufacturers. It is the fastest-growing market segment and the most resistant to declining ASPs."
Apple's expansion into a larger number of countries in the past year has produced a clear effect on sales volumes, as have the recent price adjustments on the 8GB 3G iPhone. Sales of 5.4 million units in the second quarter of 2009 indicated a 51 percent growth in shipments and helped Apple maintain the No. 3 position in the smartphone market, where it has stayed since the third quarter of 2008.
Apple brought its much-anticipated new device — the iPhone 3G S — to market at the end of the second quarter of 2009, but its full potential will only start to show in the sales figures in the second half of 2009.
At the high end of the smartphone market, HTC remained in the No. 4 position behind Apple, where it has been since the third quarter of 2008. It reported lower expectations for the second half of 2009 due to product delays and now expects 2009 revenue to decline by low- to mid-single digits year-on-year, far below its previous outlook of 10 per cent annual growth.
In the smartphone operating system (OS) market, Symbian held 51 percent share, down from 57 percent a year ago, while RIM and Apple grew their shares year-on-year. Android's share was just under 2 percent of the market and more Android-based devices will come to market in the fourth quarter of 2009, intensifying competition in the smartphone OS market, particularly for Symbian and Windows Mobile. Microsoft's share continued to drop year-on-year to account for 9 percent of the market in the second quarter of 2009.
"Microsoft licensees HTC and Samsung continued to add features to their own interfaces, on top of Windows Mobile, to create more competitive products and make up for the usability constraints of the Microsoft platform," said Roberta Cozza, principal analyst at Gartner.
This quarter also saw the debut of the long-awaited Palm Pre based on the new web operating system. "This device attracted a lot of media attention but showed mixed results at the cash register as sales only reached 205,000 units," said Ms Cozza.
"Palm currently ranks 10th in the smartphone market and Gartner remains concerned about its ability to gain traction outside the US market, where its brand is less strong."
"For the remainder of 2009, manufacturers must offer products with the features that consumers and operators are demanding most strongly — like touchscreens, focus on user interfaces and application/content ecosystems — and work hard to keep operators loyal," concluded Ms Milanesi.
"We expect competition to intensify in the second half of 2009. Mobile operators are likely to drive competition among manufacturers as they start selling e-book readers and mini-notebooks from other manufacturers to foster mobile broadband subscriptions.
"Operators are also starting to subsidise e-book readers and mini notebooks on contract and this means that there will be less subsidy available to drive sales of mobile phones and smartphones. In turn, operators will demand lower prices from phone manufacturers, which will be under even more pressure to deliver strong feature sets at the lowest possible price."
Saturday, June 6, 2009
Palm Pre stands to shake up smartphone status quo
EL SEGUNDO, USA: Palm’s new Pre smartphone holds strong potential for robust sales growth, and may have a major influence on other platforms as well as the technology supply chain, according to iSuppli Corp.
Palm Pre shipments could amount to 1.1 million units in 2009. However, if Palm quickly introduces a new Pre that supports the 3G GSM standard, sales could rise to 1.3 million during the year. Furthermore, if Palm opens up the licensing of its webOS operating system used in the Pre, the software could have a wider influence beyond the company’s own products.
“Palm’s webOS appears to be superior to the Mac OS X used in the iPhone in the crucial area of multitasking capabilities,” said Tina Teng, senior analyst, wireless communications, for iSuppli. “This key point of differentiation, combined with the product’s multi-touch display, could be enough for Palm to carve out a significant share of the smartphone market.”
Another key allure of webOS is its use of widgets for accessing data and applications like the iPhone, rather than the folders used in Microsoft’s Windows OS. The consensus among most users appears to be that widgets provide a more intuitive interface than folders.
Because of this, there may be strong demand for webOS from other smartphone makers.
“If Palm decides to license webOS to other companies, it could follow in the footsteps of Google’s Android operating system, which is expected to expand its share of global smartphone operating systems to grow by nearly a factor of 12 from 2008 to 2010 according to iSuppli’s Design Forecast Tool (DFT) for Mobile Handsets,” Teng added.
This could lay the foundation for webOS to challenge Apple’s Mac OS X for leadership in the highly intuitive smart-phone operating system market.
Minding the store
Palm could further boost the prospects of webOS if the company opens an application store that sells programs that work with the operating system, similar to Apple’s App Store.
“An application store would make Palm a more complete solution provider to its end customers, allowing it to provide not only a hardware platform and operating system but also the programs essential to take advantage of the capabilities of a smart phone,” Teng said.
