Mobile Devices Catching on with Wider Audience

The makeup of the owners of tablets and eReaders is undergoing a major change in the United States, according to the latest report from nielsonwire. Just a year ago it was dominated by young males but that is quickly changing as the technology is finding acceptance on a much broader scale.

Among other things that the survey found was that women went from 47% of eReader users in Q3 2010 to 61% in Q2 2011, however the growth in tablets was slower, moving from 39% to 41% in the same time frame.

Also an older crowd is moving it this market as well. Tablet users in the combined 45-55 year old and 55+ space grew from 23% in Q3 2010 to 37% market share in Q2 20111 while in the eReader space it grew from 40% to 51% in the same time frame.

Not surprisingly the two categories, eReaders and Tablets, are used for much different purposes, according to an earlier survey by Neilson. Tablets find a great deal of acceptance as device used to accompany watching television, while not surprisingly eReaders are most often found used as a bedside book.

It will be very interesting to see how this market continues to grow, both in customer base and usage, but also in product offerings. While Hewlett-Packard departed this space that made its tablet offering an instant sensation, selling out. While in part this was driven by the opportunity to get a bargain, I think that it also shows the pent up demand for lower cost devices, tablets in particular.

While lower cost ones are starting to hit the market, with Pandigital’s just introduced lineup just weeks ago being one of the first, I think offerings in this space could have issues with quality, and since that will be hard to uphold with a lower price point, it could be a while until one catches on with customers. Pandigital’s Nova did not fare well in the first review I read.

A Fluffy Friday Roundup

Big Changes at Apple with Jobs out

As by now every geek in the Western world knows, Steve Jobs, Apple’s co-founder, chairman and CEO has stepped down as CEO due to health reasons. Many are praising him as possibly one of the greatest CEOs of modern times and say that he has performed the greatest corporate turnaround in history. Hard to argue with this and in any case I am not well enough informed on overall corporate history in America to dispute or support the claim. But to play a game of what if- what if John Sculley had not relieved Jobs of his position as head of the Macintosh division in 1985? I believe that Jobs learned a great deal about focus and proper product development in his years at NeXT Computer and Pixar.
Jobs returned to Apple when it purchased NeXT and he began running the company after the ouster of then-CEO Gil Amelio in 1996. At the time Apple’s stock was stuck trading below $10. He quickly killed a number of products and honed the company’s focus. One of the complaints about Jobs prior to his ousting at Apple had been that he was unpredictable and chaotic managing the Macintosh division. Those traits were now gone. Now it remains to be seen if Tim Cook, his hand picked successor, can successfully follow in his footsteps.

An athlete who does not go to the highest bidder?

I think that Jered Weaver is my new favorite baseball player. No I have not started rooting for American league teams but his reasoning for signing his latest contract really struck a chord with me. Rather than wait until next season ended and let his agent, Scott Boras get the Yankees and Red Sox engage in a bidding war for his services, he instead signed an $85 million extension with the Angels. Now of course $85 million is a lot of money, but how many of us would leave additional millions on the table when it could be ours for the taking? He said “If 85’s not enough to take care of my family and generations to come then I’m pretty stupid.” A refreshingly honest comment IMHO.

Do you really need an HP Touchpad, even at $100?

The Samsung Galaxy

A funny thing happened on the way to leaving consumer electronics for Hewlett-Packard, its Touchpad became an overnight sensation. Stores are posting signs proclaiming they have no more, people are following HP execs on Twitter to find out when and if more will be available. There are lines at some stores and people are purchasing extras in the hopes of reselling them for expected profits. Still why buy a poorly reviewed product with a now obsolete OS, even if it is at the sale price of $99? A friend of mine who is self employed admitted to me that if he had spent the time working and gaining billable hours rather than fruitlessly waiting in line, he could have purchased a Samsung Galaxy or Apple iPad rather than a tablet that he had not even considered purchasing a week ago.

Can NBC Sports Challenge ESPN? NBC has Sports?