Teng noted that industry rumors have circulated since the Consumer Electronics Show (CES) in January that Palm will offer an online applications catalog. With the arrival of software allowing developers to produce programs that can be compiled to work on multiple mobile operating systems, Palm’s store likely will grow rapidly to sport a large number of applications.
Battle of applications processors
The potential long-term success of the Pre promises to benefit Palm’s applications-processor semiconductor supplier, Texas Instruments Inc. (TI).
While TI remained the leading supplier of standalone media/application/graphic processing chips for mobile handsets in 2008, No.-2 Samsung Electronics Co Ltd. is closing in on the lead, according to iSuppli’s Wireless Competitive Landscaping Tool (CLT). Samsung’s share of global market revenue rose to 16.4 percent in 2008, up from 10 percent in 2007. In contrast, TI’s share declined to 16.8 percent in 2008, down from 23 percent in 2007.
“Owing to rising shipments of the iPhone, which uses Samsung’s media processing silicon, the company is closing the gap,” said Francis Sideco, senior analyst, wireless communications, for iSuppli. “Pre’s success could help TI regain some of that share as Pre sales will help boost TI’s revenue for its OMAP line. It also will validate TI’s OMAP approach by demonstrating the need for powerful standalone applications processors in high-end smartphone devices.”
The table presents iSuppli’s market share estimates of global standalone mobile phone media processors.
Source: iSuppli, June 2009
Display shortage?
The Pre likely makes use of a Low-Temperature Polysilicon (LTPS) LCD display, which offers superior picture quality compared to regular TFT-LCD panels used in most mobile phones.
This could put constraints on availability of LTPS LCD supplies, which is a popular display choice in the growing smart phone marker segment.
“If the Pre is successful and large volumes are shipped in the coming years, LTPS displays could go into shortage because the supply is limited to a few suppliers that operate smaller generation fabs capable of producing them,” said Vinita Jakhanwal, principal analyst, small/medium displays, for iSuppli.
In the palm of your hand
An iSuppli preliminary cost analysis of the Palm Pre released in late April revealed a total projected Bill-of-Materials (BOM) and manufacturing cost of approximately $170 for the product.
The estimated BOM consists of a hardware cost of $138, including the battery, nearly $10 for manufacturing and basic test costs, and a software and licensing cost of $23.
iSuppli produced this estimate of the Pre’s hardware and manufacturing costs based on second-quarter component pricing and assembly pricing from the company’s Mobile Handset Cost Model. An iSuppli cross-functional team also participated in developing the virtual teardown, including experts in memory, displays, baseband, component pricing, mobile handsets and wireless connectivity.
A full, physical teardown of the Palm Pre will be released by iSuppli early next week.
Palm Pre shipments could amount to 1.1 million units in 2009. However, if Palm quickly introduces a new Pre that supports the 3G GSM standard, sales could rise to 1.3 million during the year. Furthermore, if Palm opens up the licensing of its webOS operating system used in the Pre, the software could have a wider influence beyond the company’s own products.“Palm’s webOS appears to be superior to the Mac OS X used in the iPhone in the crucial area of multitasking capabilities,” said Tina Teng, senior analyst, wireless communications, for iSuppli. “This key point of differentiation, combined with the product’s multi-touch display, could be enough for Palm to carve out a significant share of the smartphone market.”
Another key allure of webOS is its use of widgets for accessing data and applications like the iPhone, rather than the folders used in Microsoft’s Windows OS. The consensus among most users appears to be that widgets provide a more intuitive interface than folders.
Because of this, there may be strong demand for webOS from other smartphone makers.
“If Palm decides to license webOS to other companies, it could follow in the footsteps of Google’s Android operating system, which is expected to expand its share of global smartphone operating systems to grow by nearly a factor of 12 from 2008 to 2010 according to iSuppli’s Design Forecast Tool (DFT) for Mobile Handsets,” Teng added.
This could lay the foundation for webOS to challenge Apple’s Mac OS X for leadership in the highly intuitive smart-phone operating system market.
Minding the store
Palm could further boost the prospects of webOS if the company opens an application store that sells programs that work with the operating system, similar to Apple’s App Store.
“An application store would make Palm a more complete solution provider to its end customers, allowing it to provide not only a hardware platform and operating system but also the programs essential to take advantage of the capabilities of a smart phone,” Teng said.
Teng noted that industry rumors have circulated since the Consumer Electronics Show (CES) in January that Palm will offer an online applications catalog. With the arrival of software allowing developers to produce programs that can be compiled to work on multiple mobile operating systems, Palm’s store likely will grow rapidly to sport a large number of applications.
Battle of applications processors
The potential long-term success of the Pre promises to benefit Palm’s applications-processor semiconductor supplier, Texas Instruments Inc. (TI).
While TI remained the leading supplier of standalone media/application/graphic processing chips for mobile handsets in 2008, No.-2 Samsung Electronics Co Ltd. is closing in on the lead, according to iSuppli’s Wireless Competitive Landscaping Tool (CLT). Samsung’s share of global market revenue rose to 16.4 percent in 2008, up from 10 percent in 2007. In contrast, TI’s share declined to 16.8 percent in 2008, down from 23 percent in 2007.
“Owing to rising shipments of the iPhone, which uses Samsung’s media processing silicon, the company is closing the gap,” said Francis Sideco, senior analyst, wireless communications, for iSuppli. “Pre’s success could help TI regain some of that share as Pre sales will help boost TI’s revenue for its OMAP line. It also will validate TI’s OMAP approach by demonstrating the need for powerful standalone applications processors in high-end smartphone devices.”
The table presents iSuppli’s market share estimates of global standalone mobile phone media processors.
Source: iSuppli, June 2009 Display shortage?
The Pre likely makes use of a Low-Temperature Polysilicon (LTPS) LCD display, which offers superior picture quality compared to regular TFT-LCD panels used in most mobile phones.
This could put constraints on availability of LTPS LCD supplies, which is a popular display choice in the growing smart phone marker segment.
“If the Pre is successful and large volumes are shipped in the coming years, LTPS displays could go into shortage because the supply is limited to a few suppliers that operate smaller generation fabs capable of producing them,” said Vinita Jakhanwal, principal analyst, small/medium displays, for iSuppli.
In the palm of your hand
An iSuppli preliminary cost analysis of the Palm Pre released in late April revealed a total projected Bill-of-Materials (BOM) and manufacturing cost of approximately $170 for the product.
The estimated BOM consists of a hardware cost of $138, including the battery, nearly $10 for manufacturing and basic test costs, and a software and licensing cost of $23.
iSuppli produced this estimate of the Pre’s hardware and manufacturing costs based on second-quarter component pricing and assembly pricing from the company’s Mobile Handset Cost Model. An iSuppli cross-functional team also participated in developing the virtual teardown, including experts in memory, displays, baseband, component pricing, mobile handsets and wireless connectivity.
A full, physical teardown of the Palm Pre will be released by iSuppli early next week.
Friday, May 1, 2009
Palm Pre aims at iPhone: iSuppli
EL SEGUNDO: Palm Inc. is aiming high with its new Pre, a smart phone that rival’s Apple Inc.’s iPhone in terms of slickness—and in terms of hardware features—according to a virtual teardown conducted by iSuppli Corp.
The Palm Pre carries a materials cost of $137.83 and a combined total projected Bill-of-Materials (BOM) of $170.02 which includes hardware, manufacturing and software and IP licensing costs, according to an estimate from iSuppli. Since the Pre is not yet shipping, iSuppli has not conducted an actual physical teardown of the product.
However, iSuppli has produced an estimate of the Pre’s hardware and manufacturing costs based on second-quarter component pricing and assembly pricing from the company’s Mobile Handset Cost Model to develop this cost analysis. An iSuppli cross-functional team also participated in developing the virtual teardown, including experts in memory, displays, baseband, component pricing, mobile handsets and wireless connectivity.
“The similarity in features between the Pre and the iPhone clearly reveals the mark Palm is trying to hit,” said Tina Teng, senior analyst, wireless communications, for iSuppli.
From a user perspective, Palm seems to be right on target, combining a multi-touch display interface with an intuitive operating system that makes operation easier and more convenient to use, according to Teng. The Pre is the only announced smart phone besides the iPhone to support a multi-touch display interface, a feature that allows multiple simultaneous touch inputs.
“The use of a multi-touch screen—a key allure of the iPhone—and Palm’s innovative WebOS operating system, are likely to allow the pre to appeal to a broad range of consumers, going far beyond the company’s core group of business-oriented customers,” Teng said.