Is NBC Sports trying to go head to head with ESPN? That is the topic of an interesting piece at Sports Business Daily. The idea seems to be establishing a honed, professional approach to the sports it has, Major League Soccer and the NHL. I had not realized that the Versus channel was part of the NBC sports empire. The network has worked hard in the last few months to rid itself of the junk sports programming it had and has lured, if that is the word, MLS from Fox. Still it has quite an uphill battle and I wish it the best. I think that ESPN would really benefit from some stiff competition in sports broadcasting, and maybe force it to deliver a more focused, professional product rather than simply running its talking heads by us at every conceivable moment. I believe that the MLB and NFL networks are also putting pressure on the World Wide Leader.

HP First to Fail in Tablet Space

Hewlett-Packard has indicated that it is departing the PC business and it looks to jettison its TouchPad tablet device as well. The company said that it will focus on its strategic priorities of cloud, solutions and software with an emphasis on enterprise, commercial and government market. One of the early pioneers in the PC space this move is probably a sign, much like IBM’s departure from this space a few years back, that the overall market is both mature and changing.

Most mature markets see a reduction in the number of suppliers, and as Scott McNealy, once CEO of Sun Microsystems said years back, the PC industry is now just a distribution system for Intel and Microsoft. Apple’s CEO Steve Jobs recently said that the issue with a number of the tablet makers is that they are touting speeds and feeds, just like in the PC’s heyday, rather than focusing on tight integration of hardware and software and seamless user experience.

Yet it was just two months ago that HP released its TouchPad tablet, to poor reviews and reports of very poor sales, it should be noted. Built on the WebOS operating system it gained via its $1.2bn purchase of Palm last year, it looks like it is flushing all of that away. There are reports that the company has sold just a fraction of its already built tablets, compared with Apple’s estimated 9 million plus in the last quarter.

For tablet users it means one less offering, and for developers’ one less operating system that they might have to consider. It is likely that the market will break down to two major operating systems, Apple’s iOS and Google’s Android, probably leaving Blackberry and any others out in the cold. Currently market researchers are predicting that Apple will maintain the lion’s share of the market for the next few years and then the Android wave will overtake them. This is a market that, according to market research firm Informa, will experience a ten fold growth by 2015, with an estimated about 87 million Android tablets sold in 2015, compared with 90 million iPads, according to the estimate.

Remind anybody of the PC market? For HP, think they might spin off the business? I have a good name for it, Compaq.

The Friday Loose Ends

The Smithsonian looks at ways to cheat in baseball
Cheating in baseball is a time honored tradition except when it annoys the sports writers, who are after all the arbitrators of the sports unwritten rule book. The Smithsonian took a scientific look at a couple of the more popular topics in this space such as the impact that using a corked bats or confining baseballs to a humidor can have on the distance a baseball can travel. Fun read.

Samsung and Apple at odds, again
Samsung Electronics is suing Apple for violating its patents and using the technology in Apple’s iPhones and iPad. If this rings a bell it might be because Samsung already has other litigation brewing versus Apple. On the other hand Apple is suing Samsung for copying Apple’s iPhone look and feel in Samsung’s Galaxy smartphones.

Pac-12 official; Did ESPN ‘lose” the Big Ten over hardball tactics?
Today is the day that changes are occurring in College football. One of many is that The Pac-10 Conference is officially dead, Long live the Pac-12 Conference. With the Colorado Buffaloes and the Utah Utes joining the Pac it will now have two divisions and a playoff, as well as considerably more revenue from a new TV deal. In other news it was reported in the Chicago Tribune that ESPN played hardball with the Big Ten and that led to the creation of the Big Ten Network as feeling were bruised.

Smartphones continue market gains, Android and iPhones lead the pack

Smartphone sales continue to grow as the communications devices are increasingly popular with consumers, according to a May survey conducted by Nielsen. Currently 38% of all US mobile users have a smartphone and in the last three months the handsets accounted for a robust 55% of all mobile phones purchased in the last three months. Android-based systems lead the way with a 38% market share while Apple’s iOS-based devices account for 27%. Apple has seen a surge in recent months according to Nielsen, something that coincides with its move to a second major US carrier. RIM’s Blackberry is third with a 21% share with a number of others having less than 10% market share.

Microsoft adds Office 365 for mobile users
Love the Cloud and want to use it for your business applications? Then Microsoft wants you and has released its Office 365 this week which enables collaboration and access between e-mail, web conferencing, documents and calendars. There is a $6/month version for professionals and small businesses and a $10/month plan for mid and large size offices. Designed for sharing across a range of devices including smartphones it supports versions of Internet Explorer, Firefox, or Safari browser; mobile devices requires Wi-Fi. Some mobile functionality requires Microsoft Office Mobile 2010, which is included with specific releases of Windows Phones and Nokia phones. So for full functionality sorry iPhone and Android users, Windows phones will rule in this space for the near term.

Hewlett-Packard Seeks Results from Palm Purchase with TouchPad Tablet

Hewlett-Packard is on the verge of releasing the TouchPad tablet as it seeks to stake out a section of the increasingly competitive tablet market and show that its costly purchase of Palm will pay solid dividends.

HP will be following the Apple roadmap in supplying both the hardware and operating system for its tablet, something that the Android and Windows-based systems are not able to do, but the question will be if it can copy Apple’s success or is it too little too late?

Right now there are five operating systems that come to mind in this market, Apple’s iOS, Google’s Android, Microsoft’s Windows, HP’s webOS and Blackberry’s Tablet OS. That is probably too many for all to profit and just like the PC operating system system wars of a few decades ago several will most likely not make it long term. Most app developers have limited resources and will select the platforms that they believe will deliver the fastest an best return on investment, and this will hurt HP, at least in the near term.

The HP pad device has very similar specifications to Apple’s iPad, but they seem just a little off – a little heavier with a battery that is a little larger, and right now very little in the way of applications although the technology it is using is familiar to many since it came to the company as part of its $1.2 billion purchase of Palm last year.

The TouchPad will be available in a $499 16GB and a $599 32GB version. The device features a 9.7-inch XGA, multitouch screen with 1024×768 resolution display, a front-facing 1.3 megapixel webcam, and has Wi-Fi support. It is 7.48 inches wide and 9.45 inches tall is .54-inches thick and weights 1.6 lbs. It is powered by Qualcomm’s 1.2GHz dual core Snapdragon processor. The TouchPad is designed to be used in conjunction with other Touchstone devices such as the Pre and so a user can transfer websites between devices, among other features.

While the interoperability between the tablet and phone is nice, there does not seem to be that much that really differentiates the TouchPad from the host of Android devices or the iPad family. Both of its better established rivals have tens of thousands of apps ready while the TouchPad has a few hundred. Having control of both hardware and OS development can lead to greater overall system integration, it also means that there is no shared development cost, all is carried by HP, a model that has hurt many companies in the past. HP is going to face a huge uphill battle to establish itself as a major player in this market and its first offerings does not appear to break any new ground, something that should be worrisome for the company.

2011 Tour de France Features All Access, GPS

 

Cycling legend Bernard Hinault. (Photo courtesy letour.fr)

All cycling, all the time, for a price. NBC Sports plans expanded mobile sports coverage of the 2011 Tour de France, with $14.99 Android, iPhone and iPad applications that provide unlimited live video streaming and Global Positioning System (GPS) tracking of every rider in every race.

According to an AllThingsD report, NBC recognizes that sports coverage must expand every year to meet the sophisticated demands of the mobile sports consumer. NBCSports.com coordinating producer Tom Seeley told AllThingsD that it is “not acceptable” for sports programmers to offer the same services as the previous year. 

In 2010, NBC Sports’ cable channel Versus offered some GPS tracking of riders, but this year’s broadcasting will provide detailed tracking of every rider of every race. For those paying the freight for the Android, iPad and iPhone apps, there will be up to 14 hours of live video daily. For app-less sports consumers, NBC will provide maps, standings, rider profiles and video highlights.      

From now until July 11, NBC will charge $14.99 for the Android, iPad and iPhone apps. The price will drop $5 to $9.99 for week No. 2 coverage (July 12-16) and final week coverage (July 17-25) will cost $6.99.

Subscriptions for live video over the Internet will be $4.95 daily and $29.95 for the entire event.