Outside of the user interface and software, the Pre’s other features match up well with the iPhone 3G and the other lineup of “iPhone killers” including the BlackBerry Storm. These features include 3G wireless broadband, an accelerometer, an ambient light sensor, a proximity sensor, large capacity memory for storage, Wi-Fi and a 3-megapixel camera.
Pre’s price tag
iSuppli’s total Pre cost estimate of $170.02 consists of a hardware cost of $137.83, including the battery, $9.58 for manufacturing and basic test costs and software & licensing cost of $22.61. iSuppli is projecting that Palm will try to sell the Palm Pre to Sprint Nextel at a price of about $300.
However, as is the case with virtually all mobile phones, the Pre’s price to consumers will be lower, at about $200, due to the wireless operator’s subsidy. Software and licensing includes the cost of intellectual property, royalties and licensing fee. Not included in this analysis are shipping, logistics, marketing and other channel costs.
The figure presents a summary of the results of iSuppli’s cost analysis of the Pre.
BOM breakdown
The combination of the display and touch screen module is expected to be the Pre's most expensive single subsystem, at $39.51, representing 23.2 percent of the device's BOM. iSuppli believes the Pre employs a 3.1-inch TFT-LCD screen that has a pixel format of 320 by 480 pixels and supports the display of 16 million colors. The display subsystem also likely includes a capacitive touch screen overlay that allows multi-touch input through software.
Other significant contributors to the Pre's cost include:
* 8GBytes of NAND flash memory for storage, accounting for $15.96, or 9.4 percent of the Pre’s total BOM.
* A dual-band CDMA EVDO air interface, at a cost of $15.41, OR 9.1 percent of the total BOM.
* The 3-megapixel camera, costing $12.39, or 7.3 percent of the BOM.
Can Pre help Palm get a leg up on the market?
With the arrival of the iPhone and a range of competitive products, Palm in recent years has been suffering a decline in its already-minor share of global smart phone sales. Palm's share of global smart phone shipments declined to 2 percent in 2008, down from 2.9 percent in 2006, according to iSuppli.
Can the Pre reverse Palm's slide and allow the company to become a more significant player in the smart phone market?
“Palm has been known for years for its touch screen enabled PDA devices, its easy to use, simple operating system and its Treo smart phone product line,” Teng observed. “However, just a glance at the Pre at CES has changed the industry’s opinions about Palm, showing it is a company that can be competitive with Apple iPhone or any other leading-edge product in the global smart phone market.”
The Palm Pre carries a materials cost of $137.83 and a combined total projected Bill-of-Materials (BOM) of $170.02 which includes hardware, manufacturing and software and IP licensing costs, according to an estimate from iSuppli. Since the Pre is not yet shipping, iSuppli has not conducted an actual physical teardown of the product.
However, iSuppli has produced an estimate of the Pre’s hardware and manufacturing costs based on second-quarter component pricing and assembly pricing from the company’s Mobile Handset Cost Model to develop this cost analysis. An iSuppli cross-functional team also participated in developing the virtual teardown, including experts in memory, displays, baseband, component pricing, mobile handsets and wireless connectivity.
“The similarity in features between the Pre and the iPhone clearly reveals the mark Palm is trying to hit,” said Tina Teng, senior analyst, wireless communications, for iSuppli.
From a user perspective, Palm seems to be right on target, combining a multi-touch display interface with an intuitive operating system that makes operation easier and more convenient to use, according to Teng. The Pre is the only announced smart phone besides the iPhone to support a multi-touch display interface, a feature that allows multiple simultaneous touch inputs.
“The use of a multi-touch screen—a key allure of the iPhone—and Palm’s innovative WebOS operating system, are likely to allow the pre to appeal to a broad range of consumers, going far beyond the company’s core group of business-oriented customers,” Teng said.
Outside of the user interface and software, the Pre’s other features match up well with the iPhone 3G and the other lineup of “iPhone killers” including the BlackBerry Storm. These features include 3G wireless broadband, an accelerometer, an ambient light sensor, a proximity sensor, large capacity memory for storage, Wi-Fi and a 3-megapixel camera.
Pre’s price tag
iSuppli’s total Pre cost estimate of $170.02 consists of a hardware cost of $137.83, including the battery, $9.58 for manufacturing and basic test costs and software & licensing cost of $22.61. iSuppli is projecting that Palm will try to sell the Palm Pre to Sprint Nextel at a price of about $300.
However, as is the case with virtually all mobile phones, the Pre’s price to consumers will be lower, at about $200, due to the wireless operator’s subsidy. Software and licensing includes the cost of intellectual property, royalties and licensing fee. Not included in this analysis are shipping, logistics, marketing and other channel costs.
The figure presents a summary of the results of iSuppli’s cost analysis of the Pre.BOM breakdown
The combination of the display and touch screen module is expected to be the Pre's most expensive single subsystem, at $39.51, representing 23.2 percent of the device's BOM. iSuppli believes the Pre employs a 3.1-inch TFT-LCD screen that has a pixel format of 320 by 480 pixels and supports the display of 16 million colors. The display subsystem also likely includes a capacitive touch screen overlay that allows multi-touch input through software.
Other significant contributors to the Pre's cost include:
* 8GBytes of NAND flash memory for storage, accounting for $15.96, or 9.4 percent of the Pre’s total BOM.
* A dual-band CDMA EVDO air interface, at a cost of $15.41, OR 9.1 percent of the total BOM.
* The 3-megapixel camera, costing $12.39, or 7.3 percent of the BOM.
Can Pre help Palm get a leg up on the market?
With the arrival of the iPhone and a range of competitive products, Palm in recent years has been suffering a decline in its already-minor share of global smart phone sales. Palm's share of global smart phone shipments declined to 2 percent in 2008, down from 2.9 percent in 2006, according to iSuppli.
Can the Pre reverse Palm's slide and allow the company to become a more significant player in the smart phone market?
“Palm has been known for years for its touch screen enabled PDA devices, its easy to use, simple operating system and its Treo smart phone product line,” Teng observed. “However, just a glance at the Pre at CES has changed the industry’s opinions about Palm, showing it is a company that can be competitive with Apple iPhone or any other leading-edge product in the global smart phone market.”
Saturday, August 11, 2007
Top 10 influential tech products of last 25 years
It's becoming a season to talk about top things, ain't it? About a fortnight back, Computing Technology Industry Association (CompTIA), announced its Top 10 list of the most influential technology products of the past 25 years.
According to CompTIA, a total of 471 individuals participated in the CompTIA survey, which was conducted in May and June. Products developed by Microsoft claimed four of the top five spots in the poll of information technology (IT) industry professionals, conducted in conjunction with the 25th anniversary of CompTIA. Apple's iPod is the only non-Microsoft product to break into the top 5.
As per CompTIA, the top 10 most influential technology (or computing) products of the past 25 years are:
1. Internet Explorer (selected by 66 percent those surveyed)
2. MS Word (selected by 56 percent of survey respondents)
3. Windows 95 (selected by 50 percent of survey respondents)
4. Apple's iPod and MS Excel (tied at 49 percent each)
6. Blackberry (selected by 39 percent of survey respondents)
7. Adobe Photoshop (selected by 35 percent of survey respondents)
8. McAfee VirusScan (selected by 32 percent of survey respondents)
9. Netscape Navigator and Palm's PalmPilot (tied at 31 percent each)
While there will be differences of opinion about this list, and also the fact that components of MS Office have been broken up into separate components, it's quite evident yet again that Microsoft rules the computing world, and will continue to do so for a long time. Well done to the great team at Microsoft!
Now, I have my own comments regarding these selections. First, I have always believed Mac OS to be better than Windows. So, I'd put Mac OS in place of Windows 95.
I won't have MS Office there, or any components of MS Office, as I felt back in early 2000 that StarOffice and now, Open Office are equally good.
I'd replace IE with Opera, which is a lighter and much better browser, even back when it was first launched.
Yes, Apple's iPod has revolutionized digital music, but don't forget Real Player! The first time we all probably started watching videos and listen to music over the Web was by using the Real Player! For most, it was the first experience of streaming video and audio!
I agree Palm's done very well and changed the way people looked at mobile computing. However, it was the short-lived Apple's Newton, which first promised all of this. By the way, I must have the iMac on my list too.
My list would have another Adobe product, the Pagemaker, which revolutionized desktop publishing. Don't know whether people remember Quark Express! I am tempted to add Unix, or well, Linux, as it really brought open source into the great, wide open!
Lot of people are enamored by the Blackberry today. However, it was way back in 2000 when I was using my Siemens GSM phone in Hong Kong and elsewhere to send and receive emails, and also use it to search for hotels and other establishments over GPRS. In fact, at a conference in Singapore in 2002, during a survey done among the participants, I was among the three people using the GSM phone to send and receive emails! So, shouldn't mobile phones be the first on everyone's list?
Finally, I'll definitely add Tally to my list. Tally, as all Indians know, is the most widely used accounting software, starting way back in 1986. The mumbers achieved by this single accounting software is simply mind-boggling!
Therefore, friends, my list of the top 10 technology (or computing) products of the last 25 years would be:
1. Mobile phones (GSM phones, especially) -- all down the years
2. Tied between Apple's Mac OS and the iMac
3. Linux
4. McAfee's VirusScan
5. Real Player
6. Tied between Quark Express and Adobe Pagemaker
7. Netscape Navigator
8. Tally
9. Tied between StarOffice and Open Office
10. Tied between Opera browser and Apple's Newton
I am sure that most people will not agree with my selection/choices or even find my list appealing. That's fine! It's my own individual selection and I'm not canvassing for anyone in particular! These are purely my observations over the last two decades.
I am delighted at having had the privilege, like most of you, perhaps, to have had the honor of using all of these great technologies and products. Hats off to all the technologists of the world!
According to CompTIA, a total of 471 individuals participated in the CompTIA survey, which was conducted in May and June. Products developed by Microsoft claimed four of the top five spots in the poll of information technology (IT) industry professionals, conducted in conjunction with the 25th anniversary of CompTIA. Apple's iPod is the only non-Microsoft product to break into the top 5.
As per CompTIA, the top 10 most influential technology (or computing) products of the past 25 years are:
1. Internet Explorer (selected by 66 percent those surveyed)
2. MS Word (selected by 56 percent of survey respondents)
3. Windows 95 (selected by 50 percent of survey respondents)
4. Apple's iPod and MS Excel (tied at 49 percent each)
6. Blackberry (selected by 39 percent of survey respondents)
7. Adobe Photoshop (selected by 35 percent of survey respondents)
8. McAfee VirusScan (selected by 32 percent of survey respondents)
9. Netscape Navigator and Palm's PalmPilot (tied at 31 percent each)
While there will be differences of opinion about this list, and also the fact that components of MS Office have been broken up into separate components, it's quite evident yet again that Microsoft rules the computing world, and will continue to do so for a long time. Well done to the great team at Microsoft!
Now, I have my own comments regarding these selections. First, I have always believed Mac OS to be better than Windows. So, I'd put Mac OS in place of Windows 95.
I won't have MS Office there, or any components of MS Office, as I felt back in early 2000 that StarOffice and now, Open Office are equally good.
I'd replace IE with Opera, which is a lighter and much better browser, even back when it was first launched.
Yes, Apple's iPod has revolutionized digital music, but don't forget Real Player! The first time we all probably started watching videos and listen to music over the Web was by using the Real Player! For most, it was the first experience of streaming video and audio!
I agree Palm's done very well and changed the way people looked at mobile computing. However, it was the short-lived Apple's Newton, which first promised all of this. By the way, I must have the iMac on my list too.
My list would have another Adobe product, the Pagemaker, which revolutionized desktop publishing. Don't know whether people remember Quark Express! I am tempted to add Unix, or well, Linux, as it really brought open source into the great, wide open!
Lot of people are enamored by the Blackberry today. However, it was way back in 2000 when I was using my Siemens GSM phone in Hong Kong and elsewhere to send and receive emails, and also use it to search for hotels and other establishments over GPRS. In fact, at a conference in Singapore in 2002, during a survey done among the participants, I was among the three people using the GSM phone to send and receive emails! So, shouldn't mobile phones be the first on everyone's list?
Finally, I'll definitely add Tally to my list. Tally, as all Indians know, is the most widely used accounting software, starting way back in 1986. The mumbers achieved by this single accounting software is simply mind-boggling!
Therefore, friends, my list of the top 10 technology (or computing) products of the last 25 years would be:
1. Mobile phones (GSM phones, especially) -- all down the years
2. Tied between Apple's Mac OS and the iMac
3. Linux
4. McAfee's VirusScan
5. Real Player
6. Tied between Quark Express and Adobe Pagemaker
7. Netscape Navigator
8. Tally
9. Tied between StarOffice and Open Office
10. Tied between Opera browser and Apple's Newton
I am sure that most people will not agree with my selection/choices or even find my list appealing. That's fine! It's my own individual selection and I'm not canvassing for anyone in particular! These are purely my observations over the last two decades.
I am delighted at having had the privilege, like most of you, perhaps, to have had the honor of using all of these great technologies and products. Hats off to all the technologists of the world!
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